Content provided by the Catalog of Federal Domestic Assistance
14.123 Mortgage Insurance_Housing in Older, Declining Areas
HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
National Housing Act, as amended, Section 223(e), Public Law 90-448, 12 U.S.C. 1715(b), 1715(n).
To assist in the purchase or rehabilitation of housing in older, declining urban areas.
TYPES OF ASSISTANCE:
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.
Applicant Eligibility: HUD-approved mortgages.
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.
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.
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.
Account Identification: 86-4077-0-3-371.
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).
Regional or Local Office: None. Persons should contact the FHA Resource Center at 1-800-CALLFHA (1-800-225-5342) for more information.
EXAMPLES OF FUNDED PROJECTS:
CRITERIA FOR SELECTING PROPOSALS: