HUD’s March 14, 2018 Announcement:

HUD’s Office of Multifamily Housing Programs issued an Administrative Guidance Memo on March 8, 2018 clarifying language found in the 2016 MAP Guide.  The 2016 MAP Guide states that an equity bridge loan (EBL) may be the obligation of the investor(s), the limited or general partner(s), or of the mortgagor itself, but may be secured with a pledge of tax credits and/or of limited partners’ or investor members’ interests in the project’s ownership entity.  In response to questions raised by stakeholders, the Memo confirms that HUD will allow EBLs to be secured with a pledge of the general partner’s interest as well.

The Memo is available on the Office of Multifamily Housing Programs webpage to download and print at https://www.hud.gov/program_offices/housing/mfh/memos_letters.

This Memo is effective immediately and will be reflected in the next revision of the MAP Guide. Please contact Elizabeth H. Arteaga, Housing Program Officer, Office of Multifamily Housing Production with any questions or comments at (202) 402-3584, or elizabeth.h.arteaga@hud.gov.