Mortgage Insurance-Rental Housing for the Elderly (14.138)

Program

14.138 Mortgage Insurance-Rental Housing for the Elderly

Federal Agency

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

Authorization

National Housing Act, as amended, Section 231, Public Law 86-372, 73 U.S.C. 654, 12 U.S.C. 1715(V).

Program Number

14.138

Last Known Status

Active

Objectives

To provide quality rental housing for the elderly.

Types of Assistance

GUARANTEED/INSURED LOANS

Uses and Use Restrictions

Section 231 insures lenders against loss on mortgages. Section 231 was designed to increase the supply of rental housing specifically for the use and occupancy of elderly persons and/or persons with disabilities. Insured mortgages may be used to finance construction or rehabilitation of detached, semidetached, walk-up, or elevator type rental housing designed for occupancy by elderly or handicapped individuals and consisting of 8 or more rental units. The program has statutory per unit mortgage limits which vary according to the size of the unit, the type of structure, and the location of the project. There are also loan-to-replacement cost and debt service limitations.

Eligibility Requirements

Applicant Eligibility

Eligible mortgagors include private profit-motivated developers, and nonprofit sponsors.

Beneficiary Eligibility

All elderly or handicapped persons are eligible to occupy apartments in a project whose mortgage is insured under the program.

Credentials/Documentation

Documentation regarding the characteristics of the property and the qualifications of the mortgagor must be 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 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

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. The sponsor submits a formal application 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 project meets program requirements, the local HUD Multifamily Hub or Program Center issues a commitment to the lender for mortgage insurance.

Deadlines

Not Applicable.

Range of Approval/Disapproval Time

Processing time varies depending upon the degree of preparation by the sponsor and HUD Multifamily Hub and Program Center workload.

Appeals

If an application for mortgage insurance is denied, HUD will state the reasons for the denial. 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.

Assistance Considerations

Formula and Matching Requirements

Statutory Formula: Title 24 CFR, Part 207.

This program has no matching requirements.

This program does not have MOE requirements.

Length and Time Phasing of Assistance

The maximum mortgage term is 40 years or not in excess of three-fourths of the remaining economic life, whichever is less. See the following for information on how assistance is awarded/released: Over term of mortgage.

Post Assistance Requirements

Reports

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 mortgagee or mortgagor in order to determine their compliance and conformance with HUD regulations and standards.

Records

Mortgagees are required to service and maintain records in accordance with acceptable mortgage practice of prudent lending institutions and the HUD regulations.

Program Accomplishments

Not Applicable.

Financial Information

Account Identification

86-4077-0-3-371.

Obligations

(Guaranteed/Insured Loans) FY 08 $0; FY 09 est $0; FY 10 est $0 - Reported under 14.135 FY 08, FY 09, FY 10.

Range and Average of Financial Assistance

No Data Available.

Regulations, Guidelines and Literature

Fact Sheet, Section 231 for the Elderly; 24 CFR 231.1 et seq. Section 231, Housing for the Elderly for Project Mortgage Insurance, HUD Handbook 4570.1, no charge, available on HUDCLIPS at http://www.hudclips.org.

Related Programs

Not Applicable.

Information Contacts

Regional or Local Office

See Regional Agency Offices. Persons are encouraged to communicate with the Multifamily Hub or Program Center with jurisdiction for the proposed property. HUD Multifamily Hubs or Program Centers are listed at http://www.hud.gov/offices/hsg/mfh/mfbroch/hubs_pcs.cfm and in the Catalog Address Appendix IV.

Headquarters Office

Joyce Allen 451 7th street SW, washington, District of Columbia 20410 Phone: 2027081142

Web Site Address

http://www.hud.gov/offices/hsg/hsgmulti.cfm.

Examples of Funded Projects

Not Applicable.

Criteria for Selecting Proposals

Not Applicable.