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HUD Releases New Guide: Preservation Options for Section 236 Properties

HUD announces the release of Preservation Options for Section 236 Properties, a step-by-step guide on how to preserve Section 236 properties as affordable housing. It covers key financing issues, such as raising capital, loan prepayment, IRP decoupling, and Flexible Subsidy Loan deferral. Rental assistance guidance includes Section 8 contract renewal options, Tenant Protection Vouchers, Enhanced Vouchers, Project-Based Vouchers, and RAD 2. A useful webinar and other materials can also be found on the HUD Exchange Section 236 page.

HUD is encouraging all owners and managers of Section 236 projects to take action in 2016 to preserve their properties as affordable housing. All Section 236 loans will mature in the next 3 years, so now is the time to take advantage of HUD’s guidance on regulatory requirements, incentives, and other affordability options. To request assistance with the preservation of a Section 236 project, email 236Preservation@hud.gov.

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