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AUTHORITY DETERMINATION

(To be sent to the Owner and to the Family) (Check applicable boxes.)

1. Additional Information Required. To enable this Authority to make a determination regarding the eligibility of the Family headed by

the following additional information is required from the Owner:

After the Owner has submitted the required information he will be notified by this Authority of its determination within the time period specified in his Agreement or Contract with this Authority.

2. Determination of Eligibility. This Authority has determined that the Family headed by

is eligible for participation in the Housing Assistance Payments Program of this Authority as set forth in a Certificate of Family Participation issued and signed by this Authority. In addition, this Authority has determined that the proposed lease and the dwelling unit meet the program requirements, and they are hereby approved.

Returned herewith are (a) the Certificate of Family Participation, attached as Part III, and (b) the proposed lease, completed by the Authority with respect to the portion of the lease rental which the Family shall be obligated to pay to the Owner. The Certificate shall be signed by the Family and the lease shall be signed by the Owner and the Family. A copy of each signed document shall be returned to the Authority.

Attached is a Security Deposit Agreement signed by this Authority, which shall be signed by the Owner and the Family and returned to the Authority.

Yes.

No.

PART III

CERTIFICATE OF FAMILY
PARTICIPATION

(To be sent to the Owner and the Family)

1. Certification. The undersigned Authority hereby certifies that the Family headed by is authorized to participate in the Section 23 Housing Assistance Payments Program of this Authority by leasing a unit consisting of bedrooms

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Under this program, the Authority makes housing assistance payments on behalf of participating families toward their rents for decent, safe, and sanitary dwelling units.

2. Rent. Under the rules and regulations of the Housing Assistance Payments Program, the Family will be obligated to pay $---. toward the monthly lease rental; provided that this amount will be reduced by the LHA-determined allowance for any utilities to be paid directly by the Family, and such reduced amount will be specified in the lease. The amount of the Family's payment is subject to change by reason of changes in the income or composition of the Family.

3. Conditions. The Family agrees to perform all its obligations under the Housing Assistance Payments Program including the obligations to (a) provide such Family income information and records as may be required in the administration of the program; (b) permit inspections of its dwelling units at reasonable times and with reasonable advance notice; and (c) give at least 30 days notice to the Authority of the Family's intention to vacate the unit. Date

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Total Amount of Deposits

2. On or before the effective date of the lease to be entered into between the Family and the Lessor, the Family agrees to pay $ to the Housing Authority as a first installment toward repayment of the total amount for security and/or utility deposits stated in item 1 above, leaving a balance of $--

3. The Family agrees to repay the stated balance by paying monthly installments of $3 to the Lessor acting on behalf of the Housing Authority. These payments shall begin on the first day of the second month of the lease, and they shall be in addition to the Family's regular monthly rental payments to the Lessor.

4. The Lessor agrees to collect from the Family the monthly amounts specified in item 3 above and remit them to the Housing Authority, with the understanding, however, that failure on the part of the Family to pay such amounts shall not affect the Lessor's rights to housing assistance payments otherwise payable to him by the Housing Authority.

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1273.215

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1 Insert name of each utility company to which deposit is paid.

2 Insert an amount equal to the lesser of (a) one-twelfth of the Total Amount of Deposits stated in Item 1 above or (b) one month's gross family contribution.

" Insert monthly amount to be paid by the Family, generally in the amount of oneeleventh of the balance due. However, this amount may subsequently be adjusted by the Housing Authority by reason of changes in income or rent-paying ability of the Family by amendment of this Agreement.

Execution of housing assistance

payments contract.

Project operation.

HUD review of contract compliance.

1273.220 PHA reporting requirements. [Reserved]

APPENDICES

I. Agreement to enter into housing assistance payments contract-Private-owner or PHA-owner project.

II. Housing assistance payments contractprivate-owner or PHA-owner project.

NOTE: Various prescribed forms which relate to internal HUD processing procedures are not included herein, but will appear in the HUD New Construction Handbook.

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III. Annual contributions contract-private-owner/PHA project.

IV. Agreement to enter into housing assistance payments contract-private-owner/ PHA project.

V. Housing assistance payments contractprivate-owner/PHA project.

AUTHORITY: Section 7(d), Department of Housing and Urban Development Act (42 U.S.C. 3535(d)); sec. 5(b) of the U.S. Housing Act of 1937 (42 U.S.C. 1437c(b); sec. 8 of the U.S. Housing Act of 1937 (42 U.S.C. 1437f).

SOURCE: 39 FR 45169, Dec. 30, 1974, unless otherwise noted.

Subpart A Applicability, Scope and Basic Policies

§ 1273.101 Applicability and scope.

(a) The policies and procedures contained herein are applicable to the making of housing assistance payments on behalf of Eligible Families leasing newly constructed housing pursuant to the provisions of Section 8 of the U.S. Housing Act of 1937 (“Act”).

