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Catalog of Federal Domestic Assistance

Program Descriptions

14.127:  Mortgage Insurance: Manufactured Home Parks

Popular Name:  207(m) Manufactured Home Parks

Objectives:  To make possible the financing of construction or rehabilitation of manufactured home parks.

PROGRAM AND AWARD	FINANCIAL AND INFORMATION CONTACTS
ELIGIBILITY REQUIREMENTS	FINANCIAL AND ADMINISTRATIVE INFO.
APPLICATION AND AWARD PROCESS	INFORMATION CONTACTS
RELATED PROGRAMS	ASSISTANCE CONSIDERATIONS
PROGRAM ACCOMPLISHMENTS	POST ASSISTANCE REQUIREMENTS

14.127 ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:  Eligible mortgagors include investors, builders, developers and others who meet HUD requirements for mortgagors.

Beneficiary Eligibility:  Families or individuals (Including the elderly) owning manufactured homes and desiring to lease spaces in a manufactured home park.

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

14.127 APPLICATION AND AWARD PROCESS:

Preapplication Coordination:  The sponsor has an initial conference with the local HUD Field Office to determine the preliminary feasibility of the project before a site appraisal and market analysis (SAMA) application (for new construction projects or feasibility application (for substantial rehabilitation projects) is submitted. This program is excluded from coverage under OMB Circular No. A-102. An environmental assessment is required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official 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:  The sponsor submits an application for a SAMA or feasibility application. The application for conditional and firm commitment are submitted by the sponsor through a HUD approved mortgagee. Applications are submitted to the local HUD field office which does multifamily processing. This program is excluded from coverage under OMB Circular No. A-110.

Award Procedure:  If the project meets program requirements, the HUD Field Office issues a commitment to insure the mortgage to the lender.

Deadlines:  Deadlines are established on a case-by-case basis by the local HUD office.

Range of Approval/Disapproval Time:  Processing time, depending upon the degree of preparation by the sponsor, ranges from 3 to 6 months.

Appeals:  If an application for mortgage insurance is refused, HUD will state the reasons for the refusal. If reapplication is desired, the applicant may reapply subject to concurrence of the lender.

Renewals:  The term of a commitment to insure may be extended when more time is required.

Criteria for Selecting Proposals:  Not applicable.

Examples of Funded Projects:  Not applicable.

Range and Average of Financial Assistance:  Insured mortgages may be used to finance the construction or rehabilitation of manufactured home parks consisting of 5 or more spaces. The maximum mortgage limit is $9,000 per space. In areas where cost levels so require, limits may be increased up to 140 percent on a case-by-case basis. The maximum amount of the loan may not exceed 90 percent of the estimated value.

14.127 RELATED PROGRAMS:

• 14.110 Manufactured Home Loan Insurance: Financing Purchase of Manufactured Homes as Principal Residences of Borrowers;
• 64.119 Veterans Housing: Manufactured Home Loans.

14.127 PROGRAM ACCOMPLISHMENTS:

No loans were insured in fiscal year 1999.

14.127 FINANCIAL AND ADMINISTRATIVE INFO:

Federal Agency:  HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Type of Assistance:  Guaranteed/Insured Loans.

Obligations:  (Mortgages insured) Reported under program 14.135.

Budget Account Number:  86-4077-0-3-371.

Authorization:  National Housing Act, as amended, Section 207, Public Law 84-345, 12 U.S.C. 1713.

Regulations, Guidelines, and Literature:  Fact Sheet, Manufactured Home Parks; 24 CFR 207.33 et seq.; Mobile Home Parks Financing, no charge; Housing Surveys, Part II; HUD Handbook 4545.1, Mobile Home Park Program, no charge.

14.127 INFO CONTACTS:

Regional or Local Office:  All projects are processed in Local HUD Offices. Persons are encouraged to communicate with the nearest local HUD Field Office listed in the Catalog address appendix.

Headquarters Office:  Office of Business Products, Department of Housing and Urban Development, Washington, DC 20410. Phone: (202) 708-2866. Use the same number for FTS.

(See Appendix IV for more contact info.)

14.127 ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:  The maximum amount of the loan may not exceed 90 percent of the estimated value. The mortgage insurance premium is one-half percent of the mortgage amount. The HUD-inspection fee may not exceed $5 per $1,000 of the mortgage amount.

Length and Time Phasing of Assistance:  The maximum mortgage term is 40 years, or not in excess of three-fourths of the remaining economic life, whichever is less.

Uses and Use Restrictions:  HUD insures lenders against loss on mortgages. Insured mortgages may be used to finance the construction or rehabilitation of manufactured home parks consisting of 5 or more spaces. The maximum mortgage limit is $9,000 per space. In areas where cost levels so require, limits may be increased up to 140 percent on a case-by-case basis.

14.127 POST ASSISTANCE REQUIREMENTS:

Reports:  Any change of the mortgagor during the period of mortgage insurance must be approved by HUD. Defaults in meeting the mortgage terms must be reported. All mortgagors are required to submit an annual financial statement to HUD. All approved mortgagees at any time upon request by HUD must furnish copies of their latest financial statements.

Audits:  The Department of Housing and Urban Development reserves the right to audit the accounts of either the mortgagee or mortgagor to determine their compliance and conformance with HUD regulations and standards.

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