24 C.F.R. §§ 982.625–982.641

§982.625. Homeownership option: General.

24 C.F.R. § 982.625

(a)

Applicability. The homeownership option is used to assist a family residing in a home purchased and owned by one or more members of the family.

(b)

Family status. A family assisted under the homeownership option may be a newly admitted or existing participant in the program.

(c)

Forms of homeownership assistance.

(1)

Allowable forms of homeownership assistance. A PHA may provide one of two forms of homeownership assistance for a family:

(i)

Monthly homeownership assistance payments; or

(ii)

A single downpayment assistance grant.

(2)

Prohibition against combining forms of homeownership assistance. A family may only receive one form of homeownership assistance. Accordingly, a family that includes a person who was an adult member of a family that previously received either of the two forms of homeownership assistance may not receive the other form of homeownership assistance from any PHA.

(d)

PHA choice to offer homeownership options.

(1)

The PHA may choose to offer either or both forms of homeownership assistance under this subpart, or choose not to offer either form of assistance. However, the PHA must offer either form of homeownership assistance if necessary as a reasonable accommodation for a person with disabilities in accordance with § 982.601(b)(3).

(2)

It is the sole responsibility of the PHA to determine whether it is reasonable to implement a homeownership program as a reasonable accommodation. The PHA will determine what is reasonable based on the specific circumstances and individual needs of the person with a disability. The PHA may determine that it is not reasonable to offer homeownership assistance as a reasonable accommodation in cases where the PHA has otherwise opted not to implement a homeownership program.

(e)

Family choice.

(1)

The family chooses whether to participate in the homeownership option if offered by the PHA.

(2)

If the PHA offers both forms of homeownership assistance, the family chooses which form of homeownership assistance to receive.

(f)

Live-in aide. The PHA must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and useable by persons with disabilities in accordance with part 8 of this title. (See § 982.316 concerning occupancy by a live-in aide.)

(g)

PHA capacity. The PHA must have the capacity to operate a successful Section 8 homeownership program. The PHA has the required capacity if it satisfies either paragraph (g)(1), (g)(2), or (g)(3) of this section.

(1)

The PHA establishes a minimum homeowner downpayment requirement of at least 3 percent of the purchase price for participation in its Section 8 homeownership program, and requires that at least one percent of the purchase price come from the family's personal resources;

(2)

The PHA requires that financing for purchase of a home under its Section 8 homeownership program—

(i)

Be provided, insured, or guaranteed by the state or Federal government;

(ii)

Comply with secondary mortgage market underwriting requirements; or

(iii)

Comply with generally accepted private sector underwriting standards; or

(3)

The PHA otherwise demonstrates in its Annual Plan that it has the capacity, or will acquire the capacity, to successfully operate a Section 8 homeownership program.

(h)

Recapture of homeownership assistance. A PHA shall not impose or enforce any requirement for the recapture of voucher homeownership assistance on the sale or refinancing of a home purchased with assistance under the homeownership option.

(i)

Applicable requirements. The following specify what regulatory provisions (under the heading “homeownership option”) are applicable to either or both forms of homeownership assistance (except as otherwise specifically provided):

(1)

Common provisions. The following provisions apply to both forms of homeownership assistance:

(i)

Section 982.625 (General);

(ii)

Section 982.626 (Initial requirements);

(iii)

Section 982.627 (Eligibility requirements for families);

(iv)

Section 982.628 (Eligible units);

(v)

Section 982.629 (Additional PHA requirements for family search and purchase);

(vi)

Section 982.630 (Homeownership counseling);

(vii)

Section 982.631 (Home inspections, contract of sale, and PHA disapproval of seller);

(viii)

Section 982.632 (Financing purchase of home; affordability of purchase);

(ix)

Section 982.636 (Portability);

(x)

Section 982.638 (Denial or termination of assistance for family); and

(xi)

Section 982.641 (Applicability of other requirements).

(2)

Monthly homeownership assistance payments. The following provisions only apply to homeownership assistance in the form of monthly homeownership assistance payments:

(i)

Section 982.633 (Continued assistance requirements; family obligations);

(ii)

Section 982.634 (Maximum term of homeownership assistance);

(iii)

Section 982.635 (Amount and distribution of monthly homeownership assistance payment);

(iv)

Section 982.637 (Move with continued tenant-based assistance); and

(v)

Section 982.639 (Administrative fees).

(3)

Downpayment assistance grant. The following provision only applies to homeownership assistance in the form of a downpayment assistance grant: Section 982.643 (Downpayment assistance grants).

Notes, amendments, and revision history

Amendments

[65 FR 55163, Sept. 12, 2000, as amended at 67 FR 64493, Oct. 18, 2002; 80 FR 8247, Feb. 17, 2015; 89 FR 38304, May 7, 2024]

Source

Source: 65 FR 55163, Sept. 12, 2000, unless otherwise noted.

Source

Source: 63 FR 23865, Apr. 30, 1998, unless otherwise noted.

Authority

Authority: 42 U.S.C. 1437f and 3535(d).

Source

Source: 59 FR 36682, July 18, 1994, unless otherwise noted.

Amendments

[65 FR 55163, Sept. 12, 2000, as amended at 67 FR 64493, Oct. 18, 2002; 80 FR 8247, Feb. 17, 2015; 89 FR 38304, May 7, 2024]

§982.626. Homeownership option: Initial requirements.

24 C.F.R. § 982.626

(a)

List of initial requirements. Before commencing homeownership assistance for a family, the PHA must determine that all of the following initial requirements have been satisfied:

(1)

The family is qualified to receive homeownership assistance (see § 982.627);

(2)

The unit is eligible (see § 982.628); and

(3)

The family has satisfactorily completed the PHA program of required pre-assistance homeownership counseling (see § 982.630).

(b)

Additional PHA requirements. Unless otherwise provided in this part, the PHA may limit homeownership assistance to families or purposes defined by the PHA, and may prescribe additional requirements for commencement of homeownership assistance for a family. Any such limits or additional requirements must be described in the PHA Administrative Plan.

