**VA Pamphlet 26-7, Revised Chapter 12: Minimum Property Requirements**

## Chapter 12

## Minimum Property Requirements

#### Overview

+------------+---------------------------------------------------------+
| #          | > VA Minimum Property Requirements (MPRs) provide       |
| #### Purpo | > general acceptability criteria for properties which   |
| se of MPRs | > will become the security for VA-guaranteed loans.     |
|            | >                                                       |
|            | > In proposed or under construction cases, the MPRs     |
|            | > help ensure that the property is constructed          |
|            | > according to the applicable                           |
|            |                                                         |
|            | -   building code                                       |
|            |                                                         |
|            | -   Federal regulations, and                            |
|            |                                                         |
|            | -   HUD requirements.                                   |
|            |                                                         |
|            | > In existing and new construction cases, the MPRs      |
|            | > provide a basis for determining that the property is  |
|            |                                                         |
|            | -   safe, structurally sound and sanitary, and          |
|            |                                                         |
|            | -   meets the standards considered acceptable in a      |
|            |     permanent home in its locality.                     |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### Sco  | > Any reference to "MPRs for existing construction" in  |
| pe of MPRs | > this handbook applies to all MPRs outlined in this    |
|            | > chapter, except those shown as specifically           |
|            | > applicable to "proposed construction."                |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > Additional MPRs apply to Specially Adapted Housing    |
| #### Speci | > program cases. Each VA office has an SAH agent to     |
| ally Adapt | > answer questions.                                     |
| ed Housing |                                                         |
+------------+---------------------------------------------------------+

Continued on next page

January 1, 2001 12-1

**VA Pamphlet 26-7, Revised Chapter 12: Minimum Property Requirements**

Overview, Continued

+------------+---+----------------------------------------------+---------+---+
| #          | > |                                              |         |   |
| #### In Th |   |                                              |         |   |
| is Chapter | T |                                              |         |   |
|            | h |                                              |         |   |
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|            | h |                                              |         |   |
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|            | > |                                              |         |   |
|            |   |                                              |         |   |
|            | f |                                              |         |   |
|            | o |                                              |         |   |
|            | l |                                              |         |   |
|            | l |                                              |         |   |
|            | o |                                              |         |   |
|            | w |                                              |         |   |
|            | i |                                              |         |   |
|            | n |                                              |         |   |
|            | g |                                              |         |   |
|            | > |                                              |         |   |
|            |   |                                              |         |   |
|            | t |                                              |         |   |
|            | o |                                              |         |   |
|            | p |                                              |         |   |
|            | i |                                              |         |   |
|            | c |                                              |         |   |
|            | s |                                              |         |   |
|            | . |                                              |         |   |
+------------+---+----------------------------------------------+---------+---+
|            |   | Topic                                        | See     |   |
|            |   |                                              | Page    |   |
+------------+---+----------------------------------------------+---------+---+
|            |   | 12.01 MPR Variations and Exemptions          | 12-3    |   |
+------------+---+----------------------------------------------+---------+---+
|            |   | 12.02 Proposed Construction MPRs             | 12-4    |   |
+------------+---+----------------------------------------------+---------+---+
|            |   | 12.03 Basic MPRs                             | 12-6    |   |
+------------+---+----------------------------------------------+---------+---+
|            |   | 12.04 Shared Facilities and Utilities        | 12-9    |   |
+------------+---+----------------------------------------------+---------+---+
|            |   | 12.05 Access-Related Issues                  | 12-10   |   |
+------------+---+----------------------------------------------+---------+---+
|            |   | 12.06 Hazards and Defective Conditions       | 12-11   |   |
+------------+---+----------------------------------------------+---------+---+
|            |   | 12.07 Fuel Pipelines and High Voltage        | 12-13   |   |
|            |   | Electric Lines                               |         |   |
+------------+---+----------------------------------------------+---------+---+
|            |   | 12.08 Individual Water Supply/Sewage         | 12-14   |   |
|            |   | Disposal                                     |         |   |
|            |   |                                              |         |   |
|            |   | Requirements                                 |         |   |
+------------+---+----------------------------------------------+---------+---+
|            |   | 12.09 Community Water Supply/Sewage Disposal | 12-16   |   |
|            |   |                                              |         |   |
|            |   | Requirements                                 |         |   |
+------------+---+----------------------------------------------+---------+---+
|            |   | 12.10 Manufactured Homes Classified as Real  | 12-20   |   |
|            |   | Estate                                       |         |   |
+------------+---+----------------------------------------------+---------+---+

January 1, 2001 12-2

*Chapter 12- Minimum Property Requirements VA Pamphlet 26-7, Revised*

*Change 3*

#### 12.01 MPR Variations and Exemptions

+------------+---------------------------------------------------------+
| #####      | > VA may agree to modify the MPRs where justified by    |
| Variations | > certain conditions common to a particular geographic  |
|            | > area or occurring on the site, or where such          |
|            | > conditions make compliance impractical or impossible. |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > An MPR for existing construction can be waived by the |
| Exemptions | > VA field office if                                    |
|            |                                                         |
|            | -   a veteran is under contract to purchase the         |
|            |     property, and                                       |
|            |                                                         |
|            | -   the veteran and lender request the exemption in     |
|            |     writing, and                                        |
|            |                                                         |
|            | -   the property is habitable from the standpoint of    |
|            |     safety, structural soundness and sanitation, and    |
|            |                                                         |
|            | -   VA is satisfied that the nonconformity has been     |
|            |     fully taken into account by way of depreciation in  |
|            |     the VA valuation.                                   |
+------------+---------------------------------------------------------+

