Section 8/Section 236

Check out our new training, Preparing a Budget-Based Rent Increase scheduled for September 12, 2017

HUD’s Office of Recapitalization  is responsible for the preservation of federally assisted affordable housing.  They have several active initiatives that provide owners and buyers incentives to keep their multifamily projects in the affordable housing inventory

Section 236 Projects

The majority of projects with mortgages insured through FHA’s Section 236 program were constructed or renovated during the late 1960s through the mid 1970s.  Over the decades, owners have had limited resources available for renovation leaving many of these projects in need of recapitalization and significant rent increases.  Some owners, both for-profit and non-profit are electing to pre-pay their mortgages and refinance using LIHTC and other resources including tax-exempt bonds and new FHA mortgage insurance.  Some are choosing to decouple their mortgage thereby refinancing with the federal government continuing to make their 236 interest reduction payments (IRP) as part of a plan to keep the project affordable.  Owners with expiring RAP and Rent Supplement subsidy contracts are converting to long-term project-based Section 8 assistance through the RAD program.  We have provided you the following links and resources to help you develop your plan for your 236 project.

  • Email rad2@hud.gov regarding converting a RAP or Rent Supplement contract

Section 8 Contract Renewals

A large percentage of HUD’s multifamily projects are either partially or wholly assisted through a project-based Section 8 contract.  Owners who opt to maintain their project’s affordability typically elect to renew their subsidy contract so they can provide rental assistance for their target market.  An owner must understand exactly how they can renew their contract based on their project’s specific characteristics.  We have provided the following resources to help you through the process.

Check out our new training, Preparing a Budget-Based Rent Increase scheduled for September 12, 2017

Read about our seminars and webinars on the Section 236 and Section 8 programs at 236/8 Training.

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