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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.
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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.
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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.
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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.
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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.
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The Missouri Housing Development Commission (MHDC) has opened a public comment period to gather input on topics under consideration for its 2028 Qualified Allocation Plan (QAP). With this window opening nearly two years ahead of the plan's effective year, developers, syndicators, lenders, and investors active in Missouri have an early and meaningful opportunity to influence how LIHTC and MHDC resources will be allocated — before internal drafts are even in circulation.
Key Takeaways:
MHDC governs allocation of both 9% and 4% LIHTC through its annual QAP and associated Notice of Funding Availability (NOFA). The comment period targets the 2028 QAP — opening approximately two years ahead of the plan's effective year, which is earlier than many peer state HFAs. Written comments can be submitted directly to MHDC and are formally incorporated into the QAP development process. Key policy levers subject to change include scoring criteria, basis limits, income targeting requirements, set-aside categories, and developer fee structures. Early input — submitted before internal drafts are circulated — typically carries more influence than comments on a published draft. Missouri is one of the more active Midwest HFAs; QAP changes have direct implications for project feasibility and investor returns across the state's deal pipeline. Stakeholders with views on rural vs. urban prioritization, income averaging, deeper affordability scoring, or basis boost policy should act now.Missouri's decision to solicit feedback this early signals that MHDC intends a deliberate, stakeholder-informed process for the 2028 cycle. For organizations with Missouri projects in development or under evaluation, this is the moment to engage — not after a draft is released. Monitor MHDC communications for draft publication timelines and plan your comment strategy accordingly.
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A bipartisan House bill — H.R. 9311, the Build Housing Affordably Act — has been introduced by Rep. Mike Flood (R-NE), Chairman of the House Housing and Insurance Subcommittee, and Rep. Maggie Goodlander (D-NH). The legislation targets Build America Buy America Act (BABA) requirements that have created cost and timeline friction for affordable housing developers relying on federal funding streams, including LIHTC deals with federal program exposure.
Key Takeaways:
H.R. 9311, the Build Housing Affordably Act, was introduced as bipartisan legislation in the U.S. House of Representatives. Lead sponsors are Rep. Mike Flood (R-NE), Housing and Insurance Subcommittee Chairman, and Rep. Maggie Goodlander (D-NH) — a pairing designed to attract votes from both sides of the aisle. The bill directly addresses BABA domestic content procurement requirements that have added cost drag and schedule risk to affordable housing deals with federal funding exposure. The stated goal is to "strike a better balance" between promoting domestic production and sustaining the affordable housing development pipeline — framed as a housing production argument, not a deregulatory one. BABA compliance friction has hit deals involving HUD programs and certain bond-financed structures particularly hard, where domestic supplier availability and pricing have not kept pace with project needs. Flood's subcommittee chairmanship gives the bill a credible path to markup — making this more than a messaging exercise. Developers with projects in predevelopment that rely on federal funding should model both current BABA compliance costs and potential relief scenarios as the bill advances.BABA has been a quiet deal-killer and cost inflator across the affordable housing pipeline since its requirements expanded under the infrastructure law. This bill represents the first serious, bipartisan legislative vehicle aimed at resolving that tension. Developers, syndicators, and lenders should monitor committee activity closely and engage their federal advocacy channels now — the window for industry input on bill language is typically widest before markup. A Senate companion bill, if introduced, would signal genuine momentum toward enactment.
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May housing starts fell 15.4% to a seasonally adjusted annual rate of 1.18 million units, but the headline understates the real shock: multifamily construction cratered 40.2% in a single month to an annualized pace of just 295,000 units — down 14.2% year-over-year. For LIHTC developers, syndicators, and lenders, the data lands at a critical moment, signaling that the construction pipeline is under serious stress from elevated interest rates, rising costs, and persistent labor shortages.
