PROCEDURE NOTICE

RD HANDBOOK CHANGES INSERT RD HB-1-3550 DIRECT SINGLE FAMILY HOUSING LOANS AND GRANTS - FIELD OFFICE HANDBOOK. This Handbook is partially revised. The specific revisions are outlined below.

NOTE: All Chapters of HB-1-3550 now have the following disclosure added to the bottom of each page:

DISCLAIMER: The contents of this guidance document does not have the force and effect of law and is not meant to bind the public in any way. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies.

Chapter 3:

Paragraph 3.8 (D) removed language regarding obligating subject to appraisal, which is not permitted.

Paragraph 3.11 updated to require monthly reviews of applications on hand in UniFi. As well as guidance that a Certificate of Eligibility (COE) should not be issued in conjunction with Handbook (HB) Letters 2, 3-A, or 3-B, if funds are not available.

Paragraph 3.12 added clarification to issue HB Letter 2 if a COE is expiring when funds are not available as well as if a purchase agreement falls through and there are no funds available.

Paragraph 3.14 added clarification that applicants previously issued HB Letter 2 are to be included in the waiting list review and sent HB Letter 3-A when reviewing the waiting list for periodic updates.

Attachment 3-A:

• Page 2 of 29: Changed permissible packaging fee to $750 for certified packaging bodies with, and without, an intermediary, as well as for intermediaries acting as a certified packaging body.
• Page 3 of 29: Changed permissible packaging fee to $750 for certified packaging bodies with, and without, an intermediary.

RD HANDBOOK CHANGES

INSERT RD HB-1-3550 (Con.)

Chapter 3:

Attachment 3-G:

• Page 3 of 9: Added language for State Director concurrence prior to issuance of Certificate of Eligibility.
• Page 4 of 9: Removed HB Letter 4, and added language for State Director concurrence prior to issuance of Handbook Letter 16-A or 16-B.
• Page 6 of 9: Added language for State Director concurrence prior to loan approval.
• Page 6 of 9: removed language permitting obligations subject to appraisal.

Chapter 4:

Paragraph 4.3(B)(10) has been removed; benefits received from the Supplemental Nutrition Assistance Program (SNAP) are not included in repayment income.

Paragraph 4.3(C)(14) updated to reflect SNAP is not included for annual and repayment income.

Paragraph 4.11 (A):

• Removed the Administrator having the authority to grant exceptions to delinquent federal debt.
• Removed providing evidence of a satisfactory payment arrangement on an outstanding federal debt as an acceptable resolution to continue with an application.

Paragraph 4.14(A) removed the authority to grant exceptions for delinquent federal debts.

Paragraph 4.24 removed Exhibit 4-6 which contained guidance on establishing a minimum area loan amount.

Paragraph 4.25 added language clarifying:

• If funds were previously obligated, but the property contract fails, funds should be de-obligated because approval and obligation are based on both the applicant and the specific property’s eligibility. If no funds are available when a contract fails, the applicant will be sent Handbook Letter 2 informing the applicant that funds are not available.

RD HANDBOOK CHANGES

INSERT RD HB-1-3550 (Con.)

Attachment 4-D:

• Page 1 of 9: added individuals valid T-Nonimmigrant status of T5 or T6 as eligible for assistance.
• Page 6 of 9: added clarification that applicants are not eligible for program assistance if the Systematic Alien Verification for Entitlements (SAVE) response is “Temporary Resident – Temporary Employment Authorized”. Also updated SAVE responses that render an applicant not eligible per Provision of Law Code(s).

Chapter 5:

Paragraph 5.6(A) updated to establish the standard loan limit as 60% of local HUD 203(b) limit in effect and removed language regarding exceptions to these limits.

Paragraph 5.8 removed language permitting obligations subject to appraisal.

Chapter 6:

Paragraph 6.8(A) updated to clarify guidance regarding State Director approval of 38-year term at COE issuance, and when a term should be reduced from 38- to 33-years.

Chapter 7:

Attachment 7-B, updated Tax Service Fees to whole dollar amounts.

Chapter 8:

Paragraph 8.2(B) removed language permitting obligations subject to appraisal.

Chapter 10:

Paragraph 10.1(A) updated the percent received from a recognized affordable housing agency necessary to receive priority processing to at least 10 percent loans funds and grant only amount to 5 percent.

Paragraph 10.3(A) updated the percent of subsidized financing (e.g., affordable housing products) to align with percent changes elsewhere in the chapter.

Paragraph 10.3(B) added clarification that either market rate financing or affordable housing loans require 20 percent, but no more than 50 percent, of the financing in order for the Agency to subordinate its lien position.

RD HANDBOOK CHANGES

INSERT RD HB-1-3550 (Con.)

Exhibit 10-1 updated to allow Priority 4 processing with at least 10 percent financing from an Affordable Housing Loan program.

Exhibit 10-2 updated to allow Priority 4 processing with at least 5 percent forgivable loan, deferred payments, or grants.

Paragraph 10.9(E) updated the percent limitation to 10 percent.

Appendix 3:

Handbook Letter 2 added clarification to the status of a Certificate of Eligibility/Application due to lack of funds and added language regarding the Single Family Housing Guaranteed Loan Option.

Handbook Letter 3-B added language regarding the Single Family Housing Guaranteed Loan Option.

Handbook Letter 4 removed, and placeholder reserved at this time.