32198 Federal Register / Vol. 66, No. 114 / Wednesday, June 13, 2001 / Proposed Rules

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

24 CFR Part 982

[Docket No. FR–4670–P–01]

RIN 2577–AC28

Section 8 Homeownership Program;

Downpayment Assistance Grants and

Streamlining Amendments

AGENCY: Office of Assistant Secretary for

Public and Indian Housing, HUD.

ACTION: Proposed rule.

SUMMARY: This proposed rule would

implement section 301 of the American

Homeownership and Economic

Opportunity Act of 2000. Section 301

amends the statute authorizing the

‘‘homeownership option’’ under the

Housing Choice Voucher Program.

Under section 301, a Public Housing

Agency (PHA) may, in lieu of paying a

monthly homeownership assistance

payment on behalf of a family, provide

homeownership assistance for the

family in the form of a single grant to

be used toward the downpayment

required in connection with the

purchase of the home. Implementation

of these downpayment assistance grants

is anticipated for Federal Fiscal Year

2002. In addition to implementation of

section 301, this proposed rule also

would clarify and streamline several

regulatory requirements applicable to

both downpayment grants and monthly

homeownership assistance payments

provided under the homeownership

option.

DATES: Comments Due Date: August 13,

2001.

ADDRESSES: Interested persons are

invited to submit comments regarding

this proposed rule to the Rules Docket

Clerk, Office of General Counsel, Room

10276, Department of Housing and

Urban Development, 451 Seventh Street,

SW, Washington, DC 20410–0500.

Communications should refer to the

above docket number and title.

Facsimile (FAX) comments are not

acceptable. A copy of each

communication submitted will be

available for public inspection and

copying between 7:30 a.m. and 5:30

p.m. weekdays at the above address.

FOR FURTHER INFORMATION CONTACT:

Gerald J. Benoit, Office of Public and

Indian Housing, Department of Housing

and Urban Development, Room 4210,

451 Seventh Street, SW, Washington,

DC 20410; telephone (202) 708–0477.

(This is not a toll-free number.) Hearing

or speech-impaired individuals may

access this number via TTY by calling

the toll-free Federal Information Relay

Service at 1–800–877–8339.

SUPPLEMENTARY INFORMATION:

I. Background

On September 12, 2000 (65 FR 55134),

HUD published its final rule

implementing the ‘‘homeownership

option’’ under section 8(y) of the United

States Housing Act of 1937 (42 U.S.C.

1437 et seq.), as amended by section 555

of the Quality Housing and Work

Responsibility Act of 1998 (title V of the

Fiscal Year 1999 HUD Appropriations

Act; Public Law 105–276, 112 Stat.

2461, 2518, approved October 21, 1998).

Under the section 8(y) homeownership

option, a public housing agency (PHA)

may choose to provide monthly tenantbased assistance to an eligible family

that purchases a dwelling unit that will

be occupied by the family. The

September 12, 2000 final rule

implemented the section 8(y)

homeownership option by adding a new

‘‘special housing type’’ under subpart M

of HUD’s regulations for the Housing

Choice Voucher Program at 24 CFR part

982. Subpart M describes program

requirements for alternatives to the

basic Housing Choice Voucher program.

The regulations for the homeownership

option are located in §§ 982.625–

982.641 of subpart M.

Section 301 of the American

Homeownership and Economic

Assistance Act of 2000 (Public Law

106–569, 114 Stat. 2944, 2952, approved

December 27, 2000) amends section 8(y)

to authorize an alternative form of

assistance under the homeownership

option—assistance in the form of a

single downpayment assistance grant.

Under section 301, a PHA may, in lieu

of paying a monthly homeownership

assistance payment on behalf of a

family, provide homeownership

assistance for the family in the form of

a single grant to be used toward the

downpayment required in connection

with the purchase of the home.

Implementation of these

downpayment assistance grants is

anticipated for Federal Fiscal Year 2002.

This proposed rule would amend

HUD’s regulations for the

homeownership option to implement

the downpayment assistance authority

provided by section 301. In addition to

the implementation of section 301, HUD

proposes, through this proposed rule, to

clarify and streamline several regulatory

requirements applicable to both

downpayment grants and monthly

homeownership assistance payments

provided under the homeownership

option.

II. Implementation of Downpayment

Assistance Grants

A. General

This proposed rule would implement

section 301 by establishing a new

§ 982.643, which describes the

requirements applicable to

downpayment assistance grants.

