The Department of Housing and Urban Development's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination. HUD fulfills this mission through high ethical standards, management and accountability, and by forming partnerships with community organizations.
Uses and Use Restrictions
Section 207 insures lenders against the loss on mortgage defaults.
Section 207 mortgage insurance, although still authorized, is no longer used for new construction and substantial rehabilitation.
It is however, the primary vehicle for the Section 223(f) refinancing program.
Multifamily new construction and substantial rehabilitation projects are currently insured under Section 221(d)(3) and Section 221(d)(4) programs.
Insured mortgages may be used to finance the construction or rehabilitation of rental detached, semidetached, row, walk-up, or elevator type structures with 5 or more 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-value and debt service limitations.
Eligible mortgagors include investors, builders, developers, and others who meet HUD requirements for mortgagors.
All families eligible to occupy dwellings in a structure whose mortgage is insured under the program, subject to normal tenant selection.
Documentation regarding the characteristics of the property and qualifications of the mortgagor are submitted with the application. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.
Aplication and Award Process
Preapplication coordination is not applicable.
Environmental impact information is not required for this program.
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.
This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The sponsor submits an application for a SAMA or feasibility letter. Following HUD's approval and issuance of a SAMA or feasibility letter, the Firm Commitment application is submitted to the local HUD Multifamily Hub or Program Center for processing.
If the project meets program requirements, the local HUD Multifamily Hub or Program Center issues a commitment to the lender to insure the mortgage.
National Housing Act, as amended, Section 207, Public Law 75-424, 12 U.S.C. 1713.
Range of Approval/Disapproval Time
Processing time will depend upon the degree of preparation by the sponsor and HUD Multifamily Hub or Program Center workload.
If an application for mortgage insurance is denied, HUD will state the reasons for the denial. If reapplication is desired, the applicant may modify the application and reapply.
The term of a commitment to insure may be extended when more time is required to close the loan.
Formula and Matching Requirements
Statutory Formula: Title 24 cfr, Part 207. This program has no matching requirements. This program does not have MOE requirements.
Length and Time Phasing of Assistance
The mortgage term is 40 years, or not in excess of three-fourths of the remaining economic life, whichever is less. See the following for information on how assistance is awarded/released: Provided over life of mortgage.
Post Assistance Requirements
No reports are required.
In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. The Department of Housing and Urban Development reserves the right to audit the accounts of either the mortgagee or mortgagor in order 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 the HUD regulations.
(Guaranteed/Insured Loans) FY 15 $6,422,666,988; FY 16 est $5,916,508,274; and FY 17 est $5,831,984,488
Range and Average of Financial Assistance
No Data Available.
Regulations, Guidelines, and Literature
24 CFR 207 et seq. HUD Handbook 4400.1, Project Mortgage Insurance Basic Section 207 Instructions, available on www.hudclips.org.
Regional or Local Office
See Regional Agency Offices. Persons are encouraged to communicate with Multifamily Hub or Program Center with jurisdiction for the proposed property. HUD Multifamily Hubs and Programs Centers are listed at http://www.hud.gov/offices/hsg/mfh/mfbroch/hubs_pcs.cfm or at the Catalog Address Appendix IV.
Carmelita James 451 Seventh Street SW, washington, District of Columbia 20410 Email: email@example.com Phone: (202) 402-2579
Criteria for Selecting Proposals
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