HUD’s Office of Multifamily Housing Programs published a Notice in the Federal Register to solicit comments about a proposal for an initiative which will help facilitate financing of small, multifamily buildings. HUD’s intent is to implement the Small Multifamily Building Risk Share Initiative directed to facilitating the financing of small multifamily properties. Small properties are home to more than 30 percent of the nation’s renters and tend to offer housing at more affordable rents than do larger properties.
The Initiative is a proposed extension of FHA’s existing Multifamily Risk Share program authorized under Section 542(b) of the National Housing Act and would allow 50/50 risk-sharing with CDFI’s, mission motivated lenders or lending consortia, who originate and service mortgages on small properties. Eligible small properties would include those with 5-49 units, loan balances under $3 million, and contain an affordable component
HUD is seeking public comments about the proposed requirements, the application process, participant eligibility, and program design features. Interested parties are able to submit comments until Friday, January 3, 2014 to
The agency will also host a conference call on Wednesday, November 13, 2013 at 3:15pm – 4:15pm (EST) to discuss the proposal and answer questions. The dial in information is as follows:
Phone: (877) 873-8017; Access code 6722007