HUD Section 202 Direct loans
Under Section 202 of the National Housing Act of 1959, HUD was authorized to make long-term loans directly to multifamily housing projects. Loan proceeds were used to finance the construction of housing for persons age 62 or older and handicapped persons. In 1990, amendments to Section 202 replaced the direct loan program with “capital advance” programs for owners of housing designed for elderly or disabled residents. HUD continues to service direct loans that were made under the old Section 202 program.
All projects that received Section 202 direct loans also are eligible for assistance under HUD’s Section 8 rent subsidy program.