July 14, 2003 12-3

*Chapter 12- Minimum Property Requirements VA Pamphlet 26-7, Revised*

*Change 3*

#### 12.02 Proposed Construction MPRs

+------------+---------------------------------------------------------+
| ##### Whe  | > If the property is located in a jurisdiction which    |
| re a Build | > enforces a State, county or local building code, then |
| ing Code i | > VA MPRs require that the construction comply with     |
| s Enforced |                                                         |
|            | -   the applicable State, county or local building code |
|            |                                                         |
|            | -   24 Code of Federal Regulations (CFR) 200.926d,      |
|            |     *Construction Requirements*                         |
|            |                                                         |
|            | -   1992 Council of American Building Officials (CABO)  |
|            |     *Model Energy Code (MEC),* and                      |
|            |                                                         |
|            | -   HUD references below.                               |
|            |                                                         |
|            | > **\[[CFR 200.926d]{.underline}\]**                    |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | If the property is located in a jurisdiction which      |
|  Where a B | **does** **not** enforce a State, county or local       |
| uilding Co | building code, then VA MPRs require that the            |
| de is *Not | construction comply with                                |
| * Enforced |                                                         |
|            | -   applicable provisions of the current *CABO          |
|            |     International One and Two Family Dwelling Code*,    |
|            |     and any mandatory codes or standards incorporated   |
|            |     by reference                                        |
|            |                                                         |
|            | -   24 CFR 200.926d, *Construction Requirements*        |
|            |                                                         |
|            | -   24 CFR 200.926e, *Supplemental Information for Use  |
|            |     with CABO One and Two Family Dwelling Code*         |
|            |                                                         |
|            | -   1992 CABO *Model Energy Code* *(MEC)*, and          |
|            |                                                         |
|            | -   HUD references below.                               |
|            |                                                         |
|            | > **\[[24 CFR 200.926d]{.underline}\]**                 |
|            | >                                                       |
|            | > **\[[24 CFR 200.926e]{.underline}\]**                 |
+------------+---------------------------------------------------------+

Continued on next page

July 14, 2003 12-4

**VA Pamphlet 26-7, Revised Chapter 12: Minimum Property Requirements**

12.02 Proposed Construction MPRs, Continued

+------------+---------------------------------------------------------+
| ##### HUD  | > The following references from the Department of       |
| References | > Housing and Urban Development (HUD) are also included |
|            | > in VA MPRs, as applicable:                            |
|            |                                                         |
|            | -   HUD engineering bulletins and materials releases    |
|            |     that address, the use of new or unconventional      |
|            |     construction methods. or materials that have been   |
|            |     reviewed and considered suitable from a technical   |
|            |     standpoint by HUD, and                              |
|            |                                                         |
|            | -   standards and practices recommended in HUD          |
|            |     Handbooks                                           |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   [Handbook 4140.1]{.underline}*, Land Planning       |
|            |     Principles for Home Mortgage Insurance*             |
|            |                                                         |
|            | -   [Handbook 4140.2]{.underline}*, Land Planning       |
|            |     Procedures and Data for Insurance for Home Mortgage |
|            |     Programs*, and                                      |
|            |                                                         |
|            | -   [Handbook 4140.3]{.underline}, *Land Planning Data  |
|            |     Sheet Handbook*.                                    |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### Usi  | > When Using HUD Publications for VA Purposes           |
| ng HUD Pub |                                                         |
| lications  | -   read all references to "HUD" and "HUD field office" |
|            |     as "VA" and "VA field station"                      |
|            |                                                         |
|            | -   construe "insured mortgage" to mean "VA-guaranteed  |
|            |     mortgage," and                                      |
|            |                                                         |
|            | -   remember that, **for MPR purposes**, VA treats      |
|            |     properties with up to four living units the same as |
|            |     properties with only one living unit.               |
+------------+---------------------------------------------------------+

#### 

#### 

#### 

#### 

#### 

**January 1, 2001 12-5**

**VA Pamphlet 26-7, Revised Chapter 12: Minimum Property Requirements**

#### 12.03 Basic MPRs

+------------+---------------------------------------------------------+
| ##         | > The property must be a single, readily marketable     |
| ### Entity | > real estate entity.                                   |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | Any nonresidential use of the property must be          |
| # Nonresid | subordinate to its residential use and character.       |
| ential Use |                                                         |
|            | If any portion of a property is designed or used for    |
|            | nonresidential purposes, that property is eligible only |
|            | if the nonresidential use does not                      |
|            |                                                         |
|            | -   impair the residential character of the property,   |
|            |     or                                                  |
|            |                                                         |
|            | -   exceed 25 percent of the total floor area.          |
|            |                                                         |
|            | -                                                       |
|            |                                                         |
|            | -   ***Note***: In making this calculation, the total   |
|            |     nonresidential area must include storage areas or   |
|            |     similar spaces that are integral parts of the       |
|            |     nonresidential portion.                             |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > Each living unit must have the space necessary to     |
| # Space Re | > assure suitable                                       |
| quirements |                                                         |
|            | -   living                                              |
|            |                                                         |
|            | -   sleeping                                            |
|            |                                                         |
|            | -   cooking and dining accommodations, and              |
|            |                                                         |
|            | -   sanitary facilities.                                |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > Mechanical systems must                               |
| # Mechanic |                                                         |
| al Systems | -   be safe to operate                                  |
|            |                                                         |
|            | -   be protected from destructive elements              |
|            |                                                         |
|            | -   have reasonable future utility, durability and      |
|            |     economy, and                                        |
|            |                                                         |
|            | -   have adequate capacity and quality.                 |
+------------+---------------------------------------------------------+

Continued on next page

**January 1, 2001 12-6**

*Chapter 12- Minimum Property Requirements VA Pamphlet 26-7, Revised*

*Change 3*

12.03 Basic MPRs, Continued

+------------+---------------------------------------------------------+
| ###        | > Heating must be adequate for healthful and            |
| ## Heating | > comfortable living conditions.                        |
|            | >                                                       |
|            | > If the property has an **unvented space heater**, see |
|            | > the requirements in Section 11.12.                    |
|            | >                                                       |
|            | > Homes with a **wood burning stove** as a primary      |
|            | > heating source must also have a permanently installed |
|            | > conventional heating system that maintains a          |
|            | > temperature of at least 50 degrees Fahrenheit in      |
|            | > areas with plumbing.                                  |
|            | >                                                       |
|            | > **Solar systems** for domestic water heating and/or   |
|            | > space heating must:                                   |
|            |                                                         |
|            | -   meet standards in [HUD Handbook                     |
|            |     4930.2]{.underline}, Solar Heating and Domestic Hot |
|            |     Water Heating Systems, and                          |
|            |                                                         |
|            | -   be backed-up 100 percent with a conventional        |
|            |     thermal energy subsystem or other backup system     |
|            |     which will provide the same degree of reliability   |
|            |     and performance as a conventional system.           |
|            |                                                         |
|            | -                                                       |
|            |                                                         |
|            | -   ***Note***: VA field stations may determine that    |
|            |     climatic conditions are such that mechanical        |
|            |     heating is not required.                            |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > Each unit must have the following:                    |
| ### Water  |                                                         |
| Supply and | -   domestic hot water                                  |
|  Sanitary  |                                                         |
| Facilities | -   a continuing supply of safe and potable water for   |
|            |     drinking and other household uses, and              |
|            |                                                         |
|            | -   sanitary facilities and a safe method of sewage     |
|            |     disposal.                                           |
|            |                                                         |
|            | > ***Reference***: For requirements regarding           |
|            | > **individual** water supplies and individual sewage   |
|            | > disposal systems, see Section 12.08.                  |
+------------+---------------------------------------------------------+

Continued on next page

July 14, 2003 12-7

*Chapter 12- Minimum Property Requirements VA Pamphlet 26-7, Revised*

*Change 3*

12.03 Basic MPRs, Continued

+------------+---------------------------------------------------------+
| ##### Roo  | > The roof covering must                                |
| f Covering |                                                         |
|            | -   prevent entrance of moisture, and                   |
|            |                                                         |
|            | -   provide reasonable future utility, durability, and  |
|            |     economy of maintenance.                             |
|            |                                                         |
|            | > When a defective roof with three or more layers of    |
|            | > shingles must be replaced, all old shingles must      |
|            | > first be removed.                                     |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| **Crawl    | > The crawl space must                                  |
| Space**    |                                                         |
|            | -   have adequate access                                |
|            |                                                         |
|            | -   be clear of all debris, and                         |
|            |                                                         |
|            | -   be properly vented.                                 |
|            |                                                         |
|            | > The floor joists must be sufficiently above the       |
|            | > highest level of the ground to provide access for     |
|            | > maintenance and repair of ductwork and plumbing.      |
|            | >                                                       |
|            | > Any **excessive dampness or ponding of water** in the |
|            | > crawl space must be corrected.                        |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| **Ven      | > Natural ventilation of structural spaces such as      |
| tilation** | > attics and crawl spaces must be provided to reduce    |
|            | > the effect of excess heat and moisture which could    |
|            | > cause decay and deterioration of the structure.       |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### E    | > Each unit must have electricity for lighting and for  |
| lectricity | > necessary equipment.                                  |
+------------+---------------------------------------------------------+

July 14, 2003 12-8

*Chapter 12- Minimum Property Requirements VA Pamphlet 26-7, Revised*

#### 12.04 Shared Facilities and Utilities

+------------+---------------------------------------------------------+
| #####      | > Facilities such as laundry and storage space or       |
| Facilities | > heating may be shared in two-to-four living unit      |
|            | > buildings under a single mortgage.                    |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Utility services must be independent for each living  |
| Utilities  | > unit, except                                          |
|            |                                                         |
|            | -   living units under a single mortgage or ownership   |
|            |     may share water, sewer, gas, or electricity as long |
|            |     as there are separate service shut-offs for each    |
|            |     unit, and                                           |
|            |                                                         |
|            | -   living units under separate ownership may share     |
|            |     connections from the main to the building line when |
|            |     those connections are protected by                  |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   easement or covenant, and                           |
|            |                                                         |
|            | -   a maintenance agreement acceptable to VA.           |
|            |                                                         |
|            | > Individual utilities serving one living unit shall    |
|            | > not pass over, under, or through another living unit  |
|            | > unless there is a legal provision for permanent right |
|            | > of access for maintenance and repair of the utilities |
|            | > without trespass on adjoining properties.             |
+------------+---------------------------------------------------------+

January 1, 2001 12-9

*Chapter 12- Minimum Property Requirements VA Pamphlet 26-7, Revised*

#### 12.05 Access-Related Issues 

+------------+---------------------------------------------------------+
| #####      | > Each property must be provided with a safe and        |
|  Access to | > adequate pedestrian or vehicular access from a public |
|  Property  | > or private street.                                    |
|            | >                                                       |
|            | > Private streets must be                               |
|            |                                                         |
|            | -   protected by a permanent easement, and              |
|            |                                                         |
|            | -   maintained by a homeowners association or joint     |
|            |     maintenance agreement.                              |
|            |                                                         |
|            | > All streets must have an all-weather surface.         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### A    | > Access to the living unit must be provided without    |
| ccess to L | > passing through any other living unit.                |
| iving Unit | >                                                       |
|            | > Each living unit must be able to be used and          |
|            | > maintained individually without trespass upon         |
|            | > adjoining properties. Any easements required must run |
|            | > with the land.                                        |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Access to the rear yard must be provided without      |
|  Access to | > passing through any other living unit.                |
|  Rear Yard | >                                                       |
|            | > For a row-type dwelling, the access may be by means   |
|            | > of                                                    |
|            |                                                         |
|            | -   alley                                               |
|            |                                                         |
|            | -   easement                                            |
|            |                                                         |
|            | -   passage through the subject dwelling, or            |
|            |                                                         |
|            | -   other acceptable means.                             |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ###        | > There must be adequate space between buildings to     |
| ## Access  | > permit maintenance of the exterior walls.             |
| for Exteri |                                                         |
| or Wall Ma |                                                         |
| intenance  |                                                         |
+------------+---------------------------------------------------------+

