1、7 SUBCHAPTER ASLUM CLEARANCE AND URBAN RENEWAL PARTS 500509 RESERVED PART 510SECTION 312 REHABILITATION LOAN PROGRAM AUTHORITY: 42 U.S.C. 1452b and 3535(d). 510.1 Multi-family property loans. (a) In cases in which a corporation is a borrower on a section 312 loan, the Assistant Secretary for CPD or
2、his des-ignee may require an officer of the cor-poration or a principal stockholder to personally guarantee the section 312 loan or to cosign the loan note as a borrower, where necessary to make the finding of acceptable risk required for assumption of the loan. (b) All partners of any partnership w
3、hich is a borrower on a section 312 loan shall be personally liable for re-payment of the section 312 loan. Lim-ited partners shall assume personal li-ability by co-signing the loan note as a borrower or by personally guaranteeing the loan. (c) Any personal guarantee or en-dorsement shall not reliev
4、e the part-nership or corporate borrower from se-curing the section 312 loan by a mort-gage or deed of trust on the property to be rehabilitated. 44 FR 21751, Apr. 11, 1979, as amended at 44 FR 47513, Aug. 13, 1979; 44 FR 55562, Sept. 27, 1979. Redesignated and amended at 61 FR 7061, Feb. 23, 1996 P
5、ART 511RENTAL REHABILITATON GRANT PROGRAM Subpart AGeneral Sec. 511.1 Applicability and purpose. 511.2 Definitions. 511.3511.5 Reserved Subpart BProgram Requirements 511.10 Grant requirements. 511.11 Project requirements. 511.12 Conflicts of interest. 511.13 Nondiscrimination, equal oppor-tunity, an
6、d affirmative marketing re-quirements. 511.14 Tenant assistance, displacement, re-location, and acquisition. 511.15 Lead-based paint. 511.16 Other Federal requirements. Subpart C Reserved Subpart DAllocation Formula and Reallocations 511.30511.31 Reserved 511.33 Deobligation of rental rehabilitation
7、 grant amounts. 511.34 Reserved Subpart E Reserved Subpart FState Program 511.50 State election to administer a rental rehabilitation program. 511.51 State-administered program. 511.52 Reserved Subpart G Reserved Subpart HGrant Administration 511.70 Responsibility for grant administra-tion. 511.71 A
8、dministrative costs. 511.72 Applicability of uniform Federal ad-ministrative requirements. 511.73 Grantee records. 511.74 Audit. 511.75 Disbursement of rental rehabilitation grant amounts: Cash and Management Information System. 511.76 Program income. 511.77 Grant closeout. Subpart IGrantee Performa
9、nce: Review, Reporting and Corrective or Remedial Actions 511.80 Performance review. 511.81 Grantee reports to HUD. 511.82 Corrective and remedial actions. AUTHORITY: 42 U.S.C. 1437o and 3535(d). SOURCE: 55 FR 20050, May 14, 1990, unless otherwise noted. Subpart AGeneral 511.1 Applicability and purp
10、ose. (a) This part implements the Rental Rehabilitation Program (RRP) con-tained in section 17 of the United States Housing Act of 1937, as amended (the Act). As more fully described in this part, the Act authorizes the Secetary of Housing and Urban Devel-opment to make rental rehabilitation VerDate
11、 Nov2008 07:58 Apr 27, 2010 Jkt 220079 PO 00000 Frm 00017 Fmt 8010 Sfmt 8010 Y:SGML220079.XXX 220079WReier-Aviles on DSKGBLS3C1PROD with CFRProvided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-8 24 CFR Ch. V (4110 Edition) 511.2 grants to help support the
12、 rehabilita-tion of eligible real property to be used for primarily residential rental pur-poses, and to pay for eligible adminis-trative costs of grantees (not to exceed 10 percent of a grantees initial grant obligation for Fiscal Year 1988 and later years). Grants are made on a for-mula basis to c
13、ities having populations of 50,000 or more, urban counties, States, and qualifying consortia of geo-graphically proximate units of general local government. States may use all or part of their grants to carry out their own rental rehabilitation pro-grams or to distribute them to eligible units of ge
14、neral local government. HUD will administer a States grant if the State chooses not to do so. (b) The purpose of the Program is to help provide affordable, standard per-manent housing for low-income fami-lies and to increase the availability of housing units for use by housing voucher and certificat
15、e holders under section 8 of the United States Housing Act of 1937. Subject to rules for the tenant-based Certificate Program (24 CFR part 882) and for the Housing Voucher Program (24 CFR part 887), certificates and housing vouchers must be allocated to ensure that sufficient resources are available
16、 for families in Rental Rehabilitation projects who are required to move out of their units be-cause of the physical rehabilitation ac-tivities or because of overcrowding; and at the PHAs discretion, to assist eligible families whose post-rehabilita-tion rents would be greater than 30 per-cent of th
