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HUD Lending Tally Hits Lowest Level in at Least 12 Years
Lending under the U.S. Department of Housing and Urban Development’s multifamily and healthcare-property funding programs totaled $10.43 billion during the agency’s latest fiscal year ending in September, Trepp reported Monday. The tally is just under 16% lower year-over-year and represents the lowest level in at least 12 years.
The decline continued to be driven by high interest rates, according to Trepp. HUD lending spiked in 2021 to a record $38.12 billion, buoyed by record property sales volumes and low rates.
The latest annual decline was driven by lending against multifamily properties. Lending against healthcare properties, though, rose by 17% from the previous fiscal year to $3.15 billion.
“Fundamentals in the healthcare, or seniors-housing, sector have rebounded handsomely since the lockdown trough, driving interest in the sector by investors,” Trepp reported.
Greystone Funding was the most active HUD lender during the latest fiscal year, with nearly 11% of the year’s volume, said Trepp.
- ◦Financing
