Section 202 Supportive Housing for the Elderly Program

Section 202 Supportive Housing for the Elderly Program is sponsored by HUD. HUD provides capital advances and contracts for project rental assistance for very low-income elderly persons. Capital advances can be used for the construction, rehabilitation, or acquisition of structures.

Descriptions of Multifamily Programs | HUD. gov / U.S. Department of Housing and Urban Development (HUD) Descriptions of Multifamily Programs Description of Multifamily Programs Federal Housing Administration (FHA) Mortgage Insurance Origination Section 207 Program insures mortgage loans to finance the construction or rehabilitation of a broad range of rental housing.

Section 207 mortgage insurance, although still authorized, is no longer used for new construction and substantial rehabilitation. It is however, the primary insurance vehicle for the Section 223(f) refinancing program. Multifamily new construction and substantial rehabilitation projects are currently insured Section 221(d)(4) programs.

Section 207 insures lenders against loss on mortgage defaults. The intent of the program is to increase the supply of quality and reasonably priced rental housing for middle-income families. FHA mortgage insurance for HUD-approved lenders.

Section 207 mortgage insurance may be used to finance the construction or substantial rehabilitation of detached, semidetached, row, walk-up, or elevator type structures with 5 or more units. A project is eligible for mortgage insurance if the sponsor can demonstrate that there is a definite market demand, that the project is economically self-sufficient, and that financing is secure.

The program has statutory per unit mortgage limits, which vary according to the size of the unit, the type of structure, and the location of the project. There are also loan-to-value and debt service limitations. The mortgage is limited to 90 percent of HUD appraised value.

Eligible mortgagors include investors, builders, developers, and others who meet HUD requirements for mortgagors. All families are eligible to occupy dwellings in a structure whose mortgage is insured under this program, subject to normal tenant selections. The sponsor has a pre-application conference with the local HUD Multifamily Region to determine preliminary feasibility of the project.

The sponsor must then submit a site appraisal and market analysis application (SAMA) (for new construction projects), or feasibility application (for substantial rehabilitation projects). Following HUD's issuance of a SAMA or feasibility letter, the sponsor submits a firm commitment application through a HUD-approved lender for processing.

Considerations include market need, zoning, architectural merits, capabilities of the borrower, availability of community resources, etc. If the proposed project meets program requirements, the local Multifamily Regional Centers or Office issues a commitment to the lender for mortgage insurance. Section 207 was authorized by the National Housing Act. Regulations are found at 24 CFR, Section 200 and Section 207.

The basic program instructions are in HUD Handbook 4400. 1 - Project Mortgage Insurance - Basic Section 207 Instructions available on HUDclips . The program is administered by the Office of Multifamily Housing Programs, Office of Production, Program Administration Division.

Program Accomplishments: In FY2024, the Department did not insure any mortgages. Developers and lenders prefer Section 221 (d)(4) where terms are more advantageous. If you have any questions, please contact MF Production HQ Manufactured Home Parks: MHP207 Section 207 Program insures mortgage loans to facilitate the construction or substantial rehabilitation of multifamily manufactured home parks.

Section 207 promotes the creation of manufactured home communities by increasing the availability of affordable financing and mortgages. FHA mortgage insurance for HUD-approved lenders. The program insures lenders against loss on mortgage defaults.

Insured mortgages may be used to finance the construction or rehabilitation of manufactured home parks. Home parks must consist of 5 or more spaces. Contractors for new construction and substantial rehabilitation projects must comply with prevailing wage requirements under the Davis-Bacon Act.

Eligible mortgagors include investors, builders, developers and others who meet HUD requirements for mortgagors. Families, individuals, or elderly persons owning manufactured homes or desiring to lease spaces in a manufactured park. The sponsor has a pre-application conference with the local HUD Multifamily Region to determine the preliminary feasibility of the project.

The sponsor must then submit a site appraisal and market analysis (SAMA) (for new construction projects) or a feasibility application (for substantial rehabilitation projects). Following HUD's issuance of a SAMA or feasibility letter, the sponsor submits a firm commitment application through a HUD-approved lender for processing.

Considerations include market need, zoning, capabilities of the borrower, and availability of community resources. If the project meets program requirements, the local Multifamily Region issues a commitment to the lender for mortgage insurance. The program is authorized under Section 207 of the National Housing Act (12 U.S.C.

1713), Public Law 84-345. Program regulations are in 24 CFR Part 207. 33.

The basic program instructions are in HUD Handbook 4545. 1, Mobile Home Park Program available on HUDclips . The program is administered by the Office of Multifamily Housing Programs, Office of Production, Program Administration Division.

In FY2024, the Department did not insure any mortgages. If you have any questions, please contact MF Production HQ Cooperative Units: COOP213 Section 213 insures mortgage loans to facilitate the construction, substantial rehabilitation, and purchase of cooperative housing projects.

Each member shares in the ownership of the whole project with the exclusive right to occupy a specific unit and to participate in project operations through the purchase of stock. Section 213 insures lenders against loss on mortgage defaults. Section 213 enables nonprofit cooperative housing corporations or trusts to develop or sponsor the development of housing projects to be operated as cooperatives.

Section 213 also allows investors to provide good quality multifamily housing to be sold to non-profit corporations or trusts upon completion of construction or rehabilitation. FHA mortgage insurance for HUD-approved lenders. Insured mortgages may be used to finance construction, acquisition of existing or rehabilitated detached, semidetached, row, walk-up, or elevator type housing projects consisting of five or more units.

The program has statutory per unit mortgage limits which may vary according to the size of the unit, the type of structure, and the location of the project. There are also loan-to-replacement cost limitations. Contractors for new construction and substantial rehabilitation housing projects must comply with prevailing wage requirements under the Davis-Bacon Act.

Non-profit cooperative ownership housing corporations or trusts are eligible to use Section 213. They may sponsor projects directly, sell individual units to cooperative members, or purchase projects from investor-sponsors. HUD imposes no restrictions on the income or characteristics of individual shareholders/residents in an insured cooperative.

The sponsor has a pre-application conference with the local HUD Multifamily Region to provide general application guidance and to determine the feasibility of the project.

The sponsor must then submit a site appraisal and market analysis (SAMA) application (for new construction projects) or feasibility application (for substantial rehabilitation projects), arranges for an environmental assessment, and check with the State to determine its requirements. Following HUD's issuance of a SAMA or feasibility letter, the sponsor submits a firm commitment application through a HUD-approved lender for processing.

Considerations include, market need, zoning, architectural merits, capabilities of the borrower, and availability of community resources. If the project meets program requirements, the local HUD Multifamily Region issues a commitment to the lender for mortgage insurance. This program is authorized by Section 213 of the National Housing Act (12 U.S.C.

1715e). Program regulations are found in 24 CFR 213. The basic program instructions are in HUD Handbook 4550.

1 - Basic Cooperative Housing Insurance available on HUDclips . The program is administered by the Office of Multifamily Housing Programs, Office of Production, Program Administration Division. Program Accomplishments: In FY2024, the Department insured mortgages for 2 projects with 146 units, totaling $40.

1 million. If you have questions, please contact MF Production HQ Rental Housing for Urban Renewal and Concentrated Development Areas: S220 Section 220 insures loans for multifamily housing projects in urban renewal areas, code enforcement areas, and other areas where local governments have undertaken designated revitalization activities. Section 220 insures lenders against loss on mortgage defaults.

Section 220 provides good quality rental housing in urban areas that have been targeted for overall revitalization. Section 220 insures mortgages on new or rehabilitated housing located in designated urban renewal areas, and in areas with concentrated programs of code enforcement, and neighborhood development. FHA mortgage insurance for HUD-approved lenders.

Insured mortgages may be used to finance construction or rehabilitation of detached, semi-detached, row, walk-up, or elevator type rental housing or to finance the purchase of properties which have been rehabilitated by a local public agency.

Properties must consist of two or more units and must be located in an urban renewal area, in an urban development project, code enforcement program area, urban area receiving rehabilitation assistance as a result of natural disaster, or area where concentrated housing, physical development, or public service activities are being carried out in a coordinated manner.

The program has statutory mortgage limits, which may vary according to the size of the unit, the type of structure, and the location of the project. There are also loan-to-replacement cost and debt service limitations. The maximum amount of the mortgage loan may not exceed 90 percent of the estimated replacement cost for new construction.

For substantial rehabilitation projects, the maximum mortgage amount is 90 percent of the estimated cost of repair and rehabilitation and the estimated value of the property before the repair and rehabilitation project. The maximum mortgage term is 40 years, or not in excess of three-fourths of the remaining economic life of the project, whichever is less.

Contractors for new construction or substantial rehabilitation projects must comply with prevailing wage standards under the Davis-Bacon Act. Eligible mortgagors include private profit motivated entities, public bodies, and others who meet HUD requirements for mortgagors. All families are eligible to occupy a dwelling in a structure where the mortgage is insured under the program, subject to normal tenant selection.

Section 220 is eligible for Multifamily Accelerated Processing (MAP). For new construction and substantial rehabilitation loans, the sponsor works with the MAP-approved lender who submits required exhibits for the pre-application stage. HUD reviews the lender's exhibits and will either invite the lender to apply for a Firm Commitment for mortgage insurance, or decline to consider the application further.

If HUD determines that the exhibits are acceptable, the lender then submits the Firm Commitment application, including a full underwriting package, to the local Multifamily Region for review. The application is reviewed to determine whether the proposed loan is an acceptable risk.

Considerations include market need, zoning, architectural merits, capabilities of the borrower, availability of community resources, etc. If the project meets program requirements, the Multifamily Region issues a commitment to the lender for mortgage insurance. Applications submitted by non-MAP lenders must be processed by HUD field office staff under Traditional Application Processing (TAP).

The sponsor has a pre-application conference with the local HUD Multifamily Region to determine preliminary feasibility of the project. The sponsor must then submit a site appraisal and market analysis application (SAMA) (for new construction projects), or feasibility application (for substantial rehabilitation projects).

Following HUD's issuance of a SAMA or feasibility letter, the sponsor submits a Firm Commitment application through a HUD-approved lender for processing. If the proposed project meets program requirements, the local Multifamily Region issues a commitment to the lender for mortgage insurance. This program is authorized by Section 220(a) and (h), National Housing Act (12 U.S.C.

1715k. Regulations are in 24 CFR 200 et seq. , 24 CFR 220.

1 et seq. The basic program instructions are in HUD Handbook 4555. 1.

- Rental Housing in Urban Renewal Areas for Project available on HUDclips . Refer to the MAP web site for guidelines, instructions, lender approval requirements, and MAP coordinators. The program is administered by the Office of Multifamily Housing Programs, Office of Production, Program Administration Division.

Program Accomplishment: In FY2024, the Department insured mortgages for 1 projects with 272 units, totaling $70 million.

If you have questions, please contact MF Production HQ New Construction or Substantial Rehabilitation of Rental Housing: S221d4 Section 221(d)(4) insures mortgage loans to facilitate the new construction or substantial rehabilitation of multifamily rental or cooperative housing for moderate-income families, elderly, and the handicapped. Single Room Occupancy (SRO) projects may also be insured under this section.

Section 221(d)(4) insures lenders against loss on mortgage defaults. Section 221(d)(4) assists private industry in the construction or rehabilitation of rental and cooperative housing for moderate-income and displaced families by making capital more readily available. The program allows for long-term mortgages (up to 40 years) that can be financed with Government National Mortgage Association (GNMA) Mortgage Backed Securities.

FHA mortgage insurance for HUD-approved lenders. Insured mortgages may be used to finance the construction or rehabilitation of detached, semidetached, row, walkup, or elevator-type rental or cooperative housing containing 5 or more units. The program has statutory mortgage limits which vary according to the size of the unit, the type of structure, and the location of the project.

Eligible mortgagors include public, profit-motivated sponsors, limited distribution, nonprofit cooperatives, builder-seller, investor-sponsor, and general mortgagors. All families are eligible to occupy dwellings in a structure whose mortgage is insured under this program, subject to normal tenant selection. There are no income limits.

Projects may be designed specifically for the elderly or handicapped. Section 221(d)(4) is eligible for Multifamily Accelerated Processing (MAP). The sponsor works with the MAP-approved lender who submits required exhibits for the pre-application stage.

HUD reviews the lender's exhibits and will either invite the lender to apply for a Firm Commitment for mortgage insurance, or decline to consider the application further. If HUD determines that the exhibits are acceptable, the lender then submits the Firm Commitment application, including a full underwriting package, to the local Multifamily Region for review.

The application is reviewed to determine whether the proposed loan is an acceptable risk. Considerations include market need, zoning, architectural merits, capabilities of the borrower, availability of community resources, etc. If the proposed project meets program requirements, the local Multifamily Region issues a commitment to the lender for mortgage insurance.

Applications submitted by non-MAP lenders must be processed by HUD field office staff under Traditional Application Processing (TAP). The sponsor has a preapplication conference with the local HUD Multifamily Region to determine preliminary feasibility of the project.

The sponsor must then submit a site appraisal and market analysis (SAMA) application (for new construction projects), or feasibility application (for substantial rehabilitation projects). Following HUD's issuance of a SAMA or feasibility letter, the sponsor submits a firm commitment application through a HUD-approved lender for processing.

If the proposed project meets program requirements, the local Multifamily Region issues a commitment to the lender for mortgage insurance. The 221(d)(4) program is authorized by the National Housing Act (12 U.S.C. 1715l) (d)(4).

Program regulations are found at 24 CFR 221, subparts C and D. Basic TAP program instructions are in HUD handbook 4560. 01 - Mortgage Insurance for Multifamily Moderate Income Housing Projects available on HUDclips .

Refer to the MAP web-site for guidelines and instructions, lender approval requirements, and MAP coordinators. The program is administered by the Office of Multifamily Housing Programs, Office of Production, Program Administration Division. Program Accomplishments: In FY2024, the Department insured mortgages for 105 projects with 17434 units, totaling $2.

5 billion. If you have questions, please contact MF Production HQ Purchase or Refinancing of Existing Multifamily Housing Projects: S207_223f Section 207/223(f) insures mortgage loans to facilitate the purchase or refinancing of existing multifamily rental housing. These projects may have been financed originally with conventional or FHA insured mortgages.

Properties requiring substantial rehabilitation are not eligible for mortgage insurance under this program. HUD requires completion of critical repairs before endorsement of the mortgage and permits the completion of non-critical repairs after the endorsement for mortgage insurance. Section 223(f) insures lenders against loss on mortgage defaults.

The program allows for long- term mortgages (up to 35 years) that can be financed with Government National Mortgage Association (GNMA) Mortgage-Backed Securities. This eligibility for purchase in the secondary mortgage market improves the availability of loan funds and permits more favorable interest rates. FHA mortgage insurance for HUD-approved lenders.

The property must contain at least 5 residential units with complete kitchens and baths and have been completed or substantially rehabilitated for at least 3 years prior to the date of the application for mortgage insurance. The program allows for non-critical repairs that must be completed within 12 months of loan closing.

Projects requiring substantial rehabilitation are not acceptable under this section and may not involve the replacement of more than one major system. The remaining economic life of the project must be long enough to permit a ten-year mortgage. The mortgage term cannot exceed 35 years or 75 percent of the estimated life of the physical improvements, whichever is less.

Davis Bacon prevailing wage requirements do not apply to this program. Refinance and Acquisition Processing: The Amount Based on Value. The applicable percentage of the estimated value of the property after completion of repairs and improvements.

90% - for Section 202 & 202/8 Direct Loans 87% - for projects with 90% or greater rental assistance 85% - for projects that meet the definition of Affordable Housing 83. 3% – for market rate projects Both for profit and non-profit borrowers are eligible to apply. All persons are eligible to occupy such projects subject to normal occupancy restrictions.