17、eir adjusted incomes. 511.2 Definitions. The terms HUD and Public Housing Agency (PHA) are defined in 24 CFR part 5. Administrative costs means eligible ad-ministrative costs as described in 511.71. C/MI System means the Cash and Management Information System for drawdown of Rental Rehabilitation gr
18、ant amounts and collection of pro-gram information described in 511.75. Certificate means the document issued by a PHA to a family eligible for par-ticipation in the tenant-based Section 8 Certificate Program under 24 CFR part 882. Chief executive officer of a govern-mental entity means the elected
19、offi-cial, or the legally designated official, who has the primary responsibility for the conduct of that entitys govern-mental affairs. Examples of the chief executive officer are: The elected mayor of a municipality; the elected county executive of a county; the chairperson of a county commission
20、or board in a county that has no elected county executive; the official des-ignated under law by the governing body of the unit of general local gov-ernment; and the Governor of a State. City means a unit of general local government that was classified as a city under section 102(a)(5) of the Hous-i
21、ng and Community Development Act of 1974 for purposes of the Community Development Block Grant (CDBG) En-titlement Program for the fiscal year immediately preceding the fiscal year for which rental rehabilitation grant amounts are made available. Commit to a specific local project or commitment mean
22、s: (a) For a project which is privately owned when the commitment is made, a written legally binding agreement between a grantee (or in the case of a State distributing rental rehabilitation grant amounts to units of general local government, a State recipient) and the project owner under which the
23、grantee or State recipient agrees to provide rental rehabilitation grant amounts to the owner for an identifiable rehabili-tation project that can reasonably be expected to start construction within 90 days of the agreement and in which the owner agrees to start construction within that period; or (
24、b) For a project that is publicly owned when the commitment is made, the Pre-Rehabilitation Report sub-mitted under the C/MI System which identifies a specific rehabilitation project that will start rehabilitation within 90 days of receipt of the Pre-Re-habilitation Report. Under both para-graphs (a
25、) and (b) of this definition, the date HUD enters into the C/MI System an acceptable Pre-Rehabilitation Re-port for a project is deemed to be the date of project commitment. Completion of rehabilitation means all necessary rehabilitation work has been performed and the project in HUDs VerDate Nov200
26、8 07:58 Apr 27, 2010 Jkt 220079 PO 00000 Frm 00018 Fmt 8010 Sfmt 8010 Y:SGML220079.XXX 220079WReier-Aviles on DSKGBLS3C1PROD with CFRProvided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-9 Ofc. of Asst. Secy., Comm. Planning, Develop., HUD 511.2 judgment c
27、omplies with the require-ments of this part (including the reha-bilitation standards adopted under 511.10(e); the final drawdown has been disbursed for the project; for projects that were publicly owned when com-mitment occurred, the project has been legally transferred to a private owner; and a Pro
28、ject Completion Report has been submitted and processed in the C/ MI System as prescribed by HUD. Family means a family as defined at 24 CFR 812.2. Grantee means (a) Any city, urban county, or ap-proved consortium receiving a grant on the basis of the formula contained in subpart D of this part; (b)
29、 Any State administering a rental rehabilitation program, as provided in 511.51; and (c) Any unit of general local govern-ment receiving a rental rehabilitation grant from HUD, as provided in 511.52. Housing voucher means the document issued by a PHA to a family eligible for participation in the Sec
30、tion 8 Housing Voucher Program under 24 CFR part 887. Low-income family means a low-in-come family, as defined in 24 CFR 813.102. Manufactured housing means a dwell-ing unit which meets the requirements of 511.11(c)(4). Owner means one or more individ-uals, corporations, partnerships, or other priva
31、tely-controlled legal enti-ties that hold valid legal title to the project to be rehabilitated. Project means an entire building (in-cluding a manufactured housing unit), or two or more contiguous buildings under common ownership and manage-ment, to be rehabilitated with a rental rehabilitation gran
32、t, under a commit-ment by the owner, as a single under-taking under this part. Rents affordable to low-income families means that the sum of the utility al-lowance and the rent payable monthly to the owner with respect to a unit is at or below the applicable fair market rent published under 24 CFR p
33、art 888 for the Section 8 Certificate Program (24 CFR part 882) or at or below such higher maximum Gross Rent as ap-proved by HUD for units of a given size or type under 24 CFR 882.106(a)(3). In the case of cooperative or mutual hous-ing, rent means the occupancy charges under the occupancy agreemen
