4550.2

PRE-SALE

MANAGEMENT TYPE

COOPERATIVES

APRIL 1973

PROGRAM PARTICIPANTS AND HUD STAFF

(4/91 - Reprinted to replenish stock.

CHG 1, 11/29/74 incorporated.)

A HUD HANDBOOK

HOUSING PRODUCTION AND MORTGAGE CREDIT-FEDERAL HOUSING ADMINISTRATION

U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WASHINGTON, D. C. 20410

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4550.2

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FOREWORD

The \"Basic Cooperative Housing Insurance Handbook,\" Reference (1) of

the Foreword, sets forth the fundamentals of organizing a cooperative

housing corporation and describes briefly the various approaches which

may be employed to achieve the ultimate objective, a \"Management Type

Cooperative.\"

This second handbook of the cooperative housing series deals with the

\"Presale Management Type\" cooperative. Requirements, organizational

procedures, and underwriting procedures necessary to this approach are

covered thoroughly in step-by-step detail as they are largely necessary

to all management type cooperatives, regardless of approach. The

instructions in this handbook are incorporated by reference in
subsequent

handbooks of the series which deal with other approaches. The Section

236 handbook, Reference (2) of the Foreword, incorporates this handbook

by reference, also.

An appendix of model forms and a numerical reference to applicable

HUD-FHA Regulations are included for ready reference and convenience.

Copies of this handbook should be made available to interested parties,

however, it is important that it be read in conjunction with the basic

handbook as sponsorship criteria appears in that handbook only.

Legal Authority:

Subchapter E - Cooperative Housing Insurance

Management Type

Subpart A - Eligibility Requirements for Projects - 213.1 - .249

except subparagraphs (g), (h), of 213.1; (b), (c), (i)-(2),

\(j\) of 217.7; (b)-(1)(2), of 213.18; (c) of 213.31.

Subpart B - Contract Rights and Obligations - Projects

\- 213.251-213.261; 213.265 - 213.280 and 207 except as

provided in 213.251.

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11/74

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4550.2 CHG

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Legal Authority: (continued)

Subchapter G - Cooperative Housing for Moderate income and Displaced

Families

Subpart C - Eligibility Requirements for Projects - 221.502(a), (b)-(1);

221.503 through .506(c); .506b; 221.507 through .509;

221.510(a), (d)-(1)-(3); 221.511 through .513;

221.514(a)-(1)-(i)-(ii), (2), (3), (4)-(i), (b), (c);

.515(a), (b)-(1),(c)-(1); 221.516 through .518(a); 221.519

through .523; 221.524(a)-(1)-(iii)-(2), (b), (c); 221.525

through .530; 221.533 through .541; 221.542 (except (c);

221.544; 221.545 (a)-(1), (b)-(1),(c); 221.546 (a),

(b)-(1)-(2); .547(a)-(1)-(2)-(3)-(ii); 221.548(a),(b),

(c)-(1)-(2); 221.549 through .550 (except (d)); 221.551(a),

(b); 221.552 through .555; 221.557 through .559a; 221.561

through .564.

Subpart D Contract Rights and Obligations - Projects - 221.751;

221.755; 221.760 through .762(a); 221.763; 221.770;

221.775; 221.780; 221.785; 221.790, and 207 except as

provided in 221.751.

References:

\(1\) 4550.1 - Basic Cooperative Housing Insurance

\* (2) 4510.1 - Rental and Cooperative Housing for Lower Income

Families, Section 236, Basis Instructions \*

\(3\) 4410.1 - Project Fiscal Procedures

\(4\) 4110.1 - Fiscal and ADP Handbook

\(5\) HUD 1340.3A - Labor Standards and Labor Relations

\(6\) 4430.1 - Initial Closing Commitment Handbook for

Project Mortgage Insurance

\(7\) RHM 4350.1 - Supplement Insured Project Servicing

\(8\) 4435.1 - Construction to Final Closing for Project Mortgage

Insurance

\(9\) 4550.5 - Investor-Sponsor and Non-Profit Sponsorship of

Housing Cooperatives

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11/74

HUD-Wash., D. C.

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4550.2 CHG

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References: (continued)

\(10\) 4470.1 - Mortgage Credit Analysis for Project Mortgage Insurance

\(11\) HM 4371.2 - Cooperative Accounting Handbook Manual Uniform

System of Accounts for Cooperative Housing

Corporations Using Manual Accounting Systems

\(12\) HM 4371.3 - Cooperative Accounting Handbook Computer Uniform

System of Accounts for Cooperative Housing

Corporations Using Computer Accounting Systems

\(13\) 4440.1 - Final Closing Commitment Handbook for Insurance for

Project Mortgage Programs

\(14\) 4550.4 - Cooperative Housing Supplementary Loan Handbook

\* (15) 4910.1 - Minimum Property Standards for Multifamily Housing

\(16\) 4450.1 - Cost Estimation/Cost Data for Project Mortgage

Insurance

\(17\) 4460.1 - Architectural Analysis and Inspections Handbook for

Project Mortgage Insurance

\(18\) 4465.1 - Valuation Analysis for Project Mortgage Insurance

\(19\) HPMC-FHA 4200.15 (4480.1) - Multifamily Reports and

Forms Catalog

\(20\) 4550.3 - Existing Construction - Cooperative Housing \*

\*The information in parentheses indicates the location of the
referenced

material in the new classification system.

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11/74

HUD-Wash., D. C.