U.S. Department of Housing and Urban Development
                         Washington, D.C. 20410-8000
                             March 18, 1994
                                                            TI-427
OFFICE OF THE ASSISTANT SECRETARY                           Supplement
FOR HOUSING-FEDERAL HOUSING COMMISSIONER
 
    MEMORANDUM FOR:  ALL TITLE I LENDING INSTITUTIONS
                      Attn:  Installment Loan Department
     SUBJECT:  Extension of Equity Waiver to Multifamily Properties
               Affected by the California Earthquake
 
          On February 16, 1994, the Department issued Title I Letter
     TI-427 , which waives several provisions of the Title I regulations
     to make property improvement loans more readily available to the
     victims of the Northridge earthquake in Southern California.  Among
     other things, TI-427 waives the equity requirement normally applicable
     to loans over $15,000, as long as the total principal balance of all
     Title I loans on the same property does not exceed $25,000.
 
          Some lenders have pointed out that, because of the $25,000
     limitation, the equity waiver is of very little value to owners of
     multifamily properties, where the loan amount may be as much as
     $60,000.  The Department agrees that limiting the equity waiver is not
     equitable, and therefore, the waiver is being extended to any property
     improvement loan without regard to the loan amount, as long as the
     maximum loan amount in 24 CFR 201.10(a) for the particular type of
     property is not exceeded.  This extension is applicable under the same
     conditions as are outlined in TI-427.
 
          If you have any questions about this letter, please write to
     Robert J. Coyle, Director, Title I Insurance Division, 490 L'Enfant
     Plaza East, Suite 3214, Washington, D.C. 20024, or call the Department
     at 202-755-7400.
 
                                   Sincerely yours,
 
                                   Nicolas P. Retsinas
                                   Assistant Secretary for Housing
                                     - Federal Housing Commissioner