[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR1005.105]



[Page 806-807]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 1005_LOAN GUARANTEES FOR INDIAN HOUSING--Table of Contents

 

Sec.  1005.105  What are eligible loans?



    (a) In general. Only fixed rate, fixed term loans with even monthly 

payments are eligible under the Section 184 program.

    (b) Eligible borrowers. A loan guarantee under section 184 may be 

made to:

    (1) An Indian family who will occupy the home as a principal 

residence and who is otherwise qualified under section 184;

    (2) An Indian Housing Authority or Tribally Designated Housing 

Entity; or

    (3) An Indian tribe.

    (c) Appraisal of labor value. The value of any improvements to the 

property made through the skilled or unskilled labor of the borrower, 

which may be used to make a payment on account of the balance of the 

purchase price, must be appraised in accordance with generally 

acceptable practices and procedures.



[[Page 807]]



    (d) Construction advances. The Department may guarantee loans from 

which advances will be made during construction. The Department will 

provide guarantees for advances made by the mortgagee during 

construction if all of the following conditions are satisfied:

    (1) The mortgagor and the mortgagee execute a building loan 

agreement, approved by HUD, setting forth the terms and conditions under 

which advances will be made;

    (2) The advances may be made only as provided in the building loan 

agreement;

    (3) The principal amount of the mortgage is held by the mortgagee in 

an interest bearing account, trust, or escrow for the benefit of the 

mortgagor, pending advancement to the mortgagor or the mortgagor's 

creditors as provided in the loan agreement; and

    (4) The mortgage shall bear interest on the amount advanced to the 

mortgagor or the mortgagor's creditors and on the amount held in an 

account or trust for the benefit of the mortgagor.

    (e) Environmental compliance. (1) Section 1000.20 of this chapter 

applies to an environmental review in connection with a loan guarantee 

under this part. That section permits an Indian tribe to choose to 

assume environmental review responsibility.

    (2) Before HUD issues a commitment to guarantee any loan, or before 

HUD guarantees a loan if there is no commitment, HUD must:

    (i) Comply with environmental review procedures to the extent 

applicable under part 50 of this title, in accordance with Sec.  

1000.20(a) and (c); or

    (ii) Approve a Request for Release of Funds and certification from 

an Indian tribe, in accordance with part 58 of this title, if the Indian 

tribe has assumed environmental review responsibility.

    (3) If the loan involves proposed or new construction, HUD will 

require compliance with procedures comparable to those required by Sec.  

203.12(b)(2) of this title for FHA mortgage insurance.

    (f) Lack of access to private financial markets. In order to be 

eligible for a loan guarantee if the property is not on trust or 

restricted land, the borrower must certify that the borrower lacks 

access to private financial markets. Borrower certification is the only 

certification required by HUD.



[61 FR 9054, Mar. 6, 1996. Redesignated and amended at 63 FR 12349, 

12372, Mar. 12, 1998; 63 FR 48990, Sept. 11, 1998; 67 FR 19493, Apr. 19, 

2002]