HUD / Affordable Consulting

In addition to lending under our direct HUD programs, Bedford Lending Corp is one of the nation's leading consultants in developing strategies and finance solutions for market rate and affordable real estate transactions nationwide.

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. Our advisory services offer significant financial and strategic benefits for our clients, often enabling the completion of repairs, improvements, and additions that provide long-term stability. Collectively, our advisory services have helped preserve over 1,000 units of affordable housing.


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;
  • 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.

Our Strength

BLC’s consulting services are offered independently or in conjunction with our direct loan programs. Generally, there is no charge for consulting when our lending services are also used to refinance, purchase, construct, or rehabilitate a property. 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
  • RAD Conversions

We also show owners and buyers how they can secure developer’s fees as part of this process and can help source grants and funds to fill critical equity gaps. As the consultant, BLC is directly responsible for the success of the transaction, and serves as the primary point of contact with all parties in order to streamline processing and minimize stress for our clients.

We invite you to contact us for more information.