SP Investment Fund LLC is a Los Angeles, California-based organization that invests in affordable housing on a national basis. SP Investment Fund recently closed approximately $20 million in loans from the U.S. Department of Housing and Urban Development’s (HUD’s) 223(f) loan program in connection with the renovation of the Raymond Watkin Apartments and John Guy Prindle Apartments.
In the most recent year for which data is available, HUD insured mortgages for 500 projects with a total of more than 70,000 units. Section 223(f), which is one of HUD’s most popular insured mortgage loan programs, is used to insure mortgage loans for existing multifamily rental housing. Section 223(f) loans are available to both for-profit and nonprofit entities and allow long-term mortgages up to a period of 35 years. In order to be eligible, a property must have a minimum of five 5 residential units with each unit having a complete kitchen and bathroom.
The 223(f) loan program can be used for straight acquisitions, with or without renovation, and also for refinancing. If renovation is involved, any non-critical property repairs must be completed within 12 months of the loan closing. Typically, residential developments that require the replacement of more than one major property system are not eligible under this loan program.
