6400.1 REV-1

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

CHAPTER 7. CONVEYING HUD-OWNED ONE-TO FOUR-FAMILY PROPERTIES

FOR USE IN APPROVED URBAN HOMESTEADING PROGRAMS

7-1. LISTING OF HUD-OWNED PROPERTIES FOR POTENTIAL APPLICANTS

A. To facilitate local planning and program development in

accordance with the statute and program requirements of 24 CFR

Part 590.9, a potential applicant may submit a written request to

the appropriate HUD Field Office for a current listing of all

one- to four-unit, HUD-owned, unoccupied properties within the

applicant\'s jurisdiction not subject to executed repair or sale

contracts or leases.

3\. After receiving the request, the Property Disposition Branch

shall provide a current list of those HUD-owned properties for

which repair or sales contracts or leases have not been executed.

This list must be made accessible to the public during the

applicant\'s or LUHA\'s ordinary business hours.

7-2. PROPERTY DISPOSITION PROCEDURES FOR CONVEYING HUD-OWNED

PROPERTIES

The Field Office\'s Property Disposition Branch (PD) shall support

approved urban homesteading programs as follows:

A. Suspension of Property Disposition Activity. Upon execution of

the initial Urban Homesteading Agreement by the Field Office

Manager, but prior to the initial selection of any HUD-owned

property for the first program year, a LUHA may request the Field

Office to suspend its routine property disposition activity for

up to 45 calendar days on properties identified by the LUHA as

being located in the designated urban homesteading

neighborhood(s). Based upon this request, PD shall state in

writing the opening and closing dates for the suspension of

property disposition activity for all such designated HUD-owned

properties, except those for which repair or sales contracts, or

leases have been executed. During this suspension period, the

LUHA may notify the HUD Field Office of the specific HUD-owned

properties, from among those previously identified, that it

intends to use in its local urban homesteading program.

Properties coming into the HUD inventory during or after the

suspension period shall be handled as provided in paragraph B.

B. Notification of Field Office\'s Acquisition of Single Family

Property in the Urban Homesteading Neighborhoods. No later than

10 calendar days after receipt of Form HUD-27011, Single Family

Application for Insurance Benefits, which is the mortgage

insurance claims form from the mortgagee, for an unoccupied,

one-to four-family residence in a HUD-approved urban homesteading

neighborhood,

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

7-1 3/90

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

6400.1 REV-1

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

PD staff shall notify the LUHA of the potential availability of

the property for homesteading. The notification shall be in

writing and shall include the street address and zip code. PD

shall provide a copy to the Urban Homesteading Coordinator.

1\. The notification shall inform the LUHA that it has 21

calendar days From the date of the notice to notify the Field

Office that it wishes to use the property for homesteading.

A property disposition program for a property shall not be

approved until the LUHA has notified PD in writing whether it

intends to use the property in its homesteading program, or

until 21 calendar days from the date of the notification

whichever comes first. This 21-day deadline May be extended

if PD determines that the locality\'s response within 21

calendar days is impracticable. However, continual inability

of the LUHA to respond within the original 21-day period

shall be investigated by the Urban Homesteading Coordinator

who may decline making funds available pursuant to HUD

authority under 590.29(a)(4).

2\. This notification procedure to the LUHA shall cease when PD

is notified by the Urban Homesteading Coordinator that the

program is to be closed out, or all Section 810 funds have

been fully obligated for the year, unless a request for

additional Section 810 funds is under consideration for the

Field Office.

3\. No one- to four-unit property located within the designated

neighborhoods which is unoccupied, unrepaired, or without a

contract for sale or repair or a lease shall be withheld from

this notification procedure by PD staff except as permitted

by the following subparagraph C.

C. Exceptions to offering eligible HUD-owned properties to approved

urban homesteading programs. Field Offices may withhold the

offer of a property to a LUHA when the Field Office Manager

determines in writing that there is a higher priority need

because of one of the following legal obligations:

1\. the settlement of a sales warranty claim;

2\. the settlement of a claim under Section 518 of the National

Housing Act for critical structural defects in a one- to

four-family property whose mortgage was insured by HUD;

3\. emergency housing needs (disaster housing and urgent public

housing needs such as providing shelter for the homeless);

4\. reconveyance of title of property to mortgagee for

noncompliance with regulations for claim procedures (see 24

CFR 203.363);

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

3/90 7-2

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

6400.1 REV-1

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

5\. reconveyance pursuant to a Civil Frauds Act settlement;

6\. reconveyance where the mortgage was never insured; and

7\. reconveyance for other legal obligations as determined by

HUD, i.e., properties for which HUD is unable to obtain good

marketable title; or for which an extremely long delay can

be foreseen in obtaining good marketable title.

