Public reporting burden for this collection of information is estimated
to average 10 hours per response, including the time for reviewing
instructions, searching existing data sources, gathering and maintaining
the data needed, and completing and reviewing the collection of
information. HUD may not collect this information, and you are not
required to complete this form, unless it displays a currently valid OMB
control number.

This information is required to as a supplement to the HUD-52860 for all
inventory removal actions that involve based on requirements of Section
32 of the United States Housing Act of 1937 as amended ("Act") and 24
CFR Part 906, HUD will use this information to determine whether, and
under what circumstances, to permit PHAs to remove from their
inventories all or a portion of a public housing development, as well as
to track removals for other record keeping requirements. Responses to
this collection of information are statutory and regulatory to obtain a
benefit. Please refer to the instructions for each section for
additional guidance on how to complete this application. HUD approval of
the proposed removal from inventory action in this application does not
constitute HUD approval for funding of the proposed action. All
capitalized terms not defined in this form have the meanings as defined
in the Act and HUD Regulations. The information requested does not lend
itself to confidentiality.

**A. General PHA Information and Description of Homeownership Program**

  ----------------- ------- ------- ------- --------- --------------------------------------------
  *Name of PHA:*                                      

  *Name of                                            
  Development:*                                       

  *HOPE VI Grant                                           
  No./Development                                     
  No.:*                                               

  *Contact Name at                                    
  PHA:*                                               

  *Contact Phone                                      
  No.:*                                               

  *Narrative                                Please    
  (Description of                           Attach.   
  Homeownership                                       
  Plan):*                                             
  ----------------- ------- ------- ------- --------- --------------------------------------------

## B. Property Description

  ------------------------- --------- ------------------------------------
  Existing ACC Units                  

  New ACC Units                       

  HA Acquired Non ACC units           

  Financing Assistance Only           

  **Total**                           

  Narrative (Description of Please    
  units that will be sold   Attach.   
  under Homeownership                 
  Plan):                              

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

**C. PHA and Purchase and Resale Entity (PRE) Performance in
Homeownership.**

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

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

**D. Repair or Rehabilitation**

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

**E. Purchaser Eligibility** and Selection (24 CFR 906.11)

+---------------------------------------------------+------------------+
| Minimum purchaser income amount and percentage of | \$               |
| AMI:                                              | [                |
|                                                   |    ]{.underline} |
|                                                   | =                |
|                                                   | [                |
|                                                   |   ]{.underline}% |
+---------------------------------------------------+------------------+
| Maximum purchaser income amount and percentage of | \$               |
| AMI:                                              | [                |
|                                                   |    ]{.underline} |
|                                                   | =                |
|                                                   | [                |
|                                                   |   ]{.underline}% |
+---------------------------------------------------+------------------+
| Minimum downpayment amount or percentage of       | \$               |
| purchase price from purchaser's own funds (\*must | [                |
| be at least 1%)                                   |    ]{.underline} |
|                                                   | or               |
|                                                   |                  |
|                                                   | [                |
|                                                   |   ]{.underline}% |
|                                                   | of sales price   |
+---------------------------------------------------+------------------+
| Describe process for purchaser eligibility.       |                  |
+---------------------------------------------------+------------------+
| *     *                                           |                  |
+---------------------------------------------------+------------------+
| Describe priorities for selection of purchasers   |                  |
| (e.g. residency).                                 |                  |
+---------------------------------------------------+------------------+
| *     *                                           |                  |
+---------------------------------------------------+------------------+
| Describe income tiering structure for eligible    |                  |
| program purchasers (if applicable). How many      |                  |
| homes will be set-aside for each tier?            |                  |
+---------------------------------------------------+------------------+
| *     *                                           |                  |
+---------------------------------------------------+------------------+
| Describe any additional requirements (including   |                  |
| housing quality standards and requirements for    |                  |
| soft second mortgage or acquisition sale          |                  |
| programs).                                        |                  |
+---------------------------------------------------+------------------+
| *     *                                           |                  |
+---------------------------------------------------+------------------+

**Does the plan allow for participation by families not currently
residing in public housing or receiving Housing Choice Voucher
assistance?** Yes No

(If yes, include an affirmative fair housing marketing strategy.
Specifically, this strategy should describe how the PHA (or PRE) will
inform non-public housing, income-eligible households of their
eligibility to apply, and make special outreach to solicit applications
from those in the housing market who are least likely to apply).

  -----------------------------------------------------------------------
  *     *

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

**F. Consultation with Residents and Purchasers**

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

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**G. Counseling**

Name of Counseling Agency and Description of the Agency's experience in
the community.

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

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

Describe the curriculum and scope of services for the agency under this
homeownership proposal.

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

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

Describe the PHA's strategy to assist prospective homebuyers in
accumulating their initial downpayment. Does the PHA's strategy include
a Family Self-Sufficiency (FSS) escrow account or an Individual
Development Account (IDA)?

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

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

Describe the PHA's strategy to ensure that all prospective homebuyers
have steady employment and adequate income to support homeownership
costs.

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

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

Describe the role of Housing Choice Vouchers in your homeownership
strategy, if applicable.

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

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

**H. Sale via Purchase and Resale Entity (PRE) (24 CFR 906.19)**

**Is a PRE to be used for the sale of units?** Yes No

Entity Name, PHA affiliation (if any)

  -----------------------------------------------------------------------
  *     *

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

**I. Non-purchasing Residents**

Is the PHA selling ACC Units? Yes No

Relocation Plan: Describe the planned relocation activities.

  -----------------------------------------------------------------------
  *     *

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

**J. Sale Proceeds**

After payment of all expenses, how will the sale proceeds be
distributed?

  -----------------------------------------------------------------------
  *     *

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

Complete the following table to indicate what fees (e.g., developer fee,
loan administration fees, counseling agency fees, etc.), if any, are to
be paid to the PHA or PHA affiliate.

  ---------------------------------------------------------- ------------
  Type of Fee/Description                                    Amount

                                                             \$      

                                                             \$      

                                                             \$      
  ---------------------------------------------------------- ------------

Expected sources of project income

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

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

**K. Records, Accounts, and Reports**

Description of the PHA's (and PRE's, if applicable) record-keeping,
accounting, and reporting procedures that will be used

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

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

**L. Timetable**

If a specific milestone does not apply to the proposed program please
check the box labeled N/A.

  ------------------------------------------------------- ---------------
  Activity                                                Date Range

  Resident meetings and other consultations N/A                

  When each source of funding will be secured N/A              

  Units to be acquired N/A                                     

  Units to be rehabilitated N/A                                

  Units to be sold N/A                                         

  Marketing and outreach process N/A                           

  Duration of counseling and training N/A                      
  ------------------------------------------------------- ---------------

**M. Description of the Deed or Title Restrictions.** Gains from
Appreciation

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

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

Recapture Provisions

  -------------------------------- --------------------------------------
  Year of Resale                   Rate of Forgiveness\*

                                        %

                                        %

                                        %

                                        %

                                        %

                                        %

                                        %

                                        %

                                        %
  -------------------------------- --------------------------------------

Anticipated Sales Price

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

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

Types and Amounts of Direct Financing Assistance to be provided

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

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

[52860-C Instructions:]{.underline}

All PHAs applying for Section 32 Homeownership are required to complete
this Term Sheet as part of its application to HUD. This Term Sheet is in
addition to the Inventory Removal Application (HUD-52860) and may
request some information that already exists in the Public and Indian
Housing Information Center (PIC). This Term Sheet will become part of
the hard paper file of a PHA's approved Homeownership Plan.

