4510.1

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CHAPTER 9. HOUSING FOR THE ELDERLY,

HANDICAPPED, AND DISPLACED

SECTION 1. NON-CONGREGATE

9-1. GENERAL. This Chapter provides certain feasibility design and

planning criteria for all Section 236 housing projects for the

elderly, handicapped and displaced.

The Elderly Housing Specialist, or the person assigned to this

function in the Regional Office, is to be an important resource

in assisting in the development and processing of housing

designed to serve the elderly and handicapped.

9-2. DEFINITIONS.

a\. Family - two or more persons related by blood, marriage or

operation of law, who occupy the same dwelling unit. A single

person shall constitute a family if such person is elderly,

handicapped, or displaced.

b\. Elderly - a person is elderly if he is 62 years of age or

older.

c\. Elderly Family - a family, the head of which (or his spouse)

is elderly.

d\. Handicapped - a person is handicapped if he has a physical

impairment that:

\(1\) Is expected to be of long-continued and indefinite

duration;

\(2\) Substantially impedes his ability to live independently;

and

\(3\) Is of such a nature that his ability to live independently

could be improved by more suitable housing conditions.

e\. Handicapped Family - a family, the head of which (or his spouse)

is handicapped.

f\. Displaced Family - a person or family displaced as a result

of governmental action or as a result of a major disaster.

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Page 9-1 6/73

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4510.1

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In the case of projects designed for the elderly, occupancy may be

limited to the elderly and preference for displacees may be limited

to elderly displacees. The 10% limitation for single persons in

Section 236 projects does not apply to single elderly and

handicapped persons.

9-3. PROJECT ANALYSIS AND APPRAISAL.

a\. Facilities. Housing designed for the elderly and handicapped

may be multifamily self-contained apartments or congregate

facilities, or a combination of the two. Projects will usually

include features which normally are not found in other

multifamily facilities. These include dining halls, community

rooms, workshops, infirmaries or other inpatient or outpatient

health facilities, and other essential service facilities.

Projects planned exclusively for handicapped persons should be

designed to provide a living environment suitable to the

varying physical conditions of the occupants.

b\. The Cost Per Square Foot of housing designed for the elderly

and handicapped can be expected to be higher than for family

apartments because the apartments are smaller (efficiencies

and one bedroom) and result in a concentration of plumbing,

electrical and/or gas service for kitchens and bathrooms,

which constitute major elements of cost. They may also include

special features such as centrally monitored call systems and

special elevators. The cost will also be affected by the

fact that lounge areas, carpeting and air conditioning are

considered normally acceptable amenities. However, it is

important to hold the total unit cost to that which is

generally found in comparable construction in the area.

9-4. STATUTORY MAXIMUM MORTGAGE AMOUNTS.

a\. Computation of Maximum Insurable Mortgage Amounts for housing

for the elderly and handicapped will be made with reference

to high cost factors for Section 231 rather than those

provided for other Section 236 cases. This procedure will

recognize additional costs incurred in constructing common

facilities referred to above.

b\. The High Cost Factor for profit motivated sponsors is 1.0.

The factor for nonprofit sponsors is 1.111. The instructions

for calculation of high cost percentages are contained in

Reference (14) of the Foreword.

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4510.1

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9-5. COSTS NOT ATTRIBUTABLE TO DWELLING USE.

a\. The Supplemental Estimate for Costs Not Attributable to

Dwelling Use will include the costs for \"special spaces and

accommodations.\" The Cost Analyst will work with the Design

Representative to identify the improvements to be included.

In well-designed housing projects for elderly and handicapped

persons, non-income producing space may average from 20 to

25% of the total.

b\. Amenities and Services. Generally, this type of housing

includes amenities, services and facilities not usually found

to the same extent in rental projects not designed for the

elderly and handicapped and which provide for the comfort,

health and recreation of elderly or handicapped persons.

Included in Costs Not Attributable are community rooms,

workshops, infirmaries or other inpatient or outpatient health

facilities, essential service facilities, and commercial space,

whether income producing or not. Also included are central

kitchens and dining rooms, but only to the extent of the excess

above that required to serve living units with no cooking and

dining accommodations.

c\. Special Spaces. As with other Costs Not Attributable items,

the costs of foundations, plumbing, heating, air conditioning,

water, electric and/or sewage facilities are prorated to the

\"special spaces\" as appropriate.

