Investors and developers who use a HUD 223(f) loan to acquire or refinance a multifamily property have the choice to make that property affordable. Typically, this involves providing below-market rents and taking advantage of either the HUD Section 8 program or Low Income Housing Tax Credits (LIHTCs).
501(3)(c) organizations are charitable entities (i.e. trusts, corporations, etc) that are exempt from paying federal income tax. 501(c)(3) is the most common type of nonprofit and/or charitable organization in the US. Common examples are churches, universities, and charitable foundations. Some 501(c)(3) organizations use HUD 223(f) loans to acquire or refinance affordable properties for certain underserved populations.