What changed in HUD multifamily | Endorsement Index

Build-to-rent communities become eligible for FHA multifamily insurance

Tue, 13 Oct 2026 12:00:00 GMT

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.

Status: In effect. Effective: Immediately. Affects: Build-to-rent developers and owners of recently completed BTR communities.

Source: HUD Mortgagee Letter 2026-12, Build-To-Rent Developments Underwriting Eligibility

HUD proposes PLUS, a new lender portal that will replace parts of FHA Catalyst

Thu, 08 Oct 2026 12:00:00 GMT

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.

Status: Proposed. Effective: Comments due December 7, 2026. Affects: MAP lenders and the borrowers whose applications they file; no change to underwriting rules.

Source: 91 FR 64387, FHA Catalyst: Multifamily Applications, and Portal + Loan Underwriting System (Oct. 8, 2026)

HUD proposes revisions to the NSPIRE inspection scoring notice

Tue, 29 Sep 2026 12:00:00 GMT

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).

Status: Proposed. Effective: Comments due November 30, 2026. Affects: Owners of HUD-insured and HUD-assisted apartment properties inspected under NSPIRE.

Source: 91 FR 61432, National Standards for the Physical Inspection of Real Estate: Scoring Notice (Sept. 29, 2026)

ROAD to Housing Act raises the statutory per-unit loan limits roughly fourfold

Sat, 11 Jul 2026 12:00:00 GMT

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.

Status: Enacted, HUD implementation pending. Effective: Enacted July 11, 2026; HUD has not published implementing guidance. 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.

Source: Public Law 119-101, 21st Century ROAD to Housing Act, section 211

HUD proposes to rescind its 2024 Federal Flood Risk Management Standard rule

Fri, 10 Jul 2026 12:00:00 GMT

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.

Status: Proposed. Effective: Comment period closed September 8, 2026; no final rule as of October 31, 2026. Affects: Sponsors of FHA-insured apartment projects in or near floodplains.

Source: 91 FR 42685, Rescission of Floodplain Management and Protection of Wetlands rule (July 10, 2026)

Environmental assessments on projects over 200 units no longer go to a HUD clearance officer

Fri, 22 May 2026 12:00:00 GMT

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.

Status: In effect. Effective: June 22, 2026. Affects: Sponsors of new construction and substantial rehabilitation projects over 200 units.

Source: 91 FR 30209, Removal of Environmental Clearance Officer Review for projects over 200 units (May 22, 2026)

CY2026 high cost percentages, substantial rehab threshold and large-loan threshold

Wed, 20 May 2026 12:00:00 GMT

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.

Status: In effect. Effective: January 1, 2026, for applications not yet initially endorsed. Affects: Every 221(d)(4), 223(f), 220 and 231 deal sized against the statutory limits, and any rehab near the substantial rehabilitation line.

Source: HUD Mortgagee Letter 2026-05, Annual Revisions to Base City High Cost Percentage and High Cost Areas

CY2026 statutory mortgage limits published, up 2.3%

Wed, 06 May 2026 12:00:00 GMT

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.

Status: In effect. Effective: January 1, 2026. Affects: Every FHA multifamily loan sized against the statutory limit.

Source: 91 FR 24597, Annual Indexing of Basic Statutory Mortgage Limits for Multifamily Housing Programs, CY2026 (May 6, 2026)

MAP Guide environmental rules eased: railroad vibration, pipelines, fall hazards, noise

Mon, 04 May 2026 12:00:00 GMT

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.

Status: In effect. Effective: Immediately, for applications not yet initially endorsed. Affects: Sites near rail lines, pipelines, power lines and noise sources, mostly new construction.

Source: HUD Mortgagee Letter 2026-04, Updates to Multiple Environmental Requirements for the MAP Guide (May 4, 2026)

2021 IECC and ASHRAE 90.1-2019 energy code mandate rescinded

Fri, 01 May 2026 12:00:00 GMT

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.

Status: In effect. Effective: May 1, 2026. Affects: Developers of 221(d)(4), 220 and 231 new construction.

Source: 91 FR 23450, Rescission of Final Determination: Adoption of Energy Efficiency Standards (May 1, 2026)

Draft Mortgagee Letter on MAP efficiency posted for comment (not final)

Thu, 26 Feb 2026 12:00:00 GMT

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.

Status: Draft. Effective: Not in effect. Affects: Small-balance borrowers and MAP lenders, if it is finalized.

Source: HUD draft Mortgagee Letter, Multifamily Improvements for MAP Efficiency (drafting table, Feb. 2026)

30-day notice before eviction for nonpayment revoked on assisted properties

Thu, 26 Feb 2026 12:00:00 GMT

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.

Status: In effect. Effective: March 30, 2026. Affects: Owners of HUD-insured properties that also carry Section 8 project-based or other project rental assistance.

Source: 91 FR 9449, Revocation of the 30-Day Notification Requirement (Feb. 26, 2026)

Middle Income Housing option for 221(d)(4): 90% loan-to-cost at 1.11x

Thu, 22 Jan 2026 12:00:00 GMT

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.

Status: In effect. Effective: Immediately, for applications not yet initially endorsed. Affects: Developers of workforce and middle-income apartments using 221(d)(4).

