Transcript Generated by AI 00:00 Mark Parkinson back with Park Place, and we're here again with Eric Howard to 00:04 talk about the HUD program. 00:06 And Eric, I really wanted to sit down and talk with 00:08 you about one of the major obstacles that I hear from people about why they don't 00:12 want to get into HUD. 00:14 And they say to me, it takes forever. 00:16 You know, I applied for this and I'd never know who 00:18 knows where interest rates are going to be and blah, blah, blah. 00:21 There's a new commissioner at HUD. 00:24 It sounds like he really understands the program and he's already started to do 00:27 some things that have helped with some of these challenges. 00:29 So tell, tell us about the, the new program that he started up about. 00:33 Sure, try to speed all this up. 00:35 So the, the new acting commissioner came up with 00:38 a, with an idea with the folks at HUD, which again, 00:41 have been great partners to the sector, you know, for 30 plus years. 00:46 But one of the new ideas that they've come up with is an express lane. 00:50 And so a couple key criteria for that lane, 00:53 which is an application or a project can't be more than 70% under value. 00:59 It has to have two star ratings or more. 01:02 And the debt service coverage on the in place cash flow has to be about 2% or two 01:07 times. 01:07 I'm sorry. 01:08 And if your application have the has those characteristics, 01:12 you effectively have no queue and and you go straight to a hot underwriter. 01:18 And we're seeing these loans processed in a matter of weeks as opposed to a matter 01:22 of months. 01:22 So obviously HUD is trying to to be as efficient and effective as possible. 01:28 And we're seeing dramatic increases in terms of processing times from from where 01:33 we were before. 01:34 And and so just as a proxy, I think the queue was, 01:36 it was close to maybe 100 or so applications prior to this being 01:40 announced. 01:41 That's down probably almost 60 or 70% and we're seeing HUD and doing some really 01:46 amazing things again as partner and, and getting these things processed in, 01:50 in really record times in a number of weeks. 01:53 I've heard a lot of folks in the sector say this new commissioner knows what he's 01:57 doing. 01:57 Tell us a little bit about the new commissioner, what you're think expecting, 02:01 really excited about, you know what Frank Cassidy's doing. 02:04 Frank understands really the the benefit of the HUD program to the sector. 02:09 And so he's he's done a number of tremendous things already. 02:13 He's been extremely focused on ensuring the borrowers have good access to capital 02:18 in particular given again and how how important it is to to the industry. 02:23 So he's been great. 02:25 The administration has really been focused on probusiness and so we've seen 02:29 HUD and a lot of the senior members of that that team there as well really step 02:33 up here over the last handful of months. 02:35 It's been fantastic. 02:37 I'm not terrific. 02:37 I mean, it's already a great program and it 02:39 sounds like there's somebody in place to to make it even better. 02:41 Absolutely. 02:42 So thanks for for sharing that with us. 02:43 Of course, I mean, it's good to know that it doesn't take 02:46 forever to get a HUD loan and that this express lane is, is out there. 02:48 It's amazing. 02:49 And and you know, look, we, we expect to, to continue to see, you know, 02:52 enhancements and some hopefully other initiatives that will come out. 02:56 I know that they continue to be focused on that. 02:57 So more to come. 02:58 But you know, they've made some great strides already 03:01 and we're looking forward to doing, you know, more amazing things with HUD. 03:04 Great. 03:04 Well, I mean, you all have heard me talk for a long 03:07 time about how your buildings are stabilized, 03:09 you've got cash flow and you got some coverage. 03:11 You really want to take a look at the HUD program because it it takes the interest 03:15 rate risk out, it's non recourse and it's it's a great 03:18 program that's out there. 03:19 So thanks again to Capital Funding for sponsoring this segment and thank you for 03:23 supporting Park Place.
