HUD Insured Loans
The U.S. Department of Housing and Urban Development (HUD), offers mortgage insurance for loans on multi-family properties. These HUD-insured loans have several advantages. They often are at a lower interest rate, and they are fully amortized, assignable, and non-recourse, which provides borrowers protections they may not receive through other loans. While HUD loans are often advantageous, they come with many strings and conditions that borrowers must be aware of. Violating one or more HUD laws or the terms of a HUD agreement can result in civil penalties, and in extreme cases, criminal prosecution.
Tiffany & Bosco’s Experience with HUD Loans.
Our team at Tiffany & Bosco is ready to help clients with all types of HUD-related matters, including:
HUD Insured Loans Financing
HUD-insured loans are utilized to construct new building projects and to refinance and, if needed, rehabilitate existing properties. At Tiffany & Bosco, we have helped for-profit and non-profit organizations obtain HUD-insured loans for multi-housing and other projects, including affordable housing complexes, upscale apartment complexes, hospitals, skilled nursing facilities, and assisted and independent living facilities.
Obtaining HUD financing can be a lengthy process, which makes it all the more important for borrowers to work with experienced HUD loan attorneys who are familiar with the process and will handle it efficiently. Tiffany & Bosco has closed more than 300 HUD-insured loan transactions totaling more than $4 billion in value.
Transfer of Physical Assets
When multi-housing projects are subject to HUD-insured loans, HUD must approve any sale or other transfers of those properties involving an assumption of the HUD-insured loan. Owners must submit an Application for Transfer of Physical Assets (TPA) to HUD. If the property involves Section 8, Housing Assistance Payments (HAP), Preservation, or Use agreements, then there are additional issues that may impact the application process and sale.
The TPA process can be complex and lengthy, particularly if it is not handled properly from the beginning. At Tiffany & Bosco, our team is highly experienced in efficiently handling TPAs. We have successfully guided our clients through the TPA process in approximately 70 days.
Violation of Regulatory Agreements
When properties are subject to HUD-insured loans, the borrowers enter into Regulatory Agreements with HUD that includes some restrictions. Minor violations of these agreements may be resolved with personnel at the field or regional HUD office. Serious violations are referred to the Departmental Enforcement Center (DEC), which can impose penalties or refer possible crimes to the Department of Justice (DOJ).
Our team at Tiffany & Bosco represents borrowers who have had alleged violations referred to DEC. Depending on the circumstances, we work to avoid any civil penalties, or reduce them. We are proud to be able to say none of our clients have been referred to the DOJ for prosecution.
Get Help with HUD Legal Issues
Businesses interested in obtaining a HUD loan, selling a HUD-insured property, or dealing with an alleged HUD regulatory violation should contact Tiffany & Bosco for assistance. We have years of experience and unique insights into HUD financing, transactions, and compliance. We guide our clients through HUD legal matters as efficiently as possible and always in pursuit of the best possible outcome in the matter.
Contact Tiffany & Bosco for help with your HUD law case today.