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Kevin
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Joined: 13 Apr 2004
Posts: 1349
Location: Eugene, Oregon
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 Posted: Tue Oct 13, 2009 1:32 pm Post subject: Architects doing FHA 203(k) remodelings? |
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The Federal Housing Administration 203(k) Loan Program is a special government-backed lending program designed to support the combined purchase and remodeling cost of houses needing rehabilitation.
The loan, effectively a combined primary mortgage and home equity loan with government guarantee, is based on the prospective value of the dwelling after remodeling.
The program can help finance a wide variety of small housing projects, up to around $800,000 total in high-cost areas.
| FHA wrote: | To qualify for the program, properties must be one- to four-family dwellings that have been completed for at least one year.
The program can be used to convert a single-family unit into a two-, three-, or four-family dwelling or convert a multidwelling building into a single-family home, as long as the borrower intends to be an owner-occupant. Any newly constructed units must be attached to the existing dwellings.
Demolished homes are eligible as long as part of the existing foundation remains intact. The number of units must comply with local zoning.
Mixed- use properties qualify as long as no greater than 25 percent (for a one-story unit); 33 percent (for a two-story building); or 49 percent (for a three-story building) of floor space is designated for commercial use. For these properties, rehabilitation funds must be used exclusively for the residential portion of the unit or for accessing the residential space.
Cooperative units are ineligible, but condominium units, with some restrictions, qualify. |
http://www.occ.treas.gov/cdd/203k_Loan%20Program_Insights_Jul09.pdf
We're interested in any architects or other forum participants who have worked on a 203(k) remodeling project, or who have looked into putting one together.
With the foreclosure flood putting many distress properties onto the market - in addition to the general ongoing social and environmental benefits of rehabilitation - it seems like the entrepreneurial architect, working with the right broker and builder, might be able to help put together some rewarding projects through this program.
In addition to forum discussion, we're considering this for feature coverage in the mag. Please drop us a note at "editor@architectureweek.com" to suggest any relevant projects we might want to highlight. |
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