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Catalog of Federal Domestic Assistance

Program Descriptions

CATALOG OF FEDERAL DOMESTIC ASSISTANCE

14.142:  Property Improvement Loan Insurance for Improving All Existing Structures and Building of New Nonresidential Structures

Popular Name:  Title I

Objectives:  To facilitate the financing of improvements to homes and other existing structures and the building of new nonresidential structures.

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

14.142 ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:  Eligible borrowers include the owner of the property to be improved, a lessee having a lease extending at least 6 months beyond maturity of the loan, or a purchaser of the property under a land installment contract.

Beneficiary Eligibility:  Individuals/families.

Credentials/Documentation:  The responsibility for credit approval of borrowers is exercised by HUD-insured lenders. This program is excluded from coverage under OMB Circular No. A-87.

14.142 APPLICATION AND AWARD PROCESS:

Preapplication Coordination:  None. This program is excluded from coverage under E.O. 12372.

Application Procedure:  The borrower applies directly to an insured lender, or through a lender's approved dealer. This program is excluded from coverage under OMB Circular Nos. A-102 and A-110.

Award Procedure:  None.

Deadlines:  None.

Range of Approval/Disapproval Time:  HUD does not ordinarily participate in the approval or disapproval of individual loans.

Appeals:  Reapplication in case of refusal should be submitted to an approved lender.

Renewals:  Not applicable.

Criteria for Selecting Proposals:  Not applicable.

Examples of Funded Projects:  Not applicable.

Range and Average of Financial Assistance:  The maximum loan amount is $25,000 for improving a single family home or for improving or building a nonresidential structure. For improving a multifamily structure, the maximum loan amount is $12,000 per family unit, not to exceed a total of $60,000 for the structure.

14.142 RELATED PROGRAMS:

• 10.417 Very Low-Income Housing Repair Loans and Grants;
• 14.108 Rehabilitation Mortgage Insurance;
• 14.110 Manufactured Home Loan Insurance: Financing Purchase of Manufactured Homes as Principal Residences of Borrowers.

14.142 PROGRAM ACCOMPLISHMENTS:

In fiscal year 1999, HUD insured 28,107 loans for a total amount of $413,935,580. Fiscal year 2000 should be about the same.

14.142 FINANCIAL AND ADMINISTRATIVE INFO:

Federal Agency:  HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Type of Assistance:  Guaranteed/Insured Loans.

Obligations:  (Loans insured) FY 99 $414,000,000; FY 00 est $340,000,000; and FY 01 est $464,000,000.

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

Authorization:  National Housing Act, Title I, Section 2, as amended, 12 U.S.C. 1703.

Regulations, Guidelines, and Literature:  "Fixing Up Your Home," HUD-52-H(7), no charge.

14.142 INFO CONTACTS:

Regional or Local Office:  Persons are encouraged to contact the Homeownership Center serving their State, or the nearest local HUD Office. See Catalog Address Appendix IV for a list of offices.

Headquarters Office:  None.

(See Appendix IV for more contact info.)

14.142 ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:  HUD insures private lenders against losses of up to 90 percent of any single loan with maximum insurance coverage limited to a total of 10 percent of the total amount insured. The interest rate is a negotiable interest rate agreed upon between the borrower and lender. The annual insurance charge is 50 cents per $100 of the amount advanced. This program has maintenance of effort (MOE) requirements; see funding agency for further details.

Length and Time Phasing of Assistance:  Loans mature in 20 years and 32 days or earlier. Loans may be refinanced, but may not extend beyond 30 years from the date of the original note.

Uses and Use Restrictions:  HUD insures lenders against loss on loans. Insured loans may be used to finance alterations, repairs, and improvements for existing structures and the building of new nonresidential structures which substantially protect or improve the basic livability or utility of the properties. The maximum loan amount is $25,000 for improving a single family home or for improving or building a nonresidential structure. For improving a multifamily structure, the maximum loan amount is $12,000 per family unit, not to exceed a total of $60,000 for the structure.

14.142 POST ASSISTANCE REQUIREMENTS:

Reports:  Monthly delinquency reports are required of major lenders.

Audits:  The Department of Housing and Urban Development reserves the right to audit the accounts of lenders in order to determine their compliance and conformance with HUD regulations and standards.

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