34、t be-tween the members and the coopera-tive. State includes any of the 50 States and the Commonwealth of Puerto Rico. State recipient means any unit of gen-eral local government to which a State distributes rental rehabilitation grant amounts, as provided in 511.51 (a)(2) and (a)(3). Unit or dwellin
35、g unit means a residen-tial space that qualifies under the laws of the State and locality and under this part as a place of permanent habitation or abode for a family, including an apartment or house that contains a liv-ing room, kitchen area, sleeping area, and bathroom(s), or such other defini-tio
36、n as may be proposed by a grantee and approved by HUD under this part. The HUD Field Office may approve con-gregate housing units meeting the re-quirements of 24 CFR 882.109(m) or sin-gle room occupancy units meeting the requirements of 24 CFR 882.109(p) as zero bedroom units for purposes of this pa
37、rt. Unit of general local government means any city, county, town, township, par-ish, village, or other general purpose political subdivision of a State. Urban county means a county that was classified as an urban county under section 102(a)(6) of the Housing and Community Development Act of 1974, a
38、s amended, for the fiscal year im-mediately preceding the fiscal year for which rental rehabilitation grant amounts are made available. Utility allowance means the amount determined by a PHA under 24 CFR part 882 for the cost of utilities (except telephones) and other housing services that is not in
39、cluded in the rent payable to the owner, but is the responsibility of the family occupying the unit. Very low income family means a very low income family, as defined in 24 CFR 813.102. 55 FR 20050, May 14, 1990, as amended at 61 FR 5208, Feb. 9, 1996 VerDate Nov2008 07:58 Apr 27, 2010 Jkt 220079 PO
40、 00000 Frm 00019 Fmt 8010 Sfmt 8010 Y:SGML220079.XXX 220079WReier-Aviles on DSKGBLS3C1PROD with CFRProvided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-10 24 CFR Ch. V (4110 Edition) 511.3511.5 511.3511.5 Reserved Subpart BProgram Requirements 511.10 Gran
41、t requirements. A rental rehabilitation program shall comply with the following require-ments: (a) Lower income benefit(1) 100 per-cent benefit standard. Except as pro-vided in paragraphs (a)(2) and (a)(3) of this section, all rental rehabilitation grant amounts must be used for the benefit of low-i
42、ncome families. (2) Reduction to 70 percent benefit standard. The 100 percent benefit stand-ard will be reduced to 70 percent if the grantee certifies in its Program De-scription under 511.20 (or thereafter in a written amendment to its grant agreement) that: (i) The reduction is necessary to meet o
43、ne or both of the following ob-jectives: (A) To minimize the displacement of tenants in projects to be rehabilitated; or (B) To provide a reasonable margin for error due to unforeseen, sudden changes in neighborhood rent or for other reasonable contingencies; (ii) A rental rehabilitation program tha
44、t meets the 100 percent benefit standard cannot be developed; and (iii) The public has been consulted re-garding this inability. (3) Reduction to 50 percent benefit standard. The benefit standard will be reduced to not less than 50 percent only in extraordinary circumstances approved by HUD. Approva
45、l may be granted at the request of the grantee before undertaking any project that will have the effect of reducing the benefit for low-income families for the grantees program below 70 percent, only where HUD determines that a re-duction is necessary to meet an impor-tant community need and that th
46、e net program impact will strongly favor low-income families. Approval may be granted thereafter only where HUD de-termines that the grantee made rea-sonable efforts to meet the higher ben-efit standard, but was unable to do so because of circumstances beyond its control. (4) Definition of benefit.
47、For purposes of this paragraph (a), benefit for low- income families will be considered to occur only where dwelling units in projects rehabilitated with rental reha-bilitation grants are initially occupied by such families after rehabilitation. (b) Use of rental rehabilitation grants for housing fo
48、r families. (1) Each grantee shall ensure that an equitable share of rental rehabilitation grant amounts will be used to assist in the provision of housing designed for occupancy by families with children, particularly families requiring three or more bed-rooms. HUD will assure that on a na-tional b
49、asis at least 15 percent of each years rental rehabilitation grant amounts (excluding those grant amounts expended for administrative costs under 511.71) are used to reha-bilitate units containing three or more bedrooms. HUD reserves the right pro-spectively to establish three or more bedroom unit targets for individual grantees if the national goal is in dan-ger of not being met, or if HUD finds that a grantees