D. Failure to transfer suitable properties. All properties

requested by a LUHA and meeting the criteria of Paragraph 7-3,

A., B. and C. shall be offered for transfer by the PD staff. If

the PD staff believe that a property should not be transferred

for other reasons not described in paragraph C. above, they shall

contact the LUHA and the Urban Homesteading Coordinator to work

out a suitable resolution to the problem. The Coordinator shall

consult with the PD staff and, if necessary, Field Counsel with

respect to resolving the matter.

E. LUHA Actions to Acquire Property. At the same time the LUHA

notifies PD that it wants to acquire a property, the LUHA will

send a certification of property eligibility and acquisition

costs to the Urban Homesteading Coordinator. This is the

Verification of Fund Availability, HUD-40050, shown in Appendix

14\. The Urban Homesteading Coordinator confirms the eligibility

of the property and prepares a Form HUD-718, Funds Reservation

and Contract Authority, for validation by the RAD. PD staff and

the, LUHA will hold the closing upon written notification by the

CPD Urban Homesteading Coordinator that funds have been reserved.

(See Chapter 6, paragraph 6-1, B. and C.)

F. Flood Insurance Purchase Review by Property Disposition. The

Flood Disaster Protection Act requires that flood insurance be

obtained for eligible properties. (See paragraph 3-4 of this

Handbook.) The PD Staff shall address the following:

1\. Do the current maps of the National Flood Insurance Program

(NFIP) reveal that the proposed urban homesteading area is

located within the Flood Hazard Zone \"A\" and \"V\" series and

for which purchase of flood insurance is mandatory as a

condition of approval? If so, flood insurance will be

required for building located within the special flood

hazard area.

2\. Is flood insurance available within the community or has the

community been suspended from or is not otherwise

participating in the NFIP? If the NFIP has identified the

community as flood-prone for at least one year, and the

community is not participating in the NFIP, homesteading

cannot take place in those areas of the community that are

designated as having special flood hazards. A list entitled

\"Communities

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

7-3 3/90

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

6400.1 REV-1

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Participating in the National Flood Insurance Program\" is

forwarded to HUD Field Offices periodically by FEMA with the

necessary information on community participation.

G. Time Limitation of 30 calendar days for Accepting Title of

Property. The LUHA has 30 calendar days hold settlement from

the date of its notice to PD that it will accept title to a

property. (An alternative disposition plan may be approved for

the property if the LUHA fails to accept title within such

deadline.) The Field Office Manager may extend this 30-day period

for a reasonable period of time if acceptance by the LUHA within

the original 30-day period is impracticable. The environmental

review required for a specific property will be completed by PD

staff, and by CPD staff under paragraph 4-3, C.3, if applicable,

as soon as possible, so as to allow the LUHA to acquire the

property within the original 30-day period. This may be extended

if the Field Office Manager finds that more time is required to

comply with historic preservation or floodplain management

requirements applicable to the property. Failure by the LUHA to

act in a timely manner, except for environmental concerns, shall

be investigated by the Urban Homesteading Coordinator and a

reservation may be cancelled if the closing does not occur within

the allotted time.

7-3. ELIGIBILITY CRITERIA FOR CONVEYING HUD-OWNED PROPERTY TO APPROVED

URBAN HOMESTEADING PROGRAMS

A. The Criteria. Within the time period described in 24 CFR

590.17, the PD staff shall transfer the title to eligible

HUD-owned properties to a LUHA, without receiving payment from

the agency, if the following criteria are met:

1\. the initial application (including execution of an Urban

Homesteading Program Participation Agreement), or subsequent

annual request for program participation, has been approved

by HUD;

2\. the properties are in a HUD-approved urban homesteading

neighborhood;

3\. the Urban Homesteading Coordinator has reserved by a Form

HUD-718 the necessary Section 810 funds to reimburse the FHA

Mortgage Insurance Fund or the Section 312 Rehabilitation

Loan Fund for the as-is fair market value of the property, or

a negotiated lesser amount, plus closing costs;

4\. the requested property is unoccupied, needs repair and is not

subject to a repair or sales contract or a lease; and

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

3/90 7-4

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

6400.1 REV-1

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

5\. the requested property is suitable for the approved urban

homesteading program. A property is suitable if the

appraised as-is fair market value of the property or a

negotiated lesser amount does not exceed \$25,000 (excluding

closing costs), except as noted in B. below, for a one-unit

single-family residence or an additional \$8,000 for each unit

of two- to four-family residences. The as-is property value

shall be developed in accordance with the requirements of HUD

Handbook 4310.5 REV-1. PD provides a 10% discount off the

as-is fair market value for all properties offered to LUHAs.

