jacent to a public highway. The maximum mortgage cannot exceed the lesser of a dollar amount and an amount computed under a statutory formula based on the ratio the loan bears to the appraised value of the property.

(b) This program is authorized under Title II, section 203(1) of the National Housing Act and governed by regulations contained in Part 203 of this chapter.

$ 200.13 Homes for servicemen.

(a) The FHA insures mortgages on single-family dwellings owned and occupied by servicemen on active duty with the Armed Forces or the Coast Guard.

The maximum mortgage cannot exceed the lesser of a dollar amount and an amount computed under a statutory formula based on the ratio the loan bears to the appraised value of the property. Certification by the Secretary of Defense (or the Secretary of Transportation for Coast Guard personnel) is required to the effect that the serviceman requires housing and that he is and has been for more than 2 years on active military duty.

(b) This program is authorized under Title II, section 222 of the National Housing Act and governed by regulations contained in Part 222 of this chapter.

$ 200.14 Homes for veterans.

(a) The FHA insures mortgages on single-family dwellings owned and occupied by veterans. To qualify as a veteran, the mortgagor must have served 90 days or more on active duty in the armed forces of the United States and have been discharged or released therefrom under conditions other than dishonorable. Extra hazardous duty for a period of less than 90 days will also qualify a mortgagor as a veteran. The maximum mortgage cannot exceed the lesser of a dollar amount and an amount computed under a statutory formula based on the ratio the loan bears to the appraised value of the property. The program offers lower downpayment mortgage financing for the veteran than is available under the regular home mortgage insurance program described in § 200.10.

(b) This program is authorized under title II, sections 203 and 220 of the National Housing Act and title VIII, section 809 of such Act. The applicable regulations are contained in Parts 203, 220, and 226 of this chapter. 8200.15 Housing for civilian employees of the Armed Services, NASA, and NRC.

(a) The FHA insures mortgages covering purchases of one- to four-family homes by civilian employees of an Armed Services or National Aeronautics and Space Administration research and development installation and by civilian and military personnel employed or assigned to duty at a U.S. Nuclear Regulatory Commission research and development installation. The maximum mortgage cannot exceed the lesser of a dollar amount and an amount computed under a statutory formula based on the ratio the loan bears to the appraised value of the property. Certification by the Secretary of Defense, the Administrator of the NASA or the Chairman of the NRC, as appropriate, is required regarding the status of the mortgagor as an employee at the installation (civilian employee or person on military duty), the mortgagor's need for housing, the general need for housing accommodations at the installation, and the permanency of the personnel assigned to the installation. The Secretary of Defense, the Administrator of the NASA or the Chairman of the NRC, as appropriate, may be required to guarantee the insured mortgages, if the Commissioner determines that the housing is not an acceptable risk.

(b) This program is authorized by section 809 of the National Housing Act and governed by the regulations contained in Part 226 of this chapter.

[36 FR 24467, Dec. 22, 1971, as amended at 47 FR 20113, May 11, 1982]

$ 200.19 Other home mortgage assistance.

The FHA offers other types of home mortgage insurance assistance in connection with programs under other titles of the National Housing Act as indicated by §§ 200.25, 200.26, 200.30, and 200.32 through 200.35 of this subpart.

PROJECT MORTGAGE INSURANCE

§ 200.20 Rental projects.

(a) The FHA insures mortgages, including advances made during construction, on rental projects of eight or more units developed either by a private or public mortgagor. The statute prescribes a maximum mortgage determined by a dollar amount, an amount computed under a formula based on the ratio the loan bears to the appraised value of the property, and a varying amount depending upon the number of bedrooms in each dwelling unit.

(b) The basic rental housing project mortgage insurance program is authorized under section 207 of the National Housing Act. The regulations governing this activity are contained in Part 207 of this chapter.

8 200.21 Housing for the elderly.

(a) The FHA insures mortgages, including advances made during construction, on housing projects for the elderly developed by a private, profitmaking mortgagor or a nonprofit organization, a Federal or State instrumentality, a municipal corporation, or a nonprofit development or housing corporation. Preference for occupancy in such projects is required for elderly persons 62 years of age or over and for the physically handicapped. The statute prescribes a maximum mortgage determined by a dollar amount, an amount computed under a formula based on a ratio the loan bears to the replacement cost of the property, and a varying amount depending upon the number of bedrooms in each dwelling unit.

(b) This program is authorized under section 231 of the National Housing Act and governed by the regulations contained in Part 231 of this chapter.

8 200.22 Nursing homes.

(a) The FHA insures mortgages, including advances made during construction, on nursing homes either of the proprietary or nonprofit type. The statute prescribes a maximum mortgage determined by a dollar amount and an amount computed under a for

§ 200.25 Armed services housing-impacted areas.

