Supplemental Loan Insurance Multifamily Rental Housing

 

Section 241(a) insures lenders against loss on mortgage defaults on projects already insured by HUD or held by HUD. 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.

Active 14.151 Office of Housing-Federal Housing Commissioner, Department of Housing and Urban Development F - Guaranteed/Insured Loans Not applicable. National Housing Act, as amended, Section 241, Public Law 90-448, 12 U.S.C. 1715, Public Law 94-375, 12 U.S.C. 1715z-6. Owners of a multifamily project or facility already subject to a mortgage insured by HUD or held by HUD. Individuals, families, and owners of multifamily projects. Documentation regarding the characteristics of the property and the qualifications of the mortgagor are assembled by the mortgagee and submitted with the application. Preapplication coordination is required. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. The borrower's or sponsor's lender will have a pre-application conference with the local HUD Multifamily Hub or Satellite Office 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 Hub or Satellite Office through a HUD-approved lender for processing. If the project meets program requirements, the local Multifamily Hub or Satellite Office issues a commitment to the lender for mortgage insurance. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. The sponsor submits a formal application for review and approval or disapproval through a HUD-approved mortgagee to the local HUD Multifamily Hub or Satellite Office. If the proposed improvements meet program requirements, the local HUD Multifamily Hub and Satellite Office issues a commitment to the lender to insure the mortgage. Not applicable. Not applicable. Not applicable. Not applicable. Not applicable. Section 241(a) insures lenders against loss on loans made either (1) to finance additions and improvements of multifamily housing projects, nursing homes, hospitals and group practice facilities already subject to HUD/FHA insured mortgages or mortgages held by HUD, or (2) to finance energy conservation improvements. The proceeds of a loan involving an insured nursing home, hospital or a group practice facility may also be used to purchase equipment to be used in the operation of such nursing home or facility. The maximum insurable loan for an insured project is 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 which the mortgage covering such project or facility is insured. Where the project is covered by a mortgage held by the Secretary the principal amount of the loan shall be in an amount acceptable to the Secretary. Contractors of substantial rehabilitation projects must comply with prevailing wage requirements under the Davis-Bacon Act. Section 241(a) for apartments requires appropriated credit subsidy, which is limited. Not applicable. The Department of Housing and Urban Development reserves the right to audit the accounts of either the lender or borrower in order to determine their compliance and conformance with HUD regulations and standards. Lenders are required to service and maintain records in accordance with acceptable lending practices of prudent lending institutions and the HUD regulations. Statutory Formula: Title 24 cfr Part 241 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 program is administered by the Office of Multifamily Housing Programs, Office of Production, Program Administration Division.

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing. A loan for a project with a HUD-insured or HUD-held mortgage must have a maturity acceptable to HUD. The benefits of assistance accrue over the life of the insured loan in the form of attractive loan terms made possible through the FHA insurance which results in below-market interest and funds availability. All projects are processed in Regional and Local Multifamily Hub or Satellite Office. Persons are encouraged to communicate with the nearest local HUD Multifamily Hub and Satellite Office listed at http://www.hud.gov/offices/hsg/mfh/mfbroch/hubs_pcs.cfm. Thomas Bernaciak
451 Seventh Street SW
Washington, DC 20410 US
thomas.a.bernaciak@hud.gov
Phone: (202) 402-3242 https://www.hud.gov/program_offices/housing/mfh 86-4077-0-3-371 (Guaranteed/Insured Loans) FY 22 FY 23 FY 24 FY 21 FY 20$4,216,973,933.00; FY 19$7,640,000,000.00; FY 16 FY 14 est $15,000,000.00; FY 13$16,900,000.00; FY 15 est $15,000,000.00; FY 17 - Reported under 14.134. Not applicable/available. 24 CFR, 241 et seq.; the MAP Guide. Not applicable.