Cooperative Housing – Section 213 New Construction, Sub-Rehab or Conversion
The Section 213 program provides construction and permanent financing for new cooperative buildings, sub-rehab or the conversion of existing multifamily housing to cooperative housing.
For property to qualify for substantial rehabilitation, the cost of repairs, replacements and or improvements to the existing property must meet one of the following conditions: Estimated replacement cost after completion of all repairs and replacement costs must exceed the great of either 15%of the improvements (not including costs of an addition). Cost of repairs and replacement must not exceed $6,500 per unit adjusted by the local HUD High Cost Factor. A property can qualify for substantial rehab if two or more major building components are being substantially replaced regardless of cost. Age restricted cooperatives are eligible provided the primary occupant is age 62 years or older. Conversion of existing multifamily properties to cooperative ownership is eligible provided the project qualifies under the guidelines for substantial rehabilitation.