Finance

For years, our country has been faced with a housing affordability crisis that has seemed to worsen each year. In fact, as of the end of last year, nearly 50 percent of all renters are considered cost-burdened by their monthly rent payments. While the low-income tax credit (LIHTC) program has historically been very successful in creating affordable housing across the country, there are certain constraints that limit the total number of units that can be created each year. However, recent changes arising from the One Big Beautiful Bill Act (OBBBA) …

The U.S. Department of Housing and Urban Development (HUD), has long provided a great option for multifamily borrowers: long-term, fixed-rate mortgage insurance programs such as the 221(d)(4) program for new construction and substantial rehabilitation and the 223(f) program for acquisition or refinancing of existing assets, both of which offer up to 40-year amortization, non-recourse debt and competitive interest rates. HUD loans have traditionally been thought of as protecting borrowers from high-interest-rate risk and other volatility experienced in conventional real estate finance markets. Yet even with the stability of HUD-insured loans, …