1、370 24 CFR Ch. II (4111 Edition) 235.1236 such period as the Secretary deter-mines to be appropriate. 57 FR 62453, Dec. 30, 1992. Redesignated at 60 FR 56499, Nov. 8, 1995 235.1236 Recapture of assistance pay-ments. The mortgagor shall execute an agreement subordinating the recapture mortgage, if an
2、y, to the section 235(r) mortgage. The mortgagor shall also execute a new note for recapture of as-sistance payments, and amend the re-capture mortgage to include in the principal balance the assistance pay-ments made in connection with the mortgage insured under section 235(r). 57 FR 62453, Dec. 30
3、, 1992. Redesignated at 60 FR 56499, Nov. 8, 1995 SERVICING RESPONSIBILITIES 235.1238 Cross-reference. The provisions of subpart G of 24 CFR part 235 shall be applicable to mort-gages insured under section 235(r). 57 FR 62453, Dec. 30, 1992. Redesignated at 60 FR 56499, Nov. 8, 1995 PART 236MORTGAGE
4、 INSUR-ANCE AND INTEREST REDUCTION PAYMENT FOR RENTAL PROJECTS Subpart AEligibility Requirements for Mortgage Insurance Sec. 236.1 Applicability, cross-reference and sav-ings clause. 236.2 Increased distributions to certain lim-ited distribution mortgagors. 236.3 Annual income exclusions. 236.60 Exc
5、ess income. Subpart BContract Rights and Obligations for Mortgage Insurance 236.251 Cross-reference. 236.252 First, second, and third mortgage in-surance premiums. 236.253 Premiumsoperating loss loans. 236.254 Termination of mortgage insurance. 236.255 Forbearance relief. 236.260 Request by Commissi
6、oner for assign-ment of mortgage. 236.265 Payment of insurance benefits. Subpart CInterest Reduction Payments 236.501 Interest reduction payments con-tract. 236.505 Eligible mortgages. 236.510 Term of payments. 236.515 Time of payments. 236.520 Amount of payments. 236.525 Application of payments. 23
7、6.530 Mortgagee records. 236.535 Effect of assignment of mortgage. 236.599 Effect of amendments. Subpart DRental Assistance Payments 236.701 Scope of rental assistance. 236.705 Projects eligible for benefits. 236.710 Qualified tenant. 236.715 Determination of eligibility. 236.720 Provisions applicab
8、le to cooperative members. 236.725 Term of contract. 236.730 Maximum annual rental assistance contract amount. 236.735 Rental assistance payments and rental charges. 236.740 Time of payment under contract. 236.745 Tenant occupancy limitations. 236.750 Form of lease. 236.755 Housing owners obligation
9、 under contract to report tenant income in-crease. 236.760 Change in tenant income status. 236.765 Determination of eligible immigra-tion status of applicants and tenants; protection from liability. Subpart EAudits 236.901 Audit. Subpart FUniform Relocation Assistance 236.1001 Displacement, relocati
10、on, and ac-quisition. AUTHORITY: 12 U.S.C. 1715b and 1715z1; 42 U.S.C. 3535(d). SOURCE: 36 FR 24643, Dec. 22, 1971, unless otherwise noted. Subpart AEligibility Require-ments for Mortgage Insur-ance 236.1 Applicability, cross-reference, and savings clause. (a) Applicability. This section imple-ments
11、 the eligibility requirements for mortgage insurance under the Rental and Cooperative Housing For Lower In-come Families Program contained in section 236 of the National Housing Act VerDate Mar2010 10:21 May 10, 2011 Jkt 223078 PO 00000 Frm 00380 Fmt 8010 Sfmt 8010 Y:SGML223078.XXX 223078WReier-Avil
12、es on DSKGBLS3C1PROD with CFRProvided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-371 Office of Assistant Secretary for Housing, HUD 236.60 (12 U.S.C. 1701), as amended. The pro-gram authorized the Secretary to in-sure mortgages to support new con-structi
13、on or rehabilitation of real prop-erty to be used primarily for residen-tial rental purposes. A moratorium against issuance of commitments to in-sure new mortgages under section 236 was imposed January 5, 1973. Section 236(n) prohibits the insurance of mort-gages under section 236 after November 30,
14、 1983, except to permit the refinance of a mortgage insured under section 236, or to finance pursuant to section 236(j)(3), the purchase, by a cooperative or nonprofit corporation or associa-tion, of a project assisted under section 236. (b) The mortgagor must comply with the financial reporting req
15、uirements in 24 CFR part 5, subpart H. (c) Savings provision. Any mortgage approved by the Commissioner for in-surance pursuant to sections 236(j) or 236(n) of the National Housing Act is governed by subpart A of this part as in effect immediately before May 1, 1996, contained in the April 1, 1995 e
16、dition of 24 CFR, parts 220 to 499, and by sub-parts B through E of this part, except as otherwise provided in this subpart. 61 FR 14407, Apr. 1, 1996, as amended at 63 FR 46592, Sept. 1, 1998; 65 FR 61074, Oct. 13, 2000 236.2 Increased distributions to cer-tain limited distribution mortga-gors. (a)
17、 Increased distributions. The Com-missioner may permit increased dis-tributions of surplus cash in excess of the amounts otherwise permitted by subpart A of this part to limited dis-tribution mortgagors who participate in a HUD-approved initiative or pro-gram to preserve below-market hous-ing stock.
