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Grant Community.com Catalog of Federal Domestic Assistance Program Descriptions |
CATALOG OF FEDERAL DOMESTIC
ASSISTANCE
14.184: Mortgages Insurance for Single Room Occupancy (SRO) Projects
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| 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 |
Applicant Eligibility: Eligible applicants may be nonprofit entities; builder/sellers with a nonprofit purchaser, a limited distribution entity, profit-motivated entities or public entities.
Beneficiary Eligibility: Residents are subject to normal tenant selection procedures. There are no income limits for admission.
Credentials/Documentation: Along with the Application for Mortgage Insurance, the applicant must provide a market profile demonstrating a clear need for the proposed SRO, experience profiles as to SRO operation, a certification from the local government assuring support of the project, and a relocation plan if needed.
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 9 to 12 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: The maximum amount of the loan may not exceed 90 percent of the estimated replacement cost.
No loans were insured in fiscal year 1999, and the Department does not anticipate insuring any loans in fiscal year 2000.
Federal Agency: HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Type of Assistance: Guaranteed/Insured Loans.
Obligations: (Mortgages insured) FY 99 $0; FY 00 est $0; and FY 01 est $0.
Budget Account Number: 86-4077-0-3-371.
Authorization: National Housing Act, Section 221(d), 12 U.S.C. 1751(d); Section 223(g), 12 U.S.C. 1715 (g).
Regulations, Guidelines, and Literature: 24 CFR 221.565; HUD Handbook 4560.3.
Regional or Local Office: Persons are encouraged to communicate with the nearest local HUD Field Office listed in Appendix IV of the Catalog.
Headquarters Office: Office of Business Products, Department of Housing and Urban Development, Washington, DC 20410. Phone: (202) 708-2866.
(See Appendix IV for more contact info.)
Formula and Matching Requirements: The maximum amount of the loan may not exceed 90 percent of the estimated replacement cost. The mortgage insurance premium is one-half percent of the mortgage amount. The HUD fees for application processing and commitment are $3 per $1,000 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 used to finance construction or substantial rehabilitation to projects of 5 or more units comprised primarily of one room residential units, with no more than 10 percent of the total gross floor space dedicated to commercial use (20 percent for substantial rehabilitation projects).
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 HUD regulations.
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Last Updated, November, 2000
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