§1715s. Treatment of mortgages covering tax credit projects
(a) Definition
For purposes of this section, the term "insured mortgage covering a tax credit project" means a mortgage insured under any provision of this subchapter that is executed in connection with the construction, rehabilitation, purchase, or refinancing of a multifamily housing project for which equity 1 provided through any low-income housing tax credit pursuant to section 42 of title 26.
(b) Acceptance of letters of credit
In the case of an insured mortgage covering a tax credit project, the Secretary may not require the escrowing of equity provided by the sale of any low-income housing tax credits for the project pursuant to section 42 of title 26, or any other form of security, such as a letter of credit.
(c) Asset management requirements
In the case of an insured mortgage covering a tax credit project for which project the applicable tax credit allocating agency is causing to be performed periodic inspections in compliance with the requirements of section 42 of title 26, such project shall be exempt from requirements imposed by the Secretary regarding periodic inspections of the property by the mortgagee. To the extent that other compliance monitoring is being performed with respect to such a project by such an allocating agency pursuant to such section 42, the Secretary shall, to the extent that the Secretary determines such monitoring is sufficient to ensure compliance with any requirements established by the Secretary, accept such agency's evidence of compliance for purposes of determining compliance with the Secretary's requirements.
(d) Streamlined processing pilot program
(1) In general
The Secretary shall establish a pilot program to demonstrate the effectiveness of streamlining the review process, which shall include all applications for mortgage insurance under any provision of this subchapter for mortgages executed in connection with the construction, rehabilitation, purchase, or refinancing of a multifamily housing project for which equity 1 provided through any low-income housing tax credit pursuant to section 42 of title 26. The Secretary shall issue instructions for implementing the pilot program under this subsection not later than the expiration of the 180-day period beginning upon July 30, 2008.
(2) Requirements
Such pilot program shall provide for-
(A) the Secretary to appoint designated underwriters, who shall be responsible for reviewing such mortgage insurance applications and making determinations regarding the eligibility of such applications for such mortgage insurance in lieu of the processing functions regarding such applications that are otherwise performed by other employees of the Department of Housing and Urban Development;
(B) submission of applications for such mortgage insurance by mortgagees who have previously been expressly approved by the Secretary; and
(C) determinations regarding the eligibility of such applications for such mortgage insurance to be made by the chief underwriter pursuant to requirements prescribed by the Secretary, which shall include requiring submission of reports regarding applications of proposed mortgagees by third-party entities expressly approved by the chief underwriter.
(June 27, 1934, ch. 847, title II, §228, as added
Editorial Notes
Prior Provisions
A prior section 1715s, which was based in part on act Aug. 2, 1954, ch. 649, title VIII, §814,
Statutory Notes and Related Subsidiaries
Approvals by Department of Housing and Urban Development
"(a)
"(1)
"(2)
"(A) projects for which assistance is provided by such Department in conjunction with any low-income housing tax credits under section 42 of the Internal Revenue Code of 1986 [26 U.S.C. 42] or tax-exempt housing bonds; and
"(B) existing public housing projects and assisted housing projects, for which approval of the Secretary is necessary for transactions, in conjunction with any such low-income housing tax credits or tax-exempt housing bonds, involving the preservation or rehabilitation of the project.
"(3)
"(A) improving the efficiency of approval procedures;
"(B) simplifying approval requirements,
"(C) establishing time deadlines or target deadlines for required approvals;
"(D) modifying division of approval authority between field and national offices;
"(E) improving outreach to project sponsors regarding information that is required to be submitted for such approvals;
"(F) requesting additional funding for increasing staff, if necessary; and
"(G) any other actions which would expedite approvals.
Any such changes shall be made in a manner that provides for full compliance with any existing requirements under law or regulation that are designed to protect families receiving public and assisted housing assistance, including income targeting, rent, and fair housing provisions, and shall also comply with requirements regarding environmental review and protection and wages paid to laborers.
"(b)
"(c)
"(d)
"(1) identifies the actions taken by the Secretary to comply with this section;
"(2) includes information regarding any resulting improvements in the expedited approval for multifamily housing projects;
"(3) identifies recommendations made pursuant to subsection (c);
"(4) identifies actions taken by the Secretary to implement the provisions in the amendments made by sections 2834 and 2835 of this Act [enacting this section and sections 1437z–8 and 11403f–1 of Title 42, The Public Health and Welfare, and amending sections 1701q and 1715r of this title and sections 1437f, 3545, 11403g, 11403h, 11404, 11405, 11405b, 11406, 11407, and 11407b of Title 42]; and
"(5) makes recommendations for any legislative changes that are needed to facilitate prompt approval of assistance for such projects."