Conforming changes would also be

made to § 982.4 (which establishes the

definitions applicable to the Housing

Choice Voucher Program) and § 982.625

(which contains general requirements

applicable to the homeownership

option).

B. Two Types of Homeownership

Assistance

The proposed rule provides that a

PHA may provide one of two types of

homeownership assistance for a family:

1. Monthly homeownership assistance

payments; or

2. A single downpayment assistance

grant.

If a family receives a downpayment

assistance grant, a PHA may not make

monthly homeownership assistance

payments for the family. The PHA may

choose to offer either or both forms of

homeownership assistance under its

program, or choose not to offer either

form of assistance. However, the PHA

must offer either form of

homeownership assistance if necessary

as a reasonable accommodation for a

person with disabilities in accordance

with § 982.601(b)(3). Either form of

homeownership assistance may be paid

either to a family, or to a mortgage

lender on behalf of the family.

C. Eligibility for Downpayment

Assistance

To receive a downpayment assistance

grant, the proposed rule provides that a

family must meet all of the eligibility

requirements for participation in the

homeownership option. In addition, the

proposed rule provides that a family

must already have been receiving

tenant-based voucher rental assistance

for a period of at least one-year to

receive a downpayment grant. The

House Committee Report on the

American Homeownership and

Economic Opportunity Act provides

that the homeownership-related

amendments to the Housing Choice

Voucher Program are intended ‘‘to assist

those currently receiving rental

assistance to move toward

homeownership’’ (see H.R. Rep. No.

553, 106th Cong., 2d. Sess. pt. 1, at 60

(2000)) (emphasis added). Restricting

eligibility to families already receiving

voucher assistance will help to ensure

that downpayment grants are used to

Federal Register / Vol. 66, No. 114 / Wednesday, June 13, 2001 / Proposed Rules 32199

further the Conferees’ objective of

helping relatively higher income

families with vouchers move ‘‘up and

out’’ and become homeowners, freeing

up vouchers for other needy renter

families. Restricting eligibility to current

program participants will also help to

minimize duplication with other

downpayment programs that are

designed to help ‘‘new’’ families not

currently receiving rental assistance and

help to ensure that the program does not

unduly reduce the availability of rental

assistance.

HUD specifically invites public

comment on whether eligibility for

downpayment assistance grants should

be limited in another way or expanded

and, if so, how. All public comments

will be considered in the development

of the final rule.

D. Applicability of Other

Homeownership Option Requirements

Proposed § 982.625(e)(4) and (e)(6)

would specify those regulatory

requirements applicable to the basic

homeownership option that would

apply to downpayment assistance

grants. A downpayment grant is a onetime assistance payment. Accordingly,

those regulatory provisions that

establish ongoing homeownership

assistance requirements or procedures

would not apply to downpayment

assistance grants (in general, §§ 982.633

through 982.641). With the exception of

those requirements specifically noted in

proposed § 982.625(e)(4) and (e)(6), all

requirements applicable to the Housing

Choice Voucher program apply to

downpayment assistance grants.

E. Maximum Downpayment Grant

Section 301 provides that the

maximum downpayment grant ‘‘may

not exceed the amount that is equal to

the sum of the assistance payments that

would be made during the first year of

assistance on behalf of the family, based

on the income of the family at the time

the grant is to be made.’’ Under

§ 982.635(a), the monthly

homeownership assistance payment

paid by the PHA on behalf of the family

is equal to the lower of (1) the payment

standard minus the total tenant

payment, or (2) the family’s monthly

homeownership expenses minus the

total tenant payment. The proposed rule

provides that the maximum amount of

the downpayment grant will be

calculated using only the first prong of

the test described in § 982.635(a).

Specifically, proposed § 982.643(b)

provides that a downpayment assistance

grant may not exceed twelve times the

payment standard minus the total tenant

payment (as calculated in accordance

with § 5.628). Homeownership expenses

will not be considered in making this

determination.

The statutory language of section 301

does not require that homeownership

expenses be considered in determining

the maximum grant amount. As noted

earlier in this preamble, section 301

provides that the maximum

downpayment grant must be calculated

based on the family’s income ‘‘at the

time the grant is to be made.’’ However,

many homeownership expenses (such

as principal and interest on initial

mortgage debt, the amount of real estate

taxes, and the costs of major repairs and

replacements) cannot be estimated until

after the family has contracted to

purchase the home. Since the family is

approved for downpayment assistance

before it enters into the contract of sale,

actual homeownership expenses is

unknown and, therefore, cannot be

calculated ‘‘at the time the grant is to be

made.’’

