Sec. 203.18a Solar energy systems. 203.18b Increased mortgage amount. 203.19 Mortgagor's minimum investment. 203.20 Agreed interest rate. 203.25 Late charge. 203.28 Economic soundness of project. 203.29 Eligible mortgages in Alaska, Guam or Hawaii. 203.32 Mortgage lien. 203.33 Relationship of income to mortgage payments. 203.36 Certificate and contract regarding use of dwelling for transient or hotel purposes. 203.38 Location of dwelling. 203.42 Rental properties. 203.43 Eligibility of miscellaneous type mortgages. 203.431 Eligibility of mortgages on Hawaiian home lands pursuant to section 247 of the National Housing Act. 203.43j Eligibility of mortgages on Allegany Reservation of Seneca Nation of Indians. 203.44 Eligibility of open-end advances. 203.45 Eligibility of graduated payment mortgages. 203.46 Eligibility of modified graduated payment mortgages. 203.47 Eligiblity of growing equity mortgages. 203.49 Eligibility of adjustable rates mortgages. 203.50 Eligibility of rehabilitation loans. 203.51 Negotiated interest rate. (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 235 of the Act. [41 FR 1172, Jan. 6, 1976, as amended at 41 FR 52949, Sept. 26, 1976; 44 FR 46836, Aug. 9, 1979; 45 FR 76401, Nov. 18, 1980; 47 FR 16779, Apr. 20, 1982; 49 FR 19454, 19459, May 8, 1984; 49 FR 23586, June 6, 1984; 50 FR 20908, May 21, 1985; 52 FR 8070, Mar. 16, 1987; 52 FR 28470, July 30, 1987; 52 FR 48204, Dec. 21, 1987; 53 FR 9869, Mar. 28, 1988] (b) The amount of subsidy will vary according to the income of each homeowner and the total amount of the mortgage payment at the market rate of interest. Family income and mortgage limits are established for eligibility in each locality. (c) Assistance will be limited to mortgagors who purchase for occupancy new or substantially rehabilitated single family or condominium units. (d) The mortgagor must have paid in cash or its equivalent at least 3 percent of the acquisition cost. (e) In making assistance available, the Secretary shall give preference to low-income families who, without such assistance, would be likely to be involuntarily displaced from their present dwelling unit. [41 FR 1172, Jan. 6, 1976, as amended at 44 FR 25837, May 3, 1979; 45 FR 62796, Sept. 22, 1980; 51 FR 11218, Apr. 1, 1986; 53 FR 846, Jan. 13, 1988] § 235.3 Waivers. The Secretary in any individual case may waive any requirement of Subparts A and C of this part not required by statute if the Secretary finds that application of such requirement would adversely affect achievement of the purposes of the Act. Each such waiver shall be in writing and supported by a statement of the facts and grounds forming the basis for the waiver. The authority under this section may be delegated to the Assistant Secretary for Housing-Federal Housing Commissioner, but shall not be redelegated. [47 FR 35960, Aug. 18, 1982] 8 235.5 Definitions used in this subpart. As used in this subpart, the following terms shall have the meaning indicated: (a) "Adjusted annual income" means the annual family income remaining after making certain exclusions from gross annual income. The following items shall be excluded, in the order listed, from family gross annual income: (1) 5 percent of such gross annual income, in lieu of amounts to be withheld (social security, retirement, health insurance, etc.) regardless of the actual amount of such withholdings; (2) Any unusual income or temporary income, such as overtime pay which will be discontinued, income of a secondary wage earner which will terminate, unemployment compensation which does not occur regularly, or other income of a temporary nature which will be or has been discontinued. (3) The earnings of each minor in the family who is living with such family, plus the sum of $300 for each such minor. (b) [Reserved] (c) "Family" means: (1) Two or more persons related by blood, marriage, or operation of law, who occupy the same unit; (2) A handicapped person who has a physical impairment which is expected to be of a continued duration and which impedes his ability to live independently unless suitable housing is available; or (3) A single person, 62 years of age or older. (d) "Gross annual income" means the total income, before taxes and other deductions, received by all members of the mortgagor's household. There shall be included in this total income all wages, social security payments, retirement benefits, military and veteran's disability payments, unemployment benefits, welfare benefits, interest and dividend payments, and such other income items as the Secretary considers appropriate. (e) "Minor" means a person under the age of 21. As used in this subpart, minor shall not include a mortgagor or his or her spouse. (f) "Substantial rehabilitation" means the improvement of a unit in substandard condition to a decent, safe and sanitary level, meeting FHA's standards for mortgage insurance. Units are in substandard condition when, while they may be structurally sound, they do not provide safe and adequate shelter, and in their present condition endanger the health, safety, or well-being of the occupants. Such housing has one or more defects, or a combination of potential defects in sufficient number or extent to require considerable repair or rebuilding, or is of inadequate original construction. The defects are either so critical or so widespread that the structure should be extensively repaired. The estimated cost of the rehabilitation should normally not be less than 25 percent of the value of the property (including land) after rehabilitation. The rehabilitation should be of such scope that, when completed, all the components in the house are operable and should not be anticipated to require any work or major expense over and above normal maintenance for the first onefourth to one-third of the mortgage term. [41 FR 1172, Jan. 6, 