(c)

Environmental requirements. The PHA is responsible for complying with the authorities listed in § 58.6 of this title requiring the purchaser to obtain and maintain flood insurance for units in special flood hazard areas, prohibiting assistance for acquiring units in the coastal barrier resources system, and requiring notification to the purchaser of units in airport runway clear zones and airfield clear zones. In the case of units not yet under construction at the time the family enters into the contract for sale, the additional environmental review requirements referenced in § 982.628(e) of this part also apply, and the PHA shall submit all relevant environmental information to the responsible entity or to HUD to assist in completion of those requirements.

Notes, amendments, and revision history

Amendments

[63 FR 23865, Apr. 30, 1998, as amended at 72 FR 59938, Oct. 22, 2007]

Source

Source: 65 FR 55163, Sept. 12, 2000, unless otherwise noted.

Source

Source: 63 FR 23865, Apr. 30, 1998, unless otherwise noted.

Authority

Authority: 42 U.S.C. 1437f and 3535(d).

Source

Source: 59 FR 36682, July 18, 1994, unless otherwise noted.

Amendments

[63 FR 23865, Apr. 30, 1998, as amended at 72 FR 59938, Oct. 22, 2007]

§982.627. Homeownership option: Eligibility requirements for families.

24 C.F.R. § 982.627

(a)

Determination whether family is qualified. The PHA may not provide homeownership assistance for a family unless the PHA determines that the family satisfies all of the following initial requirements at commencement of homeownership assistance for the family:

(1)

The family has been admitted to the Section 8 Housing Choice Voucher program, in accordance with subpart E of this part.

(2)

The family satisfies any first-time homeowner requirements (described in paragraph (b) of this section).

(3)

The family satisfies the minimum income requirement (described in paragraph (c) of this section).

(4)

The family satisfies the employment requirements (described in paragraph (d) of this section).

(5)

The family has not defaulted on a mortgage securing debt to purchase a home under the homeownership option (see paragraph (e) of this section).

(6)

Except for cooperative members who have acquired cooperative membership shares prior to commencement of homeownership assistance, no family member has a present ownership interest in a residence at the commencement of homeownership assistance for the purchase of any home.

(7)

Except for cooperative members who have acquired cooperative membership shares prior to the commencement of homeownership assistance, the family has entered a contract of sale in accordance with § 982.631(c).

(8)

The family also satisfies any other initial requirements established by the PHA (see § 982.626(b)). Any such additional requirements must be described in the PHA Administrative Plan.

(b)

First-time homeowner requirements. At commencement of homeownership assistance for the family, the family must be any of the following:

(1)

A first-time homeowner (defined at § 982.4);

(2)

A cooperative member (defined at § 982.4); or

(3)

A family of which a family member is a person with disabilities, and use of the homeownership option is needed as a reasonable accommodation so that the program is readily accessible to and usable by such person, in accordance with part 8 of this title.

(c)

Minimum income requirements.

(1)

At commencement of monthly homeownership assistance payments for the family, or at the time of a downpayment assistance grant for the family, the family must demonstrate that the annual income, as determined by the PHA in accordance with § 5.609 of this title, of the adult family members who will own the home at commencement of homeownership assistance is not less than:

(i)

In the case of a disabled family (as defined in § 5.403(b) of this title), the monthly Federal Supplemental Security Income (SSI) benefit for an individual living alone (or paying his or her share of food and housing costs) multiplied by twelve; or

(ii)

In the case of other families, the Federal minimum wage multiplied by 2,000 hours.

(2)

(i)

Except in the case of an elderly family or a disabled family (see the definitions of these terms at § 5.403(b) of this title), the PHA shall not count any welfare assistance received by the family in determining annual income under this section.

(ii)

The disregard of welfare assistance income under paragraph (c)(2)(i) of this section only affects the determination of minimum annual income used to determine if a family initially qualifies for commencement of homeownership assistance in accordance with this section, but does not affect:

(A)

The determination of income-eligibility for admission to the voucher program;

(B)

Calculation of the amount of the family's total tenant payment (gross family contribution); or

(C)

Calculation of the amount of homeownership assistance payments on behalf of the family.

(iii)

In the case of an elderly or disabled family, the PHA shall include welfare assistance for the adult family members who will own the home in determining if the family meets the minimum income requirement.

(3)

A PHA may establish a minimum income standard that is higher than those described in paragraph (c)(1) of this section for either or both types of families. However, a family that meets the applicable HUD minimum income requirement described in paragraph (c)(1) of this section, but not the higher standard established by the PHA shall be considered to satisfy the minimum income requirement if:

(i)

The family demonstrates that it has been pre-qualified or pre-approved for financing;

(ii)

The pre-qualified or pre-approved financing meets any PHA established requirements under § 982.632 for financing the purchase of the home (including qualifications of lenders and terms of financing); and

(iii)

The pre-qualified or pre-approved financing amount is sufficient to purchase housing that meets HQS in the PHA's jurisdiction.

(d)

Employment requirements.

(1)

Except as provided in paragraph (d)(2) of this section, the family must demonstrate that one or more adult members of the family who will own the home at commencement of homeownership assistance:

(i)

Is currently employed on a full-time basis (the term “full-time employment” means not less than an average of 30 hours per week); and

(ii)

Has been continuously so employed during the year before commencement of homeownership assistance for the family.

(2)

The PHA shall have discretion to determine whether and to what extent interruptions are considered to break continuity of employment during the year. The PHA may count successive employment during the year. The PHA may count self-employment in a business.

(3)

The employment requirement does not apply to an elderly family or a disabled family (see the definitions of these terms at § 5.403(b) of this title). Furthermore, if a family, other than an elderly family or a disabled family, includes a person with disabilities, the PHA shall grant an exemption from the employment requirement if the PHA determines that an exemption is needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities in accordance with part 8 of this title.

(4)

A PHA may not establish an employment requirement in addition to the employment standard established by this paragraph.

(e)

Prohibition against assistance to family that has defaulted. The PHA shall not commence homeownership assistance for a family that includes an individual who was an adult member of a family at the time when such family received homeownership assistance and defaulted on a mortgage securing debt incurred to purchase the home.

Notes, amendments, and revision history

Amendments

[65 FR 55163, Sept. 12, 2000, as amended at 67 FR 64493, Oct. 18, 2002; 80 FR 8247, Feb. 17, 2015]

Source

Source: 65 FR 55163, Sept. 12, 2000, unless otherwise noted.

Source

Source: 63 FR 23865, Apr. 30, 1998, unless otherwise noted.

Authority

Authority: 42 U.S.C. 1437f and 3535(d).

Source

Source: 59 FR 36682, July 18, 1994, unless otherwise noted.

Amendments

[65 FR 55163, Sept. 12, 2000, as amended at 67 FR 64493, Oct. 18, 2002; 80 FR 8247, Feb. 17, 2015]

§982.628. Homeownership option: Eligible units.

24 C.F.R. § 982.628

(a)

Initial requirements applicable to the unit. The PHA must determine that the unit satisfies all of the following requirements:

(1)

The unit is eligible. (See § 982.352. Paragraphs (a)(6) and (b) of § 982.352 do not apply.)

(2)

The unit is either a one-unit property (including a manufactured home) or a single dwelling unit in a cooperative or condominium.

(3)

The unit has been inspected by a PHA inspector and by an independent inspector designated by the family (see § 982.631).

(4)

The unit satisfies the HQS (see 24 CFR 5.703 and § 982.631).

(b)

Purchase of home where family will not own fee title to the real property. Homeownership assistance may be provided for the purchase of a home where the family will not own fee title to the real property on which the home is located, but only if:

(1)

The home is located on a permanent foundation; and

(2)

The family has the right to occupy the home site for at least forty years.

(c)

PHA disapproval of seller. The PHA may not commence homeownership assistance for occupancy of a home if the PHA has been informed (by HUD or otherwise) that the seller of the home is debarred, suspended, or subject to a limited denial of participation under 2 CFR part 2424.

(d)

PHA-owned units. A family may purchase a PHA-owned unit, as defined in § 982.4, with homeownership assistance only if the following conditions are satisfied:

(1)

The PHA must inform the family, both orally and in writing, that the family has the right to purchase any eligible unit and a PHA-owned unit is freely selected by the family without PHA pressure or steering;

(2)

The unit is not ineligible housing;

(3)

The PHA must obtain the services of an independent entity, as defined in § 982.4 and in accordance with § 982.352(b)(1)(v)(B), to perform the following PHA functions:

(i)

Inspection of the unit for compliance with the HQS, in accordance with § 982.631(a);

(ii)

Review of the independent inspection report, in accordance with § 982.631(b)(4);

(iii)

Review of the contract of sale, in accordance with § 982.631(c); and

(iv)

Determination of the reasonableness of the sales price and any PHA provided financing, in accordance with § 982.632 and other supplementary guidance established by HUD.

(e)

Units not yet under construction. Families may enter into contracts of sale for units not yet under construction at the time the family enters into the contract for sale. However, the PHA shall not commence homeownership assistance for the family for that unit, unless and until:

(1)

Either—

(i)

The responsible entity completed the environmental review procedures required by 24 CFR part 58, and HUD approved the environmental certification and request for release of funds prior to commencement of construction; or

(ii)

HUD performed an environmental review under 24 CFR part 50 and notified the PHA in writing of environmental approval of the site prior to commencement of construction;

(2)

Construction of the unit has been completed; and

(3)

The unit has passed the required HQS inspection (see § 982.631(a)) and independent inspection (see § 982.631(b)).

Notes, amendments, and revision history

Amendments

[65 FR 55163, Sept. 12, 2000, as amended at 67 FR 64494, Oct. 18, 2002; 67 FR 65865, Oct. 28, 2002; 67 FR 67522, Nov. 6, 2002; 72 FR 59938, Oct. 22, 2007; 72 FR 73496, Dec. 27, 2007; 88 FR 30504, May 11, 2023; 89 FR 38304, May 7, 2024]

Source

Source: 65 FR 55163, Sept. 12, 2000, unless otherwise noted.

Source

Source: 63 FR 23865, Apr. 30, 1998, unless otherwise noted.

Authority

Authority: 42 U.S.C. 1437f and 3535(d).

Source

Source: 59 FR 36682, July 18, 1994, unless otherwise noted.

Amendments

[65 FR 55163, Sept. 12, 2000, as amended at 67 FR 64494, Oct. 18, 2002; 67 FR 65865, Oct. 28, 2002; 67 FR 67522, Nov. 6, 2002; 72 FR 59938, Oct. 22, 2007; 72 FR 73496, Dec. 27, 2007; 88 FR 30504, May 11, 2023; 89 FR 38304, May 7, 2024]

§982.629. Homeownership option: Additional PHA requirements for family search and purchase.

24 C.F.R. § 982.629

(a)

The PHA may establish the maximum time for a family to locate a home, and to purchase the home.

(b)

The PHA may require periodic family reports on the family's progress in finding and purchasing a home.

(c)

If the family is unable to purchase a home within the maximum time established by the PHA, the PHA may issue the family a voucher to lease a unit or place the family's name on the waiting list for a voucher.

Notes, amendments, and revision history

Source

Source: 65 FR 55163, Sept. 12, 2000, unless otherwise noted.

Source

Source: 63 FR 23865, Apr. 30, 1998, unless otherwise noted.

Authority

Authority: 42 U.S.C. 1437f and 3535(d).

Source

Source: 59 FR 36682, July 18, 1994, unless otherwise noted.

§982.630. Homeownership option: Homeownership counseling.

24 C.F.R. § 982.630

(a)

Pre-assistance counseling. Before commencement of homeownership assistance for a family, the family must attend and satisfactorily complete the pre-assistance homeownership and housing counseling program required by the PHA (pre-assistance counseling).

