Mortgage Insurance Rental Housing for the Elderly
Program Funding
Annual program obligations reported to SAM.gov.
Program Objective
To provide quality rental housing for the elderly.
Eligibility
Eligible Applicants
- Nonprofit Organization
- For-Profit Organization
Eligible mortgagors include private profit-motivated developers, and nonprofit sponsors.
Beneficiaries
- Senior Citizen (65+)
- Adult (20–64)
All elderly or handicapped persons are eligible to occupy apartments in a project whose mortgage is insured under the program.
How to Apply
Award Procedure
If the project meets program requirements, the local HUD Multifamily Hub or Satellite Office issues a commitment to the lender for mortgage insurance.
The processing time goal is 90 days, minus any time that the lender spends answering follow up questions or documentation requests from HUD.
Program details & compliance
Description
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).
Mission Categories
Primary: Property and Mortgage Insurance
Use of Funds
Allowed Uses
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. Insured mortgages may be used to finance construction or rehabilitation of detached, semidetached, walk-up, or elevator type rental housing designed for occupancy by elderly or handicapped individuals and consisting of 8 or more rental units. 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 debt service limitations.
Restrictions
Insured mortgages may be used to finance construction or rehabilitation of detached, semidetached, walk-up, or elevator type rental housing designed for occupancy by elderly or handicapped individuals and consisting of 8 or more rental units.
Required Documentation
Documentation regarding the characteristics of the property and the qualifications of the mortgagor must be submitted with the application.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart F — Audit Requirements
Formula
HUD Multifamily Hubs, Regional Centers, Satellite Offices, and Program Centers.