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The Opportunity Zones Program and HUD Multifamily Loans

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The Opportunity Zones Program and HUD Multifamily Loans

The Opportunity Zones Program offers a groundbreaking federal tax incentive designed to encourage development in some of the nation’s most economically distressed areas. Created as a result of the Tax Cuts and Jobs Act of 2017, the Opportunity Zones Program, or O-Zones Program, permits borrowers to defer paying their capital gains taxes until 2027, provided that they invest in an Opportunity Fund, a special financial vehicle which must invest at least 90% of its assets in a Qualified Opportunity Zone. With their long terms, high leverages, and low interest rates, HUD multifamily loans are ideal for developing multifamily properties in Opportunity Zones.

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What is the Rental Assistance Demonstration (RAD) Program?

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What is the Rental Assistance Demonstration (RAD) Program?

The Rental Assistance Demonstration (RAD) Program is a federal housing program administered by HUD, which was enacted in 2012 as a part of the Consolidated and Further Continuing Appropriations Act. The RAD program allows properties using HUD legacy programs to convert their properties to HUD Section 8 housing, which is much better understood, and more easily permits the use of private capital to fund rehabilitation work.

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The Low-Income Housing Tax Credit (LIHTC) Program and HUD Multifamily Loans

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The Low-Income Housing Tax Credit (LIHTC) Program and HUD Multifamily Loans

The Low-Income Housing Tax Credit (LIHTC) program is a federal government tax credit, that, since 1986, has helped facilitate the construction and rehabilitation of approximately 2.4 million affordable housing units througout the U.S. Unlike tax deductions, which create a reduction in taxable income, tax credits provide a dollar-for-dollar reduction in an investor’s tax liability, which can be an incredibly attractive proposition.

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What are the Benefits of HUD 223(f) Loans?

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What are the Benefits of HUD 223(f) Loans?

HUD 223(f) loans offer some of the best terms in the industry for the acquisition and refinancing of multifamily and apartment properties. These loans are non-recourse, offer high leverage, low interest rates, and lenient DSCR requirements. While HUD 223(f) loans have many benefits, they are often misunderstood.

What are the Benefits of HUD 221(d)(4) Loans?

What are the Benefits of HUD 221(d)(4) Loans?

Some multifamily developers and investors shy away from HUD loans. Many feel there is a stigma attached to them. Others misunderstand the products, believing they are only for low-income and affordable housing projects. However, these things are not true. In comparison, HUD multifamily loans have several benefits which make them some of the best products in the business:

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How to Get the Lowest Rates and Longest Terms for Multifamily Financing

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How to Get the Lowest Rates and Longest Terms for Multifamily Financing

Many people aren’t aware that FHA-insured financing offers some of the industry’s longest terms. For example, the HUD 221(d)(4) program is a fixed-rate construction loan. This product is fixed for 40 years plus up to 3 years for construction (43 years total). And HUD 223(f) loans are fully amortizing for as long as 35 years (as long as the term and amortization isn’t more than 75% of the property's remaining economic life).

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What’s the Difference Between HUD and the FHA?

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What’s the Difference Between HUD and the FHA?

Although HUD (the US Department of Housing and Urban Development) and the FHA (the Federal Housing Administration) were founded separately, they share many things. For example, HUD oversees residential and multifamily insurance programs. In contrast, the FHA primarily deals with residential lending for primary residences.

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Are HUD/FHA Loan Programs Only for Affordable Housing?

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Are HUD/FHA Loan Programs Only for Affordable Housing?

One of the most common misconceptions about HUD is that it focuses only on low-income, Section 8, and affordable housing. In reality, the HUD 223(f) program is available for all types of market-rate multifamily properties.

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What’s the Difference Between HUD 223(f) and HUD 221(d)(4) Loans?

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What’s the Difference Between HUD 223(f) and HUD 221(d)(4) Loans?

Some people wonder what the difference is between the HUD 223(f) and HUD 221(d)(4) programs. To help you out, we’ve provided a side-by-side comparison of each. Click on the post to find out more!

 
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Multifamily.Loans, Inc. is a private company owned by Janover Ventures LLC and not a government agency. We are a boutique capital markets advisory firm driven by the ideology that HUD-insured financing for apartment buildings and multifamily developments should be simplified, streamlined, and available to all apartment developers and investors. Call (877) 585-8645 today or email us at hello@multifamily.loans to learn more about how our team can help finance your next multifamily investment.

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