January 1, 2001 12-10

*Chapter 12- Minimum Property Requirements VA Pamphlet 26-7, Revised*

#### 12.06 Hazards and Defective Conditions

+------------+---------------------------------------------------------+
| *          | > The property must be free of hazards which may        |
| *Hazards** |                                                         |
|            | -   adversely affect the health and safety of the       |
|            |     occupants                                           |
|            |                                                         |
|            | -   adversely affect the structural soundness of the    |
|            |     dwelling and other improvements to the property, or |
|            |                                                         |
|            | -   impair the customary use and enjoyment of the       |
|            |     property by the occupants.                          |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| *          | > Conditions which impair the safety, sanitation, or    |
| *Defective | > structural soundness of the dwelling will cause the   |
| Co         | > property to be **unacceptable** until the defects or  |
| nditions** | > conditions have been remedied and the probability of  |
|            | > further damage eliminated. Such conditions include    |
|            | > but are not limited to                                |
|            |                                                         |
|            | -   defective construction                              |
|            |                                                         |
|            | -   poor workmanship                                    |
|            |                                                         |
|            | -   evidence of continuing settlement                   |
|            |                                                         |
|            | -   excessive dampness                                  |
|            |                                                         |
|            | -   leakage                                             |
|            |                                                         |
|            | -   decay, and                                          |
|            |                                                         |
|            | -   termites.                                           |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| **         | > The site must be graded so that it                    |
| Drainage** |                                                         |
|            | -   provides positive, rapid drainage away from the     |
|            |     perimeter walls of the dwelling, and                |
|            |                                                         |
|            | -   prevents ponding of water on the site.              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| **Wood     | > Appraisers must look for and report evidence of wood  |
| Destroying | > destroying insect infestation, fungus growth, and dry |
| Insects/   | > rot in addition to any VA requirement for an          |
| Fungus/Dry | > inspection of the property by a wood destroying       |
| Rot**      | > insect inspector.                                     |
+------------+---------------------------------------------------------+

Continued on next page

January 1, 2001 12-11

*Chapter 12- Minimum Property Requirements VA Pamphlet 26-7, Revised*

12.06 Hazards and Defective Conditions, Continued

+------------+---------------------------------------------------------+
| **         | > Lead-based paint constitutes an immediate hazard that |
| Lead-Based | > must be corrected, unless testing shows that lead is  |
| Paint**    | > not present in the paint at a level above that        |
|            | > permitted by law.                                     |
|            | >                                                       |
|            | > Appraisers must                                       |
|            |                                                         |
|            | -   assume that a defective paint condition (involving  |
|            |     cracking, scaling, chipping, peeling, or loose      |
|            |     paint) on any interior or exterior surface of       |
|            |     properties built prior to 1978 involves lead-based  |
|            |     paint                                               |
|            |                                                         |
|            | -   clearly identify the location of such conditions,   |
|            |     and                                                 |
|            |                                                         |
|            | -   recommend correction.                               |
|            |                                                         |
|            | > Any defective paint condition identified must receive |
|            | > adequate treatment to prevent the ingestion of        |
|            | > contaminated paint. Either                            |
|            |                                                         |
|            | -   the surface requiring treatment must be thoroughly  |
|            |     washed, scraped, wirebrushed or otherwise cleaned   |
|            |     to remove all cracking, scaling, peeling, chipping  |
|            |     and loose paint and then repainted with two coats   |
|            |     of a suitable nonleaded paint, or                   |
|            |                                                         |
|            | -   the paint shall be completely removed or the        |
|            |     surface covered with a suitable material such as    |
|            |     gypsum wallboard, plywood or plaster before any     |
|            |     painting is undertaken if the paint film integrity  |
|            |     of the surface needing treatment cannot be          |
|            |     maintained.                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| **Party    | > A building constructed to a property line must be     |
| Walls**    | > separated from the adjoining building by a wall       |
|            | > extending the full height of the building from the    |
|            | > foundation to the roof ridge. The wall may separate   |
|            | > row type townhouses or semi-detached units.           |
+------------+---------------------------------------------------------+

January 1, 2001 12-12

*Chapter 12- Minimum Property Requirements VA Pamphlet 26-7, Revised*

#### 12.07 Fuel Pipelines and High Voltage Electric Lines

+------------+---------------------------------------------------------+
| ###        | > No part of any residential structure may be located   |
| ## Gas and | > within a high pressure gas or liquid petroleum        |
|  Petroleum | > pipeline easement.                                    |
|  Pipelines | >                                                       |
|            | > Any detached improvements even partially in the       |
|            | > pipeline easement will not receive value for VA       |
|            | > purposes.                                             |
|            | >                                                       |
|            | > If a proposed residential structure will be located   |
|            | > outside the pipeline easement, but within an area     |
|            | > that extends 220 yards on either side of the          |
|            | > centerline of the pipeline itself, the VA notice of   |
|            | > value will be conditioned for the following, as       |
|            | > applicable:                                           |
|            |                                                         |
|            | -   High Pressure Gas Pipelines -- A statement from an  |
|            |     authorized official of the pipeline company         |
|            |     certifying compliance with 49 CFR 192.607, 192.609, |
|            |     192.611 and 192.613.                                |
|            |                                                         |
|            | -   Liquid Petroleum Pipelines -- A statement from an   |
|            |     authorized official of the pipeline company         |
|            |     certifying compliance with 49 CFR 195 and           |
|            |     amendments thereto.                                 |
|            |                                                         |
|            | > **\[[49 CFR 192.607]{.underline}, [192.609,           |
|            | > 192.611]{.underline} and [192.613]{.underline}\]**    |
|            | >                                                       |
|            | > **\[[49 CFR 195]{.underline}\]**                      |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| **High     | > No part of any residential structure may be located   |
| Voltage    | > within a high voltage electric transmission line      |
| Electric   | > easement.                                             |
| Tr         | >                                                       |
| ansmission | > Any detached improvements even partially in a         |
| Lines**    | > transmission line easement will not receive value for |
|            | > VA purposes.                                          |
+------------+---------------------------------------------------------+

