HUD oversees more than 22,000 privately owned multifamily properties, and more than 1.4 million assisted housing units. These homes were originally financed with FHA-insured or Direct Loans and many are supported with Section 8 or other rental assistance contracts. Our existing stock of affordable rental housing is a critical resource for seniors and families who otherwise would not have access to safe, decent places to call home.
HUD is actively working with our industry partners to preserve the affordability and long-term viability of multifamily housing. Many HUD properties were financed 30 to 40 years ago. Housing subsidy contracts are expiring on thousands of privately owned multifamily properties with federally insured mortgages. Many of these contracts set rents at amounts higher than those of the local market. As these subsidy contracts expire, the Mark-to-Market program will reduce rents to market levels and will restructure existing debt to levels supportable by these rents.