Mortgage Insurance Rental Housing for the Elderly

To provide quality rental housing for the elderly.

Agency - Department of Housing and Urban Development

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.

Office - See Regional Agency Offices.

Persons are encouraged to communicate with the Multifamily Hub or Program Center with jurisdiction for the proposed property.

HUD Multifamily Hubs or Program Centers are listed at and in the Catalog Address Appendix IV.

Program Accomplishments

Not Applicable.

Uses and Use Restrictions

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.

Eligibility Requirements

Applicant Eligibility

Eligible mortgagors include private profit-motivated developers, and nonprofit sponsors.

Beneficiary Eligibility

All elderly or handicapped persons are eligible to occupy apartments in a project whose mortgage is insured under the program.


Documentation regarding the characteristics of the property and the qualifications of the mortgagor must be submitted with the application. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.

Aplication and Award Process

Preapplication Coordination

Preapplication coordination is required.

An environmental impact assessment is 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.

Application Procedures

This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The sponsor submits a formal application through a HUD-approved mortgagee to the local HUD Multifamily Hub or Program Center.

Award Procedures

If the project meets program requirements, the local HUD Multifamily Hub or Program Center issues a commitment to the lender for mortgage insurance.


Not Applicable.


National Housing Act, as amended, Section 231, Public Law 86-372, 73 U.S.C. 654, 12 U.S.C. 1715(V)., Title 24, Part 231.

Range of Approval/Disapproval Time

Processing time varies depending upon the degree of preparation by the sponsor and HUD Multifamily Hub and 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.

Assistance Considerations

Formula and Matching Requirements

Statutory Formula: Title 24 CFR, Part 231. This program has no matching requirements. This program does not have MOE requirements.

Length and Time Phasing of Assistance

The maximum 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: Over term 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 practice of prudent lending institutions and the HUD regulations.

Financial Information

Account Identification



(Guaranteed/Insured Loans) FY 15 $53,212,283; FY 16 est $55,170,497; and FY 17 est $59,494,779

Range and Average of Financial Assistance

No Data Available.

Regulations, Guidelines, and Literature

24 CFR 231.1 et seq. Section 231, Housing for the Elderly for Project Mortgage Insurance, HUD Handbook 4570.1, no charge, available on HUDCLIPS at

Information Contacts

Regional or Local Office

See Regional Agency Offices. Persons are encouraged to communicate with the Multifamily Hub or Program Center with jurisdiction for the proposed property. HUD Multifamily Hubs or Program Centers are listed at and in the Catalog Address Appendix IV.

Headquarters Office

Carmelita James 451 Seventh Street SW, Washington, District of Columbia 20410 Email: Phone: (202) 402-2579

Criteria for Selecting Proposals

Not Applicable.

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