Content provided by the Catalog of Federal Domestic Assistance
14.103 Interest Reduction Payments_Rental and Cooperative Housing for Lower Income Families
HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
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:
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.
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.
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.
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.
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.
Account Identification: 86-0148-0-1-604; 86-4077-0-3-371.
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.
Regional or Local Office: None. Contact the appropriate local HUD Office listed in the Catalog Address Appendix IV.
EXAMPLES OF FUNDED PROJECTS:
CRITERIA FOR SELECTING PROPOSALS: