Housing Finance Agencies (HFA) Risk Sharing
Active
- Assistance listing
- 14.188
- Agency
-
Assistant Secretary for Housing Federal Housing Commissioner
Department of Housing and Urban Development
- Grant awards
- Not on record
Program facts
- Also known as
- HFA Risk Sharing Program - 542(c)
- Treasury account
-
- 86-4077-0-3-371
- More information
Program details come from SAM.gov Assistance Listings. Updated .
About this program
The Department of Housing and Urban Development (HUD) provides mortgage insurance credit enhancement for multifamily housing projects financed through Housing Finance Agencies (HFAs) under CFDA 14.188, with HUD and HFAs sharing underwriting, processing, servicing, and risk.
This program does not disburse grant awards to organizations. Instead, HUD provides mortgage insurance credit enhancement on multifamily housing mortgages that HFAs have underwritten, processed, serviced, and disposed of. HFAs act as the primary underwriting and decision-making entity; borrowers seeking mortgage insurance consult a HUD-approved HFA as the single point of contact, and the lender submits applications directly to the HFA. The HFA approves or rejects individual projects within HUD's framework, though HUD retains environmental review authority and can audit HFA and mortgagor accounts for regulatory compliance. Processing timelines depend on sponsor preparation quality.
The source provides no grant award portfolio data, recent awards, award cadence, or open solicitation details. HUD-approved HFAs operate as the delivery mechanism rather than applicant pool; potential borrowers must engage a qualified HFA in their state or locality to access the credit enhancement. HFAs must maintain records and service mortgages in accordance with prudent lending practices and HUD regulations, and must monitor construction and inspection processes.
Because this program operates as a credit enhancement vehicle channeled through state and local HFAs rather than as a traditional grant or project funding program, it is not structured for direct organizational applicant pursuit in the way other Assistance Listings function. Organizations seeking capital for multifamily housing projects would access this program indirectly through a HUD-approved HFA, not by submitting a grant application to HUD.
Objective and description
- Objective
Under Section 542(c), HUD provides credit enhancement for mortgages for multifamily housing projects whose loans are underwritten, processed, serviced, and disposed of by Housing Finance Agencies (HFA). HUD and the qualified State and local HFAs sha
- Description
Section 542(c) provides credit enhancement for mortgages of multifamily housing projects whose loans are underwritten, processed, serviced, and disposed of by HFAs. HUD and HFAs share in the risk of the mortgage.
Eligibility
- Applicant eligibility
Eligible mortgagors, who include investors, builders, developers, public entities, and private nonprofit corporations or associations, may apply to a qualified HFA.
- Beneficiary eligibility
Individuals, families, and property owners may be eligible for affordable housing.
- Uses of assistance
Participating qualified State and local Housing Finance Agencies (HFAs) may underwrite, originate, service, and dispose of properties financed under Section 542(c). Program provides full HUD mortgage insurance to enhance HFA bonds to investment grade. HFA reimburses HUD in the event of a claim pursuant to terms of Risk Sharing Agreement. HFAs may elect to share risk with HUD from 10 to 90 percent of the loss. The program provides new independent insurance authority not under the National Housing Act.
- Length and time phasing of assistance
No
How to apply
- Preapplication coordination
To obtain mortgage insurance, a potential borrower should consult a HUD-approved HFA as the single point of contact for additional information regarding the process. The lender on behalf of the borrower then submits an application directly to the HFA. The HFA obtains specific approvals from the local HUD Multifamily Hub or Program Center on previous participation and environmental assessments.
- Award procedure
The HFAs are vested with the maximum amount of processing responsibilities and decision-making to approve or reject individual projects. However, HUD retains authority for environmental review. The HUD-approved HFA is responsible for making the award once the project qualifies for mortgage insurance.
- Deadlines
See Application Procedures
- Time to approval or disapproval
Processing time depends upon the degree of preparation by the sponsor.
- Renewals
HUD will provide mortgage insurance on multifamily housing projects whose loans were underwritten, processed, serviced, and disposed of by HFAs.
- Appeals
If an application for mortgage insurance is refused, HFA will state the reasons for the refusal. If reapplication is desired, the applicant may modify the application and reapply.
Quick answers
What is Assistance Listing 14.188?
Assistance Listing 14.188 is Housing Finance Agencies (HFA) Risk Sharing, a federal grant program run by Assistant Secretary for Housing Federal Housing Commissioner (Department of Housing and Urban Development).
What is the CFDA number for Housing Finance Agencies (HFA) Risk Sharing?
Its CFDA number is 14.188: Assistance Listing numbers were called CFDA numbers before 2018.
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