HUD recently published Notice H 2012-8, which provides guidance for the pre-payment and refinancing of Section 202 Direct Loan projects, and supersedes all outstanding policy regarding Section 202 Direct Loan pre-payments. The notice offers guidance relating to:

  • Approval of Prepayment of Debt Requiring HUD Consent
  • Prepayments Not Requiring HUD Consent
  • Refinancing Resulting in Reduction of Debt Service
  • Refinancing to Address Physical Needs of the Project
  • Re-Refinancing of Section 202 Properties
  • Transaction Structure and Additional Considerations
  • Tenant Involvement in Prepayment and Refinancing

Click here to read Notice H 2012-8