As of December 31, 1965, FHA had insured mortgages amounting to about $213.4 million for 364 projects under section 232. Of the 364 projects, 36 or 10 percent, with mortgages totaling $27.7 million-or 13 percent of the mortgage amounts-were in some type of financial difficulty. As of December 31, 1964, FHA had insured mortgages amounting to about $169 million for 295 projects, of which 18 or about 6 percent, with mortgages of about $11.8 million, were in some type of financial difficulty. FHA reports showed that, as of December 31, 1965, the section 232 program was in a deficit position. These reports showed that all income attributable to this program from inception through December 31, 1965, amounted to about $4.6 million; whereas expenses amounted to about $10.9 million, or a deficit of about $6.3 million. Included in the appendixes is a schedule showing information similar to that presented in this report for all the multifamily programs as of December 31, 1965. All information presented in this report was obtained from FHA statistical, financial, and other reports and records without verification by us. [Appendix I] DESCRIPTION OF INSURING PROGRAMS AND SUMMARY OF STATISTICS FOR MULTIFAMILY HOUSING PROGRAMS ACTIVE PROGRAMS Section 207 This program is considered by FHA to be its basic multifamily rental-housing program. The insuring of mortgages under this section is intended to facilitate the production of rental accommodations of a design and size suitable for family living at reasonable rents. Projects may be either new construction or rehabilitated structures. Section 213 This section, authorized by the Housing Act of 1950, provides for insurance of long-term mortgages on cooperative housing projects. There are two basic types of cooperative housing projects: management type and investor-sponsor type. In the management-type project, a nonprofit cooperative corporation owns the project and each member of the cooperative has the right to occupy a unit in the project. The project is not built until a specified number of units have been sold. The investor-sponsored-type project is developed by a profit corporation which has certified that it intends to sell the project to an acceptable management-type cooperative within 2 years after completion. Section 220 Under this program, authorized by the Housing Act of 1954, insurance is available for mortgages on properties located within urban renewal areas certified to the FHA by the Secretary of Housing and Urban Development. Section 221 This program, authorized by the Housing Act of 1954, is designed to assist in providing multifamily housing units for low- and moderate-income families. The insured mortgages can be either at or below the market interest rate. In the below-market interest rate program, the Federal National Mortgage Association purchases the mortgage after final endorsement by FHA. FHA considers these as separate programs. Section 231 This section was authorized by the Housing Act of 1959 to assist in relieving the shortage of housing for elderly persons and increasing their supply of rental housing. Auxiliary facilities, such as central dining rooms, hobby rooms, and infirmary rooms, for the use of occupants are permitted in section 231 projects. At least 50 percent of the dwelling units in a section 231 projects are required to be specially designed for the use of and occupancy by elderly persons. Section 232 The purpose of this program, authorized by the Housing Act of 1959, is to assist in providing needed nursing homes for the care and treatment of convalescents and other persons who are not seriously ill and do not need hospital care but require skilled nursing care and related medical services. Homes may be either new construction or rehabilitated structures. Section 233 Under this experimental housing program, authorized by the Housing Act of 1961, FHA insures mortgages on home and mulifamily properties that incorporate new or untried construction concepts aimed at reducing housing costs, raising living standards, and improving neighborhood design. Section 234 This section, authorized by the Housing Act of 1961, enables FHA to insure mortgages on condominiums. In condominium ownership a person owns, separately, one or more single-dwelling units in a multiple-unit apartment project and has an undivided interest with the owners of the other apartments in common areas and facilities serving the project. This differs from cooperative housing, in which a person generally owns stock in the project and has an apartment assigned to him but does not own the apartment. Section 701 This section, authorized in 1948, was designed to encourage equity investments in rental housing for moderate-income families, where no mortgage financing was involved. Under this program, FHA was authorized to insure a minimum annual amortization charge and an annual return on the outstanding investment. However, no insurance has been written under this program to date. Section 810 This program, authorized by the Housing Act of 1951, is designed to provide a program of FHA insurance for privately financed housing for military personnel stationed, and essential civilian personnel employed, at an installation of one of the armed services, including the Coast Guard, the National Aeronautics and Space Administration, or the Atomic Energy Commission. Employees of contractors of such agencies are included in and entitled to the benefit of this program. The section 810 program is intended to be utilized in areas where the impact of military or defense installations creates a substantial demand which may not be permanent but which exceeds that created by normal economic growth. Section 210 INACTIVE PROGRAMS This section, which was in existence from February 1938 to June 1939, insured projects with the same physical characteristics as those insured under the section 207 program. The differences were in the maximum insurable mortgage, the maximum mortgage per room attributable to dwelling use, and the maximum period of amortization permitted. Section 608 This section was authorized in May 1942 to assist in relieving the acute shortage of housing which existed at that time. The section 608 program was revised in 1946 as part of the Veterans' Emergency Housing Program and subsequently became FHA's largest multifamily program. It expired in August 1954. FHA considers the latter program as a separate program. Section 609 The purpose of this section, in existence from June 1947 to August 1954, was to insure short-term loans to finance prefabricated housing for veterans of World War II. Section 610 The purpose of this section, in existence from August 1947 to August 1954, was to insure mortgages executed in connection with the sale by the Public Housing Administration, or by any public housing agency approved by PHA, of any housing owned or financially assisted pursuant to the provisions of Public Law 671, Seventy-sixth Congress. Section 803 This section, for housing commonly referred to as Capehart-Wherry housing, was available for insurance of mortgages from August 1949 to October 1962. The program was designed to assist in relieving the acute shortage and urgent need for family housing which existed at or in areas adjacent to military installations and to increase the supply of necessary family housing accommodations for personnel at such installations. FHA considers the Capehart and Wherry pro grams as separate programs. Section 908 The purpose of this section, in existence from September 1951 to August 1955, was to supplement systems of mortgage insurance under other provisions of the National Housing Act to provide adequate housing in critical defense housing areas, with preference to eligible defense workers. SUMMARY OF STATISTICS Multifamily housing projects, active programs, as of Dec. 31, 1965 Multifamily housing projects, active programs, as of Dec. 31, 1965 Includes income and expense for sec. 213 sales-type cooperatives (small homes) as FHA's records do not show financial data for this subprogram separately. |