The Federal Housing Administration (FHA) announced last week a series of incentives to encourage affordable multifamily property owners to invest in opportunity zones. FHA will reduce application fees for certain affordable housing programs in opportunity zones and will designate a team of underwriters to speed up the processing of those applications. Fees for properties with at least 90 percent of units eligible for Section 8 or low-income housing tax credit residents will be reduced by two-thirds.
The incentives are available immediately for affordable housing properties that haven’t applied. HUD estimates the changes will spur approximately $100 million investment in opportunity zones.