(c) Outstanding mortgage balance at acquisition.

(d) Property acquired. Contra to (c) above, this will be established in the same amount and will offset the outstanding mortgage balance. In the event a property is sold with the purchaser assuming the mortgage or with FHA taking a purchase money mortgage the outstanding balance assumed by the purchaser or the amount of the purchase money mortgage accepted will be recorded as a reduction of the amount originally established.

(e) Principal payments including prepayments of the entire balance when necessary by FHA on the mortgage.

(f) Interest payments by FHA on the mortgage.

(g) Payments in lieu of taxes and insurance payments by FHA. The Corps will notify FHA on the FHA Form 1174 of Escrow Accounts retained by the mortgagee.

(h) Maintenance and operating expenses paid by FHA including any special payments for evictions and removal of title impediments. Direct expense transactions of $100 or more will be a direct charge to the affected property account. All other expenses, generally derived from net settlements with brokers, made pursuant to FHA 2570 Accounting Manual for Acquired Properties, as may be amended from time to time, will be prorated monthly to all home properties in FHA's inventory, including those acquired pursuant to this agreement. Net settlement means expenses paid by brokers less rental collections.

(i) Sales expenses paid by FHA which will be for sales, closing costs, and discount on notes.

(j) Net FHA incurred expense, which will be the net total of amounts recorded in items (e) through (j) of this section.

(k) Gross Sales Price agreed to by FHA. This is not the same as cash proceeds which will be reported separately by FHA.

(1) Net Expense or Collection on Sold Properties, which will be the gross sales price less adjustments to item (d) of this section less item (j) of this section.

(m) A Corps' furnished base identification and homeowner classification code consisting of 7 digits (2 digits for State code and 4 digits for installation number plus the number "2" for civilian or the number "1" for military homeowner).

SEC. 3. FHA will furnish to the Corps the following reports:

(a) Monthly, no later than 30 working days after the end of each calendar month the FHA Form 1131, "Acquired Home Property, Maintenance Phase Trial Balance," showing separate totals to date for items (c) through (1) of Article V, section 2, for each FHA identification number.

(b) Monthly, no later than 30 working days after the end of each calendar month a

statement supporting an SF 1080 billing setting forth the following:

(1) Net change in FHA expenses for acquired properties as reported on the current and prior month, Article V, section 3, item (a) reports, separately for "on hand" and for "sold" properties.

(2) Sales proceeds, which will be detailed by the gross sales price agreed to by FHA less amount of mortgages assumed by buyers less purchase money mortgages accepted by FHA.

(3) Principal and interest collections separately on purchase money mortgages.

(4) FHA insuring office expenses directly related to this agreement, developed on basis of reports received in accordance with FHA Manual, Field Expense and Performance Handbook, as may be amended from time to time. This item will be supported by a schedule showing total expenses incurred by each FHA insuring office.

(5) FHA Headquarters expenses directly related to this agreement developed on basis of reports received in accordance with FHA Manual, Departmental Expenses and Performance Handbook, as may be amended from time to time.

(6) HUD departmental level expenses directly related to this program which will include Automatic Data Processing (ADP) services, printing and some other minor expenses, which in the judgment of FHA are appropriately chargeable under this Agreement. ADP services will include the cost of magnetic tapes furnished the Corps under Article V, section 3, item (c) and Article V, section 4, and personal service costs.

Personal service costs included in items (4), (5), and (6) will be limited to those directly related to this program on the basis of time worked and will consist of salary cost plus FICA and the Government contribution for health benefits, life insurance, and retirement funds. An additional 15.9 percent of this total will be added to cover the cost of earned annual leave, sick leave taken, and holiday leave.

(7) Amount due FHA from the Fund or amount due the Fund from FHA.

(c) Quarterly, not later than 30 working days after the end of each calendar quarter a duplicate of the FHA automated tape record for all acquired properties.

SEC. 4. Whenever FHA determines that they do not plan to offer properties for sale within 12 months after acquisition, the FHA will so advise the Secretary of Defense, with the expected prospects for such disposition. The Secretary of Defense will consult with the FHA on alternative means of disposal in such cases where such alternatives are considered feasible.

SEC. 5. FHA will not drop closed cases for properties acquired pursuant to the Act from the automated tape records except by

special agreement with the Corps, at which time a duplicate of FHA's automated tape record of such cases will be furnished to the Corps.