(a) The FHA insures mortgages on rental and sales housing projects developed for military personnel and essential civilian employees of the armed services or Coast Guard, employees of contractors for the armed services or Coast Guard, and essential personnel employed or assigned to duty at a research or development installation of the National Aeronautics and Space Administration or the Energy Research and Development Administration or employees of a contractor of NASA or ERDA who are employed at a research or development installation. The statute prescribes a maximum mortgage determined by a dollar amount and an amount computed under formulas, which differ for the rental and sales projects, based on the ratio the loan bears to the appraised value of the property. In rental projects, there is an additional limitation based on the number of bedrooms in each dwelling unit. Provision is included for the insurance of the mortgages financing the purchase of the individual dwelling units in a sales project.

(b) This program is authorized under title VIII, section 810 of the National Housing Act and governed by

regulations contained in Part 227 of this chapter.

[36 FR 24467, Dec. 22, 1971, as amended at 43 FR 13511, Mar. 31, 1978]

$ 200.26 Condominium ownership.

(a) The FHA insures mortgages, including construction advances, on multifamily housing projects developed with the intention of converting, upon construction, to a plan of apartment ownership under which the family units in the project are sold to individual owners. In addition, insurance is provided for mortgages financing the purchase of the individually owned apartment units.

(b) The maximum mortgage is computed as follows:

(1) Multifamily housing project mortgages are limited to the lesser of a dollar amount, an amount computed under a statutory formula based on the ratio the loan bears to the replacement cost of the project, or an amount based on the number of bedrooms in each dwelling unit.

(2) Individual mortgages on the apartment units are limited to the lesser of a dollar amount and an amount computed under a statutory formula based on the ratio the loan bears to the appraised value of the apartment unit.

(c) This program is authorized under section 234 of the National Housing Act. The applicable regulations are contained in Part 234 of this chapter.

$ 200.27 Land development.

(a) The FHA insures mortgages for land development in connection with subdivisions and new communities. This authorization is designed to assist private enterprise by enabling private developers to purchase raw land and develop it to provide a steady supply of improved building sites in an orderly and economical manner. The type of improvements to be installed by the developer and which may be financed with the mortgage proceeds includes installations for water lines, water supply, sewage disposal; for complete water or sewerage systems; roads, streets, curbs, gutters, sidewalks, and storm drains. The total outstanding principal of mortgages, involving a single land development undertaking,

shall at no time exceed a dollar amount prescribed by statute. The statute further prescribes a maximum mortgage determined by the ratio the loan bears either to the value of the property after completion of the land development or the value before proposed development plus the cost of such development. The mortgage has a fixed maturity which may be extended where the financing of a water or sewerage system or of a new community is involved.

(b) This program is authorized under title X of the National Housing Act and governed by regulations contained in Part 205 of this chapter.

$ 200.28 Group practice facilities.

(a) The FHA insures mortgages to make credit available on reasonable terms to finance construction and equipment of medical, dental and optometric group practice facilities. The sponsoring group or organization may be either profit motivated or nonprofit, but the mortgagor entity must be nonprofit. It may operate the proposed facility or lease it to a professional group, either profit or nonprofit. The professional group, of not less than five physicians or not less than three dentists and optometrists, all on a full-time schedule, shall have the intention and capability of providing preventive and diagnostic treatment services of a comprehensive nature under a coordinated program with payment for such services on either a prepayment or fee-for-service basis. The 25-year mortgage shall not exceed the lesser of a dollar amount or an amount computed under a statutory formula based on a ratio the loan bears to the estimated value of the property, including equipment.

(b) The program is authorized under title XI of the National Housing Act and governed by regulations contained in Part 244 of this chapter.

8 200.29 Other project mortgage assist

ance.

The FHA offers other types of project mortgage insurance in connection with programs under other titles of the National Housing Act as indi

cated by §§ 200.30 through 200.35 of this subpart.

COOPERATIVE HOUSING INSURANCE

8200.30 Cooperative projects.

(a) The FHA insures mortgages, including construction advances, on cooperative housing projects. The mortgagor may be a nonprofit cooperative ownership housing corporation or trust, the permanent occupancy of the dwellings being restricted to members of the corporation or beneficiaries of the trust (management type project), or a nonprofit corporation or trust organized for the purpose of building homes for members (sales type project) or a corporate investor that certifies to the FHA its intention of selling the project to a cooperative group within 2 years after completion (investor-sponsor project). In addition, the FHA insures supplementary cooperative loans to a nonprofit cooperative project for improvements or repairs to property which is already covered by an FHA-insured project mortgage or for community facilities necessary to serve the occupants of such projects or to finance cooperative purchases and resales of membership.

(b) The maximum mortgage on project type housing cannot exceed the lesser of a dollar amount or an amount computed under a statutory formula based on a ratio the loan bears to the replacement cost of the property. In the case of sales type projects, provision is made for the release of the individual properties from the blanket project mortgage, and the insurance of the individual mortgage covering the individual dwelling with the principal amount limited to the unpaid balance of the blanket mortgage allocable to the individual property as of the date of the release. In the case of a supplementary cooperative loan, the loan is basically limited to an amount which when added to the outstanding mortgage indebtedness creates а total indebtedness which does not exceed the original principal obligation of the mortgage. The total indebtedness created by the supplementary cooperative loan may exceed the original principal obligation where improvements or additional

community facilities are involved, provided such total does not exceed the mortgage amount, which would be eligible for insurance if the original mortgage were to be replaced with a new insured mortgage refinancing the existing indebtedness and financing the improvements.

