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 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.
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. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.
Aplication and Award Process
Preapplication coordination is required.
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 a formal application for review and approval or disapproval through a HUD-approved mortgagee to the local HUD Multifamily Hub or Program Center.
If the proposed improvements meet program requirements, the local HUD Multifamily Hub and Program Center issues a commitment to the lender to insure the mortgage.
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.
Range of Approval/Disapproval Time
Processing time depends upon the degree of preparation by the sponsor and workload in the HUD Multifamily Hub and Program Center.
If an application for mortgage insurance is refused, HUD will state the reasons for the refusal. 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 241. This program has no matching requirements. This program does not have MOE requirements.
Length and Time Phasing of Assistance
A loan for a project with a HUD-insured or HUD-held mortgage must have a maturity acceptable to HUD. See the following for information on how assistance is awarded/released: 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 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.
(Guaranteed/Insured Loans) FY 15 Not Separately Identifiable(Exp: Reported under 14.134); FY 16 Not Separately Identifiable(Exp: Reported under 14.134); and FY 17 Not Separately Identifiable(Exp: Reported under 14.134)
Range and Average of Financial Assistance
No Data Available.
Regulations, Guidelines, and Literature
24 CFR, 241 et seq.; HUD Handbook 4585.1 'Supplemental Loans for Project Mortgage Insurance,' Section 241, no charge, available on HUDCLIPS at http://www.hudclips.org.
Regional or Local Office
See Regional Agency Offices. All projects are processed in Regional and Local Multifamily Hub or Program Center. Persons are encouraged to communicate with the nearest local HUD Multifamily Hub and Program Center listed at http://www.hud.gov/offices/hsg/mfh/mfbroch/hubs_pcs.cfm or contact the nearest HUD Field Office in the Catalog Address Appendix IV.
Carmelita James 451 Seventh Street SW, Washington, District of Columbia 20410 Email: email@example.com Phone: (202) 402-2579
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