Mortgage Insurance Rental Housing for the Elderly
To provide quality rental housing for the elderly.
General information about this opportunity
Last Known Status
Office of Housing-Federal Housing Commissioner, Department of Housing and Urban Development
Type(s) of Assistance Offered
F - Guaranteed/Insured Loans
National Housing Act, as amended, Section 231, Public Law 86-372, 73 U.S.C. 654, 12 U.S.C. 1715(V)., Title 24, Part 231
Who is eligible to apply/benefit from this assistance?
Eligible mortgagors include private profit-motivated developers, and nonprofit sponsors.
All elderly or handicapped persons are eligible to occupy apartments in a project whose mortgage is insured under the program.
Documentation regarding the characteristics of the property and the qualifications of the mortgagor must be submitted with the application.
What is the process for applying and being award this assistance?
Preapplication coordination is required. Environmental impact information is not required for this program. 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.
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. The sponsor submits a formal application through a HUD-approved mortgagee to the local HUD Multifamily Hub or Program Center.
If the project meets program requirements, the local HUD Multifamily Hub or Program Center issues a commitment to the lender for mortgage insurance.
Approval/Disapproval Decision Time
How are proposals selected?
How may assistance be used?
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.
What are the requirements after being awarded this opportunity?
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.
Mortgagees are required to service and maintain records in accordance with acceptable mortgage practice of prudent lending institutions and the HUD regulations.
Other Assistance Considerations
Formula and Matching Requirements
Statutory Formula: Title 24 CFR Part 231
Matching requirements are not applicable to this assistance listing.
MOE requirements are not applicable to this assistance listing.
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. Over term of mortgage
Who do I contact about this opportunity?
Regional or Local Office
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.
451 Seventh Street SW
Washington, DC 20410 US
(Guaranteed/Insured Loans) FY 14 est $15,000,000.00; FY 15$53,212,283.00; FY 13$17,000,000.00; FY 17 est $59,494,779.00; FY 16 est $55,170,497.00;
Range and Average of Financial Assistance
Regulations, Guidelines and Literature
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.
Examples of Funded Projects