Access to Utility Service: 10.2.6.2 Section 236 Housing
Congress adopted the so-called section 236121 housing program in 1968 to replace the prior section 221(d)(3) program.122 Both programs were designed to reduce the interest-driven costs of developing new housing so that the rents would be more affordable to low-income families. Under the section 236 program, HUD provided a subsidy to the developer’s lender so that the developer’s effective interest rate would be 1%.