Six Years Later: HUD-Insured Multifamily Housing Stock Still Good

In 1989 HUD undertook an initial assessment of its insured multifamily housing stock. A report released by HUD's Office of Policy Development and Research chronicles the findings of a second assessment as of 1995 and highlights the major changes in the housing inventory 6 years later. Overall, the multifamily housing stock's financial condition improved between 1989 and 1995, but its physical condition declined. Repair and replacement needs increase as housing ages, so some decline was not unexpected. Nevertheless, the report finds that the physical needs of most properties remained relatively modest.

Status of HUD-Insured (or Held) Multifamily Rental Housing in 1995—Final Report profiles the physical and financial condition of more than 12,000 properties. The report focuses on the 10,000 properties within the total portfolio that benefit from rental assistance in addition to mortgage insurance. Three assistance categories are defined in the report:

• Unassisted properties have mortgages insured under any HUD mortgage program but do not receive HUD rental assistance or mortgage interest subsidies. Most unassisted mortgages are insured under Section 221(d)(4). The study stock includes 2,224 properties housing more than 354,000 families.

• Older assisted properties have mortgages insured under any HUD mortgage insurance program and receive either mortgage interest subsidies (Section 236 or Section 221(d)(3)BMIR) or rental assistance (Section 8 Loan Management Set-Aside, Rent Supplement, Rental Assistance Payment, or Section 8 Property Disposition). The study stock includes 5,943 properties housing more than 686,000 families.

• Newer assisted properties have mortgages insured under any HUD mortgage insurance program, although most are insured under Section 221(d)(4) and receive rental assistance under the Section 8 New Construction, Substantial Rehabilitation, or Moderate Rehabilitation programs. The study stock includes 4,076 properties housing nearly 365,000 families.

Providing homes to 1.4 million predominantly low- and moderate-income families across the Nation is a challenge; yet the report finds that as of 1995, most HUD-insured multifamily properties continue to provide good housing.

Status of HUD-Insured (or Held) Multifamily Rental Housing in 1995—Final Report is available from HUD USER for $5. Use the order form.