Housing Assistance: An Inventory of Fiscal Year 2010 Programs, Tax Expenditures, and Other Activities

U.S. Government Accountability Office

Housing Finance Authority Risk Sharing (Section 542(c))

Administering Agency/Entity Department of Housing and Urban Development
Short Description Enables HUD and state and local housing finance agencies (HFA) to provide new risk-sharing arrangements to help those agencies provide more insurance and credit for multifamily loans. Participating qualified state and local HFAs may originate and underwrite affordable housing loans, including loans for new construction, substantial rehabilitation, refinancing, and housing for the elderly. The program provides full Federal Housing Administration mortgage insurance to enhance HFA bonds to investment grade. HFAs may elect to share from 10 to 90 percent of the loss on a loan with HUD.
Primary Purpose Assistance for financing rental housing
Type of Housing Supported Rental Housing
Type of Assistance Insured loan
Fiscal Year 2010 Obligations -$2,000,000; obligations represent the expected credit subsidy costs for loan commitments under this program made in fiscal year 2010. These estimates are revised in subsequent years and the ultimate cost will not be known until the loans have matured, which in some cases may be 30 years. This loan program is part of the General Insurance and Special Risk Insurance Fund, which houses a wide range of mortgage insurance products, including insurance for loans to develop, rehabilitate, and refinance multifamily rental housing, nursing home facilities, and hospitals.

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