6400.1 REV-1

APPENDIX 26A

SAMPLE

(Approval Letter for New LUHA - Prior to Availability of Funds)

Honorable \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Mayor of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

City, State Zip

Dear Mayor \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_:

SUBJECT: Approval of Urban Homesteading Mortgage Program

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

We are pleased to announce that your Urban Homesteading Program

Application has been approved. Enclosed are \_\_\_\_\_ copies of the
Urban

Homesteading Program Participation Agreement (HUD-40051). This

Agreement constitutes the contract between the Department of Housing

and Urban Development and \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (the
applicant), and the

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (administering agency, if
applicable). All copies

are to be executed by you and the Chief Executive Officer of the

designated administering agency, if applicable. Please return two

executed originals to this office as soon as possible.

As you know, Section 810 funds are used to reimburse HUD/FHA

for properties transferred for Urban Homesteading. In addition,

Section 810 funds may be used to reimburse the U.S. Department of

Veterans Affairs (VA) and the Farmers\' Home Administration (FmHA) for

properties in their inventories eligible for Urban Homesteading

purposes. The maximum value to be charged to Section 810 shall not

exceed \$25,000 for each property, except as otherwise approved by this

office for a specific property.

At the present time, Section 810 funds are unavailable due to

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. We will notify you when funds are
available, at

which time you will be able to acquire HUD/FHA properties from the

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ office (or VA properties from
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ or FmHA

properties from \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ ). These funds will be
made available to

our local urban homesteading agencies as properties become available on

a first-come, first-served basis.

You are reminded that the implementation of the program will be

monitored by our office. Our monitoring will concentrate on the items

contained in the Certifications and your approved application.

Should you have any questions regarding this matter, please call

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, Urban Homesteading Coordinator, at (
) \_\_\_\_\_\_\_\_\_\_\_\_\_.

Sincerely,

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

Manager or CPD Director

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

6400.1 REV-1

APPENDIX 26B

SAMPLE

(Follow-up Letter Indicating the Availability

of Funds for New LUHAs)

Honorable \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Mayor of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

City, State Zip

Dear Mayor \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_:

This is a follow-up to my letter dated
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ wherein we

notified you that your application for an Urban Homesteading Program

has been approved.

The \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Field Office has received
\$\_\_\_\_\_\_\_\_\_\_ in Section

810 funds. A set-aside of \$ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ is earmarked
for your City for

60 days from the date of this letter. Thereafter, if any of these

funds are unused, you will compete for them with the other Local Urban

Homesteading Agencies within this Field Office\'s jurisdiction on a

first-come, first-served oasis.

You may proceed to acquire properties following these procedures.

The maximum value of each Urban Homesteading property to be charged to

Section 810 shall not exceed \$25,000, except as otherwise, approved by

this office for a specific property. Property title transfer to the

locality may not be made until you submit a \"Verification of Fund

Availability\" (form HUD-40050) to the Urban Homesteading Coordinator in

this office. You will receive from him/her a separate \"Funds

Reservation and Contract Authority\" (form HUD-718) indicating that

funds have been reserved for each property that you wish to acquire.

The property closing can then take place. Copies of the HUD-40050 are

enclosed. Please be cognizant that any unobligated funds (where the

property transfer has not yet occurred, even though funds may have been

reserved by a HUD-718) will be recaptured by HUD as of September 30.

Please note your Urban Homesteading project number
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ which

must appear on all program forms and documentation.

In addition, upon acquisition of your first Section 810 property,

you must begin reporting in HUD\'s Urban Homesteading Program Management

Information System (UHPMIS). Enclosed is a form HUD-40063, Property

Addition form and HUD-40063-A, Instructions for Updating the Quarterly

Property Report and the Quarterly Progress Report. These forms are

sent directly to HUD Headquarters in Washington, D.C. If you are

delinquent or fail to submit updated reports on a regular basis, as

required, then we may withhold additional funds until the reports are

filed. These reports measure LUHA performance.

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

6400.1 REV-1

APPENDIX 26B

We also wish to remind you that according to 24 CFR 590.11(b),

\"Annual Request for Program Participation,\" You must notify this HUD

Field Office in writing on or before August 1, 19\_\_\_, and annually

thereafter, if you wish to continue to participate in the Urban

Homesteading Program.

If you have any questions, please call
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, Urban

Homesteading Coordinator, at
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

Sincerely,

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

Manager or CPD Director

Enclosures

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

6400.1 REV-1

APPENDIX 26C

SAMPLE

(Approval Letter with Funding for New LUHAs)

Honorable \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Mayor of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

City, State Zip

Dear Mayor \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_:

SUBJECT: Approval of Urban Homesteading Program

Project No. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

I am pleased to announce that your Urban Homesteading Program

application has been approved.

