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Andrew LaSalla
Andrew LaSalla II is one of the most trusted financial consultants in the residential and commercial lending business. With over seven years of of property loan underwriting experience, Andrew's sole focus is helping clients successfully navigate complex financial laws, terms, rules, paperwork, and transactions necessary to secure loans for new construction, purchase, or refinancing of multifamily, healthcare, affordable housing and student housing properties. Whether it's HUD, FHA, or MAP loans, Andrew is committed to tailoring financial solutions for every client he serves.
The U.S. Department of Housing and Urban Development (HUD) has launched its new LIHTC Express Lane Initiative, a significant change for affordable housing developers. Outlined in a mortgagee letter released Monday, the program is designed to speed Federal Housing Administration (FHA)-insured financing for qualified Low-Income Housing Tax Credit (LIHTC) projects seeking Section 221(d)(4) construction loans.
For years, developers have cited lengthy underwriting and review timelines as a major obstacle to FHA-insured construction financing. The Express Lane aims to fix that by reducing paperwork, expanding eligibility, and targeting a faster review. HUD has reaffirmed its goal of issuing firm commitment decisions within 30 days for qualifying projects.
The initiative is intended for experienced LIHTC developers and builds on HUD’s earlier affordable housing pilot programs. According to HUD, LIHTC transactions generally carry lower risk because of substantial tax credit equity, conservative underwriting, and extensive third-party review by lenders, syndicators, and investors. That allows HUD to streamline its own process without compromising credit quality.
What’s changed
- No 200-unit cap: Larger developments now qualify.
- Broader eligibility: Both 9% LIHTC deals and 4% deals financed with tax-exempt bonds can participate.
- 80% loan-to-cost restored: Developers get more leverage than earlier pilots allowed.
- No 25% developer fee deferral: Sponsors have more flexibility in structuring the capital stack.
- Fewer pre-application items: Borrowers can reach underwriting sooner.
For developers, lenders, and investors, the Express Lane is an important opportunity. Faster processing, broader eligibility, and less administrative burden could speed the delivery of much-needed affordable housing nationwide. With construction costs and housing demand still straining the market, HUD’s effort to streamline LIHTC financing shows a commitment to removing barriers and encouraging new affordable rental communities.