FEDERAL
AGENCY:
HOUSING,
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
AUTHORIZATION:
National
Housing Act, as amended, Section 203(k), Public Law 95-557, 12 U.S.C.
1709, 1715(k).
To
help families repair or improve, purchase and improve, or refinance
and improve existing residential structures more than one year old.
TYPES
OF ASSISTANCE:
Guaranteed/Insured Loans.
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USES
AND USE RESTRICTIONS:
HUD
insures lenders against loss on loans. These loans may be used to
rehabilitate an existing 1 to 4 unit dwelling in one of four ways:
(1) Purchase a structure and the land on which the structure is
located and rehabilitate it; (2) purchase a structure on another
site, move it onto a new foundation on the mortgaged property and
rehabilitate it; (3) refinance the existing indebtedness and rehabilitate
such a structure; or (4) rehabilitate such a structure. Maximum
insurable mortgage loans for an occupant mortgagor are the same
as prescribed for Section 203(b) - Program 14.117. Rehabilitation
cost must be at least $5,000.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: Individual purchasers are eligible
to apply.
Beneficiary
Eligibility: Individual purchasers.
Credentials/Documentation:
Documentation regarding the characteristics of the property and
the qualifications of the borrower are assembled by the lender
and submitted with the application. This program is excluded from
coverage under OMB Circular No. A-87.
APPLICATION
AND AWARD PROCESS:
Pre-application
Coordination: None. This program is excluded
from coverage under E.O. 12372.
Application
Procedure: Application is submitted through
a HUD approved lending institution. This program is excluded from
coverage under OMB Circular Nos. A-102 and A-110.
Award
Procedure: See Application Procedure.
Deadlines:
None.
Range
of Approval/Disapproval Time: Varies.
Appeals:
The lender or HUD will state the reason for refusing an application.
The applicant may reapply subject to concurrence of the lender.
Renewals:
Not applicable.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: The maximum loan
amount is the same as Section 203(b) - Program 14.117. Value is
determined by either (a) the value of the property before rehabilitation
plus the cost of rehabilitation, or (b) 110 percent of the appraised
value of the property after rehabilitation, whichever is less. The
loan may be subordinated to an existing first mortgage, or there
may be insured advances during the rehabilitation period if the
loan is a first lien. The lender may charge the greater of $350
or an additional 1-1/2 percent supplemental loan origination fee
for the portion of the loan which is allocated to rehabilitation
when there are insured advances. Also, the lender may charge the
mortgagor fees in the nature of discounts.
Length
and Time Phasing of Assistance: The mortgage
term may extend for 30 years.
POST
ASSISTANCE REQUIREMENTS:
Reports:
Defaults in meeting the mortgage terms must be reported. All approved
mortgagees at any time upon request by FHA must furnish a copy of
their latest financial statement.
Audits:
The Department of Housing and Urban Development reserves the right
to audit the account of the mortgagee to determine its compliance
and conformance with FHA regulations and standards.
Records:
Mortgagees are required to service and maintain records in accordance
with acceptable mortgage practices of prudent lending institutions
and the FHA regulations.
FINANCIAL
INFORMATION:
Account
Identification: 86-0148-0-1-604; 86-4077-0-3-371.
Obligations:
(Loans insured) FY 01 $995,129,475; FY 02 est $1,395,800,109;
and FY 03 est $1,395,000,000.
Range
and Average of Financial Assistance:
Maximum insurable mortgage loans for an occupant mortgagor are
the same as prescribed for Section 203(b) - Program 14.117. Rehabilitation
cost must be at least $5,000.
PROGRAM
ACCOMPLISHMENTS:
The Department expects to endorse an estimated 9000 loans in 2002.
REGULATIONS,
GUIDELINES, AND LITERATURE:
HUD Residential Rehabilitation Program, no charge; Fact Sheet: Rehabilitation
Mortgage Insurance, no charge. 24 CFR 203.50.
INFORMATION
CONTACTS:
Regional
or Local Office: Persons are encouraged to contact
the Homeownership Center serving their State, or the nearest local
HUD Office. See Catalog Appendix IV for a list of offices.
Headquarters
Office: None.
Web
Site Address: http://www.hud.gov/progdesc/snglindx.html
EXAMPLES
OF FUNDED PROJECTS:
Not applicable.
CRITERIA
FOR SELECTING PROPOSALS:
Not applicable.
