HUD/FHA's Single Family Nonprofit Program:
If you are interested in becoming approved to participate in HUD/FHA Single Family Housing Programs
for HUD-approved nonprofits, please visit HUD's website at www.hud.gov and select information for "Grantees/Nonprofits". There is a page on that site
that informs you how to become approved to do one or all of the following:
1. Act as a mortgagor using FHA mortgage insurance; (that means the
nonprofit would receive the same qualifications on an FHA loan with the same terms as an owner-occupant)
2. Purchase the Department's Real Estate Owned (HUD Homes) at
a discount of 10% or more;
3.
Provide Secondary Financing/Down Payment Assistance (HUD/FHA does not supply organizations with funds for this program; rather
if approved by HUD, the nonprofit would be able to issue a secondary lien for Down Payment Assistance - like a "soft
second" that is forgivable after a specified period of time).
Attached
for your review is Mortgagee Letter (ML) 2002-01. This is the primary ML that governs the FHA Single Family Program
for Nonprofits. Also provided is Attachment 1: The Application and Attachment 2: The Affordable Housing Plan (this document
does not need to be submitted for Secondary Financing/Down Payment Assistance applicants). I hope this information is
helpful.
Also click on the link to review
the Frequently Asked Questions (FAQs) document regarding HUD/FHA's Nonprofit Program: http://www.hud.gov/offices/hsg/sfh/np/faqs_np.cfm
Once you've had the chance to review
the guidelines concerning the Single Family Nonprofit Program, send an email so that your agency can make an application to
apply for approval for participation to HUD/FHA Single Family programs. The e-mail must also include the following
information: your organization's legal name, address, and executive director's name and contact information (phone
number, fax number and e-mail address). Additionally the e-mail should indicate whether the organization
is a nonprofit or instrumentality of government, the date of your organization's 501 (C)(3) determination letter and whether
your organization itself(not staff members) has a minimum of two years, within the last five years,
of housing development experience. Housing development experience is defined as acquisition, rehabilitation, and sale to low-to-moderate
income persons. In order to meet the minimum requirements, your organization's 501©(3) must be at least
two years old at the application submittal date. Also, your organization must possess a minimum of two years,
within the last five years, of housing development experience. This e-mail should be sent to:
Jeanette M. Lambert
Jeanette.M.Lambert@hud.gov
US Dept. of Housing and Urban Development
Atlanta
Homeownership Center
Program Support Division
404/331-5001 ext.
2544
This section includes information
on how to submit your application-
To Prospective NP applicant:
Thank
you for expressing an interest in becoming approved by HUD to participate in the Federal Housing Administration's Nonprofit
programs.
The Nonprofit Data Management system
used for the electronic submission of applications is not fully operational at this time.
As a result, we are requesting that applicants submit their applications via email.
To become familiar with the application process and documentation requirements, please read Mortgagee
Letters 2000-08 and 2002-01 and their attachments. You'll find Mortgagee Letters by clicking the following link:
http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/index.cfm
The
items required to be included in the application are delineated in the "Nonprofit Approval Checklist" which may
be found in Attachment 1 and Attachment 2 of Mortgagee Letter 2002-01. Attachment 1 specifies which of those items must
be submitted, depending on whether you are applying for approval to act as a mortgagor using FHA mortgage insurance, purchase
HUD homes at a discount, or provide secondary financing.
You
will need to assemble the information required in the checklist(s) and save each checklist item as a separate document.
Save the document using the following filenames, which correspond to the list of items delineated in Mortgagee Letter 2002-01,
Attachment 1:
1. IRS Letter - File Name: IRSLetterwithCert
2.
Articles of Organization - File Name: ArticlesIncorpwithCert
3. Voluntary Board of
Directors - File Name: VoluntaryBoardCert
4. Board Members - File Name: BoardMembers
5. Staff List - File Name: StaffListwithResumes
6. EIN/SSNs
- File Name: EINSSN
7. Loan Signature Authority - File Name: SignatoryAuthority
8. Administrative Capability - File Name: AdminCapQCPlan
9.
Financial Capability - File name: FinancialCap
10. Other Partners - File Name: Partners
11. Acting on Own Behalf - File Name: ActingOwnBehalfCert
12.
HUD Approval Letter - File Name: ApprovLtr
13. Affordable Housing Program - AHP
(Special Note: The Affordable Housing Program should be emailed as one document
The
Affordable Housing Program narrative must address all items in the order they appear in Mortgagee Letter 02-01, Attachment
2.)
14. Board Approval of Plan - File Name: AHPApprov
15.
Past FHA Performance - File Name: PastPerformance
16. Two Year Experience - File Name:
AgencyExperience
17. Lending Institutions - File Name: Lender
18.
Mortgage/Note Copies - File Name: MtgeNote
19. W-9, SAMS-1111 - File Name: W9SAMS1111
20. Photos and Floor Plans - File Name: PhotosFloorPlan
21.
Lease Forms - File Name: LeaseForms
Application Certification - File Name: ApplicationCert
Recertification Requirements - File Name: RecertReq
When creating the documents for your application, do not save documents as JPEG files or put special
characters such as #,* etc. in the file name. Please use standard file types such as PDF, WORD, and EXCEL files.
Once your application is completed and ready for submission,
please email it back to Jeanette.M.Lambert@hud.gov within 30 days of this notification. Depending on the file size of your checklist items, you may need to
submit your application in multiple emails, however please submit all application documents at the same time (not separately
when each item is completed). Also, please try and consolidate as many application documents as possible into each email.
If you have questions during the application process,
please call or email me.
If
you're interested in purchasing a HUD Home directly, HUD approval is not required. You can purchase a HUD Home as
an investor directly online at www.hud.gov and select "Homes for Sale". You would not receive a discount on the property like that of a HUD-approved
nonprofit. Instead, you would be purchasing the home outright from HUD. Please keep in mind that the properties
are sold "as-is" so it is important to get an inspection of the property prior to placing a bid.
If you should have additional questions, please call or email me.
Please feel free to visit the link provided below to view
HUD homes for sale in your area:
http://www.hud.gov/offices/hsg/sfh/reo/reobuyfaq.cfm
or http://www.hud.gov/homes/index.cfm
Thanks
for your interest in HUD/FHA Programs.
Jeanette M.
Lambert
Housing Program Specialist
Atlanta
Homeownership Center
Program Support Division
U.S.
Dept of Housing and Development
404/331-5001, ext. 2544
Fax 404/331-4016
Jeanette.M.Lambert@hud.gov
"FHA:Your Door to Homeownership!"
Since its inception in 1934, FHA has helped over 33 million families become homeowners. For additional information, dial 1-800-CALL
FHA.