January 9, 2019 Comments Off on The Government Shutdown and Multifamily Views: 1077 Connect Apartments, Connect Classroom

The Government Shutdown and Multifamily

As the government shutdown continues on, the media is filled with its impact on government employees, such as those at airports, national parks and government buildings. What hasn’t been reported on in the general media, however, is its impact on housing.

The National Multifamily Housing Council recently released a list about how the shutdown is impacting housing issues, noting that, “the shutdown has unfortunately affected agencies important to the multifamily shutdown” and “depending on the length of the shutdown, additional programs may be at risk.”

What follows are some of the agencies/activities impacted by the shutdown:

Tenant-Based Rental Assistance. Housing assistance payments will continue to be paid, though HUD won’t process requests for tenant protection vouchers for public housing or multifamily actions during the shutdown. While Public Housing Authorities aren’t federal programs, they do receive federal funding, which could be impacted.

HUD Loans. HUD will continue closing multifamily loans, but only on projects with firm commitments with a scheduled closing date, or projects with critical external deadlines during the shutdown. While lenders can still assign loans, processing will be delayed.

Federal Housing Authority Activities. FHA operations, including loan processing, could slow down, due to staff reduction. Furthermore, most FHA multifamily activities will cease during the shutdown. No new applications for multifamily FHA mortgage insurance will be accepted or processed.

Environmental Protection Agency Analysis. More than 13,000 employees are furloughed, which could result in permit review delays, slower time frames for pending rules, and legal settlement delays.

Read More at NMHC

For comments, questions or concerns, please contact Amy Sorter

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