On November 2, the Federal Housing Administration (FHA) announcedpdf a new Express Lane to speed up its review and closing process for new apartment construction financed with Low-Income Housing Tax Credits (LIHTC). The streamlined process applies to new construction loans insured under FHA’s Section 221(d)(4) multifamily program and includes a 30-day target for FHA loan commitment decisions.
FHA said the change is meant to cut unnecessary regulatory burden and get affordable rental housing built faster, adding to the nation’s housing supply.
The LIHTC Express Lane expands on an earlier FHA pilot by removing limits on project size and opening it to projects financed with tax-exempt bonds. FHA’s standard underwriting requirements still apply. To qualify, a project must be led by an experienced LIHTC developer with a strong track record and solid finances. Projects receiving Section 8 project-based rental assistance are excluded.
The new process takes effect immediately.
