Guide Update 24-09
:  Expanded Housing Choice
Effective:
Expanded Housing Choice (Redline).pdf
Form 4241

HIGHLIGHTS

Effective for all Mortgage Loans Committed as of October 15, 2024, requirements for Expanded Housing Choice (EHC) were updated to:

 

  • expand EHC availability to all markets without Source of Income Protections for Housing Choice Voucher renters;
  • clarify EHC eligibility; and
  • streamline asset management requirements.

 

Primary Changes

  • Moved the EHC requirements from Part II, Chapter 1: Attributes and Characteristics into a newly created Part III, Chapter 23: Expanded Housing Choice.
  • Clarified EHC eligibility.
  • Expanded EHC beyond Texas and North Carolina to all markets without Source of Income Protection legislation effective
    • currently, or
    • within 2 years after the Mortgage Loan Origination Date. 
  • Required properties have at least 40% of units within the applicable HUD 
    • Fair Market Rent, or
    • Small Area Fair Market Rent.
  • Updated Part V, Chapter 4: Asset Management: Loan Document Administration, Section 418.07: Expanded Housing Choice to:
    • remove references to the Payment Guaranty (Pricing Incentive Recapture) (Form 6020.PIR);
    • require you to collect an annual rent roll using new Streamlined Rent Roll (Form 4241); and
    • allow you to request the Annual Loan Agreement Certification (Expanded Housing Choice) (Form 6620.Supplemental.Expanded Housing Choice). 

 

Questions

Please contact Susan Filanowicz at (202) 752-1039, or [email protected], with any questions.