Key Takeaways:
Overall May housing starts fell 15.4% to a 1.18 million seasonally adjusted annual rate (HUD/Census Bureau). Multifamily starts dropped 40.2% in May to a 295,000 annualized pace — the sector is down 14.2% vs. May 2025. Single-family starts declined 1.9% to an 882,000 annualized rate, down 6.7% year-over-year; homes under construction at 587,000, off 5.9% from a year ago. Multifamily permits fell 2.8% to a 527,000 annualized pace in May, though they remain up 2.5% vs. May 2025 — a modest forward-pipeline signal worth watching. The Northeast is the only region running positive on both starts (+17.5% YTD) and permits (+10% YTD); the South is down 6.7% on permits YTD. NAHB's June builder sentiment survey weakened further, with elevated mortgage rates and affordability challenges cited as primary headwinds. New LIHTC transactions underwriting today face elevated feasibility risk — the starts-to-permits gap indicates financing and cost execution, not demand, is where deals are stalling.The divergence between permits (relatively stable) and starts (sharply lower) is the key signal for affordable housing finance professionals. It suggests developers intend to build but cannot make the numbers work at current cost and rate levels — a dynamic that directly pressures LIHTC equity pricing, increases gap financing needs, and may drive further requests for basis boosts or state subsidy layering. Teams actively underwriting new transactions in the South and West should stress-test construction budgets more aggressively and revisit financing structures before locking commitments.
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Bond markets have shifted from pricing in Fed rate cuts to assigning greater-than-even odds to a rate hike — a reversal with direct consequences for LIHTC developers, syndicators, and lenders. With core inflation at a three-year high of 3.3%, headline CPI at 3.8%, and the two-year Treasury up more than 70 basis points since March, the rate environment for affordable housing finance has materially tightened. This episode breaks down the macro forces behind the shift and what they mean for deals in the pipeline today.
Key Takeaways:
The two-year Treasury has risen more than 70 basis points since March, reflecting a bond market repricing from easing to potential tightening. Core PCE inflation is running at 3.3% — a three-year high and well above the Fed's 2% target — eliminating near-term justification for rate cuts. Headline CPI reached 3.8% year-over-year, also a three-year high, driven in part by energy and commodity prices tied to the Iran conflict and lingering tariff impacts. Q1 and Q4 2025 GDP averaged just 1% annualized growth, while the personal saving rate fell to 2.6% — the lowest since June 2022 — signaling household financial stress relevant to rental demand underwriting. Single-family built-for-rent starts fell 26% on a four-quarter basis to 62,000 homes, reflecting broad developer caution that should be mirrored in affordable pipeline assumptions. Mortgage rates are expected to remain above 6% through 2026, keeping pressure on 4% LIHTC bond pricing and debt service coverage in new construction deals. Residential construction added only 900 jobs in May, led by remodeling — a signal of constrained new-build capacity that affects affordable housing timelines and labor cost assumptions.The rate environment has changed faster than many pipeline deals were underwritten to handle. With no credible near-term catalyst for Fed easing and geopolitical uncertainty keeping inflation elevated, LIE-tek developers and their capital partners should be revisiting interest rate stress tests before commitment, not after. A resolution of the Iran conflict remains the most plausible inflation relief valve, but the timeline is unpredictable. Deals that are thin at today's rates deserve a hard look now.
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Cinnaire has closed Fund for Housing Limited Partnership 45 (Fund 45), a $307 million LIHTC equity fund targeting the creation and preservation of 2,259 affordable housing units across 27 properties in 10 states. The fund will directly benefit an estimated 5,196 residents and represents one of the larger single-fund LIHTC equity closes in Cinnaire's history — a notable signal of sustained institutional appetite for affordable housing tax credit investment.
Key Takeaways:
Fund 45 closed at $307 million in LIHTC equity — a significant raise in the current rate environment. The fund will finance 2,259 affordable housing units across 27 properties in 10 states. An estimated 5,196 residents will benefit directly from Fund 45 investments. The fund explicitly blends new construction with preservation, giving Cinnaire pipeline flexibility across deal types. Geographic diversification across 10 states signals a risk-management structure designed for institutional corporate investors. The close indicates continued investor demand for LIHTC equity despite tax policy uncertainty and compressed deal economics. Developers in Cinnaire's Midwest, Mid-Atlantic, and Southern footprint should engage now on fund allocation and deal timing.Fund 45's close arrives at a moment when preservation pipelines are competing aggressively for equity capital alongside new construction. Cinnaire's ability to blend both deal types into a single $307 million vehicle — and close it — suggests the fund structure resonated with investors seeking diversification. Developers and syndicators should treat this as both a market signal and a near-term equity access opportunity, particularly as deployment timelines will shape deal economics for participating properties through the remainder of the year.
