NITED STATES OF AMERICA Gift 9-21-56 RENTAL HOUSING MANUAL INTRODUCTION The Rental Housing Manual presents the techniques and principles established by the Federal Housing Administrator through the Rental Housing Division in effectuating the intent of Congress as set forth in the National Housing Act and in particular the provisions of Section 207 of the Act except those dealing with so-called release clause projects designed primarily for sale. Section 207 of the National Housing Act as amended authorizes the insurance of mortgages not in excess of 5 million dollars each on privately constructed and financed rental housing projects. All projects involving mortgage amounts of $100,000 or less will be known as "SMALL SCALE" and projects involving morgtage amounts in excess of $100,000 will be known as "LARGE SCALE." Each mortgage is fully amortized during its term and bears interest at a rate not in excess of 4% per annum for large scale projects and 4%% for small scale projects. The owner corporation is regulated by the Administrator as to capital structure, charges, rents, rate of return and methods of operation. In addition to compliance with the provisions of Section 207, the Administrator must find prior to insurance that the property or project with respect to which the mortgage is executed is economically sound. A further duty stated in the preamble of the Act is to encourage improvement in housing standards and conditions. The primary objective of the Rental Housing Division program is to encourage, through a system of mortgage insurance, the construction of privately financed rental housing developments for the large group of people in the moderate income classification who, through choice or necessity, live in rented living quarters and who are both willing and able to pay rent commensurate with their income for adequate living accommodations. Accordingly, through exhaustive analysis of projects, together with careful and advanced planning to include the most desirable principles in both the physical and financial structure, this Administration endeavors to meet a dual objective of (1) compliance with the intent of Congress in providing insurance of mortgages on rental housing, including determination of the economic soundness of each individual project and the improvement of housing standards and conditions, and (2) encouraging the construction of properly planned and maintained rental quarters at relatively low rentals for wage earning and salaried families. The Rental Housing Manual codifies and elaborates the general principles and techniques of appraisal, architecture, and cost estimation adopted by this Administration as the means to accomplish its dual objective. From time to time as experience, the accumulation of data and development of principles, theories and procedures necessitates, revisions and additions will be made. In view of the number and complexity of problems involved, the right is specifically reserved to the Administrator and the Assistant Administrator in charge of Rental Housing, to vary, in the processing of individual projects, the procedure and requirements hereinafter prescribed. Members of the staff of the Federal Housing Administration must be mindful at all times of the extremely confidential nature of their work. Accordingly, all exhibits, data, and correspondence regarding projects, all actions and determinations of the Rental Housing Division during initial, preliminary and final examination or subsequent to commitment, or during and after construction, or in connection with management supervision, must be held in strictest confidence and must not be divulged to any persons unless actively engaged in the processing of such projects or in positions of administrative authority in the Rental Housing Division. The size, character, location and sponsorship of a proposed project shall not be revealed except upon specific authorization from or public announcement by the sponsors of such project. These instructions may be waived only for the benefit of the mortgagee or the sponsors of a particular project and then only in connection with such project. PART II-PROCEDURE PRIOR TO COMMITMENT: 2101-2199 Section 2. Analysis of Sponsorship 2201-2299 Section 3. Collection of Appraisal Data and Project Informa- 2301-2399 Section 4. Architectural Procedure 2401-2499 Section 5. Procedure for Estimating Project Construction Costs 2501-2599 2601-2699 PART III-PROCEDURE SUBSEQUENT TO COMMITMENT: 3101-3199 Section 2. Cost Estimation Procedure 3201-3299 3301-3399 |