18、 The increased distributions will be limited to a maximum amount based on market rents and calculated according to HUD instructions. Funds that the mortgagor is authorized to re-tain under section 236(g)(2) of the Na-tional Housing Act are not considered distributions to the mortgagor. (b) Pre-empti
19、on. Any State or local law or regulation that restricts dis-tributions to an amount lower than permitted by subpart A of this part as in effect immediately before May 1, 1996, contained in the April 1, 1995 edi-tion of 24 CFR, parts 220 to 499, or per-mitted by the Commissioner under this section is
20、 preempted to the extent pro-vided by section 524(f) of the Multi-family Assisted Housing Reform and Affordability Act of 1997. 65 FR 61074, Oct. 13, 2000 236.3 Annual income exclusions. The exclusions to annual income de-scribed in 24 CFR 5.609(c) apply to those program participants governed by the
21、 regulations at subpart A of 24 CFR part 236 in effect immediately be-fore May 1, 1996 (contained in the April 1, 1995 edition of 24 CFR, parts 220 to 499), in lieu of the annual income exclu-sions described in 236.3(c) (contained in the April 1, 1995 edition of 24 CFR, parts 220 to 499). 61 FR 5450
22、3, Oct. 18, 1996 236.60 Excess Income. (a) Definition. Excess Income consists of cash collected as rent from the resi-dents by the mortgagor, on a unit-by- unit basis, that is in excess of the HUD-approved unassisted Basic Rent. The unit-by-unit requirement neces-sitates that, if a unit has Excess I
23、n-come, the Excess Income must be re-turned to HUD. It is not permissible to do an aggregate calculation of the Ex-cess Income for all occupied rent-pay-ing units, and then to offset or subtract from that figure any unpaid rent from occupied or vacant units, before remit-ting Excess Income to HUD. (
24、b) General requirement to return Ex-cess Income. Except as otherwise pro-vided in this section, or as agreed to by HUD pursuant to a plan of action ap-proved under 24 CFR part 248 or in con-nection with an adjustment of contract rents under section 8 of the United States Housing Act of 1937 Act (193
25、7 Act) (42 U.S.C. 1437f), the mortgagor shall agree to pay monthly to HUD the total of all Excess Income in accord-ance with procedures prescribed by HUD. (c) Retention of Excess Income for project use(1) Eligible mortgagors. Any mortgagor of a project receiving Sec-tion 236 interest reduction payme
26、nts may apply to retain Excess Income for project use unless the mortgagor owes VerDate Mar2010 10:21 May 10, 2011 Jkt 223078 PO 00000 Frm 00381 Fmt 8010 Sfmt 8010 Y:SGML223078.XXX 223078WReier-Aviles on DSKGBLS3C1PROD with CFRProvided by IHSNot for ResaleNo reproduction or networking permitted with
27、out license from IHS-,-,-372 24 CFR Ch. II (4111 Edition) 236.60 prior Excess Income and is not current in payments under a HUD-approved Workout or Repayment Agreement. (2) Eligible uses. Excess Income re-tained by a mortgagor for project use may be used for any necessary and rea-sonable operating e
28、xpense of the project. Examples of necessary and rea-sonable operating expenses are: (i) Project operating shortfalls, in-cluding repair costs; (ii) Repair costs identified in the Comprehensive Needs Assessment, in-cluding increasing deposits to the Re-serve Fund for Replacements to a limit necessar
29、y to adequately fund the re-serve; (iii) Service coordinators; (iv) Neighborhood networks located at the project for project residents; and (v) Enhanced supportive services for the residents. (3) Request for approval to retain Excess Income. A mortgagor must submit a written request to retain Excess
30、 In-come for project use to the local HUD Field Office. The request must de-scribe: (i) The amount or percentage of Ex-cess Income requested; (ii) The period from which Excess In-come is being requested; and (iii) The proposed use of the re-quested Excess Income. (d) Retention of Excess Income for n
31、on- project use(1) Eligible mortgagors. Any mortgagor of a project receiving Sec-tion 236 interest reduction payments may apply to retain Excess Income for non-project use unless the mortgagor owes prior Excess Income and is not current in payments under a HUD-ap-proved Workout or Repayment Agree-me
32、nt or the mortgagor falls within any of the following categories: (i) The mortgagors Reserve for Re-placement is not fully funded; (ii) The mortgagors project is not well maintained housing in good condi-tion, as evidenced by: (A) Failure to maintain the project in decent, safe, and sanitary conditi
33、on and in good repair in accordance with HUDs Uniform Physical Condition Standards and Inspection Require-ments in 24 CFR part 5, subpart G; (B) A score below 60 on the physical inspection conducted by HUDs Real Estate Assessment Center (REAC); (C) The existence of uncorrected Exi-gent Health and Sa
