24 C.F.R. § 982.631 Homeownership option: Home inspections, contract of sale, and PHA disapproval of seller.
Title 24 - Housing and Urban Development
(a) HQS inspection by PHA. The PHA may not commence monthly homeownership assistance payments or provide a downpayment assistance grant for the family until the PHA has inspected the unit and has determined that the unit passes HQS. (b) Independent inspection. (1) The unit must also be inspected by an independent professional inspector selected by and paid by the family. (2) The independent inspection must cover major building systems and components, including foundation and structure, housing interior and exterior, and the roofing, plumbing, electrical, and heating systems. The independent inspector must be qualified to report on property conditions, including major building systems and components. (3) The PHA may not require the family to use an independent inspector selected by the PHA. The independent inspector may not be a PHA employee or contractor, or other person under control of the PHA. However, the PHA may establish standards for qualification of inspectors selected by families under the homeownership option. (4) The independent inspector must provide a copy of the inspection report both to the family and to the PHA. The PHA may not commence monthly homeownership assistance payments, or provide a downpayment assistance grant for the family, until the PHA has reviewed the inspection report of the independent inspector. Even if the unit otherwise complies with the HQS (and may qualify for assistance under the PHA's tenant-based rental voucher program), the PHA shall have discretion to disapprove the unit for assistance under the homeownership option because of information in the inspection report. (c) Contract of sale. (1) Before commencement of monthly homeownership assistance payments or receipt of a downpayment assistance grant, a member or members of the family must enter into a contract of sale with the seller of the unit to be acquired by the family. The family must give the PHA a copy of the contract of sale (see also §982.627(a)(7)). (2) The contract of sale must: (i) Specify the price and other terms of sale by the seller to the purchaser. (ii) Provide that the purchaser will arrange for a pre-purchase inspection of the dwelling unit by an independent inspector selected by the purchaser. (iii) Provide that the purchaser is not obligated to purchase the unit unless the inspection is satisfactory to the purchaser. (iv) Provide that the purchaser is not obligated to pay for any necessary repairs. (v) Contain a certification from the seller that the seller has not been debarred, suspended, or subject to a limited denial of participation under part 24 of this title. (d) PHA disapproval of seller. In its administrative discretion, the PHA may deny approval of a seller for any reason provided for disapproval of an owner in §982.306(c). [65 FR 55163, Sept. 12, 2000, as amended at 67 FR 64494, Oct. 18, 2002]
Title 24: Housing and Urban Development
PART 982—SECTION 8 TENANT BASED ASSISTANCE: HOUSING CHOICE VOUCHER PROGRAM
Subpart M—Special Housing Types
Homeownership Option
§ 982.631 Homeownership option: Home inspections, contract of sale, and PHA disapproval of seller.
