FEDERAL
AGENCY:
HOUSING,
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
AUTHORIZATION:
National
Housing Act, Title I, Section 2, as amended, 12 U.S.C. 1703.
To
facilitate the financing of improvements to homes and other existing
structures and the building of new nonresidential structures.
TYPES
OF ASSISTANCE:
Guaranteed/Insured Loans.
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USES
AND USE RESTRICTIONS:
HUD
insures lenders against loss on loans. Insured loans may be used
to finance alterations, repairs, and improvements for existing structures
and the building of new nonresidential structures which substantially
protect or improve the basic livability or utility of the properties.
The maximum loan amount is $25,000 for improving a single family
home or for improving or building a nonresidential structure. For
improving a multifamily structure, the maximum loan amount is $12,000
per family unit, not to exceed a total of $60,000 for the structure.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: Eligible borrowers include the
owner of the property to be improved, a lessee having a lease extending
at least 6 months beyond maturity of the loan, or a purchaser of
the property under a land installment contract.
Beneficiary
Eligibility: Individuals/families.
Credentials/Documentation:
The responsibility for credit approval of borrowers is exercised
by HUD-insured lenders. 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: The borrower applies directly to
an insured lender, or through a lender's approved dealer. This
program is excluded from coverage under OMB Circular Nos. A-102
and A-110.
Award
Procedure: None.
Deadlines:
None.
Range
of Approval/Disapproval Time: HUD does not
participate in the approval or disapproval of individual loans.
Appeals:
Reapplication in case of refusal should be submitted to an approved
lender.
Renewals:
Not applicable.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: HUD insures private
lenders against losses of up to 90 percent of any single loan with
maximum insurance coverage limited to a total of 10 percent of the
total amount insured. The interest rate is a negotiable interest
rate agreed upon between the borrower and lender. The annual insurance
charge is $1 per $100 of the amount advanced. This program has maintenance
of effort (MOE) requirements; see funding agency for further details.
Length
and Time Phasing of Assistance: Loans mature
in 20 years and 32 days or earlier. Loans may be refinanced, but
may not extend beyond 30 years from the date of the original note.
POST
ASSISTANCE REQUIREMENTS:
Reports:
None.
Audits:
The Department of Housing and Urban Development reserves the right
to audit the accounts of lenders in order to determine their compliance
and conformance with HUD regulations and standards.
Records:
Lenders are required to service and maintain records in accordance
with acceptable lending practices of prudent lending institutions
and the HUD regulations.
FINANCIAL
INFORMATION:
Account
Identification: 86-4077-0-3-371.
Obligations:
(Loans insured) FY 01 $120,457,641; FY 02 est $216,300,000; and
FY 03 est $117,750,000.
Range
and Average of Financial Assistance:
The maximum loan amount is $25,000 for improving a single
family home or for improving or building a nonresidential structure.
For improving a multifamily structure, the maximum loan amount
is $12,000 per family unit, not to exceed a total of $60,000
for the structure.
PROGRAM
ACCOMPLISHMENTS:
In fiscal year 2001, HUD insured 10,357 loans for a total of $115,864,071
and expects about the same in fiscal year 2002.
REGULATIONS,
GUIDELINES, AND LITERATURE:
"Fixing
Up Your Home," HUD-52-H(7), no charge.
INFORMATION
CONTACTS:
Regional
or Local Office: Contact HUD at 800-767-7468
for a program brochure #2651 and list of lenders.
Headquarters
Office: None.
Web
Site Address: http://www.hud.gov/progdesc/title-i.cfm
EXAMPLES
OF FUNDED PROJECTS:
Not applicable.
CRITERIA
FOR SELECTING PROPOSALS:
Not applicable.
