What is HUD?
The U.S. Department of Housing and Urban Development, otherwise known as HUD, is a U.S. government agency intended to make it easier for Americans to find housing at an affordable rate.
In 1965 the Department of Housing and Urban Development Act of 1965 created HUD as a Cabinet-level agency. However, HUD’s roots lie in two acts from the 1930s. The National Housing Act of 1934 created the FHA (Federal Housing Administration). A few years later, the U.S. Housing Act of 1937 was created to offer subsidies to local public housing agencies for low-income housing improvements. Finally, in 1965, the Department of Housing and Urban Development Act rolled several federal agencies into one — HUD.
Since then, HUD has played a huge role in FHA's multifamily financing strategy. HUD works with them to insure FHA multifamily construction loans in order to eliminate the need for borrowers to take on more expensive, privately insured mortgages. This helps create a larger amount of affordable housing around the U.S.