NCSHA Comments to HUD on Proposal to Mitigate Qualified Contract Loss for Properties Seeking FHA Multifamily Rental and Risk Share Insurance

On September 11, 2024, NCSHA sent a letter to Federal Housing Commissioner Julia Gordon expressing support for the proposal that requires developers applying for new allocations of Low Income Housing Tax Credit authority to waive the qualified contract option for their properties as a condition for participating in the Federal Housing Administration (FHA) Multifamily Rental and Risk Share insurance programs. 

The letter further encouraged HUD to broaden the proposal by restricting owners of existing developments who retain the qualified contract option from accessing FHA Multifamily Rental and Risk Share insurance if they exercise the qualified contract option after December 31, 2024.