January 1, 2001 12-13

*Chapter 12- Minimum Property Requirements VA Pamphlet 26-7, Revised*

#### 12.08 Individual Water Supply/Sewage Disposal Requirements

+------------+---------------------------------------------------------+
| ###        | > Connection to a public or community water/sewage      |
| ## Connect | > disposal system is required whenever feasible.        |
| ion to Pub |                                                         |
| lic System |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### Wate | > Water quality for an individual water supply must     |
| r Quality  | > meet the requirements of the health authority having  |
|            | > jurisdiction. If the local authority does not have    |
|            | > specific requirements, the maximum contaminant levels |
|            | > established by the Environmental Protection Agency    |
|            | > (EPA) will apply.                                     |
|            | >                                                       |
|            | > If the health authority is unable to perform the      |
|            | > water quality analysis in a timely manner, a          |
|            | > commercial testing laboratory or a licensed sanitary  |
|            | > engineer acceptable to the health authority may take  |
|            | > and test the water sample.                            |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### Wat  | > Water treatment systems are not acceptable for wells  |
| er Treatme | > which do not meet VA quality standards due to         |
| nt Systems | > insufficient depth or a contamination source near the |
|            | > supply.                                               |
|            | >                                                       |
|            | > However, if public water is not available and         |
|            | > individual water supplies in the area are served by   |
|            | > an aquifer confirmed by the health department to be   |
|            | > contaminated, the property is eligible for a VA loan  |
|            | > if the lender provides                                |
|            |                                                         |
|            | -   a copy of the health department letter confirming   |
|            |     the aquifer contamination                           |
|            |                                                         |
|            | -   evidence that all of the requirements in HUD        |
|            |     Mortgagee Letters 92-18 and 95-34*,* concerning     |
|            |     individual water purification systems, have been    |
|            |     met for the property, and                           |
|            |                                                         |
|            | -   the veteran purchaser\'s written acknowledgment     |
|            |     that he/she understands that the well water serving |
|            |     the property must be continuously treated by the    |
|            |     homeowner, as required by the local health          |
|            |     department, to be considered safe for human         |
|            |     consumption.                                        |
+------------+---------------------------------------------------------+

Continued on next page

January 1, 2001 12-14

*Chapter 12- Minimum Property Requirements VA Pamphlet 26-7, Revised*

*Change 3*

12.08 Individual Water Supply/Sewage Disposal Requirements, Continued

+------------+---------------------------------------------------------+
| ##### Sh   | > The following requirements must be met for a shared   |
| ared Wells | > well:                                                 |
|            |                                                         |
|            | -   The well must be capable of providing a continuing  |
|            |     supply of safe and potable water to each property   |
|            |     simultaneously, so that each dwelling will be       |
|            |     assured a sufficient quantity for all domestic      |
|            |     purposes.                                           |
|            |                                                         |
|            | -   There must be a permanent easement which allows     |
|            |     access for maintenance and repair.                  |
|            |                                                         |
|            | -   There must be a well-sharing agreement which        |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   makes reasonable and fair provisions for            |
|            |     maintenance and repair of the system and the        |
|            |     sharing of those costs                              |
|            |                                                         |
|            | -   is binding on the signatory parties and their       |
|            |     successors in title, and                            |
|            |                                                         |
|            | -   is recorded in local deed records.                  |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Springs or cisterns are permitted where such          |
|  Springs o | > facilities are customary and the only feasible means  |
| r Cisterns | > of water supply, provided they are installed in       |
|            | > accordance with the recommendations of the local      |
|            | > health authority, and the veteran purchaser           |
|            | > acknowledges in writing his/her awareness of the      |
|            | > situation.                                            |
|            | >                                                       |
|            | > If the local health authority has no requirements,    |
|            | > U.S. Public Health Service requirements apply.        |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### Se   | > An individual sewage disposal system must adequately  |
| wage Dispo | > dispose of all domestic wastes in a manner which will |
| sal System | > not create a nuisance, or in any way endanger the     |
|            | > public health.                                        |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### P    | > Individual pit privies are permitted where such       |
| it Privies | > facilities are customary and are the only feasible    |
|            | > means of waste disposal, provided they are installed  |
|            | > in accordance with the recommendations of the local   |
|            | > health authority.                                     |
|            | >                                                       |
|            | > If the local health authority has no requirements,    |
|            | > U.S. Public Health Service requirements apply.        |
+------------+---------------------------------------------------------+

