Department of Housing and Urban Development August 23, 2010 – Federal Register Recent Federal Regulation Documents

Prohibition of the Escrowing of Tax Credit Equity
Document Number: 2010-20630
Type: Rule
Date: 2010-08-23
Agency: Department of Housing and Urban Development
This rule conforms HUD's Federal Housing Administration multifamily mortgage insurance regulations to a provision in Title VIII of the Housing and Economic Recovery Act of 2008 that prohibits a requirement that tax credit sales proceeds be placed into escrow, at the time of initial endorsement, for assurance of project completion and to pay the initial service charge, carrying charges, and legal and organizational expenses incident to the construction of the project. This rule does not prohibit HUD from requiring escrows of funds for other purposes, such as for working capital. The rule also makes other changes to reduce burdens on the use of tax credits.
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