Are HUD 221(d)(4) Loans Available for Age-Restricted Communities?

HUD 221(d)(4) Loans for Age-Restricted Communities

If you're considering getting an FHA multifamily construction loan to build an age-restricted or senior community, it's important to understand what this type of loan does and does not allow. First, let's define "senior community"in the eyes of FHA/HUD. According to HUD, a senior community is any community for individuals 62 years and older. 

HUD Multifamily Construction Loans Cannot Be Used for Assisted Living 

The main limitation of HUD 221(d)(4) loans for senior living projects is that they must not be assisted living. This means that communal dining facilities are not allowed. So, for instance these loans do not fund traditional nursing homes. Instead, they only fund "independent living facilities," where seniors live independently in apartments, generally without any supervision from the project itself. A meal service may or may not be offered, or, it may be offered by an independently contracted company. 

Instead of using the 221(d)(4) loan, some developers decide to use the Section 231 program to help fund senior developments. However, this program has become much less popular in recent years in favor of FHA 221(d)(4) financing.  


To learn more about HUD 221(d)(4) loans for senior communities, fill out the form below and a HUD loan advisor will get in touch.