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2010-09-23
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Nonprofit Organization Participation in Federal Housing Administration (FHA) Single Family Mortgage Insurance Programs
Part III
Proposed Rules
D09002ee1bdeaa36e
D09002ee1bdeaa488
United States
Department of Housing and Urban Development
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United States Government Agency or Subagency
Nonprofit organizations, including faith-based and community- based organizations, are important participants in HUD's single family housing programs, particularly because of the unique role they play in their communities. They participate by purchasing HUD-owned properties at a discount, acting as non-occupant mortgagors, and providing secondary financing. Unfortunately, nonprofit organizations have significantly higher default rates than other program participants. Therefore, HUD has determined that it is necessary to revise its regulations governing nonprofit organizations in an effort to reduce the defaults and to create more reasonable conditions for participation by nonprofit organizations. A significant percentage of nonprofit organizations that have obtained FHA financing for an unmanageable number of properties have suffered extraordinarily high rates of default on multiple-unit properties. The intent of this proposed rule is to implement conditions and procedures based on HUD's recent experience with practices and requirements that result in successful participation by nonprofit organizations in FHA single family mortgage insurance programs. Specifically, this rule proposes to require nonprofit organizations that obtain insured financing from the FHA for 10 or more properties in a federal fiscal year to prepay at least 80 percent of that total number of FHA insured mortgages by the end of the second fiscal year following the fiscal year in which the FHA insured financing was acquired. Furthermore, this rule would not permit nonprofit organizations to obtain FHA insurance for mortgages secured by single family properties with more than two living units, and the rule would impose additional underwriting guidelines on two-unit properties. The rule also proposes to codify the existing practice to approve as participating nonprofit organizations those organizations that provide evidence of two years of tax-exempt status under the Internal Revenue Code of 1986, and two consecutive years of housing development experience within the previous five years.
69 FR 7324
https://www.govinfo.gov/app/details/FR-2004-02-13/04-3138
04-3138
fr13fe04-32
RIN 2502-AH71
4210-27-P
Docket No. FR-4702-P-01
https://www.govinfo.gov/app/details/FR-2004-02-13/04-3138
https://www.govinfo.gov/content/pkg/FR-2004-02-13/html/04-3138.htm
https://www.govinfo.gov/content/pkg/FR-2004-02-13/pdf/04-3138.pdf
Administrative Practice and Procedure
Claims
Equal Employment Opportunity
Fair Housing
Home Improvement
Housing Standards
Lead Poisoning
Loan Programs-Housing and Community Development
Mortgage Insurance
Organization and Functions (Government Agencies)
Penalties
Reporting and Recordkeeping Requirements
Social Security
Unemployment Compensation
Wages
Hawaiian Natives
Indians-Lands
Solar Energy
5 p.
7324
7328
69 FR 7324
Code of Federal Regulations
Title 24 Part 200
24 CFR Part 200
Code of Federal Regulations
Title 24 Part 203
24 CFR Part 203
Code of Federal Regulations
Title 24 Part 291
24 CFR Part 291
Regulation Identification Number 2502-AH71
RIN 2502-AH71
Nonprofit Organization Participation in Federal Housing Administration (FHA) Single Family Mortgage Insurance Programs; Federal Register Vol. 69, Issue
PRORULE
04-3138
III
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
2004-04-13
Docket No. FR-4702-P-01
4210-27-P
04-3138
Proposed rule.
Nonprofit organizations, including faith-based and community- based organizations, are important participants in HUD's single family housing programs, particularly because of the unique role they play in their communities. They participate by purchasing HUD-owned properties at a discount, acting as non-occupant mortgagors, and providing secondary financing. Unfortunately, nonprofit organizations have significantly higher default rates than other program participants. Therefore, HUD has determined that it is necessary to revise its regulations governing nonprofit organizations in an effort to reduce the defaults and to create more reasonable conditions for participation by nonprofit organizations. A significant percentage of nonprofit organizations that have obtained FHA financing for an unmanageable number of properties have suffered extraordinarily high rates of default on multiple-unit properties. The intent of this proposed rule is to implement conditions and procedures based on HUD's recent experience with practices and requirements that result in successful participation by nonprofit organizations in FHA single family mortgage insurance programs. Specifically, this rule proposes to require nonprofit organizations that obtain insured financing from the FHA for 10 or more properties in a federal fiscal year to prepay at least 80 percent of that total number of FHA insured mortgages by the end of the second fiscal year following the fiscal year in which the FHA insured financing was acquired. Furthermore, this rule would not permit nonprofit organizations to obtain FHA insurance for mortgages secured by single family properties with more than two living units, and the rule would impose additional underwriting guidelines on two-unit properties. The rule also proposes to codify the existing practice to approve as participating nonprofit organizations those organizations that provide evidence of two years of tax-exempt status under the Internal Revenue Code of 1986, and two consecutive years of housing development experience within the previous five years.
Comment Due Date: April 13, 2004.
Donna Tomposki, Housing Program Policy Specialist Coordinator, Department of Housing and Urban Development, 451 Seventh Street, SW., Washington, DC 20410-8000, at (202) 708-0317. (This is not a toll-free number.) Persons with hearing- or speech- impairments may access these numbers through TTY by calling the toll- free Federal Information Relay Service at (800) 877-8339.
Administrative Practice and Procedure
Claims
Equal Employment Opportunity
Fair Housing
Home Improvement
Housing Standards
Lead Poisoning
Loan Programs-Housing and Community Development
Mortgage Insurance
Organization and Functions (Government Agencies)
Penalties
Reporting and Recordkeeping Requirements
Social Security
Unemployment Compensation
Wages
Hawaiian Natives
Indians-Lands
Solar Energy
Mortgage and loan insurance programs:
Single family mortgage insurance
Nonprofit organizations participation,
mkadlic@omb.eop.gov
Federal Register
Vol. 69, no. 30
Office of the Federal Register, National Archives and Records Administration
2004-02-13
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Table of Contents:
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https://www.govinfo.gov/content/pkg/FR-2004-02-13/xml/FR-2004-02-13.xml
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