Refinancing
Purpose:
The Department of Housing and Urban Development (HUD) recently refined the HUD Section 202 elderly housing prepayment and refinancing initiative for existing 202 developments with direct loans. The purpose of this program is to provide the non-profit owners of Section 202 projects with an option to refinance their developments in order to renovate the facilities and/or create new, limited supportive services to enable residents to further age in place.

Program Description:
The refinancing initiative provides the non-profit owners an opportunity to be pro-active in developing creative options to address the increasing number of frail elders in these settings. HUD is allowing facilities to refinance their mortgages with current interest rates, which are lower than the original interest rates. The refinancing process will generate resources for the nonprofit owners to implement supportive services, as well as to remodel existing structures and/or construct additions.
Rental Housing for New Construction and Substantial Rehabilitation
Section 221(d)(3) and Section 221(d)(4)
The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), provides mortgage insurance to facilitate the development of rental housing.  The 221(d) program is FHA's program for the new construction or substantial rehabilitation of multifamily rental properties. Section 221(d)(3) is used by nonprofit and cooperative sponsors; Section 221(d)(4) is used by profit-motivated sponsors.
Rental Housing for Refinancing of Existing Properties
Section 223(f)
The Federal Housing Administration (FHA) provides mortgage insurance to facilitate the refinancing or purchase of rental housing that does not require substantial rehabilitation.  The Section 207/223(f) program is FHA's program for insuring such properties which may or may not require minor repairs and improvements.
Residential Health Care Facilities
Sections 232 and 232/223(f)
The Federal Housing Administration (FHA) provides mortgage insurance to facilitate the development and refinancing of nursing homes, intermediate care facilities, board and care homes, and assisted living facilities.  The 232 program is FHA's program for the new construction or substantial rehabilitation of these residential health care properties.  In addition, under Section 232, pursuant to Section 223(f), these properties may be purchased or refinanced without substantial rehabilitation, although repairs and improvements are permitted.  A mortgage insured under Section 232 or 232/223(f) may include the cost of major movable equipment for operating the health-care facility.