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Here are the latest announcements by the Department of Housing and Urban Development:
HUD gives account of the success of its Faircloth-to-RAD initiative
Date Posted: May 3, 2022
A year ago, HUD created a new way for Public Housing Agencies to use the Faircloth Authority rule to produce new low income housing through a connection to the Rental Assistance Demonstration.
Faircloth-to-RAD allows HUD to provide funding to support new units after being built or renovated.
The Faircloth limit is a cap on the number of Public Housing units owned by a Public Housing Agency. Passed into law in 1998, the intent of the Faircloth limit was to limit funding for any new Public Housing units.
Since 1998, the number of Public Housing units has shrunk considerably. Right now, HUD estimates that Public Housing inventory can be expanded by 235,000 nationwide, and still be below the Faircloth limits established in 1998.
If PHAs can find the capital to acquire or build new housing or complete renovations and repairs up to the Faircloth limits, HUD can provide funding to support the new units they have built or renovated.
The RAD initiative allows PHAs to use the Section 8 program to leverage public and private debt and equity.
In one year, HUD states it has 34 projects in the Faircloth-to-RAD pipeline, which will create 1,847 rental homes. Five of these projects are currently under construction. Two projects — in Miami, FL and Baltimore, MD — have completed construction and have begun to rent units to new residents.
Read the full press release here.
HUD closes on $124M refinance loan for repairs in Bronx, NY
Post Dated: April 29, 2022
HUD, along with Wells Fargo, the Mortgage Insurance Fund of the State of New York Mortgage Agency, and NYC Housing Development Corporation, closed on the refinancing of a loan for the Bronx’s Co-op City Complex, which will maintain long-term housing quality and affordability for the over 45,000 residents.
The funds will be used to do upgrades to Co-op City’s HVAC and electrical systems and also be used for balcony and facade repair, replacement of residential water pumps and replacement of garage elevators.
Read about the New York Housing Development Corporation here.
HUD Charges St. Louis Developers with Disability Discrimination
Date posted: April 29, 2022
HUD has charged LJLD, LLC d/b/a/ Debrecht Properties or Debrecht Property (LJLD), and Westminister Properties, LLC with failure to provide accessibility for persons with disabilities.
HUD states that the Bridgewater Residences in St. Louis, MO had issues such as doors being too narrow to allow passage by a person using a wheelchair, routes having steep slopes and inaccessible curbs, bathrooms and kitchens lacking sufficient space for a wheelchair, inaccessible public and common use areas, and building entrances that can only be accessed via stairs.
The Fair Housing Act requires new construction of multifamily housing to contain basic accessibility features. Features for persons using wheelchairs is one of the seven basic features.
A United States Administrative Law Judge will hear HUD’s charge unless any party to the charge chooses to move the case to federal district court.
People who believe they are the victims of housing discrimination should contact HUD at (800) 6699777 (voice) 800-927-9275 (TTY) or the Department of Justice at (800) 896-7743 or 202-514-4713. Additional information is available at www.hud.gov/fairhousing and www.justice.gov.
HUD conducts roundtable to address appraisal bias
Date posted: April 27, 2022
HUD conducted a virtual Property Appraisal and Evaluation Equity (PAVE) roundtable discussion on the topic of “Innovative Strategies to Address Appraisal Bias.”
Representatives from the Brookings Institute and Ashoka attended the virtual discussion where HUD leaders, bank lending officers, and different members of philanthropic organizations spoke and attended.
Key issues concerning research gaps, consumer education and actions to increase diversity in the appraisal workforce were discussed.
HUD approves agreements resolving disability discrimination in HI
Date posted: April 27, 2022
HUD has approved two voluntary compliance/conciliation agreements with EAH Inc, and other Artspace Lofts entities to resolve complaints of discrimination in Honolulu, Hawaii. The complaints were regarding accessibility requirements for persons with disabilities.
The two complaints were filed by residents of OlaKa’llima Artspace Lofts, who were represented by the Legal Aid Society of Hawaii.
The complaints allege that the building did not have accessible building entrances and exits, accessible parking and garage entrances, accessible doors in common areas, accessible bathrooms and kitchens or accessible light switches. The housing providers allegedly told one of the complainants to pay for any requested retrofits herself.
The housing providers agreed to pay the two complainants $25,000 collectively and also fund a “Fair Housing Aloha Accessibility Fund” of $30,000 to pay for damages to other person who may have been injured by inaccessibility at the property.
After surveys and assessments are concluded, the housing providers will complete modifications to the apartments to make them fully accessible to persons with disabilities.
HUD states “the Agreements do not constitute admissions by the housing providers or evidence of a final determination by HUD of violations of the Fair Housing Act or any other laws.”
People who believe they are the victims of housing discrimination should contact HUD at (800) 669-9777 (voice), 800-927-9275 (TTY), or the Department of Justice at (800) 896-7743 or 202-514-4713. Additional information is available at www.hud.gov/fairhousing and www.justice.gov.
HUD and Census Bureau release new home sales report for March ‘22
Date Posted: April 26, 2022
In March, new home sales fell to a seasonally adjusted annual rate of 763,000. Last month, the new home sales rate was 835,000, and last year in March, 2021 the new home sales rate was 873,000. This indicates a possible slowdown of new home sales, although HUD states it takes four months to establish a trend for new houses sold.
The median price of a new home in March, 2022 was $436,700 and the average sales price was $523,000.
The median price is calculated by using the middle price, where half the homes sold for a higher price and half the homes sold for a lower price. The average price is calculated by adding up all of the prices of the homes sold and dividing them by the total number of homes sold.