Episode 107: FHFA Proposes Major Overhaul of Duty to Serve Rules

Episode 108: HUD Waitlists RAD for PRAC Submissions Using PRI

HUD has announced that all Preservation Rent Increase (PRI) funding available under the RAD for PRAC program has been exhausted for calendar year 2026. Any new RAD for Section 202/Project Rental Assistance Contract conversion plan submissions that include PRI funding and were submitted after May 29, 2026, will be waitlisted on a first-come, first-served basis. For sponsors, syndicators, lenders, and investors active in elderly affordable housing preservation, this announcement has immediate deal-structuring consequences. Key Takeaways: * All PRI funding available under RAD for PRAC has been fully exhausted for calendar year 2026. * New RAD for PRAC conversion plan submissions with PRI submitted after May 29, 2026, will be waitlisted and evaluated first-come, first-served. * HUD's immediate priority is to assess funding availability and obligations tied to submissions already in the pipeline as of June 25, 2026. * Deals submitted before May 29 are likely queue-protected; post-cutoff submissions face an indeterminate hold. * PRI is often the critical bridge between existing PRAC contract rents and the rents required to support debt service in a conversion — making its absence a potential deal-stopper for many transactions. * No timeline has been published for when HUD will resolve the backlog or when new PRI capacity may become available. * Sponsors with post-cutoff submissions should confirm their waitlist position and engage their HUD field office directly to understand deal status relative to the June 25 assessment date. The exhaustion of PRI capacity this far into the calendar year signals that demand for RAD for PRAC conversions is outpacing available resources — a reflection of both the scale of need in the aging Section 202 housing stock and a rapidly building pipeline. Stakeholders should monitor HUD's funding assessment closely and evaluate whether alternative deal structures are viable while awaiting PRI availability. Proactive communication with HUD field offices and early queue positioning will be essential for deals dependent on this funding source. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.

Episode 107: FHFA Proposes Major Overhaul of Duty to Serve Rules

The Federal Housing Finance Agency has proposed a sweeping overhaul of the Duty to Serve regulations governing Fannie Mae and Freddie Mac. The proposed rule replaces the existing prescriptive Activities framework with a flexible, principles-based approach — and expands LIHTC credit eligibility across all three Duty to Serve underserved markets. For LIHTC investors, affordable housing developers, and structured finance practitioners, the comment deadline of July 24 and a target effective date of January 1, 2028, make this a near-term priority. Key Takeaways: * FHFA proposes to eliminate the current Activities framework entirely, including Statutory and Regulatory Activity lists, Additional Activities, extra credit provisions, and minimum activity requirements from three-year plans. * Enterprises would instead be permitted to pursue any action consistent with Duty to Serve, unless FHFA has specifically deemed it ineligible by regulation or case-by-case review. * LIHTC investments would earn Duty to Serve credit across all three underserved markets — rural housing, manufactured housing, and affordable housing preservation — up from rural only under the current framework. * The restriction on subordinate multifamily liens (previously limited to energy and water improvement financing) would be removed, opening the door to broader layered financing structures for multifamily affordable deals. * The income calculation methodology would be revised to more accurately reflect families in areas of concentrated low-income populations, and affordability determinations for manufactured housing communities would be updated. * Comments on the proposed rule are due July 24, 2026; regulatory changes are targeted to take effect January 1, 2028. * A correction affecting refinancing mortgages that are not arms-length or borrower-driven transactions was posted June 26, 2026. The shift from a prescriptive activity checklist to a principles-based framework with a published ineligible-actions list will fundamentally reshape how Fannie Mae and Freddie Mac structure their Duty to Serve plans — and, by extension, how they engage with LIHTC deals, manufactured housing finance, and preservation transactions. The July 24 comment deadline gives the industry a narrow window to influence what ends up on the ineligible list. Practitioners with active pipeline in any of the three underserved markets should engage now. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.