Requiring the inclusion of

homeownership expenses in the

calculation of the maximum grant

amount might also adversely affect the

family’s ability to obtain suitable

financing, and unduly complicate

program administration. The actual

amount of homeownership expenses is

not known at the time the family applies

for financing. Lenders will be reluctant

to provide a mortgage loan without

knowing the actual amount that the

family will have available for the

downpayment. Further, HUD expects

that, in the majority of cases,

homeownership expenses will exceed

the payment standard. Accordingly, it is

likely that the maximum grant amount

for a family will ultimately be based on

the payment standard, regardless of

whether homeownership expenses are

also factored into the calculation.

In the case of a family that purchases

a home outside of the initial PHA’s

jurisdiction, the maximum

downpayment grant shall be calculated

using the receiving PHA payment

standard and policies.

F. Payment and Use of Downpayment

Grant

The proposed rule provides that the

downpayment assistance grant must be

paid at the closing of the family’s

purchase of the home. The

downpayment assistance grant must be

applied toward the purchase price of the

home. No amount of the downpayment

grant may be used for payment of other

fees and charges related to the

acquisition of the home (such as closing

costs).

G. Administrative Fee

For each downpayment assistance

grant made by the PHA, HUD would pay

the PHA a one-time administrative fee

in accordance with § 982.152.

Specifically, the administrative fee for

downpayment assistance would be

treated as an ‘‘extraordinary cost’’ under

§ 982.152(a)(1)(iii)(C). The

administrative fee would be established

through HUD field notice, in accordance

with the existing procedures for the

establishment of such fees. HUD

proposes that the administrative fee for

downpayment assistance initially be set

at $250.

H. Renewal of Vouchers

When issuing a voucher used for a

downpayment assistance grant to a

family, the PHA should consider the

amount of available reserves. In

calculating the per-unit costs for

purposes of voucher renewal funding,

downpayment assistance shall not be

counted.

III. Streamlining and Clarifying

Amendments to Homeownership

Option

A. Minimum Income Requirement

Section 8(y) of the United States

Housing Act of 1937, provides that a

family may not receive homeownership

assistance unless the family

demonstrates that gross monthly income

is at least two times the voucher

‘‘payment standard’’ or an ‘‘other

amount’’ established by the Secretary

(section 8(y)(1)(B), 42 U.S.C.

1437(y)(1)(B)). HUD has implemented

the statutory minimum income

requirements at § 982.627(c)(1).

Specifically, the regulation currently

provides for a uniform national

minimum income requirement that is

equal to 2,000 hours of annual full-time

work at the Federal minimum wage.

Some PHAs have expressed a concern

that the current minimum income is too

low for their area and that few, if any,

families with incomes that low would

qualify for a mortgage. These PHAs

argue that this unrealistically raises the

expectations of many families and

results in an unnecessary administrative

burden for PHAs who must process a

large number of applications that have

no realistic chance of leading to

homeownership. On the other hand,

HUD wants to make sure that PHAspecific income limits do not prevent

use of the homeownership option by

families who can qualify for a mortgage

from a reputable lending institution.

To balance these respective concerns,

this proposed rule would provide PHAs

with the flexibility to establish a

32200 Federal Register / Vol. 66, No. 114 / Wednesday, June 13, 2001 / Proposed Rules

minimum income requirement that is

higher than the standard described in

§ 982.627(c)(1), based on factors such as

housing costs and the practices of

participating lenders. However, a family

that does not meet the higher standard

established by the PHA shall be

considered to satisfy the minimum

income requirement if the family: (1)

Meets the HUD-established standard;

and (2) has been pre-qualified or preapproved for financing. The prequalified or pre-approved financing

must meet any PHA established

requirements for financing the purchase

of the home (including qualifications of

lenders and terms of financing). Further,

the pre-qualified or pre-approved

financing amount must be sufficient to

purchase decent, safe, and sanitary

housing of a modest nature in the PHA’s

jurisdiction.

B. Eligibility of Units Not Yet Under

Construction

The homeownership option

regulations at § 982.628(a)(2) provide

that a home is eligible for purchase

under the homeownership option if, at

the time the PHA determines that the

family is eligible to purchase the home

with homeownership assistance, the

home is either existing or under

construction. Under the existing

regulations, homeownership assistance

may not be provided for the purchase of

a unit that is not yet under construction.