9-6. FEASIBILITY. The normal feasibility application (FHA Form 2013)

is to be accompanied by FHA Form 2013E (see Appendix 25) when

housing for the elderly or handicapped is proposed. Judging the

economic feasibility of a housing proposal for the elderly or

handicapped involves determining whether the combined monthly

costs of meeting debt service requirements, covering project

operating costs exclusive of non-shelter costs, and, for limited

dividend mortgagors, allowing for a return on equity it will produce

basic monthly rentals within 1/48 of the applicable \"regular\" or

\"exception\" income limits.

a\. Exception Limits may be used provided the Field Office

Director has assured himself that a market exists in the area

among prospective tenants having income within the exception

income limits.

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Page 9-3

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4510.1

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b\. Under Certain Circumstances when housing for the elderly and

handicapped cannot otherwise be developed in the community,

there may be justification for authorizing basic rents in

excess of 25% of Section 236 regular income limits. Such

justification may be found when projects are so located that

transportation costs are provided free at the project and price

concessions are made to the occupants, resulting in lower

out-of-pocket expenses to the tenants. In those cases when

basic rents in excess of the 25% limitation appear to be

justified, a documented recommendation to this effect may be

submitted to the ARA for HPMC. Such documentation shall

detail the amenities provided and justify the higher costs

involved. The ARA for HPMC shall document the reason for his

approval or rejection of any such recommendations.

9-7. TAX ABATEMENT. When real estate tax abatement is claimed, its

acceptability shall be determined by the Regional Administrator

upon advice from the Regional Counsel.

9-8. RENT SUPPLEMENTS. Where warranted by market considerations,

tenants in a percentage of units in a Section 236 project for the

elderly and/or handicapped may receive the additional benefit of

rent supplement assistance. Please see Chapter 3, paragraph 3-7,

of this Handbook for instructions. Qualifications for rent

supplement tenant eligibility are discussed in Reference (21) of

the Foreword. Rent Supplements may not be used to cover any

charges for meals or special services.

9-9. SPECIAL DESIGN AND PLANNING CONSIDERATIONS. The basic design and

construction of projects will be subject to MPS for Housing for

the Elderly, With Special Consideration for the Handicapped.

Special consideration should be given to the following:

a\. Site. A well-located site is possibly the most important

element of a successful project. Experience indicates that,

to the fullest extent possible, projects should be located

within easy walking distance of shopping facilities and needed

services, including religious institutions, doctors and

medical facilities. These conditions can be met by suburban

sites, areas adjoining satellite communities, and selective

intown sites. Industrial and commercial areas should be

avoided because of high land costs, environmental

considerations, and because such areas are usually somewhat

deserted after business hours.

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4510.1

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(9-9) b. Project Size. Projects should be large enough to be financially

feasible but not so large that the elderly residents

cannot integrate easily into the surrounding community.

Suggested maximum size is 200 dwelling units for most locations.

Such projects may be garden apartments or high rise (although

high rise construction should be authorized only after careful

study has demonstrated that it is the most appropriate design

in light of tenant\'s needs). The type of projects will be

determined to some extent by local codes, land costs, local

preferences and rents obtainable.

c\. Social and Recreation Areas. Since the elderly and handicapped

spend much of their time within the project, suitable

and adequate facilities for social and recreational activities

are essential to residents\' well-being and the success of the

project.

\(1\) Projects should have a living plan which affords

independence, freedom of movement and protection, yet

encourages the occupants\' involvement with the interests

and problems of others. Social and recreational facilities

should reflect, insofar as possible, preferences of

the anticipated residents. Multiple purpose use of

common areas should be encouraged.

\(2\) With the necessary emphasis on community areas, dwelling

units should be adequate and not unnecessarily large. A

club-like atmosphere is desirable, and where there are

central dining facilities, they may be made an extension

of the lobby area. Small, isolated lounge areas scattered

throughout the buildings are costly to build and

furnish, and difficult for the management to observe and

maintain adequately. Small sitting areas away from the

lobby are seldom used.

d\. Apartment Types. Departmental studies show that 65% to 80% of

the residents of HUD-FHA assisted elderly projects are single.

Therefore, the usual ratio of efficiency to one-bedroom units

will be about two to one except where, in the judgment of the

Field Office Director, market consideration adversely affects

the use of efficiency or studio units.

e\. Parking Space. Car ownership by the elderly averages 18% to

20% of total units. Where local parking requirements appear

excessive, sponsors should be advised to seek local zoning

variances to permit reduced parking facilities.

