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14.133 Mortgage Insurance_Purchase of Units in Condominiums
HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
National Housing Act, as amended, Section 234(c), Public Law 87-70, 75 Stat. 149, 1968, Public Law 90-448, 82 Stat. 476, 507, 1969, Public Law 91-152, 83 Stat. 379, 384.
To enable families to purchase units in condominium projects.
TYPES OF ASSISTANCE:
USES AND USE RESTRICTIONS:
HUD insures lenders against loss on mortgage loans. These loans may be used to finance the acquisition of individual units in proposed or existing condominium projects containing four or more units. The maximum insurable loan for an occupant mortgagor is the same as Section 203(b) - Program 14.117. With respect to a unit in any project which was converted from rental housing, no insurance may be provided under this section unless: (1) The conversion occurred more than 1 year prior to the application for insurance; (2) the mortgagor or co-mortgagor was a tenant of that rental housing; or (3) the conversion of the property is sponsored by a bona fide tenant's organization representing a majority of the households in the project.
Applicant Eligibility: All families are eligible to apply.
Pre-application Coordination: An environmental assessment is required for a proposed project under this program. Owner-occupancy requirements apply as do requirements for transfer of rights to the homeowner association. Eighty percent of HUD-insured mortgages in the project must be made to owner-occupants. This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under E.O. 12372.
Formula and Matching Requirements: The maximum amount of the loan is the same as under 203(b) - Program 14.117. The downpayment is equal to the difference between the maximum loan amount and the purchase price of the unit. The loan origination charge by the mortgagee varies, but may not exceed one percent of the total mortgage amount. 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 mortgagees at any time upon request by HUD must furnish a copy of their latest financial statement.
Account Identification: 86-4077-0-3-371.
Insured 81,336 loans in fiscal year 2001. The Department projects it will insure approximately 82,000 in fiscal year 2002.
REGULATIONS, GUIDELINES, AND LITERATURE:
"Guide To Single Family Home Mortgage Insurance," no charge; Questions about Condominiums, HUD 365-H(7), no charge; 24 CFR 234.
Regional or Local Office: None. For additional information, individuals are encouraged to contact the FHA Resource Center by phone at 1-800-CALLFHA (1-800-225-5342), by email at firstname.lastname@example.org or visit the FHA Resource Center site at http://portal.hud.gov/hudportal/HUD?src=/FHAFAQ.
EXAMPLES OF FUNDED PROJECTS:
CRITERIA FOR SELECTING PROPOSALS: