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Summary Provided by Russell D. Kaney
The 2026 Annual Meeting was held in Alexandria, Virginia, and began with committee meetings where members and guests discussed and shared information on a variety of topics.
State Affiliated Associations Meeting
State Associations from Mississippi, Wisconsin, Michigan, Indiana, Texas, Ohio, Alabama, and Tennessee reported on their conferences and speakers, training sessions held in their state, and topics that were presented.
These topics included insurance issues, artificial intelligence (AI) usage, supportive services, compliance issues with HOTMA updates, Stand Alone Rental Assistance (SARA), marketing, and social media usage.
One state is using the Wild Apricot application for their membership platform. Mississippi is supporting fair housing training around the state at 10 separate locations; Joe Henry is the speaker/facilitator. A brief discussion was held on fees charged for trainings/conferences. All associations use websites, newsletters, and some use Facebook as means of promoting their activities. LinkedIn is also being utilized. State associations were reminded to promote CARH vendor discounts on their websites. State associations are encouraged to put meeting schedules on the CARH calendar so that vendors can schedule time to attend.
Recommendation to the CARH Board: Encourage Rural Development personnel to attend state meetings in the future, either in person or via Zoom.
Best Practices/Education Committee
Josh Johnson of Winterwood Inc. of Lexington, KY discussed their company conference held once per year. All employees (450) attend, and although expensive, they see the value in employee morale and lessening the turnover ratio of employees. They continue to schedule regional trainings for their employees; they also use the virtual format but believe personal trainings are best.
Resident relations were discussed. Several companies have used QR codes posted on the leasing office door and bulletin board for information dissemination, including internal newsletters. Several companies continue to have customer service training, enhancing soft skills, especially for new employees.
Administrative cost-cutting was discussed. Various AI platforms were discussed, including their cost and usage. Voyager, Elise AI, RealPage, and Yardi were mentioned. Companies are using AI for their maintenance work orders, collection of rents, general leasing questions, and more.
Training options for property management companies and their employees were highlighted, with several trainers present. Ed Mackel of HD Supply reviewed his in-person and online trainings for maintenance personnel. E&A (Mark English) offers fair housing trainings and accessibility courses along with 504 reviews and comprehensive needs assessments. Zeffert (Mandy Lewis) explained the in-person and online offerings of her company. Spectrum and US Housing Consultants were also mentioned but did not have a representative in the meeting.
Hiring and compensation for managers and maintenance revealed that 20%+ of maintenance technicians are 65 years old or older. Hiring older technicians (many part-time) provides fewer problems and issues than younger colleagues. Compensation ranges are varied, with some companies offering full benefits and others that cannot.
Recommendation to the CARH Board: RD field personnel are overloaded with properties to manage; suggest that RD contracts out more of the work and eliminate redundant work assignments.
Lenders Committee
The lending committee recommends a 50-year amortization for 538 loans rather than the 40-year amortization in place now. The change would require congressional action. Lenders continue to engage RD-USDA and GNMA (Ginnie Mae) to increase the loan-to-cost ratio from 70% to 85-90%. Ginnie Mae is generally supportive; RD-USDA has been reluctant to discuss. Increasing the percentage that Ginnie Mae could guarantee would provide more proceeds to a transaction. The 538 program has a $400 million budget, but less than 50% of this guaranteed authority is being used. These initiatives would help combat several issues, such as rural deals receiving the worst tax credit pricing; CRA investment in rural deals is very low; and rural deals have had to turn back LIHTC allocations for lack of investors in smaller deals. The 90% loan-to-cost would likely help market-rate and workforce housing deals in rural areas more than LIHTC deals but would add to the options for financing more units in rural America.
It was pointed out that the 538 programs had a high loan volume of $240 million in years past, but more recently, the volume has been in the $160-$170 million range. The $400 million cap on the program is budget neutral (no subsidy).
RD-USDA delays in underwriting on 4% bond transactions and on 9% LIHTC allocations are causing a lack of trust with Housing Finance Agencies across the country. Extensions are being requested, and credits are being returned to the HFA’s. RD is not meeting LIHTC timelines in many states. A call for better communication and transparency from RD is needed. Maryland has stopped doing any 4% bond transactions with RD financing involved. Part of the problem is the subordination agreements between individual HFA’s and RD-USDA. Some states have MOUs on file between RD-USDA and the HFA. Other states want to add or delete language, which RD-USDA is reluctant to do. This often causes a stalemate, which is sometimes unresolved. RD-USDA responds that they cannot create a subordination agreement unique to each state; they do not have staff or attorneys to do this.