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4510.1

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f\. Office Space. To assist with the leisure time and problems

relating to advanced age of elderly and handicapped residents,

most projects for the elderly will have a special staff to

work with the elderly residents. Suitable office space

should be provided for such personnel.

g\. Central Dining. Dining areas should usually be designed to

seat no more than one-half to two-thirds of the residents at

one sitting and must not be institutional in appearance.

9-10. PLAN OF OPERATION. Each proposal shall include a plan of operation

to be approved prior to issuance of the feasibility letter. This

plan will include the method of administering the project, the

type of services to be offered, the involvement of outside

organizations and services, and the number, functions and estimated

salaries of staff. Factors affecting staff need and cost include

project size and geographical location, the type and extent of

services to be provided, and whether the project is to be operated

independently or in conjunction with other projects. The cost of

staffing a project for the elderly or handicapped will generally

exceed that of a regular family project due to the need of

additional staff for special programs and services and the necessity

of having partial staff on duty all day every day. However,

excessive staff and salaries must not be permitted. Salaries are

to be checked for \"comparability\" with the community.

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4510.1

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SECTION 2. CONGREGATE

9-11. CONGREGATE HOUSING FOR DISPLACED ELDERLY AND HANDICAPPED.

a\. General. This paragraph contains instructions for

implementation of Section 115 of the Housing and Urban

Development Act of 1970 (Congregate Housing for the Displaced,

Elderly and Handicapped). Congregate Housing, as authorized by

this Act, may be developed by private nonprofit, limited

dividend or cooperative housing corporations under the Section

236 program.

b\. Definition.

\(1\) Congregate housing is for displaced, elderly and

handicapped persons or families in which some or all of the

individual dwelling units do not contain kitchen

facilities, and which has a central dining facility to

provide nutritious and economical meals for the residents.

\(2\) Because of its special facilities, structural features

and program of services, congregate housing meets the

needs of persons who desire residential accommodations

but who require some measure of assistance in their

daily living. It is not a nursing home or other type of

medical facility. Some of the service programs important

to residents of congregate housing may be assisted or

made possible through federal/state programs operated by

state or local agencies. It is important that appropriate

state and local agencies be involved in both the planning

and the execution of the service programs.

c\. Characteristics of Congregate Housing.

\(1\) Because of the special problems and needs that may exist

for some of the residents, the location of congregate

housing is very important. Transportation must be

proximate and easily accessible to the handicapped and

elderly. In addition, proximity to areas of employment,

medical, commercial, welfare and religious facilities is

desirable in project site selection.

\(2\) The atmosphere of the project must be residential rather

than institutional.

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4510.1

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(9-11) (3) When the design calls for a central dining facility

within the building, the central dining facility will be

treated as non-dwelling space in the computation of the

mortgage amount, but only to the extent of the excess

above that required to serve living units with no cooking

and dining accommodations. The cost of the meals is not

to be included in the rent and will be paid by the

residents on an individual basis. Therefore, the charge

for the meals must be kept at a level the residents can

reasonably be expected to pay. The arrangements for the

provision of meals, types and costs of meals to be served,

will be discussed and agreed upon by the sponsor and

Field Office Director prior to issuance of the feasibility

letter. The residents should be ambulatory and room

service should be available only on a emergency basis for

the temporarily incapacitated.

\(4\) The project may include an infirmary or emergency first

aid room. The cost of fixed equipment and necessary

special plumbing and electrical service may be included

in the mortgage. Movable equipment must be paid for by

the sponsor. Residents will pay for special medication

or doctor\'s care on an individual basis. The sponsor

should make arrangements with a local hospital, clinic,

or medical facility to have the services of a physician

available in the event an emergency occurs.

\(5\) Those dwelling units that do not have kitchens shall

contain a minimum size standard refrigerator, adequate

electrical capacity and outlets for small appliances,

and adequate shelf space for limited food and utensil

storage.

d\. Special Processing Instructions. Applications for congregate

housing will be processed in accordance with paragraph 9-1.

above and other applicable portions of this Handbook, except

as follows:

\(1\) Licensing. Where licensing requirements are imposed by

state or local licensing offices, the sponsor will submit

evidence that the proposal will meet the applicable

state or local agency guidelines and requirements.

