FEDERAL
AGENCY:
HOUSING,
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
AUTHORIZATION:
National
Housing Act, as amended, Section 203(n); Emergency Home Purchase
Assistance Act of 1974, Public Law 93-449, 88 Stat. 1364.
To
provide insured financing for the purchase of the Corporate Certificate
and Occupancy Certificate for a unit in a cooperative housing project.
Ownership of the corporate certificate carries the right to occupy
the unit located within the cooperative project.
TYPES
OF ASSISTANCE:
Guaranteed/Insured Loans.
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USES
AND USE RESTRICTIONS:
HUD
insures lenders against loss on mortgage loans. These insured loans
may be used to assist individuals or families in acquiring corporate
certificates and occupancy certificates in a cooperative housing
project that is covered by a blanket mortgage insured under the
National Housing Act. The maximum insurable mortgage loan is limited
to the maximum limit under Section 203(b) minus the portion of the
unpaid balance of the project mortgage attributable to the dwelling
unit.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: Potential owner-occupant mortgagors
are eligible to apply.
Beneficiary
Eligibility: Individuals/families.
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 or disapproval to the HUD Homeownership Center having
jurisdiction over the area where the property is located through
a HUD approved lending institution. 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:
Not applicable.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: For most families,
the maximum amount of the loan is the same as under 203(b) - program
14.117. The unit's share of the project mortgage is deducted from
the maximum potential amount to determine the maximum Section 203(n)
loan. As of July 1, 1991, risk-based mortgage insurance premiums
will be collected including: 1) an up-front premium which may be
financed and 2) a periodic premium which is paid monthly. The origination
charge by the mortgagee varies, but may not exceed one percent of
the total mortgage amount.
Length
and Time Phasing of Assistance: The maximum
mortgage term is 30 years or the remaining term of the blanket
mortgage covering the cooperative development, whichever is less.
POST
ASSISTANCE REQUIREMENTS:
Reports:
Defaults in meeting the mortgage terms must be reported. Any approved
mortgagee, at any time upon request by HUD, must furnish a copy
of its 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: 86-4587-0-3-371.
Obligations:
(Mortgages insured) Reported under program 14.117.
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 4240.3, Section 203(n) Application Through Insurance (Single
Family) no charge; 24 CFR 203.43c and 203.437.
INFORMATION
CONTACTS:
Regional
or Local Office: Persons are encouraged to contact
the Homeownership Center serving their State, or the nearest HUD
Office. See Catalog Address Appendix IV for a list of Offices.
Headquarters
Office: None.
Web
Site Address: http://www.hud.gov/progdesc/203n--df.cfm
EXAMPLES
OF FUNDED PROJECTS:
Not applicable.
CRITERIA
FOR SELECTING PROPOSALS:
Not applicable.
