In HUD literature, the terms Section 236 preservation and recapitalization are used concomitantly and interchangeably. The ambiguity that this synonymous usage creates is reflected in the vagueness of exactly what Section 236 preservation/recapitalization entails. This is further borne out by the fact that local housing offices and experts are not at all familiar with the program. Although Section 236 recapitalization initially appears to be a new program designed to re-fund multifamily housing units with Section 236 loans, it is in fact an effort by HUD to help wean property owners and program beneficiaries off IRPs and mortgage insurance.
As such, Section 236 recapitalization refers not to a new government subsidy program, but to the factual