U.S. Department of Housing and Urban Development

Community Planning and Development

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Special Attention of: Transmittal Handbook No.:7375.01 REV-2

Regional Administrators

Regional Housing Commissioners Issued: December 1986

Field Office Managers

Directors, Office of CPD

Directors, CPD Division

Section 312 Local Processing Agencies

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1\. This Transmits HUD Handbook 7375.01, REV-2 Section 312
Rehabilitation

Loan Program Handbook.

2\. This Handbook is a complete revision of the Section 312 Program\'s

operating procedures and requirements. The effective dates for the

various provisions in the Handbook are for Chapters 1-8: August 20,

1986 and for Chapters 9-12: December 1, 1986. These dates apply to

the date of the borrower\'s loan application. Therefore, loans based

on applications dated August 20, 1986 and later must meet all

requirements in Chapters 1-8; and loans based on applications dated

after December 1, 1986 must, in addition, meet the provisions of

Chapters 9-12.

3\. Filing instructions:

Remove:

Handbook 7375.01 REV dated 2/28/74 and all changes

Insert

Handbook 7375.01 REV-2 dated 12/86.

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U.S. Department of Housing and Urban Development

Community Planning and Development

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Special Attention of: Transmittal Handbook No.: 7375.01

Regional Administrators : REV-2, CHG 3

Regional Housing Commissioners Issued: 3/90

Field Office Managers

Directors, Office of CPD

Directors, CPD Division

Section 312 Local Processing Agencies

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1\. This Transmits:

Change 3 to the Section 312 Rehabilitation Loan Program Handbook

7375.01, REV-2.

2\. Explanation of Material Transmitted:

This change:

a\. Updates audit requirements that affect contractors and Local

Processing Agencies that administer the Section 312 program.

The effective date for these requirements is the date of this

issuance.

Changes to incorporate these requirements were made in the Table

of Contents, List of Exhibits, Chapters 6 and 13, and Exhibit

13\. An asterisk indicates the beginning and ending of a change

in material.

b\. Makes format changes in Chapters 12 and 14, and Exhibit 9. No

editorial changes were made.

3\. Filing Instructions:

Remove Insert

Table of Contents Table of Contents

dated 10/87 dated 3/90

List of Exhibits List of Exhibits

dated 10/28/86 dated 3/90

Page 6-15 dated 10/28/86 Pages 6-15 thru 6-18

Pages 6-16 thru 6-18 dated 3/90

dated 8/13/86

Page 12-23 dated 10/87 Pages 12-23 thru 12-28

Pages 12-24 thru 12-28 dated 3/90

dated 3/31/89

Pages 13-7 thru 13-10 Pages 13-7 thru 13-9

dated 3/31/89 dated 3/90

Page 14-11 dated 3/31/89 Page 14-11 dated 3/90

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CCRP : Distribution : W-3-1, W-1, W-2 (ADM and CPD), R-1, R-2, R-3-1,

R-6, R-6-2, Special (CPD Field Directors)

HUD-23 (9-81)

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2

3\. Filing Instructions (con\'t.):

Remove Insert

Exhibit 9-11 (pages 7 Exhibit 9-11 (pages 7

and 8) dated 3/31/89 and 8) dated 3/90

Exhibit 13 dated 9/12/89 Exhibit 13 dated 3/90

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U.S. Department of Housing and Urban Development

COMMUNITY PLANNING AND DEVELOPMENT

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Special Attention of: Transmittal Handbook No.: 7375.01

Regional Administrators : REV-2, CHG-2

Regional Housing Commissioners Issued: March 31, 1989

Field Office Managers

Directors, Office of CPD

Directors, CPD Division

Section 312 Local Processing Agencies

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1\. This Transmits

Chapters 13 and 14, a Revised Section 12-15 \"Conflict of Interest\"

and an amendment to Exhibit 9-11 of the Section 312 Rehabilitation

Loan Program Handbook (No. 7375.01 Rev-2).

2\. Explanation of Material Transmitted:

Chapters 13 and 14 are the final two chapters of a complete

revision of the Section 312 Program\'s operating procedures and

requirements. In addition, Section 12-15, \"Conflict of Interest,\"

has been revised to conform more closely to the similar

requirements of the Rental Rehabilitation and Community

Development Block Grant Programs. As a conforming change, pages

11-13 of the Rehabilitation Loan Agreement, Exhibit 9-11, are

amended to reflect the new \"Conflict of Interest\" requirements of

Section 12-15 of this Handbook, and page 8 of Exhibit 9-11 is

amended to make a technical change related to Amortization

Effective Date extensions under Section 312 Promissory Notes.

The effective date for these provisions (except the new

Participation Agreement, Parts I and II), is the date of issuance.

The Participation Agreement must be executed in order for an LPA

to process or approve Section 312 loans after October 1, 1989.

Chapter 13, Local Processing Agency Administrative Requirements,

now establishes a written agreement between HUD and the Local

Processing Agency (LPA) which defines the LPA\'s rights and

responsibilities, roles and functions. It also contains a copy of

the agreement for reproduction and use by HUD Field Offices. The

agreement has a second part which grants loan approval authority

to selected LPAs.

Chapter 14, HUD Field Office Responsibilities, summarizes the HUD

Field Office staff responsibilities in administering the Section

312 Program. It also includes a brief discussion on program

monitoring, as well as a section on corrective and remedial

sanctions which can be imposed on LPAs failing to comply with

program requirements. Most of the Chapter refers to Chapter 6 of

the HUD Monitoring Handbook which gives detailed instructions and

guideforms for use in monitoring the Section 312 Program.

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CCRP : Distribution : W-3-1, W-1, W-2 (ADM and CPD), R-1, R-2, R-3-1,
R-6,

R-6-2, Special (CPD Field Directors)

HUD-23 (9-81)

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3\. Filing Instructions:

Remove Insert

Sections 12-14, 12-15 and 12-16, Sections 12-14, 12-15 and

pages 12-24 thru 12-27, 12-16, pages 12-24 thru

dated 10/87 12-28, dated 3/89

Chapters 13 and 14, dated

3/89

Exhibit 9-11, pages 8 and 11-13 Exhibit 9-11, pages 8 and

11-13, dated 3/89

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U.S. Department of Housing and Urban Development

Community Planning and Development

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Special Attention of: Transmittal Handbook No.7375.01 REV-2,

Regional Administrators-Regional CHG 1

Housing Commissioners Issued: 10/87

Field Office Managers

CPD Division Directors

Regional Directors For CPD

Section 312 Local Processing Agencies

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1\. This Transmits:

CHG 1 to the Section 312 Rehabilitation Loan Program Handbook 7375.01,

REV-2.

2\. Explanation of Material Transmitted:

This change updates references to the relocation requirements

governing the displacement of a person as a direct result of a

Section 312 Rehabilitation Loan Project.

3\. Filing instructions:

Remove Insert

Page 4, Table of Contents, Page 4, Table of Contents,

dated 12/86 dated 9/87

Pages, 12-23 through 12-28, Pages, 12-23 through 12-27,

dated 10/28/87 dated 9/87

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U.S. Department of Housing and Urban Development

Office of Community Planning and Development

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December 1986 Program Participants

and Departmental

Staff

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Section 312

Rehabilitation Loan

Financing

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