**ATTACHMENT I**

LIST OF ELIGIBLE/INELIGIBLE IMPROVEMENTS

Section 201.20 (b)(2) of the Title I regulations state that the proceeds
from a property improvement loan shall be used only to finance
renovations that substantially protect or improve the basic livability
and utility of the property. This list may be amended by Notice in
future Title I Letters. If a lender questions the eligibility of any
item or activity, it shall request a specific ruling by the Secretary
before making a loan.

[ELIGIBLE IMPROVEMENTS]{.underline}

Abutments

Acoustical tile

Additions to structures

Air conditioning (central)

Alteration

Aluminum panels

Apartments, cooperatives Interior improvements only

and condominiums

Asphalt siding

Attic fans

Auditoriums

Awnings; aluminum, canvas, plastic, wood

Back bars

Barns

Basements

Bathrooms; Fixtures & connections

Bathtubs; enclosures

Bins; coal, grain, concrete

Black topping Single family loans only

Blinds; Venetian, vertical

Blowers; furnace

Boathouses Not for common use

Boatslips Not for common use

Boilers

Bookcases (built-in)

Brick shingles or siding

Built-in kitchen equipment Hard wire - Hard plumb

Bulkheads Not for common use

Bunkhouses

Burglar alarms Hard wire

Burglar bars/decorative bars Permanent

Burners; furnace, oil, gas

Cabinets

Canopies

Carpet; wall-to-wall

Carports

Casements; window

Ceilings

Cellar, storm, wine

Cesspools

Chimneys

Choir lofts

Churches Structure only

Chutes; coal, grain, laundry

Cleaning, steam Before painting

Cold storage rooms

Coating; roofing

Commercial buildings

Composition; flooring paneling, shingles, siding

Condominium Single family - \$25,000 (inside of unit only)

check ownership of individual

unit plus ownership of portion

of common area

Multifamily - up to \$60,000

check ownership of entire

building

Converting; structural

Co-op, cooperative Inside improvements only

check for mutual ownership

contract or perpetual use

agreement - no lien can be

placed - maximum loan \$7,500

Cottages

Curbing Single family only

Decks, Gazebos Not for hot tub use or

around a swimming pool

Dishwasher Hard wire, hard plumb

Docks Not for common use

Door chimes Hard wire

Doors

1\. Storm

2\. Fire

3\. Screen

Downspouts

Drain fields - septic

Drilling; wells Must be a structure on

property and previously had

water supply

Drive-in Structure only, not trade

fixtures or equipment

Driveways, private (Not for multifamily properties)

Ducts

Duplex lot and both homes owned by same person = multifamily loan
limits, \$24,000

one individual owns house and lot - someone else owns the other house
and lot = single family loan limit, \$25,000

Electric Garage door opener Hard wire

Electric light fixtures, lines, poles

Electric light systems

Elevators

Escalators

Exhaust Fans

Exterior finishing work

Fans Permanently attached to

structure, non window

Fences Structure must be on property

1\. Chain link

2\. Brick

3\. Wood

4\. Iron

Finishing work

Fire escapes

Fireplaces (indoor)

Floodlight (non display)

Flooring

Flour mills, sheds

Flues

Foundations

Fronts, commercial buildings or residential structures

Furnaces; coal, floor, gas, oil

Garages

Garbage disposal units

Gas heating systems

Gazebo, on permanent foundation

Generators, permanently installed

Glass Tinting

Grates, furnace

Guard rails

Guttering

Heat control devices

Incinerators

Insulation

Interior work

Ironing Board, permanently installed

Jacuzzi, inside bathroom

Jalousies

Lattice work

Laundry chutes

Laundry tubs

Lightning rods

Meters, electric and water, gas (Replacement only)

Moulding

Painting

Paneling

Papering

Partitions

Patios

Paving

Piers Not for common use

Pillars

Plastering

Plumbing

Pole barns, permanent foundation

Porches

Pumps

Radiators, permanently installed (covers not eligible)

Railings

Registers, heat

Reservoirs (not for irrigation)

Resurfacing

Retaining walls

Roof coating

Roofing

Safes/vaults (permanently affixed)

Sandblasting

Sanding

Sashes

Screening

Seawalls (non floating) Not for common use

Security System, hardwired into electric system

Sewerage systems Septic tank - replacement of

existing

Shingles

Shower doors

Shutters

Sidewalks (private)