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Senators Jeanne Shaheen (D-NH) and Dave McCormick (R-PA) have sent a bipartisan letter to HUD Secretary Turner calling for administrative reforms to the Build America, Buy America (BABA) waiver process. The current system — designed to accommodate products not domestically available in sufficient supply — has instead created significant delays and, in some cases, hard stops for affordable housing construction and preservation projects. For LIHTC developers, syndicators, and lenders working on federally assisted deals, this letter signals real momentum toward procedural relief that HUD can deliver without waiting for Congress.
Key Takeaways:
Bipartisan Senate pressure targets HUD's BABA waiver backlog, which has caused significant project delays and blocked some affordable housing deals entirely. The letter calls on HUD Secretary Turner to improve communication around waiver request status — a basic transparency gap developers have flagged for months. Senators are pushing for faster action on completed waiver submissions, meaning requests already in queue should not be stalled by administrative inaction. HUD is asked to assess the actual availability of BABA-compliant housing products — addressing the root supply chain disconnect driving most waiver requests. All three requested reforms are administrative in nature, meaning HUD can act without new legislation — a faster potential path to relief than a statutory fix. Projects using HOME funds, CDBG dollars, or other federal financing that triggers BABA applicability are most directly affected. New Hampshire developers with active BABA concerns should contact Ilana Morof directly for advocacy and technical support.The bipartisan framing here is significant. When both sides of the aisle are putting the same ask in writing to a cabinet secretary, it increases the likelihood of an administrative response. Developers and sponsors with deals stalled on BABA waivers should document the specific timeline and cost impacts — that data is exactly what congressional offices and HUD need to justify accelerated action. Watch for HUD guidance or a public response from Secretary Turner's office in the coming weeks.
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President Trump appointed FHFA Director Bill Pulte as Acting Director of National Intelligence on June 2 — while keeping him in place as FHFA Director and chairman of both Fannie Mae and Freddie Mac. The dual role raises immediate questions about leadership bandwidth at the agency that oversees the GSEs, with direct implications for multifamily lenders, LIHTC syndicators, and affordable housing developers who rely on Fannie and Freddie for bond credit enhancement and loan execution.
Key Takeaways:
Pulte retains all three roles simultaneously: FHFA Director, Fannie Mae chairman, and Freddie Mac chairman, in addition to his new acting intelligence post. Senate Majority Leader John Thune (R-SD) warned Pulte would face a "lengthy road" to Senate confirmation if nominated permanently — Trump has indicated no permanent nomination is planned, bypassing a confirmation vote. Bipartisan criticism came from Sen. Chuck Schumer (D-NY) and Sen. John Cornyn (R-TX), the latter saying he sees "no evidence of any qualifications for that job." Section 702 of FISA — authorizing warrantless surveillance of foreign targets — expires June 12; Pulte's appointment threatens to complicate bipartisan reauthorization efforts ahead of that deadline. FHFA leadership distraction carries downstream risk for multifamily deal structures that depend on GSE execution certainty, including bond credit enhancement and LIHTC equity transactions. Acting status insulates the appointment from a Senate vote, meaning no near-term forcing function for leadership change at FHFA.For affordable housing deal teams, the practical question is whether FHFA's multifamily and affordable housing agenda maintains momentum under a director now carrying a second, high-profile national security portfolio. Developers and lenders with active GSE-dependent transactions should monitor for any signs of policy slowdown or delegated authority at the agency level. If GSE engagement softens on bond or LIHTC deals in the months ahead, Pulte's divided attention will be the first variable to examine.
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HUD released Part 1 of the 2025 Annual Homelessness Report, delivering the first year-over-year reduction in the national point-in-time count since 2016. With 745,652 people counted as homeless in January 2025 — a 3.3% decline from 2024 — the report offers a cautious but meaningful signal for housing-focused policy. For LIHTC developers, syndicators, and policymakers, the data lands at a pivotal moment for federal appropriations debates and CoC funding allocations.
