Single Room Occupancy (SRO) housing is housing with single room dwelling units which are the occupants’ primary residences. HUD requires new construction, reconstruction of SRO units, and the conversion of non-residential space to contain either food preparation areas or bathrooms (or both). If a property is an acquisition or rehabilitation, neither of these (food preparation nor sanitary facilities) is required within each unit. However, the building itself must have shared sanitary facilities.

For more information about HUD multifamily construction loans like the HUD 221(d)(4) loan, fill out the form and a HUD lending expert will get in touch.

SRO housing provides affordable housing options for individuals who may not be able to afford larger units. It also allows for more efficient use of space, as SRO units are typically smaller than other housing units. Additionally, SRO housing can provide a sense of community and support for those living in the units.

For developers, SRO housing can be a profitable venture, as the units are typically cheaper to build and maintain than larger units. Additionally, SRO housing can provide a steady stream of income for developers, as the units are often rented out on a monthly basis.

SRO housing is not particularly profitable, and many such developments face a great deal of pressure to be converted into more profitable units. Additionally, SRO housing is not protected by city or state regulations in all areas, making it more vulnerable to conversion.

To learn more about HUD multifamily construction loans like the HUD 221(d)(4) loan, fill out the form and a HUD lending expert will get in touch.

The eligibility requirements for SRO housing depend on the type of loan being used. For HUD 221(d)(4) loans, the property must be a new construction, conversion of non-residential space, or reconstruction of SRO units. The building must have shared sanitary facilities, and if the property is an acquisition or rehabilitation, neither food preparation nor sanitary facilities are required in each unit. For more information, please refer to the Single Room Occupancy (SRO) Housing and Single Room Occupancy (SRO) Housing and the HUD 221(d)(4) Loan Program pages. To learn more about HUD multifamily construction loans like the HUD 221(d)(4) loan, fill out the form on the HUD Multifamily Construction Loans page.

The costs associated with SRO housing depend on the type of project. For new construction, conversion of non-residential space, and reconstruction of SRO units, HUD requires food preparation areas or bathrooms (or both) in each unit. If the property is an acquisition or rehabilitation, neither food preparation nor sanitary facilities are required in each unit, but the building must have shared sanitary facilities. To learn more about the costs associated with HUD multifamily construction loans like the HUD 221(d)(4) loan, contact a HUD lending expert.

Single Room Occupancy (SRO) housing is available in three different types: new construction, reconstruction of SRO units, and the conversion of non-residential space. New construction and reconstruction of SRO units must contain either food preparation areas or bathrooms (or both). If a property is an acquisition or rehabilitation, neither of these (food preparation nor sanitary facilities) is required within each unit. However, the building itself must have shared sanitary facilities. (Source)