Ben Carson Announces New Program with Section 220 Mortgage Insurance

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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.