The Spring Street Brief

Spring Street Management Group
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The Spring Street Brief is your daily intelligence briefing on affordable housing in America. In under 3 minutes, get the news that matters: LIHTC allocations, Section 8 voucher updates, HUD policy changes, private activity bonds, state housing finance agency deals, and emerging trends in affordable housing development. Designed for LIHTC investors, affordable housing developers, syndicators, lenders, and policy makers who need to stay ahead of the curve. AI-powered. Human-curated. Brought to you by Tom Carter at Spring Street Management Group.

  1. 3h ago

    Episode 182: HUD Holds Section 3 Benchmarks, Opens Comment Period

    HUD has issued a notice maintaining its existing Section 3 benchmark goals for hiring low- and very low-income workers on covered housing projects, citing an absence of sufficient data to justify a revision. The agency is simultaneously opening a comment period, requesting input from grantees, contractors, and other stakeholders on compliance challenges and recommendations for future benchmarks. The updated notice takes effect in November, making the comment window immediately relevant for LIHTC developers, syndicators, and lenders whose projects layer HUD funding sources. Key Takeaways: HUD is holding Section 3 benchmarks at their original levels — no upward revision — citing unavailable data as the rationale. The updated notice takes effect November 2026, creating a short window for stakeholder comment. Section 3 obligations apply to projects funded with HUD dollars including HOME, CDBG, and certain public housing capital sources commonly layered into LIHTC deals. HUD is specifically requesting quantitative data on challenges meeting the goals — thin comment records risk leaving future benchmarks set on HUD's internal data alone. Developers and general contractors with covered projects should document compliance experience — successes, gaps, and root causes — for submission. Housing finance agencies and syndicators can amplify impact by coordinating portfolio-level responses that reflect systemic patterns across multiple projects. A future benchmark revision is clearly signaled; this comment period is the primary mechanism for industry to shape what that revision looks like. For affordable housing stakeholders, this notice is less about the current benchmarks — which remain unchanged — and more about positioning for the next revision cycle. HUD's explicit request for data means the comment record will directly inform future rulemaking. Developers, contractors, syndicators, and state HFAs should treat this as an advocacy moment, not a compliance update. Coordinated, data-rich submissions are the most effective tool available to ensure future Section 3 benchmarks reflect real-world labor market and workforce pipeline conditions. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.

  2. 1d ago

    Episode 181: HUD Opens FHA Multifamily Insurance to Build to Rent

    HUD announced on October 14, 2026 that FHA is immediately expanding multifamily mortgage insurance eligibility to Build to Rent communities — single-family homes, duplexes, and triplexes operated as rental properties. The change applies to FHA's Section 221(d)(4) new construction program and Section 223(f) acquisition and refinancing program, removing a long-standing barrier that had shut this growing asset class out of FHA-backed financing. For LIHTC developers, syndicators, and lenders, the policy opens potential pathways for pairing FHA-insured debt with 4% tax credit equity on Build to Rent and manufactured housing deals. Key Takeaways: Effective immediately: FHA Mortgagee Letter issued October 14, 2026 makes Build to Rent communities eligible for multifamily mortgage insurance. Two programs covered: Section 221(d)(4) for new construction and Section 223(f) for acquisition or refinancing of recently completed rental communities. Eligible property types include single-family rentals, duplexes, and triplexes — both site-built and manufactured homes. Build to Rent projects will be underwritten under the same terms and conditions as traditional multifamily rental developments per the Mortgagee Letter. HUD explicitly linked the policy to manufactured housing innovation, with chassis removal in manufactured housing programs also under active development. The change aligns with Executive Order 14376, framing Build to Rent development as distinct from institutional single-family home acquisition. 4% LIHTC + FHA-insured debt structures on Build to Rent and manufactured housing deals may now be viable where they previously were not. This policy shift is more than a technical fix — it signals HUD's intent to broaden FHA's eligible collateral base in ways that intersect directly with the affordable housing capital stack. Developers and syndicators with Build to Rent projects in the pipeline, especially those with a manufactured housing component, should reassess underwriting assumptions now. Additional HUD guidance on chassis removal is expected, which could further expand deal viability in the manufactured housing space. Lenders can begin processing FHA applications under the new framework immediately. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.