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4510.1

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(9-11) (2) Design Standards. Congregate housing facilities will be

subject to the Minimum Property Standards for Housing for

the Elderly, with Special Consideration for the

Handicapped. Where state and local requirements are more

restrictive, they will prevail over the MPS.

\(3\) Limitations. In accordance with the statutory limitations,

each field office will be limited to approving

subsidy funds for congregate projects in which some or

all of the units do not contain kitchen facilities, to

an amount not in excess of 10% of the total contract

authority issued under Section 236 after June 30, 1971.

When approval of a project will result in the use of

contract authority in excess of the 10% limitation, a

waiver may be requested from the Director, Subsidized

Housing Program, through the Regional Administrator.

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4510.1

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SECTION 3. FINANCING UNFUNDED SECTION 202 PROPOSALS IN

THE APPLICATION STAGE AND REFINANCING FUNDED

SECTION 202 PROJECTS UNDER SECTION 236

9-12. GENERAL. These instructions apply (1) to Section 202 proposals

for which an application was filed on or before September 5, 1969,

but for which Section 202 funds are not available, (2) for

refinancing under Section 236 of funded Section 202 projects which

are in the construction stage or which have been completed for

less than six months when an application is filed to convert to

mortgage insurance under Section 236, and (3) proposals which had

reached an advanced stage of processing which would create a

hardship if processing under Section 236 were required. The

specific circumstances creating the hardship and the nature and

extent of the hardship created shall be documented in the file

over the signature of the responsible processing official and

initialed by the ARA or his deputy.

9-13. PROCEDURES. The field office will process the categories of

elderly housing proposals covered herein. All elderly housing

proposals will be subject to competitive bidding requirements.

Where it can be shown that substantial savings can be achieved

through negotiated bids, the ARA for HPMC may waive competitive

bidding requirements on a case-by-case basis.

To provide an orderly transition of the Section 202 program to

Section 236 by utilizing wherever possible existing policies of

the Section 202 program the following procedures shall apply to

these elderly housing proposals.

a\. The processed Section 202 application and supporting

schedules will be transcribed in detail to an FHA Form 2013

for the applicant\'s use in discussing the proposal with

approved mortgagees;

b\. In applying the Section 236 per unit mortgage limits, the

maximum per unit limits permitted by statute, including the

full 45% high cost factor, shall be applied. Elevator limits

shall apply in all cases of elevator construction. Costs

should not exceed allowable Section 202 cost criteria;

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4510.1

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(9-13) c. Feasibility will be based on rentals the elderly will
reasonably

be expected to pay, rather than the minimum 25% of income

required by Section 236. However, in no case may an assisted

elderly family pay less than 25% of the adjusted family income.

The rentals shall be at the level determined to be appropriate

by the processing office, but not less than necessary to meet

debt service and operating expense requirements;

d\. Review of site selection, architectural, design, and allowable

cost factors will follow existing Section 202 standards and

guidelines;

e\. Consultant fees will be based upon the existing Section 202

formula;

f\. The application, commitment and inspection fees will not be

required and the mortgage insurance premium during construction

will be reduced to 1/4% per annum;

g\. No allowance will be included for AMPO. In accordance with

Section 202 policy, the applicants will be expected to provide

operating capital equal to 25% of the first year\'s operating

budget and all funds for movable equipment;

h\. The current standards for determining operating expense amounts

shall continue on the basis of usual Section 202 estimates for

such amounts;

i\. Where real estate tax abatement is claimed, its acceptability

shall be determined by the Regional Administrator upon advice

of the Regional Counsel;

j\. Tenant income at admission may not exceed 135% of the limits

established for admission to public housing;

k\. Occupancy criteria will be the same as established for the

Section 202 program;

l\. Land cost must not exceed \$1,000 per unit;

m\. Unit composition must include at least 2/3 efficiencies; and

n\. Units must be all housekeeping.

In addition, any case involving the rehabilitation or refinancing

of any existing structure must be submitted to the Central Office.

