HUD 223(f) Commercial Space Limits

Do HUD 223(f) Loans Allow for Commercial Development?

Do HUD 223(f) Loans Allow for Commercial Development?

If you're a multifamily investor interested in purchasing or refinancing a property with a HUD 223(f) loan, you might be wondering if you're allowed to rent some of your space to commercial tenants-- and the answer is yes. HUD 223(f) loans allow for commercial development, albeit with somewhat strict limits: commercial tenants are restricted to using 25% of net rentable area and must not generate more than 20% of the project's effective gross income.