§ 26-180Introduction.
§ 26-181Single room occupancy. [24 CFR 982.602]
§ 26-182Congregate housing. [24 CFR 982.606]
§ 26-183Group homes. [24 CFR 982.610, 982.612]
§ 26-184Shared housing. [24 CFR 982.615]
§ 26-185Cooperative housing. [24 CFR 982.619]
§ 26-186Manufactured homes. [24 CFR 982.620]
§ 26-187Homeownership. [24 CFR 982.625]
HUD has determined that there is not a demand for SROs in this area. Therefore, a single person may not reside in an SRO housing unit.
An elderly person or a person with disabilities may reside in a congregate housing unit.
The WHA may approve a family member or live-in aide to reside with the elderly person or person with disabilities.
The WHA will approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities.
Congregate housing lease and HAP contract. [24 CFR 982.607]
For congregate housing, there will be a separate lease and HAP contract for each assisted family.
Unless there is a live-in aide, the payment standard for a family that resides in a congregate housing unit is the zero-bedroom payment standard on the WHA payment standard schedule.
However, if there are two or more rooms in the unit (not including kitchen or sanitary facilities), the payment standard for a family that resides in a congregate housing unit is the one-bedroom payment standard amount.
If there is a live-in aide, the live-in aide will be counted in determining the family unit size.
Housing quality standards. The WHA will ensure that all congregate housing units approved for the program are in compliance with all of the housing quality standards for congregate housing as regulated in 24 CFR 982.609.
A group home must be licensed, certified, or otherwise approved in writing by the state or the state's licensing department.
An elderly person or a person with disabilities may reside in a state-approved group home. If approved by the WHA, a live-in aide may reside with a person with disabilities.
The WHA must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. Except for a live-in aide, all residents of a group home must be elderly persons or persons with disabilities.
The WHA will not approve assistance for a person to live in a group home if file documentation indicates that the person is in need of continual medical or nursing care.
No more than 12 persons may reside in a group home. This limit covers all persons who reside in the unit, including assisted and unassisted residents and any live-in aide.
Group home lease and HAP contract [24 CFR 982.611]. There will be a separate HAP contract and lease for each assisted person living in a group home. For a group home, the term "pro rata portion" means that which is derived by dividing the number of persons in the assisted household by the total number of residents (assisted and unassisted) residing in the group home. The number of persons in the assisted household equals one assisted person plus any WHA-approved live-in aide.
Group home rent and HAP contract [24 CFR 982.613].
The rent to owner for an assisted person may not exceed the pro rata portion of the reasonable rent for the group home.
The reasonable rent for a group home is determined in accordance with 24 CFR 982.503. In determining reasonable rent, the WHA will consider whether sanitary facilities and facilities for food preparation and service are common facilities or private.
Maximum subsidy.
Unless there is a live-in aide, the family unit size is one bedroom. If there is a live-in aide, the live-in aide will be counted in determining the family unit size.
The payment standard for a person who resides in a group home is the lower of the payment standard for the family unit size or the pro rata portion of the payment standard amount on the WHA payment standard schedule for the group home size.
Utility allowance. The utility allowance for each assisted person residing in a group home is the pro rata portion of the utility allowance for the group home unit size.
Housing quality standards. The WHA will ensure that all group home units approved for the program are in compliance with all of the housing quality standards for group homes as regulated in 24 CFR 982.614.
Occupancy.
An assisted family may reside in shared housing. In shared housing, an assisted family may share a unit with another resident or residents of a unit. The unit may be a house or an apartment.
The WHA may approve a live-in aide to reside with a family in order to care for a person with a disability. The WHA must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities.
Other persons who are assisted or not assisted under the tenant-based program may reside in a shared housing unit. The owner of a shared housing unit may reside in the unit.
A resident owner may enter into a HAP contract with the WHA. However, housing assistance may not be paid on behalf of an owner. The WHA will not approve assistance for a person or family that is related by blood or marriage to a resident owner.
There will be a separate housing assistance payment contract and lease for each assisted family residing in a shared housing unit.
Rent and HAP contract.
For shared housing, the term "pro rata portion" means the ratio derived by dividing the number of bedrooms in the private space available for occupancy by a family by the total number of bedrooms in the unit. For example, for a family entitled to occupy three bedrooms in a five-bedroom unit, the ratio would be 3/5.
Maximum subsidy.
For a family that resides in a shared housing unit the payment standard is the lower of the payment standard amount on the WHA payment standard schedule for the family unit size or the pro rata portion of the payment standard amount on the WHA payment standard for the shared housing unit size.
If the WHA approves a live-in aide, the live-in aide will be counted in determining the family unit size.
Utility allowance. The utility allowance for an assisted family living in shared housing is the pro rata portion of the utility allowance for the shared housing unit.
Housing quality standards. The WHA will ensure that all shared housing units approved for the program are in compliance with all of the housing quality standards for shared housing as regulated in 24 CFR 982.618.
The WHA will approve a family living in cooperative housing if it is determined that assistance under the program will help maintain affordability of the cooperative unit for low-income families The WHA will not approve assistance for a family in cooperative housing until the WHA has also determined that the cooperative has adopted requirements to maintain continued affordability for low-income families after transfer of a cooperative member's interest in a cooperative unit (such as a sale of the resident's share in a cooperative corporation).
The reasonable rent in cooperative housing is determined in accordance with Article XI, Owner Rents, Rent Reasonableness, and Payment Standards. For cooperative housing, the rent to owner is the monthly carrying charge under the occupancy agreement/lease between the member and the cooperative.
The carrying charge consists of the amount assessed to the member by the cooperative for occupancy of the housing. It includes the member's share of the cooperative's debt service, operating expenses, and necessary payments to cooperative reserve funds. However, the carrying charge does not include down payments or other payments to purchase the cooperative unit or to amortize a loan to the family for this purpose. Gross rent is the carrying charge plus any utility.
For a cooperative, rent adjustments are applied to the carrying charge as determined in Article XI, Owner Rents, Rent Reasonableness, and Payment Standards.
The lease and other appropriate documents will stipulate that the monthly carrying charge is subject to Section 8 limitations on rent to owner. The housing assistance payment will be determined in accordance with the guidelines in Article XI, Owner Rents, Rent Reasonableness, and Payment Standards.
The WHA may approve a live-in aide to reside with the family to care for a person with disabilities. The WHA will approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. If the WHA approves a live-in aide, the live-in aide will be counted when determining the family unit size.
The WHA will permit a family to lease a manufactured home and space with assistance under the program. The WHA will not provide assistance for a family that owns the manufactured home and leases only the space.
Housing quality standards [24 CFR 982.621].
A manufactured home must meet all the HQS requirements outlined in Article X, Housing Quality Standards and Inspections, and regulated by 24 CFR 982.401. In addition, the manufactured home also must meet the following requirements:
A manufactured home must be placed on the site in a stable manner and must be free from hazards such as sliding or wind damage.
A manufactured home must be securely anchored by a tie-down device that distributes and transfers the loads imposed by the unit to appropriate ground anchors to resist wind overturning and sliding.
General.
The homeownership option is used to assist a family residing in a home purchased and owned by one or more members of the family.
The WHA must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities.
The WHA may make homeownership available to all who qualify or restrict homeownership to families or purposes defined by the WHA. The WHA may also limit the number of families assisted with homeownership.
The WHA may provide homeownership assistance in the form of monthly payments or as a down payment assistance grant. The WHA may choose to offer either or both forms, or may choose not to offer homeownership assistance. If the WHA offers both forms of assistance, the family chooses which form to receive.
The WHA must offer either form of assistance if necessary as a reasonable accommodation. However, the WHA may determine that homeownership assistance is not a reasonable accommodation if the WHA has otherwise opted not to implement a homeownership program.
A family may receive only one form of homeownership assistance. A family that includes a person who was an adult member of a family that previously received either form of homeownership assistance may not receive the other form from any WHA.
The WHA will offer monthly homeownership assistance payments to qualified families according to the policies contained in this article.
Monthly homeownership assistance payments. The WHA will offer the monthly homeownership assistance option to all applicant and participant families who meet the eligibility requirements listed below.
Monthly homeownership assistance: eligibility requirements [24 CFR 982.627].
The family must meet all of the requirements listed below before the commencement of homeownership assistance.
The family must be eligible for the Housing Choice Voucher Program.
The family must qualify as a first-time homeowner, or may be a cooperative member.
The family must meet the federal minimum income requirement. The family must have a gross annual income equal to the federal minimum wage multiplied by 2,000, based on the income of adult family members who will own the home.
For elderly or disabled families, the minimum income requirement is equal to the current SSI monthly payment for an individual living alone multiplied by 12.
Welfare assistance payments for adult family members who will own the home will not be included in determining whether the family meets the minimum income requirement, except in the case of elderly or disabled families.
The WHA may establish a higher income standard for disabled families and/or for nondisabled families. However, a family that meets the federal minimum income requirement (but not the WHA's requirement) will be considered to meet the minimum income requirement if it can demonstrate that it has been prequalified or preapproved for financing.
In order to reflect local homeownership costs, the WHA has established a minimum income standard of 30% of the area median income for household size.
The family must meet the federal minimum employment requirement.
At least one adult family member who will own the home must be currently employed full time and must have been continuously employed for one year prior to homeownership assistance.
HUD regulations define "full-time employment" as not less than an average of 30 hours per week.
The federal minimum employment requirement does not apply to elderly or disabled families.
Any family member who was an adult member of a family that previously defaulted on a mortgage obtained through the homeownership option is barred from receiving future homeownership assistance.
The WHA will impose the following additional initial requirements:
The family is in good standing with the WHA. A family is in good standing if it has no outstanding debt to the WHA for previous damages or unpaid rent, has no history of late rent payments for the last two years, and has no violation of family obligations under the WHA's administrative plan.
Current enrollment in or completion of the WHA's Family Self-Sufficiency Program is strongly encouraged. FSS staff will work collaboratively with Housing Choice Voucher Program staff and community agencies to offer participants in the Homeownership Program case coordination services, budget counseling, and community resources to help them achieve their self-sufficiency goals.
Homeownership counseling requirements. [24 CFR 982.630]
When the family has been determined eligible, it must attend and complete homeownership counseling sessions. These counseling sessions will be conducted by a local HUD-approved housing counseling agency. Such counseling shall be consistent with HUD-approved housing counseling.
Eligible units [24 CFR 982.628].
The unit must meet all of the following requirements:
The unit must meet HUD's "eligible housing" requirements. The unit may not be any of the following:
A public housing or Indian housing unit;
A unit receiving Section 8 project-based assistance;
A nursing home, board-and-care home, or facility providing continual psychiatric, medical or nursing services;
A college or other school dormitory; or
On the grounds of penal, reformatory, medical, mental, or similar public or private institutions.
The unit was already existing or under construction at the time the family was determined eligible for homeownership assistance.
The unit is a one-unit property or a single dwelling unit in a cooperative or condominium.
The unit has been inspected by the WHA and by an independent inspector designated by the family.
The unit meets HUD Housing Quality Standards.
The unit may be a home where the family will not own fee title to the real property (such as a manufactured home) if the home has a permanent foundation and the family has the right to occupy the site for at least 40 years.
The WHA must not approve the seller of the unit if the WHA has been informed that the seller is debarred, suspended, or subject to a limited denial of participation. The WHA may disapprove the seller for any reason provided for disapproval of an owner in the voucher program.
WHA search and purchase requirements [24 CFR 982.629].
The WHA has established the maximum time that will be allowed for a family to locate and purchase a home.