However, HUD has become aware of

concerns that this restriction may limit

the participation in the homeownership

option of families that also participate

in certain other Federal homeownership

programs. (For instance, the Rural

Housing Service Mutual Self-Help

Housing Loan program requires the

family to assist in the construction of

the unit. Typically, under these ‘‘sweat

equity’’ homeownership programs, the

family must commit to purchase the

unit before construction of the home

begins.) To address these concerns, and

increase participation in the

homeownership option, HUD is

considering the feasibility of expanding

the list of eligible units at the final rule

stage to include certain new homes not

yet under construction. However, there

are several issues that will need to be

considered before implementation of

such a change—including whether HUD

may provide homeownership assistance

for the purchase of these units in a

manner that is consistent with the

statutory environmental review

requirements of the National

Environmental Policy Act (42 U.S.C.

4321) and related Federal authorities,

and does not impose an undue

administrative burden. HUD anticipates

that these issues will be resolved by the

final rule stage and that the final rule

will reflect whether expansion of

eligibility is feasible or not.

C. Eligibility of Manufactured Homes

As noted, § 982.628 describes the

units eligible for purchase under the

homeownership option. Although

manufactured housing is not

specifically mentioned in § 982.628, the

preamble to HUD’s September 12, 2000

final rule made clear that a

manufactured home and the real

property upon which the manufactured

home sits are eligible for purchase

under the homeownership option (see

65 FR 55134 at 55147, first column). For

purposes of clarity, this proposed rule

would amend § 982.628 to explicitly

reference the eligibility of manufactured

homes. The proposed rule would also

authorize the provision of

homeownership assistance for the

purchase of a manufactured home

where the family will not own fee title

to the real property on which the home

is located in certain circumstances.

However, the manufactured home must

have a permanent foundation. Further,

the family must have the right to occupy

the manufactured home site for a period

of at least thirty years.

D. Removal of Recapture Provisions

The homeownership option

regulations at § 982.640 provide for the

recapture of a percentage of the

homeownership assistance provided to

the family upon the sale of refinancing

of the home. The recapture provisions

were included in the regulation to

protect program integrity by preventing

windfalls to individual families and

program abuses. PHAs, lenders, and

other potential program participants,

however, have expressed concerns that

the recapture provisions are not an

important safeguard given the structure

and likely use of this subsidy program,

will unduly complicate administration

of the homeownership option, and will

discourage participation in the

homeownership option by PHAs,

lenders and families. Accordingly, HUD

has determined that removal of the

recapture provisions is appropriate.

IV. Findings and Certifications

Regulatory Planning and Review

The Office of Management and Budget

(OMB) reviewed this rule under

Executive Order 12866, Regulatory

Planning and Review. OMB determined

that this rule is a ‘‘significant regulatory

action’’ as defined in section 3(f) of the

Order (although not an economically

significant regulatory action under the

Order). Any changes made to the rule as

a result of that review are identified in

the docket file, which is available for

public inspection in the office of the

Department’s Rules Docket Clerk, Room

10276, 451 Seventh Street, SW,

Washington, DC 20410–0500.

Unfunded Mandates Reform Act

Title II of the Unfunded Mandates

Reform Act of 1995 (2 U.S.C. 1531–

1538) establishes requirements for

Federal agencies to assess the effects of

their regulatory actions on State, local,

and tribal governments and the private

sector. This proposed rule does not

impose any Federal mandates on any

State, local, or tribal governments or the

private sector within the meaning of

Unfunded Mandates Reform Act of

1995.

Environmental Impact

A Finding of No Significant Impact

with respect to the environment has

been made in accordance with HUD

regulations at 24 CFR part 50, which

implement section 102(2)(C) of the

National Environmental Policy Act of

1969 (42 U.S.C. 4223). The Finding of

No Significant Impact is available for

public inspection between the hours of

7:30 a.m. and 5:30 p.m. weekdays in the

Office of the Rules Docket Clerk, Office

of General Counsel, Room 10276,

Department of Housing and Urban

Development, 451 Seventh Street, SW,

Washington, DC 20410.

Impact on Small Entities

The Secretary, in accordance with the

Regulatory Flexibility Act (5 U.S.C.

605(b)) (the RFA), has reviewed and

approved this proposed rule and in so

doing certifies that this rule will not

have a significant economic impact on

a substantial number of small entities.

The reasons for HUD’s determination

are as follows:

(1) A Substantial Number of Small

Entities Will Not be Affected. The

proposed rule is exclusively concerned

with public housing agencies that

administer tenant-based housing

assistance under section 8 of the United

States Housing Act of 1937. Specifically,

the proposed rule would implement an

alternative to the basic homeownership

option under which a PHA may elect to

provide a one-time downpayment

assistance grant to eligible families. The

proposed rule would also make several

clarifying and streamlining amendments

to the regulations governing basic

homeownership voucher assistance,

which is also administered by PHAs.

Under the definition of ‘‘small

governmental jurisdiction’’ in section

601(5) of the RFA, the provisions of the

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RFA are applicable only to those few

PHAs that are part of a political

jurisdiction with a population of under

50,000 persons. The number of entities

potentially affected by this rule is

therefore not substantial.

(2) No Significant Economic Impact.

The proposed rule would not change the

amount of funding available under the

Housing Choice Voucher Program.

Accordingly, the economic impact of

this rule will not be significant, and it

will not affect a substantial number of

small entities.

Notwithstanding HUD’s

determination that this rule will not

have a significant economic effect on a

substantial number of small entities,

HUD specifically invites comments

regarding any less burdensome

alternatives to this rule that will meet

HUD’s objectives as described in this

preamble.

Executive Order 13132, Federalism

Executive Order 13132 (entitled

‘‘Federalism’’) prohibits an agency from

publishing any rule that has federalism

implications if the rule either imposes

substantial direct compliance costs on

State and local governments and is not

required by statute, or the rule preempts

State law, unless the agency meets the

consultation and funding requirements

of section 6 of the Executive Order. This

proposed rule is exclusively concerned

with homeownership voucher

assistance. This proposed rule does not

have federalism implications and does

not impose substantial direct

compliance costs on State and local

governments or preempt State law

within the meaning of the Executive

Order.

Catalog of Domestic Assistance Number

The Catalog of Domestic Assistance

Number for the Housing Choice

Voucher Program is 14.871.

List of Subjects in 24 CFR Part 982

Grant programs—housing and

community development, Housing, Rent

subsidies, Reporting and recordkeeping

requirements.

Accordingly, for the reasons described

in the preamble, HUD proposes to

amend 24 CFR part 982 as follows:

PART 982—SECTION 8 TENANTBASED ASSISTANCE: HOUSING

CHOICE VOUCHER PROGRAM

1. The authority citation for 24 CFR

part 982 continues to read as follows:

Authority: 42 U.S.C. 1437f and 3535(d).

2. In § 982.4(b), add the definition of

‘‘Downpayment assistance grant’’ in

alphabetical order, and revise the

definition of ‘‘Homeownership

assistance’’ to read as follows:

§ 982.4 Definitions.

* * * * *

(b) * * *

Downpayment assistance grant. A

form of homeownership assistance in

the homeownership option: A single

downpayment assistance grant for the

family. If a family receives a

downpayment assistance grant, a PHA

may not make homeownership

assistance payments for the family. A

downpayment assistance grant is

applied to the downpayment for

purchase of the home.

* * * * *

Homeownership assistance.

Assistance for a family under the

homeownership option. There are two

alternative and mutually exclusive

forms of homeownership assistance by a

PHA for a family: monthly

homeownership assistance payments, or

a single downpayment assistance grant.

Either form of homeownership

assistance may be paid to the family, or

to a mortgage lender on behalf of the

family.

* * * * *

3. Add § 982.625(e) to read as follows:

§ 982.625 Homeownership option:

General.

* * * * *

(e) Two types of homeownership

assistance. (1) A PHA may provide one

of two types of homeownership

assistance for a family:

(i) Monthly homeownership

assistance payments; or

(ii) A single downpayment assistance

grant.

(2) The PHA may choose to offer

either or both forms of homeownership

assistance under its program, or choose

not to offer either form of assistance.

However, the PHA must offer either

form of homeownership assistance if

necessary as a reasonable

accommodation for a person with

disabilities in accordance with

§ 982.601(b)(3)).

(3) Paragraphs (e)(4), (e)(5), and (e)(6)

of this section specify what regulatory

provisions (under the heading

‘‘homeownership option’’) are

applicable to either or both forms of

homeownership assistance (except as

otherwise specifically provided):

(4) Common provisions that apply to

both forms of homeownership

assistance:

(i) Section 982.625 (General);

(ii) Section 982.626 (Initial

requirements);

(iii) Section 982.627 (Eligibility

requirements for families);

(iv) Section 982.628 (Eligible units);

(v) Section 982.629 (Additional PHA

requirements for family search and

purchase);

(vi) Section 982.630 (Homeownership

counseling);

(vii) Section 982.631 (Home

inspections and contract of sale);

(viii) Section 982.632 (Financing

purchase of home; affordability of

purchase);

(ix) Section 982.636 (Portability)

(However, paragraphs (a) and (e) of

§ 982.636 do not apply to downpayment

assistance grants); and

(x) Section 982.641 (Applicability of

other requirements).

