Does anyone know of any Government programs that will finance the rehab of an apartment complex? It will be used for low income senior citizens or section eight.
I have a background (several years ago) in HUD programs, so I'll throw in my 2 cents. Assuming your apartment project is 5 or more units, HUD-insured loans are available for purcahse or rehab.
You go through a HUD-approved lender, not through HUD itself. (The lender makes the loan to you and HUD insures--basically, guarantees--the loan.) It is crucial that you get a good, experianced HUD person who knows the ins and outs of the specific program you will be borrowing under or your experience can be hell due to all the red tape. Ideally, since your application will be processed through the local HUD office, you should work with a lender who knows the folks in that office and can nudge your application through the process. (Email me if you like and we can discuss the nature of your project and I may be able to recommend some lenders.)
You should also be aware that taking gov't money comes with certain restrictions on how you operate the property, how your cash flow is allocated, and the detail of the records you have to keep. For many owners, this extra layer of work is worth it . Just be sure it is worth it to you.
There is, as well, a program for rural housing run through the US Dept of Agriculture. I can't give you any info on it off the top of my head, but I'm sure you can find out on Ag's website.
Many state governments or localities also have loan, grant or tax abatement programs if your project meets certain criteria.
I would suggest going to HUD's web site you can find their link in the TCI's link page area:
http://www.thecreativeinvestor.com/Web_Links-index.html
[addsig]
I have a background (several years ago) in HUD programs, so I'll throw in my 2 cents. Assuming your apartment project is 5 or more units, HUD-insured loans are available for purcahse or rehab.
You go through a HUD-approved lender, not through HUD itself. (The lender makes the loan to you and HUD insures--basically, guarantees--the loan.) It is crucial that you get a good, experianced HUD person who knows the ins and outs of the specific program you will be borrowing under or your experience can be hell due to all the red tape. Ideally, since your application will be processed through the local HUD office, you should work with a lender who knows the folks in that office and can nudge your application through the process. (Email me if you like and we can discuss the nature of your project and I may be able to recommend some lenders.)
You should also be aware that taking gov't money comes with certain restrictions on how you operate the property, how your cash flow is allocated, and the detail of the records you have to keep. For many owners, this extra layer of work is worth it . Just be sure it is worth it to you.
There is, as well, a program for rural housing run through the US Dept of Agriculture. I can't give you any info on it off the top of my head, but I'm sure you can find out on Ag's website.
Many state governments or localities also have loan, grant or tax abatement programs if your project meets certain criteria.
Best of luck.