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  <FDSYS>
    <CFRTITLE>24</CFRTITLE>
    <CFRTITLETEXT>Housing and Urban Development</CFRTITLETEXT>
    <VOL>4</VOL>
    <DATE>2005-04-01</DATE>
    <ORIGINALDATE>2005-04-01</ORIGINALDATE>
    <COVERONLY>false</COVERONLY>
    <TITLE>Rehabilitation: Initial inspection and determination of unit eligibility.</TITLE>
    <GRANULENUM>983.52</GRANULENUM>
    <HEADING>Section 983.52</HEADING>
    <ANCESTORS>
      <PARENT HEADING="Title 24" SEQ="3">Housing and Urban Development</PARENT>
      <PARENT HEADING="CHAPTER IX" SEQ="2">OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT</PARENT>
      <PARENT HEADING="PART 983" SEQ="1">SECTION 8 PROJECT-BASED CERTIFICATE PROGRAM</PARENT>
      <PARENT HEADING="Subpart B" SEQ="0">Owner Application Submission to Agreement</PARENT>
    </ANCESTORS>
  </FDSYS>
  <SECTION>
    <SECTNO>§ 983.52</SECTNO>
    <SUBJECT>Rehabilitation: Initial inspection and determination of unit eligibility.</SUBJECT>
    <P>(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 § 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 § 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.</P>

    <P>(b) Before selecting a unit or executing an Agreement, the HA must also consider whether the property is eligible housing under § 983.7; meets the other Federal requirements in § 983.11 <PRTPAGE P="666"/>and the site and neighborhood standards cross-referenced in § 983.6; and will be rehabilitated with other than assistance under the U.S. Housing Act of 1937 in accordance with § 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.</P>
    <P>(c) Before executing an Agreement, the HA must contract with a State certified general appraiser and establish the rents in accordance with § 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 § 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 § 983.53.</P>
    <P>(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.</P>
    <P>(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.</P>
    <APPRO>(Approved by the Office of Management and Budget under control number 2577-0169)</APPRO>
    <CITA>[60 FR 34717, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 63 FR 23871, Apr. 30, 1998]</CITA>
  </SECTION>
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