Recommendations to CARH Board: Engage RD-USDA on 50-year amortization issue and 90% loan-to-cost issue. Lower debt service coverage from 1.15 to 1.11.
Management Committee
Budgets are being approved with average rent increases. The Federal budget for RA (Section 521) is $80 million more projected in FY2027 than the previous year. This would allow no more than a $24.00/unit rent increase if spread across all properties. Insurance costs are driving up rents. RD-USDA has revised insurance specifications (allowing higher deductibles) in response. In some areas of the country, no private insurance is available, and companies are having to use the state insurance pool programs.
Inspection burden was discussed; there was agreement that there are too many inspections. How can they be standardized and accepted by lenders, HUD, RD, and HFAs?
Management fees need more consistency and better timing of the fee structure to work into budgets. A recommendation for an OCAF adjustment allowing for more consistency was suggested.
Recommendations to the CARH Board: Push for 100% rental assistance (RA) for all properties. Allow non-RA units to reduce rents rather than allowing them to remain vacant. Encourage reduction of properties per loan specialist (now have anywhere from 60-130 per specialist); increase staffing at the St. Louis finance office.
Developers & Owners Committee
Discussion held on timelines for transfers and closings, with 12-18 months being the consensus. Helpful if you can get the same underwriter on all deals. Be a squeaky wheel; send one email at least weekly asking for a status check. One developer asked if a SARA model lease would be developed. Appears RD-USDA has no plans for a model lease.
Subordination agreements are needed between state HFA’s and RD-USDA. CARH has proposed a subordination agreement based on the HUD subordination format. The RD handbook calls for MOUs between state HFA’s and RD-USDA.
Development costs were reviewed; materials pricing appears more stable, but labor is still an issue in many areas.
RD-USDA pipeline of project closing information would be helpful. Can RD-USDA hire consultants to do more of their work? Make sure rent increases for your transfer go into effect at closing, insist on this timing, and include it in the Letter of Conditions (LOC), do not wait until the rehab is finished to raise rents.
Recommendations to the CARH Board: Strive for 100% RA for all projects; inquire as to what happens to RA recaptured through projects going through prepayment; the prepayment voucher fund is out of funding, RD backfilling with other funds. Question arose regarding a project not being rural at the time of loan payoff; is the property eligible for a SARA contract? Upgrades to IT system needed urgently.
Washington News & Updates
Colleen Fisher, Executive Director of CARH, along with Tom Reynolds and Nick Tsimortos, advisors to CARH, spoke on current legislation and policy issues affecting rural housing in Congress. The 21st Century Road to Housing legislation was widely discussed as the House and Senate were scheduled to vote the week of the conference on this key housing bill. The legislation covers a variety of issues and is 311 pages long. Seven pages in the bill directly address decoupling, which would make the program permanent. The sentiment was that RD-USDA will need a new handbook for decoupling and transfer issues associated with decoupling. Policies and procedures will need to be codified. The SARA program would allow RD-USDA to look forward four years, notifying owners and projects of a pending loan payoff during the next four years. Current notification is that in the same fiscal year the loan is scheduled to be paid in full. This will allow more time for planning and positioning a property for best owner results. Three options are available to owners: 1. Stay in the program; 2. Decouple from RD-USDA under the SARA program; 3. Walk away from the program and convert the property to market rate.
Funding for FY2027 was discussed. A continuing resolution past October 1, 2026, appears likely unless appropriations bills move much more quickly. Worst-case scenario would be a government shutdown in fall of 2026.
A tax bill is possible in this Congress; rural advocates are still pushing for a 30% basis boost in tax credits for rural deals.
Opening Luncheon with Key Policy Makers
Madeleine Marr – Senate Banking Committee Housing Policy Advisor
Anna Tyger – House Ways & Means Committee Professional Staff
Staffer – House Appropriations Committee
Conversations with Congressional staffers included budgets for 2027, how the appropriations process works, and the 21st Century Road to Housing consensus between Senators Warren and Tim Scott.
Other topics included the LIHTC and Bond revisions, rural opportunity zones, making the New Markets Tax Credit program permanent, and small business 20% permanent tax deduction. The Hill staff reviewed how each piece of legislation came to fruition along with how the decoupling legislation evolved for the RRH515 program.
