Mortgage Insurance Cooperative Projects

 

Enables nonprofit cooperative ownership housing corporations or trusts to develop or sponsor the development of housing projects to be operated as cooperatives. Section 213 allows investors to provide good quality multifamily housing to be sold to such nonprofit corporations or trusts upon completion of construction or rehabilitation.

Active 14.126 Office of Housing-Federal Housing Commissioner, Department of Housing and Urban Development F - Guaranteed/Insured Loans Not applicable. National Housing Act, as amended, Section 213; Housing Act of 1950, Public Law 81-475; Housing Act of 1956, Public Law 84-1020, 12 U.S.C. 1715(e); Public Law 91-152, 83 Stat. 379, 383; Public Law 84-345, 69 Stat. 635; Public Law 87-70, 75 Stat. 149, 179; Public Law 86-372, 73 Stat. 654, 656; Public Law 89-117, 79 Stat. 451, 469; Public Law 89-754, 80 Stat. 1255-66., Title 24, Part 213 Eligible mortgagors are nonprofit cooperatives, ownership housing corporations or trusts which may either sponsor projects directly, sell individual units to cooperative members, or purchase projects from investor-sponsors (builders, developers, or others who meet HUD requirements). Members of the cooperative are eligible to occupy a dwelling in the structure whose mortgage is insured under the program. Documentation regarding the characteristics of the property and the qualifications of the mortgagor are assembled by the mortgagee and submitted with the application. Preapplication coordination is required. An environmental impact assessment is required for this listing. 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. See the MAP Guide. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. The sponsor submits the SAMA application or feasibility letter to the local Hub or Satellite Office. The borrower, also called a sponsor, submits a firm commitment application through a HUD-approved mortgagee to the local Multifamily Hub or Satellite Office for processing. The local HUD field office decides whether to approve, or reject individual applications and whether to issue a commitment to the lender to insure the mortgage. Not applicable. Not applicable. Not applicable. Not applicable. Not applicable. Section 213 insures lenders against loss on mortgages. Insured mortgages may be used to finance construction, acquisition of existing, or rehabilitation of detached, semidetached, row, walk-up, or elevator type housing consisting of five 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-replacement cost and debt service limitations. Contractors for new construction and substantial rehabilitation housing projects must comply with prevailing wage requirements under the Davis-Bacon Act. Not applicable. 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 the regulations and standards. Mortgagees are required to service and maintain records in accordance with acceptable lending practices of prudent lending institutions and HUD regulations. Statutory formula is not applicable to this assistance listing.

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing. The maximum mortgage term is 40 years, or not in excess of three-fourths of the remaining economic life, whichever is less, except for sales type cooperatives where the maximum term is 35 years or not in excess of three-fourths of the remaining economic life, whichever is less. Benefits accrue over the life of the loan in the form of below-market terms, i.e., beneficial interest rates and fixed rate long-term/maturity. Persons are encouraged to communicate with the Multifamily Hub or Satellite Office with jurisdiction for the proposed property. HUD Multifamily Hubs and Program Centers are listed on the web at https://www.hud.gov/program_offices/housing/mfh/hsgmfbus/abouthubspcs Thomas Bernaciak
451 Seventh Street SW
Washington, DC 20410 US
thomas.a.berncaik@hud.gov
Phone: (202) 402-3242 https://www.hud.gov/program_offices/housing/mfh 86-4077-0-3-371 (Guaranteed/Insured Loans) FY 22 FY 23 FY 24 FY 21 FY 20$205,005,000.00; FY 19$214,715,000.00; FY 15 est $15,000,000.00; FY 14 est $15,000,000.00; FY 16 FY 13$16,700,000.00; FY 17 - Reported under 14.134. Not applicable/available. See the MAP Guide. Not applicable.