[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: 24CFR1006.330]



[Page 818-819]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

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

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 1006_NATIVE HAWAIIAN HOUSING BLOCK GRANT PROGRAM--Table of Contents

 

                     Subpart D_Program Requirements

 

Sec.  1006.330  Insurance coverage.



    (a) In general. As a condition to receiving NHHBG funds, the DHHL 

must require adequate insurance coverage for housing units that are 

owned or operated or assisted with more than $5,000 of NHHBG funds, 

including a loan of more than $5,000 that includes payback provisions.



[[Page 819]]



    (b) Adequate insurance. Insurance is adequate if it is a purchased 

insurance policy from an insurance provider or a plan of self-insurance 

in an amount to cover replacement cost.

    (c) Loss covered. The DHHL must provide for or require insurance in 

adequate amounts to indemnify against loss from fire, weather, and 

liability claims for all housing units owned, operated or assisted by 

the DHHL. NHHBG funds may only be used to purchase insurance for low-

income homeowners and only in amounts sufficient to protect against the 

loss of the NHHBG funds at risk in the property. The cost of such 

insurance may not include coverage for a resident's personal property.

    (d) Exception. The DHHL shall not require insurance if the 

assistance is in an amount less than $5000.

    (e) Contractor's coverage. The DHHL shall require contractors and 

subcontractors to either provide insurance covering their activities or 

negotiate adequate indemnification coverage to be provided by the DHHL 

in the contract.