You want to start a new project; however, the current economic situation is making you rethink which direction to go. Financing could be a solution, but which type? Today we talk about HUD financing.
When you hear of a ‘HUD PROJECT,’ this typically means the HUD Section 221 (D4) Program is being used.
HUD is an acronym for the Department of Housing and Urban Development, a government agency established in 1965. It is responsible for national policy and programs that address America’s housing needs, the improvement and development of communities, and the enforcement of fair housing laws. When people hear the word HUD, they immediately think “low income” or “Section 8” housing. However, this is not necessarily the case; in fact, HUD financing can even be used for market-rate apartments.
HUD loans are excellent for all kinds of properties, including market-rate apartment buildings; they offer additional benefits for affordable properties and are great candidates for Low-Income Housing Tax Credits (LIHTCs), as well as housing located within Opportunity Zones.
This program is simply a FINANCING VEHICLE for a project.
Is HUD Financing a Good Option for Me?
HUD involvement in a project has significant design implications.
- Drawings produced for HUD projects must include the HUD’s method for determining square footage calculations and respond to additional requirements, including HUD’s Minimum Property Standards for Housing.
Minimum Property Standards establish specific minimum standards for buildings constructed under HUD housing programs. This includes new single-family homes, multi-family housing, and health care-type facilities.
Developers need a design partner to assist with HUD projects! We are currently working on several HUD projects, and as consultants, we can help you understand if HUD financing is a good option for your project.
Check out STONEPILEllc—The Online Construction College, the only institution of higher education dedicated 100% to construction innovation and education.
Executive Vice President