What are Rental Assistance Properties?
Rental Assistance Properties and the HUD 223(f) Loan Program Rental assistance properties are properties where low-income or very low-income tenants qualify for monthly rental assistance. HUD is involved with several rental assistance property programs, including low rent apartments, in which HUD
What are Replacement Reserves?
Replacement reserves consist of money earmarked for replacing building components and equipment which will wear out over the course of time. Replacement reserves are required for all properties funded with HUD multifamily loans , including those funded with HUD 223(f) loans .
What is Rental Assistance Demonstration?
Rental Assistance Demonstration and the HUD 223(f) Loan Program Rental assistance demonstration is a program which offers PHAs (public housing authorities) the power to “preserve and improve public housing properties” by addressing nationwide deferred maintenance backlogs. Certain HUD ‘legacy’
What are Recourse Loans?
Recourse Loans and the HUD 223(f) Loan Program If a loan is recourse and the borrower defaults (fails to repay the loan), the lender can seize both the collateral used to secure the loan and the borrower’s assets which are not used as collateral. Depending on how a loan is structured, this sometime
What are Non-Recourse Loans?
Non-recourse loans are typically loans secured by collateral (often real estate). However, if a borrower defaults, they cannot be held personally liable and lenders may not seize their personal property or garnish wages. Instead, the lender must accept a certain amount of loss.