U.S. Department of Housing and Urban Development

H O U S I N G

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Special Attention of: Notice H 91-91 (HUD)

All Regional Administrators-Regional Housing Commissioners

All Regional Directors of Housing Issued: 11/7/91

All Directors of Housing Management Expires: 11/7/92

All Field Office Managers
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All Chiefs, Property Disposition Branch Cross References:

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Subject: Lease and Sale of Acquired Single Family Properties for the

Homeless - Housing Responsibilities

BACKGROUND: This Notice cancels and supersedes NOTICE H 90-15, Lease and

Sale of Acquired Single Family Properties for the Homeless, dated March

1, 1990, and provides current and complete information on Housing\'s

responsibilities for the Single Family Property Disposition Homeless

Program. The Notice is based upon the Single Family Property Disposition

Homeless Initiative Final Rule, which was published in the Federal

Register on September 16, 1991. A copy of the regulation is attached.

HOUSING POLICY AND PROCEDURES:

A. Administration and Management: The Single Family Property

Disposition (PD) Homeless Initiative (Program) is a priority of the

Department. Community Planning and Development (CPD) is responsible

for administration, management and monitoring of the program except

as shown herein. CPD provides separate instruction and guidance for

their responsibilities under the Initiative.

Communication between applicants, lessees and HUD will generally be

the responsibility of CPD. Housing will provide technical

assistance to CPD in understanding Housing program procedures and

requirements and will promptly advise CPO of the failure of a lessee

to timely reimburse HUD for payment of property taxes, shortages in

the escrow account, problems with insurance coverage or contacts

with applicants and tenants. Housing is also responsible for

physical inspection of properties and will seek CPD assistance to

ensure access to occupied properties.

In offices where there are no CPD staff, the Program will be handled

by the nearest HUD office with CPD responsibility. However, it

should be fully understood that Regional Administrators and Office

Managers are responsible for cooperation, coordination and execution

of all aspects of the Homeless Initiative. The Matrix provided in

Attachment 1 will assist in delineating responsibilities under the

Program.

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HSIPO : Distribution : W-3-1, W-1, W-2(H)(A)(Z)(OGC), W-4(H)(OGC),

R-1, R-2, R-3, R-3-1(H)(RC), R-3-2, R-3-3,

R-6, R-6-1, R-6-2, R-7, R-7-1, R-7-2, R-8,

R-8-1

Previous Editions Are Obsolete HUD 21B(3-80)

GPO 871 902

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B. 10 Percent Limitation: All Regional offices will be limited

to leasing a maximum of 10 percent of their beginning of

year inventory of properties to homeless providers under the

Lease with Option to Purchase HUD Acquired Properties for

Use by the Homeless Program (Section I). The beginning of

year inventory is defined as the total inventory existing as

of October 1 of each fiscal year. Regional Offices may

reallocate the maximum number of properties to each Field

Office to meet individual needs in a particular locality as

long as the Regional total does not exceed the 10 percent

maximum. If a Regional Office needs to increase its

particular allocation of properties during a fiscal year,

the Regional Director of Housing must submit a request in

writing to the Director, Insured Single Family Housing at

Headquarters.

C. Leases and Master Agreement: The leases, Master Agreement

and sublease shown below have been revised to reflect new

provisions of the Final Rule. Beginning October, 1991, all

new leases, Master Agreements and subleases must be on these

forms:

1\. Lease with Option to Purchase HUD-Acquired Single

Family Properties for Use by the Homeless

(Attachment 2).

2\. Lease Option to Purchase Property by Supportive Housing

Demonstration Program Applicants

(Attachment 3).

3\. Master Agreement (Attachment 4).

4\. Model Sublease For Use by Lessors of HUD Acquired

Single Family Properties For Use By the Homeless

(Attachment 5).

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Assistant Secretary for Housing

\- Federal Housing Commissioner, H

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SUMMARY OF SIGNIFICANT CHANGES IN THE FINAL RULE:

Applicant Agreement: A preapproved applicant must agree in

writing, on a form prescribed by HUD, to abide by the provisions

of the Rule, in order to lease or purchase HUD-owned property.

(The Applicant Agreement is commonly known as a Master

Agreement).

Applicant approval: The Final Rule requires more thorough

applicant data before an applicant is approved by HUD for

participation in the program.

Definitions: Please refer to the definitions shown in the Final

Rule. However, because of its significance to the program, the

definition of homelessness has been clarified and is repeated

below. Please note that persons facing eviction on the basis of

criminal conduct such as drug trafficking and handgun violations

shall not be considered eligible for this program.

Homeless means:

\(1\) Individuals or families who lack the resources to

obtain housing, whose annual income is not in excess of

50 percent of the median income for the area, as

determined by HUD, and who:

\(i\) Have a primary nighttime residency that is a public or

private place not designed for, or ordinarily used as,

a regular sleeping accommodation for human beings;

\(ii\) Have a primary nighttime residence that is a supervised

publicly or privately operated shelter designed to

provide temporary living accommodations (including

welfare hotels, congregate shelters, and transitional

housing, but excluding prisons or other detention

facilities); or

(iii)Are at imminent risk of homelessness because they face

immediate eviction and have been unable to identify a

subsequent residence, which would result in emergency

shelter placement (except that persons facing eviction

on the basis of criminal conduct such as drug

trafficking and violations of handgun prohibitions

shall not be considered homeless for purposes of this

definition); or

\(2\) Handicapped persons who are about to be released from

an institution and are at risk of imminent homelessness

because no subsequent residences have been identified

and because they lack the resources and support

networks necessary to obtain access to housing.

Eligible properties: All eligible properties, whether offered

for direct sale or lease, will now be offered to approved

applicants for a ten-day period before being offered for sale to

the general public.

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Insurance: Requires lessee to maintain general liability

insurance against loss by reason of death or injury to any person

or loss or damage to the property of any person resulting from

the use of the property. Insurance is to be maintained for the

duration of the lease, and proof of insurance is to be provided

to HUD at the time the lease is signed.

Lead-based paint hazards: The Final Rule still requires testing

and treatment for lead-based paint only where applicants lease or

purchase properties constructed before 1978 and where children

under the age of seven are expected to reside. However, the

Final Rule now requires testing and treatment on all \"applicable\"

surfaces, which means all painted surfaces, rather than

\"chewable\" surfaces.

\"Applicable\" surfaces include all intact and nonintact interior

and exterior painted surfaces of a residential structure.

The Final Rule also provides that where testing reveals the

presence of lead-based paint requiring treatment and the lessee

concludes that the cost of treatment would be beyond its means,

the lessee may cancel the lease.

Limits on Lease Term and Occupancy: The maximum lease period has

been increased to five years and an occupant\'s tenancy has been

limited to no longer than two years.

Recordkeeping: Lessees must establish and maintain sufficient

records to enable HUD to determine whether the requirements of

the program have been met. Housing will maintain the original of

property leases, and the original of records related to property

maintenance and repair, property inspections, tax escrow account,

general liability insurance, and a copy of the check register or

SAMS 1100 Cash Transmittal Form showing deposit of the \$1 year

lease fee for each lease period. CPD will maintain the records

required for their responsibility of outreach, preapproval and

approval of applicants, and all matters related to monitoring and

program compliance.

Rent: The Final Rule specifies the maximum rent that lessees can

charge occupants. CPD is responsible for monitoring this aspect

of the program.

Sublease: A lessee must execute a sublease to a homeless

occupant within 30 days of leasing a property from HUD or within

30 days after a property is vacated, unless a longer period is

approved by CPD. (This provision does not apply to Supportive

Housing applicants who are leasing pending the award of a grant.)

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Tax Escrow Account: Lessees are required to establish an escrow

account, with a Housing official as a co-signer on the account,

to ensure that funds are available for the payment of taxes.

Waivers: Upon completion of a determination of finding of good

cause, the Assistant Secretary for Housing-Federal Housing

Commissioner may waive any nonstatutory requirement of the Final

Rule.

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SECTION I - LEASE WITH OPTION TO PURCHASE ACQUIRED PROPERTIES FOR

USE BY THE HOMELESS

A. Eligible Applicants: CPD makes the determination of

applicant eligibility from criteria included in the Final

Rule and in CPD guidance. A preapproved applicant must

provide documentation to support their request for approval,

including a description of their real property needs,

number(s) of properties requested, and a description of

their geographic area of interest.

B. Eligible Properties: The following single family properties

are eligible for lease under this program:

1\. Up to 10 percent of a Regional office\'s beginning of

the fiscal year (October 1) total inventory may be made

available. (See this Section, para. Q.)

2\. The property must be vacant.

3\. The property must not be committed to another purpose

or program.

4\. The property must be a new acquisition, not yet listed

for sale, or

5\. The property must have been listed for a minimum

cumulative period of 45 days and is:

\(a\) Unsold, with no pending offer and is

\(b\) On extended listing or Held Off Market (HOM).

C. Executing Leases: Housing and CPD must carefully coordinate

the execution of leases. Housing will execute all property

leases under the program at the request of CPD. Executing

leases means the determination of the appropriate amount of

insurance coverage and the purchase price, preparation of

the lease(s), and providing the lease to CPD so they may

obtain the signature of the applicant. The lease is to be

co-signed by the Chief Property Officer (CPO) after it is

signed by the applicant.

Before signing a lease or lease renewal, Housing must

collect the \$1 year rent (see Rent), and ensure that the

insurance binder has been provided (see Insurance) and a tax

escrow account established (see Tax Escrow Account).

The Master Agreement, lease form and model sublease have

been revised dated October, 1991, to reflect the new

provisions of the Final Rule. The new forms are included as

Attachments 2, 4 and 5. These forms must be used in the

future and are discussed below:

1\. Lease with Option to Purchase Acquired Properties for

Use by the Homeless: Use this form (Attachment 2) as

the property lease between HUD and the applicant. The

lease form is to be signed by the applicant and the

CPO.

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2\. Master Agreement: The Master Agreement (Attachment 4)

is used in addition to the lease agreement and is the

applicant\'s agreement to abide by all regulations

governing the program. After signature by the

applicant, the Master Agreement is signed by an

official of CPD.

Before a lease is renewed, Housing must approve or concur in

lease renewal, based upon considerations of whether the

lessee has met the requirements of the Final Rule and the

terms of the previous year\'s lease, including whether the

tax escrow account and insurance have been responsibly

maintained. Housing will deny lease renewals if it

determines that the lessee has not complied with the

requirements of the Final Rule or terms of the lease.

Housing should also ensure that a property inspection has

been made, as shown in Section VI. In addition, Housing and

CPD must carefully coordinate the requirements for a Master

Agreement before new leases or renewals are signed.

Lessees who executed leases under the Interim Rule may elect

to renew on the old form. However, a Master Agreement and

the current lease forms are mandatory for the lease of any

new properties. Any lease may be renewed by preparation of

a Lease Renewal, with a statement that the lessee hereby

elects to renew the lease for an additional term of one

year, to end on a specified date, and signed by the lessee

and CPO. An example Lease Renewal is shown as Attachment 6.

