Uniform Multifamily Regulations


The Uniform Multifamily Regulations (UMR) regulate all financial feasibility analysis/underwriting and project management and operations for the Department of Housing and Community Development’s (Department or HCD) multifamily housing loans and grants.

In 2015, HCD initiated a process to update the UMRs to better align operations and loan underwriting criteria with current market conditions and regulations and policies from state partner agencies.

Major changes in the 2017 UMRs

  • Add flexibility to underwriting standards for debt-service coverage ratios
  • Relax prohibitions to balloon payment loans by allowing exceptions
  • Allow sandwich loans, provided that HCD’s affordability provisions are senior to the senior loan and survive foreclosure
  • Increase allowable Developer Fees and Asset Management/Partnership Management Fees
  • Change Operating and Replacement Reserve requirements
  • Allow provisions for Scattered Site Projects
  • Allow Supportive Services Costs as eligible operating expenses (within described limits)
  • Establish regulations to include Tribal Lands

2017 UMR Regulations

The new UMRs apply to HCD multifamily projects executing a Standard Agreement after November 15, 2017 for the following programs:

MHP, HOME, JSJFWHG, and other HCD programs are also subject to separate program-specific regulations and/or guidelines governing the processes for awarding funds, rent and occupancy requirements, and related subjects. Program participants should refer to both the UMRs and the separate regulations for the program they are applying for or currently using.

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How do the 2017 UMRs apply to my project?

There are four situations under which the 2017 UMRs can become applicable to a project:

  1. Your HCD-funded project has an award, but no Standard Agreement signed yet.
    • Projects in this category will have the new 2017 UMRs apply throughout the HCD award and loan closing process.

    • Questions? Please contact HCD’s Division of Financial Assistance NOFA (Notice of Funding Availability) Section at NOFAInquiries@hcd.ca.gov.

  2. Your HCD-funded project has a signed Standard Agreement, but permanent HCD loan is not closed.
    • Projects in this category are subject to the earlier version of the UMRs. However, these projects may submit a request to amend their already executed Standard Agreement (SA). Doing so will trigger the application of the new 2017 UMRs upon amending the SA and closing the HCD permanent loan. Projects that do not amend their already executed SA, will be subject to the earlier version of the UMRs.

    • Questions? Please contact your HCD loan closing officer in the Division of Financial Assistance Loan Closing Section.

  3. Your project’s permanent HCD loan has closed, and the Standard Agreement is unexpired.
    • Projects in this category are subject to the an earlier version of the UMRs, and will have to make a request to HCD (on a form provided by HCD) for an amendment to their unexpired, but executed Standard Agreement (SA). The new 2017 UMRs will take effect upon amending the SA and the closed permanent loan documents.
    • These projects also have the option of requesting a Restructuring Transaction as discussed in situation 4 below, which will also trigger the applicability of the new 2017 UMRs.

    • Questions? Please contact the Asset Management and Compliance Branch at AMCBranch@hcd.ca.gov or call your HCD fiscal representative.

  4. Your project’s permanent HCD loan has closed, and the Standard Agreement is expired.
    • Projects in this category are subject to an earlier version of the UMRs. However, for the 2017 UMRs to apply, these projects may make a request to HCD (on a form provided by HCD) for a Restructuring Transaction. A Restructuring Transaction as defined by UMR Section 8317(b) means one or more of the following:
      • Extending the HCD loan.
      • A new subordination of the HCD loan to a senior loan (either a commercial lender or a junior lender that has more funding in the deal than HCD that meets the requirement of UMR Section 8315(b)).
      • Adding tax credit equity to the project.
      • Performing a change of ownership wherein the Selling parties are not related to the Buyer parties (same Sponsor or GP is not allowed).
    • The new 2017 UMRs will take effect upon amending the Standard Agreement, if applicable, and/or recordation of amendments to the permanent loan documents.

    • Questions? Please contact HCD's Trasaction Unit at HCDTransactionUnit@hcd.ca.gov.

Please note: due to year-end demand for closing transactions, we are prioritizing requests for:

  1. Projects that are required by the Tax Credit Allocation Committee (TCAC) or California Debt Limit Allocation Committee (CDLAC) to close construction financing by December 31, 2017.

  2. Projects that need to close construction financing by December 31, 2017 due to proposed Federal tax reform.


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Receive Future UMR Updates by Email

To make sure you recieve HCD's emails, sign up now on HCD's ListServ (select the General Information and the Multifamily Housing Program check boxes). For all others, we will update this page as necessary.

Previous Regulations and Public Comments

Documents for second 15-day comment period (June 14 - June 29, 2017):

HCD is also incorporating, by reference, the federal regulations governing the Continuum of Care program (24 Code of Federal Regulations Part 578), as found on the HUD Exchange website .

Documents from the First 15-Day Comment Period (December 1 – December 16, 2016)

Documents From The Second 45 Day Comment Period (September 30 – November 14, 2016)

Documents sent out in the previous public comment period that ended on March 7, 2016:

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