Laws and Regulations

§ 235.1236

24 CFR Ch. II (4–1–04 Edition)

such period as the Secretary determines to be appropriate.
[57 FR 62453, Dec. 30, 1992. Redesignated at 60
FR 56499, Nov. 8, 1995]

§ 235.1236 Recapture of assistance payments.
The mortgagor shall execute an
agreement subordinating the recapture
mortgage, if any, to the section 235(r)
mortgage. The mortgagor shall also
execute a new note for recapture of assistance payments, and amend the recapture mortgage to include in the
principal balance the assistance payments made in connection with the
mortgage insured under section 235(r).
[57 FR 62453, Dec. 30, 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 mortgages insured under section 235(r).
[57 FR 62453, Dec. 30, 1992. Redesignated at 60
FR 56499, Nov. 8, 1995]

PART 236—MORTGAGE INSURANCE AND INTEREST REDUCTION
PAYMENT
FOR
RENTAL
PROJECTS

236.505
236.510
236.515
236.520
236.525
236.530
236.535
236.599

Eligible mortgages.
Term of payments.
Time of payments.
Amount of payments.
Application of payments.
Mortgagee records.
Effect of assignment of mortgage.
Effect of amendments.

Subpart D—Rental 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 applicable 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 owner’s obligation under
contract to report tenant income increase.
236.760 Change in tenant income status.
236.765 Determination of eligible immigration status of applicants and tenants;
protection from liability.

Subpart E—Audits
236.901

Audit.

Subpart F—Uniform Relocation Assistance
236.1001 Displacement, relocation, and acquisition.

Subpart A—Eligibility Requirements for
Mortgage Insurance

AUTHORITY: 12 U.S.C. 1715b and 1715z–1; 42
U.S.C. 3535(d).

Sec.
236.1 Applicability, cross-reference and savings clause.
236.2 Increased distributions to certain limited distribution mortgagors.
236.3 Annual income exclusions.

SOURCE: 36 FR 24643, Dec. 22, 1971, unless
otherwise noted.

Subpart B—Contract Rights and
Obligations for Mortgage Insurance
236.251 Cross-reference.
236.252 First, second, and third mortgage insurance premiums.
236.253 Premiums—operating loss loans.
236.254 Termination of mortgage insurance.
236.255 Forbearance relief.
236.260 Request by Commissioner for assignment of mortgage.
236.265 Payment of insurance benefits.

Subpart C—Interest Reduction Payments
236.501 Interest reduction payments contract.

Subpart
A—Eligibility
Requirements for Mortgage Insurance
§ 236.1 Applicability, cross-reference,
and savings clause.
(a) Applicability. This section implements the eligibility requirements for
mortgage insurance under the Rental
and Cooperative Housing For Lower Income Families Program contained in
section 236 of the National Housing Act
(12 U.S.C. 1701), as amended. The program authorized the Secretary to insure mortgages to support new construction or rehabilitation of real property to be used primarily for residential rental purposes. A moratorium

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Office of Assistant Secretary for Housing, HUD
against issuance of commitments to insure new mortgages under section 236
was imposed January 5, 1973. Section
236(n) prohibits the insurance of mortgages under section 236 after November
30, 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 association, of a project assisted under section
236.
(b) The mortgagor must comply with
the financial reporting requirements in
24 CFR part 5, subpart H.
(c) Savings provision. Any mortgage
approved by the Commissioner for insurance 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 edition of
24 CFR, parts 220 to 499, and by subparts 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 certain limited distribution mortgagors.
(a) Increased distributions. The Commissioner may permit increased distributions of surplus cash in excess of
the amounts otherwise permitted by
subpart A of this part to limited distribution mortgagors who participate
in a HUD-approved initiative or program to preserve below-market housing stock. 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 retain under section 236(g)(2) of the National Housing Act are not considered
distributions to the mortgagor.
(b) Pre-emption. Any State or local
law or regulation that restricts distributions 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 edition of 24 CFR, parts 220 to 499, or permitted by the Commissioner under this
section is preempted to the extent provided by section 524(f) of the Multi-

§ 236.252

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 described in 24 CFR 5.609(c) apply to
those program participants governed
by the regulations at subpart A of 24
CFR part 236 in effect immediately before May 1, 1996 (contained in the April
1, 1995 edition of 24 CFR, parts 220 to
499), in lieu of the annual income exclusions described in 236.3(c) (contained in
the April 1, 1995 edition of 24 CFR,
parts 220 to 499).
[61 FR 54503, Oct. 18, 1996]

Subpart B—Contract Rights and
Obligations for Mortgage Insurance
§ 236.251

Cross-reference.

All of the provisions of subpart B,
part 207 of this chapter covering mortgages insured under section 207 of the
National Housing Act, apply with full
force and effect to mortgages insured
under section 236 of the National Housing Act except the following provisions:
Sec.
207.252 First, second, and third premiums.
207.252a Premiums—operating loss loans.
207.259 Insurance benefits.
207.262 No vested right in fund.
[37 FR 8664, Apr. 29, 1972, as amended at 42
FR 59675, Nov. 18, 1977]

§ 236.252 First, second, and third mortgage insurance premiums.
All of the provisions of § 207.252 of
this chapter governing the first, second, and third mortgage insurance premiums shall apply to mortgages insured under this subpart, except:
(a) Where an application for a loan
under section 202 of the Housing Act of
1959 has been filed previously in connection with the project, but it is being
financed with a mortgage insured
under this part because funds are not
available to make the section 202 loan,
the mortgage insurance premium due
and payable between the dates of initial and final insurance endorsement
shall be at the rate of one-fourth of one

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