[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR983.52]

[Page 664-665]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 983_SECTION 8 PROJECT-BASED CERTIFICATE PROGRAM--Table of Contents
 
           Subpart B_Owner Application Submission to Agreement
 
Sec. 983.52  Rehabilitation: Initial inspection and determination of unit 
eligibility.

    (a) Before selecting a unit or executing an Agreement, the HA must 
determine that the application is responsive to and in compliance with 
the HA's written selection criteria and procedures, and is otherwise in 
conformity with HUD program regulations and requirements. The HA must 
inspect the property to determine that rehabilitation has not begun and 
that the property meets the $1000 per assisted unit rehabilitation 
requirement under Sec. 983.8 of this chapter. If the property meets 
this rehabilitation requirement, the HA must determine the specific work 
items that are needed to bring each unit to be assisted up to the 
housing quality standards specified in Sec. 983.5 (or other standards 
as approved in the HA's application), to complete any other repairs 
needed to meet the $1000 per assisted unit rehabilitation requirement 
and, in the case of projects of five or more units, any work items 
necessary to meet the accessibility requirements of Section 504 of the 
Rehabilitation Act of 1973.
    (b) Before selecting a unit or executing an Agreement, the HA must 
also consider whether the property is eligible housing under Sec. 
983.7; meets the other Federal requirements in Sec. 983.11

[[Page 665]]

and the site and neighborhood standards cross-referenced in Sec. 983.6; 
and will be rehabilitated with other than assistance under the U.S. 
Housing Act of 1937 in accordance with Sec. 983.9. The HA must also 
determine the number of current tenants that are low-income families. An 
HA may not select a unit, or enter into an Agreement with respect to a 
unit, if the unit is occupied by persons who are not eligible for 
participation in the program.
    (c) Before executing an Agreement, the HA must contract with a State 
certified general appraiser and establish the rents in accordance with 
Sec. 983.202, or seek and obtain the HUD-determined initial contract 
rents for any HA owned or controlled units or projects financed with a 
HUD insured or coinsured multifamily mortgage; obtain subsidy layering 
contract rent reviews from HUD or a Housing Credit Agency; obtain 
environmental clearance in accordance with Sec. 983.11; submit a 
certification to the HUD field office stating that the unit or units 
were selected in accordance with the HA's approved unit selection 
policy; and receive approval from the HUD field office to execute an 
Agreement pursuant to the reviews required in Sec. 983.53.
    (d) When the HA administering the ACC or an entity substantially 
controlled by the HA administering the ACC has submitted an application, 
the HUD field office will select the owner applications. The HA must 
submit to the HUD field office all owner applications in response to the 
advertisement.
    (e) The HUD field office may terminate the Agreement or HAP contract 
upon at least 30 days written notice to the owner by the HUD field 
office if the HUD field office determines at any time that the units 
were not selected in accordance with the HA's approved written selection 
policy or that the units did not initially meet the HUD eligibility 
requirements.

(Approved by the Office of Management and Budget under control number 
2577-0169)

[60 FR 34717, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 63 
FR 23871, Apr. 30, 1998]