Section of

National Housing
Act (NHA)

221(d)(2)
continued

221(d)(3)

221(d)(4)

DESCRIPTION

6. Where refinancing is involved with repair or rehabilitation, limits mortgage to cost of repair plus amount of existing indebtedness. 7. Authorizes owner-occupant to contribute value of his labor as equity.

Multifamily housing

1. Specifies types of mortgagors - public
(except public housing agency), cooperative
(and investor-sponsor), nonprofit, and
limited dividend.

2. Prescribes dollar limitations on project
mortgage amount and per unit mortgage amount.

3. Describes eligible properties
new construction;

-

substantial rehabilitation;

housing which had been rehabilitated with
Federal assistance by local renewal
agencies.

4. Requires mortgage not exceed. 100% of replace-
ment cost or rehab cost plus value (or amount
of existing indebtedness), except 90% in the
case of a limited distribution mortgagor.

7. No specific provision in sec. 401. This purpose
will be accomplished without statutory directive.
Sec. 903 of the 1970 HUD Act authorizes Techni-
cal assistance to families and nonprofit groups
with respect to self-help programs. Sec. 402(h)
(1) authorizes insured mortgage advances with
respect to homes developed pursuant to self-help
programs.

1. Same as sec. 501, except includes full distribu-
tion mortgagors and sales mortgagors, and no
limit on type of public mortgagors. No public
mortgagors under sec. 502.

2. No overall limit on mortgage amount. Per unit
mortgage limits are administratively established
pursuant to sec. 3.

3. Same as sec. 501.

4. 90% in all cases under sec. 501. 100% under sec. 502, except 90% in case of limited distribution mortgagor. Secs. 501(d), (e), 502(1)(2) (A), (B). No statutory limitations where outstanding indebtedness exists.

1. No limit on project mortgage amount. Per unit mortgage limits are administratively established pursuant to sec. 3.

DESCRIPTION

2. Requires mortgage not exceed 90% of

replacement cost or 90% of rehab cost plus
value (or cost plus amount of existing
indebtedness).

3. Authorizes a 10% builder's and sponsor's
profit and risk allowance to be included
in the mortgage. (where mortgagor is builder).

Prescribes a maximum interest rate of 6%, but
221(d) (3) mortgages can have lower interest rate
uniformly equal to the lower of 3% or the aver-
age market yield to maturity of outstanding
U.S. obligations.

221(d)(6)

1.

3. Same in discretion of Secretary. Sec. 506(c)(2).

No statutory maximum interest rate. Sec. 4 rates will be established to meet the private market.

4. Prescribes maximum home mortgage amounts
(identical to sec. 203 (b) amounts, but
extend beyond 4-family units).

5. Prescribes loan-to-value ratios (same as for
sec. 203(b), except applied against "replace-
ment cost" with respect to new construction
rather than "appraised value").

Where repair or rehabilitation by the owneroccupant is involved, requires the loan-tovalue ratios to be based on the sum of the estimated cost of the repair or rehabilitation plus the value of the property before repair. 7. Requires mortgage amount to be reduced by 7% (rather than 15% as under sec. 203) for nonoccupant lessors of homes. 15% if held by nonoccupant owner for sale by 18th amortization payment.

8.

10. Multifamily mortgages:

requires mortgage amount not to exceed 90%
of replacement cost;

authorizes insurance with respect to new
construction or rehabilitation (with or
without refinancing) and limited category
of existing housing without rehabilitation
(housing which had been rehabilitated with
Federal assistance by local renewal
agencies).

3. Contained in sec. 501 (b), but no distinction
among mortgagors is made and no reference to
$100 stock or other interest in the mortgagor.
4. No statutory maximum mortgage amounts. The se
limits would be established by the Secretary for
each housing market area. Sec. 3.

5. See discussion under appropriate heading of sec.
203(b). The use of the term "replacement cost"
in the statute is not necessary for appraisals to
reflect renewal activities.

Same in discretion of Secretary. Sec. 401 (b)(1).

7. 15% reduction, unless sold to owner-occupant by 18th amortization payment.

Sec. 401(a)(2).

10.

Contained in sec. 501.

13. Provides that the home mortgage term be the same as under sec. 203(b).

14. Authorizes the Secretary to prescribe the term of a multifamily mortgage.

15. Prescribes a maximum interest rate of 6%.

Authorizes mortgaged property to be released from the lien of the mortgage.

Incorporates by reference provisions of secs. 204 and 207 relating to insurance benefits plus more favorable insurance benefits where a multifamily mortgage is assigned to the Secretary to avoid foreclosure.

13.

See discussion under sec. 203(b) of NHA. 14. Contained in sec. 501(h).

15. No statutory interest rate. See sec. 4. No similar provision. This provision is unnecessary.

See discussions of secs. 204 and 207. More favorable insurance benefits upon assignment of the mortgage available for secs. 501 and 502 mortgages. (d).

Sec. 604