(3) Where the proceeds are to be used for the purposes indicated in § 203.82 (a) (2) of this chapter, an amount which when added to the aggregate principal balance of any outstanding insured home improvement loans which were obtained for the purposes indicated in § 203.82 (a) (2), creates an aggregate indebtedness for such purposes of not to exceed $10.000. (b) In any geographical area where the Commissioner finds cost levels so require, he may increase by not to exceed 45 percent the $10,000 per family unit limitation set forth in paragraph (a) (1) and (3) of this section. Amended: October 26, 1961; September 2, 1964; August 10, 1965; August 26, 1965 § 220.103 Type and location of property. The property to be improved shall: (a) Constitute real property located within the United States, its territories, or possessions; (b) Contain an existing structure or structures; (c) Be located in one of the urban renewal areas specified in § 220.5. § 220.125 Cost certification require ments. A loan for the improvement of a structure which is used, or upon completion of the improvements will be used, as a dwelling for five to eleven families shall be subject to the provisions of paragraphs (a) through (c) of this section as follows: (a) The lender shall submit with the application for commitment an agreement on a form prescribed by the Commissioner, executed by the borrower and the lender, in which: (1) The borrower agrees to execute, upon completion of the improvements, a certificate of the actual cost of the improvements. (2) The borrower and the lender agree that if the actual cost of the improvements is less than the amount authorized in the commitment, the amount of the loan shall not exceed the actual cost of the improvements, and that the amount of the loan shall be further adjusted to the lowest $50 multiple where the amount is not in excess of $10,000, or adjusted to the lowest $100 multiple where the amount exceeds $10,000. (b) No loan shall be insured unless in accordance with the agreement between the borrower and the lender. (1) The required certification of actual cost is made by the borrower; and (2) The amount of the loan is adjusted to reflect the actual cost of the improvements. (c) The term "actual cost of the improvements" shall mean the cost to the borrower of the improvements, after deducting the amount of any kickbacks, rebates, or trade discount received in connection with the improvements, and including: (1) The amounts paid under any contract for the improvements, labor, materials, and for any other items of expense approved by the Commissioner; and (2) A reasonable allowance for contractor's profit, in an amount approved by the Commissioner, where the Commissioner determines that there is an identity of interest between the borrower and the contractor. Added: October 26, 1961 (d) Any agreement, undertaking statement or certification required in connection with cost certification shall specifically state that it has been made, presented and delivered for the purpose of influencing an official action of the Commissioner and may be relied upon as a true statement of the facts contained therein. Added: January 31, 1962 (e) Upon the Commissioner's approval of the borrower's certification, such certification shall be final and incontestable except for fraud or material misrepresentation on the part of the borrower. Added: January 31, 1962 (f) The borrower shall keep and maintain adequate records of all costs of any construction improvements or other cost items not representing work under the general contract and shall require the builder to keep similar records and, upon request by the Commissioner, shall make available for examination such records, including any collateral agreements. Added: January 31, 1962 URBAN RENEWAL HOUSING AND Subpart B-Contract Rights and Obligations-Homes 203.420 203.421 Sec. 220.251 Incorporation by reference. 203.422 220.252 Forbearance of foreclosure and assignment of mortgage. 203.423 203.424 220.253 Application for insurance benefits and accompanying fiscal data. 220.275 Method of paying insurance benefits. 203.425 Nature of Mutual Mortgage Insurance Fund. Allocation of Mutual Mortgage Insurance Fund income or loss. Right and liability under Mutual Mortgage Insurance Fund. Distribution of distributive shares. Maximum amount of distributive shares. Finality of determination. (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, and all references to the Mutual Mortgage Insurance Fund shall be construed to refer to the General Insurance Fund. Amended: March 15, 1962; August 10, 1965 § 220.252 Forbearance of foreclosure and assignment of mortgage. All of the provisions of §§ 203.340 through 203.342, 203.350, 203.352 and 203.353 of this chapter shall apply to mortgages insured under this subpart, except that the provisions relating to forbearance of foreclosure, recasting of the mortgage and assignment of a defaulted mortgage, shall be applicable only to a mortgage covering a property having not more than four dwelling units. Amended: September 2, 1964 Application for insurance benefits § 220.253 Application for insurance 203.350 in general. 