Seniors Housing Business describes two major takeaways from the U.S. Department of Housing and Urban Development’s (HUD’s) Section 232 Lean program as we surpass the midpoint of HUD’s fiscal year (FY) 2025. The first is increased loan volume, which is on pace to surpass $4 billion, a significant increase over the $3.1 billion recorded in FY 2024. Second is the launch of the Department of Government Efficiency (DOGE), which led to several employee departures at HUD during a time when there was already a lengthy queue of loans to process.
For more context, Seniors Housing Business spoke to Lument’s Jason Smeck about the pick-up in deal activity, the challenges of moving deals through the process, and his optimistic outlook on the days ahead.
“We expect FY 2025 loan volume in the Section 232 program to be at its highest level of the past 10 years, with the only wildcards being (1) interest rate volatility and (2) adequate staffing levels at HUD that can process and manage the application volume,” says Jason Smeck.
Read the full story
