POLICIES & PROCEDURES

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BURNS PAIUTE TRIBE

HOUSING DEPARTMENT

POLICIES & PROCEDURES

Adopted by the Tribal Council on October 5, 2005

Amendments adopted by the Tribal Council on August 31, 2009

Amendments adopted by the Tribal Council on October 2, 2019

Table of Contents

GENERAL PROVISIONS 1

1.1. NAHASDA Objectives 1

1.2. Purpose I

1.3. Adoption I

1.4. Interpretation ]

ELIGIBILITY 2

2.1. Family Composition 2

2.2. Types of Families. 2

2.3. Income Limitations 3

2.4. Additional Criteria for Admission 3

2.5. Factors and information to be assessed 4

2.6. | Homeownership Counseling Program 4

APPLICATION PROCESS 4

3.1. Application 4

3.2. Eligibility Determination 5

3.3. Wait List 5

SELECTION PROCESS 6

4.1. General Provisions 6

4.2. Order of Selection 6

4.3. | Successorship 6

4.4. Transfers 8

4.5. Selection from Waiting List 8

4.6. Non-discrimination 9

4.7. Assignment of Homes 9

CERTIFICATION PROCESS 10

5.1. Initial Certification 10

5.2. Annual Reexamination 11

5.3. Special Reexaminations 12

5.4. Interim Reexamination 12

5.5. Adjustment for Utility Allowances 13

5.6. | Adjustments Due to Errors 13

5.7. Procedure for Reexamination 13

7. INSPECTIONS

7A.

7.2.

7.3.

7A,

75.

7.6.

8.1.

8.2.

8.3.

8.4.

8.5.

8.6.

8.7.

8.8.

8.9.

8.10.

8.11.

8.12.

CONVEYANCES AND CONVERSIONS

5.8. Failure to Report Income Changes

5.9. Failure to Report with Extenuating Circumstances

6. LEASING PROCESS

6.1. Execution of the Agreement

6.2. Participant Family change

6.3. Change of home

6.4. Amendments to Agreement or Rental Agreement

6.5. Termination of Agreement or Rental Agreement

6.6. Incurable breaches of Agreement or Rental Agreement

6.7. Payment of Required Monthly Payments

6.8. Principal Residency Requirement

6.9. Sublease Policy

6.10. Business Use of Home

6.11. Structural Modifications

Initial Inspection

Follow-up Inspection

Annual Inspection

Special Inspections

Vacate or Move-out Inspection

Project Inspections

Opportunity to Purchase

Purchase Price Schedule

Conveyance of the Home

Initiation of Process

Counseling

Interim Responsibilities

Closing Costs

Transfer of Title

Disposition of Proceeds

Conveyance of Homes on Leased or Restricted Land

Post-conveyance Modernization Work

Ineligible Homebuyers

8.13.

8.14.

9. COLLECTIONS

9.1. Amount of Required Monthly Payment

9.2. Failure to Meet Financial Obligations

9.3. Inability to Make Full Payment Due to Hardship

9.4. Partial Payment

9.5. Payment Agreements

9.6. | MEPA Application

9.7. Collection of Delinquencies

9.8. | Termination and Eviction

9.9. Reservation of BPHD rights

9.10. Collection after Move-out

10. MAINTENANCE

10.1. Definitions

10.2. Purpose and Objectives

10.3. Family Responsibilities

10.4. Types of Maintenance

10.5. Housing BPHD Responsibilities

10.6. Maintenance Program

il. GRIEVANCE POLICY.

11.1. Right to a Hearing

11.2. Definitions

11.3. Procedure Prior to a Hearing

11.4. Procedure to Obtain a Hearing

11.5. Notification to the General Manager of the Burns Paiute Tribe

11.6. Hearing Prerequisite

11.7. The Hearing

11.8. Decision of the General Manager of the Burns Paiute Tribe

11.9.

11.10. Applicant Grievance Procedures

Conversion from Homeownership to Low Rent

Conversion from Low-rent to Homeownership

Appeals from the General Manager of the Burns Paiute Tribe’s Decision

1.1.

1.2.

1.3.

1.4.

GENERAL PROVISIONS

NAHASDA Objectives

¢ to assist and promote affordable housing activities to develop, maintain, and operate

affordable housing in safe and healthy environments on Indian reservations and in other

Indian areas for occupancy by low-income Indian families;

e to ensure better access to private mortgage markets for Indian tribes and their members

and to promote self-sufficiency of Indian tribes and their members;

* to coordinate activities to provide housing for Indian tribes and their members with

Federal, State, and local activities to further economic and community development for

Indian tribes and their members;

e to plan for and integrate infrastructure resources for Indian tribes with housing

development for tribes; and

e to promote the development of private capital markets in Indian country and to allow such

markets to operate and grow, thereby benefiting Indian communities.

