1. Joe Crisafulli, Boston Hub Director NCSHA Conference 10/20/14 1

2. Affordable Housing Preservation Update Section 8 Renewal Guide Waiver Authority Delegation – Purpose: Encourage and streamline affordable housing preservation. – Authority for 5 Waivers delegated to Hub Directors in field 1.Prohibition on for-profit participants- Chapter 15 2.Section 15-8 – Requiring lowering comparable market rent to reflect use-restricted rent levels. 3.Section 15-6.C.1. Post-rehab rents effective only at completion of the rehab.

3. Affordable Housing Preservation Update Continued Section 8 Renewal Guide Waiver Authority Delegation 4. Section 15-5.B.2- Does not allow for early termination of pre- MAHRA contract. 5. Section 3-2.A.- Property score of 60 or above to be eligible for MUTM. 6. Section 3-7.F.1.d – Allows use of a Lender ordered MAP appraisal in lieu of a separate RCS for MUTM transaction using FHA financing. No waiver necessary per 8/28/14 guidance.

4. Section 8- More Preservation Tools Combining Section 8 HAP Contracts- Guidance issued via memo on 9/18/2014. Benefits: Lower administrative costs, consolidate oversight, shared reserves, better debt and equity terms and pricing. Transferring Budget Authority (aka “Portage”) of PB Section 8 HAP Contract- Section 8(b)(b)(1) of U.S. Housing Act of 1937- Notice H14-14 was issued on 10/9/14. Section 8 Pass Through- Used successfully in preservation scenarios where units planned for rehab are uninhabitable. Requires HQ approval.

5. CNA e Tool Origin- 2010 President’s Domestic Policy Council policy alignment initiative. HUD, USDA-RD & Treasury (LIHTCs via HFAs) use capital needs assessments (CNA)/physical due diligence in their programs. Interagency Rental Policy Working Group- incorporated feedback from multifamily stakeholders, including HFAs, recommended creation of a data standard and electronic template for CNAs.

6. CNA e Tool CNA e-Tool is born. It is a suite of inter-related tools: – Aligned electronic template incorporating a data standard for assessments. – Creates automated process for preparation, review, submission, approval and periodic updating of CNAs – Expected to evolve and improve to execute due diligence on asset acquisition/loan origination, RfR administration and periodic review of capital needs.

7. CNA e Tool Coming this Fall Initial version of CNA-e Tool is complete. HQ is working on guidance, training and rollout of the tool. Publication of the Notice is expected this fall. Will become the required standard for HUD and USDA for a number of programs.

8. CNA e Tool Roll-out Roll-out will: 1. Introduce the tool and its support, training and technical assistance tools, etc. 2. Identify programs that will be required to migrate to CNA-e-Tool. Most likely: a. All Multifamily FHA applications requiring CNAs b. All RAD and M2M applications c. All Asset Management-required CNAs

9. Rollout, Continued 3. Detail implementation schedule. Likely HUD will: a. Begin accepting CNAs via the CNA-e-Tool and encouraging lender’s use 30 days after Notice. b. Require use of CNA e Tool circa 180 days later. Stay tuned. Electronic template is available in 2 forms: Excel and Business to Government (B2G) interface (allows assessor firms/lenders to map existing templates to CNA e Tool). View these at HUD MF homepage: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing /mfh (See upper right under “What’s New”)

10. CNA e Tool – take aways Flexibility allows use in multiple programs at different agencies Each agency /program will need to develop some specific guidance conforming to their needs. The tool is free. Once it is rolled out it will be available on the HUD website.

11. Take Aways Continued HUD invites and encourages HFAs to adopt and use it as their standard CNA tool. We hope that CNA e Tool will become an industry standard used by multiple partners and encourage commercial add ons such as mobile apps. HUD looks forward to working with HFAs that are interested in utilizing CNA e-Tool THANK YOU- Questions/comments to CNAeTOOL@Hud.Gov CNAeTOOL@Hud.Gov

12. Geographic Expansion: – Initial Selection of 4 Pilot Hubs, Expanded to 9 – Initial limit to Pilot Hub Jurisdictions, Expanded to Include Projects from all States LIHTC Pilot Program Progress Check-in “ The Heavy F ” 12

13. -- Processing System for Projects not In Pilot Hubs Industry Expansion: Lender Selection 4 th Round Increased Pilot Lender firms from 37 to 52 13 “The Heavy F” Continued

14. Program Rules Refinement (FAQs, Document Updates) Projects In Pipeline (As of 9/8/14) o Concept Meeting Held 123 Projects/13,582 Units o Closed 27 Projects o Pilot Hubs with Projects 9 o Lenders with Projects 20 of 37 o Average Days to Close 101 (Excludes Applicant Delays) LIHTC Program Progress Check-in 14

15. Continued Integration of Pilot with RAD Recent Policy Development: More flexible rules on debt limits, IOI transfers, Completion Assurance and other matters posted on February 28 th. Future Expansion: Program adjustments expected on an ongoing basis, to be Included in 2014 MAP Guide Revision LIHTC Pilot- Future Program Development 15