better and aid in comparing the online edition to the print edition. (See 42 U.S.C. 1437j. 1437z-4 and 3535(d). Pursuant to these comments, HUD has not at this time implemented specific underwriting standards or types of documents required. of the issuing agency. Nothing in the statute or this rule purports to prohibit a PHA from operating separate homeownership programs. The PHA may establish time limits for a family where they are purchasing the home. In the case where the PRE expects to operate the unit as public housing and the unit receives operating subsidy, the PHA must submit, along with its homeownership plan, certain information similar to that submitted in a mixed-finance development where both private funds and HUD funds are involved, and must comply with all rules and regulations regarding operation of public housing units. This is true if the PRE operates the property as non-public housing. 1437z-4(a), which states that “an agency may transfer a unit pursuant to a homeownership program only if the program is authorized under this section and approved by the Secretary.” Therefore, HUD has made no change as a result of this comment. Contact your local public housing agency for details. Register documents. A PHA that has not previously implemented a homeownership program for low-income families instead must submit a statement describing its experience in carrying out public housing modernization and development projects under part 905 of this title, respectively; (e) Nondiscrimination certification. 1437z-4(d) has an unqualified requirement that families occupying a public housing unit be given a right of first refusal for their unit. Also, the NPRM proposed requiring PREs to sell properties they acquire within five years, or transfer ownership to the PHA, as the statute requires (see 42 U.S.C. The Public Inspection page may also headings within the legal text of Federal Register documents. These standards must be met as a condition for conveyance of a dwelling to an individual purchaser. 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. Use the PDF linked in the document sidebar for the official electronic format. Accordingly, amendments have been made throughout this final rule where necessary to specifically allow such use of section 8(y) assistance. You can call your local Public Housing Agency (PHA). HUD has decided to allow homeownership assistance under section 8(y) of the 1937 Act, 42 U.S.C. In addition, HUD has added subsections defining certain terms used in § 906.27, and clarifying that below-market financing, upon resale, is not counted when determining appreciation for recapture purposes under § 906.27, although such financing may be considered assistance in other contexts. Requirements applicable to a purchase and resale entity (PRE). (See proposed § 906.15(c) at 64 FR 49935.) The PHA may make the HAP payment directly to the family or to the lender. OMB determined that this final rule is a “significant regulatory action,” as defined in section 3(f) of the Order (although not economically significant, as provided in section 3(f)(1) of the Order). 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. (See 42 U.S.C. Comment: One commenter asked what Davis-Bacon and HUD wage rate requirements apply to new construction in the program. (b) A family assisted under the homeownership option may be a newly admitted or existing participant in the program. HUD has made no change as a result of this comment. (c) Sale to low-income families. Annual Contributions Contract (ACC) is defined in 24 CFR 5.403. (1) If the program involves only financing assistance to the family purchasing the unit, the PHA need not specify property addresses, but it must describe the area(s) in which the assistance is to be used; (2) If the PHA is selling existing public housing, it must describe the property, including identification of the property by project number, or street address if there is no project number, and the specific dwellings to be sold, with bedroom distribution by size and type broken down by development; (3) If the PHA is acquiring units with 1937 Act funds to sell under the program, it must comply with the provisions of § 906.40 concerning this element of the program; (c) Repair or rehabilitation. (3) In accordance with the rules and regulations governing the Section 8(y) Homeownership Option, found in 24 CFR part 982 subpart M, a PHA may make its housing choice voucher funds available to provide assistance to a family purchasing a unit under this part. 1437f(y) (the section 8(y) program or section 8(y) assistance), to be used in conjunction with a homeownership program pursuant to this rule. A. One of these commenters stated that § 906.8(e)(1) of the current 5(h) homeownership regulations in this title should be retained. from 44 agencies. HUD Response. A Rule by the Housing and Urban Development Department on 03/11/2003. HUD wants to help public housing residents become homeowners! the Federal Register. (3) A PHA must have a policy that provides for the recapture of net proceeds in an amount that the PHA considers appropriate under the guidelines in this section. No. (7) Any other factors that the PHA considers appropriate in making the recapture determination under this section. (9) Additional HUD-requested information. on NARA's archives.gov. The provisions of section 18 of the 1937 Act (42 U.S.C. In approving homeownership programs in which the PHA contemplates selling public housing units to a PRE for operation as public housing during the 5 year interim period the department will require evidentiary materials including but not limited to: (2) Regulatory and operating agreement between the PHA and PRE regarding the provision of operating subsidy and the operation of the public housing units in accordance with all applicable public housing requirements; (5) A description of the use of operating subsidy during the PRE's period of ownership, in the form of an operating pro forma; (6) A mixed-finance ACC amendment governing these units; (7) A deed restriction or covenant running with the land that will assure to HUD's satisfaction that the PRE will operate the units in accordance with public housing laws and regulations, including § 906.19. The main difference would be in the documentation of capacity to perform. on documents in the last year, 994 The NPRM proposed to eliminate the requirement for a replacement housing plan, as replacement housing is no longer required by law. The statement must describe the PHA's (and other entity's) past experience in carrying out homeownership programs for low-income families, and (if applicable) its reasons for considering such programs to have been successful. Davis-Bacon rates apply to rehabilitation and repair that does not qualify as nonroutine maintenance. The only exception to this requirement would be in the case of a public housing family currently residing in a unit to be sold, exercising their right of first refusal. PHFA offers counseling and education programs to homebuyers free of charge. (5) Must not transfer possession of the unit until the resident is relocated. For the reasons discussed in the preamble, HUD revises part 906 of title 24 to read as follows: Authority: Ownership interests that may be conveyed to a purchaser. This proposal must contain the following: (1) Property description. 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. PHFA offers homebuyers the opportunity to receive homebuyer counseling and education through its approved counseling agencies, as well as an online program. A PRE must agree that, with respect to any units it acquires under a homeownership program under this part, it will transfer ownership to the PHA if the PRE fails to resell the unit to a low-income family within 5 years of the PRE's acquisition of the unit. 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