Section 32 regulations can be found at 24 CFR 906. For detailed
information on the Section 32 program and additional guidance for
completing this form, see the *Section 32 Desk Guide* found at
<http://www.hud.gov/offices/pih/centers/sac/homeownership/section32deskguide.pdf>

**[I. Components of the Homeownership Plan]{.smallcaps}**

All homeownership plans should include narrative and supporting
documentation detailing specific submission requirements. These
requirements include the following (24 CFR Part 906.39):

**A. General PHA Information and Description of Homeownership Program:**

*Purpose:* To inform HUD of the factual circumstances of the proposed
homeownership program.

*Instructions:* Provide a brief narrative that describes the goals and
objectives of the proposed homeownership program. Include the following
information:

\--The overall unit count broken down by unit type;

\--Method of sale (fee simple, condominium, Lease Purchase, etc.),
including the terms of the sale program.

\--The building type(s) (e.g., row, elevator, detached/semi-detached,
walk-up, etc.);

\--Sources of funding;

\--The names of the major partners; and

\--Any unusual features regarding the conveyance or property (e.g., land
swap, scattered site acquisition and development, etc.).

**B. Property Description**

*Purpose:* To provide HUD with factual information relative to the units
and property to be sold through the homeownership program.

*Instructions:* Complete the chart and provide a brief narrative with
appropriate supporting documentation (see Section II Supporting
Documentation) that describes in detail the property/properties to be
included in the program and the units that will be sold under the
program. **If selling existing ACC Units**, include the applicable
development number and street addresses, specific dwellings to be sold,
bedroom distribution by size and type broken down by project,
description of the current physical conditions for a building and its
fair market value, a description of physical assessment for the
buildings planned for homeownership conveyance. **If acquiring
housing,** include a description of the proposed general location of a
property or street addresses of properties to be acquired, a project
acquisition schedule, budget including sources of funds and acquisition,
relocation, and closing costs, (where sites are identified) appraisal
and environmental information, and bedroom distribution by size and type
broken down by project. **If offering financing assistance to
households**, include a description of the area in which the assistance
is proposed to be used (see Section C, Property description (1) of the
Desk Guide for an example), describe method(s) of financing to be used.

**C. PHA and PRE Performance in Homeownership.**

*Purpose:* To determine the capacity and capability of the PHA to
successfully implement a homeownership program.

*Instructions:* Include a narrative describing the PHA and its partners
past experience in carrying out homeownership programs for low-income
families. For PHA's that have not previously implemented a homeownership
program, describe the PHA's management experience with completing public
housing modernization and development projects.

**D. Repair or Rehabilitation**

*Purpose:* To inform HUD of any physical assessments and rehabilitation
projects a PHA has undertaken to comply with federal, state, or local
requirements

*Instructions:* If the PHA plans to sell existing public housing rental
units or acquire units that need repair, provide a narrative describing
the process of assessment/implementing repair, identification of code
violations or housing quality standard inadequacies and plans to address
each code violation or inadequacy, compliance with lead based paint
requirements, a cost estimate to rehabilitate buildings, obligation to
make the units 504 compliant, and projections of estimate of repair
costs in the next 7 years.

**E. Purchaser Eligibility and Selection (24 CFR 906.11 to 906.17)**

*Purpose:* To provide HUD with an understanding of the PHA's priorities
for project purchasers and restrictions on purchaser eligibility.

*Instructions:* Complete the following information on purchaser
requirements. Refer to the regulation and briefly identify descriptions
of the following homebuyer eligibility and selection requirements for
the homeownership program.

Purchaser Eligibility.

Order of preferences for potential homebuyers

Replacement/maintenance reserve requirement (if applicable)

Fair Housing Marketing Plan (if applicable)

Selection criteria

Documentation of outreach

Description of application process

List of documentation needed from applicants

Clearly defined application review criteria

Restrictions

Prior homeownership (if applicable)

Occupancy requirement (principal residence)

Employment/credit requirements (if applicable)

Other (PHA determined restrictions)

PHA certifies that the applicant's monthly payments for mortgage and
housing expenses (i.e. principal and interest, taxes, insurance,
maintenance, utilities, and other regularly recurring homeownership
costs (e.g. condominium fees)) do not exceed 35% of the applicant's
adjusted income plus any other subsidy used for monthly payments."

