HUD Outlines Section 236 Prepayment Procedures, Tenant Notice Requirements

In Section 236 multifamily housing, HUD subsidizes the interest on an owner’s mortgage. In exchange, HUD sets a basic rent, and the tenant must pay either the basic rent or 30 percent of his income, whichever is higher. A Section 236 site may also receive other forms of rent subsidy under the rent supplement, Section 236 RAP, or Section 8 project-based assistance programs.