Washington Hotline - August 5, 2009

HUD Considers NAHB Recommendations to 223(f) Waiver Program

On July 31, HUD announced an extension of the Section 223(f) three-year waiver program, which was instituted in February of this year. The waiver program makes it easier for multifamily developers to use Federal Housing Administration (FHA) mortgage insurance for the refinancing of existing properties.

Under normal circumstances, the Section 223(f) program provides mortgage insurance to refinance properties that have been operating for at least three years. Due to the economic conditions and constrained liquidity in the multifamily markets, HUD decided to waive the three-year rule for a period of six months.

NAHB applauded the waiver program, but noted some requirements and restrictions that are not normally required of Section 223(f) loans. NAHB sent a letter to then-FHA Commissioner Brian Montgomery asking that HUD reconsider some of these restrictions and to allow the waiver program for at least 18 months. HUD responded to NAHB’s letter positively and indicated it would consider our recommendations.

HUD eliminated the prohibition from participating in the waiver program on projects that previously applied for mortgage insurance under other HUD programs but withdrew their applications.  Properties with a Certificate of Occupancy less than three years prior to the date of application for Firm Commitment are eligible for the waiver. 

View the Waiver Notice here.
View NAHB's letter to HUD here.
View HUD's Response here.

For more information, e-mail Claudia Kedda or call her at 800-368-5242 x8352.

Proposed Fair Market Rents Published; FHA Loan Limit Adjustment Act Introduced

• Proposed Fair Market Rents for FY2010 Published

On Aug. 4, HUD published a Notice and Request for Comments on Proposed Fair Market Rents (FMR) for the Housing Choice Voucher Program and the Moderate Rehabilitation Single Room Occupancy Program for Fiscal Year (FY) 2010. 

Comments are due Sept.2, 2009.  Final FMRs are effective on October 1, 2009.  NAHB staff is in the process of evaluating the methodology used to calculate the FY 2010 FMRs and will submit a comment letter to HUD. 

Please refer questions or comments to Paul Emrath at pemrath@nahb.com.

• FHA Multifamily Loan Limit Adjustment Act of 2009 Introduced

On July 31, H.R. 3527, The FHA Multifamily Loan Limit Adjustment Act of 2009, was introduced by Representatives Anthony Weiner (D-NY) and Gary Miller (R-CA). The bill would allow the HUD Secretary to increase the mortgage loan limits for elevator buildings by up to 50% of the amounts specified for non-elevator units. 

Currently, there is only about a 10% difference between non-elevator and elevator buildings, even though the costs of constructing an elevator building are, on average, about 45% higher. The bill would also give the HUD Secretary the authority to designate other “extremely high cost areas” in addition to Alaska, Hawaii, Guam and the Virgin Islands. 

HUD data show that, over the past seven years, there have been 478 Section 221(d)(4) new construction projects (without federal assistance) finally endorsed for HUD insurance. Of those 478 projects, only 31 involved elevator structures. Most recently, in fiscal years 2007 and 2008, only three elevator projects nationwide have been endorsed for insurance with FHA.

View the Bill here.
View the letter to Representatives Weiner and Miller here.

For more information, please contact Claudia Kedda at ckedda@nahb.com.

Compliance With Storm Water Rules Serious Business

Even as the U.S. Environmental Protection Agency considers more stringent regulations on storm water management for construction sites, it remains important for builders and developers to comply with the rules now in place, according to storm water regulation expert Jennifer Hildebrand of Weis Builders Inc. and Washington area builder Chuck Ellison of Miller and Smith.

The two appeared on a July 29 webinar by NAHB to discuss the storm water regulation challenges confronting the housing industry.

“The EPA is taking compliance very seriously,” said Hildebrand, reminding participants of one settlement with the agency that cost a group of high-production builders more than $3 million in enforcement penalties.

President Obama has proposed a 34% budget increase for environmental enforcement activities and the agency has more criminal investigators on staff than at any point in EPA’s history, she said.

In addition, there are a growing number of citizen-led and environmental groups that are keeping a closer tab on construction activities to tip off regulators about alleged violations, Hildebrand said.

Builders and developers must apply for a National Pollutant Discharge Elimination System (NPDES) permit for all sites that disturb more than one acre of land. Smaller sites also need to be permitted if they are part of a subdivision that ultimately disturbs more than one acre of land over the course of development.

View the full article in NBN here.
Access the webinar replay here.

For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132.

IBS REGISTRATION NOW OPEN!

Registration is now open for the 2010 International Builders Show!

Don’t miss your chance to lock in a low hotel rate for the 2010 International Builders’ Show, January 19-22, 2010 in Las Vegas. Special rates are for August only and availability is limited- act fast! Learn more about rates at www.buildersshow.com. 

For a limited time, NAHB members can receive a complimentary 4-day exhibit registration, giving them access to the hottest exhibit floor in the building industry for absolutely no charge!

• Multifamily Education right next door to our council suites
• Optimum networking and sponsorship opportunities
• Quick and Easy Access from the Exhibit floor, to the council suites, to Ed sessions in half the time.

Keep an eye out for more information on Multifamily programs, sessions, and events at the International Builders’ Show, in upcoming issues.

Webinars: Green Appraisals, Project Financing, and Multifamily Design Trends

  Learn About Green Appraisals

Wednesday Aug. 12


2:00 p.m. EST


Register Now


 
This webinar is aimed at helping real estate appraisers gain a better understanding of how to value of green homes will take place on Wednesday, Aug. 12, at 2:00 p.m. EST.

