FHA Multifamily: Maturing Subsidized Mortgages (HUD.GOV)

A GAO audit suggested that HUD identify subsidized projects with
mortgages maturing in the next ten years. This data may be helpful to
organizations interested in preserving affordable housing, by
identifying those projects that will no longer be governed by the terms
of the subsidized loan at some future date. It should be noted, however,
that most of these projects also have project-based rental assistance
contracts (e.g., Section 8) that contain restrictions on use and
occupancy, and provide tenant protections which continue independent of
the mortgage. State and local laws also affect the rights of owners and
tenants, and market conditions will play a significant role in
determining the rent levels for each project over time. Therefore, mere
fact that a project's mortgage is maturing does not automatically
indicate that any changes in its operation will occur.<br>