This HUD program for senior housing may be even more attractive in 2012
by Leonard A. Lucas, first vice president and senior loan originator, Love Funding
It has been a busy year for the U.S. Department of Housing and Urban Development’s (HUD) multifamily-insurance programs, and its Section No. 232 program is no exception. After accepting a record 787 applications in fiscal-year 2010, the 232 program may eclipse that mark this year, with 692 applications approved by the end of August and a month still left in fiscal 2011 at press time.
For commercial mortgage brokers working with senior-housing developers, Section 232 loans are likely to be at least as popular in 2012 as they have been this past year, thanks to HUD’s aggressive efforts to accelerate approvals. Among its efforts, HUD hired 30 full-time staffers and contracted with a third-party underwriter this past July to help it get through the backlog of applications.
Even with the extra manpower, there is every reason to believe that the two primary drivers for Section 232 demand — low interest rates and a dearth of alternative funding sources — will remain in place going into next year. Commercial brokers who want to keep pace with the times would be wise to brush up on the recent history of Section 232 and how it will affect their business.
Read the full article on the Scottsman Guide.
As published in Scotsman Guide's Commercial Edition, December 2011.