View Rule

HUD's current regulatory provision currently includes a three-year bar to mortgage insurance applications for recently constructed residential care facilities. HUD's current regulation precludes consideration of needed financing for many facilities that may be an excellent credit risk and may strengthen HUD’s overall portfolio. This interim rule will result in the removal of the three-year eligibility requirement for Section 232/223(f) applications and will thus position HUD to evaluate applications on newly stabilized residential care facilities. The need for this amendment is particularly urgent in light of COVID-19-related impacts on conventional lending alternatives, as well as a need for facilities that contain the latest updates in the design and construction of HVAC equipment to assist in virus outbreak prevention among vulnerable elderly populations. The amendment will also bring HUD’s treatment of residential care facilities in line with its treatment of multifamily housing in this respect.