Sign Up For Novogradac Industry Alert Emails

HUD Announces Risk-Sharing Initiative

Thursday, July 16, 2015 - 11:45AM

The U.S. Department of Housing and Urban Development (HUD) today issued a final notice inviting applications for its Small Buildings Risk Sharing Initiative. HUD says the initiative allows the agency to target its products to an important and underserved part of the rental market and that partnering with community development financial institutions (CDFIs) and other lenders who have on-the-ground relationships with small building owners in their communities will support affordable housing production and preservation. Under the program, qualified participating entities (QPEs) will enter a 50 percent risk-sharing arrangement with HUD to underwrite, originate and service loans for HUD multifamily mortgage insurance for project acquisition, refinancing, rehabilitation and/or equity take outs. New construction loans are excluded. Loan amounts are limited to $3 million or $5 million for those in areas designated by HUD as high-cost areas.

Tune in to the July 21 Tax Credit Tuesday podcast for more information.

Learn more about Novogradac's expertise and many services