The partial government shutdown, now well into its third week, is having an impact on HUD multifamily programs, as the agency’s spending authority expired on Dec. 21, 2018, due to the lack of appropriated funding.
On Jan. 4, HUD released information regarding FHA multifamily programs. During the first 30 business days of the shutdown, the following will apply:
- No applications for multifamily FHA mortgage insurance will be accepted or processed.
- Closings will be conducted for FHA Multifamily Initial Endorsements on projects with firm commitments issued on or prior to Dec. 21, 2018, that have a scheduled closing during the shutdown period, and closings on final endorsements that have critical external deadlines. Contact the Regional Production Division Director by e-mail to confirm scheduled closing dates.
- Multifamily Accelerated Processing (MAP) lenders servicing construction loans and administering non-critical repair escrows may, at their and the owners’ and general contractors’ risk, process interim construction draws. Contract construction inspections which have been funded will be conducted. HUD will perform or review construction inspections on a post-review basis at such time the government re-opens.
- No change orders will be processed or approved.
Read more at NAHB’s NAHBNow blog.