Enclosed are \_\_\_\_\_\_\_ copies of the Urban Homesteading Agreement

(HUD-40051) which constitutes the contract between the Department of

Housing and Urban Development and \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
All copies must be

executed by you and the Chief Executive Officer of the designated

administering agency, if appropriate. Please return two executed

originals to this office as soon as possible. You may accept

properties from the HUD \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Office (or
VA properties from

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ or FmHA properties from
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_) as soon as the

agreement is executed and received by HUD. The maximum value of each

Urban Homesteading property to be transferred shall not exceed

\$25,000, except as otherwise approved by this office for a specific

property.

This office was assigned \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ in Section
810 funds this

fiscal year. A set-aside of \$
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ is earmarked for your

City for 60 days from the date of this letter. Thereafter, if any of

these funds are unused, you will compete for them with our other Local

Urban Homesteading Agencies as properties become available on a

first-come, first-served basis. Property title transfer to the locality

may not be made until you submit \"Verification of Fund Availability\"
(form

HUD-40050) and receive from us a signed \"Funds Reservation and Contract

Authority,\" form HUD-718, indicating that funds are reserved and

available for the individual property. A supply of the form HUD-40060

is enclosed for your use. Any unobligated funds (where the property

transfer has not occurred, even though funds may be reserved by a

HUD-718) will be recaptured at the end of the fiscal year. Please note

your Urban Homesteading project number (\_\_\_\_\_\_\_\_\_\_\_\_\_\_)
which must be

used on all program forms.

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

6400.1 REV-1

APPENDIX 26C

Upon acquisition of your first Section 810 property, you must

begin reporting in HUD\'s Urban Homesteading Program Management

Information System. Enclosed is a form HUD-40063, Property Addition

form, and HUD-40063-A, Instructions for Updating the Quarterly Property

Report and the Quarterly Progress Report. These forms are sent

directly to HUD Headquarters in Washington, DC. If you are delinquent

or continuously fail to submit updated reports, as required, then HUD

may withhold additional funds until the reports are filed. These

reports measure LUHA performance.

We also wish to remind you that according to 24 CFR 590.11(b)),

\"Annual Request for Program Participation,\" you must notify the HUD

Field Office in writing on or before August 1, 19\_\_\_\_, and annually

thereafter, if you wish to participate in the Urban Homesteading

Program.

Should you have any questions, please call
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,

Urban Homesteading Coordinator, at (\_\_\_\_)\_\_\_\_\_\_\_\_\_\_\_\_\_.

Sincerely,

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

Manager or CPD Director

Enclosure

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

6400.1 REV-1

APPENDIX 26D

SAMPLE

(Annual Approval)

Honorable \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Mayor of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

City, State Zip

Dear Mayor \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_:

SUBJECT: Approval of Fiscal Year \_\_\_\_\_ Urban Homesteading Program

Annual Request for Participation, City, State , Project

No. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

This is in response to your letter dated \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
in which

you request approval for the City of \_\_\_\_\_\_\_\_\_\_\_\_ to
participate in the

Urban Homesteading Program in FY \_\_\_\_\_\_\_\_\_. I am pleased to
notify you

that your request has been approved. At this time the FY \_\_\_ budget

for the U.S. Department of Housing and Urban Development has not been

approved, so the funding level has not been established. You will be

notified of funding availability at a later date.

In accordance with 24 CFR 590.11(b) and 24 CFR 590.13(b), the

Urban Homesteading Agreement executed in FY \_\_\_\_\_ is in effect for

another year. The same terms, conditions, and assurances remain in

effect with respect to the use of Section 810 funds.

As in the past, you must submit a HUD-40050, Verification of Fund

Availability, to the HUD Urban Homesteading Coordinator to identify the

property(ies) that you have selected for your program, and receive from

us a signed HUD-718, Funds Reservation and Contract Authority,

indicating that funds are reserved and the closing can take place.

Any unobligated funds (where the property transfer has not occurred,

even though funds may be reserved by a HUD-718) will be recaptured at

the end of the fiscal year. Please note that the new Urban

Homesteading number for \_\_\_\_\_\_\_(City)\_\_\_\_\_\_\_\_\_\_ this
fiscal year is \_\_\_\_\_\_

\_\_\_\_\_(no hyphens)\_\_\_\_\_\_\_\_.

As you know, Section 810 funds are used to reimburse the HUD/FHA,

VA, and/or FmHA for properties in their inventories that are eligible

for urban homesteading. The maximum value of each Urban Homesteading

property to be transferred should not exceed \$25,000, except as

otherwise approved by this office for a specific property.

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

6400.1 REV-1

APPENDIX 26D

We also wish to remind you that in accordance with 24 CFR

590.11(b), you must notify this HUD Field Office in writing on or

before August 1, 19\_\_\_\_, and annually thereafter, if you wish to

participate in the Urban Homesteading Program in the upcoming fiscal

year.

