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  • Comment Detail

  • Date: 07/21/23
    First Name: Laura
    Last Name: Abernathy
    Email: labernathy@nhtinc.org
    Organization Type: other
    Organization: National Housing Trust

  • Comment

    We are writing to urge the Federal Housing Finance Agency (FHFA) and the Enterprises to promote housing stability and preserve the affordability of existing and future Low-Income Housing Tax Credit (Housing Credit) properties by upholding the Right of First Refusal (ROFR) and limiting the use of Qualified Contracts (QC). NHT recommends both Enterprises adopt language and practices that protect both existing and new Housing Credit properties and support state and local Housing Credit allocating agencies by:
    1. Identifying Housing Credit properties approaching Y15;
    2. Providing technical assistance to nonprofits;
    3. Adopting stricter investor eligibility; and
    4. Expanding language in Partnership Agreements to include:
    o Protecting language that clarifies the nonprofit ROFR;
    o Clear actions that trigger the ROFR;
    o Clear calculation of the ROFR purchase price; and
    o A Letter of Intent to vet investor eligibility.

    NHT's recommendations, as discussed in greater detail in the accompanying letter, are informed by the impacts of disputes to the nonprofit partner's ROFR in addition to the investor tactics systematically challenging the nonprofit partners' ROFR.