Bravo Property Trust reposted this
Bravo Capital is pleased to share that HUD has officially finalized the anticipated updates to its multifamily financing terms. These changes are designed to enhance housing production and address current market dynamics, providing borrowers with increased financing capabilities. Here are the finalized updates: Market Rate 221(d)(4) and 223(f) Transactions: -Debt Service Coverage Ratio reduced from 1.176x to 1.15x -LTC/LTV increased from 85% to 87% Affordable 221(d)(4) and 223(f) Transactions: -Debt Service Coverage Ratio reduced from 1.15x to 1.11x -LTC/LTV increased from 87% to 90% Middle-Income Housing 221(d)(4) Transactions (projects with 50% of units up to 120% AMI for at least 10 years): -Debt Service Coverage Ratio reduced from 1.176x to 1.11x -LTC increased from 85% to 90% These finalized adjustments are now effective and will apply to all projects that have not yet closed. They represent a significant step forward in HUD’s commitment to bolstering affordable, middle-income, and market-rate housing production. For more information on how these updates can benefit your next project, contact Bravo Capital or reach out to: Elan Goldberg at eg@bravocapital.com to discuss your financing options.