(c) This program is authorized under Title II, section 213 of the National Housing Act and governed by regulations contained in Part 213 of this chapter.

TRAILER COURTS AND PARKS INSURANCE

8 200.31 Sites and facilities for manufactured homes.

(a) The FHA insures mortgages on trailer courts and parks. The mortgage transaction must be acceptable to the Commissioner and the maximum mortgage cannot exceed an amount computed under a statutory formula based on a ratio the loan bears to the estimated value of the property after the improvements are completed. The insurance applies to mortgages on sites and facilities but not on the trailers themselves. The court or park must have at least fifty spaces on one site designed for rental use for trailers or manufactured homes and must meet minimum requirements designed to improve the living conditions of the occupants.

(b) This program is authorized under Title II, section 207 of the National Housing Act and governed by regulations contained in Part 207 of this chapter.

[36 FR 24467, Dec. 22, 1971, as amended at 50 FR 9268, Mar. 7, 1985]

URBAN RENEWAL INSURANCE

8200.32 Residential rehabilitation.

(a) In urban renewal areas, the FHA insures mortgages on dwellings designed principally for residential use by not more than 11 families and on multifamily rental projects. The mortgages may be for financing the rehabilitation of existing salvable housing (including the refinancing or existing indebtedness) or for the replacement of slums with new housing. Insurance on multifamily project mortgages may

include coverage of construction ad

vances.

(b) The determination of maximum mortgage is governed by the following:

(1) On a 1- to 11-family dwelling the mortgage is limited to the lesser of a dollar limitation, governed by the number of residences in the dwelling, or a ratio of loan to the estimated replacement cost established under a statutory formula. Where rehabilitation is involved, an additional adjustment in the maximum mortgage is made on the basis of the estimated cost of rehabilitation and the estimated value of the property prior to rehabilitation. Where refinancing is involved, a further adjustment is made on the basis of the amount required to pay off the outstanding indebtedness. (2) On a multifamily project, the mortgage is limited to the lesser of: (i) A dollar amount.

(ii) An amount computed under a statutory formula based on a ratio the loan bears to the replacement cost of the property with an additional adjustment made where the project involves rehabilitation and/or refinancing. Where rehabilitation is involved, the mortgage is adjusted on the basis of the estimated cost of rehabilitation and the estimated value of the property prior to rehabilitation. Where refinancing is involved, a further adjustment is made on the basis of the amount required to pay off the outstanding indebtedness.

(iii) An amount based on the number of bedrooms in each dwelling unit.

(c) This program is authorized under Title II, section 220 of the National Housing Act and governed by regulations contained in Part 220 of this chapter.

LOW AND MODERATE INCOME HOUSING 8 200.33 Low cost homes and moderate income projects.

(a) The FHA insures mortgages on low cost homes for low and moderate income families with special terms available to families displaced from an urban renewal area, or as a result of governmental action, or as a result of a disaster determined by the President to be a major disaster. Also, mortgages are insured by the FHA, including con

struction advances, on projects for moderate income families involving profit, nonprofit, public, limited distribution and cooperative mortgagors. Projects must be located in a community which the Secretary of Housing and Urban Development has approved and certified to the FHA as having a workable program designed to eliminate slums and prevent the spread of urban blight. Projects meeting special criteria may be insured at a below market interest rate. Eligibility for occupancy of a project financed with a below market interest rate mortgage is limited to families and elderly or handicapped individuals having an income below the income ceiling established by the Commissioner for the area in which the project is located.

(b) The maximum mortgage on a low cost home is limited to the lesser of the value of the property or a dollar amount which depends on whether a one-, two-, three- or four-family residence is involved. Where rehabilitation is involved, an additional adjustment in the maximum mortgage is made on the basis of the estimated cost of rehabilitation and the estimated value of the property prior to rehabilitation. The maximum mortgage on a multifamily project is limited to the lesser of:

(1) A dollar amount.

(2) An amount computed under a statutory formula based on a ratio the loan bears to the replacement cost of the property with an additional adjustment made where the project involves rehabilitation. In such instances, the mortgage is limited to the estimated cost of rehabilitation plus the estimated value of the property prior to rehabilitation.

(3) An amount based on the number of bedrooms in each dwelling unit.

(c) This program is authorized under title II, section 221 of the National Housing Act and governed by regulations contained in Part 221 of this chapter.

PUBLICLY CONSTRUCTED HOUSING
INSURANCE

§ 200.34 Miscellaneous type mortgages. The FHA insures mortgages financing purchases of certain types of per