3 - PUBLIC HEARING ANNUAL ACTION PLAN

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Administrative Plan 4/1/2016 Page 15-16 If SAHA does not use a HUD-approved housing counseling agency to provide the counseling, SAHA should ensure that its counseling program is consistent with the counseling provided under HUD’s Housing Counseling program. 15-VII.G. HOME INSPECTIONS, CONTRACT OF SALE, AND SAHA DISAPPROVAL OF SELLER [24 CFR 982.631] Home Inspections SAHA may not commence monthly homeownership assistance payments or provide down payment assistance grants for a family until SAHA has inspected the unit and has determined that the unit passes HQS. An independent professional inspector selected by and paid for by the family must also inspect the unit. 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. SAHA may not require the family to use an independent inspector selected by SAHA. The independent inspector may not be a SAHA employee or contractor, or other person under control of SAHA. However, SAHA may establish standards for qualification of inspectors selected by families under the homeownership option. SAHA may disapprove a unit for assistance based on information in the independent inspector’s report, even if the unit was found to comply with HQS. Contract of Sale Before commencement of monthly homeownership assistance payments or receipt of a down payment 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 SAHA a copy of the contract of sale. The contract of sale must: • Specify the price and other terms of sale by the seller to the purchaser; • Provide that the purchaser will arrange for a pre-purchase inspection of the dwelling unit by an independent inspector selected by the purchaser; • Provide that the purchaser is not obligated to purchase the unit unless the inspection is satisfactory to the purchaser; • Provide that the purchaser is not obligated to pay for any necessary repairs; and • Contain a certification from the seller that the seller has not been debarred, suspended, or subject to a limited denial of participation under CFR part 24. Disapproval of a Seller In its administrative discretion, SAHA may deny approval of a seller for the same reasons a SAHA may disapprove an owner under the regular HCV program [see 24 CFR 982.306(c)]. 3-338