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Section 32 regulations can be found at 24 CFR 906. For detailed
information on the Section 32 program and additional guidance for
completing this form, see the *Section 32 Desk Guide* found at
<http://www.hud.gov/utilities/intercept.cfm?/offices/pih/centers/sac/homeownership/section32deskguide.pdf>.
For a complete description of the Middle-Income, Section 24/9, and
Section 32, Section 8(y) programs, refer to *Some Homeownership
Guidelines for PHAs* found at
http://www.hud.gov/offices/pih/programs/ph/hope6/mfph/ho_guide.pdf

A. **[I. Components of the Homeownership Plan]{.smallcaps}**

All homeownership plans should include narrative and supporting
documentation detailing specific requirements. These requirements
include the following (24 CFR Part 906.39):

A.  **Method Of Sale**

## *Purpose:* To inform HUD of the factual circumstances of the proposed homeownership program. 

*Instructions:* Provide a brief narrative that describes the goals and
objectives of the homeownership program to be reviewed. Include the
following information:

-   The overall unit count broken down by unit type;

-   Method of sale (fee simple, condominium, Lease Purchase, etc.),
    including the terms of the sale program.

-   The building type(s) (e.g., row, elevator, detached/semi-detached,
    walk-up, etc.);

-   Sources of funding;

-   The names of the major partners; and

-   Any unusual features of the project (e.g., a land swap, scattered
    site acquisition and development, etc.).

  --------------------- ------- ------- ------- ------- ---------------- --------------------------------------
  *Name of PHA:*                                                         

  *Name of                                                               
  Phase/Development:*                                                    

  *HOPE VI Grant                                                              
  No./Development                                                        
  Project No.:*                                                          

  *Contact Name:*                                                        

  *Contact Phone No.:*                                                   

  *Narrative:*                                                           
  --------------------- ------- ------- ------- ------- ---------------- --------------------------------------

# 

> **B. Property description**

*Purpose:* To provide HUD with factual information relative to the units
and property to be sold through the homeownership program.

*Instructions:* Complete the following chart and narrative along with
appropriate supporting documentation (see Section II Supporting
Documentation) that describes in detail the property/properties to be
included in the program. **If selling existing ACC Units**, include the
project number or street address, specific dwellings to be sold, bedroom
distribution by size and type broken down by project, description of
current building conditions and fair market value, description of
physical assessment of buildings in the program**. If acquiring
housing,** include a description of proposed general location of
property or street addresses of properties to be acquired, project
acquisition schedule, budget including sources of funds and acquisition,
relocation, and closing costs, (where sites are identified) appraisal
and environmental information, and bedroom distribution by size and type
broken down by project. **If offering financing assistance to
households**, include a description of area in which assistance to be
used (see Section C, Property description (1) of the Desk Guide for an
example), describe method(s) of financing to be used (NOTE: an
application for sale that includes ACC units is made through the Public
Housing Information Center (PIC).

  ------------------------- -------- ------------------------------------
  Existing ACC Units                 

  New ACC Units                      

  HA Acquired Non ACC units          

  Financing Assistance Only          

  **Total**                          

                                     
  ------------------------- -------- ------------------------------------

C.  **PHA and PRE performance in homeownership.**

*Purpose:* To determine the capacity and capability of the PHA to
successfully implement a homeownership program.

***Instructions:* Include a narrative describing the PHA and its
partners past experience in carrying out homeownership programs for
low-income families. For PHA's that have not previously implemented a
homeownership program, please describe the PHA's experience in carrying
our public housing modernization and development projects.**

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**D. Repair or rehabilitation**

*Purpose:* To inform HUD of the assessing and implementing any repair or
rehabilitation to meet federal, state, or local requirements

*Instructions:* If the PHA plans to sell existing public housing rental
units or acquire units that need repair, provide a narrative describing
the process of assessment/implementing repair, identification of code
violations or housing quality standard inadequacies and plans to address
each code violation or inadequacy, Compliance with lead based Paint
requirements, a cost estimate to rehabilitate buildings, obligation to
make the units 504 compliant, and projections of estimate of repair
costs in the next 5 years.

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**E. Purchaser eligibility and selection (24 CFR 906.11)**

*Purpose:* To provide HUD with an understanding of the PHA's priorities
for project purchasers and restrictions on purchaser eligibility.

