FPG’s broad programmatic experience made us a match when the Department of Housing and Urban Development (HUD) decided in 2013 to consolidate the Section 236 prepayment processing. The assignment was to help transfer the approval process from field offices to the Office of Recapitalization (Recap) at headquarters, whose staff was mostly unfamiliar with the Section 236 program. Our hands-on experience administering Section 236 projects and our familiarity with Recap meant we could ensure a smooth transition.
The Section 236 program started in 1965; it supports the affordability of privately owned housing through an interest rate subsidy. The owner pays a 1 percent interest rate on the mortgage while HUD covers the remaining portion of the market interest rate. Today, efforts center on preserving the affordability of existing units originally financed under this program.
Our contribution:
- Created Section 236 “Resource Desk” web portal
- Trained staff through formal sessions and live transaction demonstration
- Created Excel-based application for developers
- Wrote “desk guide” manuals for staff
- Continues to serve as the Section 236 “Help Desk” by answering logistical questions and collaborating with HUD on policy questions