Ben Carson Announces New Program with Section 220 Mortgage Insurance

August 9, 2019

On August 9, 2019 the Opportunity Zone Expo came to New York with Ben Carson, the Secretary of the Department of Housing and Urban Development, and Scott Turner, Executive Director of the White House Opportunity & Revitalization Council, as keynote speakers and a myriad of educational panels, moderated by industry experts. The Opportunity Zone Expo is the country’s largest conference for developers, brokers, CPAs, attorneys, government officials, investors and real estate professionals that have in-depth experience with Opportunity Zones.

Ben Carson gave a speech announcing a new HUD program available in Opportunity Zones. Developers who redevelop mixed-use buildings in Opportunity Zones will now be eligible to receive Section 220 mortgage insurance for projects that derive up to 30 percent of gross income from commercial space. Previously, that had been limited to 15 percent. “This will hopefully incentivize private investment, which will spur grocery stores, so we won’t have these food deserts,” Carson said, referring to neighborhoods with a lack of food stores and supermarkets.

“The Federal Housing Administration is also expected to unveil a new set of incentives for Opportunity Zones”, Carson said, “which will lower mortgage and application fees for loans the agency issues.” Carson also promoted the Trump administration’s vision for the program, saying the president intends to “foster the ingenuity of the private sector. There’s no lack of innovation or entrepreneurship in this nation. What gets in the way is the regulations and zoning restrictions,” Carson told the crowd. “That’s what we are working together for.”

If you have any questions about this announcement or anything else surrounding Opportunity Zones, please don’t hesitate to contact me.

2 minutes
Ashley Dillard, CCIM

Senior Director

Ashley has an extensive knowledge of the Chicago commercial real estate market. After graduating from University of Kansas with a degree in architectural studies, she worked in Kansas City as a commercial leasing agent at a 2.1 million square foot office park. While working for an institutional owner, she learned valuable skills such as client reporting, communication and accountability.

READ FULL BIO

Did you find this helpful?

Share on Facebook | Tweet this | Post to LinkedIn |

Opportunity Zones By The Numbers

8,764 CENSUS TRACTS

The total number of census tracts certified as Opportunity Zones by the U.S. Treasury.

$6.1 TRILLION

Potential unrealized capital gains eligible for Qualified Opportunity Fund investment and tax treatment.

$100 BILLION

Treasury Secretary Steven Mnuchin’s estimate of private capital that will flow into Opportunity Zones.