U.S. Department of Housing & Urban Development (HUD) has just terminated its debt service reserve requirements on 223(f) refinance and acquisition loans for existing multifamily properties. HUD had previously implemented these requirements in April 2020 in response to the economic instability and increased risk environment caused by COVID-19.  Such requirements included a 9-month debt reserve on market rate projects and up to a 12-month debt service reserve on unsubsidized affordable projects, as more detailed in this article. These requirements were to remain in effect until HUD determined that the real estate markets were no longer adversely impacted by COVID-19. According to HUD, with its release of HUD Mortgagee Letter 2022-03, that time has now come. Additional details are available in HUD's press release.

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