[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: 24CFR954.402]



[Page 423-424]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

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

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 954_INDIAN HOME PROGRAM--Table of Contents

 

                     Subpart D_Project Requirements

 

Sec.  954.402  Tenant and participant protections.



    (a) Lease. The lease between a tenant and an owner of rental housing 

assisted with HOME funds must be for not less than one year, unless by 

mutual agreement between the tenant and the owner.

    (b) Prohibited lease terms. The lease may not contain any of the 

following provisions:

    (1) Agreement to be sued. Agreement by the tenant to be sued, to 

admit guilt, or to a judgment in favor of the owner in a lawsuit brought 

in connection with the lease;

    (2) Treatment of property. Agreement by the tenant that the owner 

may take, hold, or sell personal property of household members without 

notice to the tenant and a court decision on the rights of the parties. 

This prohibition, however, does not apply to an agreement by the tenant 

concerning disposition of personal property remaining in the housing 

unit after the tenant has moved out of the unit. The owner may dispose 

of this personal property in accordance with tribal law (or State law, 

which may apply if the Indian tribe is not exercising recognized powers 

of self-government);

    (3) Excusing owner from responsibility. Agreement by the tenant not 

to hold



[[Page 424]]



the owner or the owner's agents legally responsible for any action or 

failure to act, whether intentional or negligent;

    (4) Waiver of notice. Agreement of the tenant that the owner may 

institute a lawsuit without notice to the tenant;

    (5) Waiver of legal proceedings. Agreement by the tenant that the 

owner may evict the tenant or household members without instituting a 

civil court proceeding in which the tenant has the opportunity to 

present a defense, or before a court decision on the rights of the 

parties;

    (6) Waiver of a jury trial. Agreement by the tenant to waive any 

right to a trial by jury;

    (7) Waiver of right to appeal court decision. Agreement by the 

tenant to waive the tenant's right to appeal, or to otherwise challenge 

in court, a court decision in connection with the lease; and

    (8) Tenant chargeable with cost of legal actions regardless of 

outcome. Agreement by the tenant to pay attorney's fees or other legal 

costs even if the tenant wins in a court proceeding by the owner against 

the tenant. The tenant, however, may be obligated to pay costs if the 

tenant loses.

    (c) Termination of tenancy. An owner may not terminate the tenancy 

or refuse to renew the lease of a tenant of rental housing assisted with 

HOME funds except for serious or repeated violation of the terms and 

conditions of the lease; for violation of applicable Federal, or tribal 

law (or State law, which may apply if the grantee is not exercising 

recognized powers of self-government); or for other good cause. Any 

termination or refusal to renew must be preceded by not less than 30 

days by the owner's service upon the tenant of a written notice 

specifying the grounds for the action.

    (d) Maintenance and replacement. An owner of rental housing assisted 

with HOME funds must maintain the premises in compliance with all 

applicable housing quality standards and local code requirements.

    (e) Tenant selection. An owner of rental housing assisted with HOME 

funds must adopt written tenant selection policies and criteria that--

    (1) Are consistent with the purpose of providing housing for very 

low-income and low-income families;

    (2) Are reasonably related to program eligibility and the 

applicant's ability to perform the obligations of the lease;

    (3) Give reasonable consideration to the housing needs of families 

that would have a preference under section 6(c)(4)(A) of the U.S. 

Housing Act of 1937 (Federal selection preferences for admission to 

public housing); and

    (4) Provide for--

    (i) The selection of tenants from a written waiting list in the 

chronological order of their application, insofar as is practicable; and

    (ii) The prompt written notification to any rejected applicant of 

the grounds for any rejection.