HUD Multifamily Risk Sharing
The multifamily risk-sharing program is designed to encourage the production of affordable rental housing by allowing HUD to provide risk-sharing arrangements to state and local housing finance agencies. Created under Section 542 of the Housing and Community Development Act of 1992 (also called the Multifamily Housing Finance Improvement Act), the insurance program was created to demonstrate the effectiveness of providing new forms of credit enhancement for multifamily loans. A housing agency must be approved by HUD to participate in this program. To be eligible, the agency must be a HUD approved multifamily mortgagee in good standing and meet other credit, experience, and management criteria.