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4510.1

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9-14. RESERVATION OF CONTRACT AUTHORITY. When it is apparent that basic

sponsorship, site and market criteria are met and an acceptable

application can be developed based upon the proposal, the field

office will prepare the Preliminary Reservation of Contract

Authority, FHA Form 3126. The execution and approval of the FHA

Form 3126 will be the basis for a letter of feasibility under

Section 236. The feasibility letter may then be submitted through

an initiating mortgagee to FNMA in accordance with outstanding

instructions in order to obtain both construction and permanent

financing.

a\. Reservation of Contract Authority Under Section 236 shall be

made in accordance with the fiscal instructions herein. Copies

of the certified form shall be sent to the Director, Office of

Subsidized Housing Programs and to the Director, Research and

Statistics Division.

b\. Upon Receipt of the Feasibility Letter, the mortgagee will

submit the FHA Form 2013, requesting a conditional commitment.

The field office will analyze and process this request,

determine any necessary conditions and make these a part of the

conditional commitment. The mortgagee will advise the sponsor

of the commitment, and if the conditions are acceptable, the

case will proceed to final plans.

c\. After Bids are Received by the applicant and found to be in

reasonable relationship with the conditional commitment, the

application is submitted for a firm commitment by the mortgagee.

If all exhibits are in compliance with the conditional

commitment, a firm commitment will be issued to the mortgagee.

This will give the terms for insurance endorsement.

d\. After Initial Insurance Endorsement, the construction may

start and proceeds of the mortgage will be available for

distribution according to the agreed upon trade payment

schedules developed in processing.

9-15. RENT SUPPLEMENTS. The statute permits up to 40% of the units in

a Section 236 project to be eligible for rent supplement assistance.

Sponsors shall be requested to utilize this provision

wherever possible. Requests for rent supplement assistance shall

be prepared and submitted in accordance with requirements

established for other Section 236 proposals.

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4510.1

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9-16. STATISTICAL REPORTING. The statistical reporting form, FHA Form

2038-P Supplement, must be prepared each week covering all

processing activity concerning Section 202, nonprofit elderly

housing projects which are transferred to Section 236 financing.

This report is to be prepared according to the outstanding

instructions contained in Reference (22) of the Foreword. Weekly

reports are to be prepared as of 2:00 p.m. each Friday afternoon

and sent directly to the HPMC-FHA Statistics Section, Room 6249,

HUD Building. Telephone inquiries regarding reporting should be

handled through Data Processing and Reports Unit, Statistics

Section (755-5798).

9-17. FISCAL INSTRUCTIONS.

a\. HUD-FHA Project Numbers. A special block of serial numbers

is required for Section 202 proposals when a Section 236

feasibility letter is to be issued. The special block of

numbers is from 44801 through 44899. These number are to be

assigned sequentially by the Field Office Director. This

procedure applies to applications involving new projects as

well as the refinancing of existing Section 202 projects.

\(1\) A complete number will consist of the 3-digit field

office projective code (collection code), followed by a

dash, and the next open number in the 44801 series. For

example, 062-44801 would be the first such number

assigned by the Birmingham, Alabama Field Office.

\(2\) When the number is assigned, the Director will account

for it by preparation of a \"no fee\" official receipt.

In the mortgagor panel on the official receipt the

Director will show \"202-236;\" in the location panel he

will show the name of the project and the city. The

original of the receipt and the usual pink copy will be

attached to the FHA Form 906, Schedule of Collections.

\(3\) The project number will be shown on all applicable forms

and documents.

b\. Reporting Issuances of Preliminary Reservations of Contract

Authority. When FHA Form 3126 is approved, it will be

recorded on FHA Form 3125. A copy of the approved FHA Form

3126 will be promptly sent to the Director, Office of

Subsidized Housing Programs and the the Director, Research

and Statistics Division. The entry made on FHA Form 3125

will serve as the basis for the preparation of FHA Form 3138

status report.

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4510.1

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(9-17) (1) The field office must maintain a record of contract

authority reserved and obligated of FHA Form 3125 in

accordance with applicable instructions.

\(2\) The FHA Form 3127, Weekly Report of Contract Authority

obligated, shall be submitted to the Comptroller beginning

with the week in which the first FHA Form 3126 is

approved. When the FHA Form 3127 weekly report is

prepared, the issuance of the preliminary reservation

is to be reported in Section I, Preliminary Reservations

Issued, for the report covering the week in which the

approved copy of FHA Form 3126 is released. The original

and two copies are to be mailed in special envelopes to

be received by the Comptroller each Monday. FHA Form

3138 must accompany the weekly report.

