PROGRAM OBJECTIVES:
Under this program HUD provides reinsurance on multifamily housing projects whose loans are originated, underwritten, serviced, and disposed of by qualified participating entities (QPEs) and/or its approved lenders. The program encourages the development and preservation of affordable housing. The Section 542(b) program was originally designed as a pilot to test innovative mortgage insurance and reinsurance products to provide affordable multifamily housing through a partnership between HUD and QPEs, including Government Sponsored Enterprises, financial institutions, and the Federal Housing Finance Board.

ELIGIBLE FUNCTIONAL CATEGORIES:
1. HOUSING;
- Property and Mortgage Insurance;
- Multifamily;
- Experimental and Development Projects;

WHO CAN BENEFIT FROM THIS PROGRAM:
- Individual/Family;
- Anyone/general public;
- Land/Property Owner;

WHO CAN APPLY:
- Other public institution/organization;
- Private non-profit institution/organization (includes institutions of higher education and hospitals);