D. Ten-day consideration and inspection period:

1\. New acquisitions: Applicants have ten-days for

consideration and inspection of a property. The ten-day

period begins upon receipt by the applicant of the

list of properties. Where notification is by mail, the

10-day period begins to run five days after mailing by

CPD.

CPD is responsible for providing lists of properties to

pre-approved applicants. However, because Housing has

no method for tracking the time after the list of

properties is provided to CPD, unless Housing is

advised by CPD that CPD has received a written

expression of interest in the property, Housing must

assume there has been no written expression of interest

and must proceed to offer the properties for sale to

the general public not later than 15 days after the

date the list of new acquisitions was provided to CPD.

2\. During the 45-day mandatory public sale period: If

notified by CPD that CPD has received an expression of

interest in an eligible property during the period it

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is in the 45-day mandatory public sale period, the 10-day

period for consideration and inspection begins on

the day after the expiration of the 45-day period.

3\. After expiration of the 45-day mandatory public sale

period: If CPD receives an expression of interest on a

property after the expiration of the mandatory 45-day

public sale period, the ten-day consideration and

inspection period begins when the provider notifies CPD

of its interest in the property and not on the date

that CPD advises Housing.

In all cases Housing should assist CPD to the maximum extent

possible to assure that applicants are given every

opportunity to lease HUD-owned properties. However, in

general, normal processing should not be interrupted for

longer than 15 days.

E. Insurance: HUD is self-insured against hazards. However,

lessees must obtain general liability insurance on each

leased property, in an amount determined by Housing and

specified in the lease agreement, against loss by reason of

death or injury to any person or loss or damage to the

property of any person resulting from the use of the

property. Proof of insurance, such as a copy of the

insurance binder, is to be provided to Housing upon

execution of the lease. (Because CPD will have advised the

applicant of the insurance requirement as part of their

outreach, CPD may assist Housing as appropriate to obtain

the insurance binder.) A copy of the policy must be

provided to CPD within 30 days of lease execution and CPD

must ensure that the policy remains in force for the

duration of the lease. CPD is to request that the insurer

notify HUD if the insurance is canceled.

Housing may make determinations of the correct amount of

insurance based upon considerations including the fair

market value of the property. The amount of insurance is to

be inserted in the lease form.

F. Lead-Based Paint: This section applies to the lease or sale

of properties constructed prior to 1978 and establishes

procedures to eliminate, as far as practicable, the hazards

of lead-based paint poisoning with respect to properties

that may be occupied by children under seven years of age.

All testing and elimination of these hazards will be at the

applicant\'s expense.

1\. Definitions: The following definitions apply:

Applicable surfaces means all intact and non-intact

painted interior and exterior surfaces of a

residential structure.

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Defective paint surfaces means paint on applicable

surfaces that is cracking, scaling, chipping, peeling,

or loose.

Lead-based paint means a paint surface, whether or not

defective, identified as having a lead content greater

than or equal to 1 mg/cm{Sup 2}.

2\. Inspection and Treatment of Defective Paint Surfaces:

Housing must inspect the property for defective paint

surfaces before offering the property for sale or

lease. If defective paint surfaces are found,

treatment shall be completed by Housing before the sale

or lease of the property.

3\. Testing and Treatment of Applicable Surfaces: (a) If

the lessee or purchaser knows or has reason to expect

that the property will be occupied by homeless families

with children under the age of seven years, the lessee

or purchaser must cause the unit to be tested for

lead-based paint on all applicable surfaces before initial

occupancy. Testing must be conducted by a State or

local health or housing agency, by an inspector

certified or regulated by a State or local health or

housing agency, or by an organization recognized by

HUD. Lead content must be tested by using an x-ray

florescence analyzer (XRF) or other method approved by

Housing. Test readings of 1 mg/cm{Sup 2} or higher using an

XRF shall be considered positive for presence of lead-based

paint. Where lead-based paint is identified, the

lessee or purchaser must cause all applicable surfaces

to be treated. Treatment must consist of covering or

removal of the paint surface in accordance with 24 CFR

35.24(b)(2)(ii). If the lessee or purchaser certifies

to HUD that the property will not be occupied by

homeless families with children under the age of seven

years, no testing or treatment will be required.

4\. If a lessee or purchaser has reason to believe that a

property contains lead-based paint on applicable

surfaces, it may, at its option, dispense with the

testing procedure and proceed directly to treatment.

5\. The lessee or purchaser may not allow the property to

be occupied by children under seven years of age until

proof of testing or treatment, if necessary, as been

submitted to and reviewed by Housing.

6\. Where testing of leased property reveals the presence

of lead-based paint requiring treatment and the lessee

concludes that the cost of treatment would be beyond

its means, the lessee may cancel the lease as shown in

the lease form.

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G. Occupancy before lease or sale: Occupancy of a HUD-owned

property cannot be approved before the effective date of a

lease or a sale closing date under any circumstances.

H. Operating costs: Lessees are responsible for the payment of

all utilities, repair costs (including treatment for lead-based

paint, if necessary), management costs and any other

costs associated with the operation of leased properties.

This includes prompt reimbursement to HUD for the lessee\'s

pro rate share of property taxes.

I. Providing Lists of Properties to CPD and Notification to

Applicants: Housing and CPD should consult to arrive at an

effective and efficient method whereby PD regularly provides

lists of new acquisitions to CPD. The method mutually

agreed between CPD and Housing may be committed to writing

wherever the Regional Administrator or Office Manager deem

it appropriate.

Housing will provide lists of new acquisitions as long as

CPD has a need. CPD will coordinate the dissemination of

the property information so as to ensure that where more

than one applicant designates a specific geographic area,

those applicants receive the list of properties at the same

time. Properties will be leased to applicants on a first

come-first served basis.

With the exception of new acquisitions, there is no

requirement that lists of other eligible properties be

compiled for CPD on a regular basis.

J. Purchase of Leased Properties: See Section III.

K. Purchase Price: Housing determines the purchase price to be

shown on the lease form. The purchase price is the fair

market value of the property at the time the lease is first

initiated. The value as stated in the lease does not change

even though the lease may be renewed for subsequent one-year

periods.

Should the lessee elect to exercise the purchase option, the

lessee is entitled to the lower of the fair market value

established at the time of lease initiation, or at the time

of sale, less 10 percent, provided the lessee agrees to use

the property either to house low-income tenants for a period

of not less than 10 years or to resell the property to a

low-income buyer. See Section III, Direct Sale, for a

determination of the purchase price should the lessee elect

to exercise the purchase option.

L. Rehabilitation and repairs: Lessees are authorized to

rehabilitate properties under lease only with the written

consent of Housing. Only minimal repairs are allowed to

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make the property tenantable and major rehabilitation is

prohibited.

The lessee is responsible for repair of any property damage

caused by its acts or neglect, or its occupants\' acts or

neglect. The lessee is required to repair such damage at

its own expense. If the lessee does not make repairs within

a reasonable time after the damage occurs, HUD may, at its

option, make the repairs and charge the cost to the lessee.

Failure by the lessee to make the necessary repairs or to

reimburse HUD for the cost of repairs will constitute

grounds for termination of the lease and may result in

termination from the program.

M. Rent: Lessees must pay HUD a nominal rent of \$1 for each

one-year lease period. Upon execution of a lease, Housing

must ensure that the \$1 year rent fee is collected and

deposited to HUD\'s credit with the U.S. Treasury. (See

Section VI.A.4.) Lessees may charge their occupants rent,

including utilities. CPD will determine the occupant\'s

financial means pursuant to the Final Rule. In no event

may the rent charged exceed the occupant\'s pro rata share of

the lessee\'s costs of operating the property. CPD should

promptly be advised of any reports of excessive rent

collections.

N. Sales: See Section III.

O. Sublease: Within 30 days of leasing a property from HUD or

within 30 days after a property is vacated, a lessee must

sublease the property to the homeless, unless a longer

period is approved by CPD. CPD is responsible for managing,

monitoring and, if necessary, preparing subleases to assist

the lessee. Housing\'s obligation is to ensure that

properties do not remain vacant beyond the 30-day limit. If

Housing becomes aware of vacancies beyond 30 days, CPD is to

be notified promptly so that corrective action can be taken.

A model sublease is included for your information as

Attachment 5. The requirement for a sublease is shown in

the property lease. The model sublease does not have to be

in the format attached; however, the model provided sets

forth the minimum conditions of the sublease. The sublease

is not prepared by HUD because it is between the lessee and

occupants. CPD will monitor a lessees\' compliance with the

requirement for a sublease.

P. Tax Escrow Account: Lessees are required to establish a tax

escrow account, with the Chief Property Officer (CPO) as

co-signer on the account, to ensure that funds are available

for the payment of property taxes. All applicants will have

been advised by CPD as part of their outreach of the

requirement for a tax escrow account.

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Once the account is established, the lease may be executed.

Housing must monitor the account (such as reviewing

periodic statements), on a regular basis to ensure that

lessees make deposits to the account in amounts sufficient

to reimburse HUD in a timely manner for the estimated amount

of property taxes to be paid by HUD in the next tax period.

If the taxing authority relieves HUD of all tax liability

while the property is leased, no tax escrow account is

required.

The timely reimbursement to HUD for property taxes paid by

HUD, or deposit of the estimated amount to be paid in the

next tax period, are a significant consideration in

determining the applicant\'s performance under the lease.

Whenever payment of taxes becomes an issue of

nonperformance, Housing must advise CPD so that corrective

action can be taken.

Q. Ten Percent of Inventory Available for the Homeless Lease

Program: Field Offices may not lease more than the maximum

number of properties allowed and allocated by the Regional

Office. Properties already leased will count toward the 10

percent maximum. However, if the inventory is reduced to a

point where the number of leased properties goes beyond the

allocated number, Field Offices must not terminate any lease

for that reason. Rather no new leases will be executed

until the inventory increases to a point that the threshold

will not be exceeded. Regional Offices have the flexibility

of changing a Field Office\'s allocation depending upon local

circumstances.

R. Term of Lease: The maximum lease term has been increased to

five years. An initial lease may be negotiated for such

time as the lessee requires, not to exceed one year. Leases

are renewable, at the option of the lessee and with the

approval of Housing, at the end of the first lease term for

up to four additional one-year terms, on a year-to-year

basis, provided the lessee has met the requirements of the

program. Housing may use the format of the Lease Renewal

shown on Attachment 6 to renew the lease.

Lessees who leased properties under the Interim Rule may

extend the maximum term of their lease to five years if they

sign a new lease form which reflects all other changes to

the program as prescribed in the Final Rule. If a lessee

converts an old lease to a five-year lease, the maximum

lease term is five years less the number of years under the

prior lease. The lease form must be changed to reflect

the appropriate maximum lease term.

