A District housing official says the city stopped taking applications for its home rehabilitation loan program under orders from the U.S. Department of Housing and Urban Development, rather than at the direction of city officials as earlier reported.

Sandy Robinson, a spokeswoman for the D.C. Housing and Community Development Department, said she had mistakenly provided incorrect information for an Aug. 7 Post story.

Phillip A. Murray, a home rehabilitation specialist in HUD's office for the Washington area, said HUD in September 1980 required the District to stop taking applications for the federally funded loan program because of serious problems with the program and a backlog of 938 applicants.

A May 1980, HUD-paid consultant's study of the program cited problems in staff training and morale, recordkeeping, quality of the rehabilitation work and inspections of the work. A city-paid report, released a month later, by the accounting firm of Lucas, Tucker & Co. concluded that the program had been "grossly mismanaged."

However, Murray said city officials generally have since corrected the problems. The program has made "a complete turnaround," he said. "The program will now be 180 degrees different."

Robinson has said the District soon plans to ask HUD's approval to again take applications for the program and is optimistic permission will be given by October.