(d) Transfer of unsold unit operated as public housing to PHA. (a) Low-income requirement. As to the comment regarding inconsistency between physical requirements for public housing and local code requirements, proposed § 906.7 clarifies that relationship. Homeownership offers 2 programs: Housing Choice Homeownership for HCV recipients and Section 5(H) Homeownership for scattered site PHA residents. (a) This part states the requirements and procedures governing public housing homeownership programs involving sales of individual dwelling units to families or to purchase and resale entities (PREs) for resale to families carried out by public housing agencies (PHAs), as authorized by section 32 of the United States Housing Act of 1937 (42 U.S.C. Los programas CARES 2020 para inquilinos y propietarios de viviendas ya … A description of the properties, including the number of housing units, unit types, and number of bedrooms, and any non-dwelling facilities on the properties to be acquired; (2) Certification. The PHA (Public Housing Authority) uses its normal voucher program payment standard schedule to determine the amount of subsidy for the homeownership program. The PHA must report as part of the Annual Plan process under § 903.7(k) of this title, except for those PHAs under §§ 903.11(c)(1) and (2) of this title who are not required to include information on their public housing homeownership programs in their Annual Plan. As in the 5(h) rule, the NPRM proposed a resident consultation requirement. Comment: Two commenters questioned provisions relating to PREs in proposed § 906.19. (b) Physical assessment. Comment: Two commenters suggested changes to proposed § 906.7, which sets forth the physical condition standards for units offered for sale. Four commenters responded that HUD should not specify underwriting standards or the types of documents to be used. Annual Contributions Contract (ACC) is defined in 24 CFR 5.403. See 24 CFR 906.15(c). This section creates no new substantive requirements, but provides for continuing enforceability of an already existing requirement. The family meets any other initial eligibility requirements set by the PHA. This feature is not available for this document. Such a family must meet the requirements of both programs, and the section 8(y) assistance must be provided under the 8(y) program rules. These factors may include such things as the equity contribution of the purchasing family and the time elapsed prior to the sale. Eligibility must be limited to families who are capable of assuming the financial obligations of homeownership, under minimum income standards for affordability, taking into account the unavailability of public housing operating subsidies and modernization funds after conveyance of the property by the PHA. Also, § 906.15(a) is revised to clarify that a family in-place in public housing exercising its right of first refusal is eligible to purchase the unit regardless of the low-income requirement. 12/11/2020, 140 This repetition of headings to form internal navigation links 3501-3520), and assigned OMB control number 2577-0233. Through the Homeownership option, a public housing agency may provide voucher assistance for an eligible family that purchases a … Homeownership counseling. Where a PHA is to submit a homeownership program for HUD approval. This final rule makes a clarifying amendment to proposed § 906.3(b). Additional supporting documentation for acquisition of non-public housing for homeownership. Monthly homeownership expenses include: 1. Other specific issues have been addressed in responses to public comments, which are summarized below. (8) Market analysis. For purposes of this part, a family that was over-income (i.e., an individual or family that is not a low-income family) at the time of initial occupancy of public housing and was admitted in accordance with section 3(a)(5) of the 1937 Act, is treated as a non-purchasing resident of non-public housing. (b) Legality. Additional PHA eligibility requirements. Except in the case of a PHA's offer of first refusal to a resident occupying the unit under § 906.13, a family purchasing a property under a PHA homeownership program must be a low-income family, as defined in section 3 of the 1937 Act (42 U.S.C. This rule does not cover any other homeownership programs in any express or implied manner, but is limited to the requirements of the section 32 homeownership program. CHA’s Choose to Own Homeownership Program (CTO) allows qualified Public Housing and Housing Choice Voucher (HCV) families to use their housing subsidy to buy a home and receive monthly assistance with a portion of their mortgage payment. The requirement for a PRE to sell units under a homeownership program only to low-income families must be recorded as a deed restriction at the time of purchase by the PRE. better and aid in comparing the online edition to the print edition. Therefore, in the final rule, § 906.41(a)(2) requires the developer, which developed units under an agreement providing that they would be sold to the PHA, to certify that the units were developed according to Davis-Bacon wage rate requirements and applicable environmental requirements. This site displays a prototype of a “Web 2.0” version of the daily A. documents in the last year, by the Agricultural Marketing Service (2) In this section, the term net proceeds means the financial gain on resale received by the seller after satisfying all amounts owing under mortgages, paying closing costs, and receiving an amount equal to the down payment (made from the seller's own funds) and principal payments on the mortgage(s). (c) Public housing units in the PHA's inventory. documents in the last year, 65 12/11/2020, 205 Thus, HUD has no leeway to extend this time limit. Accordingly, HUD has added § 906.15(c)(1), a financial capacity requirement parallel to 24 CFR 906.8(e)(1) (as of April 1, 2002). HUD agrees that the guidance provided in the 5(h) regulations was reasonable and workable in practice, in that it set a baseline standard to insure that PHAs sell units to families that can afford the debt burden involved in owning them. (5) Must not transfer possession of the unit until the resident is relocated. (1) Under this part, a PHA may use assistance from amounts it receives under the Capital Fund under section 9(d) of the 1937 Act or from other income earned from its 1937 Act programs to provide assistance to public housing residents only to facilitate the purchase of homes (e.g., counseling, closing costs, that portion of the down payment not required to be supplied from the purchaser's funds under the provisions of § 906.15(c), financing, and moving assistance). (c) After the expiration of the 5-year period in paragraph (a)(4) of this Start Printed Page 11725section, the PHA must recapture all or a portion of the assistance provided under the homeownership program to the family to the extent there are net proceeds. One commenter stated that the rule should clarify the relationship between local code standards and the physical requirements for public housing. HUD now believes that such a provision would not only be difficult to police but might unduly restrict homeownership opportunities. Davis-Bacon and HUD wage rate requirements. (a) Property standards. The NPRM provides that the homeownership program may convey “any ownership interest that the PHA considers appropriate.” With respect to cooperative and other forms of ownership interest, nothing in the list of examples is meant to be exclusive. from 16 agencies, updated on 8:45 AM on Friday, December 11, 2020, 114 documents Proposed § 906.7 provides that a property offered for sale must meet local code requirements or, if no local code exists, housing quality standards established by HUD under 24 CFR part 982. A new § 906.29 has been added, making it clear that below-market sales are permitted in order to ensure that eligible, low-income buyers have adequate homeownership opportunities. The Housing Choice Voucher (HCV) Homeownership Program was created by HUD to assist low-income, first-time homebuyers in purchasing homes. Proposed § 906.3(b) states that “A PHA may convert an existing homeownership program to a homeownership program under this part with HUD approval.” HUD believes that nothing prohibits converting specified units or developments from an existing homeownership program to the section 32 program, so long as all HUD approval requirements are met, including resident consultation as provided in proposed § 906.39(e). HUD encourages such uses to promote homeownership. (ii) All or a portion of the assistance provided (which includes below-market financing, but which does not include Section 8(y) assistance used for mortgage payments under this part) under the homeownership program to the family to the extent there are net proceeds, considering the factors the PHA establishes under paragraphs (b)(1)-(7) of this section. Where the PHA's homeownership program contemplates acquisition of properties not identified at the time of submission, the PHA must certify that it will comply with this section, including paragraph (f) of this section, prior to such acquisition or construction. Like other special housing types, PHAs may choose whether or not to imple-ment the program and allow the use of the homeownership option to voucher recipi-ents. The NPRM also proposed a requirement that, in cases where sales will be through a PRE, the plan contain a description of the PRE's responsibilities and information demonstrating that regulatory requirements applicable to a PRE have been met. Comment: Four commenters questioned either the types of dwelling units that may be sold or the homeownership interest that may be conveyed. 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