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
1. 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).
2. Repairs and replacement must not exceed
published HUD costs.
3. A property can qualify for substantial rehab
if two or more major building components
are being substantially replaced regardless
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