1976, as amended at 43 FR 60156, Dec. 26, 1978; 45 FR 62796, Sept. 22, 1980; 46 FR 56422, Nov. 17, 1981; 51 FR 11218, Apr. 1, 1986; 53 FR 846, Jan. 13, 1988] 8 235.9 Maximum interest rate. (a) The mortgage shall bear interest at the rate agreed upon by the mortgagee and the mortgagor, which rate shall not exceed 10.00 percent per annum, except that where an application for commitment was received by the Secretary before November 1, 1988, the loan may bear interest at the maximum rate in effect at the time of application. (b) Interest shall be payable in monthly installments on the principal amount of the mortgage outstanding on the date of each installment. [49 FR 11624, Mar. 27, 1984, as amended at 53 FR 3366, Feb 5, 1988; 53 FR 46084, Nov. 16, 1988] 8 235.10 Eligible mortgagors. (a) To be eligible under this subpart, the mortgagor shall have an adjusted annual income which shall not exceed at the time of initial occupancy 95 percent of the median income for the area, with adjustments for smaller and larger families, as determined by the Secretary, except that the Secretary may establish income ceilings which are higher, based upon the Secretary's determination that such higher ceil (c) The mortgagor shall agree to recertify, on a form prescribed by the Secretary, as to occupancy, employment, family composition and income whenever one of the following events takes place: (1) Annually, no earlier than 60 days before and no later than 30 days after the anniversary date of the mortgage or at such other anniversary date as set by the Secretary; (2) No more than 30 days after; (i) The mortgagor or any adult (21 years or older) member of the family residing in the household changes or begins employment which results in an increase in the family income reported in the original application for assistance or the most recent recertification. (ii) The family income (except earnings of minors) increases at least $50 per month. (3) At such other times as the Secretary may require. (d) Assistance payments may be used to assist a family owning a standard home to purchase a new home, but a family already owning a home must sell its present property and may not rent that property out to another and occupy the subsidized unit. [41 FR 1172, Jan. 6, 1976, as amended at 41 FR 51011, Nov. 19, 1976; 43 FR 60156, Dec. 26, 1978; 46 FR 56422, Nov. 17, 1981; 51 FR 11218, Apr. 1, 1986; 53 FR 846, Jan. 13, 1988] § 235.11 Homeownership counseling. The Secretary will make available a counseling information package to mortgagees, reservation recipients and sellers participating in this program, who will be required to distribute the package to potential purchasers. Material will include information on home purchase procedures, property maintenance, and other homeownership responsibilities. A certification by the reservation recipient, seller or mortgagee that the prospective homeowner has received the counseling information package must accompany each application for a firm commitment. In addition, some field office jurisdictions are served by HUD approved agencies offering counseling. Where such counseling is available and if the applicant has never owned a home, or where in the opinion of the Secretary the applicant will benefit from counseling, successful completion of homeownership counseling may be required before the Secretary will endorse the loan. (a) With respect to any mortgage insured under this part pursuant to a firm commitment issued on or after May 27, 1981, the mortgagor shall repay to the Secretary any assistance received under this part in the amount provided in paragraph (b) of this section when the mortgagor: (1) Disposes of the property or a homeowner not qualified to receive assistance payments, or (2) Has rented the property (or rented the owner's unit in the case of a two- to four-family property) for more than one year, or (3) Requests a release of the Secretary's lien on the property. (b) The amount of assistance to be repaid by the mortgagor shall be the lesser of the amount of assistance actually received under this part (other than handling charges) or 50 percent of the net appreciation of the property. (c) The term "net appreciation of the property" as used in this section means any increase in the value of the property over the purchase price, as of the time the mortgage is accepted for insurance, less the reasonable costs of sale and the reasonable costs of improvements made to the property. (d) The mortgagor shall execute such documents as the Secretary shall require to assure repayment to the Secretary of the amounts provided in this paragraph. [48 FR 40714, Sept. 19, 1983] 8 235.15 Eligible types of dwellings. (a) The mortgage shall involve one of the following types of dwellings: (1) A single family dwelling concerning which the application for insurance is approved by the Secretary prior to the beginning of construction or prior to the beginning of rehabilitation. (2) A single family dwelling which has never been previously occupied and is covered by a consumer protection or warranty plan acceptable to the Secretary and satisfies all requirements which would have been applicable if such dwelling had been approved for mortgage insurance prior to the beginning of construction. (3) A one-family unit in a condominium project (together with an undivided interest in the common areas and facilities serving the project) which is released from a multifamily project, the construction or substantial rehabilitation of which shall have been completed not more than two years prior to the filing of the application for assistance payments under Subpart C of this part. The family unit shall have had no previous occupant other than the mortgagor. (4) A single family dwelling or a onefamily unit in a condominium project (together with an undivided interest in 30-079 0-89-19 |