Qualified Participating Entities (QPE) Risk Sharing

 

Under this program HUD provides reinsurance on multifamily housing projects whose loans are originated, underwritten, serviced, and disposed of by qualified participating entities (QPEs) and/or its approved lenders. The program encourages the development and preservation of affordable housing. The Section 542(b) program was originally designed as a pilot to test innovative mortgage insurance and reinsurance products to provide affordable multifamily housing through a partnership between HUD and QPEs, including Government Sponsored Enterprises, financial institutions, and the Federal Housing Finance Board.

General information about this opportunity
Last Known Status
Active
Program Number
14.189
Federal Agency/Office
Agency: Department of Housing and Urban Development
Office: Office of Housing-Federal Housing Commissioner
Type(s) of Assistance Offered
GUARANTEED/INSURED LOANS
Program Accomplishments
Not Applicable.
Authorization
Housing and Community Development Act of 1992, Section 542(b), Public Law 102-550, 12 U.S.C. 1701; Public Law 106-377. HUD's fiscal year 2001 Appropriations Bill amended Section 235 of the Housing and Community Development Act of 1992 to extend the 542 Risk Sharing Program to a permanent multifamily insurance program.
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
Eligible mortgagors include investors, builders, developers, public entities, and private nonprofit corporations or associations may apply to a qualified QPE and/or its lender.
Beneficiary Eligibility
Individuals, families, and property owners may be eligible for affordable housing.
Credentials/Documentation
Documentation regarding the characteristics of the property and the qualifications of the mortgagor are submitted to the QPE and/or its lender. This program is excluded from coverage under OMB Circular No. A-87.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
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. An applicant submits a formal application directly to the QPE.
Award Procedure
QPEs are vested with the maximum amount of processing responsibilities and decision-making to approve or reject individual projects.
Deadlines
Not Applicable.
Approval/Disapproval Decision Time
Within 15 days of HUD's receipt of a complete and acceptable Risk Sharing Request, HUD will execute the Addendum to Risk Sharing Agreement which signifies that HUD has undertaken a Risk Sharing Obligation for a specific mortgage loan.
Appeals
If a Risk Sharing Request is refused, the QPE will state the reasons for the refusal.
Renewals
HUD will provide reinsurance on multifamily housing projects whose loans are originated, underwritten, serviced, and disposed of by QPEs.
How are proposals selected?
Not Applicable.
How may assistance be used?
QPEs and/or its approved lenders may originate and underwrite affordable housing loans. HUD's mortgage credit enhancements are used to support the underwriting and production strengths of Fannie Mae, Freddie Mac, and other qualified Federal, State, and local public financial and housing institutions. In the event of a default, the QPE will pay all costs associated with loan disposition and will seek reimbursement from HUD. In most cases, the HUD risk share will be 50 percent. The program provides a new insurance authority independent of the National Housing Act.
What are the requirements after being awarded this opportunity?
Reporting
No reports are required.
Auditing
No audits are required for this program.
Records
QPEs are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions.
Other Assistance Considerations
Formula and Matching Requirements
This program has no statutory formula.
This program has no matching requirements.
This program does not have MOE requirements.
Length and Time Phasing of Assistance
No. See the following for information on how assistance is awarded/released: Monthly.
Who do I contact about this opportunity?
Regional or Local Office
See Regional Agency Offices. Persons are encouraged to communicate with the nearest local HUD Multifamily Hub or Program Center listed at http://www.hud.gov/offices/hsg/mfh/mfbroch/hubs_pcs.cfm or the nearest HUD Field Office listed in the Catalog Address Appendix IV.
Headquarters Office
Carmelita James 451 Seventh Street SW, washington, District of Columbia 20410 Email: carmelita_a._james@hud.gov Phone: (202) 402-2579
Website Address
http://www.hud.gov/offices/hsg/hsgmulti.cfm.
Financial Information
Account Identification
86-4077-0-3-371.
Obligations
(Guaranteed/Insured Loans) FY 11 $42,328,000; FY 12 est $100,000,000; and FY 13 est $100,000,000
Range and Average of Financial Assistance
No Data Available.
Regulations, Guidelines and Literature
Not Applicable.
Examples of Funded Projects
Not Applicable.

 


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