32 C.F.R. PART 239—HOMEOWNERS ASSISTANCE PROGRAM—APPLICATION PROCESSING
Title 32 - National Defense
Authority: Sec. 1013(f), 80 Stat. 1255, 1292; 42 U.S.C. 3301, 3302, 12 U.S.C. 1715n.
Source: 33 FR 2565, Feb. 3, 1968, unless otherwise noted.
This part establishes policy and procedures for (a) providing information on eligibility requirements and on benefits available under the Homeowners Assistance Program authorized by Pub. L. 89–754, Demonstration Cities and Metropolitan Development Act of 1966 (80 Stat. 1255, 1290) and (b) initial processing of applications for assistance under the Program. The provisions of this part apply to all Department of Defense components. The programs encompasses DoD military and civilian personnel as well as affected personnel of other Federal agencies. (a) It is the objective of the DoD to assure that all applications for assistance under the program are given full consideration and that benefits under the program are extended to all homeowners who are determined to be entitled to assistance in accordance with applicable policies and procedures. (b) Information on the program will be disseminated on the broadest possible basis by making full use of military and public news media and by distributing a fact sheet,1 1 Filed as part of original document. (c) All possible assistance will be given to prospective applicants by explaining the program as described in the fact sheet, verifying employment or military service records, and advising in the preparation of the application form. (a) Pursuant to the provisions of DoD Directive 5100.54, “Homeowners Assistance Program,” December 29, 19671 the Department of the Army will establish a central office to administer, manage, and execute the program under policies and procedures prescribed by the Assistant Secretaries of Defense (Installations and Logistics) or (Comptroller). In implementing the program that office or field components thereof will take all appropriate actions, including but not limited to: (1) Determination that a specific installation meets the requirements of Pub. L. 89–754, Demonstration Cities and Metropolitan Development Act of 1966 (80 Stat. 1255, 1290); (2) Determination as to the eligibility of each applicant; (3) Determine and advise as to the most appropriate type of assistance for each applicant; (4) Determine amounts to be paid and make such payments or, when appropriate, authorize and arrange for Federal acquisition of the applicant's property; and (5) Maintain such records and prepare such reports as may be necessary and/or required by ASD (I&L) and ASD (Comp). Field offices will be established at convenient locations throughout the United States to execute various functions of the central office as may be designated. (b) Pursuant to the provisions of DoD Directive 5100.54, “Homeowners Assistance Program,” December 29, 19671 the Department of the Army will establish an appeals procedure and will adjudicate appeals from applicants previously determined to be ineligible for assistance as well as from those who are dissatisfied with action on their claims. (c) Each Military Department and Defense Agency will appoint at least one representative at headquarters level to work with the central office and the Offices of ASD (I&L) and ASD (Comp) in order to insure that the operation of the program is effective insofar as that Department or Agency is concerned. Each military installation will establish liaison with the nearest field office to obtain any further guidance or assistance desired. (d) Each Department of Defense component will be furnished an initial supply of the application form and related fact sheet for distribution on a worldwide basis. An appropriate supply thereof will be distributed to each installation having a military or civilian personnel officer and also to such other activities and establishments as recruiting offices, reserve training centers, procurement offices, radar and missile sites, quality control offices, communications stations, etc., so that each may serve as a source of information on the program. Subsequent supplies of the application form and fact sheet will be procured by each DoD component as required. (e) Each installation or establishment not having a military or civilian personnel officer will be prepared to discuss the information contained in the fact sheet with each prospective applicant and to direct him to the nearest installation having a personnel or industrial relations officer for a more detailed explanation of the eligibility requirements and for initial processing of his application. (f) Each installation or establishment having a military or civilian personnel officer will insure that such officers, or other appropriate officers or officials, are designated to: (1) Provide information on the program in response to all inquiries, whether from prospective applicants or other interested parties. This will include explaining the purpose of the program, discussing eligibility requirements and benefits, providing copies of the fact sheet and application forms, and referring applicants to legal assistance officers for answers to questions of a legal nature. (2) Advise applicants in filling out Parts I and II of DD Form 16071 1 Filed as part of original document. (i) Evidence of homeownership may include contract of