**F. Consultation with Residents and Purchasers**

*Purpose:* To inform HUD of compliance with the resident consultation
requirements of the PHA Plan.

*Instructions:* If the PHA intends to sell existing public housing,
provide a narrative description of input obtained during the resident
consultation process for planning, as well as a plan for consultation
with purchasers during the implementation stage.

**G. Counseling**

*Purpose:* To provide HUD with information regarding the homeownership
counseling program requirements and the PHA's counseling implementation
plan.

*Instructions:* Complete the following questions on the homeownership
counseling agency and program.

*Note:* The budget should include funds for the homeownership counseling
program.

**H. Sale via Purchase and Resale Entity (PRE) (24 CFR 906.19)**

*Purpose:* To inform HUD of the structure of any ownership and sale
partners the PHA will utilize.

*Instructions:* Please complete information about ownership as needed.

**Is a PRE to be used for the Sale of Units?** If yes, please provide
the firm's name and if it is affiliated with the HA (e.g. the PHA's
501(c)(3)) Note: Also see Section II (A) Addendum for the more detailed
submission requirement

**I. Non-purchasing Residents**

*Purpose:* To provide information relative to the handling of
displacement of residents that decline the right of first refusal for
sale of their unit.

*Instructions:* Please provide description of plan for working with
non-purchasing residents of Public Housing Units, including,
notification/counseling of rights, right of first refusal, and any
relocation assistance that must be provided pursuant to 24 CFR 906.24.

**J. Sale Proceeds**

*Purpose:* To determine if the PHA is in compliance with the guidelines
and restrictions on use of resale proceeds and fees to support the
provision of low income housing.

*Instructions:* Sales proceeds are defined as proceeds realized by the
owner entity/developer from the sale of homeownership units after the
payments of the construction loan(s), the developer fee, and all other
project costs have been satisfied. Answer the following questions in
narrative form for the proposed homeownership project. Please include
the goals, eligible uses, and method for recycling funds. All proceeds
must be used in accordance with the PHA's Annual Plan and for low-income
housing purposes. If the homeownership plan utilizes a PRE, the PHA may
opt to have the PRE return sale proceeds to the PHA or permit the PRE to
use them for low-income housing purposes.

**K. Records, Accounts, and Reports**

*Purpose:* To determine the PHA has policies for retaining documentation
of unit sales and compliance with program requirements.

*Instructions:* The plan must provide a description of the PHA's (and
PRE's, if applicable) record-keeping, accounting, and reporting
procedures that will be used. Please include a description of the
record-keeping procedures used by a PHA relative to administrative
records, records of the purchase, financial records, as well as, a plan
for an annual report on sales of public housing units in HUD/PIC and in
its PHA Plan.

**L. Timetable**

*Purpose:* To provide HUD with a timeframe for project performance,
progress and completion.

*Instructions:* Please fill in the date range of activities including
activities for the first unit sold up to and activities for the last
unit sold. For example, if the PHA is acquiring units, the first unit
will be acquired on 12/04 and the final unit will be acquired 12/05, the
range would be 12/04 through 12/05. If a specific milestone does not
apply to the proposed program please check the box labeled N/A.

**M. Description of the Deed or Title Restrictions**

Gains from Appreciation

*Purpose:* To determine if the PHA's provisions (where applicable)
adequately protect the PHA's investment in the homeownership project.

