HUD Multifamily Loans in Florida
Our select transactions include 6 Florida financings totaling nearly $80 million, four of them in the Orlando metro area (Orlando, Sanford and Champions Gate), with others in West Palm Beach and Melbourne. They span nearly the full HUD toolkit: Section 223(f) refinances, Section 223(a)(7) streamlined refinances, a Section 241(a) supplemental loan and a Section 221(d)(4) substantial rehabilitation.
Florida transactions
| Loan amount | Program | City |
|---|---|---|
| $18,028,300 | 223(a)(7) Refinance | Champions Gate |
| $17,792,400 | 223(f) Refinance | Sanford |
| $16,581,000 | 223(f) Refinance | Orlando |
| $14,513,500 | 241(a) Supplemental | Sanford |
| $9,732,900 | 223(a)(7) Refinance | West Palm Beach |
| $3,160,800 | 221(d)(4) Substantial Rehabilitation | Melbourne |
How HUD financing works for Florida properties
HUD's Southeast Region, based in Atlanta, oversees Florida multifamily applications; Florida deals are often processed by its Jacksonville office.
- Stabilized properties: Section 223(f). Acquisition or refinance, up to 35 years, fixed rate, non-recourse. Market-rate properties size at a minimum 1.15 debt service coverage ratio and up to 87% loan-to-value (80% with cash out).
- Additional proceeds later: Section 241(a). An owner with an existing HUD loan can add a supplemental loan for capital improvements or additions without refinancing the first mortgage, as on our Sanford 241(a) transaction.
- Existing HUD loans: Section 223(a)(7). Refinance an existing HUD-insured mortgage into a lower rate with minimal new underwriting.
- Heavy renovation: Section 221(d)(4) substantial rehabilitation. One fixed rate through construction and a 40-year term after it, for properties whose repairs go beyond what a 223(f) can fund.
What we see in Florida
- Insurance is the expense line to watch. Wind and flood coverage costs have risen sharply across Florida, and flood insurance is required for buildings in a FEMA Special Flood Hazard Area.
- Tax exemptions have to run with the property. Florida's Live Local Act created property tax exemptions for qualifying affordable units. HUD can credit an exemption in the valuation only if it runs with the real estate rather than the owner, and the underwriting has to account for when it ends.
- Supplementals and Davis-Bacon. A 241(a) supplemental on a 223(f) or 223(a)(7) loan is exempt from Davis-Bacon prevailing wage requirements; a 241(a) on a 221(d)(4) is not. That difference can decide whether a supplemental pencils.
- Flood map first. We check where each building sits relative to the FEMA floodplain before anything else, because it's the item most likely to change a Florida timeline.
Florida FAQ
Which HUD office processes Florida multifamily loans?
HUD's Southeast Region, based in Atlanta, oversees Florida multifamily loans, and Florida deals are often processed by its Jacksonville office.
Can I get more proceeds on a Florida property that already has a HUD loan?
Often, yes. A Section 241(a) supplemental loan adds proceeds for capital improvements or additions without refinancing the existing first mortgage, and a 241(a) on a 223(f) or 223(a)(7) loan is exempt from Davis-Bacon prevailing wage requirements.
Does HUD finance Florida properties in flood zones?
In many cases, yes, depending on where the buildings sit relative to the floodplain and floodway. Buildings in a FEMA Special Flood Hazard Area must carry flood insurance, and some sites need a formal floodplain review before HUD will proceed.
Please contact us to discuss a Florida property. 347.916.9750 │ info@harpercap.com