sale or deed to the applicant, receipts for mortgage and tax payments, etc. as well as contract of sale or deed of conveyance from the applicant, record of foreclosure, etc. if the home has been disposed of. (ii) Evidence of occupancy of the home by the applicant may include receipted utility bills, appointment affidavit (Standard Form 61), official correspondence or other Government forms showing the officially recognized residence address. (iii) Documents submitted in evidence of homeownership and occupancy should be notarized or certified true copies which are complete, accurate, and legible. Certification by the applicant will be acceptable. Note that generally original copies should not be submitted because DoD cannot be responsible for the safekeeping or return of original documents. (3) Upon receipt of a DD Form 16071 with Parts I and II completed, execute Part III of the form indicating the results of review of the applicant's service or employment. Official personnel records will be the only source of proof of service or employment; when such records are not available locally, they will be reviewed by reference to the National Personnel Records Center in St. Louis, to the personnel office at the applicant's current place of military service or Federal employment, or to any other office where the records are held. (i) If the review verifies that the applicant was serving or employed after November 1, 1964, or meets prescribed exceptions to that date, the personnel officer or other appropriate official will forward to the appropriate field office the completed DD Form 16071 with all supporting documents, in triplicate, together with a return envelope addressed to the applicant, for use by the field office in acknowledging receipt of the application. The application will be forwarded to the field office having jurisdiction for the purpose of this program over the base or installation where the applicant was serving or employed at the time of the closure announcement. The list of States (§239.5), or parts thereof, covered by each field office will be used for this purpose. The map1 may also be used as an aid in this determination. (ii) If the review does not verify the applicant's statement of service or employment as prescribed in paragraph (f)(3)(i) of this section, the personnel officer will enter a statement to that effect in Part III of the DD Form 16071 giving details of any discrepancies. The form will then be returned to the applicant, who will be advised that he may forward his application, with a return envelope addressed to himself, to the appropriate field office for further review. (iii) At the time of action under paragraph (f)(3) (i) or (ii) of this section the applicant will be informed that all future inquiries regarding his application must be directed to the field office. (4) Each installation or establishment which is designated to perform the actions required under this paragraph (f) will maintain a chronological record of each inquiry regarding the program with appropriate notation as to disposition for submission of periodic reports as required to the nearest field office. Article I—Introduction (a) Act means section 1013 of the Demonstration Cities and Metropolitan Development Act of 1966, Pub. L. 89–754, enacted November 3, 1966. (b) Secretary of Defense means the Secretary of Defense or an officer or employee of the Department of Defense empowered to exercise any of the functions of the Secretary of Defense under the Act. (c) DoD means the Department of Defense. (d) Secretary, HUD or HUD means the Secretary of Housing and Urban Development or an officer or employee of the Department of Housing and Urban Development empowered to exercise any of the functions of the Secretary of Housing and Urban Development under the Act. (e) Corps means the Office of the Chief of Engineers, Department of the Army. (f) Division/District Engineer means either the Division Engineer of the Corps or the District Engineer of the Corps, as applicable under the circumstances, having military jurisdiction in the area in which the property is located. (g) FHA means the Federal Housing Administration. (h) Assistant Commissioner-Comptroller means the Assistant Commissioner-Comptroller of the Federal Housing Administration. (i) FHA Insuring Office means the local insuring office of FHA having jurisdiction over the area where the property is located. (j) Fund means the Homeowners Assistance Fund, Defense, established pursuant to the authority contained in section 1013(d) of the Act. (k) Acquired property means property acquired pursuant to the Act. Article II—Policy and Objective (a) Avoid further depression of local real estate market conditions in areas where the housing market is depressed, and (b) Consistent with item (a) above and with the desirability of disposing of the properties as rapidly as feasible, seek to obtain the best possible financial return to the Fund. During the period properties are held by FHA, and when it is feasible and in the best interest of the Government, consistent with HUD/FHA policy as to Secretary, HUD-owned property in the areas acquired in the course of FHA mortgage insurance operations, properties will be rented to third parties at rates generally obtainable for comparable properties in the area. Article III—Acquisition