Multifamily Housing

Multifamily Housing

  • Year Started 1937
  • Administratering Agency U.S. Department of Housing and Urban Development (HUD)
  • Total Units Count Over 2 million
  • Total Assisted Units Count Over 2 million
  • # Persons / Houshold Served Over 4 million
  • Funding Agency U.S. Treasury Department
  • Population Targeted Low- and moderate-income families, the elderly, and people with disabilities
  • Client Group Type Low- and moderate-income families, the elderly, and people with disabilities
  • Housing Type Name Apartments, townhouses, duplexes
  • Last Updated April 25, 2023

If the resource information above is incorrect, please notify your local HUD field office.

The multifamily housing programs look after the overall management, development, direction, and administration of HUD Multifamily housing programs. The offices under the multifamily housing are mentioned as follows:

  • Deputy Assistant Secretary office 
  • Field support and operations offices 
  • Asset management and Portfolio oversight Offices 
  • Recapitalization office
  • Multifamily production office 

Let us learn about these offices at greater length in the sections mentioned below.

Office of Deputy Assistant Secretary

The office of the deputy assistant secretary is responsible for implementing the multifamily housing programs that are authorized by the National Housing Act. The main thing that the Deputy assistant secretary oversees is asset management, production, portfolio oversight, and recapitalization.

Its field operations consist of 5 Regional centers, 7 Regional Satellite offices, and asset management servicing offices worldwide. Some of the crucial activities of this office include:

  • Look after risk-sharing programs such as program compliance by housing finance agencies and government-sponsored enterprises.
  • Perform asset management & portfolio oversight of the multifamily housing projects that are developed under the Multifamily Mortgage Insurance.
  • It also preserves properties and checks affordability by restructuring rents and mortgages with the help of the programs.
  • Provides service to project-based rental subsidy programs that are operating in multifamily housing projects.

Office of Field Support and Operations

The Office of Field Support and Operations provides management direction, guidance, and technical support to Multifamily regional centers and other staff. In addition to this, it does the planning for allocating the resources essential to carry out the programs. Its headquarters are divided into two branches which are Planning & Improvement and Administration.

Services provided
  • It hires the staff for the open multifamily positions in field offices.
  • Look after the training, travel, and supply budgets.
  • Keeps note of multifamily operations and assists the field offices
  • Evaluate the performance goals for the multifamily
  • Make recommendations to the secretary for improvement.
  • Ensures the content is accurate and consistent post-reviewing.

Asset Management and Portfolio Oversight

Its main goal is to align the multifamily housing mission with that of the HUD. The best way forward to accomplish this is by developing supporting policies, controlling participation in the programs, and managing relationships with internal and external partners.

The core functions of the Multifamily Assets and Counterparty Oversight division are:

  • Analyze the performance of the insured and non-insured portfolio.
  • See the classification of risk for mortgages and project assets
  • Evaluation of new lender applications and their approval

Some other divisions of the Multifamily Office of Asset Management and Portfolio Oversight include assisted housing oversight, business relationships, support contracts, field asset management and program administration, and the Program administration office. 

You can get to know more about this office and its divisions at HUD.GOV

Office of Recapitalization

The Office of Recapitalization preserves the federally assisted housing units for present and future generations. It ensures long-term physical and financial viability by recapping structures and reviewing and implementing transactions.

In addition to this, the office also implements affordable housing initiatives leveraging transactional expertise. Some of its programs include mark-to-market, rental assistance demonstrations, green retrofit programs, section 202 capital advance NOFAs, and the list goes on.

Here are the descriptions of the programs implemented by this office: 

Rental assistance demonstration- Here, the proven financing tools are applied to at-risk public and assisted funding. It preserves the stock of affordable rental housing and promotes efficiency within the HUD programs.

Mark to market- This program preserves the affordability of low-income rental multifamily properties with a federally insured program. Its main motive is to reduce rents. 

Section 236 Preservation- It is a centralized processing model where the owners and purchasers will no longer submit the applications.

Pre-1974 section 202 direct loan preservation- There are two options this program provides so that they can preserve the affordability of these properties by entering into long-term contracts.