Episode 106: HUD RFI Targets Product-Specific BABA Waivers

HUD has issued a Request for Information (RFI) targeting a shift from project-specific waivers to general applicability (product-category) waivers under the Build America, Buy America Act (BABA). For LIHTC developers and their construction teams, this is the most actionable near-term opportunity for relief from one of the most disruptive compliance requirements introduced into federally assisted housing. Comments are due July 20, 2026. Key Takeaways: * HUD's RFI targets product-category BABA waivers — meaning relief, once granted, would apply broadly across all projects using those products, not just on a deal-by-deal basis. * The 30-day comment period closes July 20, 2026 — a tight window requiring immediate action from developers and their procurement teams. * Covered product categories include HVAC systems (VRF, heat pumps, PTACs), plumbing fixtures, door hardware, elevators, fire alarm/suppression systems, solar panels, wood trusses, and a broad range of electrical components. * Heat pump subcategories specifically called out include cold climate air-source, ducted split, ductless mini-split, geothermal/ground source, and water source — all common in energy-efficient affordable housing. * Electrical components targeted include LED lighting fixtures, panelboards, distribution panels, GFCI receptacles, surge protection devices, and security cameras. * NH&RA has announced it will submit a comment and has offered to assist others in drafting submissions. * Project-specific BABA waivers are slow and resource-intensive; general applicability waivers would remove deal friction across the entire affordable housing pipeline for affected product types. The Build America, Buy America Act has added significant procurement complexity to federally assisted housing deals since its implementation. This RFI is HUD's clearest signal yet that it recognizes the operational burden and is looking for an evidence-based path to systemic relief. The public record built from this comment period will directly influence the scope and speed of any waivers granted — making the quality and specificity of developer and contractor submissions critically important. If your pipeline includes deals subject to BABA, this filing deserves attention at the leadership level today. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.

Episode 105: Trump Pulls Back on 21st Century Road to Housing Act

President Trump canceled a planned signing of the 21st Century Road to Housing Act, leaving enrolled housing legislation in a holding pattern with no rescheduled signing date confirmed. NAHB Chairman Bill Owens expressed confidence the bill will eventually become law, but the delay introduces meaningful uncertainty for LIHTC investors, developers, syndicators, and state HFAs watching for any federal policy changes tied to the legislation. Key Takeaways: * The 21st Century Road to Housing Act has cleared Congress — the only remaining step is a presidential signature. * President Trump canceled the signing with no rescheduled date announced as of today. * NAHB Chairman Bill Owens characterized the situation as a timing issue, not a policy breakdown — language that typically signals active negotiation. * Developers and syndicators with deal structures or financing assumptions tied to any new federal housing authority in this bill should carry a contingency flag on effective dates. * If the delay moves toward a veto or pocket veto, state HFA QAP planning that anticipated federal policy changes would need to be reassessed. * Housing supply and affordability remain explicit political pressure points — Congressional passage of a bill of this scope is not routine and is unlikely to be abandoned quietly. * Watch for a White House statement clarifying the basis for the delay; that statement will determine whether this is a weeks-long pause or a more significant obstacle. The legislative work is done — this is now an executive timing question. For LIHTC market participants, the practical implication is straightforward: do not underwrite to any policy change in this bill until a signing is confirmed. State HFAs drafting or finalizing QAPs should build flexibility for federal provisions that remain contingent on enactment. The market signal here is a holding pattern, not a collapse — but the distinction only matters if you're positioned accordingly. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.

Episode 104: DASH Act Reintroduced With LIHTC and MIHTC Provisions

Senator Ron Wyden (D-OR) and Rep. Val Hoyle (D-OR) have reintroduced the Decent, Affordable, Safe Housing for All (DASH) Act for the third consecutive Congress. The bill expands LIHTC, introduces a new Middle-Income Housing Tax Credit (MIHTC), restructures the first-time homebuyer tax credit to be advanceable at closing, and adds a new home-sale loss deduction of up to $100,000 for low- and middle-income sellers. For LIHTC investors, developers, and syndicators, the MIHTC provision and the LIE-tek strengthening language are the provisions with the most direct market implications. Key Takeaways: * The DASH Act has now been introduced in three consecutive Congresses (2023, 2024, and 2026); it has failed to advance out of committee both prior times. * The bill proposes a new Middle-Income Housing Tax Credit (MIHTC) — a separate credit structure targeting the gap between LIHTC-eligible households and market-rate renters, which would require new equity market infrastructure to deploy. * LIHTC is explicitly named as a strengthening target, alongside investment in deeply affordable housing for extremely-low-income households. * The first-time homebuyer tax credit is restructured to be advanceable at closing, eliminating the liquidity gap that previously delayed access until tax filing season. * A new home-sale loss deduction — new to this version of the bill — allows low- and middle-income sellers to deduct up to $100,000 when they sell for less than their original purchase price. * Housing Choice Vouchers are central to the bill's homelessness strategy, with a five-year mandate to house all people experiencing homelessness, prioritizing children and families. * The bill's fate depends on markup activity in the Senate Finance and House Ways and Means committees — neither of which has advanced prior versions. The DASH Act's repeated reintroduction reflects durable Democratic consensus on housing supply, voucher expansion, and tax credit tools — but legislative momentum remains the open question. For the LIHTC community, MIHTC is the provision worth building institutional familiarity with now. If it ever advances, syndicators and equity investors will need frameworks ready. Track Senate Finance and House Ways and Means for any sign of markup activity. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.