Day 2
Discussion with the Regulators
Bob Iber – HUD-Senior Advisor, Office of Multifamily Programs
Karissa Stiers – USDA Rural Housing Service, Acting Deputy Administrator for Multifamily Housing, Director, Field Operations Division
Iber - HUD has moved out of the former Weaver building in Washington, DC, and is now located in Alexandria, VA. HUD is working with 30% fewer staff than in prior years. They have implemented the single underwriting model: total review by one team; technical staff does not touch a file unless asked to do so. Put in place to speed up the processing times.
HUD expects more volume in loans next year. They have established a LIHTC Express Lane, established a Build to Rent Program, and are looking to streamline the closing teams.
Currently drafting policies to have HUD loan proceeds come into a transaction with equity on LIHTC deals. NEPA rules are being reviewed for streamlining, including the floodplain rules, out for public comment now.
BABA-Build America, Buy America Act only applies to 202 and 811 new construction projects and does not apply to Section 8 or the FHA lending program.
HOTMA will not be implemented on January 1, 2027; systems are not in place at HUD, and vendors are delayed.
HUD model leases are no longer being reviewed until the Office of Management and Budget (OMB) is finished with its review of HOTMA.
NSPIRE inspections are backlogged; expect some changes.
AFHMP (Affirmative Fair Housing Marketing Plan): expect revisions and rescissions soon.
Immigration status: refer to the February memo published by HUD; work requirement for housing is up to the landlord; work requirements also require supportive services.
OCAF adjustments for 2026 became effective February 26, 2026, and make change at the HAP contract anniversary date.
RAD program has seen 1902 project conversions to date; another 44,000 units are in the queue for conversion.
Stiers – Rule changes on NEPA (final rule) came out in April, but regulations are not out yet. The thirty-day notice on non-payment of rent was rescinded in February 2026. HOTMA became effective at RD on July 1, 2026. Insurance requirements and rules were changed to allow for higher deductibles. First revision since 2004. In April, the simple transfer rule was reinstated and extended for two years. The 20-year restrictive covenant on heirs’ property was eliminated.
SARA's focus is on properties in rural areas.
RD is not requiring the AFHMP (Affirmative Fair Housing Marketing Plan).
RD continues to review portfolio recommendations from CARH and other rural organizations. No information is available on possible changes.
Funding approved for sixty-one MPR applications from the last round. Old or legacy MPR’s with 20-year debt deferral coming due are being looked at on a case-by-case basis. No policy has been created for these projects by RD.
538 loan programs have a continuous cycle that is open with budget authority up to $400 million.
Rental Assistance (RA) has a $1.715 budget in fiscal year 2026. FY 2027 proposed budget is $1.795 billion ($80 million increase).
RD has $1 million appropriated for IT enhancements and has not spent the funds yet,
Questions/comments from the audience: property managers looking for advice on how to speed up income verifications; RD expects the 5,000-unit cap for the SARA program to be exceeded in 2028. Will there be enough RA to handle all SARA contracts plus the existing 515 program? An owner commented that they had two closings in September 2025 and still have not received RA in June 2026, with a nine-month delay in some cases. Colleen Fisher pointed out that the Senate passed the 21st Century Road to Housing bill by an 85-5 vote. Language in the bill requires MOUs between HUD and RD. The bill requires RD-USDA to write regulations for the permanent SARA program within 120 days. It also requires stakeholder input.
Your Fourth AI Panel This Year
David Layfield of HousrAI (formerly ApartmentSmart.com) moderated a panel that focused on where AI is now in a working environment for affordable housing. The AI products are being generated quickly. AI is available for as little as $20.00/month (ChatGPT).
The biggest question to answer for your company is whether AI is producing any value to your organization. AI in affordable housing will have some government input. If used, governance, company rules, and guardrails need to be established. If a company buys into using AI, they need a company account, a single account, and should not allow personal accounts to do company work.
Process and data: figure out your process for using information first (use case), then add data. Have a plan, communicate the plan, then communicate the same plan continuously. Staff will ask how we use this resource and when we use this resource; have the answers.
Monitor whether AI is being used; if it is not used, it is not worth the expense. Encourage employees to submit use cases: how can they use the AI tool for their specific work.
Expect AI platforms to become more expensive. The providers need to turn a profit. $20.00/month as a cost today may be ten times that amount/month in the near future.
