To
assist in the purchase or rehabilitation of housing in older, declining
urban areas.
TYPES
OF ASSISTANCE:
Guaranteed/Insured Loans. Place Cursor Here for Definition
USES
AND USE RESTRICTIONS:
HUD
insures lenders against loss on mortgage loans under other sections
of the National Housing Act, e.g., Section 221(d)(3) or (d)(4),
pursuant to Section 223(e). Claims are paid from the Special Risk
Insurance Fund, but this is not a separate program. The determination
to use Section 223(e) is at the discretion of HUD. These loans may
be used to finance the purchase, repair, rehabilitation, and construction
of housing in older, declining urban areas where conditions are
such that certain normal eligibility requirements for mortgage insurance
under a particular program cannot be met. The property must be an
acceptable risk giving consideration to the need for providing adequate
housing for low-and moderate-income families.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: HUD-approved mortgages.
Beneficiary
Eligibility: For single family purposes, an
individual or family is eligible to apply through HUD approved
mortgages. Multifamily sponsorship is determined by applicable
program requirements.
Credentials/Documentation:
For single family applications, documentation regarding the characteristics
of the property and the qualifications of the mortgagor are assembled
by the mortgage and submitted with the application. Documentation
required for multifamily applications is determined by applicable
program requirements. This program is excluded from coverage under
OMB Circular No. A-87.
Pre-application
Coordination: Sponsors of multifamily housing
located in older, declining urban areas, may arrange a preapplication
conference with the local HUD field office for advice on the best
program for the sponsor, and to discuss HUD procedures and requirements.
This program is excluded from coverage under OMB Circular No. A-102.
This program is eligible for coverage under E.O. 12372, "Intergovernmental
Review of Federal Programs." An applicant should consult the office
or officials designated as the single point of contact in his or
her State for more information on the process the State requires
to be followed in applying for assistance, if the State has selected
the program for review.
Application
Procedure: Applications may be submitted at
any time for review and approval or disapproval to the local HUD
Field Office through a HUD-approved lending institution. This
program is excluded from coverage under OMB Circular No. A-110.
Award
Procedure: See Application Procedure.
Deadlines:
None.
Range
of Approval/Disapproval Time: Varies.
Appeals:
HUD will state the reasons for refusing an application. The applicant
may request the HUD-approved mortgage to seek HUD reconsideration.
Renewals:
Not applicable.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: Mortgages for housing
eligible under the special program may be insured under any one
of several HUD programs. The maximum amount of the loan, the downpayment,
and other mortgage terms vary according to the HUD program under
which the mortgage is insured. The mortgage insurance premium is
one-half percent per year on the outstanding loan balance. Fees
are established under the applicable HUD program. This program has
maintenance of effort (MOE) requirements; see funding agency for
further details.
Length
and Time Phasing of Assistance: Not applicable.
POST
ASSISTANCE REQUIREMENTS:
Reports:
Defaults in meeting the mortgage terms must be reported. All approved
lenders at any time 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 account of the lender to determine its compliance
and conformance with HUD regulations and standards.
Records:
Mortgages are required to service and maintain records in accordance
with acceptable practices of prudent lending institutions and
the HUD regulations.
FINANCIAL
INFORMATION:
Account
Identification: 86-4077-0-3-371.
Obligations:
(Mortgages insured) Reported under program 14.117.
Range
and Average of Financial Assistance: Mortgages
for housing eligible under the special program may be insured
under any one of several HUD programs. The maximum amount of the
loan, the downpayment, and other mortgage terms vary according
to the HUD program under which the mortgage is insured.
No activity or 223(e) loans in fiscal year 2001. It is anticipated
that there will be no activity for fiscal year 2002.
REGULATIONS,
GUIDELINES, AND LITERATURE:
HUD Handbook 4260.1, "Miscellaneous Type Home Mortgage Insurance,
Section 223(a), (e), and (d)," no charge; 24 CFR 207.31a (for multifamily);
24 CFR 203.43a (for single family).
INFORMATION
CONTACTS:
Regional
or Local Office: All projects are processed
in Single Family Homeownership Centers, Multifamily Hubs, or local
HUD offices. Persons are encouraged to contact the Homeownership
Center or HUD serving their State, or the nearest local HUD Office.
See Catalog Address Appendix IV for a list of Offices.
Headquarters
Office: None.
Web
Site Address: http://www.hud.gov/fha/sfh/sf_home.html