(b) For the purpose of this Part, "new construction" shall mean newly constructed housing for which, prior to the start of construction, an Agreement to Enter into Housing Assistance Payments Contract is executed between the Owner and the Department of Housing and Urban Development ("HUD") or the Public Housing Agency. However, housing already under construction may be eligible for participation if all subsequent actions are in compliance with this Part and if the Owner certifies and demonstrates to the satisfaction of HUD that:

(1) At the date of application to HUD, a substantial amount of construction (generally at least 25 percent) remains to be completed; and

(2) At the date of application to HUD, the project cannot be completed without a commitment for assistance under this Part; and

(3) At the time construction was initiated, all of the parties reasonably expected that the project would be completed without assistance under this Part. (c) Conversions of section 23 projects to the Section 8 program will be permitted where appropriate, provided that all parties (including HUD) agree to the terms and conditions.

§ 1273.102 Definitions.

(a) Agreement to enter into housing assistance payments contract ("Agreement"). (1) In the case of a PrivateOwner Project or a PHA-Owner Project,

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a written agreement between the Owner and HUD that, upon satisfactory completion of the housing in accordance with the HUD-approved Final Proposal, HUD will enter into a Housing Assistance Payments Contract with the Owner. (See Appendix I of this part.)

(2) In the case of a Private-Owner/ PHA Project, a written agreement between the private Owner and the PHA, approved by HUD, that, upon satisfactory completion of the housing in accordance with the HUD-approved Final Proposal, the PHA will enter into a Housing Assistance Payments Contract with the private Owner. (See Appendix IV of this part.)

(b) Allowance for utilities and other services ("Allowance”). An amount determined or approved by HUD as an allowance for the cost of utilities (except telephone) and charges for other services payable directly by the Family. In the case of a proposal under which the Families must pay directly for one or more utilities or services, the amount of the Allowance is deducted from the Gross Rent in determining the Contract Rent and is included in the Gross Family Contribution.

(c) Annual contributions contract ("ACC"). In the case of a PrivateOwner/PHA Project, a written agreement between HUD and the PHA to provide annual contributions to the PHA with respect to the project. (See Appendix III of this part.)

(d) Contract rent. The rent payable to the Owner under his Contract including the portion of the rent payable by the Family. In the case of a cooperative, the term "Contract Rent" means charges under the occupancy agreements between the members and the cooperative.

(e) Decent, safe, and sanitary. Housing is Decent, Safe, and Sanitary at project completion if the dwelling units and related facilities are accepted by HUD as meeting the requirements of the Agreement. (See § 1273.216.) Housing continues to be Decent, Safe, and Sanitary if it is being maintained in a condition substantially the same as that on acceptance, in all pertinent respects, including the following:

(1) Condition of the exterior (including the grounds) and the interior of the structure and of the housing unit;

(2) Operating condition of sanitary facilities and of solid and liquid waste disposal facilities;

(3) Operating condition of kitchen facilities, including range and refrigerator, sink, and space for storage of food and for storage of utensils and dishes; (4) Operating condition of heating, lighting and ventilating equipment and/ or other facilities; and

(5) Size, number of rooms, and furnishability in relation to the size and type of Family in occupancy in accordance with any applicable State or local codes.

(f) Eligible family ("Family"). A Family which qualifies as a Lower-Income Family and which meets the other requirements of the Act and this Part. The term Family includes an elderly, disabled, handicapped, or displaced person and the remaining member of a tenant family as defined in section 3(2) of the Act. A Family's housing assistance payment may continue until its Gross Family Contribution equals the Gross Rent for the dwelling unit it occupies, but the termination of housing assistance payments at such point shall not affect the family's other rights under its Lease nor shall such termination preclude resumption of payments as a result of subsequent changes in income or other relevant circumstances during the term of the Contract.

(g) Fair market rent. (1) The rent, including utilities (except telephone), ranges and refrigerators, parking, and all maintenance, management and other services, which, as determined at least annually by HUD, would be required to be paid in order to obtain privately developed and owned, newly constructed rental housing of modest (non-luxury) nature with suitable amenities and sound architectural design meeting the objectives of the HUD Minimum Property Standards.

(2) Separate Fair Market Rents will be established for dwelling units by various sizes (number of bedrooms) and types (e.g., elevator, row, detached, mobile homes; housing designed for the elderly or handicapped shall be a separate type for this purpose).

(3) The Fair Market Rents will be published in the FEDERAL REGISTER, and, in order to allow for the period of construction, computation of the published Fair Market Rents will include HUD's estimate of anticipated rent increases during an appropriate future period as stated in the publication. Accordingly, for any given project for which the scheduled construction time will be less

than such future period, an appropriate reduction will be made in determining the approvable Contract Rent.

(4) The Fair Market Rent, minus the amount of any applicable Allowance for Utilities and Other Services payable directly by the Family, shall be the maximum amount that can be approved as the Contract Rent, except that the maximum approvable amount may be lower as stated in paragraph (g)(3) of this section and may be higher or lower as provided in § 1273.103(f).

