Interest Reduction Payments-Rental and Cooperative Housing for Lower Income Families (14.103)

 

Program

14.103 Interest Reduction Payments-Rental and Cooperative Housing for Lower Income Families

 

Federal Agency

Agency: Department of Housing and Urban Development
Office: Office Of Housing-federal Housing Commissioner

 

Authorization

National Housing Act, as amended, Section 236, Public Law 90-448, 12 U.S.C. 1715., Public Law 448-90-448, 12 U.S.C 1715.

 

Program Number

14.103

 

Last Known Status

Active

 

Objectives

To provide good quality rental and cooperative housing for persons of low-and moderate-income by providing interest reduction payments in order to lower their housing costs.

 

Types of Assistance

DIRECT PAYMENTS FOR A SPECIFIED USE; GUARANTEED/INSURED LOANS

 

Uses and Use Restrictions

Use was limited to Section 236 insured and non-insured mortgages financed by State or Local Housing Finance Agencies. Program is now inactive. No new projects are being approved. Projects with this subsidy are still active in the MF portfolio.

 

Eligibility Requirements

Applicant Eligibility

Eligible mortgagors included nonprofit, cooperative, builder-seller, investor-sponsor, and limited-distribution sponsors. Public bodies did not qualify as mortgagors under this program.

Beneficiary Eligibility

Families and individuals, including the elderly and handicapped or those displaced by government action or natural disaster, eligible to receive the benefits of the subsidies must at the time of admission fall within certain locally determined income limits. Families with higher incomes may occupy apartments, but may not benefit from subsidy payments.

Credentials/Documentation

Documentation regarding the characteristics of the property and qualifications of the mortgagor was submitted with the application. This program is excluded from coverage under OMB Circular No. A-87. This program is excluded from coverage under OMB Circular No. A-87.

 

Application and Award Process

Preapplication Coordination

Preapplication coordination is required. An environmental impact assessment is required for this program. This program is excluded from coverage under E.O. 12372.

Application Procedure

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. No applications for new projects are being accepted. Sponsors submitted FHA Form No. 2013, application and other documentation for FHA Review of Proposed Development, to local HUD field office with multifamily processing or equivalent documentation to a State or local Housing Finance Agency approved by HUD for participation in the program. This program is excluded from coverage under OMB Circular No. A-110.

Award Procedure

The local HUD office or State or local Housing Finance Agency reviewed the application to determine site appraisal and market analysis. Market need, correct zoning, environmental assessment and value of site fully improved were considered. The local office granted feasible proposals a tentative reservation of contract authority, and the sponsor was invited to apply for mortgage commitment, at which stage(s) further technical processing was completed. No new applications for project mortgage insurance are being accepted.

Deadlines

Not Applicable.

Range of Approval/Disapproval Time

Not Applicable.

Appeals

Not Applicable.

Renewals

Not Applicable.

 

Assistance Considerations

Formula and Matching Requirements

Statutory Formula: Title 24 CFR, Part 236.

This program has no matching requirements.

This program has MOE requirements, see funding agency for further details.

Length and Time Phasing of Assistance

The mortgage term normally extends for 40 years. Interest reduction payments may extend for the full term of the mortgage. For individual families, assistance ceases when their income rises to the point where they can afford the full market rent without the benefit of assistance. See the following for information on how assistance is awarded/released: Monthly.

 

Post Assistance Requirements

Reports

Excess income reports. No cash reports are required. No progress reports are required. No expenditure reports are required. No performance monitoring is required.

Audits

This program is excluded from coverage under OMB Circular No. A-133. The Department of Housing and Urban Development reserves the right to audit the accounts of either the mortgage or mortgagor in order to determine their compliance and conformance with FHA regulations and standards.

Records

Tenant certifications for assistance payments and annual recertification must be forwarded to the HUD Field or Area Office by the sponsor. Regular financial reports are also required. Mortgagees must service and maintain records in accordance with acceptable mortgagee practices and HUD regulations.

 

Program Accomplishments

Not Applicable.

 

Financial Information

Account Identification

86-0334-0-1-604; 86-0335-0-1-999.

Obligations

(Salaries) FY 08 $0; FY 09 est $0; FY 10 est $0 - Salaries and Expenses (not separately identifiable).

Range and Average of Financial Assistance

No Data Available.

 

Regulations, Guidelines and Literature

Fact Sheet: Rental and Co-op Housing for Lower Income Families. No charge; 24 CFR 236 et seq.

 

Related Programs

Not Applicable.

 

Information Contacts

Regional or Local Office

None. Contact the appropriate local HUD Office listed in the Catalog Address Appendix IV.

Headquarters Office

Beverly J. Miller 451 Seventh St SW, washington, District of Columbia 20410 Email: beverly.miller@hud.gov Phone: 2027083730

Web Site Address

http://www.hud.gov/offices/hsg/mfh/progdesc/progdesc.cfm.

 

Examples of Funded Projects

Not Applicable.

 

Criteria for Selecting Proposals

Not Applicable.