S. Termination of Lease: At the end of the maximum lease

period, if the provider has not exercised the option to

purchase, CPD will notify the provider to vacate the

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property and, if necessary, will take appropriate action

under the eviction laws of the jurisdiction in which the

property is located.

All property returned to HUD must be vacant, and will be

placed on the market for sale to the public. A Lessee may

terminate a lease at any time without penalty upon 30-days

written notice. (See lease form). When a lease is

voluntarily terminated, it should promptly be returned,

unoccupied, to the inventory. If a lease is terminated

before the end of the lease term, taxes and utilities due on

the property will be prorated between Housing and the

lessee.

Properties must be returned to HUD in as good a condition as

when received, including boarding up and other security.

All property returned to HUD at the end of the lease period

will be placed on the market for sale to the general public.

Housing must work closely with CPD wherever HUD proposes

termination of a lessee for cause, particularly where the

properties are occupied. The Director of the Single Family

Property Disposition Division is to be promptly notified of

any instance in which lease termination for cause may result

in the return to inventory of occupied properties.

T. Vacancies of 30 Days or More After Lease: Within 30 days of

leasing a property from HUD, or within 30 days after a

property is vacated, the lessee must sublease the property

to the homeless, unless a longer period is approved by CPD.

Housing must approve where a vacancy longer than 30 days is

required for repair or clean-up. Housing must consult with

CPD to ensure compliance where vacancies of 30 days or more

are reported to Housing.

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SECTION II - LEASE-OPTION TO PURCHASE PROPERTY BY SUPPORTIVE

DEMONSTRATION PROGRAM APPLICANTS

A. Eligible applicants for Supportive Housing acquisition

(grant) funds, under both the Transitional Housing Program

and the Permanent Housing for the Handicapped Homeless

Programs, may apply for lease with option to purchase. CPD

makes the determination of applicant eligibility for the

Supportive Housing Demonstration Program.

Applicants under this program are required to demonstrate

project site control for their proposed project. Therefore,

these applicants are permitted to lease HUD-acquired

properties for a six-month period while their grant

application is under review by CPD. After the applicant

selects a property, this property will be the one which the

applicant will use as evidence in its grant application that

the applicant has site control. In the event the applicant

is not successful and is not awarded a grant, it may convert

the six-month lease to a lease with option to purchase

provided it agrees to abide by all requirements of the

program.

B. Except as shown below, the applicant\'s responsibilities for

leasing under this program are the same as under the regular

lease program, including the requirement for payment of the

pro rata share of property taxes, general liability

insurance, utilities, security and maintenance of the

property.

1\. Different criteria exist for determining the

eligibility of an applicant. Eligible applicants will

be determined by CPD based upon definitions in the

Supportive Housing Demonstration Program.

2\. The lease term is six-months versus one year.

3\. There is no requirement for occupancy by a homeless

individual or family within 30 days and, therefore, no

requirement for a sublease. However, the property may

be occupied by the homeless after CPD determination of

capacity.

4\. There is no requirement for a tax escrow account during

the six months the property is under lease. If a grant

is not awarded, and the lease is converted to the

regular program, a tax escrow account must be

established.

5\. Except as provided in paragraph D(2) below, the

applicant may not sublease the property during the

lease term.

C. Execution of the Lease-Option Agreement: The form Lease

Option to Purchase Property by Supportive Housing

Demonstration Program Applicants (Attachment 3) is to be

entered into by HUD and the grant applicant. The lease will

be prepared at the request of CPD and provided to CPD so

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that they may obtain the applicant\'s signature. The CPO

will sign the lease after it has been signed by the

applicant and all other terms and conditions of lease

execution including insurance and prepayment of the pro rata

share of property taxes, have been met.

D. Converting Lease-Option to Lease with Option to Purchase;

Occupancy during Lease Term:

1\. A lessee whose application for grant assistance is not

approved may convert the lease-option agreement to a

Lease with Option to Purchase HUD Acquired Single

Family Properties for Use by the Homeless (Attachment

2\) under the same terms and conditions as exist for

applicants under that program, subject to CPD approval.

2\. A lessee may be allowed to sublease the property to the

homeless while its application for a grant is pending

if the lessee demonstrates to CPD\'s satisfaction that

it has the capacity to operate and manage a homeless

program. In the event the grant application is not

approved, the lessee must execute a lease with option

to purchase agreement under the terms and conditions of

that program in order to continue to sublease the

property to the homeless.

E. Exercising Option to Purchase: An applicant may exercise

its right to purchase the property at any time during the

term of the lease by executing the form HUD-9548, Sales

Contract. The applicant will be given 30 to 60 days,

(depending on the practice of the local HUD Field Office)

from the date of acceptance of the contract by Housing to

close the sale. Upon exercising the option to purchase,

Housing will code the property in SAMS following the

instructions contained in Section IV.

F. Lead-Based Paint: Refer to Section I.F. for lead-based

paint requirements.

G. Termination of the Lease-Option Agreement: If the applicant

is not approved for grant funds the lease-option agreement

terminates automatically at the end of the lease term unless

an extension has been granted by CPD with Housing\'s

concurrence or the applicant fails to exercise its right to

purchase.

If the lessee voluntarily terminates the lease-option

agreement during the lease term, the applicant must promptly

notify CPD that it is releasing the property back to HUD.

Housing must promptly return the property to processing.

Housing will pro rate property taxes as of the termination

date of the lease-option agreement. The property must be

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returned to HUD in the same condition in which it was

conveyed to the applicant, excluding normal wear and tear if

it was occupied.

Upon expiration of the six-month lease or voluntary

termination by the applicant, Housing must promptly return

the property to processing unless CPD approves an extension

of the lease with the concurrence of Housing or the

applicant converts the lease as discussed in paragraph D.

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SECTION III - SALE OF ACQUIRED PROPERTIES DIRECTLY TO NON-PROFIT

ORGANIZATIONS AND UNITS OF LOCAL GOVERNMENT

A. Eligible applicants under this Section are State and local

governmental agencies, nonprofit organizations and others

who have been preapproved by CPD. This Section is separate

and distinct from the Supportive Housing Demonstration

Program and deals with direct and competitive sales to

nonprofit groups and units of local government. A direct

sale is a sale to a selected purchaser to the exclusion of

all others without resorting to advertising for bids. A

direct sale under the homeless program is permissible only

to eligible applicants approved by CPD.

When an applicant or lessee purchases property, Housing

staff are to establish the sales price, execute the Sales

Contract from information provided by CPD, and coordinate

the sales closing.

B. Procedures for sales to all preapproved applicants:

1\. Consideration Period: Applicants preapproved by CPD

may request lists of properties within their designated

geographical areas before Housing lists them for sale.

CPD will coordinate the dissemination of information to

insure that where more than one applicant designates a

specific area, those applicants receive the list of

properties at the same time. Properties will be sold

to applicants on a first come-first served basis.

After an applicant has been notified of eligible

properties available in its geographical area,

properties will remain available for a 10-day

consideration and inspection period. The 10-day period

will begin to run upon receipt of the list of eligible

properties by the applicant. In the case of

notifications by mail, the 10-day period will begin to

run five days from the date CPD provides the

notification to the applicant.

As in the lease program, because Housing has no method

for tracking the time after the list of properties is

provided to CPD, Housing must assume there has been no

expression of interest and must proceed to offer the

properties for sale to the general public no later than

15 days after the list of properties was provided to

CPD.

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After the initial 10-day consideration and inspection

period, a property will be available to applicants for

direct sale provided the property meets the following

criteria:

\(a\) Is unsold

\(b\) Has no pending offer from the public

\(c\) Is not in a public bid offering period, and

\(d\) Is not committed to another purpose or program.

If, during the 10-day consideration and inspection

period, CPD receives a written expression of interest,

the property must promptly be held off market, as shown

in Section IV.

2\. Direct Sales: Applicants who desire to purchase leased

properties during the lease term will be offered the

properties at the fair market value for the property in

the approved disposition program, less 10 percent.

3\. Competitive Sales: As an alternative to direct sales,

an applicant, whether or not preapproved by CPD, may

submit a competitive bid on any property listed for

sale to the general public, following normal HUD

procedures for the competitive bid process. If the

applicant\'s competitive bid is the winning bid at the

bid opening, Housing will accept the bid, and will

reduce the net amount due HUD by 10 percent. Since HUD

will not pay closing costs or a sales commission, such

offers are to be submitted without the assistance of a

selling broker. Thus, the gross bid is in effect the

\"net bid\" since there are no deductions.

4\. Lead-Based Paint: Refer to Section I.F.

5\. Terms of sale:

\(a\) To purchase property by direct or competitive

sale, an applicant must execute Form HUD-9548,

Sales Contract.

\(b\) Sales will be on an as-is, all-cash basis, with or

without FHA mortgage insurance. HUD will not pay

a fee for a selling broker. HUD will pay the

closing agent\'s fee. No other closing expense

will be paid by Housing. The applicant must pay

all other closing costs.

\(c\) Applicants are expected to close the sale no later

than 30 to 60 days (depending upon the practice of

the local Field Office) from the date of

acceptance of the contract by the Field Office.

\(d\) Housing\'s closing agent will be used to close the

sale. Earnest money deposits and closing

extension fees may be collected by Housing, if

necessary, to assure compliance with the sales

contract.

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\(e\) Under any circumstances, major rehabilitation or

occupancy of a property is not allowed until the

sale has closed and title has passed.

C. Coding into SAMS - See Section IV.

D. Holding Properties Off the Market for Applicants Not Yet

Approved: In general, CPD should preapprove applicants for

direct purchase. Housing should not hold properties off the

market pending such approval. However, in unusual

circumstances, Housing may, at the request of CPD, hold a

limited number of properties off the market pending

applicant approval where deemed appropriate, such as where

the applicant has a need for properties in specific

locations and there are a limited number of HUD-owned

properties in the area. CPD is to treat such requests for

applicant approval on a priority basis.

E. Providing Lists of Properties to CPD and Notification to

Applicants - See Section I.I.

F. Qualifications for Non profits: Applicants wishing to

purchase acquired properties on a direct sale basis must be

preapproved by CPD.

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SECTION IV - CODING PROPERTIES INTO THE SINGLE FAMILY ACCOUNTING

MANAGEMENT SYSTEM (SAMS):

Each property leased or sold to a homeless provider must be

accurately coded into the Single Family Accounting Management

System (SAMS). Since there are different codes for leasing and

sales under this program, you must follow the instructions

carefully. Please note: The instructions provided herein for

the Homeless Program are not to be confused with the

Demonstration program, which requires different input. Refer to

the SAMS User Handbook for instructions on the Demonstration

Program.

When an applicant under the Homeless Program provides CPD with an

expression of interest, in either lease or direct sale, Housing

must track the property as follows:

Lease-Option: If the property is chosen for lease, enter status

\"4\", Programmed for Rent, in the Held Off Market Code of Screen

CM DS C3. Since the property will be leased, a SAMS FORM 1109,

Define Lease/Lessees, must be completed. On that form, the Type

entered will be HH, Housing for the Homeless. If the purchase

option is subsequently exercised, remove the property from status

\"4\" and transfer to status \"7\" and enter DR in the Sale Type of

Screen CM DS C3 and choose the appropriate action as shown above.

Direct Sale: If an applicant expresses an interest in purchase

by direct sale, the property is to be entered as \"7\",

Offered - Homeless\", in the Held Off Market code of Screen CM DS C3.

The Sale Type in CM DS C3 will be DR for Direct Sale. The use of DR

will produce a pop-up screen that requires the identification of

the Direct Sale Type. The options are:

D - Demonstration Program

F - Homeless - Non-profit

G - Local Government

H - Urban Homesteading

L - Homeless Lease with Option

M - Homeless - Local Government

N - Non-profit Group

O - Other

S - Supportive Housing

On the pop-up screen, enter:

A. Direct Sale Type: Enter options from above, except

\"Demonstration Program\" is not an option.

B. Enter \"Y\" (yes) or \"N\" (no) for whether or not insured.

C. Complete As Is price.

D. Check \"Y\" (yes) for discount. SAMS will compute the

discount price.

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SECTION V - OUTREACH FOR HOMELESS PROGRAM

CPD is responsible for all outreach. This includes direct

contacts in response to inquiries, making lists of properties

available to preapproved applicants, and otherwise responding to

questions and concerns about the program. CPD will also provide

informational materials on this and the Supportive Housing

Demonstration Program.

At the discretion of the Regional Administrator, in offices

without a CPD function, Housing staff may conduct outreach

activities, as long as responsibilities are clearly defined and

accountability is established. (See Section VI.E - Timekeeping.)

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SECTION VI - MONITORING THE LEASE PROGRAMS

Accept as shown herein, CPD is responsible for monitoring

compliance with all requirements of the Final Rule and Housing

should not become involved in communications between HUD, the

lessee, or homeless occupants. The issues discussed below are

relevant to Housing responsibilities under the program:

A. Case file: The Property Disposition case file is the

official property file. As such, although CPD will retain

original and working documents related to applicant approval

and monitoring, PD must ensure that the PD case file

contains:

1\. The original of all leases.

2\. Original correspondence approving rehabilitation and/or

minor repairs.

3\. Original property inspection reports.

4\. Copy of the check register showing deposit of the \$1

year lease fee to the property account or copy of the

SAMS 1100 Cash Transmittal Form.

5\. Original insurance binder and/or policy showing that

the property is covered by general liability

insurance.

6\. Original documents showing evidence that lessee has

established a tax escrow account for payment of

property taxes with Housing as co-signer.

B. Property Inspections: Housing is responsible for inspection

of HUD-owned properties leased under this program.

Inspections should be made as often as necessary where there

are major or continuing problems (such as reports of damage

beyond normal wear and tear), but must be made immediately

prior to executing the lease and at least annually

thereafter, preferably on the anniversary of the execution

of the lease.

During inspection, the property\'s condition should be

compared to its condition at the time of lease initiation.

No alternations, additions, or improvements are allowed

without the written approval of Housing. If Housing learns

of such alterations, additions, or improvements, CPD should

be promptly advised and corrective action taken to ensure

compliance with program requirements. CPD should also be

advised of reports of vandalism or property damage beyond

normal wear and tear, and additional inspections made until

the problem is resolved. Corrective action must be taken to

prevent property damage beyond normal wear and tear.

A Suggested Inspection Check List is enclosed for

documenting inspections. (See Attachment 7.) Use of the

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same inspection check list for the initial and subsequent

inspection will facilitate a determination of whether the

property is returned to HUD in as good a condition as when

initially leased, excluding normal wear and tear.

CPD is responsible for monitoring compliance with terms of

the lease, tenant assessment, and liaison with the lessee as

necessary to facilitate Housing access to occupied

properties for the purpose of property inspection. During

inspections, wherever Housing staff encounter tenant

complaints or any property condition requiring contact with

the lessee, they are to promptly advise CPD of the nature of

the complaint or problem. Conversely, during CPD monitoring

or tenant assessment, should CPD observe property damage

beyond normal wear and tear, CPD will inform PD.

Although inspections may be conducted by Property

Disposition or other Housing staff, Field Offices may desire

to contract out this service. Existing Area Management

Broker (AMB) or Real Estate Asset Management (REAM) contract

format make no provisions for this type of inspection.

Offices are not to use AMBs or REAMs for this purpose.

A possible contract source for this service is an existing

AMB Monitor currently used by the Field Office. The

attached Blanket Purchase Order (BPA) (See Attachment 8) is

flexible enough to encompass such an inspection service with

specific inspection requirements set forth in individual

work orders issued under the BPA.

Another option is to procure a separate inspection service

via a separate BPA exclusively for this purpose. The BPA

document should then be customized for this inspection

service.

C. Privacy/Freedom of Information: The identify of any

individual or family occupying HUD-owned properties is

protected under the \"personal privacy\" exemption of the

Freedom of Information Act (5 U.S.C. 552(b)(6)). HUD

interprets this exemption as extending to the street

addresses of properties leased under the program, since

information on the location of properties can be used to

identify the occupants. However, the exemption does not

extend to groups or organizations; therefore, the identify

of lessees, which are governmental or nonprofit

organizations, cannot be protected.

Requests for information requiring unusual search or

compilation time should be made following established

procedures for the Freedom of Information Act.

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ATTACHMENTS

Name Number

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Single Family Property Disposition Homeless

Initiative; Final Rule

Matrix of Tasks 1

Lease With Option to Purchase HUD Acquired Single

Family Properties for Use By the Homeless 2

Lease-Option to Purchase Property by Supportive

Housing Demonstration Program Applicants 3

Master Agreement 4

Model Sublease for Use By Lessors of Hud Acquired

Single Family Properties for Use By the Homeless 5

Lease Renewal, example 6

Suggested Inspection Check List-Property Leased

for Homeless Use 7

Procedures for Establishing Blanket Purchase

Agreements (BPA) 8

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ATTACHMENT 1

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TASK PD CPD

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Approval/preapproval of applicants x

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Determination of occupant rent amount(s) x

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Determination of lessee operating costs x

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Dispute Resolution:

Lessee/tenants x

Other x x

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Evictions x

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Inspections:

of property x

for tenant assessment and monitoring x

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Insurance:

Determination of coverage value x

Monitoring timely coverage x

Obtaining binder before lease execution x

Obtaining policy x

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Lease:

Preparation at request of CPD x

Renewal at request of CPD with Housing

Concurrence x

Signature on property leases x

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Lists:

Compiling lists of eligible properties x

Providing to CPD x

Providing to applicants x

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Master Agreement

Preparation x

Signature x

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Median income determination x

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Monitoring:

of tenants x

of property taxes and tax escrow

account x

of current insurance coverage x

of SAMS x

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Notifying applicants of eligible

properties x

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Occupant/tenant contacts with HUD x

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Operating costs, determining eligibility x

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Outreach to public inquiries/applicants x

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Attachment 1

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TASK PD CPD

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Privacy:

of property address/tenant names x x

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Property inspections x

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Property taxes:

payment of x

(Also, see tax escrow account)

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Rent:

Collection of lessee \$1/year x

Determination of occupant rent x

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Repairs:

Approval of repairs x

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Sales:

Determination of purchase price x

HUD signature on sales contract x

Obtaining information from lessee for

preparation of sales contract x

Preparation of sales contract x

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Tax escrow account:

Reimbursement of taxes paid by HUD x

Collection x

Monitoring x

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Taxes:

Obtaining binder x

Ensuring payment x

Obtaining policy X

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

======================================================================

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

ATTACHMENT 2

PAGE 1 OF 6

LEASE WITH OPTION TO PURCHASE HUD ACQUIRED

SINGLE FAMILY PROPERTIES FOR USE BY THE HOMELESS

This lease is made on \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ ,
19\_\_, between the

Department of Housing and Urban Development, LESSOR, and

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
LESSEE.

1\. LESSOR agrees to lease to the LESSEE and the LESSEE agrees to

rent the property known as
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

referred to hereafter as \"the property.\"

2\. LESSEE shall use the property only for the purposes of

providing temporary shelter for homeless persons as defined in 24

CFR Section 291.405, and as further defined in the Master Agreement

incorporated hereafter. LESSOR reserves the right to review the

application and qualifications of any person being considered for

occupancy by the LESSEE.

3\. LESSEE shall refrain from providing shelter to any individual,

family, or group of individuals in which a conflict of interest may

ensue. Employees, officers or relatives of the LESSEE, regardless

of their financial circumstances, shall be subject to this

restriction. This shall be governed by 24 CFR Section 291.435(b).

4\. LESSEE agrees to shelter homeless person(s) in the subject

property within thirty (30) days of entering into this Lease

Agreement. This restriction may be extended by the LESSOR.

5\. LESSEE agrees to pay, as they become due, all charges for

utilities and other services. LESSOR shall pay all local, state,

and other specially assessed taxes due on the property and LESSEE

shall reimburse LESSOR for such payment. LESSEE shall establish an

escrow account in a financial institution insured by the Federal

Deposit Insurance Corporation (FDIC), and shall make the LESSOR a

co-signer on the account. LESSEE shall provide LESSOR the name of

the institution and the account number. Only payments for taxes

shall be held in said account. Releases from this account must be

pre-approved by LESSOR. If the lease is terminated, these expenses

will be prorated between the LESSOR and the LESSEE.

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ATTACHMENT 2

Page 2 of 6

6\. LESSEE agrees to keep the property in a clean and sanitary

condition and to comply with all federal, state and local laws and

regulations, codes and ordinances, restrictive covenants,

condominium declarations and by laws, and homeowners\' association

rules. LESSEE agrees to obtain an occupancy permit if required

and to reimburse LESSOR for any fines, penalties and costs and all

liability for violation or noncompliance with any requirements

related to the property.

7\. LESSEE agrees that if any damage to the property shall be

caused by its acts or neglect, or its occupants\' acts or neglect,

the LESSEE shall repair such damage at its own expense, and should

the LESSEE fail or refuse to make such repairs within a reasonable

time after the occurrence of such damage, the LESSOR may at its

option make such repairs and charge the cost thereof to the LESSEE,

and the LESSEE shall reimburse the LESSOR for the total cost of all

damages so caused. Failure or refusal by the LESSEE to cure gives

LESSOR the right to terminate the lease and recover any costs.

8\. LESSEE agrees to make all repairs to the property necessary to

make the premises tenantable and at the end of the lease term to

deliver up and surrender said property to the LESSOR in as good a

condition as when received, including boarding up and other

security. No alteration, addition, or improvements shall be made

to the property without the consent of the LESSOR in writing, and

all additions and improvements made by the LESSEE shall belong to

the LESSOR.

9\. LESSEE agrees to remove tenants, or pursue eviction

proceedings, whichever may be the case, upon a conviction of such

tenants for breaching the peace.

