Deals Using New HUD Debt Eligibility Guidance Close

In May of this year, the U.S. Department of Housing and Urban Development (HUD)/Federal Housing Administration (FHA) released an update to its Sec. 232 Handbook that included important changes on eligible indebtedness; specifically, an elimination of the two-year seasoning rule in certain instances. Under the changes, certain high quality, stable cash-flowing projects that previously were subject to debt seasoning for two years were now immediately eligible to seek HUD financing. Lancaster Pollard recently put the new HUD debt eligibility guidance to use as it announced the successful closings of 10 separate transactions for three different clients.