B. Authorization to Acquire Higher-Value Properties with Section 810

Funds. The Field Office Manager may authorize on a

property-by-property basis the transfer of a HUD-owned property

where the value exceeds the limitations stated in paragraph 7-3,

A.5 for a one-unit property; but the approved higher value shall

not ordinarily exceed \$35,000. This authorization request is

prepared by the Urban Homesteading Coordinator. (Headquarters

shall approve all requests above \$35,000.) For two- to four-unit

properties, the cost remains at \$8,000 for each additional unit.

This authorization of a higher value should be granted only if

such a transfer will assist in meeting the neighborhood

preservation goals, where it will benefit the community by the

expedited occupancy of the property and the reduction of

difficulties (such as vandalism to the property) and delays that

HUD typically encounters in the disposition and sale of property,

and where suitable properties for large families exist.

Authorization to exceed the \$25,000 value will mean that more

funds will be used on fewer properties, and therefore the

decision to grant such an authorization should also take into

consideration the effect of reduced assets toward achievement of

the LUHA\'s neighborhood preservation goals. The decision to

grant a higher authorization should be a rare instance and not a

matter of routine. Typically, there should be few, if any,

higher valued properties unless the LUHA is willing to provide

the supplemental funds. If this is not the case and exceptions

to use Section 810 funds for higher value properties are the

rule, then the Field Office should consider the LUHA for close

out. There will be no program-wide authorization for higher

value properties.

C. Use of Additional Local Resources. If a LUHA wishes to conserve

its Section 810 resources, or if the Field Office should decide

not to authorize an increase of the Section 810 limit above

\$25,000, or some other fixed amount, properties of higher price

may be purchased by the LUHA with a combination of Section 810

and other resources such as CDBG funds (See paragraph 7-5 for the

cost breakout). This can be done by:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

7-5 3/90

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

6400.1 REV-1

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

1\. the Urban Homesteading Coordinator performing all Section 810

fund control procedures listed in Chapter 6, paragraph 6-1;

2\. the LUHA paying the Department of Housing and Urban

Development at closing the amount of the difference between

what the Field Office has set as a Section 810 cost limit

plus closing costs and the agreed upon price for the

property; and

3\. the Urban Homesteading Coordinator forwarding the LUHA\'s

check with the appropriate closing documents to the RAD so

that the FHA Mortgage Insurance Fund or the Section 312

Rehabilitation Loan Fund can be reimbursed. Such use of

additional funds does not affect the Section 810 requirement

for transfer of the property to the homesteader for nominal

consideration only.

7-4. THE VALUE OF HUD-OWNED PROPERTY TO BE DEDUCTED FROM SECTION 810

FUNDS RESERVATIONS

The amount charged to the Section 810 reservation for an approved

LUHA shall not exceed the as-is value of an eligible HUD-held

property (See paragraph 7-3, A. 5. and B). In addition, the Section

810 account may be charged for such allowable closing costs and fees

customarily charged in similar transactions in the locality if

normally charged to the buyer by HUD including, but not limited to,

recording fees and local transfer taxes. The actual amount to be

charged to the Section 810 account appears in the computation noted

in paragraph 7-5. Since HUD will provide evidence of marketable

title upon transfer of properties to LUHAs, local purchase of title

policies will not ordinarily be necessary. However, if a title

policy is desired by the LUHA, for the period prior to conditional

conveyance, the LUHA must cover the expense itself. For the period

after conditional conveyance to the homesteader, the LUHA may include

title insurance as a covered expense in the homesteader\'s

rehabilitation loan. HUD\'s share of prorated unpaid property taxes

and other property liens (e.g., utility bills) are paid out of the

appropriate insurance or loan fund and not out of the Section 810

account. Prepaid taxes are to be handled as described in paragraph

7-5. The LUHA\'s share of these prorated items is borne by the LUHA,

not the Section 810 account or the homesteader.

7-5. PREPARATION OF CLOSING PAPERS

In addition to the standard closing procedures performed in

accordance with HUD Handbook 4310.5 REV-1, the following are

additional instructions for preparing closing documents and

transmitting them to the RAD:

A. Sales Contract. The standard retail sales contract, HUD-9548,

must be used. The contract sales price must be the property\'s

\"as-is\" fair market value, or a negotiated lesser amount.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

3/90 7-6

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

6400.1 REV-1

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

B. Form HUD-9589. The Form HUD-9589, Transmittal of Closing

Information (Appendix 15), is prepared by the PD staff or the

closing agent who will check \"Urban Homestead Sale\" in Block 5.

Additional information for Block 5 is reflected on the reverse

side of the form. This information consists of a formula for

arriving at the amount to be charged to the Section 810 account:

1\. Contract sales price of property.

