FEDERAL AGENCY:

HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

AUTHORIZATION:

Housing Act of 1954, Public Law 83-560, 12 U.S.C. 1715(b), 1715(k).

OBJECTIVES:

To help families purchase or rehabilitate homes in urban renewal areas.

TYPES OF ASSISTANCE:

Guaranteed/Insured Loans. Place Cursor Here for Definition

USES AND USE RESTRICTIONS:

HUD insures lenders against loss on mortgage loans. These loans may be used to finance acquisition or rehabilitation of one- to 11-family housing in approved urban renewal or code enforcement areas. Maximum insurable loans for the occupant mortgagor are the same as prescribed for Section 203(b), plus $9,165 for each family unit over four. Properties must be constructed or rehabilitated pursuant to an approved urban renewal plan.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   All families are eligible to apply.

Beneficiary Eligibility:   Individuals/families.

Credentials/Documentation:   Documentation regarding the characteristics of the property and the qualifications of the mortgagor are assembled by the mortgage and submitted with the application. This program is excluded from coverage under OMB Circular No. A-87.

Pre-application Coordination:   None. This program is excluded from coverage under E.O. 12372.

Application Procedure:   Application is submitted for review and approval or disapproval to the local HUD Field Office through a HUD- approved lending institution. This program is excluded from coverage under OMB Circular Nos. A-102 and A-110.

Award Procedure:   See Application Procedure.

Deadlines:   None.

Range of Approval/Disapproval Time:   Varies.

Appeals:   HUD will state the reasons for refusing an application. The applicant may reapply subject to concurrence of the lender.

Renewals:   Not applicable.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   For most families, the maximum amount of the loan is the same as under Section 203(b) - program 14.117. The downpayment is the difference between the maximum loan amount and the purchase price of the home, or the estimated value, whichever is less. In addition, the purchaser must pay all items of prepaid expense. Special terms are available for qualified veterans. A one-half percent mortgage insurance premium is required. The loan origination charge by the mortgage varies but may not normally exceed one percent of the total mortgage. Mortgagors may be charged appraisal and inspection fees in accordance with fee schedules established by HUD.

Length and Time Phasing of Assistance:   The mortgage term may extend for 30 years, except 35 years if the mortgagor is unacceptable under a 30 year term and the property was constructed subject to HUD or VA inspection.

POST ASSISTANCE REQUIREMENTS:

Reports:   Defaults in meeting the mortgage terms must be reported. All approved mortgages at any time upon request by HUD must furnish a copy of their latest financial statement.

Audits:   The Department of Housing and Urban Development reserves the right to audit the account of the mortgage to determine its compliance and conformance with HUD regulations and standards.

Records:   Mortgages are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions and the HUD regulations.

FINANCIAL INFORMATION:

Account Identification:   86-4077-0-3-371.

Obligations:   (Mortgages insured) Reported under program 14.133.

Range and Average of Financial Assistance:  
No Data Available.

Because of the small number of loans in any given year, the data is lumped into the number of loans insured under Section 203(b).

REGULATIONS, GUIDELINES, AND LITERATURE:

"Fact Sheet; Urban Renewal Housing (Mortgage Insurance)," no charge; "Fact Sheet: Major Home Improvements (Loan Insurance)," no charge; 24 CFR 220.1 et seq.

INFORMATION CONTACTS:

Regional or Local Office:   None. Persons are encouraged to contact the nearest local HUD Office.

Headquarters Office:   Carmelita James 451 Seventh Street SW, Washington, District of Columbia 20410 Email: carmelita_a._james@hud.gov Phone: (202) 402-2579

Web Site Address:  
http://www.hud.gov

EXAMPLES OF FUNDED PROJECTS:

Not applicable.

CRITERIA FOR SELECTING PROPOSALS:

Not applicable.