Anne Hollander, Managing Director of The Strategic Edge in Dallas, Texas, reviewed a case she worked on for a large developer/property management firm. They built an onboarding process for new properties that incorporated two hundred documents. It reduced the process from 2-3 months to 48 hours. It allowed the property to hit their lease-up and financial milestones faster. Has also used AI for compliance regulations and reviews. They are building a knowledge base using AI agents for specific tasks. AI needs to be monitored if used for meeting transcriptions. Be leery of information going out of office that has been transcribed and not reviewed. Can be an issue in legal matters, an issue at discovery in a lawsuit.
What Rural Housing Providers Need to Know-Delve into Regulatory Uncertainty
Steve Rosenblatt of Spectrum Compliance reviewed recent changes to the emotional support animal issue. Residents were bringing property managers notes from doctors that described their need for an emotional support animal, which in some cases were legitimate, but many others were bogus, a way to overrule a no-pet or restricted pet policy. As of May 22, 2026, it is now up to the aggrieved person to bring a suit against the property owner; the Department of Justice will no longer bring a suit for trained support animals. Change will likely stop people from claiming a disability and need for an animal. In some cases, residents with a pet and a pet deposit held by the property were asking for their pet deposit back as they now had an emotional support animal. Bogus doctor verifications will likely decrease (find these on the internet) and will stop the pet rule abuse. The 2020 legislation is rescinded.
ADA (Americans with Disabilities Act) only applies to publicly accessible property. A project’s office and handicap parking lane fall under ADA.
Reasonable accommodations: LIHTC is not considered a federal program. In a LIHTC-financed project with no other funds, the tenant or resident must pay for the reasonable accommodations. If HOME funds are in the deal, the landlord must pay for the reasonable accommodations. The 538-loan program is also not considered Federal funds and not subject to landlord payment for reasonable accommodations.
Capital Markets and Rural Transactions: Perspective from Debt & Equity Providers
Representatives from Capital One Community Finance, Enterprise Community Investment, Inc., Cinnaire, PNC, and TM Associates Development discussed the current investment environment and trends going forward. There is $30 billion of activity in the tax credit market. It is a soft market with lots of deals and a limited investor pool. There is a 20-cent spread on pricing for LIHTC credits, low seventy cents to mid ninety cents. CRA (Community Investment Act) still drives higher pricing by financial institutions. The pricing of low eighty cent range is average, with a mid-seventy-cent range if not in a CRA market. Thirty percent of deals are being priced in the 70s, 60% priced in the 80s, and 10% in the 90s. Most investors have their 2026 pipelines full of deals and are already looking to 2027. Investors have choices and look for deals with strong partners, a favorable balance sheet, strong supportive teams (management and construction), and strong markets. Capital One will favor CRA deals to fill their pipeline.
PNC debt provider is constrained on deals by their underwriters. Filling the 2027 pipeline now. Fannie Mae and Freddie Mac have faster executions to close than HUD. Equity drives the debt on all deals. PNC underwriters get pushback on scattered site deals. Developers may get better deal terms if they package the debt and equity together, which PNC can do.
Cinnaire only has multi-investor funds, no proprietary funds. Invest around $500 million per year, two funds each year, one in the spring and one in the fall. CRA fills 50% of investments; 50% are non-CRA. Twenty-seven percent of their deals are in rural markets. Rural deals with occupied rehabilitation pencil out well, generally. Smaller deals fit better in a multi-investor fund.
Enterprise considers a $5 million equity placement a small deal. Fannie Mae and Freddie Mac are looking for larger deals. They are putting together a rural fund at Enterprise for 2027, but no specifics given.
The Public Welfare Investment increase from 15% to 20% for banks is a good thing and will not significantly increase investments in LIHTC. This provision is included in the 21st Century Road to Housing bill.
None of the companies represented on the panel have any excitement about the opportunity zones being created.
Thread The Needle
This panel of developers discussed underwriting and filling the financial gaps created by a project. The Federal Home Loan Bank-AHP funds and state housing credits are two sources that are often tapped for additional proceeds over and above equity and hard debt. Developers have run into conflicting underwriter criteria that differ from RD underwriting. Development fee incentives for rural deals can conflict with RD criteria. Example: Texas allows a 20% development fee on small deals and favors rural deals in their 9% program. RD allows a 15% development fee without exceptions. The PAT builds an 8% development fee for acquisition and 15% for construction. Cutting the development fee decreases basis and must be made up with other costs. RD is unwilling to grant waivers on underwriting; they reason that they do not have the regulatory authority to do so.
