Episode 84: HUD PIH Releases FY 2026 HCV Funding Allocations

Episode 94: CHFA Awards $11.5M in 9% Credits Across Connecticut

The Connecticut Housing Finance Authority (CHFA) has approved $11.5 million in 9% Low-Income Housing Tax Credit allocations supporting six developments across five Connecticut municipalities — Cromwell, Farmington, Hartford, Naugatuck, and New Britain. The awards will produce 319 total rental units, including 282 affordable apartments, spanning both new construction and preservation deals. For LIHTC investors, syndicators, and lenders active in the Northeast, this round offers concrete signals about CHFA's current QAP priorities and the state of the Connecticut affordable housing pipeline. Key Takeaways: * CHFA allocated $11.5 million in 9% LIHTCs across six developments in a single board-approved round. * The 319-unit portfolio includes 282 affordable apartments — approximately 88% affordability across the slate. * Five municipalities received awards: Cromwell, Farmington, Hartford, Naugatuck, and New Britain — signaling a geographic distribution preference in the current QAP cycle. * The round covers both new development and preservation, creating distinct underwriting profiles for lenders and syndicators on construction financing and exit assumptions. * Annual credit per affordable unit runs roughly $36,000 — a benchmark for syndicators pricing Connecticut 9% deals against current construction cost environments. * Suburban and small-city markets (Naugatuck, Cromwell) clearing the same credit threshold as Hartford suggests CHFA is actively rewarding non-urban supply solutions. * Developers with projects in the Connecticut pipeline should analyze this round for active QAP preference signals before the next application cycle. Connecticut's affordable housing shortfall remains measured in the tens of thousands of units, so 282 affordable apartments won't close the gap on its own. But this allocation confirms that CHFA's 9% pipeline is active and competitive heading into the second half of 2026. Investors and lenders tracking Northeast market health should watch for corresponding state bond or Housing Trust Fund activity to fill financing gaps — particularly on new construction deals in the smaller markets represented in this round. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.

Episode 93: Maryland's Twin Housing Acts Reshape Affordable Production

Maryland's General Assembly passed two significant pieces of housing legislation in 2026 — the Maryland Transit and Housing Opportunity Act and the Maryland Housing Certainty Act — alongside a Fiscal Year 2027 budget designed to support the Maryland Department of Housing and Community Development's affordable housing programs. For LIHTC developers, syndicators, and lenders active in Maryland, the combined effect of transit-focused production incentives, approval certainty provisions, and a state agency budget commitment could reshape deal flow and QAP priorities in the near term. Key Takeaways: * Two bills passed in 2026: the Maryland Transit and Housing Opportunity Act and the Maryland Housing Certainty Act — each targeting a distinct barrier to affordable housing production. * The Transit and Housing Opportunity Act focuses on production near transit corridors, a signal that transit-oriented sites may receive favorable treatment in future QAP scoring cycles. * The Housing Certainty Act is designed to reduce entitlement and approval unpredictability — a direct risk-reduction mechanism for 9% LIHTC deals with tight credit reservation timelines. * Maryland DHCD's FY2027 budget is explicitly framed as supporting robust affordable housing investment and safeguarding existing program capacity alongside the new legislative framework. * Specific appropriation figures tied to the new acts have not yet been publicly detailed — watch for Maryland DHCD guidance releases for dollar amounts and program-level allocations. * Developers should map existing pipeline against Maryland transit corridors now, ahead of any QAP revisions that may incorporate the new legislative priorities. * State HFA watchers should monitor Maryland's next QAP cycle closely — new production legislation paired with a budget commitment frequently precedes changes to set-asides and scoring criteria. Maryland's legislative move is part of a broader state-level trend of pairing transit-oriented development policy with affordability mandates. For deal teams active in the state, the window between legislative passage and QAP operationalization is the highest-leverage period for site selection and partnership positioning. Early alignment with stated policy priorities has historically translated into competitive advantages in 9% allocation rounds and stronger bond-financing narratives in 4% transactions. Stay close to Maryland DHCD communications over the coming months. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.