Office of Multifamily Production

It provides direction and oversight for FHA mortgage insurance loans and implements the multifamily accelerated processing. Its two divisions include:

Program Administration Division- This division oversees the development of all the policies and procedures concerning FHA-insured mortgages. In addition to this, it is also responsible for the issues related to debt and monitoring credit subsidies.

Technical Support Division- It is responsible for providing specialized expertise to multifamily offices. The staff provides technical support and monitors the use of technical discipline contracts.

Multifamily Housing Programs

Mortgage Insurance for Rental Housing: Section 207

Section 207 program insures mortgage loans to finance the construction of rental housing. Its purpose is to ensure the lenders against loss on mortgage defaults. Increasing the quality of supply and affordable rental housing for middle-income families is the main motive of this program.

If you want to learn about its eligible customers, borrowers, and other things concerning it, then visit this link: progsec207

Manufactured Home Parks: Section 207

The Section 207 program insures mortgage loans, to begin with, the construction of manufactured home parks. It promotes the creation of manufactured home communities by increasing affordable financing and mortgages. The home parks must consist of 5 or more spaces.

Know more about the eligible borrowers, customers, and its application by visiting this link: homepark207

Cooperative Units: Section 213

Section 213 ensures mortgage loans facilitate the construction of cooperative housing units. The non-profit cooperative housing corporations sponsor the development of housing projects to provide good quality housing. The eligible customers for this program are people with low incomes.

Get to know more about the Cooperative Units Section 213 in depth by going through the program at length: progsec213

Rental Housing for Urban Renewal and Concentrated Development Areas: Section 220

This section provides loans for multifamily housing projects in areas that need to be renewed and where the governments have initiated revitalization activities. This program provides good quality rental housing in Urban areas that need overall revitalization. The eligible borrowers include public bodies, and others meeting the HUD requirements.

Learn more about this program by going through the entire program:progsec220

Rental and Cooperative Housing: Section 221

Section 221 provides loans for constructing multifamily rental or cooperative housing to families having moderate-income, seniors, and disabled. This program also includes single-room occupancy projects. Its main purpose is to assist the private industry in the construction of housing for low-income families. The participants can also secure long-term loans by getting them financed by Government National Mortgage Association mortgage-backed securities. 

Figure out more about the program here: rentcoophsg221d3n4

Purchase of existing Multifamily Housing Projects- Section 207/223

Section 207 gives loans to purchase the existing multifamily rental housing. The finances for this are provided by conventional or FHA-insured mortgages. The long-term loan can be easily availed by the Government National Mortgage Association mortgage-backed securities. Consequently, the availability of funds for loans improves and permits favorable interest rates.

Know more about purchasing existing multifamily housing projects here: purchrefi223f

Rental housing for the seniors- Section 231

This program includes the provision of rental housing for both seniors and disabled people. The loans that are issued are used to finance the construction of rental housing for the elderly or handicapped individuals.

Supplemental Loan Insurance for Multifamily Rental Housing- Section 241

Financing the repairs, making additions, and improving the healthcare facilities are all looked at by Section 241. This will keep the project competitive, improve its economic life, and change obsolete equipment. The individuals, families, and owners of multifamily projects are eligible customers for this program.

Learn about its application, kind of assistance, and other things here: progsec241a

Risk-sharing Program- Section 542

Section 542 encourages the development of affordable housing. Earlier, it was a demonstration program meant for testing innovative mortgage insurance and reinsurance products. For increasing the affordable multifamily housing lending, the program enables HUD to provide other forms of federal credit enhancement. 

Know more about the same here: progsec542b

Frequently Asked Questions

Statutory and Regulatory Authority

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Statutes

Section 202, Housing Act of 1959

  • 12 U.S.C.A. § 1701q

Section 811, National Affordable Housing Act of 1990

  • 42 U.S.C.A § 8013

Select HUD Regulations

  • 24 C.F.R. Part 247 (evictions)
  • 24 C.F.R. Part 891 (supportive housing for the elderly and persons with disabilities)

For more information, search to contact your local HUD .