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Preserving Multifamily Properties


Tools for Preservation of Section 202 Properties
Section 202 properties provide housing to low-income elderly residents. Thousands of properties were financed between 1959 and 1992 with HUD Direct Loans. These properties may, under certain conditions, prepay their existing mortgages for the benefit of the project and the project residents. The Supportive Housing for the Elderly Act of 2010 made changes to the law regarding allowable prepayments and refinances of Section 202 properties. Please refer to the Senior Preservation Rental Assistance Contracts (SPRAC) page for more information. Guidance is under development to implement this new authority. In the interim, Owners should refer to the below Notices.
Using FHA Mortgage Insurance to Refinance Multifamily Properties

HUD is working to facilitate the preservation of our subsidized and assisted properties using these mortgage insurance programs. Below are key resources for FHA mortgage insurance, including recent guidance that provides flexibility for transactions that use Low Income Housing Tax Credits.

Preserving FHA-insured Properties with Maturing Mortgages
Renewing Section 8 Housing Assistance Payment (HAP) Contracts
Mark to Market Resources


Renewing Section 8 Housing Assistance Payment (HAP) Contracts
Related Information
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Preservation of affordable housing involves the active effort of many stakeholders. HUD is working to share resources on "Best Practices" for preservation, and to post regular updates to Multifamily portfolio data.