U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

TRANSMITTAL

NOTICE January 19, 1973

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1\. This Notice Transmits the Following:

HUD Handbook 4210.2, \"Section 235(i) Fiscal Instructions for

HUD-FHA Field Offices.\"

2\. Explanation of Material Transmitted:

The instructions in this Handbook were previously contained in

FHA 4441.15. This material has been revised to incorporate the

fiscal provisions of Circular 1830.4A, HPMC-FHA 4400.48, HPMC-FHA

4400.50, and HPMC-FHA 4441.28, and also to give effect to

organizational and title changes.

3\. Applicability:

This Handbook contains the policies and procedures that were in

effect as of June 30, 1972. Where possible the fiscal

instructions in issuances of a later date have been included in

this Handbook. New or modified fiscal instructions issued after

June 30, 1972, take precedence over the contents of this Handbook

wherever applicable.

4\. Cancellations:

This Handbook cancels HUD Handbook, FHA 4441.15, including

Changes 1 and 2, FHA 4441.21, HPMC-FHA 4441.25, and HPMC-FHA

4400.41A.

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FOREWORD

This Handbook contains the fiscal instructions for field offices to

follow when processing sections 235(b) and 235(i) transactions.

Assistance payments are made under authority contained in section

235(b). Mortgages on properties purchased by families eligible for

assistance payments are Insured under section 235(i), and, in case of

marginal credit, under section 237.

A copy of this Handbook should be furnished to each employee in the

office who processes section 235 transactions.

Special attention should be given to the instructions contained in

paragraph 12 about the review and approval of Forms 3100. Since the

approved Form 3100 serves as a basis for making assistance payments

after the mortgage is insured, the importance of verifying the

computations and the proper classification of income cannot be

overemphasized. Care used in the review of Form 3100 prior to

approval will avoid creating a hardship situation for the mortgagor

and the difficult adjustment problems created for both HUD and the

mortgagees.

After a mortgage is insured, any questions about assistance payments

relating to the fiscal aspects of the program should be directed to

the Office of the Comptroller.

Reference:

\(1\) HPMC-FHA 4010.9 (4010.1)\* -Fiscal and ADP Handbook

\(2\) FHA 4400.9 (4515.2)\* -Homeownership Assistance for

Purchase and Resale of Housing

to Low Income Families, Sec. 235(j)

and Sec. 221(h)

\(3\) FHA 4400.16 (4210.3)\* -Fiscal Instructions for use by

Department of Agriculture for Home

Mortgages under Sections 235(j) and

237

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7/72

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\(4\) FHA G 4400.8 (4210.4)\* -Mortgagees\' Guide - Assistance

Payments under Sec. 235 and

Interest Reduction Payments

under Sec. 236

\(5\) Circular Number 1830.4A dated April 12, 1972

Subject: Procedures for Processing Program Fund and Contract

Authority Assignments

\(6\) FHA 4442.1 (4510.2)\* -Rental Housing for Lower Income

Families (Sec. 236)

\*The information in parentheses indicates the location of the

referenced material in the new classification system.

Cancellations: This handbook cancels HUD Handbook, FHA 4441.15,

Section 235(i) Fiscal Instructions for FHA Insuring Offices

including Change I and Change 2 and the following Circulars:

HPMC-FHA 4400.41A

FHA 4441.21

HPMC-FHA 4441.25

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7/72

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