HUD Multifamily Loans in Louisiana
Harper Capital Partners has deep experience with HUD financing in Louisiana. Our select transactions include 13 Louisiana financings totaling nearly $128 million, eight of them in the Shreveport-Bossier City market, with others in Alexandria, Houma, Monroe, Natchitoches and Ruston. Twelve are Section 223(f) refinances; the thirteenth is an interest rate reduction on an existing HUD loan.
Louisiana transactions
| Loan amount | Program | City |
|---|---|---|
| $22,720,000 | 223(f) Refinance | Houma |
| $16,660,000 | 223(f) Refinance | Alexandria |
| $16,310,338 | Interest Rate Reduction | Alexandria |
| $13,120,000 | 223(f) Refinance | Bossier City |
| $11,865,300 | 223(f) Refinance | Natchitoches |
| $10,680,000 | 223(f) Refinance | Shreveport |
| $7,520,000 | 223(f) Refinance | Shreveport |
| $6,960,000 | 223(f) Refinance | Shreveport |
| $5,040,000 | 223(f) Refinance | Shreveport |
| $4,876,600 | 223(f) Refinance | Shreveport |
| $4,364,900 | 223(f) Refinance | Monroe |
| $4,013,400 | 223(f) Refinance | Shreveport |
| $3,836,400 | 223(f) Refinance | Ruston |
How HUD financing works for Louisiana properties
HUD processes Louisiana multifamily applications through its Southwest Region, based in Fort Worth, Texas.
- Section 223(f) is the workhorse for Louisiana's existing apartment stock: 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). Properties need at least 5 units, and those with certificates of occupancy 3 or more years old must show stable occupancy of at least 85%.
- Floodplains and flood insurance. HUD reviews every site's flood risk. Buildings in a FEMA Special Flood Hazard Area must carry flood insurance, and some floodplain sites require a formal decision-making process under HUD's floodplain rules (24 CFR Part 55), which HUD is currently revising. We look at the flood map first on every Louisiana deal, because it can change the timeline.
- Existing HUD loans can refinance through Section 223(a)(7), or reduce their rate through an interest rate reduction where HUD approves it, as on our Alexandria transaction.
What we see in Louisiana
- Insurance is the expense line to watch. Louisiana property insurance premiums have risen sharply since the 2020 and 2021 hurricane seasons, and flood coverage is a separate cost where it's required.
- Flood map first. Before we size a Louisiana deal, we check where each building sits relative to the FEMA floodplain and floodway. It's the item most likely to change a timeline.
- Most of our Louisiana work is refinancing existing properties in mid-size markets. That's where 223(f) matters most: 35 years of fixed-rate, non-recourse debt replacing shorter-term financing.
Louisiana FAQ
Which HUD office processes Louisiana multifamily loans?
HUD's Southwest Region, based in Fort Worth, Texas.
Can a Louisiana property in a flood zone get a HUD loan?
Often, yes, but it depends 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. Send us the address and we'll check the flood map before anything else.
What does a Louisiana 223(f) refinance require?
At least 5 units, a pattern of stable occupancy of at least 85% for properties 3 or more years old, and a minimum 1.15 DSCR for market-rate properties, with loan-to-value up to 87% (80% with cash out).
Please contact us to discuss a Louisiana property. 347.916.9750 │ info@harpercap.com