(5) Provisions that apply to

homeownership assistance in the form

of monthly housing assistance

payments:

(i) Section 982.633 (Continued

assistance requirements; family

obligations);

(ii) Section 982.634 (Maximum term

of homeownership assistance);

(iii) Section 982.635 (Amount and

distribution of monthly homeownership

assistance payment);

(iv) Section 982.637 (Move with

continued tenant-based assistance);

(v) Section 982.638 (Denial or

termination of assistance for family);

and

(vi) Section 982.639 (Administrative

fees).

(6) Provision that applies to

homeownership assistance in the form

of a downpayment assistance grant:

Section 982.643 (Downpayment

assistance grants).

4. Revise § 982.627(c)(3) to read as

follows:

§ 982.627 Homeownership option:

Eligibility requirements for families.

* * * * *

(c) * * *

(3) A PHA may establish a minimum

income requirement that is higher than

the Federal minimum wage multiplied

by 2,000 hours, based on factors such as

housing costs and the practices of

participating lenders. However, a family

that does not meet the higher standard

established by the PHA shall be

considered to satisfy the minimum

income requirement if:

(i) The family meets the minimum

income requirement as described in

paragraphs (c)(1) and (c)(2) of this

section;

(ii) The family demonstrates that it

has been pre-qualified or pre-approved

for financing;

(iii) The pre-qualified or pre-approved

financing meets any PHA established

requirements under § 982.632 for

financing the purchase of the home

32202 Federal Register / Vol. 66, No. 114 / Wednesday, June 13, 2001 / Proposed Rules

(including qualifications of lenders and

terms of financing); and

(iv) The pre-qualified or pre-approved

financing amount is sufficient to

purchase decent, safe, and sanitary

housing of a modest nature in the PHA’s

jurisdiction.

* * * * *

5. Amend § 982.628 as follows:

a. Revise paragraph (a)(3);

b. Redesignate paragraph (b) as

paragraph (c); and

c. Add new paragraph (b) to read as

follows.

§ 982.628 Homeownership option: Eligible

units.

(a) * * *

(3) The unit is either a one unit

property (including a manufactured

home) or a single dwelling unit in a

cooperative or condominium.

* * * * *

(b) Purchase of manufactured home

where family will not own real property.

Homeownership assistance may be

provided for the purchase of a

manufactured home where the family

will not own fee title to the real

property on which the home is located,

but only if:

(1) The manufactured home is located

on a permanent foundation; and

(2) The family has the right to occupy

the manufactured home site for at least

thirty years.

* * * * *

6. In § 982.635(e), revise the first

sentence to read as follows:

§ 982.635 Homeownership option: Amount

and distribution of monthly homeownership

assistance payment.

* * * * *

(e) Automatic termination of

homeownership assistance.

Homeownership assistance for a family

terminates automatically 180 calendar

days after the last homeownership

assistance payment on behalf of the

family. * * *

7. Remove § 982.640.

8. Add § 982.643 to read as follows:

§ 982.643 Homeownership option:

Downpayment assistance grants.

(a) General. (1) A PHA may provide

homeownership assistance for the

family in the form of a single grant to

be applied toward the downpayment

required in connection with the

purchase of the home.

(2) The family must have already been

receiving Section 8 tenant-based rental

assistance for a period of at least one

year to receive a downpayment

assistance grant under this section.

(3) A member of a family that has

received a downpayment assistance

grant may not receive monthly

homeownership assistance payments

from any PHA. A member of a family

that has received homeownership

assistance payments may not receive a

downpayment assistance grant from any

PHA.

(b) Maximum downpayment grant. A

downpayment assistance grant may not

exceed twelve times the payment

standard minus the total tenant

payment.

(c) Payment of downpayment grant.

The downpayment assistance grant shall

be paid at the closing of the family’s

purchase of the home.

(d) Administrative fee. For each

downpayment assistance grant made by

the PHA, HUD will pay the PHA a onetime administrative fee in accordance

with § 982.152(a)(1)(iii).

Dated: May 23, 2001.

Mel Martinez,

Secretary.

[FR Doc. 01–14882 Filed 6–12–01; 8:45 am]

BILLING CODE 4210–33–P