July 14, 2003 12-15

*Chapter 12- Minimum Property Requirements VA Pamphlet 26-7, Revised*

*Change 3*

#### 12.09 Community Water Supply/Sewage Disposal Requirements

+------------+---------------------------------------------------------+
| ###        | > If the property will be served by a community water   |
| ## Basic R | > and/or sewage disposal system, VA must be satisfied   |
| equirement | > that the type of system and organization will provide |
|            | > adequate, continuous service at reasonable rates.     |
|            | >                                                       |
|            | > The **water supply** must be sufficient in size for   |
|            | > the project. The quality of the water must be         |
|            | > approved by the local or State health officials.      |
|            | >                                                       |
|            | > The **sewage system** must also be adequate in size   |
|            | > and properly operated and maintained so as to prevent |
|            | > it from becoming obnoxious or a menace to public      |
|            | > health.                                               |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### Do   | > For properties appraised as existing or new           |
| cumentatio | > construction, the only requirement is evidence of     |
| n Required | > approval of the facilities by the appropriate State   |
|            | > or local public utility and health authorities.       |
|            | >                                                       |
|            | > For properties appraised as proposed or under         |
|            | > construction, the VA field station will review the    |
|            | > following documentation:                              |
|            |                                                         |
|            | -   evidence of the financial stability and technical   |
|            |     experience of the corporation, firm or organization |
|            |     operating the facilities                            |
|            |                                                         |
|            | -   evidence of approval of the facilities by the       |
|            |     appropriate State or local public utility and       |
|            |     health authorities, and                             |
|            |                                                         |
|            | -   rates for the water supply and/or sewage disposal   |
|            |     systems (to ensure that they are not greater than   |
|            |     the charges for like services to properties         |
|            |     similarly situated).                                |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > The trust deed will be designed and established to    |
|  When a Tr | > ensure satisfactory control and adequate protective   |
| ust Deed i | > measures if the State Board of Health, Public Utility |
| s Required | > Commission, or similar State authority **does not**   |
|            |                                                         |
|            | -   enforce compliance with its requirements            |
|            |                                                         |
|            | -   fix rates, or                                       |
|            |                                                         |
|            | -   provide for prompt relief in case of deficient      |
|            |     operations or service or exorbitant rates.          |
+------------+---------------------------------------------------------+

Continued on next page

July 14, 2003 12-16

VA Pamphlet 26-7, Revised Chapter 12-Minimum Property Requirements

12.09 Community Water Supply/Sewage Disposal Requirements, Continued

+------------+---------------------------------------------------------+
| ##         | > The forms of trust deed for privately owned community |
| ### Trust  | > systems (illustrated in [HUD Handbook                 |
| Deed Forms | > 4075.12]{.underline}) must generally be used without  |
|            | > modification. Those HUD forms do not apply to systems |
|            | > owned and operated by an acceptable home owners\'     |
|            | > association.                                          |
|            | >                                                       |
|            | > Trust deeds will not be supplied as VA forms.         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ###        | > The VA field station will accept the trust deed if    |
| ## Accepta |                                                         |
| bility of  | -   the trustee is a responsible firm                   |
| Trust Deed |                                                         |
|            | -   the description of the property in the trust deed   |
|            |     is accurate and complete, and                       |
|            |                                                         |
|            | -   the charges set forth and the trustee\'s fee        |
|            |     (normally about 5 percent and in no event in excess |
|            |     of 10 percent of gross receipts) are reasonable.    |
|            |                                                         |
|            | > The trustee will preferably be a VA or HUD-approved   |
|            | > lender, but may be any responsible, established firm  |
|            | > (such as a title company) in the community. In the    |
|            | > latter case, there must be no identity-of-interest    |
|            | > between the sponsoring group and the trustee.         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > If the builder recoups system installation costs via  |
| #### Build | > sale of lots and the VA value estimate is predicated  |
| er Costs I | > on the inclusion of such cost in the value of the     |
| ncluded in | > lots, the service rate must not permit the builder to |
|  Valuation | > realize the installation costs a second time.         |
+------------+---------------------------------------------------------+

Continued on next page

January 1, 2001 12-17

VA Pamphlet 26-7, Revised Chapter 12-Minimum Property Requirements

12.09 Community Water Supply/Sewage Disposal Requirements, Continued

+------------+---------------------------------------------------------+
| #          | > When the VA value estimate considers the system       |
| #### Syste | > installation costs to be paid in full by the builder, |
| m Transfer | > then additional controls are needed to protect        |
|            | > against possible future excessive rates or assessment |
|            | > charges which may result if the system is transferred |
|            | > to a public utility company.                          |
|            | >                                                       |
|            | > The trust deed must provide that transfers            |
|            |                                                         |
|            | -   may be made only to a governmental authority or     |
|            |     public utility company controlled by a State        |
|            |     utility commission or similar body, and             |
|            |                                                         |
|            | -   any funds gained from such transfer shall be        |
|            |     distributed among property owners served by the     |
|            |     system.                                             |
|            |                                                         |
|            | > This protection will be obtained by insertion of an   |
|            | > alternate paragraph 1 in the trust deed.              |
|            | >                                                       |
|            | > ***Reference***: See [HUD Handbook                    |
|            | > 4075.12]{.underline}, Appendix A, page 11, or         |
|            | > Appendix B, page 11, as applicable.                   |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > Any lack of assurance of satisfactory service, at     |
| #### Lower | > reasonable rates, without the possibility of a future |
|  Valuation | > charge to pay for the utility systems would be        |
|            | > reflected in a lower reasonable value.                |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > If trust deed amendments are proposed or the above    |
| #### Field | > conditions are not satisfied, the situation must be   |
|  Station R | > reviewed by the VA field station legal staff prior to |
| eview for  | > acceptance. In this situation, the field station may  |
| Problems o | > also need to coordinate with the local HUD office.    |
| r Changes  |                                                         |
+------------+---------------------------------------------------------+

Continued on next page

January 1, 2001 12-18

VA Pamphlet 26-7, Revised Chapter 12-Minimum Property Requirements

12.09 Community Water Supply/Sewage Disposal Requirements, Continued

+------------+---------------------------------------------------------+
| ##### HUD  | > HUD Handbook references for community water and       |
|  Handbook  | > sewerage systems requirements include                 |
| References |                                                         |
|            | -   [4940.02]{.underline}, *Minimum Design Standards    |
|            |     for Community Water Supply Systems*                 |
|            |                                                         |
|            | -   [4940.03]{.underline}, *Minimum Design Standards    |
|            |     for Community Sewerage Systems*, and                |
|            |                                                         |
|            | -   [4075.12]{.underline}, *Central Water and Sewerage  |
|            |     Systems-Ownership and Organization*.                |
+------------+---------------------------------------------------------+