10\. LESSEE agrees to maintain the property free from the illegal

use, possession or distribution of drugs or alcohol. Evidence of

illegal use, possession, or distribution of drugs or alcohol shall

result in immediate eviction of tenants by the LESSEE.

11\. LESSEE shall indemnify and save harmless the LESSOR, its

officers, agents, servants and employees from all liability for

death or injury to any person, or loss or damage to the property of

any person resulting from the use of the property by the LESSEE.

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ATTACHMENT 2

Page 3 of 6

12\. LESSEE shall maintain general liability insurance on the

property in the amount of \$\_\_\_\_\_\_\_\_\_\_\_\_\_ against loss by
reason of

death or injury to any person or loss or damage to property of any

person resulting from the use of the property. The Secretary of

the Department of Housing and Urban Development shall be named as

a beneficiary or payee. LESSEE shall provide LESSOR a binder as

proof of insurance upon the signing of this LEASE. LESSEE shall

provide LESSOR a copy of the insurance policy within 30 days of the

signing of this LEASE.

13\. LESSEE agrees that it will not place or allow to be placed any

liens on the property without the express written consent of LESSOR

and further agrees to remove and to indemnify the LESSOR for any

costs incurred related to the removal of any liens, including

mechanic\'s liens, placed on the property during the period of

tenancy without LESSOR\'s approval.

14\. LESSEE agrees that the LESSOR shall have the right to enter

the property at all reasonable hours for the purpose of inspecting

the condition of the property.

15\. LESSEE shall not assign, sublet, or part with the possession

of the whole or any part of the property without first obtaining

the written consent of LESSOR, except as to comply with Paragraph

25 of this LEASE. LESSEE may terminate this lease at any time

without penalty upon 30-day written notice to LESSOR.

16\. LESSEE agrees that if it should fail to comply with any

provisions of this lease, it shall be lawful for the LESSOR, at its

option, to re-enter and take possession upon 30-day written notice

to LESSEE, and thereupon this lease shall terminate. LESSEE agrees

to remove all sublessees occupying the property to adequate housing

within the 30-day notice period so that the property will be vacant

upon LESSOR\'s re-entry. The failure of the LESSOR to insist upon

the strict performance of the terms of this lease shall not be

construed as a waiver of the LESSOR\'s right to later enforce any

provision of the lease.

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ATTACHMENT 2

Page 4 of 6

17\. LESSEE agrees not to discriminate against any individual,

employee or applicant on the basis of race, color, religion, sex,

national origin, handicap, age or familial status, pursuant to the

requirements of the Fair Housing Act, 42 U.S.C. Section 3601-20,

and to comply with the further nondiscrimination and equal

opportunity requirements of 24 CFR Section 291.435(a).

18\. LESSEE agrees that it will submit at any time to such

examination of any and all of its records and accounts, including

but not limited to those related to this transaction, as the

Secretary of Housing and Urban Development or the Comptroller

General may require.

19\. All goods and chattels placed or stored in or about the

property are at the risk of the LESSEE.

20\. No member of, or Delegate to Congress, or Resident

Commissioner shall be admitted to any share or part of this lease

or to any benefit that may arise therefrom.

21\. LESSEE warrants that it has not employed any person to solicit

or secure this lease upon any agreement for a commission,

percentage, brokerage or contingent fee. Breach of this warranty

shall give the LESSOR the right to annul this lease or in its

discretion to recover from the LESSEE the amount of such

commission, percentage, brokerage or contingent fee in addition to

the consideration herein set forth.

22\. LESSEE shall have an option to purchase said property for a

purchase price of \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_. This option may be
exercised

only upon LESSEE\'s agreement to use said property to either house

low-income tenants for a period not less than ten (10) years

subsequent to the date of sale, or sell property to a low-income

individual. Otherwise, LESSEE agrees to purchase property at the

fair market value established at date of sale, less 10 percent. If

conditions outside the control of the LESSEE cause the fair market

value of the property to decrease after the initiation of the

lease, the property will be offered at the fair market value at the

time of sales closing, less 10 percent. Any repairs to or

rehabilitation of a property done by LESSEE during the lease term

shall not be reflected in the purchase price. LESSEE may exercise

this option at any time during the term of this lease. LESSEE may

exercise this option only by execution of Form HUD-9548, Sales

Contract. The property is being sold on an \"as is\" \"all cash\"

basis. FHA mortgage insurance may be made available for the

purchase of the property at the sole discretion of the LESSOR.

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ATTACHMENT 2

Page 5 of 6

23\. The term of the lease shall be for a period of one year,

beginning on \_\_\_\_\_\_\_\_\_, 19\_\_, at a rent of \$1 per year.
LESSEE

may elect, with agreement of LESSOR, to renew the lease for four

additional lease terms of one year each.

24\. LESSEE may charge the homeless persons occupying the property

a rental or occupancy charge at a rate appropriate to the

financial means of the person in accordance with the provisions of

Section 291.415(c)(2). This charge may be the greater of either 30

percent of the family\'s monthly adjusted income or 10 percent of

the family\'s monthly income, but in no event shall the occupancy

charge exceed the operating costs.

25\. LESSEE shall enter into a sublease agreement with each

homeless person(s), with said sublease agreement including the

following minimum conditions:

1\) The rental agreement shall provide for month-to-month

tenancy under the law of the State in which the property is located

and shall be limited to no longer than two years.

2\) The sublease shall notify the homeless person(s) that their

tenancy is subject to the continuation of LESSEE\'s lease with

LESSOR, and will be terminated in accordance with the requirements

of State law upon any termination of LESSEE\'s lease, either at the

initiation of the LESSEE, the end of the term of LESSEE\'s lease

with LESSOR, or by LESSOR upon failure of LESSEE to abide by the

terms of the Lease.

3\) The homeless person(s) as tenant(s) agrees to refrain from

using the property for unlawful purposes including, but not limited

to, the illegal use, possession or distribution of drugs or

alcohol.

4\) The LESSEE (as Landlord) agrees to maintain the property

according to local code requirements.

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ATTACHMENT 2

Page 6 of 6

26\. The following provisions shall only apply for properties

constructed prior to 1978. LESSOR will inspect the property for

defective paint surfaces and will treat any defective surfaces

found. If LESSEE knows or has reason to expect that the property

will be occupied by families with children under the age of seven

years, LESSEE must test for lead-based paint on all painted

surfaces before initial occupancy. Where lead-based paint is

identified, LESSEE must abate at its own expense as required in 24

CFR Section 291.430(d). LESSEE may not permit occupancy until

testing and any required abatement is completed. LESSEE must

obtain certification that required abatement is completed.

This lease contains the entire agreement between the parties,

except for the Master Agreement, which is incorporated by reference

herein, and neither party is bound by any representations or

agreements of any kind except as herein contained.

Secretary of Housing and Urban Development

LESSOR

WITNESS:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
BY\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

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

LESSEE

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

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ATTACHMENT 3

PAGE 1 OF 6

LEASE-OPTION TO PURCHASE PROPERTY

BY

SUPPORTIVE HOUSING DEMONSTRATION PROGRAM APPLICANTS

This lease is made on \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 19\_\_,
between the

Department of Housing and Urban Development, LESSOR, and

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
LESSEE.

1\. LESSOR agrees to lease to the LESSEE and the LESSEE agrees to

rent the property known as
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,

referred to hereafter as \"the property.\"

2\. LESSEE shall use the property only for the purposes of

providing temporary shelter for homeless persons as defined in 24

CFR Section 291.405, and as further defined in the Master Agreement

incorporated hereafter. LESSOR reserves the right to review the

application and qualifications of any person being considered for

occupancy by the LESSEE.

3\. LESSEE shall refrain from providing shelter to any individual,

family, or group of individuals in which a conflict of interest may

ensue. Employees, officers or relatives of the LESSEE, regardless

of their financial circumstances, shall be subject to this

restriction. This shall be governed by 24 CFR Section 291.435(b).

4\. LESSEE agrees to shelter homeless person(s) in the subject

property within thirty (30) days of entering into this Lease

Agreement. This restriction may be extended by the LESSOR.

5\. LESSEE agrees to pay, as they become due, all charges for

utilities and other services. LESSOR shall pay all local, state,

and other specially assessed taxes due on the property and LESSEE

shall reimburse LESSOR for such payment. LESSEE shall establish an

escrow account in a financial institution insured by the Federal

Deposit Insurance Corporation (FDIC), and shall make LESSOR a

co-signer to the account. LESSEE shall provide LESSOR the name of the

institution and the account number. Only payments for taxes shall

be held in said account. Releases from this account must be

pre-approved by LESSOR. If the lease is terminated, these expenses

will be prorated between the LESSOR and the LESSEE.

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ATTACHMENT 3

Page 2 of 6

6\. LESSEE agrees to keep the property in a clean and sanitary

condition and to comply with all federal, state and local laws and

regulations, codes and ordinances, restrictive covenants,

condominium declarations and bylaws, and homeowners\' association

rules. LESSEE agrees to obtain an occupancy permit if required and

to reimburse LESSOR for any fines, penalties and costs and all

liability for violation or noncompliance with any requirements

related to the property.

7\. LESSEE agrees that if any damage to the property shall be caused

by its acts or neglect, or its occupants\' acts or neglect, the

LESSEE shall repair such damage at its own expense, and should the

LESSEE fail or refuse to make such repairs within a reasonable time

after the occurrence of such damage, the LESSOR may at its option

make such repairs and charge the cost thereof to the LESSEE, and

the LESSEE shall reimburse the LESSOR for the total cost of all

damages so caused. Failure or refusal by the LESSEE to cure gives

LESSOR the right to terminate the lease and recover any costs.

8\. LESSEE agrees to make all repairs to the property necessary to

make the premises tenantable and at the end of the lease term to

deliver up and surrender said property to the LESSOR in as good a

condition as when received, including boarding up and other

security. No alteration, addition, or improvements shall be made

to the property without the consent of the LESSOR in writing, and

all additions and improvements made by the LESSEE shall belong to

the LESSOR.

9\. LESSEE agrees to remove tenants, or pursue eviction

proceedings, whichever may be the case, upon a conviction of such

tenants for breaching the peace.

10\. LESSEE agrees to maintain the property free from the illegal

use, possession or distribution of drugs or alcohol. Evidence of

illegal use, possession, or distribution of drugs or alcohol shall

result in immediate eviction of tenants by the LESSEE.

11\. LESSEE shall indemnify and save harmless the LESSOR, its

officers, agents, servants and employees from all liability for

death or injury to any person, or loss or damage to the property of

any person resulting from the use of the property by the LESSEE.

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ATTACHMENT 3

Page 4 of 6

18\. LESSEE agrees that it will submit at any time to such

examination of any and all of its records and accounts, including

but not limited to those related to this transaction, as the

Secretary of Housing and Urban Development or the Comptroller

General may require.

19\. All goods and chattels placed or stored in or about the

property are at the risk of the LESSEE.

