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
QPEs and/or its approved lenders may originate and underwrite affordable housing loans.
HUD's mortgage credit enhancements are used to support the underwriting and production strengths of Fannie Mae, Freddie Mac, and other qualified Federal, State, and local public financial and housing institutions.
In the event of a default, the QPE will pay all costs associated with loan disposition and will seek reimbursement from HUD.
In most cases, the HUD risk share will be 50 percent.
The program provides a new insurance authority independent of the National Housing Act.
Eligible mortgagors include investors, builders, developers, public entities, and private nonprofit corporations or associations may apply to a qualified QPE and/or its lender.
Individuals, families, and property owners may be eligible for affordable housing.
Documentation regarding the characteristics of the property and the qualifications of the mortgagor are submitted to the QPE and/or its lender. 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 excluded from coverage under E.O.
This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. An applicant submits a formal application directly to the QPE.
QPEs are vested with the maximum amount of processing responsibilities and decision-making to approve or reject individual projects.
Housing and Community Development Act of 1992, Section 542(b), Public Law 102-550, 12 U.S.C. 1701; Public Law 106-377. HUD's fiscal year 2001 Appropriations Bill amended Section 235 of the Housing and Community Development Act of 1992 to extend the 542 Risk Sharing Program to a permanent multifamily insurance program.
Range of Approval/Disapproval Time
Within 15 days of HUD's receipt of a complete and acceptable Risk Sharing Request, HUD will execute the Addendum to Risk Sharing Agreement which signifies that HUD has undertaken a Risk Sharing Obligation for a specific mortgage loan.
If a Risk Sharing Request is refused, the QPE will state the reasons for the refusal.
HUD will provide reinsurance on multifamily housing projects whose loans are originated, underwritten, serviced, and disposed of by QPEs.
Formula and Matching Requirements
This program has no statutory formula. This program has no matching requirements. This program does not have MOE requirements.
Length and Time Phasing of Assistance
No. See the following for information on how assistance is awarded/released: Monthly.
Post Assistance Requirements
No reports are required.
No audits are required for this program.
QPEs are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions.
(Guaranteed/Insured Loans) FY 15 $14,352,529; FY 16 est $40,873,150; and FY 17 est $66,633,349
Range and Average of Financial Assistance
No Data Available.
Regulations, Guidelines, and Literature
Regional or Local Office
See Regional Agency Offices. Persons are encouraged to communicate with the nearest local HUD Multifamily Hub or Program Center listed at http://www.hud.gov/offices/hsg/mfh/mfbroch/hubs_pcs.cfm or the nearest HUD Field Office listed 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
Criteria for Selecting Proposals
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