SEC. 6. It is agreed and understood that, in performing the accounting and reporting operations set out herein, FHA will accomplish the objectives using its existing automated data processing routines and programs, and that no special programming or detailed printouts will be required from FHA.

SEC. 7. The Corps, within 6 working days after receipt of a monthly statement indicating an amount due FHA, will reimburse FHA by check for the amount shown on the statement. The check will be made payable to the Federal Housing Administration and will be forwarded to the FHA Assistant Commissioner-Comptroller.

SEC. 8. In those instances where the statement indicates an amount due the Fund, a check payable to the Homeowners Assistance Fund, Defense, for such amount will accompany the monthly statement submitted to the Corps by FHA.

SEC. 9. The following FHA issuances and changes thereto will be furnished to the Corps:

(a) FHA 2750, Accounting Manual for Acquired Properties;

(b) FHA Manual, Field Expense and Performance Handbook;

(c) FHA Manual, Departmental Expense and Performance Handbook.

SEC. 10. FHA will maintain a separate document file for each acquired property. The file will contain at least the FHA Form 1174 and FHA Form 1175 and attachments thereto.

ARTICLE VI-FINALITY OF ACTION SECTION 1. This agreement embodies the full understanding of the Department of Defense and the Department of Housing and Urban Development concerning their responsibilities and it is understood that all decisions made and all actions taken by HUD/FHA within the terms of this agreement with respect to all aspects of clearing impediments of title, prepayment of mortgages, eviction of occupants, prepayment of hazard insurance coverage premiums, and all other matters relating to the maintenance, management, renovation, rental, sale, or other disposal of properties and the selection and use of brokers shall be final and conclusive as fully as if made or taken by the Secretary of Defense.

ARTICLE VII-DELEGATION OF AUTHORITY SECTION 1. The Secretary of Housing and Urban Development is hereby authorized, with respect to acquired properties, to acquire title to, hold, manage, sell for cash or credit by taking a purchase money mort

gage in the name of the Secretary of Housing and Urban Development, and, in connection therewith, to execute deeds of conveyance and all other instruments necessary to fulfill the purposes of section 1013 of the Demonstration Cities and Metropolitan Development Act of 1966 (Pub. L. 89-754, enacted Nov. 3, 1966), to issue rules and regulations and to make any or all determinations and to take any or all further actions in connection with acquired properties which the Secretary of Defense is authorized to undertake pursuant to the provisions of the Act. The Secretary of Housing and Urban Development is further authorized to redelegate any of the functions, powers and duties delegated herein to officers and employees of HUD and to authorize successive redelegations.

[34 FR 18031, Nov. 7, 1969]

PART 239a-DEPARTMENT OF DEFENSE HOUSING REFERRAL PROGRAM

Sec.

239a.1 Purpose and objectives. 239a.2 Applicability and scope. 239a.3 Policies and responsibilities.

239a.4 Programing, budgeting and financing.

AUTHORITY: 5 U.S.C. 301.

SOURCE: 35 FR 12201, July 30, 1970, unless otherwise noted.

§ 239a.1 Purpose and objectives.

This part sets forth Department of Defense policy governing the establishment and operation of Housing Referral Offices to assure that military personnel authorized to reside off-base are quickly, adequately, suitably and economically housed in quarters within reasonable proximity of their duty stations.

§ 239a.2 Applicability and scope.

The provisions of this part apply to the Military Departments, Defense Agencies, and other DoD activities (hereinafter referred to collectively as "DoD Components") which have military personnel assigned who are authorized to live in the civilian community.

§ 239a.3 Policies and responsibilities.

(a) Heads of the DoD Components will provide for the establishment and operation of Housing Referral Offices

Program objectives.

he Housing referral program is ide military personnel authorlive in the civilian community personalized and conveniently e service to assist them in louitable off-base housing. Com

near military installations ed on as a primary source of for military personnel. here government quarters are , assignments are made in acwith existing instructions O Instruction 4165.44 1). providing full and complete Referral Services to all milionnel, it is the intent to avoid on and overlapping where two nstallations are located in the eral area and draw upon the munity support.

eneral guidelines.

ppropriate geographic areas, intra- and inter-service co1 will be effected in performng referral services. A single erral office should be conside suitable and where more

ote 1 to § 239a.4.

than one installation draws upon the same community support.

