1、292 24 CFR Ch. V (4110 Edition) Pt. 590 PART 590URBAN HOMESTEADING Sec. 590.1 General. 590.3 Reserved 590.5 Definitions. 590.7 Program requirements. 590.9590.18 Reserved 590.19 Use of section 810 funds. 590.21 Reserved 590.23 Program close-out. 590.25 Retention of records. 590.27 Audit. 590.29 HUD r
2、eview of LUHA performance. 590.31 Corrective and remedial action. AUTHORITY: 12 U.S.C. 1706e; 42 U.S.C. 3535(d). SOURCE: 54 FR 23937, June 2, 1989, unless otherwise noted. 590.1 General. This part applies to the completion of activities remaining under the Urban Homesteading Program author-ized unde
3、r section 810(b) of the Housing and Community Development Act of 1974 (12 U.S.C. 1706e). Authority to re-imburse Federal agencies for transfer of additional properties to LUHAs under this part was repealed effective October 1, 1991. 61 FR 7062, Feb. 23, 1996 590.3 Reserved 590.5 Definitions. Act mea
4、ns section 810 of the Housing and Community Development Act of 1974, as amended from time to time. Applicant means any State or unit of general local government that applies for HUD approval of a local urban homesteading program under these reg-ulations. Homesteader means an individual or family tha
5、t participates in a local urban homesteading program by agree-ing to rehabilitate and occupy a prop-erty in accordance with 590.7(b)(5). Local urban homesteading agency (LUHA) means a State, a unit of gen-eral local government, or a public agency or qualified community organi-zation designated in ac
6、cordance with 590.7(c) by a State or a unit of general local government. Local urban homesteading program means the operating procedures and re-quirements developed by a LUHA and approved by HUD in accordance with this part for selecting and conveying federally-owned properties to qualified homestea
7、ders. Low-income families means those fam-ilies and individuals whose adjusted in-comes do not exceed 80 per centum of the median income for the area, as de-termined by the Secretary under sec-tion 3(b)(2) of the United States Hous-ing Act of 1937. Under the provision of 24 CFR part 813, the Secreta
8、rys income limits for this purpose are updated an-nually and are are available from the Housing Management Division in HUD field offices. Qualified community organization has the meaning specified in 590.7(c)(4). Section 810 funds means funds avail-able to reimburse HUD, FmHA, VA, or RTC (as applica
9、ble) for federally-owned property transferred to LUHAs in ac-cordance with this part. State means any State of the United States, any instrumentality of a State approved by the Governor, and the Commonwealth of Puerto Rico. Unit of general local government means any city, county, town, township, par
10、-ish, village, or other general purpose political subdivision of a State, Guam, the Virgin Islands, or American Samoa, or any general purpose polit-ical subdivision thereof; the District of Columbia; the Trust Territory of the Pacific Islands; and Indian tribes, bands, groups, and nations of the Uni
11、ted States, including Alaska Indi-ans, Aleuts, and Eskimos. Urban homesteading neighborhood means any geographic area approved by HUD for the conduct of a local urban homesteading program that meets the requirements of this part. 54 FR 23937, June 2, 1989, as amended at 54 FR 39525, Sept. 27, 1989;
12、56 FR 6808, Feb. 20, 1991; 61 FR 5211, Feb. 9, 1996; 61 FR 7062, Feb. 23, 1996 590.7 Program requirements. (a) Reserved (b) Development of local urban home-steading program. The applicant shall develop, in compliance with this part, a local urban homesteading program containing the following major e
13、le-ments: (1) Selection and management of prop-erties. The program shall include proce-dures for selecting federally-owned VerDate Nov2008 07:58 Apr 27, 2010 Jkt 220079 PO 00000 Frm 00302 Fmt 8010 Sfmt 8010 Y:SGML220079.XXX 220079WReier-Aviles on DSKGBLS3C1PROD with CFRProvided by IHSNot for ResaleN
14、o reproduction or networking permitted without license from IHS-,-,-293 Ofc. of Asst. Secy., Comm. Planning, Develop., HUD 590.7 properties suitable for homesteading and for managing the properties before conditional conveyance to home-steaders. The program shall also pro-vide that, by accepting tit
15、le to a prop-erty under this part, the LUHA as-sumes liability for injury or damage to persons or property by reason of a de-fect in the dwelling, its equipment or appurtenances, or for any other reason related to ownership of the property. (2) Homesteader selection. The program shall include equita
16、ble procedures for homesteader selection which: (i) Exclude prospective homesteaders who own other residential property; (ii) Take into account a prospective homesteaders capacity to make or cause to be made the repairs and im-provements required under the home-steader agreement, including the ca-pa
