HUD Mortgage Programs

HUD’s multifamily mortgage programs remain an important source of affordability. Two such programs include the Section 236 program, and the Section 221(d)(3) Below Market Interest Rate (BMIR) program. In these programs, HUD provided mortgage insurance and an interest rate subsidy to private housing providers in exchange for these owners providing affordable units to low-income families by restricting rents and occupancy. While no new units are being created under these programs, thousands of these units still exist. Rents in these properties are budget-based, meaning that rent is determined by the operating cost at the property. Some tenants may also receive rental assistance, whereby their contribution is based upon their income (usually 30 percent of adjusted income).


Statutory and Regulatory Authority

  • Statutes
    • Section 236 of the National Housing Act
      • 12 U.S.C.A. §§ 1715z-1
    • Section 221(d)(3) of the National Housing Act
      • 12 U.S.C.A. §§ 1715l(d)(3) & (d)(5)
  • Regulations
    • 24 C.F.R. Part 221 (Section 221(d)(3)); 24 C.F.R. Part 236 (Section 236)
    • 24 C.F.R Part 247 (evictions)