Requesting a Flexible Subsidy Loan Deferral

SP Investment Fund focuses on investments in affordable housing and emerging technologies with social impact. Working with public- and private-sector partners to develop and finance affordable housing units with attractive designs and modern amenities, SP Investment Fund is a long-term supporter of government housing assistance programs. One such government program which was created long ago are Flexible Subsidy (Flex Sub) Loans. Flex Sub Loans are secondary loan options attached to some of the housing projects financed through the Federal Housing Administration and the US Department of Housing and Urban Development (HUD). Flexible Sub Loans must be repaid when there is prepayment or expiration of mortgage, termination of mortgage insurance, or sale of a housing project. However, housing owners may request a Flexible Subsidy Loan Deferral. To apply for a loan deferral, housing owners must submit a deferral proposal that contains their financial statements of the past three years and a pro forma operating statement indicating all the transactions to be used for project purposes. The housing owner must show evidence of attempts made to refinance, either by applying for grants or additional loans. In addition, the housing owner must pass the Real Estate Assessment Center physical inspection and comply with fair housing and civil rights laws.