The family's deadline date for locating a home to purchase will be 180 calendar days from the date the family's eligibility for the homeownership option is determined.
The family must obtain financing for the home within 180 calendar days of the date eligibility for the homeownership program is determined.
The family must purchase the home within 180 days of the date eligibility for the homeownership program is determined.
The WHA will not require periodic reports on the family's progress in finding and purchasing a home.
If the family is unable to purchase a home within the maximum time limit, the WHA will issue the family a voucher to lease a unit.
Inspection and contract [24 CFR 982.631].
The unit must meet housing quality standards and must also be inspected by an independent professional inspector selected and paid by the family.
The independent inspection must cover major building systems and components. The inspector must be qualified to identify physical defects and report on property conditions, including major building systems and components. These systems and components include, but are not limited to:
The independent inspector must not be a WHA employee or contractor. The WHA will not require the family to use an independent inspector selected by the WHA, but the WHA has established the following standards for qualification of inspectors selected by the family: The WHA requires independent inspectors be licensed.
Copies of the independent inspection report will be provided to the family and the WHA. Based on the information in this report, the family and the WHA will determine whether any prepurchase repairs are necessary.
The WHA may disapprove the unit for homeownership assistance because of information in the report.
The family must enter into a contract of sale with the seller of the unit. A copy of the contract must be given to the WHA. The contract of sale must specify the price and terms of sale and provide that the purchaser will arrange for a prepurchase independent inspection of the home. The contract must also:
Provide that the purchaser is not obligated to buy the unit unless the inspection is satisfactory;
Provide that the purchaser is not obligated to pay for necessary repairs; and
Contain the seller's certification that he or she has not been debarred, suspended or subject to a limited denial of participation.
Financing [24 CFR 982.632].
The family is responsible for securing financing. The WHA has established financing requirements, listed below, and may disapprove proposed financing if the WHA determines that the debt is unaffordable.
The WHA will require a minimum down payment of 3% of purchase price; 1% must be paid from the family's own resources.
Buyers must obtain financing from a financial institution that is acceptable to the WHA. To be deemed acceptable, financing must be insured by the state or federal government or comply with secondary mortgage market or generally accepted private sector mortgage underwriting standards.
Mortgage insurance may be required.
If the family has a family self-sufficiency escrow balance, up to 100% of the accumulated funds may be withdrawn for the down payment and/or closing costs. Escrow withdrawals will also be allowed for the purchase of required appliances, such as a stove or refrigerator.
WHA staff reserves the right in each instance to determine whether the family can afford the proposed financing.
Continued assistance [24 CFR 982.633].
Homeownership assistance may only be paid while the family is residing in the home. The family or lender is not required to refund homeownership assistance for the month when the family moves out.
The family must comply with the following obligations:
The family must comply with the terms of the mortgage-securing debt incurred to purchase the home or any refinancing of such debt.
The family may not convey or transfer ownership of the home, except for purposes of financing, refinancing, or pending settlement of the estate of a deceased family member. Use and occupancy of the home are subject to 24 CFR 982.551(h) and (i).
The family must supply information to the WHA or HUD, as specified in 24 CFR 982.551(b). The family must further supply any information required by the WHA or HUD concerning mortgage financing or refinancing, sale or transfer of any interest in the home or homeownership expenses.
The family must notify the WHA before moving out of the home.
The family must notify the WHA if the family defaults on the mortgage used to purchase the home.
No family member may have any ownership interest in any other residential property.
The family may be required to attend and complete ongoing homeownership counseling.
Before commencement of homeownership assistance, the family must execute a statement in which the family agrees to comply with all family obligations under the homeownership option.
Maximum term of homeownership assistance [24 CFR 982.634].
The elderly exception only applies if the family qualified as elderly at the start of homeownership assistance. The disabled exception applies if, at any time during receipt of homeownership assistance, the family qualifies as disabled.