(b)

Counseling topics. Suggested topics for the PHA-required pre-assistance counseling program include:

(1)

Home maintenance (including care of the grounds);

(2)

Budgeting and money management;

(3)

Credit counseling;

(4)

How to negotiate the purchase price of a home;

(5)

How to obtain homeownership financing and loan preapprovals, including a description of types of financing that may be available, and the pros and cons of different types of financing;

(6)

How to find a home, including information about homeownership opportunities, schools, and transportation in the PHA jurisdiction;

(7)

Advantages of purchasing a home in an area that does not have a high concentration of low-income families and how to locate homes in such areas;

(8)

Information on fair housing, including fair housing lending and local fair housing enforcement agencies; and

(9)

Information about the Real Estate Settlement Procedures Act (12 U.S.C. 2601 et seq.) (RESPA), state and Federal truth-in-lending laws, and how to identify and avoid loans with oppressive terms and conditions.

(c)

Local circumstances. The PHA may adapt the subjects covered in pre-assistance counseling (as listed in paragraph (b) of this section) to local circumstances and the needs of individual families.

(d)

Additional counseling. The PHA may also offer additional counseling after commencement of homeownership assistance (ongoing counseling). If the PHA offers a program of ongoing counseling for participants in the homeownership option, the PHA shall have discretion to determine whether the family is required to participate in the ongoing counseling.

(e)

HUD-certified housing counselor. Any homeownership counseling provided to families in connection with this section must be conducted by a HUD certified housing counselor working for an agency approved to participate in HUD's Housing Counseling Program.

Notes, amendments, and revision history

Amendments

[65 FR 55163, Sept. 12, 2000, as amended at 89 FR 38304, May 7, 2024]

Source

Source: 65 FR 55163, Sept. 12, 2000, unless otherwise noted.

Source

Source: 63 FR 23865, Apr. 30, 1998, unless otherwise noted.

Authority

Authority: 42 U.S.C. 1437f and 3535(d).

Source

Source: 59 FR 36682, July 18, 1994, unless otherwise noted.

Amendments

[65 FR 55163, Sept. 12, 2000, as amended at 89 FR 38304, May 7, 2024]

§982.631. Homeownership option: Home inspections, contract of sale, and PHA disapproval of seller.

24 C.F.R. § 982.631

(a)

HQS inspection by PHA. The PHA may not commence monthly homeownership assistance payments or provide a downpayment assistance grant for the family until the PHA has inspected the unit and has determined that the unit passes HQS.

(b)

Independent inspection.

(1)

The unit must also be inspected by an independent professional inspector selected by and paid by the family.

(2)

The independent inspection must cover major building systems and components, including foundation and structure, housing interior and exterior, and the roofing, plumbing, electrical, and heating systems. The independent inspector must be qualified to report on property conditions, including major building systems and components.

(3)

The PHA may not require the family to use an independent inspector selected by the PHA. The independent inspector may not be a PHA employee or contractor, or other person under control of the PHA. However, the PHA may establish standards for qualification of inspectors selected by families under the homeownership option.

(4)

The independent inspector must provide a copy of the inspection report both to the family and to the PHA. The PHA may not commence monthly homeownership assistance payments, or provide a downpayment assistance grant for the family, until the PHA has reviewed the inspection report of the independent inspector. Even if the unit otherwise complies with the HQS (and may qualify for assistance under the PHA's tenant-based rental voucher program), the PHA shall have discretion to disapprove the unit for assistance under the homeownership option because of information in the inspection report.

(c)

Contract of sale.

(1)

Before commencement of monthly homeownership assistance payments or receipt of a downpayment assistance grant, a member or members of the family must enter into a contract of sale with the seller of the unit to be acquired by the family. The family must give the PHA a copy of the contract of sale (see also § 982.627(a)(7)).

(2)

The contract of sale must—

(i)

Specify the price and other terms of sale by the seller to the purchaser.

(ii)

Provide that the purchaser will arrange for a pre-purchase inspection of the dwelling unit by an independent inspector selected by the purchaser.

(iii)

Provide that the purchaser is not obligated to purchase the unit unless the inspection is satisfactory to the purchaser.

(iv)

Provide that the purchaser is not obligated to pay for any necessary repairs.

(3)

In addition to the requirements contained in paragraph (c)(2) of this section, a contract for the sale of units not yet under construction at the time the family is to enter into the contract for sale must also provide that:

(i)

The purchaser is not obligated to purchase the unit unless an environmental review has been performed and the site has received environmental approval prior to commencement of construction in accordance with 24 CFR 982.628.

(ii)

The construction will not commence until the environmental review has been completed and the seller has received written notice from the PHA that environmental approval has been obtained. Conduct of the environmental review may not necessarily result in environmental approval, and environmental approval may be conditioned on the contracting parties' agreement to modifications to the unit design or to mitigation actions.

(iii)

Commencement of construction in violation of paragraph (c)(3)(ii) of this section voids the purchase contract and renders homeownership assistance under 24 CFR part 982 unavailable for purchase of the unit.

(d)

PHA disapproval of seller. In its administrative discretion, the PHA may deny approval of a seller for any reason provided for disapproval of an owner in § 982.306(c).

Notes, amendments, and revision history

Amendments

[65 FR 55163, Sept. 12, 2000, as amended at 67 FR 64494, Oct. 18, 2002; 72 FR 59938, Oct. 22, 2007; 72 FR 73497, Dec. 27, 2007; 80 FR 8247, Feb. 17, 2015]

Source

Source: 65 FR 55163, Sept. 12, 2000, unless otherwise noted.

Source

Source: 63 FR 23865, Apr. 30, 1998, unless otherwise noted.

Authority

Authority: 42 U.S.C. 1437f and 3535(d).

Source

Source: 59 FR 36682, July 18, 1994, unless otherwise noted.

Amendments

[65 FR 55163, Sept. 12, 2000, as amended at 67 FR 64494, Oct. 18, 2002; 72 FR 59938, Oct. 22, 2007; 72 FR 73497, Dec. 27, 2007; 80 FR 8247, Feb. 17, 2015]

§982.632. Homeownership option: Financing purchase of home; affordability of purchase.

24 C.F.R. § 982.632

(a)

The PHA may establish requirements for financing purchase of a home to be assisted under the homeownership option. Such PHA requirements may include requirements concerning qualification of lenders (for example, prohibition of seller financing or case-by-case approval of seller financing), or concerning terms of financing (for example, a prohibition of balloon payment mortgages, establishment of a minimum homeowner equity requirement from personal resources, or provisions required to protect borrowers against high cost loans or predatory loans). A PHA may not require that families acquire financing from one or more specified lenders, thereby restricting the family's ability to secure favorable financing terms.

(b)

If the purchase of the home is financed with FHA mortgage insurance, such financing is subject to FHA mortgage insurance requirements.

(c)

The PHA may establish requirements or other restrictions concerning debt secured by the home.

(d)

The PHA may review lender qualifications and the loan terms before authorizing homeownership assistance. The PHA may disapprove proposed financing, refinancing or other debt if the PHA determines that the debt is unaffordable, or if the PHA determines that the lender or the loan terms do not meet PHA qualifications. In making this determination, the PHA may take into account other family expenses, such as child care, unreimbursed medical expenses, homeownership expenses, and other family expenses as determined by the PHA.

(e)

All PHA financing or affordability requirements must be described in the PHA Administrative Plan.

Notes, amendments, and revision history

Amendments

[65 FR 55163, Sept. 12, 2000, as amended at 66 FR 33613, June 22, 2001]

Source

Source: 65 FR 55163, Sept. 12, 2000, unless otherwise noted.

Source

Source: 63 FR 23865, Apr. 30, 1998, unless otherwise noted.

Authority

Authority: 42 U.S.C. 1437f and 3535(d).

Source

Source: 59 FR 36682, July 18, 1994, unless otherwise noted.

Amendments

[65 FR 55163, Sept. 12, 2000, as amended at 66 FR 33613, June 22, 2001]

§982.633. Homeownership option: Continued assistance requirements; Family obligations.

24 C.F.R. § 982.633

(a)

Occupancy of home. Homeownership assistance may only be paid while the family is residing in the home. If the family moves out of the home, the PHA may not continue homeownership assistance after the month when the family moves out. The family or lender is not required to refund to the PHA the homeownership assistance for the month when the family moves out.

(b)

Family obligations. The family must comply with the following obligations.

(1)

Ongoing counseling. To the extent required by the PHA, the family must attend and complete ongoing homeownership and housing counseling.

(2)

Compliance with mortgage. The family must comply with the terms of any mortgage securing debt incurred to purchase the home (or any refinancing of such debt).

(3)

Prohibition against conveyance or transfer of home.

(i)

So long as the family is receiving homeownership assistance, use and occupancy of the home is subject to § 982.551(h) and (i).

(ii)

The family may grant a mortgage on the home for debt incurred to finance purchase of the home or any refinancing of such debt.

(iii)

Upon death of a family member who holds, in whole or in part, title to the home or ownership of cooperative membership shares for the home, homeownership assistance may continue pending settlement of the decedent's estate, notwithstanding transfer of title by operation of law to the decedent's executor or legal representative, so long as the home is solely occupied by remaining family members in accordance with § 982.551(h).

(4)

Supplying required information.

(i)

The family must supply required information to the PHA in accordance with § 982.551(b).

(ii)

In addition to other required information, the family must supply any information as required by the PHA or HUD concerning:

(A)

Any mortgage or other debt incurred to purchase the home, and any refinancing of such debt (including information needed to determine whether the family has defaulted on the debt, and the nature of any such default), and information on any satisfaction or payment of the mortgage debt;

(B)

Any sale or other transfer of any interest in the home; or

(C)

The family's homeownership expenses.

(5)

Notice of move-out. The family must notify the PHA before the family moves out of the home.

(6)

Notice of mortgage default. The family must notify the PHA if the family defaults on a mortgage securing any debt incurred to purchase the home.

(7)

Prohibition on ownership interest on second residence. During the time the family receives homeownership assistance under this subpart, no family member may have any ownership interest in any other residential property.

(8)

Additional PHA requirements. The PHA may establish additional requirements for continuation of homeownership assistance for the family (for example, a requirement for post-purchase homeownership counseling or for periodic unit inspections while the family is receiving homeownership assistance). The family must comply with any such requirements.

(9)

Other family obligations. The family must comply with the obligations of a participant family described in § 982.551. However, the following provisions do not apply to assistance under the homeownership option: § 982.551(c), (d), (e), (f), (g) and (j).

(c)

Statement of homeowner obligations. Before commencement of homeownership assistance, the family must execute a statement of family obligations in the form prescribed by HUD. In the statement, the family agrees to comply with all family obligations under the homeownership option.

Notes, amendments, and revision history

Source

Source: 65 FR 55163, Sept. 12, 2000, unless otherwise noted.

Source

Source: 63 FR 23865, Apr. 30, 1998, unless otherwise noted.

Authority

Authority: 42 U.S.C. 1437f and 3535(d).

Source

Source: 59 FR 36682, July 18, 1994, unless otherwise noted.

§982.634. Homeownership option: Maximum term of homeownership assistance.

24 C.F.R. § 982.634

(a)

Maximum term of assistance. Except in the case of a family that qualifies as an elderly or disabled family (see paragraph (c) of this section), the family members described in paragraph (b) of this section shall not receive homeownership assistance for more than:

(1)

Fifteen years, if the initial mortgage incurred to finance purchase of the home has a term of 20 years or longer; or

(2)

Ten years, in all other cases.

(b)

Applicability of maximum term. The maximum term described in paragraph (a) of this section applies to any member of the family who:

(1)

Has an ownership interest in the unit during the time that homeownership payments are made; or

(2)

Is the spouse of any member of the household who has an ownership interest in the unit during the time homeownership payments are made.

(c)

Exception for elderly and disabled families.

(1)

As noted in paragraph (a) of this section, the maximum term of assistance does not apply to elderly and disabled families.

(2)

In the case of an elderly family, the exception only applies if the family qualifies as an elderly family at the start of homeownership assistance. In the case of a disabled family, the exception applies if at any time during receipt of homeownership assistance the family qualifies as a disabled family.

(3)

If, during the course of homeownership assistance, the family ceases to qualify as a disabled or elderly family, the maximum term becomes applicable from the date homeownership assistance commenced. However, such a family must be provided at least 6 months of homeownership assistance after the maximum term becomes applicable (provided the family is otherwise eligible to receive homeownership assistance in accordance with this part).

(d)

Assistance for different homes or PHAs. If the family has received such assistance for different homes, or from different PHAs, the total of such assistance terms is subject to the maximum term described in paragraph (a) of this section.

Notes, amendments, and revision history

Source

Source: 65 FR 55163, Sept. 12, 2000, unless otherwise noted.

Source

Source: 63 FR 23865, Apr. 30, 1998, unless otherwise noted.

Authority

Authority: 42 U.S.C. 1437f and 3535(d).

Source

Source: 59 FR 36682, July 18, 1994, unless otherwise noted.

§982.635. Homeownership option: Amount and distribution of monthly homeownership assistance payment.

24 C.F.R. § 982.635

(a)

Amount of monthly homeownership assistance payment. While the family is residing in the home, the PHA shall pay a monthly homeownership assistance payment on behalf of the family that is equal to the lower of:

(1)

The payment standard minus the total tenant payment; or

(2)

The family's monthly homeownership expenses minus the total tenant payment.

(b)

Payment standard for family.

(1)

The payment standard for a family is the lower of—

(i)

The payment standard for the family unit size; or

(ii)

The payment standard for the size of the home.

(2)

If the home is located in an exception payment standard area, the PHA must use the appropriate payment standard for the exception payment standard area.

(3)

The payment standard amount may not be lower than what the payment standard amount was at commencement of homeownership assistance.

(4)

The PHA must use the same payment standard schedule, payment standard amounts, and subsidy standards pursuant to §§ 982.402 and 982.503 for the homeownership option as for the rental voucher program.

(c)

Determination of homeownership expenses.

(1)

The PHA shall adopt policies for determining the amount of homeownership expenses to be allowed by the PHA in accordance with HUD requirements.

(2)

Homeownership expenses for a homeowner (other than a cooperative member) may only include amounts allowed by the PHA to cover:

(i)

Principal and interest on initial mortgage debt, any refinancing of such debt, and any mortgage insurance premium incurred to finance purchase of the home;

(ii)

Real estate taxes and public assessments on the home;

(iii)

Home insurance;

(iv)

The PHA allowance for maintenance expenses;

(v)

The PHA allowance for costs of major repairs and replacements;

(vi)

The PHA utility allowance for the home;

(vii)

Principal and interest on mortgage debt incurred to finance costs for major repairs, replacements or improvements for the home. If a member of the family is a person with disabilities, such debt may include debt incurred by the family to finance costs needed to make the home accessible for such person, if the PHA determines that allowance of such costs as homeownership expenses is needed as a reasonable accommodation so that the homeownership option is readily accessible to and usable by such person, in accordance with parts 8 and 100 of this title; and

(viii)

Land lease payments (where a family does not own fee title to the real property on which the home is located; see § 982.628(b)).

(3)

Homeownership expenses for a cooperative member may only include amounts allowed by the PHA to cover:

(i)

The cooperative charge under the cooperative occupancy agreement including payment for real estate taxes and public assessments on the home;

(ii)

Principal and interest on initial debt incurred to finance purchase of cooperative membership shares and any refinancing of such debt;

(iii)

Home insurance;

(iv)

The PHA allowance for maintenance expenses;

(v)

The PHA allowance for costs of major repairs and replacements;

(vi)

The PHA utility allowance for the home; and

(vii)

Principal and interest on debt incurred to finance major repairs, replacements or improvements for the home. If a member of the family is a person with disabilities, such debt may include debt incurred by the family to finance costs needed to make the home accessible for such person, if the PHA determines that allowance of such costs as homeownership expenses is needed as a reasonable accommodation so that the homeownership option is readily accessible to and usable by such person, in accordance with parts 8 and 100 of this title.

(4)

If the home is a cooperative or condominium unit, homeownership expenses may also include cooperative or condominium operating charges or maintenance fees assessed by the condominium or cooperative homeowner association.

(d)

Payment to lender or family. The PHA must pay homeownership assistance payments either:

(1)

Directly to the family or;

(2)

At the discretion of the PHA, to a lender on behalf of the family. If the assistance payment exceeds the amount due to the lender, the PHA must pay the excess directly to the family.

(e)

Automatic termination of homeownership assistance. Homeownership assistance for a family terminates automatically 180 calendar days after the last homeownership assistance payment on behalf of the family. However, a PHA has the discretion to grant relief from this requirement in those cases where automatic termination would result in extreme hardship for the family.

Notes, amendments, and revision history

Amendments

[65 FR 55163, Sept. 12, 2000, as amended at 67 FR 64494, Oct. 18, 2002; 89 FR 38304, May 7, 2024]

Source

Source: 65 FR 55163, Sept. 12, 2000, unless otherwise noted.

Source

Source: 63 FR 23865, Apr. 30, 1998, unless otherwise noted.

Authority

Authority: 42 U.S.C. 1437f and 3535(d).

Source

Source: 59 FR 36682, July 18, 1994, unless otherwise noted.

Amendments

[65 FR 55163, Sept. 12, 2000, as amended at 67 FR 64494, Oct. 18, 2002; 89 FR 38304, May 7, 2024]

§982.636. Homeownership option: Portability.

24 C.F.R. § 982.636

(a)

General. A family may qualify to move outside the initial PHA jurisdiction with continued homeownership assistance under the voucher program in accordance with this section.