  3. 2d ago

    Episode 180: USDA RD Updates Section 538 and Launches Preservation Pilot

    USDA Rural Development has updated the Section 538 Guaranteed Loan Program and launched a new Multifamily Housing Preservation Pilot, effective October 9, 2026, through September 25, 2028. For LIHTC developers, lenders, and syndicators active in rural markets, these changes signal a deliberate effort to reduce deal friction and accelerate preservation of aging USDA-assisted stock — with a two-year pilot window to prove it out. Key Takeaways: The Multifamily Housing Preservation Pilot is effective October 9, 2026 and expires September 25, 2028 — a roughly two-year window to execute qualifying preservation transactions. Section 538 is a guaranteed loan product that works through private lenders, making it a viable capital markets tool for 4% LIHTC deals in rural submarkets. USDA RD's stated goals include streamlining transactions and reducing regulatory burden — both directly relevant to deal feasibility in thin rural markets. USDA pilot programs have historically served as precursors to permanent policy changes; a clean transaction record during this window could drive long-term reforms. Rural preservation deals face layered complexity — USDA approval processes, limited market comps, and state HFA coordination — so early engagement with both USDA RD and your state HFA is critical. Developers with rural USDA-assisted properties nearing compliance period expirations or facing physical needs assessments should evaluate pipeline timing against the pilot window now. Rural affordable housing preservation has long been undercapitalized relative to urban markets. This pilot represents one of the more substantive federal-level attempts to change that equation. Teams with existing rural pipelines should move quickly — the two-year window is finite, lender familiarity with updated program parameters will take time to develop, and state HFA bandwidth will be a bottleneck for any transactions requiring LIHTC allocation. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.

  4. 3d ago

    Episode 179: Build America Caucus Targets BABA Exemption for Affordable

    The Build America Caucus, co-chaired by Rep. Josh Harder (D-CA) and Rep. Celeste Maloy (R-UT), released its Build More Agenda ahead of the 2026 midterm elections. A key provision for affordable housing stakeholders: a proposed exemption from Buy America Build America (BABA) requirements — a compliance layer that has added cost and procurement complexity to HUD-assisted and bond-financed multifamily development. Released alongside a separate House Democratic Housing Oversight & Policy Working Group report led by Reps. Emilia Sykes (D-OH) and Laura Friedman (D-CA), the dual releases signal that affordable housing is being elevated as a bipartisan midterm issue. Key Takeaways: The Build America Caucus's Build More Agenda includes a proposed BABA exemption specifically for affordable housing projects. BABA requirements currently apply to federally funded projects and mandate the use of American-made materials — a compliance burden that complicates multifamily pro formas with multiple funding sources. The caucus is bipartisan, co-chaired by one Democrat (Harder, CA) and one Republican (Maloy, UT), giving the agenda more legislative credibility than a single-party release. A concurrent House Democratic Housing Oversight & Policy Working Group report, led by Reps. Sykes and Friedman, adds a second front of legislative activity on housing affordability heading into the midterms. The agenda is timed to the 2026 midterm elections, positioning a BABA exemption as a potential target for a post-election legislative vehicle in the next Congress. Developers with projects where BABA compliance is creating cost uncertainty should begin flagging this development in lender and investor conversations now. A BABA exemption for affordable housing is not yet law, but the bipartisan framing and midterm timing create a credible path for inclusion in a broader housing or infrastructure package in the next Congress. For LIHTC developers, syndicators, and lenders managing deals with federal financing exposure, the political alignment on this issue is worth tracking closely. The window between election day and a new legislative session could move quickly. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.

