[Code of Federal Regulations]

[Title 24, Volume 2]

[Revised as of April 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR203.29]



[Page 161]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

 CHAPTER II--OFFICE OF ASSISTANT SECRETARY FOR HOUSING--FEDERAL HOUSING 

        COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 203_SINGLE FAMILY MORTGAGE INSURANCE--Table of Contents

 

     Subpart A_Eligibility Requirements and Underwriting Procedures

 

Sec.  203.29  Eligible mortgages in Alaska, Guam, Hawaii, or the Virgin 

Islands.



    (a) When is an increased mortgage limit permitted for these areas? 

For Alaska, Guam, Hawaii or the Virgin Islands, the Commissioner may 

increase the maximum mortgage amount permitted by section 203(b)(2)(A) 

of the National Housing Act when authorized by section 214 of that Act, 

through the procedures described in Sec.  203.18(h).

    (b) If a party believes that the otherwise applicable mortgage limit 

needs to be increased to reflect the extent to which high costs make it 

infeasible to construct dwellings without sacrificing sound standards of 

construction, design or livability, the party may submit documentation 

in support of an alternative mortgage limit. This documentation should 

include actual or estimated costs of such items as design, construction, 

materials, and labor. In addition, actual sales prices of new homes may 

be submitted, together with any other documentation requested by the 

Commissioner. Requests for alternative mortgage limits, together with 

supporting documentation should be sent to the appropriate HUD field 

office. The field office will forward the request and supporting 

material, with the field office's recommendation, to the Commissioner 

for determination.

    (c) If the Alaska Housing Authority, or the Government of Guam, 

Hawaii, or the Virgin Islands or any agency or instrumentality of those 

entities, is the mortgagor or the mortgagee, or the mortgagor is 

regulated or restricted as to rents or sales, charges, capital 

structure, rate of return, and methods of operation to such an extent 

and in such manner as the Commissioner determines advisable to provide 

reasonable rental and sales prices and a reasonable return on the 

investment, any mortgage otherwise eligible for insurance under this 

subpart may be insured:

    (1) In any case where the Alaska Housing Authority, or the 

government of Guam, Hawaii, the Virgin Islands, or any agency or 

instrumentality of those entities, is the mortgagor, without regard to 

any requirement that the mortgagor occupy the dwelling as a principal 

residence or a secondary residence (as these terms are defined in Sec.  

203.18(f)), or meet loan-to-value or comparable limitations based on the 

failure of the mortgagor to meet this occupancy requirement;

    (2) Without regard to any requirement that the mortgagor has paid on 

account of the property a prescribed percentage of the appraised value 

of the property; or

    (3) Without regard to any requirement that the mortgagor certify 

that the mortgaged property is free and clear of all liens other than 

the mortgage offered for insurance and that there will not be any unpaid 

obligations contracted in connection with the mortgage transaction or 

the purchase of the mortgaged property.

    (d) The provisions of Sec.  203.28 requiring economic soundness 

shall not be applicable to mortgages covering property located in 

Alaska, in Guam, in Hawaii, or in the Virgin Islands, but the 

Commissioner shall find that the property or project is an acceptable 

risk, giving consideration to the acute housing shortage in Alaska, 

Guam, Hawaii, or the Virgin Islands.



(Approved by the Office of Management and Budget under control number 

2502-0302)



[36 FR 24508, Dec. 22, 1971, as amended at 49 FR 14338, Apr. 11, 1984; 

55 FR 34804, Aug. 24, 1990; 56 FR 18948, Apr. 24, 1991; 64 FR 14569, 

Mar. 25, 1999]