If the family ceases to qualify as elderly or disabled during the course of homeownership assistance, the maximum term becomes applicable from the date assistance commenced. However, such a family must be afforded at least six months of homeownership assistance after the maximum term becomes applicable.
If the family receives homeownership assistance for different homes, or from different PHAs, the total is subject to the maximum term limitations.
Homeownership assistance payments and homeownership expenses [24 CFR 982.635].
The monthly homeownership assistance payment is the lower of: the voucher payment standard minus the total tenant payment, or the monthly homeownership expenses minus the total tenant payment.
In determining the amount of the homeownership assistance payment, the WHA will use the same payment standard schedule, payment standard amounts, and subsidy standards as those described in this article for the Housing Choice Voucher Program.
The WHA will pay the homeownership assistance payment directly to the family.
Some homeownership expenses are allowances or standards determined by the WHA in accordance with HUD regulations. These allowances are used in determining expenses for all homeownership families and are not based on the condition of the home.
Homeownership expenses include:
Principal and interest on mortgage debt.
Mortgage insurance premium.
Taxes and insurance.
The WHA utility allowance used for the voucher program.
The WHA allowance for routine maintenance costs.
The WHA allowance for major repairs and replacements.
Principal and interest on debt for improvements.
If the home is a cooperative or condominium, expenses also include operating expenses or maintenance fees assessed by the homeowner association.
Portability [24 CFR 982.636, 982.353(b) and (c), 982.552, 982.553].
Subject to the restrictions on portability included in HUD regulations and in Article XIII of this article, the family may exercise portability if the receiving PHA is administering a voucher homeownership program and accepting new homeownership families.
The receiving PHA may absorb the family into its voucher program or bill the initial PHA. The receiving PHA arranges for housing counseling and the receiving PHA's homeownership policies apply.
Moving with continued assistance [24 CFR 982.637]. A family receiving homeownership assistance may move with continued tenant-based assistance. The family may move with voucher rental assistance or with voucher homeownership assistance. Continued tenant-based assistance for a new unit cannot begin so long as any family member holds title to the prior home.
The WHA will deny permission to move with continued rental or homeownership assistance if the WHA determines that it does not have sufficient funding to provide continued assistance.
The WHA may require the family to complete additional homeownership counseling prior to moving to a new unit with continued assistance under the homeownership option.
Denial or termination of assistance [24 CFR 982.638].
Termination of homeownership assistance is governed by the policies for the Housing Choice Voucher Program contained in Article XV of this chapter. However, the provisions of 24 CFR 982.551(c) through (j) are not applicable to homeownership.
The WHA will terminate homeownership assistance if the family is dispossessed from the home due to a judgment or order of foreclosure. The WHA will not permit such a family to move with voucher rental assistance.
The WHA will terminate homeownership assistance if the family violates any of the family obligations contained in this section.
Pilot program for homeownership assistance for disabled families [CFR 982.642].
The WHA has the option of offering assistance under the pilot program instead of, or in addition to, the homeownership assistance described in this section. Most of the regulations governing homeownership assistance apply to the pilot program.
Eligibility: the family must meet the definition of "disabled family." The family is not required to meet the low-income requirement, but annual income cannot exceed 99% of the area median. The family must not be a current homeowner and must close on the home within three years of July 23, 2001. The family need not meet the definition of "first-time homeowner."
Homeownership assistance payments. Payments are calculated as described in this section. A low-income family receives the full assistance payment. A family whose annual income is between 81% and 89% of area median receives 66% of the assistance payment. A family whose annual income is between 90% and 99% of area median receives 33% of the assistance payment. The WHA must make payments to the lender.
Mortgage defaults. The WHA may permit the family to move with continued homeownership assistance if the default is due to catastrophic medical reasons or to the impact of a federally declared disaster.
The WHA will not offer homeownership assistance under the pilot program for disabled families.
To the extent applicable, the WHA's policies for homeownership assistance apply to families participating in the pilot program.
