Affordable Properties and the HUD 221(d)(4) Loan Program
Affordable properties are those that have rents set at a rate that is considered affordable for low-to-moderate and low-income residents. These include properties constructed using tax subsidies (like the Low-Income Housing Tax Credit, or LIHTC) to provide below-market rents for low-income people, seniors and/or individuals with disabilities. Other affordable properties may take advantage of the HUD’s Section 8 program, which provides housing subsidizes to low-to-moderate and low-income residents.
Properties financed with HUD 221(d)(4) loans are eligible for both LIHTC and the Section 8 program, though the requirements of each program can vary. In general, affordable properties receive more favorable terms for HUD 221(d)(4) loans; as they have more relaxed LTV and DSCR requirements.
To learn more about HUD multifamily construction loans like the HUD 221(d)(4) loan, fill out the form below and a HUD lending expert will get in touch.