NCSHA Joins Letter in Support of HUD Multifamily Notice on Qualified Contract Loophole
NCSHA and several other leading affordable housing groups signed this September 17, 2024, letter to the U.S. Department of Housing and Urban Development (HUD) providing feedback on a recently posted Multifamily Housing Notice regarding the Qualified Contract (QC) loophole in the Low-Income Housing Tax Credit (Housing Credit) program.
The letter supports the guidance provided in the notice that requires owners to waive their QC rights as a condition of accessing Federal Housing Administration (FHA) Multifamily loan insurance programs and Risk Share transactions. However, the letter recommended that HUD prohibit owners who exercise the qualified contract provision after December 31, 2024, from accessing FHA Multifamily insurance or participating in Risk Sharing for those properties. This measure would serve as notice to owners that if they use the Qualified Contract process to remove properties from the Housing Credit program, they will lose access to FHA Multifamily and Risk Share financing in the future. The goal is to discourage the use of qualified contracts and protect tenants who may face higher rents due to properties being converted out of the Housing Credit program.
