HUD Housing Programs: Tenants’ Rights (The Green Book): 1.3.2 Section 221(d)(3) Below-Market-Interest-Rate Program
The oldest of the Federal Housing Administration’s (FHA) low- and moderate-income housing programs was the Section 221(d)(3) Below-Market-Interest-Rate (BMIR) program. Created by Congress in 1961, the program provided subsidized financing—at 3 percent mortgage rates—to private developers of rental housing for families.100 The program continued until 1968, when the Section 236 program replaced it as a vehicle for producing multifamily housing for lower income families.