34、fety (EHS) defi-ciencies identified by REAC; or (D) A Comprehensive Needs Assess-ment that finds there are significant repair or maintenance needs, and those repair or maintenance needs are still outstanding; (iii) The mortgagor has engaged in any one of the following material ad-verse financial or
35、managerial actions or omissions: (A) Materially violating any federal, state, or local law or regulation with regard to the project or any other fed-erally assisted project, including any applicable civil rights law or regula-tion, after receipt of notice and an op-portunity to cure; (B) Materially
36、breaching a contract for assistance under section 8 of the 1937 Act, after receipt of notice and an opportunity to cure; (C) Materially violating any applica-ble regulatory or other agreement with HUD or a participating administrative entity, after receipt of notice and an opportunity to cure; (D) R
37、epeatedly and materially vio-lating any federal, state, or local law or regulation, including any applicable civil rights law or regulation, with re-gard to the project or any other feder-ally assisted project; (E) Repeatedly and materially breaching a contract for assistance under section 8 of the
38、1937 Act; (F) Repeatedly and materially vio-lating any applicable regulatory or other agreement with HUD or a par-ticipating administrative entity, in-cluding failure to submit audited fi-nancial statements or required tenant data; (G) Repeatedly failing to make mort-gage payments at times when proj
39、ect income was sufficient to maintain and operate the project; (H) Materially failing to maintain the project in decent, safe, and sani-tary condition and in good repair after receipt of notice and a reasonable op-portunity to cure; or (I) Committing any actions or omis-sions that would warrant susp
40、ension or debarment by HUD. (2) Eligible uses. Excess Income re-tained by a mortgagor for non-project VerDate Mar2010 10:21 May 10, 2011 Jkt 223078 PO 00000 Frm 00382 Fmt 8010 Sfmt 8010 Y:SGML223078.XXX 223078WReier-Aviles on DSKGBLS3C1PROD with CFRProvided by IHSNot for ResaleNo reproduction or net
41、working permitted without license from IHS-,-,-373 Office of Assistant Secretary for Housing, HUD 236.60 use may be used for any purpose, ex-cept that the non-project use of Excess Income by a nonprofit entity mort-gagor is limited to activities that carry out the entitys nonprofit purpose. (3) Requ
42、est for approval to retain Excess Income. A mortgagor must submit a written request to retain Excess In-come for non-project use to the local HUD Field Office. The request must de-scribe: (i) The amount or percentage of Ex-cess Income requested; and (ii) The period from which Excess In-come is being
43、 requested. (e) Timing of request to retain Excess Income(1) In general. Except as pro-vided in paragraph (e)(2) of this sec-tion, a mortgagor must submit a re-quest to retain Excess Income at least 90 days before the beginning of each fis-cal year before any other date during a fiscal year that the
44、 mortgagor plans to begin retaining Excess Income for that fiscal year. (2) Specific ongoing purpose. A mort-gagor requesting approval to retain Ex-cess Income for a specific, ongoing pur-pose where the purpose extends beyond the current fiscal year may submit a request that describes the proposed u
45、se of Excess Income and advises that the intended use will extend beyond the current fiscal year. If HUD approves the request, following review of the re-quest in accordance with paragraph (f) of this section, the mortgagor will not be required to submit a new request each fiscal year provided the u
46、se of Ex-cess Income remains the same. The mortgagor will still be required to sub-mit the Monthly Report of Excess In-come and the end of year narrative under paragraph (g) of this section. If the use of Excess Income changes, the mortgagor must notify HUD of the change and submit a new request to
47、re-tain Excess Income 90 days prior to the date the mortgagor intends to begin re-taining Excess Income for the new pur-pose. (f) HUD review and response procedure. HUD will review a mortgagors request to retain Excess Income and issue a letter of approval or denial as follows: (1) Approval letter.
48、The approval letter from HUD permitting the mortgagor to retain Excess Income must, at a min-imum, assert: (i) Retention rights are for the time specified in the approval letter, but cannot extend beyond the current fis-cal year except as provided in para-graph (e)(2) of this section; (ii) Failure o
49、f the mortgagor to maintain the Reserve for Replacement account in a fully funded amount at all times is grounds for HUD to rescind the approval; (iii) Failure of the mortgagor to maintain the project in a decent, safe, and sanitary condition and in good re-pair at all times is grounds for HUD to rescind the approval; (iv) If the Excess Income requested for project use is not used for the pro-posed purpose described in the mortga-gors request, th
