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Eligibility for continued occupancy. 


Directive Number: 203.674 


 
(a) Occupancy because of temporary, permanent, or long-term illness
or injury of an individual residing in the property will be limited to a
reasonable time, to be determined by the Secretary on a case-by-case
basis, and will be permitted only if all the conditions in this paragraph
(a) are met:
 
(1) A timely request is made in accordance with Sec. 203.676,
    including the submittal of documents required in Sec. 203.675(b)(4).
 
(2) The occupant agrees to execute a month-to-month lease, at the
    time of acquisition of the property by the Secretary and on a form
    prescribed by HUD, and to pay a fair market rent as determined by the
    Secretary. The rental rate shall be established on the basis of rents
    charged for other properties in comparable condition after completion of
    repairs (if any).
 
(3) The occupant's total housing cost (rent plus utility costs to be
paid by the occupant) will not exceed 38 percent of the occupant's net
effective income (gross income less Federal income taxes). However, a
higher percentage may be permitted if the occupant has been paying at
least the required rental amount for the dwelling, or if there are other
compensating factors (e.g., where the occupant is able to rely on cash
savings or on contributions from family members to cover total housing
costs).
 
(4) The occupant agrees to allow access to the property (during
normal business hours and upon a minimum of two days advance notice) by
HUD Field Office staff or by a HUD representative, so that the property
may be inspected and any necessary repairs accomplished, or by a sales
broker.
 
(5) The occupant discloses and verifies Social Security Numbers, as
provided by part 200, subpart T, of this chapter.
 
(b) An occupant who does not meet the illness or injury criteria in
paragraph (a) of this section is eligible for continued occupancy only if
all the conditions in this paragraph (b) are met:
 
(1) A timely request is made in accordance with
Sec. 203.676.
 
(2) The occupant agrees to execute a month-to-month lease, at
the time of acquisition of the property by the Secretary and on a form
prescribed by HUD, to pay fair market rent as determined by the
Secretary, and to pay the rent for the first month in advance at the time
the lease is executed. The rental rate shall be established on the basis
of rents charged for other properties in comparable condition after
completion of repairs (if any).
 
(3) The occupant will have been in occupancy at least 90 days before
the date the mortgagee acquires title to the property.
 
(4) The occupant's total housing cost (rent plus utility costs to be
paid by the occupant) will not exceed 38 percent of the occupant's net
effective income (gross income less Federal income taxes). However, a
higher percentage may be permitted if the occupant has been paying at
least the required rental amount for the dwelling, or if there are other
compensating factors (e.g., where the occupant is able to rely on cash
savings or on contributions from family members to cover total housing
costs).
 
(5) The occupant agrees to allow access to the property (during
normal business hours and upon a minimum of two days advance notice) by
HUD Field Office staff or by a HUD representative, so that the property
may be inspected and any necessary repairs accomplished, or by a sales
broker.
 
(6) The occupant discloses and verifies Social Security Number, as
provided by part 200, subpart T, of this chapter.
 
(Approved by the Office of Management and Budget under control
number 2502-0268)
 
[53 FR 874, Jan. 14, 1988, and 53 FR 8626, Mar. 16, 1988, as
amended at 54 FR 39693, Sept. 27, 1989; 56 FR 46967, Sept. 16, 1991]



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