The Federal Housing Administration (FHA) recently announced a package of incentives to encourage multifamily property owners to invest in thousands of neighborhoods located in Opportunity Zones across the nation.
Opportunity Zones, which were created under the 2017 Tax Cuts and Jobs Act, are intended to stimulate economic development and job creation in distressed low-income communities by incentivizing long-term capital investment.
As part of its recent announcement, FHA is introducing reduced application fees paid by property owners applying for certain multifamily mortgage insurance programs for the development or rehabilitation of apartment units located, or proposed to be located, in Opportunity Zones. In addition, FHA is designating teams of senior underwriters to review these applications to ensure the most attentive and timely processing.
“When more investors can apply for benefits in Opportunity Zones, more investors can supply benefits in Opportunity Zones. And that's exactly the intention of today's Notice," Secretary Ben Carson says. "These FHA incentives, combined with the preference points HUD already offers grantees for activities in Opportunity Zones, show how this administration is maximizing the power of public-private partnerships to never forget—and always lift up—our nation's ‘forgotten men and women.’"