If you have any questions about this letter, please call

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ at
(\_\_\_\_\_)\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

Sincerely,

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

Manager

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

6400.1 REV-1

APPENDIX 26E.1.

SAMPLE

(For Involuntary Closeout)

Date

Honorable \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Mayor of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

City, State Zip

Dear Mayor\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_:

SUBJECT: Pending Closeout of City of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_Urban Homesteading

Program, Project No. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

This letter informs you that the Department of Housing and Urban

Development is initiating closeout of the City\'s Urban Homesteading

Program in accordance with 24 CFR 590.23, due to give explanations .

Please be advised that you have an opportunity to inform this

office in writing within 30 days of receipt of this letter of any

circumstances that would make this action unwarranted. In the interim,

please feel free to contact \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
of my staff at

(\_\_\_) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

Sincerely,

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

Manager

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

6400.1 REV-1

APPENDIX 26E.2.

SAMPLE

(Initiation of Closeout \-- Lack of Properties)

Date

Honorable \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Mayor of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

City, State Zip

Dear Mayor \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_:

SUBJECT: Initiation of Closeout of City of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Urban

Homesteading Program, Project No.
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

This letter initiates closeout proceedings for your Urban

Homesteading Program under 24 CFR 590.23. The reason for closeout is

the lack of suitable Federal properties due to local market conditions

wherein the Federal property foreclosures have diminished and

homesteading is no longer viable nor cost effective.

Under the terms and conditions of the Urban Homesteading Agreement

executed on \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, the LUHA continues to be
obligated with

respect to the conditional conveyance, monitoring, and final conveyance

of properties to homesteaders even after closeout until all properties

are conveyed fee simple to homesteaders. In order for HUD to close out

the program, we must be certain that all program requirements have been

met. Therefore, we request the following:

1\. A report on all properties that were conveyed fee simple to

homesteaders prior to implementation of the UHPMIS in FY 1986

if they were not entered into the UHPMIS. Information on each

property must include the

\(a\) property address;

\(b\) Section 810 drawdown amount;

\(c\) date of transfer from the Federal agency to the LUHA;

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

6400.1 REV-1

APPENDIX 26E.2.

\(d\) date of final conveyance;

\(e\) disposition of property if not homesteading, the date of

HUD approval, and the alternative use.

2\. Updated UHPMIS Quarterly Property and Progress Reports for all

properties that have not been conveyed fee simple.

3\. A plan for program management after closeout that includes a

schedule until all properties have been conveyed fee simple.

Please furnish the name, title, department, and telephone

number of the contact person responsible for oversight.

Please make the above items available to us within \_\_\_\_\_ days

months . Upon review of this, we will issue a letter of program

completion. If you should have any questions, please contact

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, Urban Homesteading
Coordinator, in this office

at (\_\_\_) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

Sincerely,

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

Manager

2

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

6400.1 REV-1

APPENDIX 26E.3.

SAMPLE

(Letter of Program Completion and Closeout)

Date

Honorable \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Mayor of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

City, State Zip

Dear Mayor \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_:

SUBJECT: Urban Homesteading Program Completion, City of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Project No. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

This letter responds to your letter of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

submitting information for our approval of program completion and

closeout.

We approve your management plan as submitted. Final program

closeout is conditioned upon:

1\. Monitoring of the milestones of the remaining \_\_\_\_\_\_\_\_
properties

through final conveyance;

2\. Updating of the UHPMIS Quarterly Property and Progress Reports

and their timely submission to Headquarters;

3\. Monitoring and enforcing the Homesteader\'s Agreement with

homesteaders. This includes confirming continued occupancy

and follow-through on any rehabilitation loan delinquencies.

This may entail, if necessary, finding a new homesteader in

the event of a breach of the homesteader Agreement, or

obtaining approval from HUD for alternative use for a property

if re-homesteading proves to be infeasible.

4\. If applicable, flood insurance coverage for any affected

property owner must be maintained for the mandatory period;

5\. etc.

If you should have any questions, you may contact
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,

Urban Homesteading Coordinator in this office, at (\_\_\_)
\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

Sincerely,

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

Manager

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

6400.1 REV-1

APPENDIX 26E.4.

SAMPLE

FINAL CLOSEOUT LETTER

(After all properties are conveyed fee simple to homesteaders)

Date

Honorable \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Mayor of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

City, State Zip

Dear Mayor \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_:

This letter confirms final closeout of the City of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Urban Homesteading Program. All requirements under the original Urban

homesteading Agreement and our letter of program completion dated

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ have been met.

We look forward to working with you in future HUD programs.

Sincerely,

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

Manager