The Federal Housing Administration (FHA) issued a request for information (RFI) on how it can enhance its Single Family 203(k) rehabilitation mortgage insurance program. Specifically, it is looking for comments related to reducing barriers to the program’s use and feedback on ways to expand the preservation and renovation of aging housing stock as well as housing opportunities through updates to its policies and programs.

This program is used to finance the rehabilitation of an existing one-to-four-unit structures primarily used for residential purposes. Mortgages insured through the 203(k) program are used to rehabilitate an eligible structure and refinance outstanding indebtedness on the structure and real property on which it is located.

These funds also can be used to purchase and rehabilitate a structure and purchase the real property on which it is located or rehabilitate the interior space of an eligible condominium unit excluding areas under the responsibility of a condo association.

“FHA would like to offer improved options to finance the purchase or refinance of a home that needs significant rehabilitation,” Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon said. “Feedback from today’s RFI will help us advance our goals to increase housing supply, reduce vacancy and blight, and expand homeownership opportunities in all communities.”

Interested parties have until April 17 to submit their comments, though the FHA did state late-filed comments will be considered to the extent practicable.

Gordon provided specific questions for consideration, including:

• What information can you provide regarding ways in which the FHA 203(k) program does or does not meet the needs of borrowers seeking to renovate or rehabilitate their homes?
• What policies or processes governing the 203(k) program could be streamlined, modified, or eliminated to enhance your experience with the 203(k) program?
• How could FHA increase participation in the 203(k) program?
• What methods would you recommend HUD use to increase stakeholders’ awareness about FHA’s 203(k) program?
• What state or local regulations impact the use of FHA’s 203(k) program?
• The 203(k) program is currently underutilized by nonprofits and governmental entities. What type of changes would encourage more nonprofits and governmental entities to increase their participation in the program?
• What technology solutions could improve the availability of, or facilitate, the 203(k) program?