Mortgage Insurance Rental Housing for the Elderly
Active
- Assistance listing
- 14.138
- Agency
-
Assistant Secretary for Housing Federal Housing Commissioner
Department of Housing and Urban Development
- Grant awards
- Not on record
Program facts
- Also known as
- New Construction and Substantial Rehabilitation for Rental Housing for the Elderly - Section 231
- Treasury account
-
- 86-4077-0-3-371
- More information
Program details come from SAM.gov Assistance Listings. Updated .
About this program
The Department of Housing and Urban Development, Federal Housing Commissioner, insures mortgages for rental housing development serving elderly persons and persons with disabilities under Section 231, CFDA 14.138, with no recent grant award activity reported.
This program operates as a mortgage insurance mechanism rather than a direct grant program. HUD commits to insure lenders against loss on mortgages financing rental housing projects designed for occupancy by elderly persons and/or persons with disabilities. Eligible mortgagors include private profit-motivated developers and nonprofit sponsors. The program processes applications through local HUD Multifamily Hubs or Satellite Offices, with a target processing timeline of 90 days excluding time spent by lenders responding to HUD documentation requests. When projects meet program requirements, HUD issues a commitment to insure the mortgage; applicants may appeal denials in accordance with the Multifamily Accelerated Processing (MAP) Guide. HUD reserves audit rights over mortgagee and mortgagor accounts to verify compliance with HUD regulations and acceptable mortgage servicing standards.
The source provides no recent grant awards, portfolio statistics, award concentration data, or open grant opportunities under this listing. The program description notes that few projects have been insured under Section 231 in recent years, with developers opting instead for Section 221(d)(4) mortgage insurance, suggesting limited current activity or uptake. Required application documents and detailed program procedures are contained in the MAP Guide. Processing timelines and appeal procedures are available through HUD's local field offices.
This program functions as a specialized mortgage insurance vehicle for elderly housing development rather than a traditional grants-and-cooperative-agreements funding stream. Business development professionals evaluating this program should confirm current activity and competitive positioning relative to Section 221(d)(4) alternatives before pursuing a lead.
Objective and description
- Objective
To provide quality rental housing for the elderly.
- Description
Section 231 insures lenders against loss on mortgages. Section 231 was designed to increase the supply of rental housing specifically for the use and occupancy of elderly persons, and/or persons with disabilities. However, few projects have been insured under Section 231 in recent years; developers have opted to use Section 221(d)(4).
Eligibility
- Applicant eligibility
Eligible mortgagors include private profit-motivated developers, and nonprofit sponsors.
- Beneficiary eligibility
All elderly or handicapped persons are eligible to occupy apartments in a project whose mortgage is insured under the program.
- Uses of assistance
Section 231 insures lenders against loss on mortgages. Section 231 was designed to increase the supply of rental housing specifically for the use and occupancy of elderly persons and/or persons with disabilities. Insured mortgages may be used to finance construction or rehabilitation of detached, semidetached, walk-up, or elevator type rental housing designed for occupancy by elderly or handicapped individuals and consisting of 8 or more rental units. The program has statutory per unit mortgage limits which vary according to the size of the unit, the type of structure, and the location of the project. There are also loan-to-replacement cost and debt service limitations.
- Use restrictions
Insured mortgages may be used to finance construction or rehabilitation of detached, semidetached, walk-up, or elevator type rental housing designed for occupancy by elderly or handicapped individuals and consisting of 8 or more rental units.
- Length and time phasing of assistance
The maximum mortgage term is 40 years or not in excess of three-fourths of the remaining economic life, whichever is less.
How to apply
- Preapplication coordination
Required documents can be found in the MAP Guide.
- Award procedure
If the project meets program requirements, the local HUD Multifamily Hub or Satellite Office issues a commitment to the lender for mortgage insurance.
- Time to approval or disapproval
The processing time goal is 90 days, minus any time that the lender spends answering follow up questions or documentation requests from HUD.
- Renewals
The term of a commitment to insure may be extended when more time is required.
- Appeals
If an application for mortgage insurance is denied, HUD will state the reasons for the denial. Appeal request may be made in accordance with the MAP Guide.
Quick answers
What is Assistance Listing 14.138?
Assistance Listing 14.138 is Mortgage Insurance Rental Housing for the Elderly, a federal grant program run by Assistant Secretary for Housing Federal Housing Commissioner (Department of Housing and Urban Development).
What is the CFDA number for Mortgage Insurance Rental Housing for the Elderly?
Its CFDA number is 14.138: Assistance Listing numbers were called CFDA numbers before 2018.
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