Search results
Results from the Tech24 Deals Content Network
Section 236 Preservation. Overview. Effective July 1, 2013, Multifamily Housing will launch a centralized processing model for the majority of Section 236 preservation activity through the Office of Recapitalization (Recap) in HUD Headquarters.
The objective of HUD’s Section 236 Preservation initiative is to preserve the affordability of rental housing units originally developed through the Section 236 mortgage program.
The Section 236 program, which was established by the Housing and Urban Development Act of 1968, combined Federal mortgage insurance with interest reduction payments to the mortgagee for the production of low-cost rental housing.
The Section 236 program includes an "excess income" requirement in which some or all excess income is returned to HUD by the Owner on a monthly basis unless HUD authorizes the retention of excess income.
This resources and tools list provides information about where to find detailed guidance on how to preserve and recapitalize a Section 236 project. The information applies to each of the following types of Section 236 mortgages: FHA-insured. HUD-held loans.
Section 236 Rent Formulas: All Section 236 Projects have a minimum rent (Basic Rent) and a maximum rent (Market Rent). Section 236 with NO Utility Allowance; the higher of: • 30% of the family’s monthly adjusted income • Basic Rent • But not more than Market Rent Section 236 WITH Utility Allowance; the highest of:
Owners of Section 236 properties play a critical role in providing afordable housing for low-income families and individuals across the nation. As these mortgages mature, thousands of low-income elderly, special needs residents, and other households are at risk of losing afordable housing.