On May 9, HUD announced new incentives for multifamily property owners applying for certain Federal Housing Administration (FHA) loans in Opportunity Zones. HUD will reduce FHA mortgage insurance application fees for multifamily market-rate transactions and for transactions that meet HUD’s definition of affordable or broadly affordable when the property is located in an Opportunity Zone. Established by the Tax Cuts and Jobs Act of 2017, Opportunity Zones are designated low-income census tracts that can provide incentives to encourage investment within their community. To date, 8,761 communities in all 50 states, Washington D.C., and five territories have been designated as Opportunity Zones.
HUD is also improving the procedure for processing applications by designating HUD Senior Underwriters to process applications.