DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
and Community Development Amendments of 1978, as amended, Public
Law 95-557, 12 U.S.C. 17152-1.
provide loans to restore or maintain the physical and financial
soundness, to assist in the management and to maintain the low-to
moderate-income character of certain projects assisted or approved
for assistance under the National Housing Act or under the Housing
and Urban Development Act of 1965.
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AND USE RESTRICTIONS:
Subsidy funds can be lent to eligible projects in an amount based
on the project's total needs. It may be used to correct physical
deficiencies resulting from deferral of regular maintenance; to
reduce deficiencies in replacement reserve funds; and to fund operating
deficits. Flexible Subsidy assistance is limited to projects assisted
under Section 236 or Section 221 (d) (5) of the National Housing
Act; those assisted under Section 101 of the HUD Act of 1965 (Rent
Supplement) or when the Section 101 assistance has been converted
to Section 8 Loan Management Set Aside (LMSA); direct loans at below
market interest rates made under Section 202 of the Housing Act
of 1959; housing assistance payments made under Section 23 of the
U.S. Housing Act of 1937 or Section 8 of the U.S. Housing Act of
1937 after conversion from assistance under the Section 236 Rental
Assistance Payments Program or the Rent Supplement Program. Some
of the Flexible Subsidy resources are being used in connection with
Safe Neighborhood Action Plans.
Eligibility: Eligible owners are nonprofits,
with existing loans from HUD under the Section 202 program. Public
bodies do not qualify for this program. Field Offices recommend
projects to be assisted.
AND AWARD PROCESS:
Eligibility: Tenants will benefit because
this will allow decent, safe and sanitary conditions in projects.
Additionally, this program will guarantee good management in those
Documentation regarding the characteristics of the property and
the qualifications of managing agents and owners are assembled
by the owners and submitted to the Field Office . This program
is excluded from coverage under OMB Circular No. A-87.
Coordination: Assurance must be gained from
the appropriate unit of local government that essential services
will be provided to the project; the real estate taxes will be assessed
in a manner consistent with normal assessment procedures; and that
assistances not inconsistent with local plans and priorities. This
program is excluded from coverage under OMB Circular No. A-102.
This program is excluded from coverage under E.O. 12372.
Procedure: Because of the limited funding,
Flexible Subsidy funds are strictly reserved for the emergency
needs of 202 projects. Such projects, must have been in occupancy
for at least fifteen (15) years and have emergency health and
safety needs. Deferred maintenance or items that did not exist
at the time the project was finally endorsed, e.g., adding air
conditioning to an entire project, will not be approved for Flexible
Subsidy Operating Assistance funding.
Procedure: For most of the Flexible Subsidy
assistance, funds are assigned from HUD Headquarters to the HUD
Field Offices, for specific projects identified by the Field Offices
as having priority based on established criteria.
Funds are awarded until exhausted.
of Approval/Disapproval Time: None.
and Matching Requirements: No contribution is
required for nonprofit sponsors.
and Time Phasing of Assistance: Generally
on a monthly basis. Operating Assistance is usually for a one
year period and is paid according to pre-approved work schedule.
Capital Improvement Loan proceeds are disbursed until construction
Quarterly assessment and review of owner performance. Monthly reporting
of individual disbursements and action items. Periodic on-site visits.
Federal audits will be made in accordance with the policies of
FMC 73-2 to ensure that funds have been applied efficiently, economically,
Owner keeps all records relating to MIO Plan transactions for
at least 5 years. Field Office retains all records relating to
assistance for 5 years.
FY 01 $13,576,834; FY 02 est $1,503,000; and FY 03 est $0.
and Average of Financial Assistance:
and Use Restrictions.
Update to Flexible Subsidy. For fiscal year 2000, $13,062,467 was
awarded before the reorganization. Since reorganization, Housing
Assistance and Grant Administration has approved nine projects to
receive funding totaling $7,593,161. No further activity is anticipated
in FY 02.
GUIDELINES, AND LITERATURE:
24 CFR part 219, HUD Handbook 4355.1.
or Local Office: Persons are encouraged to communicate
with the nearest local HUD Multifamily Hubs and Program Centers
listed at http://www.hud.gov/fha/mfh/fhamie/mieforms/lkmfdirs.html
or the nearest HUD Field Office listed in the Appendix IV of the
Office: Office of Housing Assistance and Grants
Administration, Department of Housing and Urban Development, Washington,
DC 20420. Telephone: (202) 708-2866. Use the same number for FTS.
Site Address: http://www.hud.gov/progdesc/multindx.html
OF FUNDED PROJECTS:
Section 202 projects for the elderly or disabled with emergency
health and safety problems whose sponsors do not have the necessary
funds available to cure the immediate problems.
FOR SELECTING PROPOSALS:
First and foremost the applicant must be able to demonstrate that
the requested items meet the guideline for emergency. After which,
assistance will be granted only if the: (1) assistance, in concert
with one or more other relief tools, will restore or maintain physical
and financial soundness and the low-or moderate-income nature of
the project; (2) assistance is less costly to the Federal government
than any other available; (3) project owner, except for nonprofit
projects, agrees to provide assistance to the project; (4) project
can be made structurally sound with this assistance; (5) project
management is at least satisfactory; and (6) project is operated
and managed in accordance with the terms of the Management Improvement
and Operation (MIO) Plan designed to reduce the operating costs
of the project.