2\. Plus closing costs.

3\. Minus amount paid in cash by LUHA (non-Section 810 funds).

4\. Amount charged to Section 810. (This is the amount the RAD

will reimburse the FHA insurance fund or the Section 312 loan

fund.)

Please note the amount the LUHA has paid to reimburse HUD for any

prepaid taxes is located in Block 5 of the HUD-9589.

C. Form HUD-1. The HUD-1, Settlement Statement (Appendix 16), shall

be filled out so as to completely describe the sales closing.

The as-is, fair market value or negotiated lesser amount shall be

the contract price for the sale and will appear on Line 101 and

401\. The amount reimbursed to tile FHA fund or the Section 312

Rehabilitation Loan Fund from a LUHA\'s Section 810 allocation

must appear on Line 509 of the HUD-1 as \"Section 810

reimbursement, P.O.C.\" (P.O.C. stands for paid outside of

closing, since the reimbursement occurs after closing.) The

Section 810 reimbursement consists of the sales price of the

property, or a portion thereof, plus closing costs normally paid

by the buyer of HUD-owned property. The amount exceeding the

Section 810 limit (see paragraph 7-3 C.) will appear on Lines

208 and 508. Do not include reimbursement for prepaid taxes in

this amount.

Immediately after settlement, the PD staff shall provide copies

of the HUD-9589 and HUD-1 to the Urban Homesteading Coordinator

for transmission to the RAD. After receiving the HUD-1 and

HUD-9589, if the Urban Homesteading Coordinator should determine

that some costs are not allowable, the Urban Homesteading

Coordinator shall make adjustments on the HUD-9589 prior to

transmitting the package to the RAD, and return copies of the

amended HUD-9589 and the revised HUD-718 to PD.

D. Deed. The deed shall be prepared in triplicate by PD or PD\'s

Contract Closing Agent. The original shall be forwarded to the

LUHA after recordation by PD or a PD Contract Closing Agent. A

copy shall be retained in the property case binder.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

7-7 3/90

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

6400.1 REV-1

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

E. Title Evidence. PD shall furnish the appropriate title evidence

in its possession at the time of closing to the LUHA. The LUHA

may purchase a title policy locally at its own expense if it is

required at closing and title evidence satisfactory to the local

jurisdiction is not available from HUD. This is not a

reimbursable expense from Section 810.

F. Real Estate Taxes. Real estate taxes shall be processed as

follows:

1\. Taxes Unpaid by HUD. Where PD has not yet paid the taxes,

and the closing statement would ordinarily reflect a credit

to the LUHA for HUD\'s share of the taxes, the Form HUD-1

shall reflect HUD\'s prorated share of taxes to the date of

closing. An SF-1034 shall be prepared by PD showing the LUHA

as the payee and setting forth the amount of HUD\'s prorated

share of the taxes due to the LUHA. A copy of the voucher

shall be attached to the HUD-9589 and HUD-1 submitted to the

Urban Homesteading Coordinator, and the original voucher

shall be forwarded for processing and payment to Single

Family Accounting and Management System Contractor, Data

Prompt Incorporated, P.O. Box 3579, Silver Spring, MD

20918-0579.

2\. Taxes Prepaid by HUD. When HUD has prepaid the real estate

taxes and would be due a refund at closing, PD shall request

a refund from the LUHA, which shall be reflected on the

HUD-9589. PROPERTIES ARE NOT TO BE CONVEYED UNTIL PREPAID

TAXES ARE REFUNDED. When the prepaid taxes are received, PD

shall deposit them in accordance with the Fiscal and ADP

Handbook, 4110.1 REV, and then notify the RAD on the Schedule

of Collection, Form HUD-2022. The notification shall include

the case number and address of the property on which prepaid

taxes were received along with the following typewritten

notation: \"Taxes Due HUD on Urban Homesteading Transfer.\"

G. Transmission and Distribution of Closing Documents. PD shall

comply with Handbook 4310.5, REV-1 regarding the prompt

transmission of closing papers. The HUD-9589 must include the

correct fiscal year Urban Homesteading number assigned to the

locality in which the property being sold is located (See Chapter

5). The PD staff shall transmit closing statements and

appropriate vouchers or receipts as necessary, to the Urban

Homesteading Coordinator immediately after closing. The Urban

Homesteading Coordinator shall then attach a copy of the executed

Form HUD-713, and immediately transmit it to the RAD for

processing. For closings held near the end of the fiscal year or

on September 30, all documents must be received by the RAD no

later than the third work day in October or on such date as

agreed upon between the Urban Homesteading Coordinator and the

RAD.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

3/90 7-8