What are the Occupancy Requirements for HUD 223(f) Loans?
HUD 223(f) Loan Occupancy Requirements
Many HUD multifamily loans have minimum property occupancy requirements, and HUD 223(f) loans are no different. HUD 223(f) financing typically requires a minimum of 85% occupancy for the last 6 months before application, which needs to be maintained until closing. Fortunately for borrowers, these loans are underwritten at slightly higher occupancies, including:
93% occupancy for market rate properties
95% for properties with at least 80% LIHTC units
97% for projects with at least 90% LIHTC or Section 8 units