HUD Mortgage Letter Waives Three-year Rule for Refinancing

The U.S. Department of Housing and Urban Development (HUD) released a Mortgagee Letter providing a temporary waiver of the three-year rule for refinancing existing multifamily rental properties with the Section 223(f) program. This mortgagee letter sets forth the Department’s policy to grant temporary authority to Multifamily Hub Directors to grant waivers of the Three-Year Rule for Section 223(f) (MAP Guide, Section 3.8.a Eligible Property), for the purpose of providing liquidity to recently constructed, self sustaining properties that are unable to secure permanent long-term financing due to the freeze in the capital markets. The waiver authority is for six months, at which time the Department will review the policy and determine if it should be extended.

For more information, contact Claudia Kedda at 800-368-5242 x8352. [Return to top]