In addition to our HUD financing capabilities, Bedford Lending Corp ("BLC") is one of the nation's leading consultants in developing strategies and finance solutions for HUD-assisted preservation transactions.

We work closely with our clients and clearly define the steps needed to navigate through the complexities involved in recapitalizing older HUD assisted and insured Multifamily properties. We outline the pros and cons of the transaction so that a client can make an informed business decision. Our services have provided significant financial and strategic benefits for our clients.

The vast majority of HUD's privately-owned affordable housing stock was built between the late 1960s and early 1980s under the following FHA insurance and mortgage subsidy programs;

  • Section 221(d)(3) Below-Market Interest Rate Program;
  • 221(d)(3) Market Rate Program;
  • Section 236 Interest Reduction Payments Program;
  • Section 221(d)(4) Market Rate Program; and
  • Section 202 Elderly Housing Direct Loan Program.

HUD frequently provided owners of these properties with additional project-based assistance to ensure the affordability of these apartments to very-low and low- income households in the form of:

  • Rent Supplement Assistance;
  • New Construction/Substantial Rehabilitation Section 8 Rental Assistance; and
  • Loan Management Set-Aside Section 8 Assistance

Given the age of these properties and expiring subsidies, recapitalization is needed to address capital improvement needs of the property and financial concerns of their owners.


Service Description

BLC Consulting Services are offered independently or in conjunction with BLC's financing services. BLC provides owners and acquirers with the strategic consulting services needed to develop, implement and close virtually any type of HUD recapitalization including:

  • Section 236 Interest Reduction Payments Decoupling
  • Section 202 Recapitalization
  • Flexible Subsidy Recapitalization
  • ELIHPA and LIHPRHA Recapitalization
  • Mark Up to Market - Standard, Discretionary, and Non-profit Transfer
  • Capital Repair Program for Non-profits ;- i.e. "The Mark Up to Budget Program"
  • Prepayment Facilitation/Refinancing
  • Section 8 Enhanced Voucher Processing/Implementation
  • Section 8 Contract Termination

BLC works with owners and buyers to develop recapitalization strategies and then fully implements these transactions in coordination with all other involved parties. As the consultant, BLC is responsible for the overall transaction implementation and serves as the primary point of contact with all parties from transaction inception to closing. The process is managed through our proprietary content management system.

Bedford Lending funded us a $9,000,000 construction loan that paid off our bank and provided over $5,000,000 in funds to rehab our 250 apartment units. We acquired the distressed properties with 100% financing (80% bank -20% seller financing) and at the time the properties were in disrepair and less than 50% occupied. Based on their knowledge, BLC underwrote the loan using the market potential and they were the only lender that looked at the upside. We are now 95% occupied and the portfolio has doubled in value. I plan to use them on all my loans."

- Bill J., Baltimore, MD

Our Finance Options

  • HUD/FHA Construction
  • HUD/FHA Permanent Loans
  • USDA (538) Loans
  • USDA Low Income Housing
  • USDA Community Facilities Program
  • HUD 202 Loans
  • Non-Profit Affordable Housing
  • Section 8 Loans
  • HAP Contract Loans
  • Conventional
  • Low Income Housing
  • Rural Affordable Housing
  • 4% and 9% Tax Credit
  • Federal & State Tax Credit
  • New Market Tax Credit
  • Bond advisory
  • Private placement advisor
  • Credit Enhancements
  • SBA Loans
  • Forward Commitments
  • Bridge Loans
  • Mezzanine Debt Fixed and Adjustable Loans
  • Participation Loans
  • Sale Leaseback Financing
  • Distressed/Turnaround Properties
  • Blanket Mortgages

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