Among the presenters will be NAHB Green Building Subcommittee member Dave Porter, who is also a member of a working group examining the issue of green appraisals in partnership with the Appraisal Institute, which is sponsoring the webinar.

Among topics that will be covered:

• Examples of how appraisers are now recognizing green features in their appraisal reports.
• Ways to support value adjustments when local “comps” are unavailable — a major stumbling block for green building pioneers. The panelists will discuss the use of other indicators, rating systems, software and green studies.
• The secondary mortgage market and its views on green residential construction, including new direction from Freddie Mac.
• The appraisal selection process for lenders.
• The National Green Building Standard, LEED-H rating system and other green scoring tools.

The webinar costs $75 for Institute members and $30 for others. For additional information and a registration form on the Appraisal Institute's Web site, click here.

 Repositioning Development Agreements and Project Financing
Monday, Aug. 17
2:00 p.m. EST
Register Now

"Repositioning Development Agreements and Project Financing to Address New Market Realities" will be held on Monday, August, 17 at 2:00 pm EST

With banks hesitant to finance developments, equity investors seeking higher and quicker returns, municipalities hurting financially, and developers still laboring under project agreements that were quickly assembled at the height of the market, this webinar will explore opportunities in land development that are beginning to emerge in today's uncertain environment. 

Panelists:

Carter Froelich, is the managing principal of Development Planning and Financing Group, Inc. (DPFG)'s Phoenix, Arizona office.

Eric Brown, is a principal with DPFG as well.  He is also the founder of Artisan Homes.  He has been called a "Guru" on Real Estate Trends by the Los Angeles Times

For more informaiton e-mail Jennifer Jones or call her at 800-368-5242 x8469.

 Multifamily Design Trends: Innovative Strategies to Success

Multifamily Design Trends: Innovative Strategies to Success
Thursday, August 20, 2009
2:00 - 3:00 pm EST
Register Now! 

Explore the latest multifamily design trends and learn innovative strategies that have proven to be successful in the marketplace for condominiums and apartments. Nationally recognized architects and designers will illustrate how to design more efficiently and cost-effectively to create more qualitative and value-added spaces for affordable, market-rate and for-sale communities. The panel will highlight trends through recent winners in NAHB Multifamily’s Pillars of the Industry Awards.

Moderator: Rick Mercer, Director, Wood Partner

Panelists:

Niles Bolton, AIA, Chief Executive Officer, Niles Bolton Associates
Mark Humphreys, AIA, Chief Executive Officer, Humphreys & Partners, L.P
David Seden, Principal, KTGY

For more information about this webinar contact Sheronda Carr at scarr@nahb.org or 1-800-368-5242 x 8168.

Resource: Members Can Save Big on FedEx Shipping Services

NAHB members can save up to 29% on select FedEx shipping services and can also save big on FedEx Freight and FedEx National LTL services.

Other savings through FedEx shipping include:

• FedEx Express^® —  up to 29% on select services
• FedEx Express^® international services —  up to 25% on select services  
• FedEx Ground^® — up to 20% on select services
• FedEx Home Delivery® — up to 10% on select services

Discounts will automatically be applied for members who enroll in the FedEx Advantage® Program.

To enroll, or for more information, visit www.1800members.com/NAHB or call 1-800-MEMBERS (800-636-2377) between 8:00 a.m. and 6:00 p.m. EDT Mondays through Fridays to speak to a dedicated member service representative.

Other Member Advantage Discounts

For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to www.nahb.org/MA.

Calendar: August Webinars; Fall Board Meeting; IBS Registration Now Open

August

Valuing High Perfomance Residential Properties Wednesday Aug. 12 2:00 p.m. EST Register Now    Among topics that will be covered: Examples of how appraisers are now recognizing green features in their appraisal reports. Ways to support value adjustments when local “comps” are unavailable — a major stumbling block for green building pioneers. The panelists will discuss the use of other indicators, rating systems, software and green studies. and More... The webinar costs $75 for Institute members and $30 for others. For additional information and a registration form on the Appraisal Institute's Web site, click here.

Repositioning Development Agreements and Project Financing Monday, Aug. 17 2:00 p.m. EST Register Now "Repositioning Development Agreements and Project Financing to Address New Market Realities" will be held on Monday, Aug. 17 at 2:00 pm EST.  This webinar will explore opportunities in land development that are beginning to emerge in today’s uncertain environment. For more informaiton e-mail Jennifer Jones or call her at 800-368-5242 x8469.

Multifamily Design Trends: Innovative Strategies to Success Multifamily Design Trends: Innovative Strategies to Success Thursday, August 20, 2009 2:00 - 3:00 pm EST Register Now!  Explore the latest multifamily design trends and learn innovative strategies that have proven to be successful in the marketplace for condominiums and apartments. For more information about this webinar contact Sheronda Carr at scarr@nahb.org or 1-800-368-5242 x 8168.

October 

SAVE THE DATE!! 2009 Fall Board of Directors Meeting September 30 - October 4 Sheraton Chicago Hotel & Tower 301 East North Water Street Chicago IL, 60611 REGISTER TODAY!

January

Registration is now open for the 2010 International Builders Show Jan.19-22 We’ve put together the best member pricing ever offered for the 2010 International Builders’ Show, January 19-22, 2010 in Las Vegas! See which member-only registration offer is the best fit for you. Get all the latest information at www.buildersshow.com.   Don’t miss your chance to lock in a low hotel rate for the 2010 International Builders’ Show, January 19-22, 2010 in Las Vegas. Special rates are for August only and availability is limited- act fast! Learn more about rates at www.buildersshow.com.