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| 14.142 PROPERTY IMPROVEMENT LOAN INSURANCE FOR IMPROVING ALL EXISTING STRUCTURES AND BUILDING OF NEW NONRESIDENTIAL STRUCTURES |
| (Title I) |
| FEDERAL AGENCY |
| HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT |
| AUTHORIZATION |
| National Housing Act, Title I, Section 2, as amended, 12 U.S.C. 1703. |
| OBJECTIVES |
| To facilitate the financing of improvements to homes and other existing structures and the building of new nonresidential structures. |
| TYPES OF ASSISTANCE |
| Guaranteed/Insured Loans. |
| USES AND USE RESTRICTIONS |
| HUD insures lenders against loss on loans. Insured loans may be used to finance alterations, repairs, and improvements for existing structures and the building of new nonresidential structures which substantially protect or improve the basic livability or utility of the properties. The maximum loan amount is $25,000 for improving a single family home or for improving or building a nonresidential structure. For improving a multifamily structure, the maximum loan amount is $12,000 per family unit, not to exceed a total of $60,000 for the structure. |
| Applicant Eligibility |
| Eligible borrowers include the owner of the property to be improved, a lessee having a lease extending at least 6 months beyond maturity of the loan, or a purchaser of the property under a land installment contract. |
| Beneficiary Eligibility |
| Individuals/families. |
| Credentials/Documentation |
| The responsibility for credit approval of borrowers is exercised by HUD-insured lenders. This program is excluded from coverage under OMB Circular No. A-87. |
| Preapplication Coordination |
| None. This program is excluded from coverage under E.O. 12372. |
| Application Procedure |
| The borrower applies directly to an insured lender, or through a lender's approved dealer. This program is excluded from coverage under OMB Circular Nos. A-102 and A-110. |
| Award Procedure |
| None. |
| Deadlines |
| None. |
| Range of Approval/Disapproval Time |
| HUD does not participate in the approval or disapproval of individual loans. |
| Appeals |
| Reapplication in case of refusal should be submitted to an approved lender. |
| Renewals |
| Not applicable. |
| Formula and Matching Requirements |
| HUD insures private lenders against losses of up to 90 percent of any single loan with maximum insurance coverage limited to a total of 10 percent of the total amount insured. The interest rate is a negotiable interest rate agreed upon between the borrower and lender. The annual insurance charge is $1 per $100 of the amount advanced. |
| Length and Time Phasing of Assistance |
| Loans mature in 20 years and 32 days or earlier. Loans may be refinanced, but may not extend beyond 30 years from the date of the original note. |
| Reports |
| None. |
| Audits |
| The Department of Housing and Urban Development reserves the right to audit the accounts of lenders in order to determine their compliance and conformance with HUD regulations and standards. |
| Records |
| Lenders are required to service and maintain records in accordance with acceptable lending practices of prudent lending institutions and the HUD regulations. |
| Account Identification |
| 86-4077-0-3-371. |
| Obligations |
| (Loans insured) FY 07 $42,413,306; FY 08 est $54,367,000; and FY 09 est $54,367,000. |
| Range and Average of Financial Assistance |
| The maximum loan amount is $25,000 for improving a single family home or for improving or building a nonresidential structure. For improving a multifamily structure, the maximum loan amount is $12,000 per family unit, not to exceed a total of $60,000 for the structure. |
| PROGRAM ACCOMPLISHMENTS |
| In Fiscal Year 2007, HUD insured 2,970 loans. |
| REGULATIONS, GUIDELINES, AND LITERATURE |
| "Fixing Up Your Home," HUD-52-H(7), no charge. |
| Regional or Local Office |
| Contact HUD at 800-767-7468 for a program brochure #2651 and list of lenders. |
| Headquarters Office |
| None. |
| Web Site Address |
| http://www.hud.gov/offices/hsg/sfh/ins/singlefamily.cfm |
| RELATED PROGRAMS |
| 10.417, Very Low-Income Housing Repair Loans and Grants; 14.108, Rehabilitation Mortgage Insurance; 14.110, Manufactured Home Loan Insurance_Financing Purchase of Manufactured Homes as Principal Residences of Borrowers. |
| EXAMPLES OF FUNDED PROJECTS |
| Not applicable. |
| CRITERIA FOR SELECTING PROPOSALS |
| Not applicable. |
|
General Services Administration Office of Chief Acquisition Officer Regulatory and Federal Assistance Division (VIR) |
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