*Instructions:* Complete the following information on purchaser
requirements.

1.  Purchaser eligibility.

    a.  Order of preferences for potential homebuyers

    b.  Replacement/maintenance reserve requirement (if applicable)

    c.  Fair Housing Marketing Plan (if applicable)

2.  Selection criteria

    a.  Documentation of outreach

    b.  Description of application process

    c.  List of documentation needed from applicants

    d.  Clearly defined application review criteria

3.  Restrictions

    a.  Prior homeownership (if applicable)

    b.  Occupancy requirement (principal residence)

    c.  HA certifies that applicants meets housing cost that does not
        exceeds 35% of income

    d.  Employment/credit requirements (if applicable)

    e.  Other (PHA determined restrictions)

> \*Please note that the applicant\'s monthly payments for mortgage and
> housing expenses (i.e., principal and interest, taxes, insurance,
> maintenance, utilities and other regularly recurring homeownership
> costs (e.g., condominium fees)) may not exceed 35% of the applicants
> adjusted income plus any other subsidy used for monthly payments.

+---------------------------------------------------+------------------+
| Minimum purchaser income amount and percentage of | \$               |
| AMI:                                              | [                |
|                                                   |    ]{.underline} |
|                                                   | =                |
|                                                   | [                |
|                                                   |   ]{.underline}% |
+---------------------------------------------------+------------------+
| Maximum purchaser income amount and percentage of | \$               |
| AMI:                                              | [                |
|                                                   |    ]{.underline} |
|                                                   | =                |
|                                                   | [                |
|                                                   |   ]{.underline}% |
+---------------------------------------------------+------------------+
| Minimum downpayment amount or percentage of       | \$               |
| purchase price from purchaser's own funds:        | [                |
|                                                   |    ]{.underline} |
|                                                   | or               |
|                                                   |                  |
|                                                   | [                |
|                                                   |   ]{.underline}% |
|                                                   | of sales price   |
+---------------------------------------------------+------------------+
| Describe process for purchaser eligibility.       |                  |
+---------------------------------------------------+------------------+
| *     *                                           |                  |
+---------------------------------------------------+------------------+
| Describe priorities for selection of purchasers   |                  |
| (e.g. residency).                                 |                  |
+---------------------------------------------------+------------------+
| *     *                                           |                  |
+---------------------------------------------------+------------------+
| Describe income tiering structure for eligible    |                  |
| program purchasers (if applicable). How many      |                  |
| homes will be set-aside for each tier?            |                  |
+---------------------------------------------------+------------------+
| *     *                                           |                  |
+---------------------------------------------------+------------------+
| Describe any additional requirements (including   |                  |
| housing quality standards for soft second         |                  |
| mortgage or acquisition sale programs).           |                  |
+---------------------------------------------------+------------------+
| *     *                                           |                  |
+---------------------------------------------------+------------------+

**Does the plan allow for participation by families not currently
residing in public housing or receiving Section 8 assistance?** Yes No

(If Yes, include an affirmative fair housing marketing strategy.
Specifically, this strategy should describe how the PHA (or PRE) will
inform non-public housing, income-eligible households of their
eligibility to apply, and make special outreach to solicit applications
from those in the housing market who are least likely to apply).

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  *     *

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**F. Consultation with residents and purchasers**

*Purpose:* To inform HUD of compliance with the resident consultation
requirements of the PHA Plan.

*Instructions:* If the PHA intends to sell existing public housing,
provide a narrative description of input obtained during the resident
consultation process for planning, as well as a plan for consultation
with purchasers during the implementation stage.

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**G. Counseling**

*Purpose:* To provide HUD with information regarding the homeownership
counseling program requirements and the PHA's counseling implementation
plan.

*Instructions:* Complete the following questions on the homeownership
counseling agency and program.

*Note:* The budget should include funds for the homeownership counseling
program.

Name of Counseling Agency and Description of the Agency's experience in
the community.

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Describe the curriculum and scope of services for the agency under this
homeownership proposal.

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Describe the PHA's strategy to assist prospective homebuyers in
accumulating their initial downpayment. Does the PHA's strategy include
a Family Self-Sufficiency (FSS) escrow account or an Individual
Development Account (IDA)?

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Describe the PHA's strategy to ensure that all prospective homebuyers
have steady employment and adequate income to support homeownership
costs.

