Sec. 213-Mortgage and loan insurance, HUD, for cooperative housing (National Housing Act).

Sec. 221(d) (3)-HUD-insured mortgages bearing below market interest rates and financing new or rehabilitated rental housing for displaced families or low or moderate income families (National Housing Act).

Sec. 223 (e)-The 1968 liberalization of traditional underwriting standards in HUD mortgage insurance for properties in older and declining neighborhoods deemed "reasonably viable.”

Sec. 231-Mortgage insurance, HUD, for new or rehabilitated rental housing for the elderly or handicapped (National Housing Act).

Sec. 232-Mortgage insurance, HUD, for new or rehabilitated nursing homes (National Housing Act).

Sec. 235-Interest reduction payments by HUD and FmHA on home mortgages of lower income families (National Housing Act). Sec. 236-Interest reduction payments by HUD and FmйA for rental and cooperative housing for lower income families (National Housing Act).

Sec. 312-Rehabilitation loans by HUD for owners or tenants of homes or business properties in deteriorating areas where applicants are unable to secure funds from other sources upon comparable terms and conditions (Housing Act of 1964).

Sec. 701-Grants to public agencies to assist comprehensive planning (Housing Act of 1954).

A-95-Circular issued by Office of Management and Budget to coordinate Federal assistance programs to States and local governments which have "significant impact on area and community development." ASSISTANCE PAYMENTS-Federal payments (directly or through local public housing agency) to owners or prospective owners of rental housing to pay part of rent of lower income tenants (Sec. 8, Housing and Community Development Act of 1974). See "InterestReduction Payments"

BELOW MARKET INTEREST RATE-HUD-insured mortgages financing homes for lower income families and displaced families bearing interest rates lower than the market rate, with Federal Government bearing cost of difference in rates by purchase of mortgages. (Sec. 221 (d) (3), National Housing Act).

Block Grants-grants by HUD on a noncategorical formula basis to assist community development and rehabilitation, including slum and blight elimination, conservation of housing, increased public services, improved use of land, and preservation of property (Title I, Housing and Community Development Act of 1974).

Coinsurance-HUD insurance of a mortgage, advance, or loan with the lender assuming a percentage of the loss on the insured obligationexperimental program (Sec. 244. National Housing Act).

Commitment—an agreement to make or purchase a mortgage loan at a future date-or-an agreement to insure a mortgage at a future date if prescribed conditions are met by the mortgagee. Under HUD mortgage insurance, a traditional administration distinction exists between a special type of commitment known as a "conditional commitment" and other commitments known as "firm commitments." Under the for

mer, a commitment is made to insure a mortgage (on a specific property for a definite loan amount) to be given by a future purchaser of the property involved if such a purchaser meets certain eligibility requirements. The term "standby commitment" is commonly used in the secondary market for residential mortgages to describe a commitment to purchase a mortgage loan or loans with specific terms, both parties understanding that the purchase is not likely to be completed unless particular circumstances make that advantageous to the seller of the mortgage. These commitments are typically used to enable the borrower to obtain construction financing at a lower cost on the assumption that permanent financing of the project will be available on more favorable terms than under the commitment when the project is completed and generating income.

Condominiums-multifamily housing projects with individual units owned by occupants, who also own an undivided interest in the common areas and facilities of the project.

Cooperatives-multifamily housing projects owned by cooperative corporations with the stockholders of the corporations having the right to occupancy of the units.

Cost Certification-A limitation, under HUD mortgage insurance for multifamily housing, on the amount of a mortgage eligible for insurance, which limitation is determined after completion of the project on the basis of the builder's certification as to the actual dollar amount of his costs for specific items of construction and prescribed related expenditures. Under this requirement, the insured mortgage is limited to a fixed percentage of that certified amount.

Economic Mix-occupancy of rental housing by families of varying economic levels, including very low-income families-to be promoted by_housing assistance payments (Sec. 8, U.S. Housing Act of 1937). Environmental Impact Statements-statements required to be made by Federal agencies in their recommendations or reports on proposals for legislation and other major Federal actions significantly affecting the quality of the human environment, as to the environmental impact of the proposed action; any adverse environmental effects which cannot be avoided should the proposal be implemented; relationship between local short-term use of man's environment and the maintenance and enhancement of long-term productivity; and any irreversible or irretrievable commitments of resources which would be involved in the proposed action should it be implemented (Sec. 102 (2) (C), National Environmental Policy Act of 1969). Applicants for block grants can assume responsibility for this statement under the community development program (Sec. 104 (h), Housing and Community Development Act of 1974).

Estimated Value-the basis of one of the limits on the amount of a mortgage which can be insured by HUD, such as, under certain programs; the mortgage may not exceed 90 percent of the estimated value of the property when completed.

Graduated Payment Mortgages-HUD insurance of housing mortgages, which involve varying rates of amortization corresponding to anticipated variations in family incomes (Sec. 245, National Housing Act).

Fannie Mae Federal National Mortgage Association.

Farmers Home-Farmers Home Administration.

Firm Commitment-See "Commitment".

Flexible Interest Rate Authority-authority of the Secretary of HUD to set the maximum interest rate for FHA-insured and VAguaranteed mortgages at rates he finds necessary to meet the mortgage market (Public Law 90-301, as extended).

Forbearance-The act of postponing or refraining from taking legal action against a mortgagor even though mortgage payments are in arrears (the term is often used in connection with mortgage insurance provisions on the subject).

Freddie Mac-Federal Home Loan Mortgage Corporation.

Ginne Mae-Government National Mortgage Corporation.

Hold Harmless-cities and counties which had been receiving & higher level of funding under Federal assistance programs prior to the new community development block grant program will continue generally to receive the higher level during the first 3 years of the new program (Title I, Housing and Community Development Act of 1974).

Housing Allowance Payments-payments by HUD to assist families in meeting rental or homeownership expenses-experimental program (Sec. 504, Housing Act of 1970).

Housing Assistance Plan-local plan which assesses housing needs of the community, specifies annual goal for the number of units or persons to be assisted, and indicates general locations of proposed housing for lower income persons-which is an essential element of an application for community development block grants (Sec. 104, Housing and Community Development Act of 1974).

Interest Reduction Payments-periodic assistance payments by HUD to mortgagees to permit lower interest rate payments by lower income families (varying with fluctuations in incomes) on HUD insured mortgages financing homes, rental housing, or cooperative housing (Secs. 235, 236, National Housing Act).

Leasing Program-Low-rent housing provided by public housing agencies in housing leased from private owners (Sec. 23, old U.S. Housing Act of 1937).

Loan-To-Value Ratio-The relationship between the amount of the mortgage loan and the appraised value of the property involved, expressed as a percentage of the appraised value. It is one of the traditional limitations on a mortgage eligible for mortgage insurance.

Mortgage-Backed Securities-obligations issued by an organization which has held and set aside mortgages as security for payment of the obligations. FNMA, GNMA, and FHLMC, as well as private organizations, issue such obligations.

National Housing Partnership-A private limited partnership established under statutory provisions for the purpose of carrying out the building, maintenance, or rehabilitation of housing and related facilities for lower or moderate income families. It can enter into partnerships or joint ventures, conduct research, provide technical assistance, and make loans or grants to accomplish its purpose. (Title IX, Housing and Urban Development Act of 1968).

National Institute of Building Sciences-a nonprofit nongovernmental organization to make findings and to advise public and private

sectors of the economy with respect to the use of building science and technology in achieving nationally acceptable standards for use in housing and building regulations (Sec. 809, Housing and Community Development Act of 1974).

Neighborhood Development program-urban renewal carried out with financing on an annual basis.

Operating Subsidies-HUD payments to local public housing agencies to assist the payment of operating expenses of public housing, or to the owners of certain multifamily projects for low income families (Sec. 9, U.S. Housing Act of 1937; Sec. 236 (f), National Housing Act).

Participation Loans-loans by the Farmers Home Administration (or others) where another lender makes a part of the loan.

Pass Through-principal and interest receipts on housing mortgages are "passed through" by GNMA, FNMA, FHLMC or other organizations to the purchasers of their securities or obligations which have been sold and secured by the mortgages set aside as security for the obligations.

Private Mortgage Insurance-insurance by private companies of lenders against losses on mortgage loans.

Planned Unit Development-development and construction of a residential community as a unit in accordance with a plan for the entire development.

Real Estate Investment Trust-a trust established by real estate investors primarily for the management and control of investments in mortgages and to sell obligations secured by mortgages and property held by the trust.

Rent Supplements-annual Federal payments to owners of housing built with certain HUD mortgage insurance on behalf of prescribed types of lower income families.

Replacement Cost-the basis of one of the limits placed on the amount of a mortgage which can be insured by HUD under certain programs, such as: the mortgage may not exceed 90 percent of replacement cost of the housing when completed.

Secondary Market Purchasers-organizations, both private and Federal, which purchase and sell housing mortgages.

Seed Money-advances, loans, or grants to cover preliminary expenses of constructing housing projects, such as the cost of planning and obtaining financing.

Special Assistance-purchase by GNMA of certain housing mortgages, including mortgages financing lower income housing, which are not, without loss, readily saleable to FNMA or other secondary market purchasers.

Standby Commitment-See "Commitment".

Supplemental Loans-HUD-insured loans for improvements or additions to multifamily housing, nursing homes, group practice facilities, or hospitals (Sec. 241, National Housing Act).

Tandem Plan Purchases-the purchase by GNMA of certain housing mortgages at higher prices than would be paid by FNMA, FHLMC or other mortgage purchasers, with subsequent resale by GNMA at the best price obtainable, or as back-up of GNMA's mortggage-backed securities. The term derives from the original practice

of FNMA purchasing from GNMA "in tandem" with the GNMA purchase.

Turnkey Housing-housing initially financed and built by private sponsors and purchased upon completion by housing authorities for use by low-income families under the public housing program.

Urban Homesteading-transfers of unoccupied residences to individuals or families without any substantial consideration where the individuals or families agree to occupy the residences not less than 3 years and to make repairs and improvements required to meet health and safety standards within certain time limits (Sec. 810, Housing and Community Development Act of 1974).

Urban Renewal-elimination and prevention of the development or spread of slums and blight, including slum clearance and redevelopment, or rehabilitation and conservation-aided by HUD advances, loans and grants (Title I, Housing Act of 1949)). Program is being terminated under provisions of Title I, Housing and Community Development Act of 1974.

Urban-Rural Split-community development block grants to be distributed on the basis (generally) of 80 percent of the funds to metropolitan areas and 20 percent to nonmetropolitan areas (Sec. 106, Housing and Community Development Act of 1974).