Audree Grubesic, owner of Modular Sure Site and OffsiteDirt.com, discussed her relationship with Gershman Investment Corporation in an interview published on June 7, 2023. The discussion focused on HUD-insured financing for multifamily housing, including traditional and offsite construction.
Gershman is a private bank that has worked in HUD-insured financing since the 1960s. It focuses on HUD's multifamily housing program, not single-family financing.
Gershman is one of 10 lenders approved by HUD to underwrite loans and receive loan insurance.
The article says developers are turning to HUD-insured financing because of a credit contraction in private banking and limited lending options.
Audree Grubesic said her recent focus has been modular construction. She works with developers on pre-construction planning and on selecting modular construction partners.
She said she has a network of 30 to 40 factories.
Developers can face problems when lenders withdraw or run into funding issues. The article says this made Gershman's HUD-insured financing relevant to Modular Sure Site's clients.
HUD does not allow design-build approaches. Developers must submit complete plans and specifications for approval. The article says this can be a challenge for modular projects, where design-build is more common.
It also says clear communication between Modular Sure Site's pre-construction teams and Gershman's underwriting requirements is important.