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HUD FHA - Insured Rental Housing. Physical and Financial Condition of Multi Family Properties Insured Before 1975

Report Acceptance Date: 
April 1987 (145 Pages)
Posted Date:   
March 27, 2012

Nearly 1.7 million American families rent apartments in privately owned and financed properties whose mortgages are insured by the Federal Housing

Administration (FHA) of the U.S. Department of Housing and Urban Development (HUD). Sixty-four percent of these families live in properties that receive HUD subsidies to keep rents affordable for lower-income households. About half of the insured properties are over ten years old.

Individuals in the Administration, Congress, and housing industry have been concerned that for many of these older properties, the cost of replacing roofs, heating, cooling, and other critical capital systems might exceed available resources. This could lead to physical deterioration affecting habitability or structural soundness, financial default, and high insurance claims against HUD. In response to these concerns, HUD's Office of Policy Development and Research undertook a study of the physical and financial condition of the older portion of the HUD/FHA multifamily rental inventory. This older inventory contains 7,266 properties with over 880,000 units. The study addressed the following questions:

    • What are the current and projected repair and replacement costs of the older insured inventory through the year 2000?
    • What proportion of properties is likely to have difficulty paying these costs from income and replacement reserves?
    • What is the nature of properties for which HUD has provided or obtained special assistance to alleviate physical or financial problems?

This report is part of the collection of scanned historical documents available to the public.