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Directory of NYC Housing Programs

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Section 223(f)

Program (?) Section 223(f)
Program Description

Section 223(f) insures mortgage loans to facilitate the purchase or refinancing of existing multi-family rental housing. Operating since 1974, the program insures lenders against losses on mortgage defaults and allows for long-term mortgages that can be financed with GNMA Mortgage-Backed Securities. This structure results in more favorable interest rates, effectively reducing the cost of rental housing to the tenant. Eligible projects must have at least five residential units with complete kitchens and baths, the project must have been completed or rehabilitated for at least three years prior to application of mortgage insurance and does not require further substantial rehabilitation, and the life of the project permits a 10-year mortgage. Any owner or prospective buyer of eligible multi-family properties may apply for Section 223(f) insured mortgages. Loan or refinancing assistance is calculated as the lesser of 85 percent of the HUD appraised value, 85 percent of the acquisition cost, or a mortgage amount supported by 85 percent of net income.  Many of New York City-sponsored Mitchell-Lama rental buildings were refinanced using Section 223(f) insured loans.

Benefit Classification (?)  
Supply or Demand Supply
One-Time or Ongoing One-Time
Benefit Type (?) Financing
Government Agency (?) US Dept of Housing and Urban Development
Program Information (?)  
Scale Very Large Scale (over 10,000 units produced)
Timeframe 1974-Present
Developer/Owners (?) For-Profit, Non-Profit
Property Information (?)  
Property Occupancy Occupied
Property Type Building
Building Type Multi-family
Construction Type Not Applicable
Occupant Tenure (?) Rental
Occupant Income Restrictions (?) No Restrictions
More Information US HUD
Available on CoreData.nyc? Yes
Last Updated June 2018
Data Source U.S. Department of Housing and Urban Development
CoreData.nyc Notes

Data from U.S. Department of Housing and Urban Development accessed February 2018.

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