HUD / Affordable Consulting

In addition to lending under our direct HUD programs, Bedford Lending develops strategies and finance solutions for affordable real estate developers.

We work closely with our clients and clearly define the steps needed to navigate through the complexities of financing, particularly when recapitalizing older HUD-assisted and insured multifamily properties.


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. 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.

Our Strength

BLC's consulting services are complementary and offered in conjunction with our direct loan programs. 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
  • 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 TPV Issuance
  • RAD Conversions

We invite you to contact us for more information.