(b) The housing referral services will be established and operated within the centralized Family Housing Offices as prescribed by Part 239a of this subchapter unless specifically exempted by the ASD(I&L). Operations will be performed by permanently assigned personnel to the degree possible. Family or community services volunteers may be utilized, but only to assist personnel responsible for providing such services. Military personnel or civilian personnel may be used as required.

(c) In order to provide maximum assistance, procedures will be established whereby military personnel are processed through the appropriate housing referral office prior to the execution of a commitment for obtaining private housing. In this manner, personnel can be provided centralized information on availability of public quarters, types and costs of available private rental housing, schools, shopping, and other community services. Each military person shall retain his freedom of choice in the selection of private accommodations, except in those situations where competent authority has imposed restrictive sanctions against certain rental properties or when there is a requirement to occupy Military Family Housing; in this connection, efforts should be made to avoid hardship on the serviceman. DoD Instruction 4165.441 establishes criteria for considering hardship cases.

(d) In all instances, positive, aggressive action will be taken to secure the maximum number of suitable listings (vacancies) of properties which are available for occupancy by military personnel.

(e) Establishment of housing referral service is not intended to intrude on the normal relations between real estate brokers, rental agents, sales agents, and their customers.

§ 239b.5 Functions and responsibilities.

(a) Large installations (more than 500 military personnel assigned). Under the general supervision of heads of DoD Components each Hous

at each installation in the United States under their jurisdiction having more than 500 military personnel assigned.

(1) Each Housing Referral Office will offer complete referral services and a full range of personal assistance to all military personnel assistance to (and/or dependents) who require and are authorized to occupy off-base housing. This assistance will be available to all military personnel and dependents, regardless of their pay grade, years of service, or marital status.

(2) The housing of DoD military personnel will be conducted on a nondiscriminatory basis. All housing activity will be free from racial discrimination, and provide equal opportunity and treatment for all military personnel irrespective of their race, color, creed, or national origin.

(3) The Housing Referral Offices will be established as components of installation level Family Housing Offices. Any exceptions to this policy will be specifically approved by the Assistant Secretary of Defense (Installations and Logistics).

(b) At smaller installations (500 or less military personnel assigned) housing referral services will be performed to the extent required, however, full advantage will be taken of housing referral services offered by larger installations in the area. Where a military family housing inventory exists, these referral services will be performed by the family housing office.

(c) Housing Referral Offices and services may be established in overseas areas at the discretion of the head of each DoD Component concerned, after approval by the Assistant Secretary of Defense (Installations and Logistics). Where such service is provided, there will be full coordination between and among affected DoD Components.

(d) The Assistant Secretary of Defense (Installations and Logistics) will develop and issue supplementary DoD Instructions governing the operation of the Housing Referral Program, and review and evaluate compliance therewith.

(e) The Assistant Secretary of Defense (Manpower and Reserve Affairs) will review and evaluate compliance

relating to Equal Opportunity in offbase housing including required surveys to measure progress in the area of off-base discrimination.

(f) The Assistant Secretary of Defense (Comptroller) is responsible for issuing policy and procedures for the financing of the Housing Referral Program.

(g) The Secretaries of the Military Departments and Directors of Defense Agencies are responsible for the establishment and operation of the Housing Referral Offices and the performance of housing referral and related services.

§ 239a.4 Programing, budgeting and financing.

(a) Resources required for the Housing Referral Program will be programed, budgeted and financed under the Family Housing Management Account or the applicable Military Personnel Appropriation.

(b) Costs of housing referral services (exclusive of costs related to military personnel) are chargeable to the Family Housing Management Account under the Major Functional Category: Operation and Maintenance; Immediate Subordinate Account: Operations; Subaccount: Administration. Applicable costs charged to this account will be determined in accordance with the principles set forth in DoD Instruction 7150.61 for charging administrative and related support costs. Appropriate DoD issuances will be revised accordingly.

(c) Costs of military personnel engaged in this program will be charged to the applicable Military Personnel Appropriation.

PART 239b-HOUSING REFERRAL OFFICES AND SERVICES

Sec.

239b.1 Purpose.

239b.2 Applicability and scope. 2396.3 Program objectives. 239b.4 General guidelines.

1Filed as part of original. Copies available from U.S. Naval Publications and Forms Center, 5801 Tabor Avenue, Philadelphia, Pa. 19120, Attention: Code 300.