Sec. 05.12.01.14. Property Standards

A. Applicable Standards for Projects to Which Funds Are Committed Prior to January 24, 2015.

(1) All housing assisted with HOME funds shall meet the housing quality standards set forth in 24 CFR §982.401.

(2) Newly constructed or rehabilitated housing shall meet the standards set forth in 24 CFR §92.251 and all applicable local codes, ordinances, rehabilitation standards, and zoning ordinances.

(3) Before the transfer of a homeownership project that is to be rehabilitated after transfer, the Department or its designee shall:

(a) Inspect the housing for any defects which pose a danger to health or safety;

(b) Notify the prospective purchaser of any work required to cure any defects identified by the inspection; and

(c) State the time frame in which the cure will be accomplished, which time frame may not exceed 6 months following the transfer.

(4) In addition, a homeownership project that is to be rehabilitated after transfer shall:

(a) Be free from all defects identified in the inspection required under §C of this regulation before occupancy and within 6 months of the transfer; and

(b) Meet the housing quality standards set forth in §A of this regulation within 2 years of the transfer.

(5) The purchase or rehabilitation of manufactured housing is eligible for HOME funds if, upon completion, the unit:

(a) Is situated on a permanent foundation, except for assistance to owners of existing units who rent the lot on which their unit is placed;

(b) Is connected to permanent utility hookups;

(c) Is located on land which is held in fee-simple title or under a long-term ground lease with a term equal to the appropriate period of affordability;

(d) Meets either the:

(i) Construction standards set forth in 24 CFR 3280 if the unit was produced after June 15, 1976; or

(ii) Applicable State or local codes if the unit was produced before June 15, 1976;

(e) Meets all the other requirements of these regulations, including, for rental units, Regulations .15 and .16 of this chapter, and, for homeownership units, Regulation .17 of this chapter.

B. Applicable Standards for Projects to Which Funds Are Committed on or After January 24, 2015.

(1) New construction projects. New construction projects shall meet the requirements set forth in 24 CFR §92.251(a).

(2) Rehabilitation Projects.

(a) Rehabilitation projects shall meet the Department’s rehabilitation property standards, which are available either directly from the Department or on the Department’s website.

(b) The construction contracts and construction documents shall describe the work to be undertaken in adequate detail so that inspections can be conducted. Written cost estimates shall be reviewed and shall be approved only if costs are determined to be reasonable.

(c) An initial property inspection shall be conducted to identify any deficiencies that must be addressed. The Department or its designee shall conduct progress and final inspections to determine that work was completed in accordance with work write-ups and the Department’s rehabilitation standards.

(3) Acquisition of Existing Housing.

(a) Existing housing that is acquired with HOME assistance for rental housing, and that was newly constructed or rehabilitated less than 12 months before the date of commitment of HOME funds, shall meet the property standards of §B(1) or (2) of this regulation, as applicable. Compliance shall be documented based upon a review of approved building plans and certificates of occupancy, and an inspection that is conducted no earlier than 90 days before the commitment of HOME assistance.

(b) All other existing housing that is acquired with HOME assistance for rental housing shall meet the rehabilitation property standards requirements of §B(2) of this regulation. Compliance shall be documented based upon an inspection that is conducted no earlier than 90 days before the commitment of HOME assistance.

(c) Existing housing that is acquired for homeownership, including down-payment assistance, shall meet the Department’s homeownership property standards, which are available either directly from the Department or on the Department’s website. Compliance with these standards shall be documented based upon an inspection that is conducted no earlier than 90 days before the commitment of HOME assistance.

(4) Housing occupied by tenants receiving HOME tenant-based rental assistance shall meet the standards contained in 24 CFR §982.401, or the successor requirements as established by HUD.

(5) Manufactured Housing. Construction of all manufactured housing including manufactured housing that replaces an existing substandard unit under the definition of “reconstruction” shall meet the requirements set forth in 24 CFR §92.251(e).

(6) Ongoing property condition standards for rental housing. All HOME-funded rental housing shall meet the Department’s ongoing property condition standards for rental housing throughout the affordability period. These standards are available either directly from the Department or on the Department’s website.