Cutting Red Tape on Environmental Reviews: What It Means for Rural Housing
The National Environmental Policy Act (NEPA) was established in 1969. The Act regulates government agencies, not the private sector. Several pieces of NEPA are under review but not finalized. Remediation, such as dealing with lead-based paint or asbestos, needs to be completed by a certified professional company and staff. Make sure the general contractor has valid certifications (or the subcontractors) and can maintain the certifications throughout the contract period. Some certifications are only good for 12 months.
Exploring Decoupling Transactions: Today and Looking into the Future
The panel included Mike Resnik and Eric Siebens of RD, along with Ari Severe of TM Associates (first SARA contract from RD), Rob Hall from 538 lender Bonneville, and David Ciminelli of CREA, an equity syndicator.
RD reported that in FY 2024, there were eight contracts closed on SARA. Recently, the cap for SARA-approved units per fiscal year was raised from 1,000 units to 5,000 units. SARA is a voluntary program for owners. Eligibility runs from October 1 to September 30, a fiscal year period when your loan would be paying off the balance of the loan and the project is subject to losing rental assistance. In 2025, there were 25 eligible properties; in 2026, there were 52 eligible properties, with 776 RA units eligible. Projections are for 2028 at 221 projects (6,426 units, including 5,000 RA units).
Loans maturing now are from 1976, a 50-year period. All loans on the property must mature to be eligible, including MPRs, and must have rental assistance on the property to be eligible. Minimum 10-year contracts, maximum 20- year contracts. Owners choose. Rents set at FMR’s with an annual OCAF adjustment. $500.00 per unit minimum reserves but can be reduced if a third-party lender requires less. An assignment/assumption of a SARA contract is permitted after 12 months have elapsed.
RD-USDA website has SARA information on notification, sample contract, and eligibility.
Fifty-two percent of 2026 properties eligible for SARA have proceeded with an application.
Process starts with a concept call, review of application, underwriting, letter of conditions (LOC) to include rents, physical conditions, tenant notification letter (60 days required), field servicer review (two in agency), clear any findings, tenant certification fixes, pay off loan when contract is executed, new project ID assigned, changeover from 515 to SARA in MINC, tenant certification paperwork the same, 30 contracts completed to date, timeline from letter of conditions to closing is six months.
RA funds are suspended while SARA is being processed; the owner may have to inject capital into the project during this time. RA will be paid in full.
The cost of the SARA program has not been determined and will need a budget, still some RD-USDA oversight on the property. RD-USDA does not anticipate creation of a model lease for SARA. The lease will be new, not the old 515 lease, and it will need to include a state-specific addendum. Section 521 includes the SARA program.
Issues under review by RD-USDA: Can a contract be extended beyond the original 20 years? With an assumption of the contract or a change of owner, does the term of the contract reset, or do the existing terms apply?
The 21st Century Road to Housing legislation provides a four-year notification process as to loan maturity. This will allow the owner time to plan, especially if LIHTC financing may be appropriate for the recapitalization of the property.
Equity and debt providers see similarities to the RAD/Section 8 program of HUD. Overhang risk is a factor if the RA subsidy goes away. Eligibility requires a property to remain in a rural area.
Rent increases under SARA are effective on the anniversary date of the SARA contract.
Day 3
Asset Management and Servicing Issues-Nitty Gritty with HUD & RD
RD was represented by Michael Resnik -Director of Asset Management Division, Jonathan Bell – Director of Processing Reporting.
HUD was represented by Daniel Clark and Parker Lester, Branch Chiefs, and Lindsay Redlin-Policy Advisor.
Jonathan Bell reviewed the transfer process and the 2020 realignment that established the different divisions at RD. RD continues to review the CARH recommendations for program enhancements from March 2025. Currently, there are fifty applications in the intake process, sixty-two applications in underwriting, and fifty-two in closing for a total pipeline of 164. Typically, RD sees anywhere from 100-150 properties in the pipeline unless a large portfolio gets submitted, which can skew the numbers higher. Process improvements are under constant review. RD understands the transfer process is taking too long. A high-priority fix is getting the rental assistance rolling out faster after closing. Long wait times now exist where owners are going months without RA.
Looking ahead, RD is approving post-rehab rents to be put in place at closing. Return to Owner and reserve deposits calculated for post-rehab budgets are also being approved at closing. RD expects to reduce their touchpoints on third-party reports, which slows down the processing and are not needed. Construction monitoring has now been moved out of the closing group since 2/2026. Recertifications of tenant income still needed during the closing process. No longer need to send the CNAs to program support staff as of 2/2026.
