U.S. Department of Housing and Urban Development
                                        Washington, D.C. 20410-8000
 
OFFICE OF THE ASSISTANT SECRETARY
FOR HOUSING-FEDERAL HOUSING COMMISSIONER                             TI-433
 
     TO:  ALL TITLE I LENDING INSTITUTIONS
 
     SUBJECT:  TITLE I SHOWCASE PROGRAM
 
           The Department is initiating a program to showcase the capability
        of the Title I property improvement loan program to meet HUD's
        community development goals and enable low and moderate income
        families to rehabilitate their homes.  The objectives of the Title I
        Showcase Program are to:
 
                o  Recognize innovative partnership efforts in the use of the
                   program by Title I lenders, community-based nonprofit
                   housing providers, neighborhood development organizations,
                   units of State and local government, and others; and
 
                o  Publicize these efforts as examples for others to use to
                   benefit communities.
 
           Members of the partnership will receive Certificates of Special
        Recognition from the FHA Commissioner, acknowledging their involvement
        in using the Title I program for community development.  A news
        release will also be issued, announcing the Showcase Program award
        and describing the partnership's accomplishments in using the Title I
        program.  This news release will be widely circulated to lenders,
        State and local housing and community development agencies, and
        nonprofit organizations, to publicize the Showcase Program and
        encourage further participation.
 
     Criteria for a Showcase Award
 
           The following criteria will be used in deciding whether an award
        should be given; however, it will not be necessary to meet all
        criteria to be considered for an award:
 
                o  The community or neighborhood must be receiving public funds
                   for revitalization or be otherwise designated for housing
                   rehabilitation by a State or local housing agency or
                   nonprofit organization.
 
                o  The rehabilitation program must be targeted to low and
                   moderate income homeowners - those with incomes at or below
                   115 percent of the median family income in the area.
 
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                o  The rehabilitation program must be carried out through a
                   process of public/private cooperation among local community
                   or neighborhood organizations, lenders, homeowners,
                   contractors, and others.
 
                o  The rehabilitation program must provide for extensive
                   homeowner participation in the decision-making process,
                   including decisions on the type and extent of the
                   improvements.
 
                o  The partnership effort will be expected to produce a
                   sufficient number of Title I property improvement loans to
                   have a significant impact on the community or neighborhood.
 
                o  There must be a provision for inspection of the work during
                   rehabilitation, with disbursements made to the contractor
                   only after improvements are completed to the satisfaction
                   of the homeowner.
 
     Submitting Showcase Proposals
 
           Title I Showcase proposals will be accepted for consideration at
any time.  Five copies of your proposal should be sent to:
 
                                        Ms. Emelda P. Johnson
                                        Deputy Assistant Secretary for
                                        Single Family Housing
                                        Dept. of Housing and Urban Development
                                        451 Seventh Street, S.W., Room 9282
                                        Washington, D.C. 20410
 
     For Further Information
 
           If you have any questions about this letter, please write to Alan
R. Stailey, Deputy Director, Title I Insurance Division, 490 L'Enfant
Plaza East, Suite 3214, Washington, D.C. 20024, or call the Division
at 202-755-7400.
 
                                         Sincerely,
 
                                         Nicolas P. Retsinas
                                         Assistant Secretary for
                                         Housing-Federal Housing Commissioner