HUD Seeks Mission-Based and Private Lenders for Small Building Risk-Sharing Initiative

The U.S. Department of Housing and Urban Development announced a Small Building Risk Sharing Initiative, which aims to facilitate the financing of small multifamily properties. HUD is looking for both “Mission Based Lenders,” including Community Development Finance Institutions (CDFIs), other nonprofit lenders, public and quasipublic agenices, and “Private Lenders” that are approved as FHA MAP Lenders to participate in the program as Qualified Sharing Program Entities (QPEs).

The initiative is authorized by Section 542(b) of the Housing and Community Development Act of 1992, to facilitate the financing of small multifamily properties.

Application Date for Mission Based Lenders: Applications will be completed in a two-stage process: Pre-Qualification and Final Application. Pre-Qualification Applications from Mission Based Lenders will be accepted starting July 16, 2015. If the PreQualification Application is approved by HUD the applicant will have 90 days from receipt of HUD’s approval to complete its FHA Lender application online and deliver a Final Application to HUD.

Application Date for Private Lenders: Applications will be completed in a two-stage process: Pre-Qualification and Final Application. Pre-Qualification Applications from Private Lenders will be accepted starting six (6) months from July 16, 2015. If the Pre-Qualification Application is approved by HUD the applicant will have 90 days from receipt of HUD’s approval to deliver a complete Final Application to HUD. (Note Private Lenders must be FHA MAP Lenders in good standing in order to apply; therefore separate FHA Lender applications are not required.)

FOR FURTHER INFORMATION CONTACT: Diana Talios, Office of Multifamily Housing Programs, Office of Production, Department of Housing and Urban Development, 451 7th Street SW., Room 6148, Washington, DC 20410; email address Diana.J.Talios@HUD.gov and telephone number (202) 402–7125 (this is not a toll-free number). Persons with hearing or speech impairments may access this number through TTY by calling the toll-free Federal Relay Service at 800–877–8339.