Source: HUD Mortgagee Letter 2026-01, Creating a Middle Income Housing option for 221(d)(4) (Jan. 22, 2026)

MIP cut to 0.25% for every FHA multifamily program

Tue, 23 Sep 2025 12:00:00 GMT

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%.

Status: In effect. Effective: Applications submitted or amended on or after October 1, 2025 and not yet initially endorsed. Affects: Every new FHA multifamily loan, and every owner refinancing an older one.

Source: 90 FR 45789, Changes in Mortgage Insurance Premiums Applicable to FHA Multifamily Insurance Programs (Sept. 23, 2025)

HUD proposes a flat 0.25% MIP for all multifamily programs

Thu, 26 Jun 2025 12:00:00 GMT

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.

Status: Superseded. Effective: Comments were due July 28, 2025. Affects: All FHA multifamily borrowers.

Source: 90 FR 27331, Proposed Changes in Mortgage Insurance Premiums for FHA multifamily programs (June 26, 2025)

HUD rescinds its 2021 "Subdivisions for Rent" restriction memo

Mon, 28 Apr 2025 12:00:00 GMT

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.

Status: Superseded. Effective: April 28, 2025. Affects: Build-to-rent developers.

Source: HUD Office of Multifamily Production, Notice of Immediate Rescission of "Subdivisions for Rent" memo (Apr. 28, 2025)

CY2025 high cost percentages; substantial rehab threshold $19,948

Mon, 14 Apr 2025 12:00:00 GMT

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.

Status: Superseded. Effective: January 2025. Affects: Deals sized against the statutory limits in 2025.

Source: HUD Mortgagee Letter 2025-11, Annual Revisions to Base City High-Cost Percentage and High-Cost Areas (Apr. 14, 2025)

Higher leverage and lower coverage for 221(d)(4) and 223(f)

Wed, 08 Jan 2025 12:00:00 GMT

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.

Status: In effect. Effective: Immediately, for loans not yet initially endorsed. Affects: Every 221(d)(4) and 223(f) borrower. Not Section 232 or risk share.

Source: HUD Mortgagee Letter 2025-03, Multifamily Changes in DSCR and LTV/LTC (Jan. 8, 2025)

First Middle Income Housing option for 221(d)(4)

Wed, 08 Jan 2025 12:00:00 GMT

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.

Status: Superseded. Effective: January 8, 2025. Affects: Middle-income 221(d)(4) developers.

Source: HUD Mortgagee Letter 2025-02, Creating a Middle Income Housing option for 221(d)(4) (Jan. 8, 2025)

CY2025 statutory mortgage limits published

Tue, 31 Dec 2024 12:00:00 GMT

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.

Status: Superseded. Effective: January 1, 2025. Affects: Loans sized against the statutory limit in 2025.

Source: 89 FR 107155, Annual Indexing of Basic Statutory Mortgage Limits for Multifamily Housing Programs, CY2025 (Dec. 31, 2024)

Lenders may advance up to 1% of the loan before borrower funds are fully spent

Fri, 13 Dec 2024 12:00:00 GMT

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.

Status: In effect. Effective: January 13, 2025. Affects: Construction borrowers using insurance of advances, and their lenders.

Source: 89 FR 100739, Disbursing Multifamily Mortgage Proceeds with Mortgagor-Provided Funds (Dec. 13, 2024)

30-day eviction notice rule finalized for assisted properties

Fri, 13 Dec 2024 12:00:00 GMT

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.

Status: Revoked. Effective: January 13, 2025 (revoked March 30, 2026). Affects: Owners of HUD-insured properties with project-based rental assistance.

Source: 89 FR 101270, 30-Day Notification Requirement Prior to Termination of Lease for Nonpayment of Rent (Dec. 13, 2024)

223(f) opened to manufactured home communities owned by mission-driven borrowers

Tue, 04 Jun 2024 12:00:00 GMT

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.

Status: In effect. Effective: On issue. Affects: Nonprofit, public, tribal and resident-owned buyers of manufactured home communities.

Source: HUD Mortgagee Letter 2024-11, Utilizing Section 223(f) for Manufactured Home Community Program (June 4, 2024)

HUD and USDA adopt the 2021 IECC and ASHRAE 90.1-2019 for new construction

Fri, 26 Apr 2024 12:00:00 GMT

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.

Status: Rescinded. Effective: May 28, 2024 (determination); rescinded May 1, 2026. Affects: Developers of FHA-insured new construction.

Source: 89 FR 33112, Final Determination: Adoption of Energy Efficiency Standards for New Construction (Apr. 26, 2024)

Federal Flood Risk Management Standard rule for HUD-financed projects

Tue, 23 Apr 2024 12:00:00 GMT

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.

Status: In effect; rescission proposed. Effective: May 23, 2024; FHA multifamily compliance January 1, 2025. Affects: FHA multifamily projects in or near floodplains.

Source: 89 FR 30850, Floodplain Management and Protection of Wetlands; Building to the FFRMS (Apr. 23, 2024)

CY2024 statutory mortgage limits published

Tue, 13 Feb 2024 12:00:00 GMT

HUD's annual indexing notice adjusted the basic per-unit statutory limits for the multifamily programs for calendar year 2024.

Status: Superseded. Effective: January 1, 2024. Affects: Loans sized against the statutory limit in 2024.

Source: 89 FR 10089, Annual Indexing of Basic Statutory Mortgage Limits for Multifamily Housing Programs, CY2024 (Feb. 13, 2024)