(b)

Portability of homeownership assistance. Subject to § 982.353(b) and (c), § 982.552, and § 982.553, a family determined eligible for homeownership assistance by the initial PHA may purchase a unit outside of the initial PHA's jurisdiction, if the receiving PHA is administering a voucher homeownership program and is accepting new homeownership families.

(c)

Applicability of Housing Choice Voucher program portability procedures. In general, the portability procedures described in §§ 982.353 and 982.355 apply to the homeownership option and the administrative responsibilities of the initial and receiving PHA are not altered except that some administrative functions (e.g., issuance of a voucher or execution of a tenancy addendum) do not apply to the homeownership option.

(d)

Family and PHA responsibilities. The family must attend the briefing and counseling sessions required by the receiving PHA. The receiving PHA will determine whether the financing for, and the physical condition of the unit, are acceptable. The receiving PHA must promptly notify the initial PHA if the family has purchased an eligible unit under the program, or if the family is unable to purchase a home within the maximum time established by the PHA.

(e)

Continued assistance under § 982.637. Such continued assistance under portability procedures is subject to § 982.637.

Notes, amendments, and revision history

Amendments

[65 FR 55163, Sept. 12, 2000, as amended at 80 FR 8247, Feb. 17, 2015]

Source

Source: 65 FR 55163, Sept. 12, 2000, unless otherwise noted.

Source

Source: 63 FR 23865, Apr. 30, 1998, unless otherwise noted.

Authority

Authority: 42 U.S.C. 1437f and 3535(d).

Source

Source: 59 FR 36682, July 18, 1994, unless otherwise noted.

Amendments

[65 FR 55163, Sept. 12, 2000, as amended at 80 FR 8247, Feb. 17, 2015]

§982.637. Homeownership option: Move with continued tenant-based assistance.

24 C.F.R. § 982.637

(a)

Move to new unit.

(1)

A family receiving homeownership assistance may move to a new unit with continued tenant-based assistance in accordance with this section. The family may move either with voucher rental assistance (in accordance with rental assistance program requirements) or with voucher homeownership assistance (in accordance with homeownership option program requirements).

(2)

The PHA may not commence continued tenant-based assistance for occupancy of the new unit so long as any family member owns any title or other interest in the prior home. However, when the family or a member of the family is or has been the victim of domestic violence, dating violence, sexual assault, or stalking, as provided in 24 CFR part 5, subpart L (Protection for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking), and the move is needed to protect the health or safety of the family or family member (or any family member has been the victim of a sexual assault that occurred on the premises during the 90-calendar-day period preceding the family's request to move), such family or family member may be assisted with continued tenant-based assistance even if such family or family member owns any title or other interest in the prior home.

(3)

The PHA may establish policies that prohibit more than one move by the family during any one-year period. However, these policies do not apply when the family or a member of the family is or has been the victim of domestic violence, dating violence, sexual assault, or stalking, as provided in 24 CFR part 5, subpart L, and the move is needed to protect the health or safety of the family or family member, or any family member has been the victim of a sexual assault that occurred on the premises during the 90-calendar-day period preceding the family's request to move.

(b)

Requirements for continuation of homeownership assistance. The PHA must determine that all initial requirements listed in § 982.626 (including the environmental requirements with respect to a unit not yet under construction) have been satisfied if a family that has received homeownership assistance wants to move to such a unit with continued homeownership assistance. However, the following requirements do not apply:

(1)

The requirement for pre-assistance counseling (§ 982.630) is not applicable. However, the PHA may require that the family complete additional counseling (before or after moving to a new unit with continued assistance under the homeownership option).

(2)

The requirement that a family must be a first-time homeowner (§ 982.627) is not applicable.

(c)

When PHA may deny permission to move with continued assistance. The PHA may deny permission to move to a new unit with continued voucher assistance as follows:

(1)

Lack of funding to provide continued assistance. The PHA may deny permission to move with continued rental or homeownership assistance if the PHA determines that it does not have sufficient funding to provide continued assistance. The PHA must provide written notification to the local HUD Office within 10 business days of determining it is necessary to deny moves based on insufficient funding.

(2)

Termination or denial of assistance under § 982.638. At any time, the PHA may deny permission to move with continued rental or homeownership assistance in accordance with § 982.638.

Notes, amendments, and revision history

Amendments

[63 FR 23865, Apr. 30, 1998, as amended at 72 FR 59938, Oct. 22, 2007; 80 FR 50575, Aug. 20, 2015; 81 FR 80817, Nov. 16, 2016]

Source

Source: 65 FR 55163, Sept. 12, 2000, unless otherwise noted.

Source

Source: 63 FR 23865, Apr. 30, 1998, unless otherwise noted.

Authority

Authority: 42 U.S.C. 1437f and 3535(d).

Source

Source: 59 FR 36682, July 18, 1994, unless otherwise noted.

Amendments

[63 FR 23865, Apr. 30, 1998, as amended at 72 FR 59938, Oct. 22, 2007; 80 FR 50575, Aug. 20, 2015; 81 FR 80817, Nov. 16, 2016]

§982.638. Homeownership option: Denial or termination of assistance for family.

24 C.F.R. § 982.638

(a)

General. The PHA shall terminate homeownership assistance for the family, and shall deny voucher rental assistance for the family, in accordance with this section.

(b)

Denial or termination of assistance under basic voucher program. At any time, the PHA may deny or terminate homeownership assistance in accordance with § 982.552 (Grounds for denial or termination of assistance) or § 982.553 (Crime by family members).

(c)

Failure to comply with family obligations. The PHA may deny or terminate assistance for violation of participant obligations described in § 982.551 or § 982.633.

(d)

Mortgage default. The PHA must terminate voucher homeownership assistance for any member of family receiving homeownership assistance that is dispossessed from the home pursuant to a judgment or order of foreclosure on any mortgage (whether FHA-insured or non-FHA) securing debt incurred to purchase the home, or any refinancing of such debt. The PHA, in its discretion, may permit the family to move to a new unit with continued voucher rental assistance. However, the PHA must deny such permission, if:

(1)

The family defaulted on an FHA-insured mortgage; and

(2)

The family fails to demonstrate that—

(i)

The family has conveyed, or will convey, title to the home, as required by HUD, to HUD or HUD's designee; and

(ii)

The family has moved, or will move, from the home within the period established or approved by HUD.

Notes, amendments, and revision history

Amendments

[65 FR 55163, Sept. 12, 2000, as amended at 66 FR 33613, June 22, 2001]

Source

Source: 65 FR 55163, Sept. 12, 2000, unless otherwise noted.

Source

Source: 63 FR 23865, Apr. 30, 1998, unless otherwise noted.

Authority

Authority: 42 U.S.C. 1437f and 3535(d).

Source

Source: 59 FR 36682, July 18, 1994, unless otherwise noted.

Amendments

[65 FR 55163, Sept. 12, 2000, as amended at 66 FR 33613, June 22, 2001]

§982.639. Homeownership option: Administrative fees.

24 C.F.R. § 982.639

The ongoing administrative fee described in § 982.152(b) is paid to the PHA for each month that homeownership assistance is paid by the PHA on behalf of the family.

Notes, amendments, and revision history

Source

Source: 65 FR 55163, Sept. 12, 2000, unless otherwise noted.

Source

Source: 63 FR 23865, Apr. 30, 1998, unless otherwise noted.

Authority

Authority: 42 U.S.C. 1437f and 3535(d).

Source

Source: 59 FR 36682, July 18, 1994, unless otherwise noted.

§982.641. Homeownership option: Applicability of other requirements.

24 C.F.R. § 982.641

(a)

General. The following types of provisions (located in other subparts of this part) do not apply to assistance under the homeownership option:

(1)

Any provisions concerning the Section 8 owner or the HAP contract between the PHA and owner;

(2)

Any provisions concerning the assisted tenancy or the lease between the family and the owner;

(3)

Any provisions concerning PHA approval of the assisted tenancy;

(4)

Any provisions concerning rent to owner or reasonable rent; and

(5)

Any provisions concerning the issuance or term of voucher.

(b)

Subpart G requirements. The following provisions of subpart G of this part do not apply to assistance under the homeownership option:

(1)

Section 982.302 (Issuance of voucher; Requesting PHA approval of assisted tenancy);

(2)

Section 982.303 (Term of voucher);

(3)

Section 982.305 (PHA approval of assisted tenancy);

(4)

Section 982.306 (PHA disapproval of owner) (except that a PHA may disapprove a seller for any reason described in paragraph (c), see § 982.631(d)).

(5)

Section 982.307 (Tenant screening);

(6)

Section 982.308 (Lease and tenancy);

(7)

Section 982.309 (Term of assisted tenancy);

(8)

Section 982.310 (Owner termination of tenancy);

(9)

Section 982.311 (When assistance is paid) (except that § 982.311(c)(3) is applicable to assistance under the homeownership option);

(10)

Section 982.313 (Security deposit: Amounts owed by tenant); and

(11)

Section 982.354 (Move with continued tenant-based assistance).

(c)

Subpart H requirements. The following provisions of subpart H of this part do not apply to assistance under the homeownership option:

(1)

Section 982.352(a)(6) (Prohibition of owner-occupied assisted unit);

(2)

Section 982.352(b) (PHA-owned housing); and

(3)

Those provisions of § 982.353 (Where family can lease a unit with tenant-based assistance) and § 982.355 (Portability: Administration by receiving PHA) that are inapplicable per § 982.636;

(d)

Subpart I requirements. The following provisions of subpart I of this part do not apply to assistance under the homeownership option:

(1)

Section 982.403 (Terminating HAP contract when unit is too small);

(2)

Section 982.404 (Maintenance: Owner and family responsibility; PHA remedies);

(3)

Section 982.405 (PHA unit inspection); and

(4)

Section 982.406 (Use of alternative inspections).

(e)

Subpart J requirements. The requirements of subpart J of this part (Housing Assistance Payments Contract and Owner Responsibility) (§§ 982.451-456) do not apply to assistance under the homeownership option.

(f)

Subpart K requirements. Except for those sections listed below, the requirements of subpart K of this part (Rent and Housing Assistance Payment) (§§ 982.501-521) do not apply to assistance under the homeownership option:

(1)

Section 982.503 (Voucher tenancy: Payment standard amount and schedule);

(2)

Section 982.516 (Family income and composition: Regular and interim reexaminations); and

(3)

Section 982.517 (Utility allowance schedule), except that § 982.517(d) does not apply because the utility allowance is always based on the size of the home bought by the family with homeownership assistance.

(g)

Subpart L requirements. The following provisions of subpart L of this part do not apply to assistance under the homeownership option:

(1)

Section 982.551(c) (HQS breach caused by family);

(2)

Section 982.551(d) (Allowing PHA inspection);

(3)

Section 982.551(e) (Violation of lease);

(4)

Section 982.551(g) (Owner eviction notice); and

(5)

Section 982.551(j) (Interest in unit).

(h)

Subpart M requirements. The following provisions of subpart M of this part do not apply to assistance under the homeownership option:

(1)

Sections 982.602-982.619; and

(2)

Sections 982.622-982.624.

Notes, amendments, and revision history

Amendments

[65 FR 55163, Sept. 12, 2000, as amended at 67 FR 64494, Oct. 18, 2002; 80 FR 8247, Feb. 17, 2015; 80 FR 50575, Aug. 20, 2015; 89 FR 38304, May 7, 2024]

Source

Source: 65 FR 55163, Sept. 12, 2000, unless otherwise noted.

Source

Source: 63 FR 23865, Apr. 30, 1998, unless otherwise noted.

Authority

Authority: 42 U.S.C. 1437f and 3535(d).

Source

Source: 59 FR 36682, July 18, 1994, unless otherwise noted.

Amendments

[65 FR 55163, Sept. 12, 2000, as amended at 67 FR 64494, Oct. 18, 2002; 80 FR 8247, Feb. 17, 2015; 80 FR 50575, Aug. 20, 2015; 89 FR 38304, May 7, 2024]