Mortgage Insurance-Rental Housing (14.134)

Program

14.134 Mortgage Insurance-Rental Housing

Federal Agency

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

Authorization

National Housing Act, as amended, Section 207, Public Law 75-424, 12 U.S.C. 1713.

Program Number

14.134

Last Known Status

Active

Objectives

To increase the supply of good quality rental housing for middle-income families.

Types of Assistance

GUARANTEED/INSURED LOANS

Uses and Use Restrictions

Section 207 insures lenders against the loss on mortgage defaults. Section 207 mortgage insurance, although still authorized, is no longer used for new construction and substantial rehabilitation. It is however, the primary vehicle for the Section 223(f) refinancing program. Multifamily new construction and substantial rehabilitation projects are currently insured under Section 221(d)(3) and Section 221(d)(4) programs. Insured mortgages may be used to finance the construction or rehabilitation of rental detached, semidetached, row, walk-up, or elevator type structures with 5 or more 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-value and debt service limitations.

Eligibility Requirements

Applicant Eligibility

Eligible mortgagors include investors, builders, developers, and others who meet HUD requirements for mortgagors.

Beneficiary Eligibility

All families eligible to occupy dwellings in a structure whose mortgage is insured under the program, subject to normal tenant selection.

Credentials/Documentation

Documentation regarding the characteristics of the property and qualifications of the mortgagor are 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 not applicable. Environmental impact information is not 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 an application for a SAMA or feasibility letter. Following HUD's approval and issuance of a SAMA or feasibility letter, the Firm Commitment application is submitted to the local HUD Multifamily Hub or Program Center for processing. 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 to insure the mortgage.

Deadlines

Not Applicable.

Range of Approval/Disapproval Time

Processing time will depend upon the degree of preparation by the sponsor and HUD Multifamily Hub or 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 to close the loan.

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 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: Provided over life 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 practices 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 for FY 08,
FY 09, and FY 10.

Range and Average of Financial Assistance

No Data Available.

Regulations, Guidelines and Literature

24 CFR 207 et seq.; Fact Sheet: Section 207 Rental Housing, no charge; HUD Handbook 4400.1, Project Mortgage Insurance Basic Section 207 Instructions, available on www.hudclips.org.

Related Programs

Not Applicable.

Information Contacts

Regional or Local Office

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

Headquarters Office

Joyce Allen 451 Seventh Street, 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.