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