and Assumption of Custody 1 Filed as part of original document. (a) HUD/FHA will accept custody of a property occupied under a lease which cannot be terminated and has an unexpired portion of less than 1 year provided all payments due under the lease are current, and provided, further, that the lessee will waive any right to exclusive extension of the lessee, other than month-to-month occupancy. (b) Owners or tenants, on a month-to-month basis, of acquired properties may be permitted a 30-day period following acquisition of title in the name of the United States to vacate the property. (c) Upon agreement with the Director of the FHA insuring office, HUD/FHA will accept custody of properties occupied under leases in excess of a year's duration. Article IV—Maintenance, Management and Disposal 1. Sale of the property for cash or through the use of a conventional uninsured mortgage. 2. Sale of the property providing for assumption of the existing mortgage indebtedness by the buyer or sale of the property subject to the existing mortgage indebtedness. 3. Sale of the property by use of FHA's insured private financing program or FHA's instant FNMA closing program if available. 4. Sale of the property by use of a purchase money mortgage taken by the Secretary, Department of Housing and Urban Development. In those cases where an existing mortgage is assumed and the assumptor subsequently defaults, the Fund will be responsible for all costs, expenses or losses sustained by HUD/FHA in satisfying the Government's liability on the mortgage. In the event it is advantageous to the Government to sell by assumption and the sales price is less than the outstanding mortgage balance, the Fund shall be responsible for the money which is required to reduce the outstanding principal balance of the mortgage. When, in order to facilitate the sale of acquired properties, FHA insures the mortgage, the Fund will be responsible for all expenses incurred by FHA on the first sale, including losses in connection therewith, as computed by the FHA Assistant Commissioner-Comptroller. Article V—Financing, Accounting, and Reporting On August 1 of each year HUD/FHA will submit a budget estimate to the Corps setting forth the estimated financial requirements for the activities that FHA is to perform for the Secretary of Defense pursuant to the terms of this agreement covering the then current fiscal year and the following budget year. The estimate, in terms of obligations/expenditures, should be by FHA insuring office jurisdiction and in the same cost categories as maintained in the automatic tape record as set forth in Article V, section 2, for each acquired property and as included in the monthly reimbursement request set forth in Article V, section 3, for all other expenses. On May 1 of each year FHA will furnish to the Corps in the same format as the August 1 statement an updated estimate of obligations/expenditures then estimated to be incurred in the succeeding fiscal year. Based on the estimated financial requirements, in consonance with budgetary and appropriation actions, the Corps will issue to FHA on July 1 of each year a reimbursable order including an obligation/expenditure limitation as to the amount which the FHA may, on a net basis, obligate/expend in anticipation of reimbursement from the Fund for that fiscal year. FHA will promptly advise the Corps whenever it determines that the performance of its responsibility under this Agreement requires any adjustment, together with an estimate and explanation of the changes needed so as to permit the continued effective operation of the program as contemplated under this agreement. The Corps of Engineers will arrange to provide for the necessary adjustment within its authority. Where this is unfeasible the Corps of Engineers will submit the requirement promptly to the Secretary of Defense. The Secretary of Defense will either provide the additional resources required or will directly advise FHA as to the course of action necessary to be taken pending the availability of additional resources. (a) The FHA identification number, which will be assigned by the FHA insuring office. The Corps will be advised of the FHA identification number on the copy of the FHA Form 1174 returned to the Corps per Article III, section 2. (b) Property address, entered by the Corps on the FHA Form 1174 within the space allotted in ADP records. (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. (l) 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). (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 (l) 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. (a) FHA 2750, Accounting Manual for Acquired Properties; (b) FHA Manual, Field Expense and Performance Handbook; (c) FHA Manual, Departmental Expense and Performance Handbook. Article VI—Finality of Action Article VII—Delegation of Authority [34 FR 18031, Nov. 7, 1969]
Title 32: National Defense
PART 239—HOMEOWNERS ASSISTANCE PROGRAM—APPLICATION PROCESSING
Section Contents
§ 239.1 Purpose.
§ 239.2 Applicability and scope.
§ 239.3 Objective and policy.
§ 239.4 Procedures.
§ 239.5 List of homeowners assistance field offices.
Appendix A to Part 239—Agreement, Homeowners Assistance Program Agreement Between the Department of Defense and the Department of Housing and Urban Development
§ 239.1 Purpose.