20\. No member of, or Delegate to Congress, or Resident

Commissioner shall be admitted to any share or part of this lease

or to any benefit that may arise therefrom.

21\. LESSEE warrants that it has not employed any person to solicit

or secure this lease upon any agreement for a commission,

percentage, brokerage or contingent fee. Breach of this warranty

shall give the LESSOR the right to annul this lease or in its

discretion to recover from the LESSEE the amount of such

commission, percentage, brokerage or contingent fee in addition to

the consideration herein set forth.

22\. LESSEE shall have an option to purchase said property for a

purchase price of \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ . This option may be
exercised

only upon LESSEE\'s agreement to use said property to either house

low-income tenants for a period not less than ten (10) years

subsequent to the date of sale, or sell property to a low-income

individual. Otherwise, LESSEE agrees to purchase property at the

fair market value established at date of sale, less 10 percent. If

conditions outside the control of the LESSEE cause the fair market

value of the property to decrease after the initiation of the

lease, the property will be offered at the fair market value at the

time of sales closing, less 10 percent. Any repairs to or

rehabilitation of a property done by LESSEE during the lease term

shall not be reflected in the purchase price. LESSEE may exercise

this option at any time during the term of this lease. LESSEE may

exercise this option only by execution of Form HUD-9548, Sales

Contract. The property is being sold on an \"as is\" \"all cash\"

basis. FHA mortgage insurance may be made available for the

purchase of the property at the sole discretion of the LESSOR.

23\. The lease shall be for six months, beginning on
\_\_\_\_\_\_\_\_\_\_,

19\_\_\_\_, at a total rent of \$1. If LESSEE fails to exercise its

right to purchase the property, LESSEE may apply to HUD for

conversion of the lease-option agreement to a lease with option to

purchase as described in 24 CFR Section 291.110(c). Approval of

such conversion shall be granted at HUD\'s sole discretion.

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ATTACHMENT 3

Page 5 of 6

24\. LESSEE may charge the homeless persons occupying the property

a rental or occupancy charge at a rate appropriate to the

financial means of the person in accordance with the provisions of

Section 29l.415(c)(2). This charge may be the greater of either 30

percent of the family\'s monthly adjusted income or 10 percent of

the family\'s monthly income, but in no event shall the occupancy

charge exceed the operating costs.

25\. LESSEE shall enter into a sublease agreement with each

homeless person(s), with said sublease agreement including the

following minimum conditions:

1\) The rental agreement shall provide for month-to-month

tenancy under the law of the State in which the property is

located.

2\) The sublease shall notify the homeless person(s) that their

tenancy is subject to the continuation of LESSEE\'s lease with

LESSOR, and will be terminated in accordance with the requirements

of State law upon any termination of LESSEE\'s lease, either at the

initiation of the LESSEE, the end of the term of LESSEE\'s lease

with LESSOR, or by LESSOR upon failure of LESSEE to abide by the

terms of the Lease.

3\) The homeless person(s) as tenant(s) agrees to refrain from

using the property for unlawful purposes including, but not limited

to, the illegal use, possession or distribution of drugs or

alcohol.

4\) The LESSEE (as Landlord) agrees to maintain the property

according to local code requirements.

26\. The following provisions shall only apply for properties

constructed prior to 1978. LESSOR will inspect the property for

defective paint surfaces and will treat any defective surfaces

found. If LESSEE knows or has reason to expect that the property

will be occupied by families with children under the age of seven

years, LESSEE must test for lead-based paint on all painted

surfaces before initial occupancy. Where lead-based paint is

identified, LESSEE must abate at its own expense as required in 24

CFR Section 291.430(d).

LESSEE may not permit occupancy until testing and any

required abatement is completed. LESSEE must obtain certification

that required abatement has been completed.

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ATTACHMENT 3

Page 6 of 6

This lease contains the entire agreement between the parties,

except for the Master Agreement, which is incorporated by reference

herein, and neither party is bound by any representations or

agreements of any kind except as herein contained.

Secretary of Housing and Urban Development

LESSOR

WITNESS:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
BY\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

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

LESSEE

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

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ATTACHMENT 4

PAGE 1 Of 2

MASTER AGREEMENT

1\. This Agreement is made by and between the United States

Department of Housing and Urban Development (hereinafter referred

to as HUD), and
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, a
provider of

housing for the homeless (hereinafter referred to as Applicant).

This Agreement sets forth the rights and responsibilities of the

parties in the implementation of the Lease and Sale of Acquired

Single Family Properties for the Homeless Program.

2\. Applicant agrees to abide by the regulations governing this

program, as set forth in the Final Rule, 24 CFR Parts 291, 577

and 578, published in Federal Register Vol. 56, No. 179,

September 16, 1991.

3\. Applicant acknowledges and affirms that this program is

intended to assist individuals and families who are homeless by

providing them with temporary shelter and appropriate supportive

services with the goal of helping them move to independent

living. Applicant further acknowledges and affirms that this

program is not intended to assist non-homeless low-income

persons, nor persons who have not yet become homeless, nor

persons who pay a high percentage of their income in rent, reside

with others, or who, while they may be without permanent shelter

at the onset of receiving shelter through the applicant,

nevertheless have assets or other resources to obtain market rate

housing.

4\. Applicant agrees to serve those segments of the homeless

population which it has identified in its application to HUD.

Applicant may alter its targeted segments of the homeless

population upon reasonable notification to HUD. Failure to serve

its identified types of homeless individuals, or to provide

sufficient notice of a change in its service, shall give HUD the

right to immediately terminate this Agreement and all subsequent

leases between HUD and the Applicant.

5\. Applicant agrees to provide, or arrange for, those

supportive services identified in its application under this

program. Applicant may alter the types of supportive services it

provides to the homeless population it serves upon reasonable

notification to HUD. Applicant\'s failure to fulfill these

requirements shall give HUD the right to immediately terminate

this Agreement and all subsequent Leases between HUD and the

Applicant.

6\. Applicant agrees to maintain records and accounts of its

assistance to the homeless population. Applicant further agrees

to submit at any time to such examination of any and all of its

records and accounts, as required by HUD. This shall include any

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ATTACHMENT 4

PAGE 2 of 2

and all documentation of those homeless persons who have

requested the assistance of the Applicant, and those homeless

persons whom the Applicant has assisted.

7\. Applicant agrees to abide by all the terms and conditions

of any Lease entered into by the Applicant on an acquired Single

Family property. Applicant further agrees that any sublease

shall be controlled by the terms of the Lease between HUD and the

Applicant.

8\. This Master Agreement, and all subsequent Leases,

constitute the entire agreement between the parties hereto, and

may be amended only in writing executed by HUD and the Applicant.

The effective date of this Master Agreement shall be the date of

execution by HUD, except with prior written approval by HUD.

9\. Applicant acknowledges that it has read the foregoing

conditions and agrees to fully abide by such. This \_\_\_\_\_\_ day of

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 19\_\_.

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

Applicant

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

Title

SECRETARY OF HOUSING AND URBAN

DEVELOPMENT acting by and through

the ASSISTANT SECRETARY FOR

COMMUNITY PLANNING AND DEVELOPMENT

By:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Authorized Agent

2

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

Attachment 5

Page 1 of 2

MODEL SUBLEASE FOR USE BY LESSORS OF HUD ACQUIRED SINGLE FAMILY
PROPERTIES

FOR USE BY THE HOMELESS

This lease is made on
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
19\_\_\_, between

Name of Organization , AGENCY, and
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, OCCUPANT.

1\. AGENCY agrees to sublease to the OCCUPANT and the OCCUPANT agrees to

rent the property known as
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,

referred to hereafter as \"the property.\" The property is owned by the

Department of Housing and Urban Development (\"HUD\") and is leased to
AGENCY

by HUD.

2\. OCCUPANT agrees to pay AGENCY rent in the amount of \$\_\_\_\_\_\_
per month.

AGENCY agrees to charge a rental payment in accordance with the

restrictions set forth in the Lease entered into between AGENCY and HUD.

3\. OCCUPANT shall use the property only for the purposes of temporary

shelter for himself/herself and authorized family members.

4\. OCCUPANT\'S tenancy is solely on a month-to-month basis, as provided

under the laws of this State and shall be limited to no longer than two

years.

5\. OCCUPANT agrees to keep the property in a clean and sanitary
condition

and to comply with all Federal, state and local laws and regulations,
codes

and ordinances, restrictive covenants, condominium declarations and
by-laws

and homeowners association rules.

6\. OCCUPANT agrees to report in a timely manner any and all emergencies

and needed repairs regarding the property to the AGENCY. No alternation,

addition, or improvements shall be made to the property without the
consent

of the AGENCY and HUD in writing, and all additions and improvements
made

by the OCCUPANT shall belong to HUD.

7\. The AGENCY agrees to maintain the property according to local code

requirements.

8\. OCCUPANT agrees to maintain the property free from the illegal use,

possession or distribution of illegal drugs or alcohol. Evidence of

illegal use, possession, or distribution of drugs or alcohol shall
result

in immediate eviction of OCCUPANT by the AGENCY.

9\. OCCUPANT agrees that the AGENCY and representatives of HUD shall
have

the right to enter the property at all reasonable hours for the purpose
of

inspecting the condition of the property.

10/91

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

ATTACHMENT 5

Page 2 of 2

10\. OCCUPANT shall not assign, sublet, or part with the possession of
the

whole of any part of the property. OCCUPANT may terminate the lease at
any

time without penalty upon 30-day written notice to AGENCY.

11\. OCCUPANT agrees that if it should fail to comply with any
provisions

of this lease, it shall be lawful for the AGENCY, at its option, to

re-enter and take possession upon 30-day written notice to OCCUPANT, and

thereupon this lease shall terminate. OCCUPANT also agrees tenancy is

subject to the continuation of AGENCY\'s lease with HUD, and will be

terminated in accordance with the requirements of state law upon any

termination of AGENCY\'s lease, either at the initiation of the AGENCY,

the end of the term of AGENCY\'s lease with HUD, or by HUD upon failure
of

AGENCY to abide by the terms of the lease.

12\. All goods and chattels placed or stored in or about the property
are

at the risk of the OCCUPANT.

This lease contains the entire agreement between the parties, and

neither party is bound by an representations or agreements of any kind

except as herein contained.

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

AGENCY

WITNESS:

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

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

OCCUPANT

10/91

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

ATTACHMENT 6

EXAMPLE - PREPARE LOCALLY

LEASE RENEWAL

This lease renewal is made on \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
19\_\_,

between the U.S. Department of Housing and Urban Development,

LESSOR, and
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
LESSEE.

1\. LESSOR agrees to a one-year renewal of the lease for the

property known as
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

2\. The term of the lease shall be for a period of one year,

beginning on \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ , 19
\_\_\_, at a rent of

\$1 per year.