17、city to contribute a substantial amount of labor to the rehabilitation process, or to obtain assistance from private sources, community organiza-tions, or other sources; (iii) Provide that membership in, or other ties to, any private organization (including a qualified community orga-nization) may n
18、ot be made a factor af-fecting selection as a homesteader; (iv) Include locally adopted criteria reasonably matching family size to the number of bedrooms in each property for which a homesteader is being se-lected, provided that a prospective homesteader who is a one person household shall not be p
19、ermitted to re-ceive a property having more than two bedrooms, unless there are no larger households on the waiting list, not-withstanding the relative standing of the respective households under the low-income priority (see 590.7(b)(2)(v). (v) Provide that, before a property is offered to other pro
20、spective home-steaders who are eligible, the property will be offered to eligible low-income families, except that properties ob-tained under the RTCs Affordable Housing Disposition Program (12 CFR part 1609) must be transferred to low- income families; and (vi) Include other reasonable selec-tion c
21、riteria which are consistent with this 590.7(b)(2) and which shall be specified in the applicants application pursuant to 590.11(a) and approved by HUD under 590.13. Such selection cri-teria may include preferences for the selection of neighborhood residents or other local residents, but only to the
22、 extent that they are not inconsistent with this section and with affirmative marketing objectives under 590.11(d)(5)(ii). Such preferences based on residential location may not be based upon the length of time the pro-spective homesteader has resided in the jurisdiction or the neighborhood. Also, p
23、ersons who are employed, or who have been notified that they have been hired, in the jurisdiction shall be ex-tended any preference available to cur-rent residents. (3) Conditional conveyance. The pro-gram shall provide for the conditional conveyance of federally-owned prop-erties to homesteaders wi
24、thout any substantial consideration within one year, or less, of title transfer to the LUHA, unless otherwise approved by HUD in writing prior to the transfer. (4) Financing. The program shall pro-vide procedures for the LUHA to under-take, or to assist the homesteader in arranging, financing for th
25、e rehabilita-tion required under the homesteader agreement. Where direct Federal loans under section 312 of the Housing Act of 1964 (42 USC 1452b) are used as a reha-bilitation financing resource by the LUHA, the LUHA shall make reason-able efforts to assist HUD in moni-toring and securing complianc
26、e with the terms of the loan during the home-steaders conditional title period. (5) Homesteader agreement. The pro-gram shall provide for the execution, concurrent with or as a part of the con-ditional conveyance, of a homesteader agreement between the LUHA and the homesteader which shall require th
27、e homesteader: (i) To repair, within one year from the date of conditional conveyance of the property to the homesteader, any defects that pose a substantial danger to health and safety; (ii) To make or cause to be made ad-ditional repairs and improvements nec-essary to meet the applicable local sta
28、ndards for decent, safe, and sanitary housing within three years from the date of conditional conveyance of the property to the homesteader, and to comply with any energy conservation VerDate Nov2008 07:58 Apr 27, 2010 Jkt 220079 PO 00000 Frm 00303 Fmt 8010 Sfmt 8010 Y:SGML220079.XXX 220079WReier-Av
29、iles on DSKGBLS3C1PROD with CFRProvided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-294 24 CFR Ch. V (4110 Edition) 590.7 measures designated by the LUHA as part of the repairs; (iii) To occupy the property as his or her principal residence for not less t
30、han five consecutive years from the date of initial occupancy except as oth-erwise approved in writing by HUD on a case-by-case basis when emergency conditions make compliance with this requirement infeasible; (iv) To permit reasonable inspections at reasonable times by employees or designated agent
31、s of the LUHA to de-termine compliance with the agree-ment; and (v) To surrender possession of, and any interest in, the property upon ma-terial breach of the homesteader agree-ment (including default on any reha-bilitation financing secured by the property), as determined by the LUHA in accordance
32、with this part. (6) Monitoring and selecting successor homesteaders. The program shall pro-vide that the LUHA will monitor the homesteaders compliance with the homesteader agreement, will revoke the conditional conveyance and home-steader agreement upon any material breach by the homesteader, and, t
33、o the extent necessary and practicable, will select one or more successor home-steaders for the property. The LUHA shall make reasonable efforts to assure that any proposed successor home-steader assumes any section 312 loan on the property, subject to HUD ap-proval of the terms of the assumption. I