*Instructions:* If the PHA is writing down the cost of construction
(e.g., the construction cost exceeds the sale price/appraised value), it
must consider a provision in its homeownership project to recapture all,
some or none of the gains from appreciation. This provision limits the
amount the subsidized original purchasers can realize due to
appreciation of the property upon sale for a period of time, and is
generally recorded in a deed restriction. The PHA's recapture policy on
appreciation may range from no recapture to recapture of total
appreciation. This provision only applies to the sharing of sale
proceeds and does not address the recapture of financing that the PHA
may elect to provide directly to a purchaser. If applicable, describe
how the PHA will treat the gain upon resale that the subsidized buyer
can realize due to appreciation of property.

Recapture Provisions

*Purpose:* To determine if the proposed recapture provisions (where
applicable) are appropriate for the target purchasers, are coordinated
with direct financing terms of local partnering affordable homeownership
programs, and adequately protect the PHA's and purchasers' investments
in the homeownership project.

*Instructions:* The PHA must set a policy regarding recapture upon
resale of government-provided assistance and/or direct financing made to
the purchaser to the extent that there are net proceeds. This includes
the PHA downpayment, closing cost assistance, subordinate mortgage
financing, or below-market financing (e.g., sale of the unit for less
than appraised value of the home). However, this policy may range from
no recapture of assistance to full recapture of assistance. If
applicable, describe the terms of the direct financing to purchasers and
terms of recapture. Describe also the method of recapture (e.g., via a
promissory note). If the PHA chooses to forgive the direct financing
over time, fill out the table below as applicable. (Table may be
modified to reflect longer-term or shorter-term forgiveness schedule).

Direct Financing

If there is additional direct financing (e.g. secondary mortgages or
other loans) from participating local affordable homeownership program
partners or private lenders, briefly describe the source of these funds
and the terms of the direct financing and amount of direct financing per
purchaser. Include information on the subsidy limits of the financing,
if applicable. Describe how the PHA's direct financing terms coordinate
with the local program partners' financing terms.

**[II. Supporting Documentation]{.smallcaps}**

In accordance with 24 CFR Part 906.40, PHAs submitting a Section 32
Homeownership Plan must provide HUD the following supporting
documentation:

**A. PRE (Purchase and Resale Entity)**

If the PHA is utilizing a PRE, the plan should include the following:

Organizational documents of the PRE;

Regulatory and Operating Agreement between the PHA and PRE regarding the
provision of operating subsidy and operation of public housing units
prior to sale of the units to purchasers (Include a description
indicating how much operating and capital fun subsidy is lost due to
removal of these units from the PHA's inventory);

Management agreement and plan;

Financing documents (if any);

Operating pro forma describing use of operating subsidy during period of
PRE's ownership;

Mixed-finance ACC Amendment governing these units;

Deed restriction or covenant running with the land assuring that the PRE
will operate the units in accordance with public housing laws and
regulations including 906.19 of Section 32 regulations;

Bond for repairs or proof of insurance to cover any damage to the
property during the period of PRE ownership and operation; and

Any other materials required by HUD.

The PRE attachment must describe the PRE qualifications, marketing plan,
and a description of that entity's responsibilities as well as
information demonstrating that the written agreement between the PRE and
PHA contains or will contain the following: rights and responsibilities
of parties; assurances of compliance with program requirements;
assurances of deed restrictions on acquisition and resale of units;
description of how the net proceeds will be determined and used;
protections against fraud and misuse; limitations on overhead and
profit; record keeping/reporting requirements; assurances of
non-discrimination against eligible purchasers; adequate legal remedies;
assurances of sale only to low-income households; a five-year limit on
sale to eligible buyers; and the notification process to households
(relocation, environmental review).

**B. Feasibility Statement.** A feasibility tool consisting of a set of
spreadsheets is available on the SAC website. The HA must show there are
two eligible buyers for every unit the HA intends to sell. The method of
proof is at the HA's discretion. Please do not submit specific resident
information like names and Social Security numbers, which should be on
file in the HA's office, subject to review.

**C. Legal Opinion.** A letter from the HA's legal counsel certifying
that the closing documents support the narrative of the Deed and Title
restrictions, and that these restrictions are in compliance with local
and State law.