14.142 PROPERTY IMPROVEMENT LOAN INSURANCE - ALL EXISTING STRUCTURES (Title I, Section 2, Class 1(a)) FEDERAL AGENCY: HOUSING PRODUCTION AND MORTGAGE CREDIT/FHA, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AUTHORIZATION: National Housing Act as amended, Title I, Section 2; Public Law 73-479, Public Law 84-1020 and Public Law 90-448: 12 U.S.C. 1703. OBJECTIVES: To facilitate the financing of improvements to homes and other existing structures. TYPES OF ASSISTANCE: Guaranteed/Insured Loans. USES AND USE RESTRICTIONS: FHA insures lenders against losses on loans. Insured loans may be used to finance alterations, repairs, and improvements for existing structures which substantially protect or improve their basic livability or utility. The maximum amount of the loan is $5,000. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: Eligible borrowers include the owner of the property to be improved or a lessee having a lease extending at least 6 months beyond maturity of the loan. Beneficiary Eligibility: Same as applicant eligibility. Credentials/Documentation: The responsibility for credit approval of borrowers is exercised by insured lenders. APPLICATION AND AWARD PROCESS: Preapplication Coordination: None. Application Procedure: The borrower applies directly to an insured lender. Award Procedure: None. Deadlines: None. Range of Approval/Disapproval Time: FHA 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: Renewals are at the discretion of the approved lender. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: FHA 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 financing charge is 8.83 percent to 10.5 percent (annual percentage rate) depending upon amount and term of loan. The insurance charge is $0.50 per $100 per year of the amount advanced (included in financing charge). Length and Time Phasing of Assistance: Loans mature in 7 years and 32 days or earlier. Loans may be refinanced, but may not extend beyond 12 years from the date of the original note. POST ASSISTANCE REQUIREMENTS: Reports: Annual delinquency report "call report" is required of each lender. 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 FHA regulations and standards. Records: Lenders are required to service and maintain records in accordance with acceptable lending practices of prudent lending institutions and the FHA regulations. FINANCIAL INFORMATION: Account Identification: 25-02-4070-0-3-556. Face Value of Loans: FY 70 $669,000,000; FY 71 est $750,000,000; and FY 72 est $860,000,000. (Total loans insured under title - Class 1(a), 1(b), 2(a), 2(b). This includes loans insured under programs 14.142; 14.143; 14.144; and 14.145.) Range and Average of Financial Assistance: See Uses and Use Restrictions. PROGRAM ACCOMPLISHMENTS: In fiscal year 1970, 360,527 loans were insured (including mobile homes). In fiscal year 1971, the total number of loans insured under title I - Class 1(a), 1(b), 2(a), 2(b), is estimated at $400,000. In fiscal year 1972, the total number of loans insured is estimated at $450,000. REGULATIONS, GUIDELINES, AND LITERATURE: "Fixing Up Your Home," F/MP-29, no charge; “One of HUD's Roles in Home Improvement," HUD-29-F, no charge; "Fact Sheet: Property Improvements (Loan Insurance)," no charge; 24 CFR 201.1(j). INFORMATION CONTACTS: Regional or Local Office: Contact the appropriate HUD Area Office, 4-71 14.143 PROPERTY IMPROVEMENT LOAN INSURANCE - CONSTRUCTION OF NONRESIDENTIAL FARM STRUCTURES (Title I, Section 2, Class 2(b)) FEDERAL AGENCY: HOUSING PRODUCTION AND MORTGAGE CREDIT/FHA, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AUTHORIZATION: National Housing Act as amended, Title I, Section 2; Public Law 73-479, Public Law 75-424, Public Law 84-1020, and Public Law 90-448; 12 U.S.C. 1703. OBJECTIVES: To facilitate financing for construction of proposed nonresidential farm structures. TYPES OF ASSISTANCE: Guaranteed/Insured Loans. USES AND USE RESTRICTIONS: FHA insures lenders against losses on loans. Insured loans may be used to finance proposed nonresidential farm structures. The maximum amount of the loan is $5,000. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: Eligible borrowers include the owner of the property to be improved or a lessee having a lease extending at least 6 months beyond maturity of the loan. Beneficiary Eligibility: Same as applicant eligibility. Credentials/Documentation: The responsibility for credit approval of borrowers is exercised by insured lenders. APPLICATION AND AWARD PROCESS: Preapplication Coordination: None. Application Procedure: The borrower applies directly to an insured lender. Award Procedure: Approval by insured lender. Range of Approval/Disapproval Time: FHA 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: Renewals are at the discretion of the approved lender. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: FHA 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 financing charge is 8.83 percent to 10.57 percent (annual percentage rate) depending on amount of loan and term. (5.86 percent to 6.25 percent if term exceed 7 years and 32 days.) The insurance charge is $0.50 per $100 per year of the amount advanced (included in finance charge). Length and Time Phasing of Assistance: Loans mature in 7 years and 32 days or earlier. Loans may be refinanced, but may not extend beyond 12 years from the date of the original note. POST ASSISTANCE REQUIREMENTS: Reports: Annual delinquency report (call report) is required of each lender. Audits: The Department of Housing and Urban Development reserve the right to audit the accounts of lenders in order to determine their compliance and conformance with FHA regulations and standards. Records: Lenders are required to service and maintain records in accordance with acceptable lending practices of prudent lending institutions and the FHA regulations. FINANCIAL INFORMATION: Account Identification: 25-02-4070-0-3-556. Face Value of Loans: FY 70 $669,000,000; FY 71 est $750,000,000; and FY 72 est $860,000,000. (Total loans insured under title I - Class 1(a), 1(b), 2(a), 2(b).) Range and Average of Financial Assistance: See Uses and Use PROGRAM ACCOMPLISHMENTS: In fiscal year 1971, all activity Regional or Local Office: Contact appropriate HUD Area Office or 14.144 PROPERTY IMPROVEMENT LOAN INSURANCE - CONSTRUCTION OF NONRESIDENTIAL OR NONFARM STRUCTURES (Title I, Section 2, Class 2(a)) FEDERAL AGENCY: HOUSING PRODUCTION AND MORTGAGE CREDIT/FHA, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AUTHORIZATION: National Housing Act, as amended, Title I, Section 2; Public Law 73-479, Public Law 84-1020, and Public Law 90-448; 12 U.S.C. 1703. OBJECTIVES: To facilitate financing for construction of proposed nonresidential structures. TYPES OF ASSISTANCE: Guaranteed/Insured Loans. USES AND USE RESTRICTIONS: FHA insures lenders against losses on loans. Insured loans may be used to finance proposed residential and nonfarm structures. The maximum amount of the loan is $5,000. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: Eligible borrowers include the owner of the property to be improved or a lessee having a lease extending at least 6 months beyond maturity of the loan. Beneficiary Eligibility: Same as applicant eligibility. Credentials/Documentation: The responsibility for credit approval of borrowers is exercised by insured lenders. APPLICATION AND AWARD PROCESS: Preapplication Coordination: None. Application Procedure: The borrower applies directly to an insured lender. Award Procedure: Approved by insured lender. Range of Approval/Disapproval Time: FHA 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: Renewals are at the discretion of the approved lender. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: FHA 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 financing charge is 8.83 percent to 10.57 percent (annual percentage rate) depending upon amount and term of loan. The insurance charge is $0.50 per $100 per year of the amount advanced (included in financing charge.) Length and Time Phasing of Assistance: Loans mature in 7 years and 32 days or earlier. Loans may be refinanced, but may not extend beyond 12 years from the date of the original note. POST ASSISTANCE REQUIREMENTS: Reports: Annual delinquency report ("call report") is required of each lender. 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 FHA regulations and standards. Records: Lenders are required to service and maintain records in accordance with acceptable lending practices of prudent lending institutions and the FHA regulations. FINANCIAL INFORMATION: Account Identification: 25-02-4070-0-3-556. Face Value of Loans: FY 70 $669,000,000; FY 71 est $750,000,000; and FY 72 est $860,000,000. (Total loans insured under title I - class 1(a), 1(b), 2(a), 2(b).) Range and Average of Financial Assistance: See Uses and Use Restrictions. PROGRAM ACCOMPLISHMENTS: In fiscal year 1971, all activity under title I- classes 1(a), 1(b), 2(a), 2(b) is reported in the program 14.142 description for title I class 1(a). Regional or Local Office: Contact the appropriate HUD Area Office, RELATED PROGRAMS: 14.142, Property Improvement Loan 14.145 PROPERTY IMPROVEMENT LOAN INSURANCE - EXISTING MULTIFAMILY DWELLINGS (Title I, Section 2, Class 1(b)) FEDERAL AGENCY: HOUSING PRODUCTION AND MORTGAGE CREDIT/FHA, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AUTHORIZATION: National Housing Act, as amended, Title I, Section 2; Public Law 73-479; Public Law 84-1020 and Public Law 90-448; 12 U.S.C. 1703. OBJECTIVES: To facilitate the financing of improvements to existing multifamily structures. TYPES OF ASSISTANCE: Guaranteed/Insured Loans. USES AND USE RESTRICTIONS: FHA insures lenders against losses on loans. Insured loans may be used to finance alterations, repairs, and improvements for existing multifamily structures of two or more units which substantially protect or improve their basic livability or utility. The maximum amount of the loan is $2,500 per unit, not to exceed $15,000. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: Eligible borrowers include the owner of the property to be improved or a lessee having a lease extending at least 6 months beyond maturity of the loan. Beneficiary Eligibility: Same as applicant eligibility. Credentials/Documentation: Documentation regarding characteristics of the property and qualifications of the borrower are assembled by the lender and submitted to FHA in cases where loans exceed $5,000. APPLICATION AND AWARD PROCESS: Preapplication Coordination: None. Application Procedure: The borrower applies directly to an insured lender. Insured lenders submit application to FHA for loans over $5,000. Award Procedure: Approval by insured lender. Range of Approval/Disapproval Time: FHA does not ordinarily Renewals: Renewals are at the discretion of the lender. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: FHA 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 financing charge is 8.83 percent to 10.57 percent (annual percentage rate), depending upon amount and term of loan. The insurance charge is $0.50 per $100 per year of the amount advanced (included in financing charge). Length and Time Phasing of Assistance: Loans mature in 7 years and 32 days or earlier. Loans may be refinanced, but may not extend beyond 12 years from the date of the original note. POST ASSISTANCE REQUIREMENTS: Reports: Annual delinquency report ("call report") is required of each lender. 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 FHA regulations and standards. Records: Lenders are required to service and maintain records in accordance with acceptable lending practices of prudent lending institutions and the FHA regulations. FINANCIAL INFORMATION: Account Identification: 25-02-4070-0-3-556. Face Value of Loans: FY 70 $669,000,000; FY 71 est $750,000,000; and FY 72 est $850,000,000. (Total loans insured under title I - class 1(a), 1(b), 2(a), 2(b).) Range and Average of Financial Assistance: See Uses and Use PROGRAM ACCOMPLISHMENTS: In fiscal year 1971, all activity Regional or Local Office: Contact the appropriate HUD Area Office, RELATED PROGRAMS: 14.107, Major Home Improvement Loan 14.146 PUBLIC HOUSING - ACQUISITION (WITH OR WITHOUT REHABILITATION) AND CONSTRUCTION FEDERAL AGENCY: HOUSING PRODUCTION AND MORTGAGE CREDIT/FHA, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AUTHORIZATION: U.S. Housing Act of 1937, as amended; Public Law 75-412; 42 U.S.C. 1401-1435. OBJECTIVES: To provide decent, safe and sanitary low-rent housing and related facilities for families of low income through authorized public agency ownership. TYPES OF ASSISTANCE: Project Grants. USES AND USE RESTRICTIONS: To assist local housing authorities in providing low-rent housing by (1) acquiring existing housing from the private market (acquisition); (2) procuring construction by competitive bidding where the housing authority acts as the developer (conventional); or (3) letting contracts to private developers (turnkey). Annual contributions are made to housing authorities to guarantee debt service and to maintain rents at or below 25 percent of tenant income. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: Local housing authorities established by a local government in accordance with state law, authorized public agencies, or Indian tribal organizations are eligible. The proposed program must be approved by the local governing body. Beneficiary Eligibility: Families of low income. A single person who is elderly, displaced under certain conditions, or the remaining member of a tenant family is also eligible. Credentials/Documentation: The applicant must support the application by furnishing population and housing data showing the need for the number of units requested. If it is the first application, the applicant must also furnish documentation that it is a legal entity. APPLICATION AND AWARD PROCESS: Preapplication Coordination: Execution of Cooperation Agreement between local government and local public agency. Application Procedure: Submission of Application for Low-Rent Housing Program (Forms HUD 52470, 52470A and sometimes 52470C). HUD Handbook RHA 7402.1 covers applications for housing units and preliminary loans. Award Procedure: The Area Office Director (or Regional Administrator where Area Offices are not yet established) makes final decision to authorize approval of individual applications. Deadlines: None. Range of Approval/Disapproval Time: Approximately 30 days for processing application. Appeals: Not applicable. Renewals: Not applicable. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: Annual contributions to housing authorities to meet debt service requirements. Additional contributions are available for certain operating and maintenance expenses attributable to a dwelling unit. There are no matching requirements. An indirect local contribution results from the difference between full local property taxes and payments in lieu of taxes made by local housing authorities. Length and Time Phasing of Assistance: Contributions made annually for up to 40 years. POST ASSISTANCE REQUIREMENTS: Reports: Annual Operating Budget; periodic occupancy and financial reports. Audits: Periodic fiscal, occupancy, general management, and maintenance audits. Records: Those necessary to indicate compliance with Annual Contributions Contract. FINANCIAL INFORMATION: Account Identification: 25-02-0139-0-1-555. Obligations: (Grants) FY 70 $472,619; FY 71 est $654,500; and FY 72 est $824,500. Range and Average of Financial Assistance: For fiscal year 1971, the average per unit annual contribution is estimated to be $1,457. PROGRAM ACCOMPLISHMENTS: It is estimated that during fiscal year 1971, applications for 71,000 units will be approved and Annual Contributions Contracts will be executed for 83,000 dwelling units. REGULATIONS, GUIDELINES, AND LITERATURE: "Housing for Low-Income Families"; Fact Sheet: "Low-Rent Public Housing Program," "Low-Rent Housing Turnkey Handbook," (FHA 7420.1). 14.147 PUBLIC HOUSING-HOME-OWNERSHIP FOR LOW-INCOME FAMILIES FEDERAL AGENCY: HOUSING PRODUCTION AND MORTGAGE TYPES OF ASSISTANCE: Direct Loans; Formula Grants. USES AND USE RESTRICTIONS: To assist local public agencies in providing housing purchase opportunities for low-income families by crediting the amount budgeted for routine maintenance, which is performed by the tenants, to family equity accounts. When family income increases to the point where it can obtain permanent financing for the unit, or when the equity account equals the unamortized debt and closing costs, ownership passes to the family. Originally the units are owned (Turnkey III) or leased (Turnkey IV) by the local public agency. The unit must be legally discrete and can be part of a planned unit development, condominium, or cooperative. During the period of tenancy, the family makes payments between 20 and 25 percent of their income. The Turnkey III homes are amortized over a period of 30 years and the Turnkey IV assistance is for 20 years. The mutual-help program for the Indians allows families to contribute their labor in the construction of the housing. They may also contribute the building site, and, where feasible, indigenous building materials. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: Local housing authorities established by a local APPLICATION AND AWARD PROCESS: Preapplication Coordination: Execution of a Cooperation Agreement between the local government and the local public agency. Application Procedure: Local public agencies should contact the appropriate HUD Area or Regional Office; prospective homeowners should apply to the local public agency. Award Procedure: The Area Director (or Regional Administrator where Area Offices are not yet established) makes final decision to authorize approval of applications. Deadlines: None. Range of Approval/Disapproval Time: Approximately 30 days for ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: Annual contributions to local public agencies for use as subsidies to homebuyers and to cover debt service. There are no matching requirements. Length and Time Phasing of Assistance: Length of annual contributions commitment is approximately 25 years. POST ASSISTANCE REQUIREMENTS: Reports: Annual Operating Budget; periodic statistical occupancy reports. Audits: Periodic fiscal, occupancy and maintenance and general Records: Those necessary to indicate compliance with Annual FINANCIAL INFORMATION: Account Identification: 25-02-4089-0-3-555, (contract authorization fund); 25-02-0139-0-1-555, (payments). Obligations: Data on this activity cannot be split out from others REGULATIONS, GUIDELINES, AND LITERATURE: Material on the Regional or Local Office: HUD Area Office listed in the appendix Headquarters Office: Publicly Financed Housing Division, Housing RELATED PROGRAMS: 14.146, Public Housing - Acquisition, |