Affordable Housing

223(a)(7) Streamlined Refinance

The HUD 223(a)(7) program provides a streamlined process for borrowers, including non-profits and housing authorities, with existing HUD loans to lower their interest rate, increase the loan term and replacement reserves, and complete minor repairs ($1,500 per unit, not subject to Davis-Bacon) that extend the economic viability of the project. If an existing prepayment penalty exists, proceeds from the 223(a)(7) refinance can fund those prepayment expenses.

As part of the streamlined process, borrowers are not required to secure a new appraisal, market study or environmental assessment, however a new PCNA (Property Capital Needs Assessment) is typically required as part of the application.

Typically, the 223(a)(7) program takes 90 days from start to finish.