Sec. 05.06.06.05. Eligible Property

Properties that are financed by mortgage loans insured by the Fund shall meet property eligibility requirements at the time of loan closing as follows:

A. Be single family properties with not more than four units;

B. Be located in the State;

C. Have clear and merchantable title acceptable to the Fund;

D. Conform to all applicable federal, State, and local building, zoning, environmental, health, and housing codes;

E. Be insured with hazard insurance issued by a company that is approved by the State Insurance Commissioner and, when applicable, flood insurance;

F. Have an appraisal and appraised value that are satisfactory to the Fund;

G. Meet the minimum property standards of the Fund; and

H. If the property is a condominium, meet the following requirements:

(1) Have either a:

(a) Certification that it is in compliance with FNMA or FHLMC standards, or

(b) Sales and management plan satisfactory to the Fund; and

(2) If the condominium is a conversion from a rental housing development:

(a) There shall be in place a relocation plan for tenants acceptable to the Fund, unless the buyer is a current tenant,

(b) The buildings shall have been vacant at least 12 months before start of the conversion, or

(c) The Secretary shall have determined that the conversion serves an exceptional public purpose.