Section 207 (Mortgage Insurance for Multifamily Housing).
Section 207 of the Housing
Act provides for federal insurance of mortgage loans originated by FHA-approved lenders in
connection with the construction or substantial rehabilitation of multifamily housing projects,
which includes manufactured home parks.
Section 213 (Cooperative Housing Projects).
Section 213 of the Housing Act provides for
FHA insurance of mortgage loans on cooperative housing projects. Section 213 mortgage
insurance enables nonprofit cooperative ownership housing corporations or trusts to develop or
sponsor housing projects that will be operated as cooperatives. By using Section 213 insurance,
investors can construct or rehabilitate multifamily housing that will be sold to such nonprofit
corporations or trusts.
Section 221(d) (Housing for Moderate Income and Displaced Families).
Sections
221(d)(3) and 221(d)(4) of the Housing Act provide for mortgage insurance to assist private
industry in the construction or substantial rehabilitation of rental and cooperative housing for
low- and moderate income families and families that have been displaced as a result of urban
renewal, governmental actions or disaster.
Section 223(a)(7) (Refinancing of FHA-Insured Mortgages).
Section 223(a)(7) of the
Housing Act permits the FHA to refinance existing insured mortgage loans under any section or
title of the Housing Act. Such refinancing results in prepayment of the existing insured
mortgage. The new, refinanced mortgage loan is limited to the original principal amount of the
existing mortgage loan and the unexpired term of the existing mortgage loan plus 12 years.
Section 223(f) (Purchase or Refinancing of Existing Projects).
Section 223(f) of the
Housing Act provides for federal insurance of mortgage loans originated by FHA-approved
lenders in connection with the purchase or refinancing of existing multifamily housing
complexes, hospitals and nursing homes that do not require substantial rehabilitation. The
principal objective of the Section 223(f) program is to permit the refinancing of mortgages to
provide for a lower debt service or the S-14 purchase of existing properties in order to preserve
an adequate supply of affordable rental housing. Such projects may have been financed
originally with conventional or FHA-insured mortgages.
Section 231 (Mortgage Insurance for Rental Housing for the Elderly).
Section 231 of the
Housing Act provides for insurance of mortgage loans to facilitate the construction and
substantial rehabilitation of multifamily rental housing for elderly (62 or older) or disabled
persons. The mortgage insurance may be used to finance the construction and substantial
rehabilitation of detached, semi-detached, walk-up or elevator type rental housing designed
specifically for elderly or disabled individuals consisting of 8 or more dwelling units. Sec-
tion 231 was designed to increase the supply of rental housing specifically for the use and
occupancy of elderly and/or disabled persons.
Section 232 (Mortgage Insurance for Nursing Homes, Immediate Care Facilities and
Board and Care Homes).
Section 232 of the Housing Act provides for FHA insurance of
private construction mortgage loans to finance new or rehabilitated nursing homes, intermedi-
ate care facilities, board and care homes, assisted living for the frail or elderly or allowable
combinations thereof, including equipment to be used in their operation. Section 232 also
provides for supplemental loans to finance the purchase and installation of fire safety equip-
ment in these facilities.
Section 236 (Mortgage Insurance for Subsidized Rental Housing Projects).
Section 236
of the National Housing Act combines governmental mortgage insurance on multifamily
housing projects with supplemental payments to reduce the project owners' monthly debt
service payments. The supplemental payments are paid directly to the mortgagee of the project
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