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Describe the role of Housing Choice Vouchers in your homeownership
strategy, if applicable.

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**H. Sale via Purchase and Resale Entity (PRE) (24 CFR 906.19)**

*Purpose:* To inform HUD of the structure of any ownership and sale
partners the PHA will utilize.

*Instructions:* Please complete information about ownership as needed.

**Is a PRE to be used for the sale of units?** Yes No

Instructions: If yes, please provide the firm's qualifications,
marketing plan, and a description of that entity's responsibilities as
well as information demonstrating that the written agreement between the
PRE and PHA contains or will contain the following: rights and
responsibilities of parties; assurances of compliance with program
requirements; assurances of deed restrictions on acquisition and resale
of units; description of how the net proceeds will be determined and
used; protections against fraud and misuse; limitations on overhead and
profit; record keeping/reporting requirements; assurances of
non-discrimination against eligible purchasers; adequate legal remedies;
assurances of sale only to low-income households; a five-year limit on
sale to eligible buyers; and the notification process to households
(relocation, environmental review).

Note: Also see Section II (A) of this Addendum

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  *     *

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I.  **Non-purchasing residents**

*Purpose:* To provide information relative to the handling of
displacement of residents that decline the right of first refusal for
sale of their unit.

*Instructions:* Please provide description of plan for working with
non-purchasing residents of Public Housing Units, including,
notification/counseling of rights, right of first refusal, and
relocation assistance.

Is the PHA selling ACC Units? Yes No

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  *     *

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**J. Sale proceeds**

*Purpose:* To determine if the PHA is in compliance with the restriction
of use of resale proceeds and fees to further low income housing.

*Instructions:* Sales proceeds are defined as proceeds realized by the
owner entity/developer from the sale of homeownership units after the
payments of the construction loan(s), the developer fee, and all other
project costs have been satisfied. Answer the following questions in
narrative form for the proposed homeownership project. Please include
the Goals, Eligible uses, and Method for recycling funds. If the
homeownership plan utilizes a PRE, the PHA may opt to have the PRE
return sale proceeds to the PHA or permit the PRE to use them for
low-income housing purposes.

After payment of all expenses, how are sale proceeds distributed?

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  *     *

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Complete the following table to indicate what fees (e.g., developer fee,
loan administration fees, counseling agency fees, etc.), if any, are to
be paid to the PHA or PHA affiliate.

  ---------------------------------------------------------- ------------
  Type of Fee/Description                                    Amount

                                                             \$      

                                                             \$      

                                                             \$      
  ---------------------------------------------------------- ------------

What are the expected sources of project income (e.g., repayments of
loans, PHA development fees, etc.) and what is the PHA's planned use for
this project income?

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**K. Records, Accounts, and Reports**

*Purpose:* To determine the PHA has policies for retaining documentation
of unit sales and compliance with program requirements.

*Instructions:* The plan must provide a description of the PHA's (and
PRE's, if applicable) record-keeping, accounting, and reporting
procedures that will be used. Please include a description of record
keeping process by PHA relative to administrative records, records of
the purchase, financial records, as well as, a plan for annual report on
sales to HUD/PIC and in the Annual Plan.

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**L. Timetable**

*Purpose:* To provide HUD with a timeframe for project performance,
progress and completion.

*Instructions:* Please fill in the date range of activities including
activities for the first unit and activities for the last unit. For
example, if the PHA is acquiring units, the first unit will be acquired
on 12/04 and the final unit will be acquired 12/05, the range would be
12/04 through 12/05. If a specific milestone does not apply to the
proposed program please check the box labeled N/A.

+-------------------------------------------------------+--------------+
| Activity                                              | Date Range   |
+-------------------------------------------------------+--------------+
| Resident meetings and other consultations N/A         | >            |
+-------------------------------------------------------+--------------+
| When each source of funding will be secured N/A       | >            |
+-------------------------------------------------------+--------------+
| Units to be acquired N/A                              | >            |
+-------------------------------------------------------+--------------+
| Units to be rehabilitated N/A                         | >            |
+-------------------------------------------------------+--------------+
| Units to be sold N/A                                  | >            |
+-------------------------------------------------------+--------------+
| Marketing and outreach process N/A                    | >            |
+-------------------------------------------------------+--------------+
| Duration of counseling and training N/A               | >            |
+-------------------------------------------------------+--------------+

M.  **Description of the deed or title restrictions.**

Gains from Appreciation

*Purpose:* To determine if the PHA's provisions (where applicable)
adequately protect the PHA's investment in the homeownership project.

