Rule tracker
What changed in HUD multifamily
Changes since January 2024 to how FHA-insured apartment loans are sized, priced, built, inspected and processed, including the ones still in proposal. Each one is dated and linked to the Mortgagee Letter, Federal Register document or statute it comes from. 13 are in effect now; 5 are proposed, in draft, or enacted but not yet implemented by HUD.
- Last checked Oct 31, 2026 against HUD's Mortgagee Letters and the Federal Register
- 26 changes, January 2024 to date
At a glance
Newest first. Select a change for what it does, who it affects, when it took effect and the source.
Every change, with its source
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Build-to-rent communities become eligible for FHA multifamily insurance
Mortgagee Letter 2026-12 lets HUD insure rental communities of detached single-family homes, duplexes and triplexes (formerly "subdivisions for rent") on the same terms as apartments: under 221(d)(4) for new construction only, and under 223(f) only for recently built properties whose certificate of occupancy is less than three years old at application. The project must be one contiguous site of five or more units, professionally managed, with no sales or partial releases during the loan term.
- Affects
- Build-to-rent developers and owners of recently completed BTR communities.
- Effective
- Immediately
- Date note
- The letter is undated on its face; HUD's PDF was created October 13, 2026.
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HUD proposes PLUS, a new lender portal that will replace parts of FHA Catalyst
A Paperwork Reduction Act notice describes FHA's Portal + Loan Underwriting System (PLUS), a new web application where multifamily and healthcare lenders request FHA project numbers and see the real-time status of their applications. HUD says PLUS will later replace the multifamily lender portal functions now in FHA Catalyst, likely in 2027. Applications are still submitted through Catalyst.
- Affects
- MAP lenders and the borrowers whose applications they file; no change to underwriting rules.
- Effective
- Comments due December 7, 2026
-
HUD proposes revisions to the NSPIRE inspection scoring notice
HUD published proposed revisions to the scoring procedures used for NSPIRE physical inspections, the standard that replaced REAC's Uniform Physical Condition Standards. HUD will consider comments before publishing a final scoring notice. The scoring notice now in use was published in 2023 (88 FR 43371).
- Affects
- Owners of HUD-insured and HUD-assisted apartment properties inspected under NSPIRE.
- Effective
- Comments due November 30, 2026
-
ROAD to Housing Act raises the statutory per-unit loan limits roughly fourfold
Section 211 of the 21st Century ROAD to Housing Act writes new base per-unit dollar amounts into the National Housing Act for Sections 207, 213, 220, 221(d)(4), 231 and 234. For example, the 221(d)(4) two-bedroom elevator base becomes $250,708, against $103,004 in HUD's CY2026 indexed table. Future indexing switches from CPI-U to the Census Bureau's price deflator for multifamily units under construction, HUD keeps its high cost percentage authority, and FHA must report on the effects within three years. HUD has not yet published a notice or Mortgagee Letter putting the new amounts into use.
- Affects
- Sponsors whose loan amount is capped by the statutory per-unit limit rather than by debt service coverage or loan-to-value, most often in high-cost markets.
- Effective
- Enacted July 11, 2026; HUD has not published implementing guidance
-
HUD proposes to rescind its 2024 Federal Flood Risk Management Standard rule
The proposed rule would generally restore HUD's floodplain and wetlands regulations to where they stood before the April 2024 FFRMS final rule, while keeping some flexibilities. Executive Order 14148 revoked an order that formed a basis for the 2024 rule. Until a final rule is published, the 2024 rule stays in force.
- Affects
- Sponsors of FHA-insured apartment projects in or near floodplains.
- Effective
- Comment period closed September 8, 2026; no final rule as of October 31, 2026
-
Environmental assessments on projects over 200 units no longer go to a HUD clearance officer
HUD removed the requirement in 24 CFR part 50 that environmental assessments for projects over 200 dwelling units or beds be sent to a Field or Program Environmental Clearance Officer for review and comment. All other environmental review requirements still apply. HUD said it will update guidance such as MAP Guide 9.2.2.E to match.
- Affects
- Sponsors of new construction and substantial rehabilitation projects over 200 units.
- Effective
- June 22, 2026
-
CY2026 high cost percentages, substantial rehab threshold and large-loan threshold
Mortgagee Letter 2026-05 sets every listed base city at a 270% high cost percentage, with up to 315% available project by project in High Cost Areas and 405% in Alaska, Hawaii, Guam and the U.S. Virgin Islands. The substantial rehabilitation base rises to $20,406 per unit (2.3% CPI-U). The large-loan threshold stays at $130 million.
- Affects
- Every 221(d)(4), 223(f), 220 and 231 deal sized against the statutory limits, and any rehab near the substantial rehabilitation line.
- Effective
- January 1, 2026, for applications not yet initially endorsed
-
CY2026 statutory mortgage limits published, up 2.3%
HUD's annual indexing notice raises the basic per-unit statutory limits for Sections 207, 207/223(f), 213, 220, 221(d)(4), 231 and 234 by the 2.3% CPI-U adjustment. Example: 221(d)(4) two-bedroom elevator, $103,004 before the high cost percentage.
- Affects
- Every FHA multifamily loan sized against the statutory limit.
- Effective
- January 1, 2026
-
MAP Guide environmental rules eased: railroad vibration, pipelines, fall hazards, noise
Mortgagee Letter 2026-04 removes the railroad vibration review the 2020 MAP Guide added at 9.6.8.K, returns to the 2011 MAP Guide approach for pressurized pipelines and high-voltage power lines, updates the fall hazard rules, and clarifies what counts as a noise-sensitive outdoor use.
- Affects
- Sites near rail lines, pipelines, power lines and noise sources, mostly new construction.
- Effective
- Immediately, for applications not yet initially endorsed
-
2021 IECC and ASHRAE 90.1-2019 energy code mandate rescinded
HUD and USDA rescinded their April 2024 final determination that required newly built HUD-financed housing, including FHA-insured multifamily, to meet the 2021 IECC (buildings up to three stories) or ASHRAE 90.1-2019 (four or more stories), along with the notices that had pushed back its compliance dates. A federal court had already vacated the 2024 determination on March 5, 2026. Covered programs return to the energy standards in effect before April 26, 2024.
- Affects
- Developers of 221(d)(4), 220 and 231 new construction.
- Effective
- May 1, 2026
-
Draft Mortgagee Letter on MAP efficiency posted for comment (not final)
A HUD drafting-table document, "Multifamily Improvements for MAP Efficiency," proposes making discount fees mortgageable inside the 3.5% lender fee cap, a 4.5% cap (6.5% with bonds) for loans of $2 million or less, more delegation to regional offices and more latitude on third-party reports. It has not been issued as a final Mortgagee Letter, so the current rules stand.
- Affects
- Small-balance borrowers and MAP lenders, if it is finalized.
- Effective
- Not in effect
-
30-day notice before eviction for nonpayment revoked on assisted properties
HUD revoked the 2021 interim rule and 2024 final rule that required owners of properties with project-based rental assistance to give tenants 30 days' written notice before filing an eviction for nonpayment of rent. Notice periods return to the pre-2021 rules, which range from 5 to 30 days depending on the HUD program and state and local law.
- Affects
- Owners of HUD-insured properties that also carry Section 8 project-based or other project rental assistance.
- Effective
- March 30, 2026
-
Middle Income Housing option for 221(d)(4): 90% loan-to-cost at 1.11x
Mortgagee Letter 2026-01 replaces ML 2025-02. A 221(d)(4) deal that restricts at least half of its units to households at or below 120% of area median income, under a recorded use restriction tied to a state or local middle-income program (or a military Rental Partnership Program), is underwritten at 90% loan-to-cost and 1.11x debt service coverage with a 7% vacancy factor. The restriction must last at least 10 years (never less than 5 with a waiver). Not available for Sections 220, 231, risk share or 232.
