This month, HUD issued a notice for a streamlined FHA risk share initiative designed to boost financing for small multifamily affordable properties. The Small Multifamily Building Risk Share Initiative, part of FHA’s 542(b) Risk Share program, is the first Federal resource intended to provide liquidity for affordable rental homes in multifamily properties with 5-49 units.
The pilot planned for next year intends to improve access to longer term financing for rehabilitation and refinancing of small rental properties by making the loans eligible for HUD mortgage insurance. To read the full program notice, visit federalregister.gov.
The Preservation Compact has identified the lack of financing for small multifamily properties as a major impediment to the preservation of affordable rental housing. This topic was discussed at The Preservation Compact conference in July. To read more or watch the conference panel session, visit preservationcompact.org/conference.