  5. 4d ago

    Episode 178: California Wildfire Insurance and Affordable Housing Risk

    New research from the Terner Center for Housing Innovation examines the intersection of California's escalating home insurance premiums and its deepening affordable housing crisis. As climate-linked wildfire disasters push insurers out of high-risk markets, LIHTC developers, syndicators, and lenders face real pro forma risk — from preservation deals in the wildland-urban interface to new construction in fire-exposed corridors. The analysis points to both insurance market stabilization policy and physical resilience investments as parallel tracks policymakers must pursue. Key Takeaways: California's home insurance premiums are rising sharply due to climate-linked wildfire disasters, with major carriers having exited or sharply curtailed coverage in high-risk zones. The Terner Center analysis was authored by Smitha Buddhavarapu and former Project Policy Analyst Zack Subin, drawing on recent research and newly available open data sources. Insurance cost volatility is a direct threat to LIHTC deal feasibility — properties that pencil at underwriting may face untenable operating cost increases at stabilization. Preservation deals involving older housing stock in the wildland-urban interface face heightened insurability risk that must be treated as a primary due diligence variable. California has enacted recent policy measures requiring insurers to incorporate resilience improvements into rate models — the Terner research identifies these as a starting point, not a finish line. New open data sources now allow developers and policymakers to map wildfire exposure at the property level, enabling targeted resilience investment prioritization. Physical resilience upgrades — fire-resistant materials, defensible space — are increasingly a condition of coverage availability, not just a cost-reduction strategy. California's insurance regulatory environment is actively evolving, and the pace of change is likely to accelerate as wildfire seasons intensify. For affordable housing stakeholders, the implication is clear: insurance risk modeling must be integrated into acquisition underwriting, preservation planning, and asset management well before any deal closes. Teams operating in California should track the state's ongoing insurance reform process closely and stress-test operating budgets against a range of premium scenarios. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.

  6. Oct 9

    Episode 177: Chicago's 2023 LIHTC Round: 11 of 13 Projects Still Unbuilt

    Thirty months after Chicago announced its 2023 LIHTC awards, only 2 of 13 funded projects have closed and broken ground — a concrete signal that the city's layered approval process is straining one of affordable housing's most important financing tools. With $562M in estimated development costs on the line and construction inflation pushing per-unit costs higher, the stalled pipeline raises urgent questions for investors, syndicators, and developers active in the Chicago market. Key Takeaways: Only 2 of 13 projects from Chicago's 2023 LIHTC round have closed and started construction as of mid-September 2026 — 30 months after awards were announced in March 2024. The city estimated $562M in total development costs across the 13 projects in March 2024; cost inflation has pushed that figure higher since. Hub 32, a 51-unit project in Garfield Park, saw per-unit costs rise from ~$732K to ~$796K between 2023 and early 2026. 5 additional projects are expected to close before year-end; 4 more are not expected to close until after 2027; 1 has no closing date, and 1 award has been withdrawn. City-allocated LIHTC projects in Chicago average $519K per unit — 15% more than IHDA-allocated deals at $454K per unit in the same market. Both city and state LIHTC costs in Chicago exceed comparable markets like Houston by more than 50%. Chicago is one of only two municipalities — alongside New York City — with its own direct federal LIHTC allocation, creating a dual-approval structure that adds significant time to deal closings. Illinois has nearly 440,000 low-income renter households but only about 150,000 affordable rental homes available — just 31 affordable units per 100 extremely low-income renters in the Chicago metro. The city's original 18-to-36-month closing window runs through March 2027, meaning the deadline has not yet been formally breached — but four projects are already tracking past it. Mayor Johnson's Cut the Tape initiative has not yet delivered the regulatory acceleration the industry needs. For investors and syndicators with exposure to this round, year-end closings are the near-term stress test. For developers choosing between city and IHDA allocations, the cost and timeline differentials deserve serious underwriting attention heading into the next cycle. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.

