HUD Establishes Policies for Subordination of Section 202 Loans To Support Rehab, Preservation

摘要

Hud has established policies and procedures for the subordination of Section 202 loans to facilitate rehabilitation and preservation in cases where refinancing of the existing loan isn't feasible. The department provided the guidance in Notice H 2010-26, which was issued on December 20. The notice points out that subordination may be advantageous for owners and developers which are using low-income housing tax credits for substantial rehabilitation. In addition, it says HUD can benefit from long-term use agreements and a physical upgrade for tenants.