Section 221(d)(4) (HUD) is a Federal program which insures long-term mortgage loans for rental multi-family projects. The loans may be paid back over forty years rather than the traditional thirty. The HUD program helps to facilitate the new construction or rehabilitation of multi-family housing for moderate-income, single room occupancy, elderly, and disabled populations. For HUD to back a project, all the customary project requirements are necessary, in addition to HUD specific requirements such as architectural merits, community needs, and resources are taken into consideration as well.
Due to the long names and acronyms that characteristically come with governmental programs, those involved typically refer to the process as HUD or 221 D4. HUD can be a tricky program to maneuver. There are numerous hoops to jump through during the process that can add upfront time and cost to a project. However, the added values to the owner are substantial, below market interest rates and extended financing to only name a couple. Luckily, Firms who have previously gone through the process are ‘HUD Approved’. If you are looking to secure a HUD insured mortgage, it is best and required to work with a designer that has had prior experience navigating the program.
Pivotal has designed projects greenlit and funded by HUD and has what the program refers to as ‘architectural merit.’ Pivotal’s HUD backed projects include: Aspen Hills (180 units) in Commerce City - currently under construction and 54 West Rowhomes (26 units) in Lakewood – pre-application, second stage of HUD consideration.
Aspen Hills - Commerce City, CO