  7. Oct 8

    Episode 176: HUD Releases 2027 DDA and QCT Designations

    HUD has published its notice designating Difficult Development Areas (DDAs) and Qualified Census Tracts (QCTs) for 2027 LIHTC allocations. The designations carry a 30% eligible basis boost — a figure with direct implications for deal feasibility, equity pricing, and year-end allocation strategy for developers, syndicators, and lenders active in both 9% and 4% bond-financed transactions. Key Takeaways: HUD's 2027 DDA and QCT designations are now published and effective for credit allocations made after December 31, 2026. For 4% private activity bond deals, both bond issuance and building placed-in-service must occur after December 31, 2026 for the new designations to apply. DDA or QCT status triggers a 30% boost to eligible basis, directly increasing the total LIHTC a developer can receive. Developers and syndicators should immediately cross-reference active and pipeline sites against the updated HUD maps before year-end allocation deadlines. Sites that gained a new designation in 2027 warrant updated basis calculations and revised equity pricing discussions. Sites that lost a 2026 designation must be flagged for financing teams before the December 31, 2026 cutover. State HFA qualified allocation plans often score DDA/QCT status — newly designated areas may see competitive positioning shift in 2027 funding rounds. With year-end approaching fast, the window to act on these designations is narrow. Teams working 9% competitive deals and 4% bond transactions alike need to reconcile their site lists against the new HUD maps now — not after the holidays. Basis adjustments, equity pricing conversations, and QAP scoring recalibrations all flow downstream from this single publication. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.

  8. Oct 7

    Episode 175: Pennsylvania HFA Study: 180K Affordable Units at Risk

    The Pennsylvania Housing Finance Agency, in collaboration with the Housing Initiative at Penn, has released a sweeping study — Understanding and Preserving Federally Supported Housing in Pennsylvania — finding that more than 180,000 affordable rental units across the commonwealth face long-term supply and affordability risks. The report maps federally supported rental housing statewide and identifies threats ranging from expiring affordability restrictions to physical deterioration, signaling a potential pivot in PHFA policy priorities. Key Takeaways: More than 180,000 federally supported affordable rental units in Pennsylvania are identified in the study as facing long-term risk. The report was produced in collaboration with the Housing Initiative at Penn, lending independent academic credibility to the findings. Risk factors examined include expiring use restrictions, affordability covenant expirations, and property-level deterioration — all key preservation triggers for LIHTC and HUD-assisted stock. State HFA-commissioned studies of this scope typically precede QAP priority shifts, new preservation set-asides, or targeted financing program launches. The full program-by-program breakdown — LIHTC, Section 8 project-based, legacy HUD-assisted — will be the critical data layer for investors assessing the Pennsylvania preservation pipeline. Pennsylvania's scale as a Mid-Atlantic market means risk to this inventory has direct implications for voucher utilization rates, GSE lending volume, and regional LIHTC equity pricing. Developers and owners with aging federally assisted assets in Pennsylvania should engage PHFA proactively, before policy responses are finalized. Pennsylvania HFA studies of this magnitude rarely exist in isolation — they are typically the first step toward concrete policy and financing action. LIHTC investors, syndicators, and preservation developers active in the commonwealth should treat this report as an early signal of where PHFA's QAP and program priorities are heading. Monitoring PHFA's follow-on announcements, and positioning preservation capital now, puts industry participants ahead of what could be a significant shift in how the state allocates credits and deploys financing tools. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.

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The Spring Street Brief is your daily intelligence briefing on affordable housing in America. In under 3 minutes, get the news that matters: LIHTC allocations, Section 8 voucher updates, HUD policy changes, private activity bonds, state housing finance agency deals, and emerging trends in affordable housing development. Designed for LIHTC investors, affordable housing developers, syndicators, lenders, and policy makers who need to stay ahead of the curve. AI-powered. Human-curated. Brought to you by Tom Carter at Spring Street Management Group.

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  • Creator
    Spring Street Management Group
  • Years Active
    2025 - 2026
  • Episodes
    181
  • Rating
    Clean
  • Copyright
    © 2026 Spring Street Management Group