These are current programs from HUD that can be used to reduce costs for affordable housing preservation.
HUD has set up this page as a resource to assist public sector housing agencies working at the state and local levels in forming or enhancing collaborative partnerships.
HUD offers federal mortgage loan insurance to finance improvements and additions to, and equipment for, multifamily rental housing that already carries HUD-insured or HUD-held mortgages. The sponsor will have a pre-application conference with the local HUD Multifamily Hub or Program Center to determine the feasibility of the proposed improvements before submitting a firm commitment application. The sponsor must then submit a firm commitment application to the local Multifamily Hub or Program Center through a HUD-approved lender for processing. If the project meets program requirements, the local Multifamily Hub or Program Center issues a commitment to the lender for mortgage insurance.
HUD§221(d)(3) is a mortgage insurance program to finance rental multi-family housing for moderate-income families including projects for the elderly and represent HUD’s major insurance program for the new construction or substantial rehabilitation for non-profits, public and cooperative mortgagors. Section 221(d)(4) mortgages are available to profit-motivated sponsors.
HUD § 207/223(f) is a federal mortgage insurance for the purchase or refinance of existing multifamily projects originally financed with or without federal mortgage insurance. HUD may insure a purchase of a property (with more than 5 units) that does not require substantial rehabilitation.