Mortgage Insurance Rental Housing in Urban Renewal Areas
Program Funding
Annual program obligations reported to SAM.gov.
Program Objective
To provide quality rental housing in urban renewal areas, code enforcement areas, and other areas designated for overall revitalization.
Eligibility
Eligible Applicants
- For-Profit Organization
Eligible mortgagors include private profit motivated entities, public bodies, and others who meet HUD requirements for mortgagors.
Beneficiaries
- For-Profit Organization
All families eligible to occupy a dwelling in a structure whose mortgage is insured under the program, subject to normal tenant selection.
How to Apply
Award Procedure
The local Multifamily Hub or Satellite Office reviews the application to determine whether the proposal is feasible. Considerations include market need, zoning, architectural merits, capabilities of sponsors, availability of community resources, etc. If the project meets program requirements, the Multifamily Hub or Satellite Office issues the lender a commitment to insure the project mortgage.
Processing time goals are set for the type of project financed. See the MAP Guide for processing time goals, which exclude time the lender spends responding to HUD document requests and clarifications.
Program details & compliance
Description
FHA insures mortgages on new or rehabilitated housing structures located in designated urban renewal areas and areas with concentrated programs of code enforcement and neighborhood development. Insured mortgages may be used to finance construction or rehabilitation of rental housing. Properties must consist of two or more units and be in one of the following: an urban renewal area, urban development project, code enforcement program area, urban area receiving rehabilitation assistance because of natural disaster, or an area where concentrated housing, physical development, or public service activities are being carried out in a coordinated manner.
Mission Categories
Primary: Property and Mortgage Insurance
Use of Funds
Allowed Uses
Section 220 insures lenders against loss on mortgage defaults. Insured mortgages may be used to finance proposed 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. Property must consist of two or more units and must be located in an urban renewal area, urban redevelopment project, or code enforcement program area, urban area receiving rehabilitation assistance as a result of natural disaster, or area where concentrated housing, physical development and public service activities are being carried out in a coordinated manner. 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. There are also loan-to-replacement cost and debt service limitations. Contractors for new construction and substantial rehabilitation projects must comply with prevailing wage standards under the Davis-Bacon Act.
Restrictions
FHA insures mortgages on new or rehabilitated housing structures located in designated urban renewal areas and areas with concentrated programs of code enforcement and neighborhood development. Insured mortgages may be used to finance construction or rehabilitation of rental housing. Properties must consist of two or more units and be in one of the following: an urban renewal area, urban development project, code enforcement program area, urban area receiving rehabilitation assistance because of natural disaster, or an area where concentrated housing, physical development, or public service activities are being carried out in a coordinated manner.
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