Housing Assistance: An Inventory of Fiscal Year 2010 Programs, Tax Expenditures, and Other Activities

U.S. Government Accountability Office

Administering Agency/Entity	Department of Housing and Urban Development
Short Description	Enables HUD to provide reinsurance on multifamily housing projects whose mortgage loans are originated, underwritten, serviced, and disposed of by a Qualified Participating Entity (QPE) or their approved lenders, to support and encourage the production and preservation of affordable housing. HUD's mortgage credit enhancements are used to support the underwriting and production strengths of Fannie Mae, Freddie Mac, and other qualified federal, state, and local public financial and housing institutions (QPEs). The agreements provide for risk-sharing on a 50-50 basis. Currently, only Fannie Mae and Freddie Mac have active risk-sharing programs with HUD.
Primary Purpose	Assistance for financing rental housing
Type of Housing Supported	Rental Housing
Type of Assistance	Insured loan
Fiscal Year 2010 Obligations	Expected credit subsidy costs are less than $500,000 for loan commitments made in fiscal year 2010. These estimates are revised in subsequent years and the ultimate cost will not be known until the loans have matured, which in some cases may be 30 years. This loan program is part of the General Insurance and Special Risk Insurance Fund, which houses a wide range of mortgage insurance products, including insurance for loans to develop, rehabilitate, and refinance multifamily rental housing, nursing home facilities, and hospitals.