15-12. ADDITIONAL ACCEPTABILITY REQUIREMENTS FOR THE OWNER

• A. The owner must be:

  1. In good standing and not subject to administrative sanctions (i.e., debarment, suspension, unresolved adverse audit findings or a letter of findings under any fair housing or civil rights authority has failed to correct material violations of HUD rules);

  2. In compliance with the terms of the current Regulatory Agreement, Note, and Mortgage; and

  3. Current in debt service and all payments, including the reserve for replacement account (or current under a workout agreement).

Note: If the current owner is subject to administrative sanctions, they may still participate as the seller in the Transfer Program. Such owners may not receive funds from the transaction until all costs associated with bringing the project to an acceptable standard are covered.

• B. The owner must submit documentation with its Capital Repairs Program application to assist the AE in its review for compliance with the environmental regulations at 24 CFR Part 50. Details on the information required for the AE to conduct the environmental review are discussed at Section 15-13. A below. All repair or rehabilitation actions under the Capital Repairs Program will require environmental review. HUD environmental policy requires that there be a limitation of activities or actions by any direct or indirect parties to the transaction until HUD has completed the environmental review process.

• C. Owners are reminded also that their multifamily housing projects may be subject to physical accessibility requirements under HUD’s regulations implementing Section 504 of the Rehabilitation Act and/or the Fair Housing Act. An owner must submit documentation with its Capital Repair Project application to assist the AE in its review for compliance with applicable accessibility requirements (which could be conducted by or in concert with the applicable Regional FHEO Office or FHEO Program Center).