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
Office of Housing-Federal Housing Commissioner, Department of Housing and Urban Development
Type(s) of Assistance Offered
F - Guaranteed/Insured Loans
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?
Eligible mortgagors include investors, builders, developers, public entities, and private nonprofit corporations or associations may apply to a qualified QPE and/or its lender.
Individuals, families, and property owners may be eligible for affordable housing.
Documentation regarding the characteristics of the property and the qualifications of the mortgagor are submitted to the QPE and/or its lender.
What is the process for applying and being award this assistance?
Preapplication coordination is not applicable.
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. An applicant submits a formal application directly to the QPE.
QPEs are vested with the maximum amount of processing responsibilities and decision-making to approve or reject individual projects.
Approval/Disapproval Decision Time
How are proposals selected?
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?
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
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
Who do I contact about this opportunity?
Regional or Local Office
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.
451 Seventh Street SW
Washington, DC 20410 US
(Guaranteed/Insured Loans) FY 17 est $66,633,349.00; FY 15$14,352,529.00; FY 16 est $40,873,150.00; FY 14 est $300,000,000.00; FY 13$315,000,000.00;
Range and Average of Financial Assistance
Regulations, Guidelines and Literature
Examples of Funded Projects