January 1, 2001 12-19

VA Pamphlet 26-7, Revised Chapter 12-Minimum Property Requirements

#### 12.10 Manufactured Homes Classified as Real Estate

+------------+---------------------------------------------------------+
| ##### E    | > When the foundation for a manufactured home has been  |
| xisting Co | > fully completed and the manufactured home unit has    |
| nstruction | > been installed, the home is considered to be          |
|            | > "existing construction."                              |
|            | >                                                       |
|            | > There are two MPR-related requirements for these      |
|            | > existing construction cases:                          |
|            |                                                         |
|            | -   The site, manufactured home unit, and other on-site |
|            |     improvements must meet VA MPRs for existing         |
|            |     construction described in this Chapter.             |
|            |                                                         |
|            | -   The manufactured home unit must be properly         |
|            |     attached to a permanent foundation system which is  |
|            |     constructed to withstand both supporting loads and  |
|            |     wind-overturning loads, and is acceptable to the    |
|            |     building authority having jurisdiction.             |
|            |                                                         |
|            | > ***Note***: If the fee appraiser has reasonable       |
|            | > doubts as to the acceptability of the foundation      |
|            | > system where there are no local requirements, a       |
|            | > statement from a registered professional engineer is  |
|            | > acceptable. Considering their cost, such statements   |
|            | > should be required only when necessary and not just   |
|            | > as a measure of liability protection for fee          |
|            | > appraisers.                                           |
+------------+---------------------------------------------------------+

Continued on next page

January 1, 2001 12-20

*Chapter 12- Minimum Property Requirements VA Pamphlet 26-7, Revised*

*Change 3*

12.10 Manufactured Homes Classified as Real Estate, Continued

+------------+---------------------------------------------------------+
| #####      | > When the foundation for a manufactured home has       |
| Proposed o | > **not** been fully completed and the unit has not     |
| r Under Co | > been installed, the home is considered to be          |
| nstruction | > "proposed or under construction."                     |
|            | >                                                       |
|            | > There are two MPR-related requirements for these      |
|            | > proposed or under construction cases:                 |
|            |                                                         |
|            | -   The site and on-site improvements (but not the      |
|            |     manufactured unit itself) must meet the             |
|            |     requirements outlined in Section 12.02.             |
|            |                                                         |
|            | -   The manufactured home unit must be properly         |
|            |     attached to a permanent foundation system which is  |
|            |     constructed to withstand both supporting loads and  |
|            |     wind-overturning loads, and is acceptable to the    |
|            |     building authority having jurisdiction.             |
|            |                                                         |
|            | -                                                       |
|            |                                                         |
|            | -   ***References***: In addition to *Proposed          |
|            |     Construction MPRs* in this chapter, additional      |
|            |     information regarding manufactured home             |
|            |     installations can be found in                       |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   the manufacturer\'s installation instructions (used |
|            |     to determine the permissible points of support for  |
|            |     vertical loads and points of attachment for the     |
|            |     anchorage system used to resist horizontal and      |
|            |     uplift forces), and                                 |
|            |                                                         |
|            | -   the *Appendix* section of the *CABO One and Two     |
|            |     Family Dwelling Code*.                              |
+------------+---------------------------------------------------------+

Continued on next page

July 14, 2003 12-21

*Chapter 12- Minimum Property Requirements VA Pamphlet 26-7, Revised*

*Change 3*

12.10 Manufactured Homes Classified as Real Estate, Continued

+------------+---------------------------------------------------------+
| ##### Fou  | > The following table lists each foundation component   |
| ndation Re | > and any related requirements for "proposed or under   |
| quirements | > construction" cases.                                  |
+------------+---------------------------------------------------------+

+----------------+-----------------------------------------------------+
| Foundation     | Requirement                                         |
| Component      |                                                     |
+----------------+-----------------------------------------------------+
| ##### Pier     | > The load-bearing piers and footings must          |
| s and Footings |                                                     |
|                | -   be of sufficient size and number to distribute  |
|                |     the weight of the manufactured home evenly      |
|                |                                                     |
|                | -   be of materials acceptable to the building      |
|                |     authority having jurisdiction, and              |
|                |                                                     |
|                | -   (where applicable) have footings which extend   |
|                |     below the frost line.                           |
+----------------+-----------------------------------------------------+
| #              | -   Concrete slabs or continuous footings are       |
| #### Concrete  |     acceptable in areas where their use is          |
| Slabs or Conti |     permitted by local building authorities. Steel  |
| nuous Footings |     anchorage devices must be cast into the         |
|                |     concrete slab or footing and be capable of      |
|                |     providing holding strength to resist horizontal |
|                |     and uplift forces.                              |
+----------------+-----------------------------------------------------+
| ##### Anc      | > Anchoring devices, adequate to resist all loads,  |
| horing Devices | > must                                              |
|                |                                                     |
|                | -   be attached to the main frame of the unit by a  |
|                |     bolted, welded, or mechanical connector         |
|                |                                                     |
|                | -   be placed at every supporting pier or as        |
|                |     specified by the manufacturer, and              |
|                |                                                     |
|                | -   extend into the pier footing.                   |
|                |                                                     |
|                | > Anchoring straps or cables affixed to ground      |
|                | > anchors, other than pier footings, **will**       |
|                | > **not** meet this requirement **unless**          |
|                | > specifically allowed by the building authority of |
|                | > jurisdiction.                                     |
+----------------+-----------------------------------------------------+
| #####          | > Properties located in Wind Zone II or III (wind   |
| Hurricane Ties | > speeds in excess of 80 mph) must be provided with |
|                | > diagonal hurricane ties which have been properly  |
|                | > engineered for the location, and comply with the  |
|                | > requirements of the building authority having     |
|                | > jurisdiction.                                     |
|                | >                                                   |
|                | > ***Important***: The installation procedures      |
|                | > included in both the manufacturer\'s foundation   |
|                | > instructions and *NCS BCS Handbook A225.1* are    |
|                | > **not** generally adequate for manufactured homes |
|                | > in these areas.                                   |
+----------------+-----------------------------------------------------+