(h) Final proposal. A proposal to provide newly constructed housing submitted in response to a HUD notification of selection of Preliminary Proposal. (See § 1273.204 and §§ 1273.208-1273.210.)

(i) Gross family contribution. The portion of the Gross Rent payable by an Eligible Family, i.e., the difference between the amount of the housing assistance payment payable on behalf of the Family and the Gross Rent.

(j) Gross rent. The Contract Rent plus any Allowance for Utilities and Other Services.

(k) HCD act. The Housing and Community Development Act of 1974.

(1) Housing assistance payments contract ("Contract").

(1) In the case of a Private-Owner Project or a PHA-Owner Project, a written contract between the Owner and HUD for the purpose of providing housing assistance payments to the Owner on behalf of Eligible Families. (See Appendix II of this part.)

(2) In the case of a Private-Owner/ PHA Project, a written contract between the private Owner and the PHA, approved by HUD, for the purpose of providing housing assistance payments to the Owner on behalf of Eligible Families. (See Appendix V of this part.)

(m) Housing assistance payments on behalf of eligible family. The amount of housing assistance payment on behalf of an Eligible Family determined in accordance with schedules and criteria established by HUD. (See § 1273.103 (t).)

(n) HUD. The Department of Housing and Urban Development or its designee.

(0) Income. Income from all sources of each member of the household as determined in accordance with criteria established by HUD.

(p) Invitation for preliminary proposals-new construction (“invitation for preliminary proposals"). A notice published by HUD inviting the submission of

Preliminary Proposals in accordance with this Part. (See § 1273.203.)

(q) Lease. A written agreement between an Owner and an Eligible Family for the leasing of a decent, safe, and sanitary dwelling unit in accordance with the applicable Contract, which agreement is in compliance with the provisions of this Part.

(r) Local housing assistance plan. A housing assistance plan submitted by a unit of general local government and approved by HUD under section 104 of the HCD Act or, in the case of a unit of general local government not participating under Title I of the HCD Act, a housing plan which contains the elements set forth in section 104(a) (4) of the HCD Act and which is approved by the Secretary as meeting the requirements of section 213 of that Act.

(s) Lower-income family. A family whose income does not exceed 80 percent of the median income for the area as determined by HUD with adjustments for smaller or larger families, except that HUD may establish income limits higher or lower than 80 percent on the basis of its findings that such variations are necessary because of the prevailing levels of construction costs, unusually high or low incomes, or other factors.

(t) New communities. New community developments approved under Title IV of the Housing and Urban Development Act of 1968 and Title VII of the Housing and Urban Development Act of 1970.

(u) Owner. Any private person or entity, including a cooperative, or a PHA, having the legal right to lease or sublease newly constructed dwelling units.

(v) PHA-owner proposal and PHAowner project. A proposal for a project under this Part (and the resulting project) to be owned by a PHA throughout the term of the Agreement and Contract where such Agreement and Contract are to be entered into between the PHA and HUD.

(w) Preliminary proposal. A proposal to provide newly constructed housing submitted in response to a HUD Invitation for Preliminary Proposals. (See §§ 1273.203-1273.208.)

(x) Private-owner/PHA proposal and private-owner/PHA project. A proposal for a project under this Part (and the resulting project) to be owned by a private Owner throughout the term of the Agreement and Contract where such Agreement and Contract are to be entered into

between the private Owner and the PHA pursuant to an ACC between the PHA and HUD.

(y) Private-owner proposal and Private-owner project. A proposal for a project under this Part (and the resulting project) to be owned by a private Owner throughout the term of the Agreement and Contract where such Agreement and Contract are to be entered into between the private Owner and HUD.

(z) Public housing agency (“PHA”). Any State, county, municipality, or other governmental entity or public body (or agency or instrumentality thereof) which is authorized to engage in or assist in the development or operation of housing for low-income Families.

(aa) Secretary. The Secretary of Housing and Urban Development.

(bb) Very low-income family. A family whose income does not exceed 50 percent of the median income for the area, as determined by HUD, with adjustments for smaller or larger families.

§ 1273.103 Basic policies.

(a) Limitation on use of newly constructed housing. (1, No proposal for housing to be constructed may be approved by HUD unless HUD requirements implementing the provisions of sections 213(a), (b), and (c) of the HCD Act regarding review by the unit of general local government have been satisfied.

(2) New construction projects shall be permitted only where: (i) HUD determines that there is not and there is not likely soon to be an adequate supply of existing housing which, with the aid of housing assistance payments provided under the Section 8 Housing Assistance Payments Program-Existing Housing, can meet the needs of Eligible Families, or (ii) the proposed project is specifically approved by HUD in accordance with priorities established from time to time by the Secretary including priorities for New Communities.

(b) Preference for certain types of projects (1) 20 percent projects. Assistance payments may be made with respect to up to 100 percent of the dwelling units in any structure or project. However, within the category of projects that are not designed for use primarily by the elderly and the handicapped and which involve the construction of more than 50 units, a preference will be provided for projects in which housing as

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