Creating a Middle Income Housing option for 221(d)(4) 

Summary 

This Mortgagee Letter (ML) proposes to create a new set of underwriting thresholds for Middle Income Housing as part of the Federal Housing Administration's (FHA’s) Multifamily Housing Programs' underwriting standards and guidelines. It is not applicable to the health care programs administered by the Office of Healthcare Programs (Section 232 or refinancing of Section 232 pursuant to Sections 223 (f) or 223 (a) (7)), nor does it apply to Risk Share (542) loans.

These changes are in response to current real estate and financing markets and are intended to stimulate housing production as part of FHA’s countercyclical role while ensuring the continued availability and stability of FHA insurance.

What feedback are we seeking?  

HUD is interested in any general or specific feedback on the approval process proposed in the Mortgagee Letter attached below. By doing so you assist HUD to efficiently review your comments and to make any possible final revisions.

How can you send feedback? 

Please input comments into the Creating a Middle Income Housing option for 221(d)(4) worksheet and send them to margaret.a.lawrence@hud.gov with the subject line: “Creating a Middle Income Housing option for 221(d)(4)” no later than 5:00 PM ET, November 25, 2024, or before the below expiration date stated next to the draft Publication. 

The draft notice can be viewed here:

Last Updated: 10/29/2024