Link:
Deferral Repayment of Flexible Subsidy Loans
In the past Owners may have been
awarded Flexible Subsidy funding under Flexible Subsidy Operating Assistance
Payments (OAP), and executed a Flexible Subsidy Loan secured by a Flexible
Subsidy Surplus Cash Note. HUD will not
forgive repayment of a Flexible Subsidy Loan under any circumstances.
However, HUD will entertain requests for deferred repayment of loans. A request
for HUD approval of deferred repayment of a Flexible Subsidy Loan must be in a
specific format.
If an
owner desires to use my consulting services for submission of a request for
deferred repayment of a Flexible Subsidy Loan, please contact me and I can
discuss requirements for a request for deferred repayment of a Flexible Subsidy
Loan.
Flexible Subsidy Loan:
Under the Flex Program, HUD
would award approved dollar amount in Flexible Subsidy Operating Assistance
Payments (OAP), under a Financial Assistance Contract, Flexible Subsidy Program.
Once the work under the contract is completed, a Flexible Subsidy Residual
Receipts Note and Use Agreement would be executed between the owner and HUD.
The owner agrees to continue to operate the Project in according with HUD
Regulatory Agreement until the mortgage term ends or until the end of the term
of the Use Agreement.
The terms of the Flexible Subsidy Residual Receipts Note provides for payment of
principal and interest ONLY from Residual Receipts or non-project funds, and at
any time no later than the maturity of the mortgage. The loan is to be paid
in-full upon a change in ownership (except for non-profit to non-profit owners),
or prepayment of the mortgage. Simple interest accrues at the rate of one
percent per year.
Flexible Subsidy Operating Assistance Payments (OAP) is designed to fund;
·
Corrections of
project deficiencies existing at the beginning of year of assistance caused by
the deferral of regularly scheduled maintenance and repairs or the failure to
make necessary and timely replacements of equipment and other components of the
project.
·
Capital improvement,
only if it is necessary to meet local building codes or to maintain the project
in a decent, safe and sanitary condition and it is determined that OAP is the
most efficient way of funding this improvement;
·
Reserve account and
operating cost deficits;
·
Cost-effective energy
conservation improvements; and
·
Reasonable
alterations needed to make the project accessible to people with handicaps, as
required under Section 504.
Alvin L. Sutherlin
Housing Consultant
Post Office Box 162
Mount Rainier, Maryland 20712-0162
Voice Number: 301-277-3465
alvinl.sutherlin@verizon.net
http://hud-consultant.com/aboutus.htm
http://www.hud-consultant.com
http://hud-consultant.com/References.html
Date Updated:
09/27/2023 03:40:46 AM
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