Content provided by the Catalog of Federal Domestic Assistance
14.151 Supplemental Loan Insurance_Multifamily Rental Housing
HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
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:
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.
Applicant Eligibility: Owners of a multifamily project or facility already subject to a mortgage insured by HUD or held by HUD.
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.
Formula and Matching Requirements: The amount of the loan may not exceed 90 percent of the estimated value of the improvements, additions, or equipment.
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.
Account Identification: 86-4077-0-3-371.
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.
Regional or Local Office: See Regional Agency Offices. 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.
EXAMPLES OF FUNDED PROJECTS:
CRITERIA FOR SELECTING PROPOSALS: