Mortgages Insurance for Single Room Occupancy (SRO) Projects

 

The Single Room Occupancy (SRO) Program provides mortgage insurance for multifamily properties consisting of single-room units. There are no Federal rent subsidies involved with this SRO Program. It is aimed at those tenants who have a source of income but are priced out of the rental apartment market. SRO projects will generally require assistance from local governing bodies or charitable organizations in order to reduce the rents to affordable levels.

Deleted 03/27/2024 (Archived.) 14.184 Office of Housing-Federal Housing Commissioner, Department of Housing and Urban Development F - Guaranteed/Insured Loans Not applicable. National Housing Act, Section 221(d), 12 U.S.C. 1751(d); Section 223(g), 12 U.S.C. 1715 (g). Eligible applicants may be nonprofit entities; builder/sellers teamed with a nonprofit purchaser, a limited distribution entity, profit-motivated entities or public entities. Cooperative lenders or investors are not eligible. Residents are subject to normal tenant selection procedures. There are no income limits for admission. 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 is required. Environmental impact information is not required for this program. An environmental impact assessment is required for this listing. This program is excluded from coverage under E.O. 12372. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. The sponsor submits an application for a SAMA or feasibility application to the local HUD office for review. Following HUD's issuance of a SAMA or feasibility letter, the sponsor submits a firm commitment application through a HUD-approved mortgagee to the local HUD Multifamily Hub and Program Center for processing. The project is reviewed to determine its feasibility. If the project meets program requirements, the HUD Multifamily Hub or Program Center issues a commitment to insure the mortgage. Not applicable. Not applicable. Not applicable. Not applicable. Not applicable. The SRO Program insures lenders against loss on mortgages used to finance construction or substantial rehabilitation of projects consisting of five or more units comprised primarily of one room residential units. Projects must be designed primarily for residential use. Any commercial activity must be compatible with the use of the project and primarily for the benefit of the residents. Commercial space is limited to 10 percent of the total gross floor area (20 percent in substantial rehabilitation projects), and 15 percent of gross rental income in a project. Contractors for new construction and substantial rehabilitation projects must comply with prevailing wage requirements under the Davis-Bacon Act. Not applicable. 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. Mortgagees are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions and HUD regulations. Statutory Formula: Title 24 CFR Part 221

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing. The maximum mortgage term is 40 years, or not in excess of three-fourths of the remaining economic life, whichever is less. Over the life of the mortgage Persons are encouraged to communicate with the nearest local HUD Multifamily Hub and Program Center listed in http://www.hud.gov/offices/hsg/mfh/mfbroch/hubs_pcs.cfm or the nearestHUD Office listed in the Catalog Address Appendix IV. Carmelita James
451 Seventh Street SW
Washington, DC 20410 US
carmelita_a._james@hud.gov
Phone: (202) 402-2579 http://www.hud.gov/offices/hsg/hsgmulti.cfm. 86-4077-0-3-371 (Guaranteed/Insured Loans) FY 14 est $5,000,000.00; FY 16 FY 15 est $5,000,000.00; FY 17 FY 13$5,400,000.00; - Reported under 14.135 Not applicable/available. 24 CFR 221.565; HUD Handbook 4560.3, Mortgage Insurance for Single Room Occupancy (SRO) Projects available on www.hudclips.org. Not applicable.