Sec. 220.821 Items to be fled on submitting claim. 220.822 Claim computation; items included. 220.823 Claim computation; items deducted. 220.830 Debenture interest rate. 220.832 Maturity of debentures. 220.834 Registration of debentures. 220.836 Denomination of debentures. 220.838 Redemption of debentures. 220.840 Issue date of debentures. 220.842 Cash adjustment. 220.850 Assignment of insured loanɛ. AUTHORITY: The provisions of this Part 220 issued under sec. 211, 52 Stat. 23, as amended, sec. 220, 68 Stat. 596, as amended; 12 U.S.C. 1715b, 1715k. SOURCE: The provisions of this Part 220 appear at 36 F.R. 24573, Dec. 22, 1971, unless otherwise noted. Subpart A-Eligibility Require- HOME MORTGAGE INSURANCE (a) All of the provisions of Subpart A. Part 203 of this chapter concerning ellgibility requirements of mortgages under section 203 of the National Housing Act apply to mortgages covering one- to eleven-family dwellings under section 220 of the National Housing Act, except the following provisions: Sec. 203.12 Application and commitment extension fees. 203.15 Certification of appraisal amount. 203.18 Maximum mortgage amounts. 203.19 Mortgagor's minimum investment. 203.27 Maximum charges, fees and discounts. 203.28 Economic soundness of project. 203.40 Location of property. 203.42 Rental properties. 203.50 et seq. Insured home improvement loans. (b) For the purposes of this subpart all references in Part 203 of this chapter to section 203 of the Act shall be construed to refer to section 220 of the Act. $220.2 Application and commitment extension fees. All of the provisions of § 203.12 concerning application and commitment extension fees apply to mortgages insured under this part, except the provision in § 203.12(a) (1) (v) for an application fee of $15 where the mortgagee establishes that the Veterans Administration has issued a Certificate of Reasonable Value which has not expired. § 220.5 Location of property. The mortgaged property must be located in (a) The area of an existing slum clearance and urban redevelopment project covered by a Federal-aid contract exe. cuted or prior approval granted (pursuant to Title I of the Housing Act of 1949. as amended) before the effective date of the Housing Act of 1954, or (b) An urban renewal area in a community which has a workable program to eliminate and prevent the spread of slums and urban blight and respecting which the Secretary of Housing and Urban Development has made the findings prescribed in title I of the Housing Act of 1949, as amended, or (c) The area of an urban renewal project assisted under section 111 of the Housing Act of 1949, as amended, providing for redevelopment or rehabilitation of urban areas made necessary as the result of a disaster. or (d) An area in which a program of concentrated code enforcement activities is being carried out pursuant to section 117 of the Housing Act of 1949. § 220.10 Certificate by Secretary to Commissioner. No mortgage may be insured until a redevelopment or urban renewal plan has been approved for the area by the governing body of the locality involved and by the Secretary of Housing and Urban Development and the Secretary has certified to the Commissioner that: (a) The redevelopment plan or the urban renewal plan conforms to a general plan for the locality as a whole, and (b) There exists the necessary authority and financial capacity to assure the completion of such redevelopment or urban renewal plan, or (c) There exists an urban renewal plan as required for projects assisted under section 111 of the Housing Act of 1949, as amended, which plan conforms to definite local objectives respecting ap. propriate land uses, improved traffic, public transportation, public utilities, recreational and community facilities and other public improvements, and there exists the necessary authority and financial capacity to insure completion of such urban renewal plan. § 220.15 Standards and conditions of acceptability. The mortgaged property shall meet such standards and conditions as the proceeds of such advances shall not be used for the purpose of financing obligations previously incurred for such repairs or improvements. (b) The mortgagee shall submit an application for insurance of open-end advances upon a standard form prescribed by the Commissioner. (c) Applications filled must be accompanied by the mortgagee's remittance for the sum of $10 for processing of the application. If an application is refused as a result of preliminary examination by the Commissioner or in such other instances as the Commissioner may determine the entire fee will be returned to the applicant. A commitment extension fee of $10 shall be remitted by the mortgagee with a request for extending an outstanding commitment or for reopening and extending an expired commitment within two months after such expiration. (d) In addition to the application fee required by paragraph (c) of this section, the mortgagee may charge the mortgagor a fee not to exceed $25 or 1 percent of the open-end advance, whichever is the lesser, and the amount of out-of-pocket expenditures made by the mortgagee for customary costs of title search and recording fees. The mortgagee may require the mortgagor to pay to the mortgagee all charges permitted under this section on or prior to the date of final disbursement of the open-end advance, together with a sum sufficient to pay the initial insurance charge provided for in this part. No portion of such charges may be included in the principal amount of the open-end advance. (e) Upon approval of an application, acceptance of the advance for insurance will be evidenced by the issuance of a commitment setting forth, upon a form prescribed by the Commissioner, the terms and conditions upon which the advance will be insured. (f) The amount of such advance shall be added to the unpaid principal obligation of the mortgage, whereupon the aggregate of the original unpaid principal and the amount of the open-end advance shall: (1) Bear interest at the rate provided in such mortgage, payable in monthly installments on the principal then outstanding; (2) Be payable in substantially equal monthly payments in an amount suf ficient to amortize the aggregate pri cipal amount within the remainin original term of the mortgage. (g) The amount of any such advan (computed in even dollar amounts when added to the unpaid balance the original principal obligation of th mortgage shall not exceed the origin principal obligation of the mortgage Provided, That if the mortgagor cert fles that the proceeds of such open-en advance will be used to finance the cor struction of an additional room or room or other additional enclosed space a part of the dwelling, the aggregal amount of the unpaid balance of th original principal obligation, plus th amount of the open-end advance, ma exceed the amount of the original prir cipal obligation of the mortgage, but i no event shall such aggregate amour exceed the maximum amounts pre scribed by the limitations of § 213.509. (h) A mortgagee may amend or mod ify any approved FHA mortgage for by adding such provisions as it deem necessary for the purpose of makin open-end advances, by any rider or mod ification agreement which is valid and enforceable in the jurisdiction in whic the property covered by the mortgage 1 located, provided such rider or modifi cation agreement retains in the mort gagee the right to approve or disapprov additional advances on such terms and conditions as the mortgagee may pre scribe. The mortgagee will have the sol responsibility for determining that an mortgage amended by an "open-end rider or modification agreement will b a valid and enforceable instrument an will constitute a valid first lien on the property upon which the Commissione based his valuation. § 213.550 Eligibility of mortgages cov ering housing in certain neighbor hoods. (a) A mortgage financing the repair rehabilitation, construction, or purchas of property located in an older declinin urban area shall be eligible for insuranc under this subpart subject to complianc with the additional requirements of thi section. (b) The mortgage shall meet all of the requirements of this subpart, except such requirements as are judged to be no applicable on the basis of the following determinations to be made by the Commissioner: (1) That the conditions of the area in which the property is located prevent the application of certain eligibility requirements of this subpart. (2) That the area is reasonably viable, and there is a need in the area for adequate housing for families of low and moderate income. (3) That the mortgage to be insured is an acceptable risk. (c) Mortgages complying with the requirements of this section shall be insured under this subpart pursuant to section 223(e) of the National Housing Act. Such mortgages shall be insured under and be the obligation of the Special Risk Insurance Fund. 213.749 Effect of amendments. The regulations in this subpart may be amended by the Commissioner at any time and from time to time, in whole or in part, but such amendment shall not adversely affect the interests of a mortgagee or lender under the contract of Insurance on any mortgage or loan already insured and shall not adversely affect the interests of a mortgagee or lender on any mortgage or loan to be Insured on which the Commissioner has made a commitment to insure. Subpart D-Contract Rights and Obligations-Individual Properties Released From Project Mortgage $213.751 Incorporation by reference. (a) Definitions. All of the definitions contained in 213.1 shall apply to this Subpart. (b) Other provisions. All of the provisions of Subpart B, Part 203 of this chapter covering mortgages insured under section 203 of the National Housing Act apply to mortgages insured under section 213 of the National Housing Act except the following provisions: Sec. 08.420 Nature of Mutual Mortgage Insurance Fund. 208.421 Allocation of Mutual Mortgage Insurance Fund income or loss. 208.422 Right and liability under Mutual Mortgage Insurance Fund. 03.423 Distribution of distributive shares. 208.424 Maximum amount of distributive shares. 203.425 Finality of determination 203.440-203.493, inclusive. (c) References. For the purpose of this subpart, all references in Part 203 of this chapter to section 203 of the act (a) "Act" means the Housing and Urban Development Act of 1965. (b) "Secretary" means the Secretary of Housing and Urban Development or an officer of the Department of Housing and Urban Development empowered to exercise any of the functions of the Secretary under section 101 of the Act. (c) "Commissioner" means the Federal Housing Commissioner or his authorized representative. (d) "Dilapidated housing" means housing unit that does not provide safe and adequate shelter, and in its present condition endangers the health, safety, or well-being of the occupants. Such housing unit shall have one or more critical defects, or a combination of intermediate defects in sufficient number or extent to require considerable repair or rebuilding. Such defects may involve original construction, or they may result from continued neglect or lack of repair or from serious damage to the structure. (e) "Displaced by governmental action" means an individual or family, moved or to be moved from real property occupied as a dwelling unit as a result of activities in connection with a public improvement or development program carried on by an agency of the United States or any State or local governmental body or agency. (f) "Family" means two or more persons related by blood, marriage, or operation of law, who occupy the same dwelling unit. (g) "Physically handicapped" means an individual who has a physical impairment which: (1) Is expected to be of long continued and indefinite duration; (2) Substantially impedes his ability to live independently; and (3) Is of such nature that his ability to live independently could be improved by more suitable housing conditions. (h) "Substandard housing" means a unit which is either dilapidated as defined in paragraph (d) of this section, or does not have one of the following plumbing facilities: (1) Hot and cold piped water inside the unit. (2) Usable flush toilet inside the structure for the exclusive use of the occupants of the unit. (3) Usable bathtub or shower inside the structure for the exclusive use of the occupants of the unit. § 215.5 Scope of rent supplement assist (5) Existing structures which are sol by the Secretary, if rent supplemen payments had been made in connectio with the structures before acquisitio by the Secretary and provided that th rent supplement assistance shall be lim ited to the maximum amount set fort in the original rent supplement contrac (6) Existing structures on which ther is a mortgage insured under section 23 of the National Housing Act, (7) Existing structures which are ac quired and sold by the Secretary, if th sale is financed by a mortgage insure under section 221(d) (3) or section 23 of the National Housing Act, and, afte acquisition by the Secretary, there major rehabilitation of the structure, ‹ remodeling to create standard unf where substandard units previously e isted, or (8) On an experimental basis, exis ing structures in connection with certai housing projects for the elderly. (b) The Commissioner may make ret supplement payments with respect 1 projects in which dwelling units do no contain kitchen facilities. [36 F.R. 24571, Dec. 22, 1971, as amended 37 F.R. 12231, June 21, 1972] § 215.15 Eligible housing owner. (a) To be eligible to receive rent sur plement payments, the owner of the mu tifamily project shall be a nonprofi limited distribution, or cooperative mor gagor. The project shall be financed one of the following ways: (1) By a mortgage bearing interest the market rate prescribed in § 221.5 (a) of this title and insured under se tion 221(d) (3) of the National Housin Act (or insured under section 233 of suc Act pursuant to section 221(d) (3)). Su mortgage shall be insured pursuant an insurance commitment issued aft August 10, 1965. (2) By