[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: 24CFR904.206]



[Page 338-339]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

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

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 904_LOW RENT HOUSING HOMEOWNERSHIP OPPORTUNITIES--Table of Contents

 

             Subpart C_Homeownership Counseling and Training

 

Sec.  904.206  Funding.



    (a) Source of funds. For purpose of funding counseling and training 

pursuant to this subpart and for establishing the HBA, the LHA shall 

include an amount equal to $500 per dwelling unit in the development 

cost budget. If additional funds should be needed for any of these 

purposes, the LHA with the assistance of the CPC, if any, shall explore 

all other possible sources of services and funds.

    (b) Planned use of $500-per-unit funds. These funds are to be used 

to pay for:

    (1) Pre- and post-occupancy counseling and training;

    (2) Establishment and initial operation of the HBA (for operation in 

the management phase, see Sec.  904.305).



In planning the use of these funds, the LHA shall recognize that for a 

number of years after the initial counseling and training there is 

likely to be some turnover and follow-up counseling and training needs. 

Therefore, the LHA shall limit the amounts for the counseling and 

training of the initial homebuyers and shall reserve a reasonable amount 

for future counseling and training needs during the management phase of 

the development.

    (c) Period of availability of $500-per-unit funds. These funds shall 

be available during the development phase, and a specific amount shall 

be set aside, in accordance with paragraph (b) of this section, to be 

used for ongoing needs after the close of the development period.

    (d) Budgeting of $500-per-unit funds. (1) The Development Cost 

Budget submitted with the Development Program shall include an estimated 

amount for counseling and training program costs. However, such costs 

shall not be incurred until after HUD approval of the counseling and 

training program.

    (2) Upon HUD approval of the counseling and training program, the 

LHA shall include the approved amount in its Contract Award Development 

Cost Budget. This amount shall constitute the maximum amount that may be 

included for such purposes in the project development cost; provided 

that, if the approved amount is less than $500 per dwelling unit, it 

may, if necessary, be amended with HUD approval, but not later than the 

Final Development Cost Budget and subject to the $500-per-unit 

limitation.

    (e) Application for approval of counseling and training program. (1) 

The LHA shall submit an application for approval of a counseling and 

training program and for approval of funds therefor. This application 

shall be submitted to HUD at the time of the submission of the 

development program or as soon thereafter as possible but no later than 

the submission of the working drawings and specifications.

    (2) The application shall include a narrative statement outlining 

the counseling and training program, including any services and funds to 

be obtained from other sources, together with copies of any proposed 

contract and other pertinent documents. This statement shall include the 

following:

    (i) Indication that the training entity is completely knowledgeable 

of the Homeownership Opportunity Program and is aware of the needs and 

problems of prospective homebuyers;



[[Page 339]]



    (ii) The method and/or instruments to be used to determine 

individual training and counseling needs;

    (iii) The scope of the proposed program, including a detailed 

breakdown of tasks to be performed, products to be produced, and a time 

schedule, including provision for progress payments for specific tasks;

    (iv) An outline of the proposed content of the counseling and 

training to be provided, and the local community resources to be 

utilized;

    (v) The methods of counseling and training to be utilized;

    (vi) The experience and qualifications of the organization and of 

personnel who will directly provide the counseling and training;

    (vii) The estimated cost, source of funds, and methods of payment 

for the tasks and products to be performed or produced, including 

estimates of costs for each of the following categories:

    (a) Counseling and training during development phase:



Salaries

Materials, supplies and expendable equipment

Contract costs

Other costs



    (b) Establishment and initial operation of HBA

    (c) Counseling and training during management phase