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Public Housing Mortgage Program (PHMP)


Through restrictions in the Annual Contributions Contract and the Declaration of Trust, Public Housing Agencies are precluded from establishing a mortgage or security interest in any public housing property or asset without the approval of HUD. The Section 516 of the Quality Housing and Work Responsibility Act of 1998 (QHWRA) added Section 30, Public Housing Mortgages and Security Interest, to the United States Housing Act of 1937, which authorizes PHAs, subject to HUD approval, to pledge or mortgage public housing projects or other property of the PHA.

In addition, QHWRA amended section 9 of the 1937 Act to create the Capital Fund Financing Program (CFFP) and Operating Fund Financing Program (OFFP). Procedures for implementing and approving Section 30 transactions that involve Capital or Operating Funds are provided separately from the Public Housing Mortgage Program. Likewise, any security interest or mortgages on Mixed-Finance tranactions are appoved as part of the overall approval of those transactions.

For approval of all other transactions that would result in a mortgage or security interest in any public housing property or assets, the Public Housing Mortgage Program (PHMP) was established.