Affordable Housing

Affordable Housing

Property Types:

Broadly Affordable

  • Have at least 90% of its units covered by a Section 8 Project Based Rental Assistance (PBRA) contract or other federal rental assistance program contract serving very low income residents, with a remaining term of at least 15 years; or
  • Have at least 90% of its units covered by an affordability use restriction under the Low Income Housing Tax Credit (“LIHTC”) program or similar state or locally sponsored program, with achievable and underwritten tax credit rents at least 10% below comparable market rents, and with a recorded regulatory agreement in effect for at least 15 years after final endorsement and monitored by a public entity.

Affordable

  • Project has between 10% and 90% of its units covered by an affordability use restriction under the LIHTC program or similar state or locally sponsored program, with rents sized at no greater than 30% of the income eligible for occupancy under the LIHTC program, with a recorded regulatory agreement in effect for at least 15 years after final endorsement.

Affordable Housing Programs

New Construction or Substantial Rehabilitation HUD Section 221(d)(4)
This program provides non-recourse, assumable construction and permanent financing for affordable/broadly affordable, as defined above, new apartments or substantial rehabilitation of existing apartments.

Acquisition or Refinance Loan HUD Section 223(f)
This loan program provides non-recourse, assumable financing for the purchase or refinance of existing affordable, as defined above, multifamily or age-restricted properties.

Qualified Properties
Qualified properties are existing multifamily properties with at least 5 residential units. Properties with certificates of occupancy issued 3+ years prior to application must document a pattern of stable occupancy at not less than 85% and stable operating results. Properties with certificates of occupancy issued less than 3 years prior to application must evidence a minimum DSCR consistent with the programmatic requirements for a period of three consecutive months prior to loan endorsement.

Refinance of Existing FHA Insured Loan HUD Section 223(a)(7)
This FHA program allows borrowers with existing FHA insured loans on affordable properties to lower the interest rate, extend the term, fund project repairs and evaluate the replacement reserve. For-profit and not-for-profit borrowers may apply for FHA mortgage insurance under this program.

RAD
FHA multifamily mortgage insurance is an important source of debt financing for projects participating in RAD. Transactions include the acquisition, refinance and rehabilitation of PBRA or PBV-assisted projects. HUD is making certain allowances for processing RAD transactions that utilize FHA insured debt to accommodate and expedite these transactions.

Section 221(d)(4) is for the refinance of existing FHA-Insured mortgages for market rate and/or affordable multifamily rental properties.

DOWNLOAD TERM SHEET

This loan program provides non-recourse, assumable financing for the new construction or substantial rehabilitation of affordable/broadly affordable, mixed-use housing projects located in urban renewal areas or Opportunity Zones.

DOWNLOAD TERM SHEET

This program provides non-recourse, assumable financing for construction and substantial rehabilitation of affordable/broadly affordable rental housing for elderly persons (aged 62 or older) and/or persons with disabilities. A project must consist of eight (8) or more new or substantially rehabilitated units designed for occupancy by elderly persons and may include family units for occupancy for persons who qualify as disabled.

DOWNLOAD TERM SHEET

This is a supplemental loan program providing financing for improvements or additions to projects which have an FHA-insured first mortgage.

DOWNLOAD TERM SHEET

Section 223(f) is for the refinance or acquisition of existing broadly affordable or affordable multifamily rental properties.

DOWNLOAD TERM SHEET

Section 223(a)(7) is for the refinance of Existing FHA-Insured Mortgages for Market Rate and/or Affordable multifamily rental properties.

DOWNLOAD TERM SHEET

Contact Us

Contact us

Meet Our Team

MEET OUR TEAM