- Affects
- Developers of workforce and middle-income apartments using 221(d)(4).
- Effective
- Immediately, for applications not yet initially endorsed
-
MIP cut to 0.25% for every FHA multifamily program
The final notice sets the mortgage insurance premium at 0.25% a year (and 0.25% upfront) for every FHA multifamily program, the statutory floor. It eliminates the Green, Affordable and Broadly Affordable MIP categories and voids the green riders and energy reporting on loans that closed under the green MIP. A market-rate 223(f) had paid 0.60% a year with 1.00% upfront, and a market-rate 221(d)(4) 0.65%.
- Affects
- Every new FHA multifamily loan, and every owner refinancing an older one.
- Effective
- Applications submitted or amended on or after October 1, 2025 and not yet initially endorsed
-
HUD proposes a flat 0.25% MIP for all multifamily programs
The proposed notice would have set MIP at 0.25% for all FHA multifamily insurance programs and eliminated the reduced-premium categories created in 2016. It was finalized, with minor revisions, by the September 23, 2025 notice.
- Affects
- All FHA multifamily borrowers.
- Effective
- Comments were due July 28, 2025
-
HUD rescinds its 2021 "Subdivisions for Rent" restriction memo
HUD's Office of Multifamily Production rescinded the May 14, 2021 memo restricting single-family rental subdivisions and said such projects would be decided case by case until replacement guidance issued. Mortgagee Letter 2026-12 is that guidance.
- Affects
- Build-to-rent developers.
- Effective
- April 28, 2025
-
CY2025 high cost percentages; substantial rehab threshold $19,948
Mortgagee Letter 2025-11 set CY2025 base city high cost percentages at 270% (405% in Special Limit Areas), raised the substantial rehabilitation base to $19,948 per unit (3.4% CPI-U) and set the large-loan threshold at $130 million. Replaced for 2026 by ML 2026-05.
- Affects
- Deals sized against the statutory limits in 2025.
- Effective
- January 2025
-
Higher leverage and lower coverage for 221(d)(4) and 223(f)
Mortgagee Letter 2025-03 raises the maximum loan-to-value or loan-to-cost for market-rate deals from 85% to 87% and lowers the minimum debt service coverage from 1.176x to 1.15x. Affordable deals go from 87% to 90% and from 1.15x to 1.11x. The 223(f) cash-out limit (80% of value or the cost to refinance) did not change. The printed MAP Guide still shows the old ratios.
- Affects
- Every 221(d)(4) and 223(f) borrower. Not Section 232 or risk share.
- Effective
- Immediately, for loans not yet initially endorsed
-
First Middle Income Housing option for 221(d)(4)
Mortgagee Letter 2025-02 created a 221(d)(4) tier at 90% loan-to-cost and 1.11x coverage for projects with at least 50% of units targeted to incomes up to 120% of area median, under a use restriction monitored annually by a state or local government. Fully superseded by ML 2026-01.
- Affects
- Middle-income 221(d)(4) developers.
- Effective
- January 8, 2025
-
CY2025 statutory mortgage limits published
HUD's annual indexing notice adjusted the basic per-unit statutory limits for the multifamily programs for calendar year 2025. Replaced by the CY2026 notice.
- Affects
- Loans sized against the statutory limit in 2025.
- Effective
- January 1, 2025
-
Lenders may advance up to 1% of the loan before borrower funds are fully spent
Where funds the borrower deposited with the lender are not fully used at the initial advance, the lender may now disburse up to 1% of the initially endorsed mortgage amount before the borrower's funds must be disbursed in full. HUD made the change to remove servicing problems that arise when loans are pooled into Ginnie Mae securities before the borrower's funds are spent.
- Affects
- Construction borrowers using insurance of advances, and their lenders.
