19.6.4 Section 213 Cooperative Housing Loans

A. Mortgage insurance for cooperative housing projects insured under Section 213 of the National Housing Act is underwritten and closed through Traditional Application Processing (TAP). The provisions of this Chapter apply to the closing of a Section 213 loan.

B. Lender’s Counsel should prepare the draft closing submission based on the Section 213 checklist posted to HUD’s website: https://www.hud.gov/OGC_Multifamily_Closing_Documents_Checklist.

C. When a share sale waiver is requested prior to Firm Commitment, the RC Director will request and OGC will assign a HUD Closing Attorney to complete a legal review of the required documentation.

Note: The authorizing statute for Section 213 insurance is codified at 12 USC 1715e. Regulations governing the Section 213 program are located at 24 CFR Part 213. Basic administrative requirements for cooperative housing insurance and more specific requirements for specialized types of cooperative housing are published in HUD Handbooks 4550.1 through 4550.6.