Sec. 221(j) Sec. 221(d)(3) - rental and cooperative 1961 162,546 36,051 20,318 COMPARISON OF PROPOSED INCOME LIMITS BASED ON MEDIAN INCOMES WITH SECTION 235-36 INCOME LIMITS 2 Income Income Limits Based on 1/ Cities selected at random from all sections of the country, subject to availability of median incomes and income limits. COMPARISON OF PROPOSED INCOME LIMITS BASED ON MEDIAN INCOMES WITH SECTION 235-36 INCOME LIMITS 2 Income Median When Compared under 10,000 Cities selected at random from all sections of the country, subject to availability of median incomes and income limits. 2/ For a 4-person family. Source: HPMC-FHA 4400.30A, dated Sept. 1, 1970. Source: FHA 4400.36, dated March 1970. COMPARISON OF PROPOSED INCOME LIMITS BASED ON May 25, 1971 1. MAJOR DIFFERENCES BETWEEN MORTGAGE CREDIT ASSISTANCE ACT IN 1970 This Flexible Mortgage Amounts (Prototypes) - The 1970 provisions have been simplified and changed to conform closely to the public housing prototype cost provision enacted by the Congress in the 1970 HUD Act. is done by the simplification of land cost determinations in the prototype estimate and by the inclusion of language on adequate amenities and sound construction and design. (Sec. 3) 2. Cooperative Management Housing Insurance Fund. This existing insurance fund was not retained in the 1970 bill for use with respect to future unsubsidized mortgages involving cooperatives. The 1971 bill retains this fund. (Sec. 201(c)). A conforming amendment to the National Housing Act will extend the mutuality provisions to cooperative mortgagors under the new Act. 3. Home Improvement Loans. The maximum loan amount is increased from $5,000 to $6,500 and the per unit maximum loan amount with respect to multi-unit structures is increased from $2,500 to $3,500. (Sec. 302). 4. Mortgage Maturities All remaining limits on mortgage terms have been removed (in 1970 bill home mortgage terms could not exceed the lesser of 35 years or 3/4 of the remaining economic life of the property and land development mortgage terms generally could not exceed 10 years). 5. Dollar Maximum Mortgage Amounts 6. 7. All remaining fixed dollar limits on mortgage amounts have been removed ($50 million on hospital mortgages, $12.5 million on nursing home and intermediate care facility mortgages, $5 million on group practice facility mortgages, and $2,500 per space for mortgage covering mobile home parks). New Homes Not Inspected by FHA Before Construction Existing law discourages builders from bypassing FHA inspections by providing lower loan-to-value ratios in such cases. The 1970 bill did not retain this disincentive. The 1971 draft includes a penalty similar to existing law. (Sec. 401(d)). Land Development Mortgages Loan-to-value ratio modified to conform to ratio in new community guaranty program enacted in 1970; 80% of value of land before development plus 90% of cost of development (Sec. 505(c)). |