- Effective
- January 13, 2025
-
30-day eviction notice rule finalized for assisted properties
HUD finalized a rule requiring owners of properties with project-based rental assistance, and public housing agencies, to give 30 days' written notice before filing an eviction for nonpayment of rent. Revoked effective March 30, 2026.
- Affects
- Owners of HUD-insured properties with project-based rental assistance.
- Effective
- January 13, 2025 (revoked March 30, 2026)
-
223(f) opened to manufactured home communities owned by mission-driven borrowers
Mortgagee Letter 2024-11 launched the Manufactured Home Community Program: 223(f) purchase or refinance of existing manufactured home communities, and permanent financing of newly built or rehabilitated ones once stabilized, for states, local governments, resident-owned communities, cooperatives, nonprofits, CDFIs, Indian Tribes and other entities HUD approves. HUD Headquarters chooses which regions process the applications.
- Affects
- Nonprofit, public, tribal and resident-owned buyers of manufactured home communities.
- Effective
- On issue
-
HUD and USDA adopt the 2021 IECC and ASHRAE 90.1-2019 for new construction
The final determination required newly built HUD- and USDA-financed housing, including FHA-insured multifamily, to meet the 2021 IECC (low-rise) or ASHRAE 90.1-2019 (four or more stories). HUD delayed the FHA multifamily compliance dates in March 2025 and again later; a federal court vacated the determination on March 5, 2026, and the agencies rescinded it on May 1, 2026.
- Affects
- Developers of FHA-insured new construction.
- Effective
- May 28, 2024 (determination); rescinded May 1, 2026
-
Federal Flood Risk Management Standard rule for HUD-financed projects
HUD revised its floodplain and wetlands rules (24 CFR part 55) to implement the Federal Flood Risk Management Standard, which defines a wider floodplain with a preference for a climate-informed science approach. Programs that follow chapter 9 of the MAP Guide, including FHA multifamily, had to comply with the part 55 changes by January 1, 2025. HUD proposed rescinding the rule on July 10, 2026.
- Affects
- FHA multifamily projects in or near floodplains.
- Effective
- May 23, 2024; FHA multifamily compliance January 1, 2025
-
CY2024 statutory mortgage limits published
HUD's annual indexing notice adjusted the basic per-unit statutory limits for the multifamily programs for calendar year 2024.
- Affects
- Loans sized against the statutory limit in 2024.
- Effective
- January 1, 2024
Questions about these changes
What changed in HUD multifamily lending in 2025 and 2026?
The biggest changes: higher leverage and lower coverage for 221(d)(4) and 223(f) (Mortgagee Letter 2025-03, January 2025); a flat 0.25% MIP for every program on applications from October 1, 2025 (90 FR 45789); a Middle Income tier for 221(d)(4) at 90% and 1.11x (ML 2026-01); build-to-rent eligibility (ML 2026-12); and much higher statutory loan limits in the ROAD to Housing Act, which HUD has not yet implemented.
Is there a new MAP Guide?
No. The 2020 MAP Guide, effective March 18, 2021, is still the edition in force. HUD amends it piecemeal through Mortgagee Letters, which is why several printed ratios and environmental rules in it are out of date. HUD cited the 2020 MAP Guide as current in Mortgagee Letters issued in May 2026.
Are the ROAD to Housing Act loan limits usable yet?
Not as of October 31, 2026. The law was enacted July 11, 2026 and writes new per-unit base amounts into the National Housing Act, but HUD has not published a Federal Register notice or Mortgagee Letter putting them into use. Loans are still sized on the CY2026 indexed limits times the high cost percentage.
How this list is built. We read each HUD Mortgagee Letter issued since 2024 and search the Federal Register for HUD documents on FHA multifamily mortgage insurance, then summarize only what the primary text says. Single-family, Section 232 healthcare and purely administrative notices are left out. Drafts and proposals are marked as such and are not rules until HUD finalizes them. Endorsement Index is not affiliated with HUD or FHA.