NAHMA LIHTC Update: Recommended Practices in Housing Credit Administration and Final GSE Duty To Serve Plans

NAHMA LIHTC Update: Recommended Practices in Housing Credit Administration and Final GSE Duty To Serve Plans

Below, please find information regarding new recommended LIHTC administration practices, as well as the GSE Duty To Serve (DTS) plans.

NCSHA Task Force releases Recommended Practices in Housing Credit Administration

Recently, the National Council of State Housing Agencies (NCSHA) released a report by its Task Force on Recommended Practices in Housing Credit Administration. The Task Force undertook a comprehensive revision of NCSHA’s existing recommended practices to respond to current program challenges and opportunities. The final report strengthens the number of existing recommended practices and includes 13 new practices in state program administration.

NCSHA expects state Housing Credit allocating agencies to begin incorporating the recommended practices into their Housing Credit administration in 2018. The report is available online here.

Final GSE Duty To Serve (DTS) Plans outline increased investments and collaboration

In December, Fannie Mae and Freddie Mac released their final Duty to Serve Underserved Markets Plans for years 2018-2020. The plans outline activities the government-sponsored enterprises (GSEs) intend to pursue in order fulfill their FHFA obligations, such as increasing investments in underserved areas and partnering with Housing Finance Agencies (HFAs).

Under the Housing and Economic Recovery Act of 2008, the GSEs are required to support lending for low- and moderate-income households in the following underserved market segments: manufactured housing, affordable housing preservation, and rural areas. The intended activities outlined for each segment for the years 2018-2020 can be viewed on the FHFA DTS website here.

The DTS Plans were originally released in mid-2017 for public comments; NAHMA submitted comments at the time, and we continue to keep members up to date on the activities in the plans, which can be implemented beginning January 1, 2018.