\(3\) Other Section 202/236 transactions will be reported on

FHA Form 3127 as they occur with respect to the

cancellation of preliminary reservations and incurrence or

cancellation of firm obligations.

c\. FHA Form 3138. Status of Reservations and Obligations. A

FHA Form 3138, checked to indicated Section 236 transactions,

and identified as \"202/236\" special purpose is to be submitted

each week to the Comptroller. The original of this form is

stapled to the original of FHA Form 3127. A copy is sent

concurrently to the Director, Subsidized Mortgage Insurance

Division. The field office will retain a copy of each FHA

Form 3138 in a master file.

The number of units pertains to the number of mortgages, not

dwelling units.

d\. Identification of Model City Transactions. A separate FHA

Form 3138 must be submitted to report Section 202/236

transactions in a Model City or Model City area. In the top

panel of FHA Form 3138 after the arrow on the form, show

\"202/236 Model Cities,\" a dash, and the name of the Model City

or Model City area.

\(1\) In those areas where there may be two or more Model City

areas in which there are Section 202/236 transactions,

a separate FHA Form 3138 must be submitted for each

Model City or Model City area. When two or more FHA

Forms 3138 are required to be submitted for Model City

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4510.1

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(9-17) transactions, the totals on each line of each FHA Form

3138 must aggregate a gross total which would have been

shown if only one FHA Form 3138 had been prepared. Only

one part of the FHA Form 3127 weekly report is to be used

to report in summary Section 202/236 transactions in two

or more Model Cities.

\(2\) Negative Reports on FHA Form 3138 for Section 202/236

transactions in Model City areas are not required.

However, once an entry is made on the FHA Form 3127

weekly report under special purpose contract authority

allocations indicating Model City activity, a supporting

FHA Form 3138 must be submitted, and weekly thereafter.

Although there is no new activity which must be reported

on a subsequent FHA Form 3127 report, FHA Form 3138 must

be prepared, showing opening and closing balances of

preliminary reservations and firm obligations.

e\. Increase in Preliminary Reservations. If for any reason it

becomes necessary to increase the amount of a Section 202/236

preliminary reservation, a new FHA Form 3126, Request for

Preliminary Reservation of Contract Authority, must be

processed. The request must be specially identified by typing

in capital letters \"INCREASE\" below the title of the form.

Double underscore the word \"increase.\" The new FHA Form 3126

request is to be for the total proposed mortgage amount, not

just the amount of the increase. It will be completed and

processed in the same manner as the original request.

When approved, the cancellation of the outstanding preliminary

reservation will be reported in Section II of FHA Form 3127

on the same report that the new reservation for the increased

amount is reported as having been issued under Section I.

f\. Outright Cancellation of Preliminary Reservations.

\(1\) Whenever Section II of the FHA Form 3127 shows the

cancellation of a preliminary reservation, and the entry

is the result of an outright cancellation which will not

result in a firm obligation, attach a sheet of paper to

the FHA Form 3127 showing the project number and the

words \"Outright cancellation - will not result in firm

obligations.\" This project identification applies to

all Section 202/236 outright cancellations of preliminary

reservations, irrespective of whether the proposed

transaction was in a Modal City area.

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4510.1

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(9-17) (2) When the cancellation is reported because an increase in

the preliminary reservation has been requested and

approved under the procedure outlined above, the project

should be listed as an outright cancellation because that

particular preliminary reservation will not result in a

firm obligation.

g\. Official Receipts for Mortgage Insurance Premiums.

\(1\) At the time of initial insurance endorsement the field

office will collect the initial MIP at the rate of 1/4%

per annum of the face amount of the mortgage for which

he will prepare an Official Receipt, FHA Form 2006. The

following formula will be used to compute the premium:

.0025 X (face amount of mortgage). See Reference (23)

of the Foreword. The original of the receipt will be

delivered to the remitter; parts 2 and 3 together with

the check payable to HUD-FHA and a letter of transmittal

will be sent under the loss-in-shipment procedure to the

Comptroller, Attention: Receipts and Deposits Section;

and part 4 will be retained by the processing officer.

\(2\) Remittances for the initial MIP received by the

Comptroller, Receipts and Deposits Section, will be

scheduled for deposit and credited to the Special Risk

Insurance Fund. All subsequent mortgage insurance

premiums due HUD-FHA will be billed for and collected

by the Comptroller.

h\. Closing Memorandum. A copy of the closing memorandum must be

furnished to the Comptroller promptly following initial

insurance endorsement in order that the transaction may be

entered in the insurance-in-force records.

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