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§ 239.2 Applicability and scope.
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§ 239.3 Objective and policy.
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§ 239.4 Procedures.
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§ 239.5 List of homeowners assistance field offices.
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----------------------------------------------------------------------------------------------------------------Installation ordered to be closed in whole or in part located in: Send application to: Map reference----------------------------------------------------------------------------------------------------------------Connecticut, Maine, Massachusetts, New U.S. Army Engineer Division, 424 Trapelo 1 Hampshire, Rhode Island, Vermont. Rd., Waltham, Mass. 02154.New York, New Jersey............................ U.S. Army Engineer District, 1 11 East 16th 2 St., New York, N.Y. 10003.Maryland, Delaware, District of Columbia, U.S. Army Engineer District, Post Office Box 3 Pennsylvania, east of and excluding McKean, 1715, Baltimore, Md. 21203. Elk, Clearfield, Blair, and Bedford Counties.Virginia........................................ U.S. Army Engineer District, Fort Norfolk, 4 803 Front St., Norfolk, Va. 23510.Georgia, North Carolina, South Carolina......... U.S. Army Engineer District, Post Office Box 5 889, Savannah, Ga. 31402.Florida, east of and excluding Leon and Wakulla U.S. Army Engineer District, Post Office Box 6 Counties. 4970, Jacksonville, Fla. 32201.Florida, west of and including Leon and Wakulla U.S. Army Engineer District, Post Office Box 7 Counties, Alabama, Mississippi, Tennessee. 2288, Mobile, Ala. 36601.Kentucky, Ohio, Indiana, Clark, Floyd, and U.S. Army Engineer District, Post Office Box 8 Jefferson Counties only, West Virginia, 59, Louisville, Ky. 40201. Pennsylvania, west of and including McKean, Elk, Clearfield, Blair, and Bedford Counties.Illinois, Indiana except Clark, Floyd, and U.S. Army Engineer District, 219 South Jefferson Counties, Michigan, Minnesota, Dearborn St., Chicago, Ill. 60604. Wisconsin.Colorado, Iowa, Nebraska, North Dakota, South U.S. Army Engineer District, 6012 USPO and 10 Dakota, Wyoming. Courthouse, 215 North 17th St., Omaha, Nebr. 68102.Kansas, Missouri................................ U.S. Army Engineer District, 700 Federal 11 Office Bldg., 601 East 12th St., Kansas City, Mo. 64106.Arkansas, Louisiana, Oklahoma, Texas, east of U.S. Army Engineer District, Post Office Box 12 and including Hardeman, Foard, Knox, Haskell, 17300, Fort Worth, Tex. 76102. Jones, Taylor, Runnels, Concho, Menard, Kimble, Val Verde, Kinney, Maverick, Witt, Zapata, Starr, Hidalgo and Cameron Counties.New Mexico, Texas, west of and including U.S. Army Engineer District, Post Office Box 13 Lipscomb, Hemphill, Wheeler, Collingsworth, 1580, Albuquerque, N. Mex. 87103. Childress, Cottle, King, Stonewall, Fisher, Nolan, Coke, Tom Greene, Schleicher, Sutton, and Terrell Counties.California, south of and including San Luis U.S. Army Engineer District, Post Office Box 14 Obispo, Kern, and Inyo Counties, Arizona, 2711, Los Angeles, Calif. 90053. Nevada, Clark, and Lincoln Counties only.California, north of and including Monterey, U.S. Army Engineer District, 650 Capitol 15 Kings, Tulare, and Mono Counties, Nevada, Mall, Sacramento, Calif. 95814. except Clark and Lincoln Counties, Utah.Idaho, Montana, Oregon, Washington.............. U.S. Army Engineer District, 1519 Alaskan 16 Way, South, Seattle, Wash. 98134.Alaska.......................................... U.S. Army Engineer District, Post Office Box None 7002, Anchorage, Alaska 99501.Hawaii.......................................... U.S. Army Engineer District, Fort Armstrong, None Honolulu, Hawaii 96813.----------------------------------------------------------------------------------------------------------------Filed as part of original document.
Appendix A to Part 239—Agreement, Homeowners Assistance Program Agreement Between the Department of Defense and the Department of Housing and Urban Development
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