a state or local program pr viding assistance through loans, loan in surance, or tax abatements, if the pro ect is approved by the Commissioner f receiving rent supplement payments. (b) The Commissioner may, on an e perimental basis, enter into a limit number of rent supplement contracte with the following types of housi owners: (1) A nonprofit, limited distributio or cooperative mortgagor under a mor gage bearing interest at the below ma ket rate prescribed in § 221.518(b) of the b e. Such project must be insured purint to a commitment issued after gust 10, 1965 for the insurance of a rtgage under section 221(d) (3) of the tional Housing Act (or insured under tion 233 of such Act pursuant to secn 221(d) (3)). 2) A private nonprofit mortgagor der a mortgage insured pursuant to tion 231(c)(3) of the National HousAct (or insured under section 233 such Act pursuant to section 231(c) () which is approved for receiving the nefits provided in this part and finally dorsed for insurance after August 10, 35. (3) A private nonprofit corporation, a blic body or agency, or a cooperative using corporation which is a borrower ider section 202 of the Housing Act of 59 and has been approved for receiving e benefits provided in this part. (4) A nonprofit, limited distribution, Cooperative mortgagor under a mortge insured pursuant to section 236 of e National Housing Act (or insured der section 233 of such Act pursuant section 236 (j) (1)) which is receiving erest reduction payments pursuant to tion 236 of the Act and is approved receiving the benefits provided in this rt. (c) A housing owner qualifying under e provisions of paragraph (a) or (b) this section shall only be eligible for nt supplement payments if: (1) The dwelling unit or project is rt of a workable program for cominity improvements meeting the reirements of section 101 (c) of the Jusing Act of 1949; or (2) The dwelling unit or project reIves local official approval for paripation in the Federal rent supplement ogram. 215.20 Qualified tenant. (a) The benefits of the rent supplement yments are available only to an indidual or a family renting a dwelling it in a project owned by an eligible using owner or occupying such a dwellunit as a cooperative member. To alify for such benefits, the individual family shall meet the following quirements: (1) Have an annual income below the aximum amount established by the cretary, which amount shall not be gher than can be established in the ea where the property is located for occupancy in a low-rent public housing project assisted under the United States Housing Act of 1937. The limits are determined by the Secretary on the basis of recommended limits and supporting data and information received from the Public Housing Agency or the HUD field office serving the locality. The limits are available for inspection in the HUD field office. In computing a tenant's income for the purpose of this section, $300 shall be deducted for each minor person who is a member of the immediate family of the tenant and residing with the tenant and any earnings of such minor shall not be included in computing the tenant's income. (2) In a case involving an elderly individual or a family whose head or spouse is elderly, have assets not exceeding three times the dollar amount of the applicable income limit for the locality as determined in accordance with the second sentence in paragraph (a)(1) of this section. (3) In a case involving other than the elderly, have assets not exceeding the dollar amount of the applicable income limit for the locality as determined in accordance with the second sentence in paragraph (a)(1) of this section. (4) Be one of the following: (1) An individual or family displaced by governmental action. (ii) An individual who is 62 years of age or over, or physically handicapped. (1) A head of a family who is or whose spouse is, 62 years of age or over, or who is physically handicapped. (iv) An occupant of substandard housing. (v) An occupant or former occupant of a dwelling which is (or was) situated in an area determined by the Small Business Administration subsequent to April 1, 1965, to have been affected by a natural disaster and which has been extensively damaged or destroyed as the result of such disaster. (vi) A family whose head, or spouse, is a member of the Armed Forces of the United States who is serving on active duty. (b) For the purposes of this section, income shall mean the total gross income, before taxes and other deductions, received by all members of the tenant's household. In determining gross income, there shall be included all wages, social security payments, retirement benefits, military and veteran's disability |