HUD Looks to Re-Ignite Affordable Housing Market – NMP Skip to main content

HUD Looks to Re-Ignite Affordable Housing Market

Nov 04, 2011

U.S. Department of Housing & Urban Development (HUD) Secretary Shaun Donovan has announced that HUD is proposing new regulatory requirements under its HOME Investment Partnerships Program (HOME). HOME is the largest federal block grant to state and local governments designed exclusively to produce affordable housing for low-income families. Since 1992, the HOME Program has successfully assisted more than one million affordable homes for lower income families. However, Secretary Donovan believes the program can be strengthened to significantly boost the program’s performance at the local level. “The HOME program is a success story for housing low-income Americans and creating jobs,” said Secretary Donovan. “However, there’s more we can do to boost the program’s performance and accountability. Through these new steps, we want to expand HOME’s impact and ensure that every dollar is used smartly to help families afford their homes. Since we took office, we have been committed to strengthening the HOME Program and ensuring that it creates affordable housing in an efficient and accountable way.” In 2009, soon after taking office, the Obama Administration accelerated efforts to re-write some of the HOME’s compliance rules. HUD is now presenting Congress a proposed rule for a required review period and will shortly publish full details of the proposed regulatory improvements in the Federal Register. HUD has found that there are areas in the program’s underlying regulations that can improve program performance at the local level and ensure that high-quality affordable housing is being provided for low-income families in a way that delivers the best value to the taxpayer. Specifically, HUD’s proposed rule would: ►Require state and local governments to adopt policies and procedures to improve their oversight of projects, develop a system for assessing the relative risk of projects, and more closely monitor their HOME-funded sub-recipients; ►Require state and local governments to assess a developer’s capacity and the long-term viability of the project, before they commit HOME funds to a project; ►Require more frequent reporting by state and local ‘participating jurisdictions’ to enable HUD to more closely track projects once they’re under way; and ►Set a higher ‘performance bar’ by establishing specific timeframes for taking appropriate corrective actions against participating jurisdictions who fail to complete what they started. Beyond improving the HOME program’s underlying regulations, HUD is in the process of improving the Department’s Integrated Disbursement and Information System (IDIS). IDIS is the primary data collection and reporting mechanism for tracking the commitment of HOME funds as well as the actual expenditure of these resources on a project-by-project basis. HUD is making significant changes to IDIS to improve grant management, reduce risk and address troubled projects.
About the author
Published
Nov 04, 2011
Vought To Face Congress Over CFPB Overhaul, Enforcement Pullback

Vought’s testimony also comes as a new poll suggests the CFPB retains broad support across party lines

Illinois Changes Property Tax Foreclosure Process To Return Surplus Equity

Borrowers can save remaining home equity after delinquent property taxes and fees are paid

CFPB Weighs Changes To TRID Timing And Mortgage Rescission Rules

The bureau is seeking feedback on whether federal disclosure requirements raise costs, delay closings or limit access to mortgage credit

CFPB Issues AI Underwriting Guidance On Adverse Action Notices

The agency says proprietary and machine-learning models do not relieve lenders of their fair lending and disclosure responsibilities

VantageScore Says 4.0 Model Could Unlock $1 Trillion In Mortgage Originations

New study says VantageScore 4.0 scores five million more creditworthy borrowers than FICO Score 10T, expanding lending opportunities as the industry prepares for the GSE credit score transition

MISMO Updates Mortgage Insurance Standards To Support FICO 10T, VantageScore 4.0

New implementation guide standardizes mortgage insurance data exchange, helping lenders, insurers and technology providers prepare systems for newer credit scoring models