HOME Rental Housing Development and Compliance Training

The Department of Housing and Urban Development (HUD) Office of Affordable Housing Programs (OAHP) is sponsoring HOME Rental Housing training to be delivered in two, 2 hours virtual sessions covering the HOME regulations for rental housing. The training will cover the HOME requirements and PJ responsibilities from the initial project eligibility review and funding decision thru construction and long-term compliance. This training builds on the Building HOME training basics and takes a more in-depth look at the program requirements including implementing changes for Rental under the new HOME rule. The training is Wednesday, December 7, 9-11 a.m., and Thursday, December 8, 9-11 a.m. Register Now!

Training is free to Coalition Member Organizations & Employees as well as Attendees of the 2022 Oklahoma Housing Conference. Join the Coalition Now!

HOME Coalition Seeks Robust Funding for FY23

As the House and Senate return for the final legislative work period of the 117th Congress, one of the biggest outstanding items on the agenda will be to finalize appropriations for the duration of fiscal year 2023 (FY23), including for a number of programs that fall under the jurisdiction of the Transportation, Housing, and Urban Development (THUD) appropriations subcommittee. The federal government is currently operating under a continuing resolution passed on September 30 that provides funding through December 16, 2022.

On behalf of the HOME Coalition, today NCSHA contacted appropriators in both chambers to urge them to provide robust funding for the HOME Investment Partnerships program for the remainder of FY23. The letter expresses support for $2.5 billion for HOME but acknowledges appropriators are unlikely to be able to achieve that level and urges no less than $1.9 billion for the program, which is the amount requested in the President’s Budget Request for FY23. Under the continuing resolution, HOME is currently funded at FY22 levels, or $1.5 billion.

To date, the House has passed FY23 THUD legislation that would fund HOME at $1.675 billion, while the Senate Appropriations Committee has released, but has not acted upon, draft THUD legislation that would fund HOME at $1.725 billion. You can see more about the appropriations status for HOME and a number of other HUD and USDA programs using NCSHA’s budget table.

Join a Coalition Committee in 2023

Become more involved with the Oklahoma Coalition for Affordable Housing in 2023! We are currently looking for members who would like to join one of the committees for the 2023 year. Cultivate and expand relationships with other industry professionals across the state and help build upon the Coalition’s success. Fill out the 2023 Coalition Committee Interest Form Now!

There Is Still Time To Register! The OCAH Annual Meeting Is Tomorrow at 5:00 p.m.

There is still time to register for the 2022 Coalition Annual Meeting. Join us as we celebrate the year in review on Tuesday, November 15, at The Capitol Event Center in Oklahoma City, the evening before the OHFA Board of Trustees Meeting. You’ll hear from Matt Ball, Senior Director of Government & Political Affairs, CMA Strategies, as he gives us a Legislative Outlook for 2023. Enjoy networking with other members and celebrating the Coalition’s successes in 2022. Registration opens at 4:30 p.m. and the meeting begins at 5:00 p.m. REGISTER NOW!
Member Admission:  $45 | Non-Member Admission:  $75

HUD Publishes 2023 List of Difficult Development Areas and Qualified Census Tracts 2023

On October 25, HUD published its annual listing of Difficult Development Areas (DDAs) and Qualified Census Tracts (QCTs) for 2023 in the Federal Register. These determinations are used for the implementation of the Housing Credit program, as outlined under Section 42 of the Internal Revenue Code.

DDAs are areas in the 50 states, the District of Columbia, and U.S. Territories identified by HUD as facing high construction, land, and utility costs relative to area median gross income (AMGI). The determinations also included considerations based on modified Fiscal Year (FY) 2022 Fair Market Rents, FY 2022 income limits, and 2020 Census data and American Community Survey (ACS) data. Similarly, QCTs are designated by HUD for areas where either 50 percent or more of the households have an income less than 60 percent of the AMGI for that year or have a poverty rate of at least 25 percent. The QCT designation is based on new income and poverty ACS data, which includes the most recent three sets of data to ensure that abnormal estimates caused by sampling variance do not affect the QCT status of tracts.

State Housing Finance agencies may use these determinations to provide a basis boost of up to 30 percent for Housing Credit projects located within these federally designated DDAs and QCTs, if the agency determines the increase is necessary to make the project financially feasible. These basis boosts can be a critical way to allow a property to generate more equity and keep rents lower for tenants. These incentives may help to increase the supply of housing in areas where a ratio of high inherent costs to low area incomes can otherwise challenge prospects for development.

New FHFA Actions Aimed at Boosting Equitable Access to Homeownership

On October 24, the Federal Housing Finance Agency (FHFA) announced that it is eliminating upfront loan guarantee fees charged by Freddie Mac and Fannie Mae (the Government-Sponsored Enterprises, or GSEs) for eligible borrowers and certain GSE-backed single-family loans. The goal of this change is to promote equitable access to affordable homeownership. The new FHFA policy would apply to first-time homebuyers earning up to 100 percent of their area median income (AMI) in most areas of the United States, as well as homebuyers earning below 120 percent of AMI in specific high-cost areas. FHFA is also eliminating upfront guarantee fees for GSE-backed affordable mortgage products, including the GSEs’ low down payment mortgages and GSE-backed loans that support the Duty to Serve program.

This policy change builds on the upfront fee increases for second home loans and certain high-balance loans announced by FHFA earlier this year. It will also be accompanied by targeted increases to the upfront fees for most cash-out refinance loans starting February 1, 2023. Additionally, on October 24, FHFA announced that the agency is transitioning the credit scoring framework for the GSEs to the FICO 10T and VantageScore 4.0 models for assessing borrowers’ qualification for GSE-backed loans. These two credit models include new payment history information when available, such as rent and utilities payments. Including these data points in mortgage underwriting will help households with no credit history or low credit scores qualify for GSE-backed home mortgages by building sufficient credit scores based on on-time rent and utility payments. This issue predominantly impacts households of color, who are more likely to be renters than white household, and often aren’t able to build sufficient credit scores to qualify for financing under traditional credit scoring models.

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Incentive Evaluation Commission’s Next Meeting

The Oklahoma Affordable Housing Act is currently under review by the Incentive Evaluation Commission. This is the second time for this highly needed resource to be reviewed since the legislation was passed in 2014.

The Incentive Evaluation Commission (IEC) recently heard public comments on proposed changes to various economic and business incentives under review this year. The IEC’s next meeting is scheduled for Thursday, Nov. 17, at 10 a.m., where they will consider final recommendations to report to the governor and elected officials by the end of the year.

Mark your calendar for Nov. 17 to tune in and learn how certain economic incentives could be impacted. Read more here on the incentives under review in 2022.

Thank you to all of our partners who submitted written comments to the IEC. Stay tuned for the final report.

Vote in tomorrow’s primary elections, Vote YES on OKCPS Bond Issue

With important midterm elections happening tomorrow, Tuesday, Nov. 8, now is the time to make sure you and your employees are informed before heading to the polls. The polls will be open from 7 a.m. to 7 p.m., and the Oklahoma State Election Board’s online voter tool can help you confirm your voter registration, locate your polling place and view sample ballots.

Please forward this email to anyone who might need a reminder to vote tomorrow and take the time to research what will appear on your ballot so you can make an informed vote!

Join a Coalition Committee in 2023

Become more involved with the Oklahoma Coalition for Affordable Housing in 2023! We are currently looking for members who would like to join one of the committees for the 2023 year. Cultivate and expand relationships with other industry professionals across the state and help build upon the Coalition’s success. Fill out the 2023 Coalition Committee Interest Form Now!