HUD Programs

Affordable Housing

Bedford Lending is a nationwide leader in providing finance solutions for affordable housing projects throughout the United States. No project is too big, small, or complex. We have successfully worked on projects funded by, including, or requesting:

  • Section 202 Loans
  • Section 236 Loans
  • 9% & 4% Low Income Housing Tax Credits ( LIHTC )
  • New Market Tax Credits
  • Tax Exempt Bond Financing
  • Flex Subsidies
  • HAP Contracts
  • RAD Conversions
  • PBV / PBRA Vouchers
  • IRP Decouplings

Often times, we need to meld subordinated loans or grants with existing programs to fill critical equity gaps. Our direct HUD programs can be used to fund capital improvements, replacement reserves and to add supportive services. In addition, we have extensive experience repositioning 236 properties that may need to be decoupled and/or maturing through either the Markup to Market or Markup to Budget programs.


HUD defines Affordable Housing as projects that meet the following requirements:

  1. Rent and income restrictions must be imposed, monitored and enforced by a governmental agency for at least 15 years after construction, and
  2. Either
    1. a recorded Regulatory Agreement requiring the project to meet at least the minimum LIHTC restrictions of 20% of units at 50% of area median income (AMI), or 40% of units at 60% of AMI, with economic rents (i.e. the portion paid by the residents) on those units no greater than LIHTC rents, or
    2. a Project-Based Section 8 contract for 90% of the units.

Projects do not need to use LIHTCs to qualify for affordable underwriting so long as they meet the above requirements.


Our direct HUD programs provide:

  • Very Low Interest Rates
  • 35-40 Year Fixed Rate Term
  • Non-recourse
  • 15% Developers Fee (As Allowed)
  • Cash Out to Fund Capital Improvements

There are many legal and financial issues that need to be addressed when evaluating an affordable FHA / HUD loan request. Our principals have decades of experience and work closely with our client(s), their management company and board of directors to clearly explain the loan process so processing can move efficiently and smoothly.