LeadingAge Washington

7/2/13

HUD Reinstates Developer Fee for Section 202 Refinancings

The Department of Housing and Urban Development (HUD) announced in late June, 2013 that it would revise a notice that eliminated developer fees for refinances of Section 202 Supportive Housing for the Elderly properties.

A May 30 Notice on Updated Requirements for Prepayment and Refinance of Section 202 Direct Loans said that no developer fee is allowed from the proceeds of an FHA-insured Section 223(f) refinance of Section 202 direct loans. On June 26, HUD released a statement to the effect it would revise the notice due to feedback received from lenders, including the reinstatement of the developer fee.

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