# Section 542(c) Housing Finance Agency Risk Sharing Program
> **US Department of Housing and Urban Development** · Final rule. · Published 2020-12-22 · Effective 2021-01-21 · 85 FR 83435
## Document
- **Document number:** 2020-27914
- **Category:** hud-fha
- **Agency:** US Department of Housing and Urban Development
- **Federal Register citation:** 85 FR 83435
- **CFR reference:** 24 CFR 266
- **Publication date:** 2020-12-22
- **Effective date:** 2021-01-21
- **Docket:** Docket No FR-5881-F-02
## Abstract

Through the Section 542(c) Housing Finance Agency (HFA) Risk Sharing program, HUD enters into risk-sharing agreements with qualified state and local HFAs so they can provide FHA (Federal Housing Administration) mortgage insurance and credit enhancement for new loans on multifamily affordable housing properties. This final rule amends the program's existing regulations, to better align with the policies of other HUD programs, reflect current industry and HUD practices, and conform to statutory amendments. Additionally, this rule provides HUD with greater flexibility to operate the Section 542(c) HFA Risk Sharing program more efficiently and provides HFAs which accept a greater share of the risk of loss on mortgages insured under the program with expanded program delegation. This rule also updates outdated references and terminology and clarifies other provisions.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2020/12/22/2020-27914/section-542c-housing-finance-agency-risk-sharing-program)
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