CA Announces Final Multifamily Regs
The California Office of Administrative Law has approved the 2017 Uniform Multifamily Regulations effective Nov. 15, 2017. The state Department of Housing and Community Development will host a webinar from 1:30-4:30 p.m. on Nov. 28, 2017, to present the changes and explain how they may apply to new development projects. Click HERE to register for the webinar. Visit HCD's UMR webpage for more information.
Among the key changes are:
• Added flexibility to underwriting standards for debt-service coverage ratios
• Relaxed prohibitions to balloon payment loans by allowing exceptions
• Allowed "sandwich loans," provided that HCD's affordability provisions are senior to the senior loan and survive foreclosure
• Increased allowable developer fees and asset management/partnership management fees
• Changed operating and replacement reserve requirements
• Allowed provisions for scattered site projects
• Allowed supportive services costs as eligible operating expenses (within described limits)
Established regulations to include tribal lands FAQs, instructions and checklists for required documentation will be added soon.