The Department of Housing and Urban Development's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination. HUD fulfills this mission through high ethical standards, management and accountability, and by forming partnerships with community organizations.
No fiscal activity under this section since Fiscal Year 2005.
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.
For single family purposes, an individual or family is eligible to apply through HUD approved mortgagees. Multifamily sponsorship is determined by applicable program requirements.
For single family applications, documentation regarding the characteristics of the property and the qualifications of the mortgagor are assembled by the mortgagee 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.
Aplication and Award Process
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.
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.
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.
See Application Procedure.
National Housing Act, as amended, Section 223(e), Public Law 90-448, 12 U.S.C. 1715(b), 1715(n).
Range of Approval/Disapproval Time
HUD will state the reasons for refusing an application. The applicant may request the HUD-approved mortgagee to seek HUD reconsideration.
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
Post Assistance Requirements
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.
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.
Mortgages are required to service and maintain records in accordance with acceptable practices of prudent lending institutions and the HUD regulations.
(Mortgages insured) Reported under program 14.133.
Range and Average of Financial Assistance
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. There was no activity under this program in FY 2006.
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).
Regional or Local Office
All projects are processed in Single Family Homeownership Centers, Multifamily Hubs, or local HUD offices. Persons are encouraged to contact the Homeownership Center or HUD serving their State, or the nearest local HUD Office. See Catalog Address Appendix IV for a list of Offices.
Criteria for Selecting Proposals
Hundreds of people flocked to the African-American Philanthropy Summit held by the Cleveland Foundation, integrating a theme entitled “Inspiring 100 Acts of African-American Philanthropy.”