FEDERAL
AGENCY:
HOUSING,
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
AUTHORIZATION:
National
Housing Act, as amended, Section 213; Housing Act of 1950; Public
Law 81-475; 12 U.S.C. 1715(e).
To
make available, good quality, new housing for purchase by individual
members of a housing cooperative.
TYPES
OF ASSISTANCE:
Guaranteed/Insured Loans.
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USES
AND USE RESTRICTIONS:
HUD
insures lenders against loss on mortgages. Insured mortgages may
be used to finance purchase by a cooperative member under the sponsorship
of a nonprofit cooperative with five or more units. The unit mortgage
limit is the same as Section 203(b).
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: Eligible mortgagors include members
of nonprofit cooperative ownership housing corporations or trusts
which sponsor such housing.
Beneficiary
Eligibility: Individuals/families and nonprofit
organizations.
Credentials/Documentation:
Documentation regarding the characteristics of the property and
the qualifications of the mortgagor are assembled by the mortgagee
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 for review
and approval to the local HUD field office through a HUD-approved
mortgagee. 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:
HUD will state the reasons for refusing an application. The applicant
may reapply subject to concurrence of the lender.
Renewals:
The term of a commitment to insure may be extended when more time
is desired.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: The maximum amount
of the loan is the same as under Section 203(b) - program 14.117,
except that the mortgage shall not exceed an amount equal to the
portion of the unpaid balance of the blanket mortgage covering the
cooperative which is attributable to the dwelling unit. The downpayment
is the difference between the maximum loan amount and the purchase
price of the home, but in no case less than $200. The mortgage insurance
premium is one-half percent of the mortgage amount.
Length
and Time Phasing of Assistance: The mortgage
term is 30 years, except 35 years if the mortgagor is unacceptable
under a 30-year term.
POST
ASSISTANCE REQUIREMENTS:
Reports:
Defaults in meeting the mortgage terms must be reported. All approved
mortgagees 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 mortgagee to determine its compliance
and conformance with HUD regulations and standards.
Records:
Mortgagees are required to service and maintain records in accordance
with acceptable mortgage practices of prudent lending institutions
and the HUD regulations.
FINANCIAL
INFORMATION:
Account
Identification: 86-4077-0-3-371.
Obligations:
(Mortgages insured) Reported under program 14.135.
Range
and Average of Financial Assistance:
See Uses
and Use Restrictions.
PROGRAM
ACCOMPLISHMENTS:
Because of the small number of loans in any given year, the data
is included in the number of loans insured under Section 203(b),
14.117.
REGULATIONS,
GUIDELINES, AND LITERATURE:
HUD-17-F(3) "Let's Consider Cooperatives," no charge; 24 CFR 213,
subpart C; HUD Handbook No. 4550.6, "Sales Type Cooperatives."
INFORMATION
CONTACTS:
Regional
or Local Office: Persons are encouraged to contact
the Homeownership Center serving their State, 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/progdesc/coops213.cfm
EXAMPLES
OF FUNDED PROJECTS:
Not applicable.
CRITERIA
FOR SELECTING PROPOSALS:
Not applicable.
