HUD Affordable Rental Housing Programs

Federal Housing Administration (FHA) Mortgage Insurance Origination

Section 207 - Rental Housing
Section 207 Program insures mortgage loans to finance the construction or rehabilitation of a broad range of rental housing. Section 207 mortgage insurance, although still authorized, is no longer used for new construction and substantial rehabilitation. It is however, the primary insurance vehicle for the Section 223(f) refinancing program. Multifamily new construction and substantial rehabilitation projects are currently insured under the Section 221(d)(3) and Section 221(d)(4) programs

Section 207 - Mortgage Insurance for Manufactured Home Parks
Section 207 Program insures mortgage loans to facilitate the construction or substantial rehabilitation of multifamily manufactured home parks.

Section 220 - Rental Housing for Urban Renewal and Concentrated Development Areas
Section 220 insures loans for multifamily housing projects in urban renewal areas, code enforcement areas, and other areas where local governments have undertaken designated revitalization activities.

Section 221(d)(3) and (4) - Rental and Cooperative Housing
Section 221(d)(3) and 221(d)(4) insures mortgage loans to facilitate the new constructiofn or substantial rehabilitation of multifamily rental or cooperative housing for moderate-income families, elderly, and the handicapped. Single Room Occupancy (SRO) projects may also be insured under this section.

Section 221(d)(3) and (4)  - Single Room Occupancy (SRO) Projects
Section 221(d)(3) and 221(d)(4) program insures mortgage loans for multifamily properties consisting of single-room occupancy (SRO) apartments. There are no Federal rental subsidies involved with this SRO program. It is aimed at those tenants who have a source of income but are priced out of the rental apartment market. SRO projects generally require assistance from local governing bodies or charitable organizations in order to reduce the rents to affordable levels. Although SRO housing is intended for very low-income persons, the program does not impose income limits for admission.

Section 223(d) - Two-Year Operating Loss Loans
Section 223(d) insures two-year operating loss loans that covers operating losses during the first 2 years after completion (or any other 2-year period within the first 10 years after completion) of multifamily projects with a HUD-insured first mortgage.

Section 207 / 223(f) - Purchase or Refinancing of Existing Multifamily Housing Projects
Section 207/223(f) insures mortgage loans to facilitate the purchase or refinancing of existing multifamily rental housing. These projects may have been financed originally with conventional or FHA insured mortgages. Properties requiring substantial rehabilitation are not eligible for mortgage insurance under this program. HUD permits the completion of non-critical repairs after endorsement for mortgage insurance.

Section 231 - Rental Housing for the Elderly
The Section 231 insures mortgage loans to facilitate the construction and substantial rehabilitation of multifamily rental housing for elderly persons (62 or older) and/or persons with disabilities.

Section 232 / 223(f) - Nursing Homes, Board and Care and Assisted-Living Facilities
Section 232 insures mortgage loans to facilitate the construction and substantial rehabilitation of nursing homes, intermediate care facilities, board and care homes, and assisted-living facilities. Section 232/223(f) allows for the purchase or refinancing with or without repairs of existing projects not requiring substantial rehabilitation.

Section 241(a) - Supplemental Loan Insurance for Multifamily Rental Housing
Section 241(a) insures mortgage loans to finance repairs, additions, and improvements to multifamily rental housing and health care facilities with FHA insured first mortgages or HUD-held mortgages.

Section 542(b) - Qualified Participating Entities Risk-Sharing Program
The Department of Housing and Urban Development (HUD) provides reinsurance on multifamily housing projects whose mortgage loans are originated, underwritten, serviced, and disposed of by Qualified Participating Entities (QPEs) and/or their approved lenders. Section 542(b) encourages the development and preservation of affordable housing. The program was developed as a demonstration program to test innovative mortgage insurance and reinsurance products to provide affordable multifamily housing through a partnership between the QPEs and HUD. HUD's mortgage credit enhancements are used to support the underwriting and production strengths of Fannie Mae, Freddie Mac, and other qualified Federal, State, and local public financial and housing institutions.

A related program is the Housing Finance Agency Risk-Sharing Program (Section 542(c)).

Section 542(c) - Housing Finance Agency Risk-Sharing Program
Section 542(c) enables the U.S. Department of Housing and Urban Development (HUD) and State and local housing finance agencies (HFAs) to provide new risk-sharing arrangements to help those agencies provide more insurance and credit for multifamily loans.

A related program is the Qualified Participating Entities (QPE) Risk Sharing Program:
Section 542(b).

Special Needs

Section 202 Supportive Housing for Elderly
HUD provides capital advances to finance the construction, rehabilitation or acquisition with or without rehabilitation of structures that will serve as supportive housing for very low-income elderly persons, including the frail elderly, and provides rent subsidies for the projects to help make them affordable.

Demonstration Program for Elderly Housing for Intergenerational Families
This funding opportunity is available to private nonprofit owners of Section 202 Supportive Housing for the Elderly properties to provide assistance for intergenerational dwelling units for intergenerational families.

Section 811 Supportive Housing for Persons with Disabilities
HUD provides funding to nonprofit organizations to develop rental housing with the availability of supportive services for very low-income adults with disabilities, and provides rent subsidies for the projects to help make them affordable.

Assisted-Living Conversion Program (ALCP)
To provide private nonprofit owners of eligible developments with a grant to convert some or all of the dwelling units in the project into an Assisted Living Facility (ALF) for the frail elderly. The facility must be licensed and regulated by the State (or if there is no State law providing such licensing and regulation, by the municipality or other subdivision in which the facility is located).

Emergency Capital Repair Program (ECRP)
To provide private nonprofit owners of eligible developments designated for occupancy by elderly tenants with grants to make emergency capital repairs. The capital repair needs must relate to items that present an immediate threat to the health, safety, and quality of life of the tenants.

Supportive Services

Congregate Housing Services Program (CHSP)
The Congregate Housing Services Program offers grants to States, units of general local government, public housing authorities (PHAs), tribally designated housing entities (TDHES), and local nonprofit housing sponsors to provide meals and other supportive services needed by frail elderly residents and residents with disabilities in federally subsidized housing. It is a project-based-rather than a tenant-based-program.

Neighborhood Networks
Neighborhood Networks (NN) is a program that encourages property owners, managers, and residents of HUD-insured and -assisted housing to develop computer centers where residents can learn job skills and become more economically self-reliant.

Multifamily Housing Service Coordinators
Service Coordinators assist elderly individuals and persons with disabilities, living in federally-assisted multifamily housing, to obtain needed supportive services from community agencies. Services are intended to prevent premature and inappropriate institutionalization.

Housing Choice Vouchers

Conversion Vouchers (housing conversions)
Provides replacement housing as a result of the demolition, disposition, or mandatory conversion of public housing units. These vouchers are also used to relocate families living in these projects. Conversion vouchers are also provided to both families affected by an owner's decision to opt-out of a project based Section 8 contract and families affected by an owner's decision to prepay a HUD issued mortgage.

Family Unification Vouchers
Enables families to rent affordable housing for whom the lack of affordable housing is a primary factor in, (1)  the separation of children from their families or (2) in the prevention of reunifying the children with their families.

Homeownership Vouchers
Enables very low income families to purchase a home.

Project Based Vouchers
Encourages property owners to construct, rehabilitate, or make available existing housing units to lease to very low income families.

Tenant Based Vouchers
Enables very low income families to lease safe, decent, and affordable privately owned and rental housing.

HUD-VASH Vouchers
Provides a combination of HUD rental assistance and VA case management services for very-low income homeless veterans.

Vouchers for People with Disabilities
Enables very low income families with disabilities to lease affordable private housing.

Welfare-to-Work Vouchers
Assists families who make the transition from welfare to economic self-sufficiency.

Witness Relocation Vouchers
Provides rental assistance for the relocation of witnesses in connection with efforts to combat violent crimes that occur in and around public, Indian, and other HUD-assisted housing.

Housing Choice Voucher Related Programs

Family Self-sufficiency
Promotes the development of local strategies to enable families in the housing choice voucher program to achieve economic independence and self-sufficiency.

Section Eight Management Assessment Program (SEMAP)
Measures the performance of local PHAs that administer the housing choice voucher program.