12-22 July 14, 2003

VA Pamphlet 26-7, Revised Chapter 12-Minimum Property Requirements

12.10 Manufactured Homes Classified as Real Estate, Continued

  -----------------------------------------------------------------------
  Hurricane Ties (continued)

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

+----------------+-----------------------------------------------------+
| Foundation     | Requirement                                         |
| Component      |                                                     |
+----------------+-----------------------------------------------------+
| #####          | > Properties located in areas of high seismic       |
|  Flexible Conn | > activity require special foundation designs to    |
| ections for Se | > compensate for the effects of ground movement and |
| ismic Activity | > to provide flexible connections between the       |
|                | > foundation system and the manufactured home and   |
|                | > all utility connections.                          |
|                | >                                                   |
|                | > Building authorities in these areas should be     |
|                | > consulted for acceptable design features and      |
|                | > special code requirements.                        |
+----------------+-----------------------------------------------------+
| ##### P        | > A permanent perimeter enclosure (not "skirting")  |
| ermanent Perim | > with a continuous foundation-type footing will be |
| eter Enclosure | > required only when specifically required by the   |
|                | > local building authority. When required, it must  |
|                | > be                                                |
|                |                                                     |
|                | -   designed to resist all forces which cause frost |
|                |     heave, soil settlement, or the shrinking or     |
|                |     swelling of expansive soils without             |
|                |     transmitting the movement or effects to the     |
|                |     manufactured home, and                          |
|                |                                                     |
|                | -   properly secured to the perimeter of the        |
|                |     manufactured home to exclude entry of vermin    |
|                |     and water, and provide ventilation and a means  |
|                |     of access to the crawl space.                   |
+----------------+-----------------------------------------------------+
| ##### Moi      | > The reduction of moisture and humidity in an      |
| sture and Humi | > enclosed under floor space is required. Except in |
| dity Reduction | > arid regions with dry soil conditions, a          |
|                | > continuous moisture barrier that covers the       |
|                | > natural or excavated ground surface within the    |
|                | > perimeter enclosure of the home must be           |
|                | > installed.                                        |
|                | >                                                   |
|                | > Provisions should also be made to prevent water   |
|                | > from entering the crawl space and for the control |
|                | > and diversion of surface water away from the      |
|                | > manufactured home.                                |
+----------------+-----------------------------------------------------+

January 1, 2001 12-23

Acceptability of Trust Deed, 12-17

Access for Exterior Wall Maintenance, 12-10

Access to Living Unit, 12-10

Access to Property, 12-10

Access to Rear Yard, 12-10

Access-Related Issues, 12-10

Basic MPRs, 12-6

Basic MPRs Heating, 12-7

Basic Sewage Requirement, 12-16

Builder Costs, 12-17

Community Water Supply/Sewage Disposal Requirements, 12-16

Concrete Slabs or Continuous Footings, 12-22

Connection to PublicWater/Sewage System, 12-14

Crawl Space, 12-8

Defective Conditions, 12-11

Drainage, 12-11

Electricity, 12-8

Existing Construction - Manufactured Homes Classified, 12-20

Field Station Review for Problems or Changes, 12-18

Flexible Connections for Seismic Activity, 12-23

Foundation Requirements, 12-22

Fuel Pipelines and High Voltage Electric Lines, 12-13

Gas and Petroleum Pipelines, 12-13

Hazards, 12-11

Hazards and Defective Conditions, 12-11

High Voltage Electric Transmission Lines, 12-13

HUD Handbook References, 12-19

HUD References, 12-5

Hurricane Ties, 12-22

Individual Water Supply/Sewage Disposal Requirements, 12-14

Lead-Based Paint, 12-12

Manufactured Homes Classified as Real Estate, 12-20

Mechanical Systems for Basic MPRs, 12-6

Minimum Property Requirements, 12-1

Moisture and Humidity Reduction, 12-23

MPR Variations and Exemptions, 12-3

Nonresidential Use for Basic MPRs, 12-6

Party Walls, 12-12

Permanent Perimeter Enclosure, 12-23

Piers and Footings, 12-22

Pit Privies, 12-15

Proposed Construction MPRs, 12-4

Proposed or Under Construction - Manufactured Homes, 12-21

Purpose of MPRs, 12-1

Roof Covering, 12-8

Scope of MPRs, 12-1

Sewage Disposal System, 12-15

Shared Facilities and Utilities, 12-9

Shared Wells, 12-15

Space Requirements for Basic MPRs, 12-6

Specially Adapted Housing, 12-1

System Transfer, 12-18

Trust Deed, 12-18

Trust Deed Forms, 12-17

Using HUD Publications for VA Purposes, 12-5

Utilities, 12-9

VA Minimum Property Requirements (MPRs). *See* Minimum Property
Requirements

Valuation, 12-18

Ventilation, 12-8

Water Quality, 12-14

Water Supply and Sanitary Facilities for Basic MPRs, 12-7

Water Treatment Systems, 12-14

When a Trust Deed is Required, 12-16

Where a Building Code is Enforced, 12-4

Where a Building Code is *Not* Enforced, 12-4

Wood Destroying Insects/Fungus/Dry Rot, 12-11