Section 223(f) is eligible for Multifamily Accelerated Processing (MAP). The sponsor works with the MAP-approved lender who submits required exhibits for Firm Commitment application, including a full underwriting package to the local Multifamily Region for review. The Multifamily Region reviews the application to determine whether the proposed loan is an acceptable risk.

Considerations include market need and the capabilities of the borrower. FHA underwriting analysis must determine that there is enough project income to repay the loan, taking into account all necessary project expenses. If the proposed project meets program requirements, the local Multifamily Region issues a commitment to the lender for mortgage insurance.

Applications submitted by non-MAP lenders must be processed by HUD field office staff under Traditional Application Processing (TAP). Under TAP, there are only two processing stages: the conditional commitment stage and the firm commitment stage. The sponsor is required to have a pre-application conference during the conditional commitment stage to determine the appraised value and maximum mortgage amount.

At the firm commitment stage the local HUD Multifamily Regio determines the amount of the mortgage available to the purchaser or refinancing borrower in the proposed transaction. If the proposal meets FHA program requirements, the local Multifamily Region issues a commitment to the lender for mortgage insurance. Section 223(f) of the National Housing Act was added by Section 311(a) of the Housing and Community Development Act of 1974.

Regulations are found at 24 CFR, Part 200. For processing and underwriting instructions refer to HUD Handbook 4565. 1- Mortgage Insurance for the Purchase of Existing Multifamily Housing Projects available on HUDclips .

Refer to the MAP web site for guidelines and instructions, lender approval requirements, and MAP coordinators. The program is administered by the Office of Multifamily Housing Programs, Office of Production, Program Administration Division. Program Accomplishments: In FY2024, the Department insured mortgages for 161 projects with 21343 units, totaling $2.

8 billion. If you have questions, please contact MF Production HQ Refinancing of Existing Multifamily Rental Housing: S223a7 Section 223(a)(7) insures mortgage loans to facilitate the refinancing of certain mortgages currently insured by FHA and to HUD-held loans on projects subject to the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA).

A mortgage refinanced pursuant to Section 223(a)(7) is insured under the same section of the National Housing Act (NHA) as was the mortgage originally insured under that section of the act, for example, Section 221(d)(4) or Section 223(f). Section 223(a)(7) insures lenders against loss on mortgage defaults.

The term of a new mortgage insured pursuant to Section 223(a)(7) may be extended up to 12 years beyond the maturity date of the existing, originally insured mortgage. The term cannot be extended beyond 75% of the remaining useful life of the project or the maximum term permitted in the section of the act under which the existing mortgage is insured.

If the existing mortgage is the result of a previous refinancing through Section 223(a)(7), the longest allowable maturity date of the new mortgage is 12 years beyond the maturity date of the mortgage originally insured under the FHA insurance program but not to exceed 75% of remaining useful life.

Section 223(a)(7) refinances typically reduce project debt service and increase cash flow by lowering the interest rate of the mortgage and/or by extending the amortization period. The increased project cash flow benefits properties and owners and reduces risk to the FHA Insurance Fund. FHA mortgage insurance for HUD-approved lenders.

The refinancing is limited to existing properties in residential use, and cannot include new construction or expansion of the height or footprint of an existing building, or any repairs, which involve ground disturbance.

Proceeds may be used to fund (a) the payoff of existing FHA-recognized indebtedness (b) the cost of refinancing, (c) the cost of critical and non-critical repairs (as described in the required Capital Needs Assessment, subject to the cost limits as described in the 2016 Map Guide), and (d) deposits to reserve for replacement accounts. By statute, equity take-outs are not permitted under Section 223(a)(7).

Mortgages excluded from the Eligible Activities: Section 202 loans and other HUD-held mortgages (other than those subject to a debt restructuring under the Multifamily Assisted Housing Reform and Affordability Act (MAHRA) For Maximum mortgage calculations refer to Chapter 18. 3. B of the 2016 Map Guide and HUD Form- 92264-A Criteria 1,2,5 &10.

The mortgage amount may not exceed the lowest applied criteria. Both for profit and non-profit borrowers are eligible to apply. All persons are eligible to occupy such projects subject to normal occupancy restrictions.

Section 223(a)(7) is eligible for Multifamily Accelerated Processing (MAP). The sponsor works with the MAP-approved lender who submits required exhibits for a Firm Commitment application, including an underwriting package to the local Multifamily Region for review. The Multifamily Regional or Office reviews the application to determine whether the proposed loan is an acceptable risk.

Considerations include the capabilities of the borrower and the benefits to the project. FHA underwriting analysis must determine that there is enough project income to repay the loan, taking into account all necessary project expenses. If the proposed refinance meets program requirements, the Regional Center issues a commitment to the lender for mortgage insurance.

Applications submitted by non-MAP lenders must be processed by HUD Multifamily field staff under Traditional Application Processing (TAP). Under TAP, there is only one processing stage for Section 223(a)(7) applications: the firm commitment stage. At firm commitment stage the local Regional Office determines the amount of the mortgage available to the refinancing borrower in the proposed transaction.

If the proposal meets FHA program requirements, the local Multifamily Regional Office issues a commitment to the lender for mortgage insurance. For processing and underwriting instructions refer to the 2016 MAP Guide , Chapter 18. Refer to the MAP website for guidelines and instructions, lender approval requirements, and MAP coordinators.

The Office of Multifamily Production, Program Administration Division, administers the program. Program Accomplishments: In FY2024, the Department did not insure any mortgages.

If you have questions, please contact MF Production HQ Rental Housing for the Elderly: S231 The Section 231 insures mortgage loans to facilitate the construction and substantial rehabilitation of multifamily rental housing for elderly persons (62 or older) and/or persons with disabilities. Section 231 insures lenders against loss on mortgages.

Section 231 was designed to increase the supply of rental housing specifically for the use and occupancy of elderly persons, and/or persons with disabilities. However, few projects have been insured under Section 231 in recent years; developers have opted to use Section 221(d)(4). FHA mortgage insurance for HUD-approved lenders.

Insured mortgages may be used to finance the construction and substantial rehabilitation of detached, semidetached, walk-up, or elevator type rental housing designed specifically for elderly or handicapped individuals consisting of eight or more dwelling units. For nonprofit sponsors, the maximum loan amount is 100 percent of the estimated replacement cost of the building (or 100 percent of project value for rehabilitation projects).

For all other sponsors, the maximum loan is 90 percent of the replacement cost (or 90 percent of project value for rehabilitation projects). Contractors for new construction or substantial rehabilitation projects are required to comply with prevailing wage standards under the Davis-Bacon Act. Mortgagors include private profit-motivated developers, and non-profit sponsors.

All elderly or persons with disabilities are eligible to occupy apartments in a project whose mortgage is insured under the program. The sponsor has a preapplication conference with the local HUD Multifamily Region to determine the feasibility of the project.

The sponsor must then submit a site appraisal and market analysis (SAMA) application (new construction projects), or a feasibility application (substantial rehabilitation projects). Following HUD's issuance of a SAMA or feasibility letter, the sponsor submits a firm commitment application through a HUD-approved lender for processing.

Considerations include market need, zoning, architectural merits, capabilities of the borrower, and availability of community resources. If the project meets program requirements, the local Multifamily Region issues a commitment to the lender for mortgage insurance. This program is authorized by Section 231 of the National Housing Act, as amended, Public Law 86-372 (73 U.S.C.

654 and 12 U.S.C. 1715 (V))). Program regulations are found in 24 CFR 231.

The basic program instructions are in HUD Handbook 4570. 1 - Housing for the Elderly for Project Mortgage on available on HUDclips . The program is administered by the Office of Multifamily Housing Programs, Office of Production, Program Administration Division.

Program Accomplishments: In FY2024, the Department insured mortgages for 1 projects with 200 units, totaling $48. 3 million.

If you have questions, please contact MF Production HQ Mortgage Insurance for Construction or Substantial Rehabilitation of Condominium Projects: S234d Section 234(d) insures blanket mortgages for the construction or substantial rehabilitation of multifamily projects to be sold upon completion as individual condominium units. Section 234(d) insures lenders against the loss on mortgage defaults.

