FEDERAL AGENCY:

HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

AUTHORIZATION:

National Housing Act, as amended, Section 223(e), Public Law 90-448, 12 U.S.C. 1715(b), 1715(n).

OBJECTIVES:

To assist in the purchase or rehabilitation of housing in older, declining urban areas.

TYPES OF ASSISTANCE:

Guaranteed/Insured Loans. Place Cursor Here for Definition

USES AND USE RESTRICTIONS:

HUD insures lenders against loss on mortgage loans under other sections of the National Housing Act, e.g., Section 221(d)(3) or (d)(4), pursuant to Section 223(e). Claims are paid from the Special Risk Insurance Fund, but this is not a separate program. The determination to use Section 223(e) is at the discretion of HUD. These loans may be used to finance the purchase, repair, rehabilitation, and construction of housing in older, declining urban areas where conditions are such that certain normal eligibility requirements for mortgage insurance under a particular program cannot be met. The property must be an acceptable risk giving consideration to the need for providing adequate housing for low-and moderate-income families.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   HUD-approved mortgages.

Beneficiary Eligibility:   For single family purposes, an individual or family is eligible to apply through HUD approved mortgages. Multifamily sponsorship is determined by applicable program requirements.

Credentials/Documentation:   For single family applications, documentation regarding the characteristics of the property and the qualifications of the mortgagor are assembled by the mortgage and submitted with the application. Documentation required for multifamily applications is determined by applicable program requirements. This program is excluded from coverage under OMB Circular No. A-87.

Pre-application Coordination:   Sponsors of multifamily housing located in older, declining urban areas, may arrange a preapplication conference with the local HUD field office for advice on the best program for the sponsor, and to discuss HUD procedures and requirements. This program is excluded from coverage under OMB Circular No. A-102. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or officials 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.

Application Procedure:   Applications may be submitted at any time 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 No. 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 request the HUD-approved mortgage to seek HUD reconsideration.

Renewals:   Not applicable.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   Mortgages for housing eligible under the special program may be insured under any one of several HUD programs. The maximum amount of the loan, the downpayment, and other mortgage terms vary according to the HUD program under which the mortgage is insured. The mortgage insurance premium is one-half percent per year on the outstanding loan balance. Fees are established under the applicable HUD program. This program has maintenance of effort (MOE) requirements; see funding agency for further details.

Length and Time Phasing of Assistance:   Not applicable.

POST ASSISTANCE REQUIREMENTS:

Reports:   Defaults in meeting the mortgage terms must be reported. All approved lenders 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 lender to determine its compliance and conformance with HUD regulations and standards.

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

FINANCIAL INFORMATION:

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

Obligations:   (Mortgages insured) Reported under program 14.117.

Range and Average of Financial Assistance:  
No Data Available.

No activity or 223(e) loans in fiscal year 2001. It is anticipated that there will be no activity for fiscal year 2002.

REGULATIONS, GUIDELINES, AND LITERATURE:

HUD Handbook 4260.1, "Miscellaneous Type Home Mortgage Insurance, Section 223(a), (e), and (d)," no charge; 24 CFR 207.31a (for multifamily); 24 CFR 203.43a (for single family).

INFORMATION CONTACTS:

Regional or Local Office:   None. Persons should contact the FHA Resource Center at 1-800-CALLFHA (1-800-225-5342) for more information.

Headquarters Office:   Wanda L. Sampedro 451 7th Street, SW, Washington, District of Columbia 20410 Email: info@fhaoutreach.com Phone: (800) 225-5342.

Web Site Address:  
https://portal.hud.gov/hudportal/HUD

EXAMPLES OF FUNDED PROJECTS:

Not applicable.

CRITERIA FOR SELECTING PROPOSALS:

Not applicable.