Appraisals are reviewed by RD staff, and the goal is to review them in five to six days. RD is now moving a file to underwriting before the appraisal review is completed. Appraisal training is being contemplated by RD, process is slow when errors, omissions, and other appraisal requirements are not met, and a memo must be prepared back to the appraiser for corrections or clarifications. Some comments run three to four pages long.
Exhibit 7b1 is being revised; anticipate fewer transfer documents in the future; eliminating third-party reviews is the goal. RD is going to a single underwriter model where one team will do all functions, including intake and processing the application, underwriting, and closing (private sector and HUD model).
A PILOT program is anticipated to allow for the Administrator’s exception authority to the regulations. Language needs to be published in the Federal Register; the goal is to reduce barriers to processing and is a high priority for the agency.
There is no additional rental assistance available for transfer properties at this time, although you can still ask for it.
An Executive Loan Committee is now meeting to review transfers and work out issues; senior leadership is on the committee, and RD states this review does not slow down the process.
Subordination agreements are standardized with the GSE’s (Fannie, Freddie, Ginnie Mae), and they need to reach out to Housing Finance Agencies to fix issues. There is an internal focus group looking at this issue, and it often pops up during or just before closing and slows the process. Must be resolved before a closing can take place.
Mike Resnik reviewed the extension of the simple transfer process to December 2027. The transfer policy for heirs’ properties has changed, no longer placing a new 20-year restriction on properties when a death of the borrower/owner occurs.
All properties in the portfolio have been inspected one time. Now starting over on the portfolio. Generally, seeing fewer health and safety issues.
The reserve request process has been going well. Between January and June 2026, 16,500 reserve requests have been processed; the average time to approve is 1.5 days. Management agents need to use the 3560-12 form; anything else will be kicked back. The process is working well.
The RA budget for fiscal year 2027 is projected to be $1.795 billion, an $80 million increase from the current $1.715 billion. FY 2028 budget will include SARA RA carve-out. There are approximately 300,000 RA units in the program.
The management fee schedule has not been completed, and no date for the release of the new management fee schedule was mentioned.
HUD sees 1,000 inspections/month using NSPIRE. In 2026, HUD used two contractors for inspections. Standards for inspections are being updated every three years. The replacement reserve policy is being revised, and a draft will be out soon for comment, looking at building a portal to handle reserve requests.
HUD will not be able to implement HOTMA on January 1, 2027. Internal systems are not in place, and vendors need more time. No updated implementation date given. HUD still uses the Affirmative Fair Housing Marketing Plan, but there is no need to update the plan if there have not been any changes over the past five years.
HUD handbooks are being revised; OMB (Office of Management & Budget) is reviewing all chapters. The draft will be out for public comment.
EIV reports to verify income are being corrected; data connections have been faulty.
Emergency pull cords in senior properties are no longer required and can be removed, but if left in place, they must be functional. Owners can voluntarily include them in a unit.
If an RD property is prepaying their loan or if the loan is being paid off at RD, HUD requires property financials if the property has a HAP contract.
Questions/Comments from the Audience
Pilot transfer program needs administrative waivers rather than waiting for regulatory changes.
Executive Leadership Committee review does not add time to the process of a transfer per RD; they bring in asset management people on the review for their comments.
RD has no waiver authority for developer fees and needs regulatory relief on this issue.
The Section 542 voucher budget was zero dollars in FY2026 and zero dollars for FY2027. Cost could be as much as $48 million.
Prepayment properties have been consistent at 75-100 properties in the process at any one time. Mike Resnik states there are 2,000-3,000 properties still eligible in the portfolio.
A 538-lender brought up the issues they would like to change, namely, put in place a 90% loan-to-cost ceiling on loan proceeds under guarantee (currently 70%), go to a 1.11 debt service coverage ratio, and allow a 50-year amortization on loans (currently 40 years). RD stated they are open to review these changes.
Property managers raised the issue of long wait times with the servicing staff at the St. Louis finance office. Experiences have been 2-hour wait times and being disconnected after waiting; RD's response was that they are moving resources to St. Louis.
Owner brought up the MPR 20-year cliff and how RD can resolve it. RD is aware of the issue and looking at MPR properties on a case-by-case basis. Also reviewing a future policy on what to do on a 30-year loan with 50-year amortization. The change to a 30/50 structure was implemented in 1996, so loans that are 30 years old are maturing with a loan balance.
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