Episode 92: OMB's Proposed Rule Threatens $1 Trillion in Federal Grants

The Office of Management and Budget, joined by more than 40 federal agencies including HUD, has proposed a sweeping revision to government-wide rules governing federal financial assistance. With up to $1 trillion in funding in scope and a final rule targeted for October 1, 2026, the proposal carries direct implications for affordable housing developers, operators, and lenders reliant on HUD grants and related programs. Key Takeaways: * The proposed rule affects up to $1 trillion in federal financial assistance across grants, cooperative agreements, and other assistance mechanisms. * Comments are due July 13, 2026; OMB is targeting a final rule effective October 1, 2026. * E-Verify screening and English-only materials requirements would add new compliance layers to HUD and other federal grant programs. * Fraud allegations would be referred directly to inspectors general and prosecutors, bypassing standard internal agency review processes. * Proposed limits on disparate-impact enforcement could alter fair housing compliance strategies for affordable housing operators. * Greater authority for political appointees over grant approvals and monitoring reduces agency-level flexibility and insulation from political intervention. * OMB would gain expanded discretion to withhold funding — introducing timing and certainty risk for transactions dependent on reliable federal funding flows. This rule is not abstract policy. If finalized as proposed, it restructures the compliance environment and funding certainty for any affordable housing deal touching federal grants. Stakeholders with operational exposure to HUD programs should submit detailed, program-specific comments before the July 13 deadline. The October 1 effective date leaves little runway for implementation planning once a final rule is issued. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.

Episode 91: FY 2027 T-HUD Bill Clears Subcommittee

The House T-HUD Appropriations Subcommittee passed its FY 2027 HUD funding bill last week on a 9-7 party-line vote, and the full House Appropriations Committee is marking it up today. With a total HUD budget of $71.4 billion — $5.9 billion below FY 2026 enacted levels — the bill sets the opening position for a funding fight that will directly affect LIHTC deal stacks, voucher availability, and HOME gap financing across the country. Key Takeaways: * Total HUD funding proposed at $71.4 billion, a $5.9 billion reduction from FY 2026 enacted levels. * HOME funded at $500 million, down from $1.25 billion — a significant cut, but an improvement over FY 2026's starting position, when both the President's budget and the House bill proposed zeroing it out entirely. * Tenant-based Section 8 at $38.083 billion, slightly below the $38.4 billion enacted in FY 2026 — a narrow but real gap for housing authorities already under pressure. * Project-based Section 8 receives a $432 million increase over FY 2026 enacted levels, coming in at $18.975 billion — a positive signal for preservation and new construction pipelines. * Choice Neighborhoods zeroed out again; Congress restored it at $25 million in FY 2026, but that outcome is not guaranteed to repeat. * HOME, CDBG, public housing, and several other programs exempted from Build America, Buy America compliance for FY 2027 and prior years — a significant relief provision for deals where BABA has been slowing draws and closings. * Continuum of Care funded at $3.778 billion, down $231 million from enacted levels, but the House rejected the administration's proposal to eliminate CoC and fold homeless assistance into ESG. Today's full committee markup is the next inflection point. The House bill is the floor of negotiations, not the ceiling — the Senate is expected to take a less aggressive posture on cuts, particularly for HOME and tenant-based vouchers. Developers and syndicators with HOME-dependent deal structures should model a wide range of outcomes. The BABA exemption provision, if it survives to enactment, would remove a material compliance barrier on HOME-funded closings. Watch for Senate appropriators' response and any floor amendments that could shift the HOME or voucher numbers before a final conference agreement takes shape. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.

Episode 90: HUD Overhauls CoC Funding With $4.04B Recovery-First NOFO

HUD has released its Fiscal Year 2026 Continuum of Care Notice of Funding Opportunity — $4.04 billion in federal homelessness assistance structured around a fundamental policy shift away from housing-first and toward recovery, self-sufficiency, and competitive performance accountability. For developers, syndicators, and lenders with exposure to supportive housing, the implications for operating subsidy assumptions are immediate. Key Takeaways: * HUD's FY2026 CoC NOFO releases $4.04 billion — described by HUD as a record funding level for the program. * $1.3 billion is specifically reserved for new projects, with explicit priority given to Transitional Housing and Supportive Services over permanent supportive housing. * Automatic renewal of CoC grants is eliminated; CoC recipients must now competitively scrutinize and prioritize projects based on performance outcomes. * HUD is conditioning funding on prohibiting facilitation of illicit drug use, directly targeting harm-reduction models that have operated within CoC-funded programs. * HUD is actively encouraging new applicants, signaling that incumbent grantees no longer hold a structural funding advantage. * Deals carrying CoC-dependent operating revenue — particularly those built on housing-first frameworks — face genuine renewal risk under the new NOFO structure. * State QAP scoring of supportive housing and lender underwriting of CoC grant revenue may need to be reassessed as the federal program's priorities realign. This NOFO represents the most significant structural overhaul of the CoC program in its history. For the affordable housing finance community, the shift isn't just ideological — it changes the risk profile of supportive housing deals that depend on CoC operating subsidies. Developers, syndicators, and lenders should review existing and pipeline deals for CoC revenue exposure, and state HFAs should expect pressure to realign supportive housing priorities in upcoming QAP cycles. The $1.3 billion in new project funding is a real opportunity, but only for organizations positioned to compete under the new performance and programmatic framework. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.