(09-01-93) PN 212
RD Instruction 1944-N
§ 1944.659(a) (Con.)
(2) Shall document the basis for the determination that the costs for all repairs and rehabilitation for the existing housing are not economically feasible or practical.
(b) The individual homeowner:
(1) Must meet all requirements of § 1944.661;
(2) Must lack the income and repayment ability to replace their existing home without the assistance of the HPG grantee;
(3) Must have been determined by the HPG grantee and RHS to be unable to afford a loan under Section 502 for replacement housing; and
(4) Must be able to afford the replacement housing on terms set forth by the HPG grantee.
(c) The existing home:
(1) Must be demolished as part of the process of providing replacement housing. It will be determined by the grantee and individual homeowner when is the best time for demolition; and
(2) May not be sold to make way for the replacement housing.
(d) The replacement housing:
(1) May be either new housing or a dwelling brought onto the site of the existing housing;
(2) May use no more than $15,000 in HPG funds;
(3) Must meet all applicable requirements of 7 CFR
3550.57 (c); and
(4) May not be sold within 5 years of completion of the project.
(e) Any moneys received by the homeowner from selling salvaged material after demolishing the existing home must be used towards the replacement housing.
§ 1944.660 Authorized representative of the HPG applicant and RHS point of contact.
(a) RHS will deal only with authorized representatives designated by the HPG applicant.
RD Instruction 1944-N
§ 1944.660 (Con.)
(b) The State Director will designate either the State Office and/or the District Office as the processing office and/or the servicing office for the HPG program. The State Director's selection may be based on staffing, total program size, number of preapplications anticipated, type of applicants, or similar criteria. The State Director must publish this designation each year at the time the Federal Register is published informing the public of the open period for acceptance of preapplications as outlined in § 1944.678 of this subpart.
§ 1944.661 Individual homeowners - eligibility for HPG assistance.
The individual homeowners assisted must have income that meets the very low- or low-income definitions, be the owner of an individual dwelling at least 1 year prior to the time of assistance, and be the intended occupant of the dwelling subsequent to the time of assistance. The dwelling must be located in a rural area and be in need of housing preservation assistance. Each homeowner is required to submit evidence of income and ownership for retention in the grantee's files.
(a) Income. Determination of income will be made in accordance with
7 CFR 3550.54 (c). All members of the household, as defined in
§ 1944.656 of this subpart, must be included when determining income. Grantees must use certifications, may require additional information from the homeowner, and should seek advice from their attorney.
(Revised 06-12-97, SPECIAL PN.)
(b) Ownership. Evidence of ownership may be a photostatic copy of the instrument evidencing ownership. Methods for assuring the intention of the homeowner to continue to occupy the dwelling after assistance will be established by the grantee. Any of the following will satisfy or fulfill this requirement of ownership:
(1) Full marketable title.
(2) An undivided or divided interest in the property to be repaired, rehabilitated or replaced when not all of the owners are occupying the property. HPG assistance may be made in such cases when: (Revised 06-12-97, SPECIAL PN.)
(i) The occupant has been living in the house for at least
1 year prior to the date of requesting assistance;
(ii) The grantee has no reason to believe the occupant's position of owner occupant will be jeopardized as a result of the improvements to be made with HPG funds; and
(09-01-93) PN 212
RD Instruction 1944-N
§ 1944.661(b)(2) (Con.)
(iii) In the case of a loan, and to the extent possible, the co-owner(s) should also sign the security instrument.
(3) A leasehold interest in the property to be repaired, rehabilitated or replaced. When the potential HPG recipient's "ownership" interest in the property is based on a leasehold interest, the lease must be in writing and a copy must be included in the grantee's file. The unexpired portion of the lease must not be less than 5 years and must permit the recipient to make modifications to the structure without increasing the recipient's lease cost. (Revised 06-12-97, SPECIAL PN.)
(4) A life estate, with the right of present possession, control, and beneficial use of the property.
(5) Land assignments may be accepted as evidence of ownership only for American Indians living on a reservation, when historically the permits have been used by the tribe and have had the comparable effect of a life estate.
(c) Other evidence of ownership. The following items may be accepted as evidence of ownership if a recorded deed cannot be provided:
(1) Any legal instrument, whether or not recorded, which is commonly considered evidence of ownership.
(2) Evidence that the person(s) receiving assistance from the HPG grantee is listed as the owner of the property by the local taxing authority and is responsible for any real estate taxes.
(3) Affidavits by others in the community that the person(s) receiving assistance from the HPG grantee has occupied the property as the apparent owner for a period of not less than
10 years, and is generally believed to be the owner.
§ 1944.662 Eligibility of HPG assistance on rental properties or co-ops.
(a) Ownership. The owner(s) of rental properties or co-ops must own the dwelling at the time of receiving assistance from the HPG grantee. The dwelling must be located in a rural area and be in need of housing preservation assistance. Evidence of ownership may be a photostatic copy of the instrument evidencing ownership. Owners of rental properties and co-ops are required to submit evidence of ownership for retention in the grantee's files. Any of the following will satisfy or fulfill this requirement of ownership: