Multifamily Rental Housing for Moderate-Income
Families (Section 221(d)(3) and (4))
Mortgage insurance to finance rental or
cooperative multifamily housing for moderate-income households,
including projects designated for the elderly. Single Room
Occupancy (SRO) projects are also eligible for mortgage insurance.
Section 221(d)(3) and (4) are HUD’s major insurance programs for
new construction or substantially rehabilitated multifamily rental
housing.
Nature of Program:
The Department insures mortgages made by
private lending institutions to help finance construction or
substantial rehabilitation of multifamily (five or more units)
rental or cooperative housing for moderate-income or displaced
families. Projects in both cases may consist of detached,
semi-detached, row, walk-up, or elevator structures. SRO projects
may consist of units that do not contain a complete kitchen or
bath.
Currently, the principal difference
between the programs is that HUD may insure up to 100 percent of
replacement cost in the case of new construction under Section
221(d)(3) for public, nonprofit and cooperative mortgagors, but
only up to 90 percent under Section 221(d)(4), irrespective of the
type of mortgagor.
Applicant Eligibility:Section
221(d)(3) is available to public, nonprofit, and cooperative
mortgagors. Section 221(d)(4) mortgages are available to
profit-motivated sponsors.
Legal Authority:
Section 221 of the National Housing Act (12
U.S.C. 17151). Regulations are at 24 CFR part 200, subpart A, and
part 221, subparts C and D.
Administering Office:
Assistant Secretary for Housing-Federal
Housing Commissioner, U.S. Department of Housing and Urban
Development, Washington, DC 20410-8000.
Information Sources:
Administering office; HUD Multifamily Hubs
and ProgramCenters.
On the Web:
www.hud.gov/offices/hsg/mfh/progdesc/rentcoophsg221d3n4.cfm
Current Status:
Active.
Source: Programs of HUD (2006)
For more information on how the Danter Company can assist you
with the due diligence necessary for a loan application through
this program, please contact Ken Danter at (614) 221-9096
or at via email at
kend@danter.com
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