I recently got back from the SWAC meeting in Fort Worth, Texas, and the SMAC meeting in Atlanta, Georgia. Both were very informative and great events.
D3G’s staff were invited to present and train on topics of engineering, environmental, and energy as they apply to the 2016 MAP Guide and the MIP Reduction Notice. A few of the things I learned from the conferences:
a. Transformation is hard to do. Fort Worth is two years removed from the process and Atlanta is currently in the midst of transformation – and when asking Lenders and HUD staff how is the process going, the four letter word most heard was not “easy”.
b. Training is needed for HUD, Lenders, and Practitioners alike. It is evident during these times of changing policies and guidebooks that quality training is needed more than ever. The Single-Underwriter Model, a keystone of the transformation, relies upon the premise of a very knowledgeable HUD representative who understands the technical due diligence subject matter, as well as multifamily underwriting.
c. The MIP Reduction Notice for Green Buildings is energizing the FHA markets in two ways. First (and best) is the blitz of conventional product that wants to achieve the reduced MIP. Second (but worst) is the misinformation in the marketplace about how easy it is. It is not that easy, and we all should be reminded of HUD’s best line of the conference when presented with the question: “What if I don’t get an energy score of 75 post-construction?” Answer: Death Star activated. HUD was very clear, a non-compliant property will be forced into compliance, or else.
d. The Georgia Accessibility Law often referenced by the Atlanta HUD office may not be enforceable.
e. Balconies, Noise, and HUD currently don’t make a good mix and compromise needs to be reached to allow for the development of vibrant urban housing and transit oriented developments.
And finally, SMAC knows how to throw an event in celebration of 15 years, and dancing to the sounds of The Brotherland was fun!
For more information regarding the above topics and others, please be on the lookout for our next newsletter, which will be distributed in early June. Until then, keep sending us your inquiries concerning all things HUD.