The program enables sponsors to develop condominium projects in which individual units will be sold to home buyers. FHA mortgage insurance for HUD-approved lenders. Private profit-motivated developers and other sponsors who meet FHA requirements for mortgagors.

Families or individuals who are eligible to purchase condominium units. Mortgages for individual units may be insured under Section 234(c). Insured mortgages may be used to finance construction and substantial rehabilitation of multifamily housing structures where the individual units will be sold as condominiums under Section 234(c).

The program has statutory per unit mortgage limits which vary according to the size of the unit, the type of structure, and the location of the project. There are also loan-to-replacement cost and pre-sale limitations. Contractors for new construction or substantial rehabilitation projects must comply with prevailing wage requirements under the Davis-Bacon Act.

The sponsor has a preapplication conference with the local HUD Multifamily Hub or Program Center to provide general application guidance and to determine the feasibility of the project before submitting a site appraisal and market analysis (SAMA) application (for new construction projects) or feasibility application (for substantial rehabilitation projects).

Following HUD's issuance of a SAMA or feasibility letter, the sponsor submits a firm commitment application through a HUD-approved lender for processing. Considerations include, market need, zoning, architectural merits, capabilities of the borrower, and availability of community resources. If the project meet program requirements, the local HUD Multifamily Region issues a commitment to the lender for mortgage insurance.

The 234(d) program is authorized by the National Housing Act (12 U.S.C. 1715y), as amended; Housing Act of 1964, as amended, Section 234(d). Regulations are found in 24 CFR 234.

The basic program instructions are in HUD Handbook 4580. 1- Mortgage Insurance for Condominium Housing Insured under Section 234(d) available on HUDclips . The program is administered by the Office of Multifamily Housing Development.

No loans have been insured under this program for several years. Condominium developers typically obtain their own construction financing and use FHA insurance under Section 234(c) to finance the sales of the individual units.

If you have any questions, please contact MF Production HQ Supplemental Loan Insurance for Multifamily Rental Housing: S241a Section 241(a) insures mortgage loans to finance repairs, additions, and improvements to multifamily rental housing and health care facilities with FHA insured first mortgages or HUD-held mortgages. Section 241(a) insures lenders against loss on mortgage defaults.

The program is intended to keep the project competitive, extend its economic life, and to finance the replacement of obsolete equipment. Insured mortgages finance repairs, additions, and improvements to multifamily projects, group practice facilities, hospitals, or nursing homes already insured by HUD or held by HUD.

Major movable equipment for insured nursing homes, group practice facilities, or hospitals may be covered by a mortgage under this program. FHA mortgage insurance for HUD-approved lenders.

Insured mortgages may finance either: (1) additions and improvements of multifamily housing projects, nursing homes, hospitals, and assisted living facilities already subject to HUD/FHA insured mortgages or mortgages held by HUD; (2) finance energy conservation improvements.

The maximum insurable loan is 90 percent of the value of the addition or improvement, or an amount which, when added to the outstanding balance of the existing insured mortgage, does not exceed the amount insurable under the program pursuant to the mortgage covering such project of facility that is insured.

Where the project is covered by a mortgage held by HUD the principal amount of the loan shall be in an amount acceptable to the Secretary. Contractors must comply with prevailing wage requirements under the Davis-Bacon Act. 241(a) for apartments requires appropriated credit subsidy, which is limited.

Owners of a multifamily project or facility already subject to a mortgage insured Individuals, families, and owners of multifamily projects. The sponsor will have a pre-application conference with the local HUD Multifamily Region to determine the feasibility of the proposed improvements before submitting a firm commitment application.

The sponsor must then submit a firm commitment application to the local Multifamily Region through a HUD-approved lender for processing. If the project meets program requirements, the local Multifamily Region issues a commitment to the lender for mortgage insurance. This program is authorized under the National Housing Act, as amended, Section 241, Public Law 90-448 (12 U.S.C.

1715) and Public Law 94-375 (12 U.S.C. 1715Z-6). The program regulations are found in 24 CFR 241.

The basic program instructions are in HUD Handbook 4585. 1-Supplemental