Secretary of Housing and Urban

Development

LESSOR

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

BY:

(Local) Regional/Field Office

DATE: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 19\_\_\_\_\_

WITNESS:

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

BY: (Name)

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

(Title)

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

(Lessee organization)

10/91

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

ATTACHMENT 7

Page 1 of 2

SUGGESTED INSPECTION CHECK LIST-PROPERTY LEASED FOR HOMELESS USE

1\. Property Address:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

2\. Name and Address of Lessee:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

3\. Name of Inspector:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Date of
Inspection:\_\_/\_\_/\_\_

GENERAL

4\. Is the property occupied? Y/N Remarks:

5\. Are there any apparent code

violations? Y/N Remarks:

6\. Is the property clean and sanitary? Y/N Remarks:

7\. Is the property free of defective

paint surfaces? Y/N Remarks:

8\. Are there any unsafe conditions

present? Y/N Remarks:

9\. Has the property deteriorated since

the last inspection? Y/N Remarks:

EXTERIOR

10\. Is the lawn cut/snow shovelled? Y/N Remarks:

11\. Is the yard free of debris? Y/N Remarks:

12\. Are the windows intact? Y/N Remarks:

13\. Do the front, back, and/or side

doors shut and lock properly? Y/N Remarks:

14\. Does the roof look okay? Y/N Remarks:

15\. Are rain gutters clear of debris? Y/N Remarks:

16\. Are the porch and garage structures

safe and secure? Y/N Remarks:

17\. Is the siding in good condition? Y/N Remarks:

18\. Is there evidence of structural

problems? Y/N Remarks:

19\. Is the property\'s general exterior

appearance good? Y/N Remarks:

20\. Other Remarks:

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

ATTACHMENT 7

Page 2 of 2

INTERIOR

21\. Is there evidence of roof leaks

or damage caused by leakage? Y/N Remarks:

22\. Are the floors in good condition? Y/N Remarks:

23\. Is there any evidence of structural

damage? Y/N Remarks:

24\. Do the stove, refrigerator, and/or

any other such appliances function

properly? Y/N Remarks:

25\. Is there a smoke detector? Y/N Remarks:

26\. Is the heating/cooling system in

working condition? Y/N Remarks:

27\. Is plumbing in working condition? Y/N Remarks:

28\. Is the electrical system in

working condition? Y/N Remarks:

29\. Do the light fixtures work? Y/N Remarks:

30\. Do the windows open and shut? Y/N Remarks:

31\. Are the walls in good condition? Y/N Remarks:

32\. Are the stairs and banisters safe

and secure? Y/N Remarks:

33\. Is the property\'s general interior

appearance good? Y/N Remarks:

34\. Other Remarks:

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

Signature of Inspector Title of Inspector

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

ATTACHMENT 8

Page 1 of 16

PROCEDURES FOR ESTABLISHING BLANKET PURCHASE AGREEMENTS (BPA)

1\. BPA shall be established following the requirements of FAR 13.2.

2\. Estimate usage and government cost estimate - if total amount
exceeds

\$10,000 must advertise in the Commerce Business Daily.

3\. Prepare statement of work to be included in BPA. See

FAR 13.203 (1)(j) and 13.203-2, and attached sample.

4\. Synopsize in CBD (FAR Part 5) and place ads in local large volume

newspaper (preferable the newspaper used for listings) and in a

minority newspaper, if available. Request all interested firms

and individual to complete SF-129, Bidders Mailing List Application.

5\. Conduct briefing and training session for all interested firms and

individuals. The BPA statement of work, terms and conditions and,

the purchase order may be issued after training.

6\. Establish BPA with all interested sources. No less than three

sources, but preferably more than three, should be established.

Because of the nature of the work involved and the ceiling on price,

we do not anticipate that contractors will be required to have

specific, detailed qualifications. With proper briefing and training

by the Field Office, individuals or firms with limited or no

inspection or related experience, generally should be eligible for

inclusion to the list of sources. However, offices may elect to

develop reasonable qualification requirements in cases where they

feel it is necessary to obtain the caliber of contractor to suit

their individual needs.

Use purchase order as contract document with the BPA statement of work

and the terms and conditions attached.

Each purchase order shall have its own consecutive P.O. number

followed by (B #\_\_\_\_\_). Each source under a particular BPA will

have the same number \"B\" number. BPA numbers shall be assigned

sequentially.

For example: Three sources under a BPA for performing AMB inspection

services: P.O. number for Area A P.O. number from Area B

\(1\) 86-321B#1 to Nuggett Oats (1) 86-324B#2 to Tom Brown

\(2\) 86-322B#1 to Amy Hay (2) 86-325B#2 to Sam Ward

\(3\) 86-323B#1 to Christy Don (3) 86-326B#2 to Jack Caul

7\. BPAs may be established for the entire field office jurisdiction, by

AMB area, or by a combination of AMB areas.

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

ATTACHMENT 8

Page 2 of 16

8\. PRICE COMPETITION MUST BE OBTAINED between these sources at the time

the order is placed. See FAR Part 13.204 which requires competition

to the maximum praticable extent. FAR 13.106 (b)(5) states that

\"solicitation of a least three sources may be considered to promote

competition to the maximum praticable extent.\" Must comply with FAR

Subpart 13.106.

Requests for quotes (RFQ) shall be rotated among all sources with

BPA\'s.

For example: Telephone quotes must be obtained from at least three

sources. These source shall be in the order of listing from the BPA

source list. This procedure will be followed on a rotational basis

for each work order. A contractor is not required to give the same

quote each time he is called. Therefore, contractor Nuggett Oats

may bid \$10 per property now and \$5.00 per property when his name

comes up again in the rotation.

Consideration as to existing workload must be given prior to

soliciting quotes. Although quotes and subsequent work orders for

monitoring services may be, for one property, this should only be done

when the volume of work is so limited as to prevent grouping of

properties from being included in a work order. Rather, to the extend

practical offices should include groups of properties under each work

order.

Offices shall establish reasonable completion dates for inspections to

suit their individual needs. Consideration must be given to the

number of inspections involved in the work order and other factors

such as travel and accessibility of properties, etc. Completion dates

may vary from work order to work order. The date for completion shall

be identified on the work order.

Care should be taken to assure the BPA contractor understands that the

RFQ is not authorization to perform work.

A work order will be placed with the lowest priced offeror.

Ordering official must assign a work order number and give number to

the contractor at the time of authorizing performance. Verbal

authorization must be confirmed in writing. (see work order format.)

9\. Each work order under the BPA cannot exceed \$500 except as approved

by the Contracting Officer, but in no event shall a work order exceed

the small purchase ceiling (\$25,000).

10\. Orders may be placed orally. A work order file shall be maintained

to assure follow-up on required work and receipt of inspection

documentation and to document proper billings from BPA contractors.

As a minimum the order file shall contain:

a\. a work order number (a sequential number followed by the ordering

official\'s initials.) \*

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

ATTACHMENT 8

Page 3 of 16

b\. address(es) of property(ies)

c\. kind of inspection service

(winterizing, mowing, trash removal, etc)

d\. date of work order

e\. price (specify per property or for all properties listed)

f\. contractor\'s name

g\. written notations of competition obtained

h\. reasons for selection of one vendor over another

\* when payment has been approved, check off the order number, to

assure no double billings are approved.

11\. Billings for services shall be in accordance with the BPA agreement

and at the price agreed to at the time of the order. Vouchers shall

be submitted by the 10th of the month covering all work ordered and

completed during the preceding month. This should be cross checked

against the AMB\'s accounting report.

12\. New firms may be added to existing sources at any time.

13\. Removal of sources from BPA agreement.

The firm may request to be removed at any time.

If the local office desires to remove a firm because of failure to

respond to a request for quotes see FAR 14.205.2.

If the local office desires to remove a firm because of poor

performance see 13.504.

14\. While the term of the agreement may extend to five years, care must

be taken to assure that sources are active and competitive and new

sources are solicited at least semi-annually.

See FAR 13.205 which requires a semi-annual review of BPA files.

15\. The office shall establish a system which assures regular
inspection

of AMBs services. Such inspections shall be done in accordance with

present requirements of PD Handbook 4310.5, paragraph 80.

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

ATTACHMENT 8

Page 4 of 16

16\. The office shall also establish a system which assures periodic,

spot checks on the contractor\'s performance.

17\. Note: the work order limitation is \$500.

18\. This procurement shall be reserved as a small business-small
purchase

set aside. This is accomplished by marking the appropriate block on

the last sheet of the 2542 and specifying this set aside in all

advertising. This limits participation to small business concerns.

19\. Form 2542 will be used as the obligating document but will not be

used to effect payment. Cross off items 24, 25 and 26. Use SF-1034

for payment processing. See attached sample.

20\. Contractor will not be requested to perform inspection services
which

will require extensive technical experience or licensing, such as

bookkeeping or appraisal work.

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

ATTACHMENT 8

4.6 Page 5 of 16

UNIT 4: CONTRACTING FOR SMALL PURCHASES (UNDER \$25,000)

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

STEP 2 DETERMINING IF BLANKET PURCHASE AGREEMENTS SHOULD

BE USED

Definition As mentioned in Unit 3, a blanket purchase agreement

Of Blanket (BPA) is a simplified method of filling anticipated

Purchase repetitive needs for supplies or services by

Agreement establishing \"charge accounts\" with qualified sources

of supplies. BPA\'s are designed to reduce

administrative costs in accomplishing small purchases

by eliminating the need for issuing individual

purchase documents.

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

When To Use Blanket purchase agreements are advantageous when a

Blanket wide range of items in a broad class of goods (e.g.,

Purchase hardware) is generally purchased but the exact items,

Agreements quantities, and delivery requirements are not known in

advance and may vary considerably. In addition, the

writing of numerous purchase orders can be avoided

through the use of this procedure.

Note: The blanket purchase agreement shall not be used

to avoid the small purchase limitation, and individual

purchases shall not exceed the dollar limitation for

small purchases. (FAR 13.204)

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

How To A BPA may be established without a purchase order or a

Establish commitment of funds. BPA\'s should be made with firms

Blanket from which numerous individual purchases will likely be

Purchase made in a given period. When possible, BPA\'s for

Agreements similar items should be placed concurrently with more

than one supplier, to give competitive sources equal

opportunity to furnish supplies or services.

For example, if past experience has shown that certain

firms are dependable and consistently lower in price

than other competing firms, and if numerous shall

purchases are usually made from such suppliers, then

it would probably be advantageous to establish BPA\'s

with those firms.

A BPA may be limited to furnishing individual items, or

it may be unlimited for all items or services that the

supply source can furnish.

When a Contracting Officer determines that BPA\'s would

be advantageous, then the next step is to contact

suppliers to arrange for securing maximum discounts,

documenting the individual purchase transactions,

periodic billing, and other necessary details. Then

finally the Contracting Officer may prepare and issue

the BPA\'s on a purchase order form (Form HUD-2542).

Table 4.1 presents the terms and conditions to include

in a BPA.

