Mortgage Insurance Rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate


Section 221(d)(4) insures mortgage loans to facilitate the new construction or substantial rehabilitation of multifamily rental or cooperative housing for moderate-income families, elderly, and the handicapped. Single Room Occupancy (SRO) projects may also be insured under this section. (See program 14.184).

General information about this opportunity
Last Known Status
Program Number
Federal Agency/Office
Office of Housing-Federal Housing Commissioner, Department of Housing and Urban Development
Type(s) of Assistance Offered
F - Guaranteed/Insured Loans
Program Accomplishments
Not applicable.
National Housing Act, as amended, Section 221, Public Law 86-372, 12 U.S.C. 17151 (d)(4).
The 221(d)(4) program is authorized by the National Housing Act (12 U.S.C. 17151 (d)(4). Program regulations are found at 24 CFR 221, subparts C and D. Program instructions are in the MAP Guide on HUDclips. The program is administered by the Office of Multifamily Housing Programs, Office of Production, Program Administration Division.
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
Public, profit-motivated sponsors, limited distribution, nonprofit cooperative, builder-seller, investor-sponsor, and general mortgagors.
Beneficiary Eligibility
All families are eligible to occupy dwellings in a structure whose mortgage is insured under the program, subject to normal tenant selection. There are no income limits. Projects may be designed specifically for the elderly and handicapped.
Eligible Borrowers who are also called eligible mortgagors, include public, profit-motivated sponsors, limited distribution, nonprofit cooperatives, builder-seller, investor-sponsor, and general mortgagors. Documentation regarding the characteristics of the property and the qualifications of the mortgagor are assembled by the mortgagee and submitted with the application.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is required. An environmental impact assessment is required for this listing. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. A short conference with a HUD representative and a preapplication are generally required. See the MAP Guide for additional information.
Application Procedure
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. For Multifamily Accelerated Processing (MAP), an FHA-approved lender submits the required exhibits, including a full underwriting package to a regional HUD office where the property is located. Application documents are reviewed by the Multifamily Hub or Satellite Office before a Firm Commitment is issued.
Award Procedure
The local HUD Multifamily Hub or Satellite Office reviews the application to determine whether the proposal is feasible. Considerations include market need, zoning, architectural merits, capabilities of sponsors, availability of community resources, etc. If the project meets program requirements, the HUD Multifamily Hub or Satellite Office issues the lender a commitment to insure the project mortgage.
Not applicable.
Approval/Disapproval Decision Time
Not applicable.
Not applicable.
Not applicable.
How are proposals selected?
Not applicable.
How may assistance be used?
Section 221(d)(4) insures lenders against loss on mortgage defaults for market rate rental projects. Insured mortgages may be used to finance construction or rehabilitation of detached, semidetached, row, walkup, or elevator-type rental or cooperative housing containing 5 or more units. The program has statutory mortgage limits which vary according to the size of the unit, the type of structure, and the location of the project. There are also loan-to- replacement cost and debt service limitations. Contractors for new construction and substantial rehabilitation projects must comply with prevailing wage requirements under the Davis-Bacon Act.
What are the requirements after being awarded this opportunity?
Not applicable.
The Department of Housing and Urban Development reserves the right to audit the accounts of either the mortgagee or mortgagor in order to determine their compliance and conformance with HUD regulations and standards.
Mortgagees are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions and the HUD regulations.
Other Assistance Considerations
Formula and Matching Requirements
Statutory Formula: Title 24 cfr Part 221

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
The maximum mortgage term is 40 years, or not in excess of three-fourths of the remaining economic life, whichever is less. Assistance which takes the form of FHA mortgage insurance accrues to the benefit of the borrower as favorable mortgage terms (interest rate and term/maturity) over the life of the mortgage.
Who do I contact about this opportunity?
Regional or Local Office
Persons are encouraged to contact the Multifamily Hub or Satellite Office with jurisdiction for the proposed project. HUD Multifamily Hubs and Satellite Offices are listed at
Headquarters Office
Thomas Bernaciak
451 Seventh Street SW
Washington, DC 20410 US
Phone: (202) 402-3242
Website Address
Financial Information
Account Identification
(Guaranteed/Insured Loans) FY 22 FY 23 FY 24 FY 21 FY 20$4,216,973,933.00; FY 19$7,640,000,000.00; FY 13$2,470,000,000.00; FY 16 est $3,541,142,939.00; FY 17 est $3,786,731,323.00; FY 14 est $2,400,000,000.00; FY 15$3,362,376,350.00; - Reported under 14.134.
Range and Average of Financial Assistance
Not applicable/available.
Regulations, Guidelines and Literature
24 CFR 221 et seq. The Multifamily Accelerated Processing (MAP) Guide is on the web. Refer to HUD's MAP page at
Examples of Funded Projects
Not applicable.


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