FEDERAL
AGENCY:
HOUSING,
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
AUTHORIZATION:
National
Housing Act, as amended, Section 241, Public Law 90-448, 12 U.S.C.
1715, Public Law 94-375, 12 U.S.C. 17152-6.
To
finance repairs, additions and improvements to multifamily rental
housing and health care facilities with FHA insured first mortgages
or HUD-held mortgages.
TYPES
OF ASSISTANCE:
Guaranteed/Insured Loans.
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USES
AND USE RESTRICTIONS:
HUD,
through the Federal Housing Administration, insures lenders against
loss on loans made either (1) To finance additions and improvements
of multifamily rental housing and health care facilities already
subject to HUD/FHA insured mortgages or mortgages held by HUD, or
(2) to finance energy conservation improvements. The program is
intended to keep the project competitive, to extend its economic
life, and to finance the replacement of obsolete equipment. The
maximum insurable loan for an insured project is an amount which,
when added to the outstanding balance of the existing insured mortgage,
does not exceed the amount insurable under the program pursuant
to which the mortgage covering such project or facility is insured.
Where the project is covered by a mortgage held by the Secretary
the principal amount of the loan shall be in an amount acceptable
to the Secretary.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: Owners of a multifamily project
or facility already subject to a mortgage insured by HUD or held
by HUD.
Beneficiary
Eligibility: Individuals/families and owners
of multifamily projects.
Credentials/Documentation:
Documentation regarding the characteristics of the property and
the qualifications of the mortgagor are assembled by the mortgage
and submitted with the application. This program is excluded from
coverage under OMB Circular No. A-87.
APPLICATION
AND AWARD PROCESS:
Pre-application
Coordination: The sponsor has a preapplication
conference with the local HUD Multifamily Hub and Program Center
to determine the preliminary feasibility of the proposed improvements
before a formal application is submitted. 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 official 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: The sponsor submits a formal application
for review and approval or disapproval through a HUD-approved
mortgagee to the local HUD Multifamily Hub or Program Center.
This program is excluded from coverage under OMB Circular No.
A-110.
Award
Procedure: If the proposed improvements meets
program requirements, the local HUD Multifamily Hub and Program
Center issues a commitment to the lender to insure the mortgage.
Deadlines:
Deadlines are established on a case-by-case basis by the local
HUD Multifamily Hub and Program Center.
Range
of Approval/Disapproval Time: Processing time,
depending upon the degree of preparation by the sponsor, and workload
in the HUD Multifamily Hub and Program Center.
Appeals:
If an application for mortgage insurance is refused, HUD will
state the reasons for the refusal. If reapplication is desired,
the applicant may modify the application and reapply.
Renewals:
The term of a commitment to insure may be extended when more time
is required to close the loan.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: The amount of the
loan may not exceed 90 percent of the estimated value of the improvements,
additions, or equipment.
Length
and Time Phasing of Assistance: A loan for
a project with a HUD-insured or HUD-held mortgage must have a
maturity acceptable to HUD.
POST
ASSISTANCE REQUIREMENTS:
Reports:
Any change of the borrower during the period of loan insurance must
be approved by HUD. Defaults in meeting the loan terms must be reported.
All borrowers are required to submit an annual financial statement
to HUD. All approved lenders at any time upon request by HUD must
furnish copies of their latest financial statements.
Audits:
The Department of Housing and Urban Development reserves the right
to audit the accounts of either the lender or borrower 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:
FY 01 $12,826,900; FY 02 est $17,900,000; and FY 03 est $50,000,000.
Range
and Average of Financial Assistance:
The amount of the loan may not exceed 90 percent of the estimated
value of the improvements, additions, or equipment.
PROGRAM
ACCOMPLISHMENTS:
In fiscal year 2001, HUD insured mortgages for six projects with
838 units/beds, totaling $7.7 million. The Department expects similar
number of insured loans for fiscal year 2002.
REGULATIONS,
GUIDELINES, AND LITERATURE:
24 CFR, 241 et seq.; HUD Handbook 4585.1 "Supplemental Loans for
Project Mortgage Insurance," Section 241, no charge.
INFORMATION
CONTACTS:
Regional
or Local Office: All projects are processed
in Regional and Local Multifamily Hub or Program Center. Persons
are encouraged to communicate with the nearest local HUD Multifamily
Hub and Program Center listed at http://www.hud.gov/offices/hsg/mfh/mfbroch/hubs_pcs.cfm
or contact the nearest HUD Field Office in the Catalog Address Appendix
IV.
Headquarters
Office: Office of Multifamily Development,
Department of Housing and Urban Development, 451 7th Street, S.W.,
Washington, DC 20411. Telephone: (202) 708-1142. Use the same
number for FTS.
Web
Site Address: http://www.hud.gov/fha/mfh/fhamfbus.html
EXAMPLES
OF FUNDED PROJECTS:
Not applicable.
CRITERIA
FOR SELECTING PROPOSALS:
Not applicable.