203.351 and fiscal data. benefits and accompanying fiscal data. [Revoked] August 10, 1965 § 220.275 Method of paying insurance benefits. If the application for insurance benefits is acceptable to the Commissioner, all of the insurance claim shall be paid in cash unless the mortgagee files a written request with the application for payment in debentures. If such a request is made, all of the claim shall be paid by issuing debentures and by making a cash payment adjusting any differences between the total amount of the claim and the amount of the debentures issued. Amended: June 3, 1963; September 2, 1964; INSURED HOME IMPROVEMENT LOANS § 220.350 Incorporation by reference. (a) All of the provisions of §§ 203.440 et seq. of this chapter covering insured home improvement loans under section 203(k) of the Act shall apply to home improvement loans on one- to four- § 220.365 family dwellings under section 220(h) of the Act. Amended: September 2, 1964 September 2, 1964 Claim computation, items de ducted. LOW AND MODERATE INCOME HOUSING Subchapter G-Housing for Moderate Income and Displaced Families PART 221-LOW COST AND MODERATE INCOME MORTGAGE INSURANCE Subpart A-Eligibility Require ments-Low Cost Homes Sec. 221.5 221.10 221.11 221.12 221.20 221.21 221.25 221.30 221.32 221.35 221.40 221.45 221.50 221.54 221.55 221.60 221.65 Maximum mortgage amount-dollar limitation. Increased mortgage amount-high cost areas. Eligibilty limitations-two- to fourfamily residences. Maximum mortgage amount-toanto-value limitation. Maximum mortgage amount-limitations on refinancing. Due date of mortgage. Mortgage obligation in multiples. INSURANCE UNDER 221(1) Eligibility requirements and moderate income purchaser of family unit in condominium. AUTHORITY: The provisions of this Part 221 issued under sec. 211, 52 Stat 23, as amended, sec. 221, 68 Stat, 599, as amended; 12 U.S.C. 1715b, 17151. The mortgage shall be executed upon a form approved by the Commissioner for use in the jurisdiction in which the property covered by the mortgage is situated and shall be a first lien upon property that conforms with property standards prescribed by the Commissioner. Amended: November 9, 1966 § 221.10 Maximum mortgage amountdollar limitation. A mortgage executed by a mortgagor who is an occupant of the property shall not exceed: (a) $15,000 for a one-family residence, except that such amount may be increased to $17,500 in the case of a family with five or more persons. Amended: August 1, 1968 (b) $20,000 for a two-family residence. (c) $27,000 for a three-family residence. (d) $33,000 for a four-family residence. § 221.11 Increased mortgage amounthigh cost areas. In any geographical area where the Commissioner finds cost levels so require, the Commissioner may increase the dollar amount limitations set forth in § 221.10 to amounts not to exceed: (a) $17,500 for a one-family residence, except that such amount may be increased to $20,000 in the case of a family with five or more persons. Amended: August 1, 1968 (b) $25,000 for a two-family residence; (c) $32,000 for a three-family residence; (d) $38,000 for a four-family residence; § 221.12 Eligibility limitations-two- to four-family residences. A mortgage secured by property upon which there is located a dwelling designed principally for a two-, three-, or four-family residence shall not be eligible for insurance under this section unless one of the dwelling units is occupied by the mortgagor. Amended: November 21, 1966; August 1, 1968 § 221.20 Maximum mortgage amount— loan-to-value limitation. In addition to meeting the dollar limitations as set forth in this subpart, the mortgage amount shall be limited as follows: (a) Occupant mortgagers. (1) When the mortgagor is the occupant of the property, the mortgage shall not exceed; (i) The Commissioner's estimate of the appraised value of the property as of the date the mortgage is accepted for insurance, where repair and rehabilitation is not involved; or (ii) In the case of rehabilitation, the amount of the mortgage shall not exceed the sum of the estimated cost of repair and rehabilitation and the Commissioner's estimate of the value of the property before repair and rehabilitation. (2) The limitations in subparagraph (1) of this paragraph are applicable only if: (i) The application for insurance is for the construction of a proposed dwelling which is approved for mortgage insurance prior to the beginning of construction; or (ii) Construction was completed more than 1 year preceding the date of the application for insurance; or (iii) The dwelling was approved for guaranty, insurance, or direct loan by the Administrator of Veterans Affairs prior to the beginning of construction. (3) If the conditions of subparagraph (2) are not met, the amount of the mortgage shall not exceed 90 percent of the amount computed under subparagraph (1) of this paragraph. (b) Nonoccupant mortgagors. If the property is to be built or acquired and rehabilitated for sale and the insured mortgage financing is required to facilitate the construction or the repair or rehabilitation of the dwelling and provide financing pending the subsequent sale thereof to a qualified owner-occupant, 85 percent of the amount computed under paragraph (a) or 85 percent of the value of the property, whichever is the lesser, as of the date the mortgage is accepted for insurance, if the mortgagor is not the occupant. § 221.30 Maturity of mortgage. (a) The mortgage shall provide for complete amortization not to exceed 30 years from the date of the beginning of amortization of the mortgage, except that such maturity may be 35 or 40 years in the following instances: (1) In the case of a displaced family, if it is determined by the Commissioner that the mortgagor is not able to make the required payments under a mortgage having a shorter amortization period. Amended: November 21, 1966 (2) In the case of any other mortgagor, if it is determined by the Commissioner that the mortgagor is an owner occupant of the property and is not able to make the required payments under a mortgage having a shorter amortization period, and the dwelling: |