34、f the LUHA selects a successor home-steader, it shall require the successor homesteader to assume the original homesteaders remaining obligations under his/her homesteader agreement and conditional conveyance in compli-ance with this part. (7) Fee simple title. The program shall provide for the conv
35、eyance of fee sim-ple title to the property from the LUHA to the homesteader, or successor homesteader, without substantial con-sideration upon compliance with the terms of the homesteader agreement and conditional conveyance. (8) Homesteading infeasible; alternative use. If completion of homesteadi
36、ng proves, in the judgment of HUD, to be infeasible for any reason after a LUHA has accepted title to a federally-owned property, the LUHA shall not demol-ish, dispose of, rent or otherwise con-vert the property to its own use until HUD approves an alternative use. (c) Designation of LUHA(1) Respon-
37、sibilities. Under the requirements of this 590.7(c), the applicant shall des-ignate a LUHA, which shall have pri-mary responsibility for administering the local urban homesteading program for the applicant. Although the appli-cant may at any time amend its local urban homesteading program to des-ign
38、ate a new LUHA, subject to HUD ap-proval, neither the applicant nor the designated LUHA may delegate or con-tract out to another legal entity the function of accepting and conveying in its own name title to properties for homesteading purposes under this part. To the extent permitted by the appli-ca
39、nt, the LUHA may use third parties as contractors, consultants, or agents to assist if in carrying out other func-tions and responsibilities with respect to the local urban homesteading pro-gram, by entering into a written agree-ment between the LUHA and the third party. No such agreement shall be d
40、eemed to relieve the LUHA or the ap-plicant of responsibility for the thrid partys actions in connection with the local urban homesteading program. (2) Identity of LUHA. The LUHA must have legal authority to carry out a local urban homesteading program as described in this part, including the au-tho
41、rity to accept and convey title to properties under paragraph (b) of this 590.7. To the extent consistent there-with, the applicant State or unit of general local government may: (i) Act as LUHA in its own name, while identifying within its adminis-trative organization a lead department or agency to
42、 act as the primary con-tact point for HUD; (ii) Designate, and enter into a writ-ten agreement with, a legally separate public body or agency to act as LUHA in accordance with this part; or (iii) Designate, and enter into a writ-ten agreement with, a qualified com-munity organization (as defined in
43、 the Act) to act as LUHA in accordance with this part. 54 FR 23937, June 2, 1989, as amended at 56 FR 6808, Feb. 20, 1991; 61 FR 7062, Feb. 23, 1996 VerDate Nov2008 07:58 Apr 27, 2010 Jkt 220079 PO 00000 Frm 00304 Fmt 8010 Sfmt 8010 Y:SGML220079.XXX 220079WReier-Aviles on DSKGBLS3C1PROD with CFRProv
44、ided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-295 Ofc. of Asst. Secy., Comm. Planning, Develop., HUD 590.29 590.9590.18 Reserved 590.19 Use of section 810 funds. Participants receiving Community Development Block Grant (CDBG) funds may charge eligible
45、administra-tive expenses incurred in operating their urban homesteading programs to their otherwise available CDBG admin-istrative funds, provided such adminis-trative expenditures would satisfy other title I requirements. 56 FR 6809, Feb. 20, 1991, as amended at 61 FR 7062, Feb. 23, 1996 590.21 Res
46、erved 590.23 Program close-out. (a) Initiation of close-out. The LUHA shall institute close-out procedures, as prescribed by HUD. (b) Close-out may be subject to later audit in accordance with 590.27(b). (c) Close-out conditions. Upon comple-tion of HUD close-out review, HUD will send the LUHA a let
47、ter of completion, which HUD may condition. Conditions may reflect unmet obligations, dead-lines to meet them, and a statement of any required interim reporting proce-dures. In addition to any other condi-tions that may be specifically set forth in the letter of completion, the LUHA remains reponsib
48、le after close-out to take whatever actions may be nec-essary to enforce the homesteader agreement and complete final fee sim-ple conveyance to the homesteader or a successor homesteader, or to obtain al-ternative use approval from HUD under 590.7(b)(8), for properties conveyed to the LUHA for homes
49、teading prior to close-out. 54 FR 23937, June 2, 1989, as amended at 61 FR 7062, Feb. 23, 1996 590.25 Retention of records. The LUHA shall maintain adequate financial records, property disposition documents, supporting documents, sta-tistical records, and all other records pertinent to the local urban home-steading program until fee simple title has been conveyed to all homesteaders, generally a five-year period. The LUHA will
