Bedford Lending
HUD programs

HUD 220 Urban revitalization construction & rehab

A HUD financing option for rental housing in qualifying areas with designated revitalization activity.

Program at a glanceDocuments & videosProgram detailsThe process

Program at a glance

Purpose
Rental housing in qualifying revitalization areas.
Term
Up to 40 years, subject to applicable limits.
Process
MAP pre-application and firm application.
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Documents & videos

Program GuideOpen PDF
All handoutsAll videos
Program details & considerations

Section 220 can finance new construction or rehabilitation in eligible revitalization areas. Location eligibility is an early part of the review; an urban address alone does not establish eligibility.

Send us the site address, proposed development plan and supporting local revitalization documents. We can compare Section 220 with Section 221(d)(4) and confirm the appropriate HUD application route.

Eligible uses & property features

  • Qualifying revitalization areas
  • New construction and rehabilitation
  • Location eligibility reviewed early

What to consider

The project must meet the program’s location and underwriting requirements. Confirm the site designation, development scope and commercial uses early. Section 221(d)(4) sizing percentages should not be assumed to apply to Section 220.

Eligibility, proceeds, terms and timing depend on the property, underwriting and current HUD requirements. This overview is not a loan commitment.

Loan processing timeline

  1. Pre-qualification & concept meeting

    Review rents, expenses, construction costs and the site. After engagement, we prepare a project narrative and meet with HUD to discuss the proposed financing.

  2. Pre-app preparation

    Order the appraisal, market study where required and environmental report. Gather preliminary plans while we assemble the pre-application package.

  3. Pre-app submission & HUD review

    Submit our underwriting and exhibits to HUD. Resolve comments and obtain an invitation to proceed to firm application, if approved.

  4. Firm application preparation

    Complete plan and cost reviews, construction pricing, borrower and contractor financial review, survey and title work. Update reports as needed.

  5. Firm submission & HUD commitment

    Submit the firm application and address HUD’s comments. If approved, HUD issues a firm commitment with conditions to satisfy before closing.

  6. Rate lock & initial closing

    Coordinate the rate lock and initial closing. Construction advances, completion, cost certification and final endorsement follow.

The schedule depends on the project and required reviews.

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