FHA-ORCF's Lean 232 / Email Blast, November 14, 2024

Office of Housing sent this bulletin at 11/14/2024 08:30 AM EST

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November 14, 2024

Clarification on Allowable Repairs as Necessary Costs of Refinancing in a Section 232/223(f) Transaction

OHP is working on guidance that will clarify the appropriate implementation of the statutory language “necessary costs of refinancing” under Section 223(f)(4) of the National Housing Act.

In the interim, Lenders may only include in a Section 232/223(f) refinancing application requests to mortgage the cost of repairs that are necessary to comply with requirements related to life, health, and safety of occupants (e.g., installation of smoke detectors and radon mitigation measures), environmental requirements, associated issuance of permits, and/or federal, state and local regulatory requirements.

This standard applies to all 223(f) applications received on or after November 12, 2024.

Keywords: 223(f)

Past Lean 232 Updates are available online.

Have questions about the Lean 232 Program? Please contact LeanThinking@hud.gov.

For more information on the Lean 232 Program, check out: http://www.hud.gov/healthcare.

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