New HUD Guidance Opens Build-to-Rent Financing: Detached and Duplex Rental Communities Eligible for Multifamily Mortgage Insurance
NEW YORK — Commercial real estate financing platform Bravo Capital announced on October 15 via PR Newswire that it is now accepting financing requests for build-to-rent (BTR) communities, following the U.S. Department of Housing and Urban Development's Mortgagee Letter 2026-12, 'Build-to-Rent Developments Underwriting Eligibility.' Effective immediately, HUD will accept mortgage-insurance applications for multifamily rental properties made up of detached single-family homes, duplexes or triplexes.
Under the new guidance, BTR communities are treated on the same terms as traditional multifamily developments, subject to requirements including: eligible programs are Section 221(d)(4) for new construction and Section 223(f) for acquisition or refinancing; Section 223(f) is limited to recently constructed communities whose certificate of occupancy was issued less than three years before the HUD application; and communities must sit on a cohesive, contiguous site, be developed as long-term rental housing, operate as one multifamily rental property and be professionally managed to market multifamily standards.
Bravo Capital said BTR sponsors have until now relied largely on construction loans and short-term bridge debt, and the guidance gives them access to HUD's long-term, fixed-rate, non-recourse financing: developers can build with 221(d)(4), and owners of recently completed communities can use 223(f) as a permanent takeout. Chief Executive Aaron Krawitz said build-to-rent has become a meaningful part of the rental market and the guidance puts such communities on the same footing as traditional multifamily.
Headquartered at 780 Third Avenue in New York, Bravo Capital is an approved HUD/FHA MAP and LEAN lender; the company says it and its affiliates have closed more than $2.5 billion in financing nationwide since 2021.
Published by GSM · USA (original Chinese edition)
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