Housing Assistance: An Inventory of Fiscal Year 2010 Programs, Tax Expenditures, and Other Activities

U.S. Government Accountability Office

Mortgage Insurance for Rental and Cooperative Housing (Section 221(d)(4))

Administering Agency/Entity Department of Housing and Urban Development
Short Description Provides insurance for mortgage loans to facilitate the construction or substantial rehabilitation of multifamily rental or cooperative housing for moderate-income families, the elderly, and the handicapped. Single-room occupancy projects may also be insured. Under Section 221(d)(4), for-profit sponsors can receive a maximum mortgage of 90 percent of the HUD/FHA replacement cost estimate. The program is intended to assist private industry in the construction or rehabilitation of rental and cooperative housing for moderate-income and displaced families by making capital more readily available. The program allows for long-term mortgages (up to 40 years) that can be financed with mortgage-backed securities guaranteed by the Government National Mortgage Association (Ginnie Mae).
Primary Purpose Assistance for financing rental housing
Type of Housing Supported Rental Housing
Type of Assistance Insured loan
Fiscal Year 2010 Obligations -$45,000,000; obligations represent the expected credit subsidy costs for loan commitments under this program made in fiscal year 2010. These estimates are revised in subsequent years and the ultimate cost will not be known until the loans have matured, which in some cases may be 40 years. This loan program is part of the General Insurance and Special Risk Insurance Fund, which houses a wide range of mortgage insurance products, including insurance for loans to develop, rehabilitate, and refinance multifamily rental housing, nursing home facilities, and hospitals.

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