MAP Section 221(d)(4) Program

The MAP Section 221(d)(4) Program provides for the new construction or substantial rehabilitation of multifamily properties.

To be eligible for this program, properties must:
  • Replace two or more building systems or;
  • Exceeds in aggregate cost a sum equal to the base per dwelling unit limit times the applicable High Cost Factor times the number of dwelling units proposed for the property after completion of any construction
Project requirements:
  • Obtain full drawings and specifications by an Architect
  • Hire a General Contractor
  • Have a contingency reserve of 10 to 15% depending on the condition of the project
  • Monthly escrows for real estate taxes, property insurance, replacement reserves and mortgage insurance premium
  • During the construction period, the MIP is paid annually in advance, based on a rate established by FHA. The rate is fixed at endorsement. After commencement of amortization the MIP is escrowed monthly based on the average principal balance  

The maximum term of the mortgage is 40 years with full amortization and a fixed interest rate.

A concept meeting with the Regional Center or Satellite Office is required prior to application submission (unless waived by the Regional Director). HUD will respond within 5 business days of the meeting either encouraging the lender to submit an application, request additional information, or specify conditions/recommendations to consider. (The written response does not represent a commitment from HUD).