Siding Cement, ceramic tile, brick, wood, aluminum

Sills

Silo

Sinks

Slating

Smokestack

Solar Room Sunspace/solarium Permanently installed for use as a sun
room, family room

Solar water heating systems

Spa Permanently installed inside

the structure

Sprinkler systems, fire

Stairs

Stalls

Steam Cleaning

Steeples

Stokers

Stone Siding

Storm cellars

Storm panels

Stuccoing

Studding

Structural changes

Tanks

1\. Fuel (residential property only, not commercial)

2\. Milk

3\. Septic

4\. Storage

5\. Water

Tiles

1\. Ceiling

2\. Ceramic

3\. Cement

4\. Floor (permanently affixed)

5\. Plastic

6\. Acoustical

Termite control, with replacement of damage

Trees diseased or damaged and hazard

to structure on property

Trestles

Troughs

Utility Building (sheds) Permanent masonry /concrete

foundation

Vaults

Venetian/Mini blinds

Ventilation hoods

Ventilation systems

Vents

Verandas

Wall heaters

Wallboards

Walls

Warehouses

Washtubs

Water Conditioners Permanently installed in

plumbing system

1\. Purifiers

2\. Softeners

3\. Sterilizers

Water coolers Permanent

Water heaters

Water systems

Water tower

Water wells, must have structure on property & previously had

water supply

Waterproofing

Weatherstripping

Wells Together with pumping and piping equipment

Windmills Eligible only for furnishing power to residential structure

Windows

1\. Screen

2\. Storm

3\. Thermal

Wiring; electric

Wood shingles

1\. Siding

2\. Paneling

[ELIGIBLE NEW STRUCTURES]{.underline}

Animal houses

Auditoriums

Canneries

Churches Structure only

Required interest in the

property must be met -

Structure must be completed

with a distinctive function to

be eligible for financing.

The note must be signed by the

duly authorized officers of

the church and a copy of the

resolution granting such

authority should be included

in the loan file. It is

advisable to also obtain the

signature of the officers as

individuals as well as in the

official capacities.

Creameries

Feed mills

Feed sheds Permanently installed

Flour mills

Foundries

Fodder sheds/bins

Garages

Granaries

Greenhouses Farm related

Gymnasium

Hatcheries

Icehouses

Implement sheds Permanently installed

Industrial buildings Structure only

Locker plants

Manufacturing buildings Structure only

Meeting halls

Milkhouse

Office buildings Structure only

Service buildings

Silos

Smokehouse

Stables

Steel buildings Permanent foundation

Schools

Storehouse

Warehouse

**[INELIGIBLE IMPROVEMENTS]{.underline}**

Under 201.20 (b)(2), the Secretary finds that the following categories
of products and improvements may [not]{.underline} be financed with a
Title I property improvement loan. These ineligible improvements fall
under two categories:

1\. Products or improvements that do not become a

permanent part of the real property.

2\. Products or improvements that are considered luxury

items.

Air conditioner Placed in a window, and not

permanently affixed to the

property.

Asbestos siding

Barbecue pits

Barn cleaners

Bath houses

Cabana room

Clothes lines and poles

Debt Consolidation

Deck around Swimming Pool

Demolition Structure must be replaced at

the same time.

Dishwashers (portable) Must be part of the sink

Docks, floating

Drills, Equipment type

Dumbwaiters

Equipment Used commercially or industrially; farm or dairy

Exterior hot tubs,

saunas, spas, or whirpools baths

Fire extinguishers

Flower boxes

Food mixers

Freezer Only built-in freezers are

eligible

Kitchen appliances Designed or manufactured not

to be built into or

permanently affixed to the

structure.

Grandstands

Greenhouses Except commercial

Hangars Airplane

Hay dryers

Irrigations systems

Kennels

Landscaping

Lathes

Moving Structures Eligible if move is on the

same lot.

Orchards

Outdoor fireplaces

Ovens Must be built in.

Penthouses Must be an existing penthouse

for improvements to be eligible.

Photomurals

Satellite dishes

Swimming Pools

Swimming Pool enclosures

Tree Surgery/Removal Eligible if tree is diseased and hazard to
structure.

Television Antennae

Valance boards

Waterproofing Pumping or injecting any substance in the earth

adjacent to or beneath the

foundation or basement floor.