Press Release
☷HUD and Treasury Extend Initiative to Finance the Construction and Rehabilitation of Affordable Rental Homes for Low Income Families
U.S. Department of Housing and Urban Development ( By Press Release office)
Mar 02,2024
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The government is extending a program that will create or fix up over 38 , 000 new rental homes for low - income families , seniors , and people with disabilities over the next decade . The U . S . Department of Housing and Urban Development ( HUD ) and the U . S . Department of the Treasury are teaming up to offer the Section 542 ( c ) Housing Finance Agency Risk - Sharing Initiative , which provides affordable capital to state and local housing finance agencies . This program has already provided almost $2 billion in financing for nearly 12 , 000 affordable rental homes since it was restarted in 2021 . The extension will allow even more agencies to participate and is expected to create or preserve around 38 , 000 affordable rental homes in the next ten years . The Section 542 ( c ) Housing Finance Agency Risk - Sharing Initiative lets eligible Housing Finance Agencies ( HFAs ) make deals with HUD . This means that FHA will insure multifamily mortgages that HFAs give out to finance the construction or renovation of affordable housing properties . Under these deals , HUD and the HFA will both share the risk of any losses if the mortgage defaults . With the FHA insurance credit enhancement , the Federal Financing Bank will buy the mortgage , which means that the HFA can get their money back and invest in other things in their communities .
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