Key Takeaways:
745,652 people were counted as homeless in January 2025, a 3.3% decrease from 2024 — the first annual decline since 2016. Families experiencing homelessness fell 11.3%; unaccompanied youth dropped 7.9%; unsheltered homelessness declined 2.9%; homeless veterans fell 1.2%. Illinois posted the steepest state-level drop at -43.6%, followed by Hawaii at -41.3% and Florida at -11.1%; California fell 2.8% and New York fell 7.9%. Since 2013, overall homelessness is up 27%, unsheltered homelessness is up 36%, and chronic homelessness is up 81%. An estimated 17,500 people per week entered homeless systems for the first time over the course of 2024, underscoring the sustained demand pressure on housing resources. Ann Oliva of the National Alliance to End Homelessness warned that "homelessness remains a crisis" despite the positive headline, calling for sustained investment in housing-focused programs. Part 2 of the report — which includes subpopulation and program-level data used in CoC funding allocations — is still pending and will be critical for supportive housing and rental-assistance-layered LIHTC deals.The report is already being deployed on both sides of the federal budget debate — by advocates as proof that housing-first interventions work, and by fiscal hawks as justification for funding reductions. For LIHTC developers and syndicators with supportive housing components or projects layered with rental assistance, the upcoming Part 2 data will be the more actionable release. State-level outliers like Illinois and Hawaii signal where concentrated public investment is moving the needle — and where deal flow may follow.
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The Colorado Housing and Finance Authority (CHFA) has released a revised Multifamily Program Compliance Manual, updating guidance across three compliance policy areas for developments financed with Housing Tax Credits and/or CHFA multifamily loans. For owners, investors, syndicators, and compliance professionals with Colorado affordable housing assets, this is the new controlling document — and CHFA has directed stakeholders to use this version immediately for all questions on procedures, rules, and regulations.
Key Takeaways:
CHFA updated compliance policies across 3 multifamily program areas simultaneously — a scope that signals either federal regulatory realignment (likely HOTMA) or monitoring-driven corrections. The revised manual governs all CHFA-financed developments with Housing Tax Credits, CHFA multifamily loan financing, or a combination of both. CHFA has explicitly designated this as the authoritative version — prior editions are no longer controlling for procedures, rules, or regulations. LIHTC developments out of conformance on income calculation, asset verification, or recertification procedures face findings that can escalate to credit recapture. HOTMA implementation remains an active recalibration point for state HFAs; any alignment in this update has immediate implications for site-level compliance programs. Syndicators and investors with Colorado assets should confirm asset management and compliance monitoring partners have reviewed the new manual and benchmarked it against current practices. Developers with active CHFA-financed deals in lease-up or construction should complete their review before the first compliance monitoring event under the new framework.State HFA compliance manual updates rarely make headlines, but they set the standard by which properties are measured during monitoring — and findings under an updated framework can carry serious consequences for LIHTC equity. Colorado operators and investors should treat this as effective immediately, pull the full change list from CHFA, and close any gaps between current site practices and the new guidance before the next monitoring cycle.
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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.
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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.
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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.
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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.
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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.
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The 21st Century ROAD to Housing Act passed the House 396-13, with White House advisers signaling the President would sign the bill in its current form. Senate Banking Committee Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA) issued a joint statement pledging to advance legislation — but signaled the Senate's version isn't simply a rubber stamp on the House bill. A key fault line over institutional investor home-buying restrictions remains unresolved between progressive lawmakers in both chambers.
Key Takeaways:
The House passed the 21st Century ROAD to Housing Act 396-13, reflecting overwhelming bipartisan support rarely seen on housing legislation. The White House issued a Statement of Administration Policy indicating presidential advisers would recommend the President sign the bill as passed — a strong pre-signature signal. Senate Banking Committee Chairman Scott and Ranking Member Warren issued a joint statement committing to continue work toward a bill that can pass the Senate, stopping short of endorsing the House text outright. The institutional investor single-family home-buying provision remains a point of disagreement between House Financial Services Ranking Member Maxine Waters (D-CA) and Senator Warren — a fault line that could force amendments or a conference process. The Senate previously passed its own strong bipartisan housing bill, meaning reconciliation between chambers is a live possibility, introducing timeline risk for practitioners. LIHTC stakeholders should monitor the Senate Banking Committee for markup activity and any targeted amendments to the institutional investor provision. The bill's momentum is real — a 396-13 vote and White House backing are rare alignments — but Senate procedure and intra-progressive disagreements could slow final passage.This is one of the most significant bipartisan housing pushes in years, and the political window appears genuinely open. For affordable housing investors, developers, and syndicators, the near-term question is whether the Senate moves on the House text or insists on its own version — and how the institutional investor provision gets resolved without fracturing the coalition. Track Senate Banking Committee activity closely over the coming weeks.
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- Visa fler
