HUD Opens FHA Financing to Build to Rent Communities Under Two Multifamily Mortgage Insurance Programs

The U.S. Department of Housing and Urban Development (HUD) announced on October 14 that the Federal Housing Administration (FHA) is updating its policy to allow Build to Rent communities to qualify for FHA-insured financing under two of its multifamily mortgage insurance programs. The update took effect immediately, and HUD said it makes it easier to finance new rental homes and helps increase the supply of rental housing.

Build to Rent communities are multifamily rental properties consisting of single-family homes, duplexes or triplexes, including both site-built and manufactured homes. Under the new policy they will be treated on the same terms and conditions as traditional multifamily rental developments, subject to the requirements in HUD's Mortgagee Letter. The policy applies to the Section 221(d)(4) program for new construction and the Section 223(f) program for acquisition or refinancing of recently developed rental communities.

Secretary Scott Turner said America needs more affordable housing and that eliminating barriers would spur development, expand rental options and improve affordability. Joe Gormley, who oversees the FHA and the Office of Housing, said expanding housing supply, including new rental housing, is essential to improving affordability, and cited HUD initiatives including chassis removal in its manufactured housing programs.

Published by GSM · USA (original Chinese edition)

Photo: 图：郊区独栋住宅社区航拍。照片：IDuke 摄，CC BY-SA 2.5，经 Wikimedia Commons。 / Aerial view of a suburban single-family housing community. Photo by IDuke, CC BY-SA 2.5, via Wikimedia Commons.

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