HUD grant to buy land, build, and rent

[Ryan White]

There is a small incorporated town in California that I have a rapport with many of the City Council members, including City Planner, City Manager, and Mayor. Another business venture brought me to the City, but I was presented with a development opportunity, and I'd like to ask your advice.

The city is in need of elderly rental housing; there is an apartment complex near the intended parcel, and it has a long waiting list, according to the City Manager. He informed me that there is government funding available for these types of projects, and combined with my rapport with the City, it would be a development would be fast-tracked.

This would be multifamily. I would almost assuredly do a modular development to keep costs down.

Has anyone ever used a HUD grant before? I'm trying to determine the viability of the project now, and looking at competitive rental costs and building costs. I believe I read that for-profit corporations, which would be my situation, the money would be treated as a loan. I can't find any information on the terms of the loan. Any advice you could give to me?