Program 236

Section property owners and purchasers will now have one central portal through which to provide project information that is currently collected under established Paperwork Reduction Act PRA approval numbers. Owners and purchasers who choose not to use the Consolidated Application have the alternative option of submitting various required documents to HUD by e-mail, and as Portable Document Format.

PDF files, to the following address: Preservation hud. In either case, Recap will only receive electronic submissions of Section applications. After an applicant completes the Consolidated Application, it will indicate which Exhibits the applicant must provide in order for HUD to evaluate requested individual transaction. HUD provides templates for each Exhibit, specifying the information to be provided and providing references to Notices and other relevant guidance.

As noted previously, all such applications will be sent to Recap as of July 1, Please monitor Multifamily Preservation web page for information about and access to the Consolidated Application package. NOTE: Applications that were sent to any Multifamily Hub, and which are under review as of July 1, , will remain with the applicable Hub for completion. Recap will only process applications that are new submissions as of July 1, Skip to main content. Office of Hospital Facilities Why Choose ?

Overview of Lean Why Choose ? HUD will determine which requirements apply to a given prepayment application: the more restrictive "Section " requirements originally applicable to non-profit developers or the less restrictive "Section " requirements originally applicable to most for-profit developers. Excess income is simply the amount of income collected that is greater than the Basic Rent gross rent potential. The Section 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.

Owners will generally request Decoupling approval when several years of IRP still remain on the property and they want to use the remaining subsidy to offset debt service on a new loan; in many instances owners do not "re-couple" as the remaining amount of IRP is too small to materially offset new debt service. There were two main types of Flex loans: 1 Operating Assistance Program, these are non-amortizing and 2 Capital Improvement Loan Program, these are typically amortizing loans that must be paid off when the Section mortgage matures or is prepaid; however there was considerable variability in the actual terms of Flex loans.

All Section projects have a minimum rent and a maximum rent standard for their respective units. Rents are calculated by the Owner and approved by HUD based on overall property operation costs. Nonprofit Owners may request HUD approval to receive equity in cash or otherwise retain proceeds of a sale. Historically, Nonprofit Owners were not allowed to: 1 receive developer fees, 2 receive distributions from cash flow, or 3 receive sales proceeds. However, recently HUD has instituted policies allowing these types of compensation for Nonprofit Owners in certain circumstances when the transaction preserves or improves affordability and meets other HUD requirements.

In exchange for receiving incentives, the Owner agreed not to prepay the underlying loan and to accept a long term use agreement the longer of 50 years or the remaining useful life of the property.