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

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

ATTACHMENT 8

Page 6 of 16

4.7

UNIT 4: CONTRACTING FOR SMALL PURCHASES (UNDER \$25,000)

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

Documentation Documentation of purchases under BPA\'s shall be limited

Of Purchases to essential information and forms (FAR 13.204) as

follows:

o BPA purchases are generally made orally, but a

purchasing document may be issued if necessary to

ensure that the vendor and the purchaser agree on

the transaction.

o If a purchase document is not issued, the

essential elements (e.g., date, vendor, items or

services, price, delivery date) shall be recorded

on the purchase requisition, in a memo, or on a

form developed locally for that purpose.

o Informal correspondence, an authorized purchase

form, or a form developed locally for the purpose

can be used as purchase documents.

o Documentation shall cite the pertinent purchase

requisitions and the accounting and appropriation

data.

o Vendor sales documents, delivery documents,

invoices, or authorized HUD forms may be used to

record receipt and acceptance of goods or

services.

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

Competition The existence of a BPA does not justify purchasing from

And Blanket only one source or avoiding small business-small

Purchase purchase set-asides. If there is an insufficient

Agreements number of BPA\'s to ensure maximum competition for a

particular purpose, then the Contracting Officer should

solicit quotations from other sources and make the

purchase as appropriate. In addition, it may be

prudent to establish other BPA\'s to facilitate future

purchases if it is practical and possible to do so.

(FAR 13.204 (c) and (d))

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

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

ATTACHMENT 8

Page 7 of 16

4.8

UNIT 4: CONTRACTING FOR SMALL PURCHASES (UNDER \$25,000)

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

Table 4.1

CONTENTS OF BLANKET PURCHASE AGREEMENTS

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

ITEM DESCRIPTION

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

Description of agreement o A statement that the supplier will

(FAR 13.203-1(j)(1)) furnish goods or services, described

generally, when requested by the

Contracting Officer (or authorized

representative) during a specified

and within stipulated aggregate

amount (if any).

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

Extent of obligation o A statement that HUD is obligated

(FAR 13.203-1(j)(2)) only to the extent of authorized

purchases actually made under the

BPA.

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

Pricing o A statement that the prices to HUD

(FAR 13.203-1(j)(3)) shall be a low or lower than those

charged to the supplier\'s most

favored customer for comparable

quantities under similar terms and

conditions.

o A statement describing any discounts

for prompt payment.

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

Purchase limitation o A statement specifying the dollar

(FAR 13.203-1(j)(4)) limitation for individual purchases

under the BPA, which shall not exceed

the dollar limitation for small

purchases.

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

Delivery tickets o A requirement that all shipments

(FAR 13.203-1(j)(6)) under the BPA be accompanied by

delivery tickets or sales slips

that contain: name of supplier; BPA

number; purchase date; purchase

number; itemized list of goods or

services furnished; quantity, unit

price and extension of each item,

less any discounts and date of

delivery, shipment, or performance.

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Continued . . .

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ATTACHMENT 8

Page 8 of 16

4.9

UNIT 4: CONTRACTING FOR SMALL PURCHASES (UNDER \$25,000)

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Table 4.1

CONTENTS OF BLANKET PURCHASE AGREEMENTS

(Continued)

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ITEM DESCRIPTION

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Notice of individuals o A statement that a list of individual

authorized to purchase under names authorized to purchase under

the BPA and dollar limitations the BPA, and the dollar limitation

(FAR 13.203-1(j)(5)) per purchase for each individual,

will be furnished to the supplier by

the Contracting Officer.

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Invoices o A statement detailing what must be

(FAR 13.203-1(j)(7)) included in invoices

(see FAR 13.203-1(j)(7)).

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Clauses o All clauses prescribed in FAR that

(FAR 13.203-2; 13.203-1(k)) are required for or applicable to

the particular BPA.

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Note: Contracting Officers are not required to cite accounting and

appropriation data in BPA\'s, although this information should be

included in documentation of purchases under BPA\'s. (FAR 13.203-1(c))

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ATTACHMENT 8

Page 9 of 16

4.10

UNIT 4: CONTRACTING FOR SMALL PURCHASES (UNDER \$25,000)

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Review Of To make sure that authorized procedures are being

Blanket followed, the Contracting Officer shall:

Purchase

Agreements o Ensure that each BPA is reviewed at least

annually, and updated at that time if

necessary.

o Maintain awareness of changes in market

conditions, sources of supply, and other

factors that may warrant making new BPA\'s

or modifying existing BPA\'s.

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Completion An individual BPA is considered complete when the

Of Blanket purchases under it equal its total dollar

Purchase limitation (if any), or when its stated time

Agreements period expires.

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ATTACHMENT 8

Page 10 of 16

TERMS AND CONDITIONS

REQUESTS FOR QUOTES

Requests for quotes and subsequent work orders for monitoring services

generally will be for a number of properties and a number of monitoring

activities. However, there may be occasions when as few as one property

may be assigned to a work order.

Requests for quotes will be made orally. All such requests will be

rotated among all BPA recipients.

TIME FOR PERFORMANCE

To be established by HUD

OBLIGATION

HUD is obligated under this agreement only to the extent of authorized

work orders actually placed against this agreement.

PRICING

The prices to HUD for all purchases made under this agreement

shall be as low as, or lower than, those charged the supplier\'s most

favored customer, in addition to any discounts for prompt payment.

INDIVIDUALS AUTHORIZED TO PLACE WORK ORDERS

Service\'s to be furnished under this agreement shall be ordered orally

by the Contracting Officer or the following individuals authorized to

place orders:

\(1\)

\(2\)

\(3\)

\(4\)

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ATTACHMENT 8

Page 11 of 16

ORDERING

Work orders issued under this agreement will contain the following

information:

\(1\) Work order number

\(2\) Individual who issues order

\(3\) Property address and work requirement identification

\(4\) Price

\(5\) Purchase Order Number

Orders may be issued under this agreement from the effective date
specified

on the purchase order face sheet.

The ordering official will obtain competition orally, prior to

authorizing performance of work. Do not perform any work until notified

to do so and you have been provided with the work order number and other

items required above. Verbal acceptance of the work order by the

contractor creates a binding agreement to perform the services in

accordance with the terms of this BPA.

CONFLICT OF INTEREST

No work orders shall be assigned where the contractor is employed by,
has

previously been employed by, or has an interest in, a particular AMB.

INSPECTION DOCUMENTATION

The contractor shall complete Form HUD 9519A, in triplicate, for each

property inspected. A listing of the properties and the specific

activity(ies) inspected, if other than those specified on the 9519A,

shall be attached to the 9519A along with identification of any

deficiencies noted.

The original 9519A(s) shall be hand delivered or sent by first class
mail

to the ordering official upon completion of work, The original shall be

retained in the case file.

Copy 1 shall be retained to document the contractor\'s request for
monthly

payment.

Copy 2 shall be retained for the contractor\'s own records.

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ATTACHMENT 8

Page 12 of 16

PAYMENT

The Contractor shall submit monthly invoices with a properly completed

SF1034, Public Voucher for Purchases and Services Other Than Personal,

to the Contracting Officer. Invoices shall be submitted by the tenth of

the month covering all work ordered and completed during the preceding

month.

The invoice shall provide the following minimum information:

1\. Purchase order number

2\. Work order numbers and dates & ordering official

3\. Copies of form HUD 9519 & attachments shall be attached for each

work order

4\. Price for each work order and total price

5\. Voucher number & date

WORK ORDER LIMITATION

No work order placed under this agreement shall exceed \$500, unless

otherwise approved by the Contracting Officer, in no event shall any
work

order exceed the small purchase ceiling (\$25,000).

TERM OF CONTRACT

This BPA shall commence on the date specified on the purchase order form

and shall continue for a term of five years. However, either party
hereto

may elect to terminate this contract by giving no less than thirty
calendar

days advance written notice, to the other party of the intent to
terminate.

Notice to either party shall be by certified mail and said thirty days

shall be computed from the date of mailing of such notice.

TERMINATION RIGHTS

In the event this agreement is terminated for any reason, HUD shall be

liable for payment in accordance with the payment provisions of this

BPA, and only for services ordered by an authorized representative, and

acceptably performed prior to the effective date of termination.

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ATTACHMENT 8

Page 13 of 16

BLANKET PURCHASE AGREEMENT

STATEMENT OF WORK

The Department of Housing and Urban Development contracts with Area

Management Broker\'s (AMBs) to arrange for and supervise the management,

operation, repair, maintenance and rental of acquired residential

properties within specified geographic areas. From time to time

contractors may be requested to perform certain, specified inspection

services of an AMBs performance. The following are examples of the kinds

of activities which the contractor may be required to inspect. These

examples are not inclusive, ordering officials may request a contractor

to perform inspection services for AMB activities not set forth herein.

AMB ACTIVITIES SUBJECT TO INSPECTION

1\. Winterizing of all operating system and equipment.

2\. Removal from the premises of all trash and debris, interior and

exterior.

3\. Reporting any health or public safety hazards.

4\. Securing the properties against unauthorized entry and damage by

the elements.

5\. Mowing of the grass and trimming the shrubbery.

6\. Continuing maintenance and repair service.

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ATTACHMENT 8

Page 14 of 16

WORK ORDER

THIS WORK ORDER INCORPORATES THE PROVISIONS OF THE BLANKET PURCHASE
ORDER

SET FORTH IN PURCHASE ORDER IDENTIFIED BELOW.

Purchase Order
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Work order
#\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date of work order
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Signature of order official \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Price
\$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Completion Date
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Property
Address(es)\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

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AMB ACTIVITIES SUBJECT TO INSPECTION

(Circle only those activities to be inspected for the designated

property(ies).

1\. Winterizing of all operating systems and equipment.

2\. Removal from the premises of all trash and debris, interior and

exterior.

3\. Reporting any health or public safety hazards.

4\. Securing the properties against unauthorized entry and damage by

the elements.

5\. Mowing the grass and trimming the shrubbery.

6\. Continuing maintenance and repair services.

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ATTACHMENT 8

Page 15 of 16

COVER LETTER

The Department of Housing and Urban Development intends to enter into a

blanket purchase agreement for purposes of obtaining inspection services

to review AMB performance.

A blanket purchase agreement is a simplified method of filling
anticipated

repetitive needs for such services by establishing \"charge accounts\"

with qualified sources. At the time HUD incurs a need for these services

HUD officials will obtain competition from the established BPA sources.

Attached is the sample BPA agreement we intend to establish with a
number

of sources in the jurisdiction of the
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HUD Area Office.

If you are interested in performing such services and are willing to
enter

into a blanket purchase agreement (BPA) you should attend the briefing
and

training session which will be held:

(time, date, and place)

Questions should be directed to:

If you are interested in performing such services but unable to attend

the scheduled conference please notify:

Thank you for interest in the Property Disposition Program.

Contracting Officer

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ATTACHMENT 8

Page 16 of 16

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Purchase Order

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