Section 8 Properties in Relation to the Freddie Mac SBL Program
The Department of Housing and Urban Development (HUD) Section 8 Housing Assistance Program involves the U.S. government making payments to landlords in order to subsidize rents for nearly 5 million low-income households across the United States. The most popular Section 8 program is referred to as the Housing Choice Voucher Program, which allows tenants to move from property to property while retaining their benefits. In contrast, Section 8 project-based housing involves a landlord setting aside some or all of their building units for low-income, Section 8 tenants. In this situation, tenants cannot take their benefits with them to a new property.
In regards to the Optigo Small Balance Loan program, properties utilizing the Section 8 program are only eligible under certain circumstances. While Section 8 Housing Assistance Payment (HAP) properties are not permitted, properties utilizing market-rate Section 8 vouchers are eligible.