*Instructions:* If a PHA is writing down the cost of construction (e.g.,
the construction cost exceeds the sale price/appraised value), it must
consider a provision in its homeownership project to recapture all, some
or none of the gains from appreciation. This provision limits the amount
the subsidized original purchasers can realize due to appreciation of
the property upon sale for a period of time, and is generally recorded
in a deed restriction. The PHA's recapture policy on appreciation may
range from no recapture to recapture of total appreciation. This
provision only applies to the sharing of sale proceeds and does not
address the recapture of financing that the PHA may elect to provide
directly to a purchaser.

If applicable, describe how the PHA will treat the gain upon resale that
the subsidized buyer can realize due to appreciation of property.

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Recapture Provisions

*Purpose:* To determine if the proposed recapture provisions (where
applicable) are appropriate for the target purchasers, are coordinated
with direct financing terms of local partnering affordable homeownership
programs, and adequately protect the PHA's and purchasers' investments
in the homeownership project.

*Instructions:* The PHA must set a policy regarding recapture upon
resale of government-provided assistance and/or direct financing made to
the purchaser to the extent that there are net proceeds. This includes
the PHA downpayment, closing cost assistance, subordinate mortgage
financing, or below-market financing (e.g., sale of the unit for less
than appraised value of the home). However, this policy may range from
no recapture of assistance to full recapture of assistance.

If applicable, describe the terms of the direct financing to purchasers
and terms of recapture. Describe also the method of recapture (e.g., via
a promissory note). If the PHA chooses to forgive the direct financing
over time, fill out the table below as applicable. (Table may be
modified to reflect longer-term or shorter-term forgiveness schedule).

  -------------------------------- --------------------------------------
  Year of Resale                   Rate of Forgiveness\*

                                        %

                                        %

                                        %

                                        %

                                        %

                                        %

                                        %

                                        %

                                        %
  -------------------------------- --------------------------------------

If there is additional direct financing from participating local
affordable homeownership program partners, briefly describe the terms of
their direct financing and amount of direct financing per purchaser.
Describe how the PHA's direct financing terms coordinate with the local
program partners' financing terms.

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**[II. Supporting Documentation]{.smallcaps}**

In accordance with 24 CFR Part 906.40, PHAs submitting a Section 32
homeownership plan should provide HUD the following supporting
documentation:

A.  **PRE**

> If the PHA is utilizing a PRE, the plan should include the following:

-   Organizational documents of the PRE;

-   Regulatory and Operating Agreement between the PHA and PRE regarding
    the provision of operating subsidy and operation of public housing
    units prior to sale of the units to purchasers;

-   Management agreement and plan;

-   Financing documents (if any);

-   Operating pro forma describing use of operating subsidy during
    period of PRE's ownership;

-   Mixed-finance ACC Amendment governing these units;

-   Deed restriction or covenant running with the land assuring that the
    PRE will operate the units in accordance with public housing laws
    and regulations including 906.19 of Section 32 regulations;

-   Bond for repairs or proof of insurance to cover any damage to the
    property during the period of PRE ownership and operation; and

-   Any other materials required by HUD.

> **B. Feasibility statement.** A Feasibility Tool set of spreadsheets
> is available on the SAC website.

**C. Legal opinion.**

D.  **Board resolution.** Through the resolution by the PHA's Board of
    Commissioners approving this plan the PHA agrees to the following
    certifications.

E.  **Certifications.**

Nondiscrimination certification.

The PHA herby certifies that it will administer the plan on a
nondiscriminatory basis, in accordance with the Fair Housing Act, Title
VI of the Civil Rights Act of 1964, Executive Order 11063, other
authorities cited in 24 CFR Sec. 5.105(a), and the implementing
regulations, and will assure compliance with those requirements by any
other entity that may assume substantial responsibilities for
implementing the program.

Section 8(y) Certification.

In any case where the PHA plans to provide families with assistance
under the Section 8(y) homeownership option in connection with this
homeownership program, The PHA hereby certifies that the PHA will comply
with the requirements of the Section 8(y) statute and implementing
regulations.

> **G. Other information**. Any other information as may be reasonably
> required for HUD review of the program.