HUD 232 Commercial Limits

Do HUD 232 Loans Allow for Commercial Development?

Do HUD 232 Loans Allow for Commercial Development?

HUD 232 loans allow for a small amount of commercial development, the exact amount of which varies by loan type. For HUD 232 new construction and substantial rehabilitation loans, commercial space is limited to "10% of the gross floor area of the project and 15% of the gross project income." If a space is only intended to serve the project's residents, it won't be counted towards the 10% area limit and 15% income limit.