FEDERAL
AGENCY:
HOUSING,
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
AUTHORIZATION:
National
Housing Act, as amended, Section 236, Public Law 90-448, 12 U.S.C.
1715.
To
provide good quality rental and cooperative housing for persons
of low-and moderate-income by providing interest reduction payments
in order to lower their housing costs.
TYPES
OF ASSISTANCE:
Direct Payments for Specified Use.
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Guaranteed/Insured Loans.
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USES
AND USE RESTRICTIONS:
Use
was limited to Section 236 insured and non-insured mortgages financed
by State or Local Housing Finance Agencies. Program is now inactive.
No new projects are being approved.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: Eligible mortgagors included nonprofit,
cooperative, builder-seller, investor-sponsor, and limited-distribution
sponsors. Public bodies did not qualify as mortgagors under this
program.
Beneficiary
Eligibility: Families and individuals, including
the elderly and handicapped or those displaced by government action
or natural disaster, eligible to receive the benefits of the subsidies
must at the time of admission fall within certain locally determined
income limits. Families with higher incomes may occupy apartments,
but may not benefit from subsidy payments.
Credentials/Documentation:
Documentation regarding the characteristics of the property and
qualifications of the mortgagor was submitted with the application.
This program is excluded from coverage under OMB Circular No.
A-87.
APPLICATION
AND AWARD PROCESS:
Pre-application
Coordination: Documentation regarding property
characteristics and mortgagor qualifications was assembled by the
mortgage and submitted with the application. The sponsor held a
preapplication conference with the local HUD field office with multifamily
processing. This program is excluded from coverage under OMB Circular
No. A-102. This program is excluded from coverage under E.O. 12372.
An environmental assessment was required for this program. No applications
for new projects are being accepted.
Application
Procedure: No applications for new projects
are being accepted. Sponsors submitted FHA Form No. 2013, application
and other documentation for FHA Review of Proposed Development,
to local HUD field office with multifamily processing or equivalent
documentation to a State or local Housing Finance Agency approved
by HUD for participation in the program. This program is excluded
from coverage under OMB Circular No. A-110.
Award
Procedure: The local HUD office or State or
local Housing Finance Agency reviewed the application to determine
site appraisal and market analysis. Market need, correct zoning,
environmental assessment and value of site fully improved were
considered. The local office granted feasible proposals a tentative
reservation of contract authority, and the sponsor was invited
to apply for mortgage commitment, at which stage(s) further technical
processing was completed. No new applications for project mortgage
insurance are being accepted.
Deadlines:
Program is inactive. No new applications are being accepted.
Range
of Approval/Disapproval Time: None.
Appeals:
None.
Renewals:
Not applicable.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: Assistance payments
are made monthly by HUD to the mortgage, and may bring the effective
interest rate paid by the mortgagor down to as low as one percent.
Benefits received in this way are passed on to those families qualifying
for assistance in the form of reduced rents. Assisted families are
required to pay for rent at least 30 percent of their adjusted income
(income after certain allowable deductions), but not in excess of
the fair market rent. This program has maintenance of effort (MOE)
requirements; see funding agency for further details.
Length
and Time Phasing of Assistance: The mortgage
term normally extends for 40 years. Interest reduction payments
may extend for the full term of the mortgage. For individual families,
assistance ceases when their income rises to the point where they
can afford the full market rent without the benefit of assistance.
POST
ASSISTANCE REQUIREMENTS:
Reports:
Any change of the mortgagor during the period of mortgage insurance
must be approved by HUD. Defaults in meeting the mortgage terms
must be reported. All mortgagors of insured projects are required
to submit an annual financial statement to HUD. Approved mortgages,
upon request by HUD, must furnish a copy of their latest financial
statement.
Audits:
The Department of Housing and Urban Development reserves the right
to audit the accounts of either the mortgage or mortgagor in order
to determine their compliance and conformance with FHA regulations
and standards.
Records:
Tenant certifications for assistance payments and annual recertification
must be forwarded to the HUD Field or Area Office by the sponsor.
Regular financial reports are also required. Mortgages must service
and maintain records in accordance with acceptable mortgage practices
and HUD regulations.
FINANCIAL
INFORMATION:
Account
Identification: 86-0148-0-1-604; 86-4077-0-3-371.
Obligations:
(Outlays) FY 01 not separately identifiable; FY 02 est not separately
identifiable; and FY 03 est not separately identifiable. Note:
Program is inactive.
Range
and Average of Financial Assistance: See uses
and use restrictions.
PROGRAM
ACCOMPLISHMENTS:
Reservations for additional projects are not being made under the
program. No additional mortgages have been insured since 1992. Cumulative
totals through September 30, 1992, were 377,680 units insured with
a value of $6,480,013,120.
REGULATIONS,
GUIDELINES, AND LITERATURE:
Fact Sheet: Rental and Co-op Housing for Lower Income Families.
No charge; 24 CFR 236 et seq.
INFORMATION
CONTACTS:
Regional
or Local Office: Contact the appropriate local
HUD Office listed in the Catalog Address Appendix IV.
Headquarters
Office: For Management Information: Director,
Office of Multifamily Housing Management, Department of Housing
and Urban Development, Washington, DC 20410. Telephone: (202)
708-3730.
Web
Site Address: http://www.hud.gov/progdesc/multindx.cfm
EXAMPLES
OF FUNDED PROJECTS:
Not applicable.
CRITERIA
FOR SELECTING PROPOSALS:
Not applicable.
