|Program (?)||Section 221d(3) and Section 221d(4) Mortgage Insurance|
|Alternative Name(s)||Section 221d(3) BMIR; Section 221d(4)|
Section 221d(3) of the Housing Act of 1961 consisted of a below-market interest rate program which is no longer active, Section 221d(3) BMIR, as well as an active mortgage insurance program, which is described here. The Section 221(d)(3) program insures mortgage loans in order to facilitate the new construction or rehabilitation of multi-family rental, cooperative housing, or SROs for moderate-income households, the elderly, and people with disabilities. The program allows for long-term mortgages of 40 years to be financed with GNMA Mortgage Backed Securities, but has per-unit mortgage limits which vary according to the size of the unit, the type of structure, and the location of the project. Insured mortgages may be used to finance detached, semi-detached, row, walkup, or elevator-type housing containing five or more units. Non-profit sponsors or cooperatives may receive an insured mortgage of up to 100 percent of HUD/FHA estimated replacement cost of the project. All households are eligible to occupy dwellings in a structure whose mortgage is insured under this program. Section 221(d)(3) mortgage-insured projects have no income limits and projects may be designed specifically for the elderly or handicapped.
The National Housing Act of 1961 also authorized a program known as Section 221d(4). Non-profits accessed Section 221(d)(3), while for-profit developers used Section 221(d)(4).The difference between 221d(3) and 221d(4) is the financing amount: non-profit mortgagors are able to obtain 100 percent financing under 221d(3), while any type of developer is able to receive 90 percent financing under 221d(4).
|Related Programs||Section 221d(3) BMIR|
|Benefit Classification (?)|
|Supply or Demand||Supply|
|One-Time or Ongoing||One-Time|
|Benefit Type (?)||Financing|
|Government Agency (?)||US Dept of Housing and Urban Development|
|Program Information (?)|
|Scale||Very Large Scale (over 10,000 units produced)|
|Developer/Owners (?)||For-Profit, Non-Profit|
|Property Information (?)|
|Property Type||Land, Building|
|Construction Type||Rehabilitation, New Construction|
|Occupant Tenure (?)||Rental, Homeownership|
|Occupant Income Restrictions (?)||No Restrictions|
|More Information||US HUD|
|Available on CoreData.nyc?||Yes|
|Last Updated||June 2018|
|Data Source||U.S. Department of Housing and Urban Development|
Data from U.S. Department of Housing and Urban Development accessed February 2018.