Mortgage Insurance Rental Housing in Urban Renewal Areas
To provide quality rental housing in urban renewal areas, code enforcement areas, and other areas designated for overall revitalization.
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 220, Public Law 83-560, 12 U.S.C. 1745(k).
Who is eligible to apply/benefit from this assistance?
Eligible mortgagors include private profit motivated entities, public bodies, and others who meet HUD requirements for mortgagors.
All families eligible to occupy a dwelling in a structure whose mortgage is insured under the program, subject to normal tenant selection.
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. For traditional processing, the application for a Firm Commitment is submitted by the sponsor through a HUD-approved mortgagee, and the application is processed by the Multifamily Hub or Program Center. For Multifamily Accelerated Processing (MAP), the application for a Firm Commitment, including a full underwriting package, is submitted by the MAP leader for HUD Field Office review.
The local Multifamily Hub or Program Center reviews the application to determine whether the proposal is feasible. Considerations include market need, zoning, architectural merits, capabilities of sponsors, availability of community resources, etc. If the project meets program requirements, the Multifamily Hub or Program Center issues the lender a commitment to insure the project mortgage.
Approval/Disapproval Decision Time
How are proposals selected?
How may assistance be used?
Section 220 insures lenders against loss on mortgage defaults. Insured mortgages may be used to finance proposed construction or rehabilitation of detached, semi-detached, row, walk-up, or elevator type rental housing or to finance the purchase of properties which have been rehabilitated by a local public agency. Property must consist of two or more units and must be located in an urban renewal area, urban redevelopment project, or code enforcement program area, urban area receiving rehabilitation assistance as a result of natural disaster, or area where concentrated housing, physical development and public service activities are being carried out in a coordinated manner. The program has statutory 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 projects must comply with prevailing wage standards under the Davis-Bacon Act.
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 practices of prudent lending institutions and the HUD regulations.
Other Assistance Considerations
Formula and Matching Requirements
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.
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 the life of the mortgage
Who do I contact about this opportunity?
Regional or Local Office
Persons are encouraged to communicate with the nearest local HUD Multifamily Field Office listed at http://www.hud.gov/offices/hsg/mfh/mfbroch/hubs_pcs.cfm or contact the nearest HUD Field Office listed in the Catalog Address Appendix IV.
451 Seventh Street SW
washington, DC 20410 US
(Guaranteed/Insured Loans) FY 17 est $22,006,608.00; FY 13$111,300,000.00; FY 15$19,694,500.00; FY 16 est $20,387,968.00; FY 14 est $100,000,000.00;
Range and Average of Financial Assistance
Regulations, Guidelines and Literature
24 CFR 220.1 et seq.; Housing in Urban Renewal Areas for Project Mortgage Insurance, HUD Handbook 4555.1, no charge, available on HUDCLIPS at http://www.hudclips.org.
Examples of Funded Projects