Purpose

The purpose of this Policy is to set forth standards for the Burns Paiute Housing BPHD (BPHD)

housing programs funded through the U.S. BPHD of Housing and Urban Development

(“HUD”), as well as:

e To provide guidelines enabling the Burns Paiute Housing BPHD (BPHD) staff to

administer the programs consistently and fairly;

¢ To provide training and orientation for newly hired staff;

° Yo provide answers to program questions beyond the scope of the Federal Regulations;

and,

¢ To educate Housing BPHD clients and the public of the basis for Housing BPHD decisions.

This policy pertains to the following programs funded by the Indian Housing Block Grant

(IHBG):

¢ The Homeownership Program, by which the Homebuyer enters into a lease with option to

purchase, known as the Mutual Help and Occupancy Agreement ("MHO"), with BPHD;

and

¢ The Rental Program, by which the tenant family enters into a Rental Agreement with

BPHD to rent a housing unit.

Adoption

The Admissions Occupancy Policy is adopted by, and may only be amended by, the Burns

Paiute Tribal Council

Interpretation

If any provision of the Admissions Occupancy Policy conflicts with the Federal Regulations (24

CFR § 1000), the Federal Regulations shall prevail. If any provision of this policy conflicts with

the Agreement or the Rental Agreement, the Agreement or Rental Agreement shall prevail.

However, in all instances the Agreement, the Rental Agreement, the regulations and this policy

shall be construed to achieve consistency and to fulfill the overall program goals.

ELIGIBILITY

Family Composition

Homeownership and Rental housing are provided to eligible Indian families. A Family can

consist of any of the following:

e An Elderly Family whose head or spouse meets the following definition:

2.1.

2.2.

ie]

60 years of age or older; or

is Disabled or a person with a disability.

e Two or more persons, at least one of whom is a minor, who will live regularly together in

the same home, and whose income and resources are available to meet the Family's needs,

with the following clarifications:

ie)

There can also be other unrelated persons living in the household, such as foster

children; if it is determined the home will not be overcrowded.

Persons residing with a Family to permit the employment of a sole wage earner, or

solely because the person is essential to the care of a family member, shall not be

considered a family member when determining eligibility.

¢ The remaining member of a tenant family (if in Rental housing, transfer to Tribally-owned

housing required).

Eligible Families.

2.2.1.

2.2.3.

2.2.4.

Low-Income Indian Families

The term ‘low-income family' means a family whose income does not exceed

80 percent of the median income for the area, as determined by the Secretary

with adjustments for smaller and larger families.

. Non-low income Indian Families

Pursuant to the conditions outlined in 24 CFR 1000.110, the BPHD may provide to non

low-income families if there are no eligible low-income families on the BPHD Waiting

List.

Essential Families

Families may be eligible for housing assistance provided that BPHD has

determined that the presence of the family is essential to the well-being of

Indian families, and that the need for housing for the family cannot

reasonably be met except under this program. In determining whether the

family is essential, BPHD shall consider any resolution of a federally

recognized tribal governing body or, if none exists, any other local

governing body.

Law Enforcement Officers

The BPHD may provide housing or housing assistance for a law enforcement if--

(A) the officer—

(i) is employed on a full-time basis by the Federal Government or a

State, county, or other unit of local government, or lawfully recognized

tribal government; and

(ii) in implementing such full-time employment, is sworn to

uphold, and make arrests for, violations of Federal, State, county,

or tribal law; and

(B) the recipient determines that the presence of the law enforcement officer

may deter crime.

2.3.

2.4.

Income Limitations

To be eligible, the family's Annual Income must meet the requirements set out below.

2.3.1.

2.3.2.

2.3.3.

2.3.4.

Maximum income

Except as provided below, the family's Annual Income cannot exceed the applicable

income limits for admission established by the Federal regulations as set forth in

Appendix A.

Exception to maximum income limit

Q BPHD may provide for admission of applicants to the Homeownership

Program and Rental Housing Program whose income is between 80% and

100% of median income, as specified in Appendix A, if it is determined that

there is a need for housing for such families that cannot reasonably be met

except under this program.

Q Total Indian Housing Block Grant (IHBG) funds used for this purpose cannot

exceed 10% of the annual grant allocation.

Q Unless the family is determined to be essential and there is no other housing

available, assistance will be prorated as required by program regulations.

Q Income limits apply to all applicant families and to existing families who are

moving and a new Lease or Agreement is required. Families must be

determined eligible at the time the Lease or Agreement is signed. Families do

not become ineligible if their income increases above the income limit after

they have entered into an Agreement with the BPHD.

Minimum income

Homeownership Program only: Families must have sufficient income to make

monthly house payments, utility payments and perform maintenance of the home. To

be eligible the family must have earned income of at least $10,000 per year from a

permanent job (source of income is reliable and will be ongoing).

Estimating income

If it is not feasible to anticipate a level of income over a 12-month period, the income

anticipated for a shorter period may be annualized, subject to a re-determination at the

end of the shorter period.

Additional Criteria for Admission

To be eligible for the Homeownership or Rental Housing Program, applicants must be able to

comply with program requirements. Also, a family whose conduct in present or prior housing

is likely to diminish the health, safety, welfare, or quiet enjoyment of other tenants, or to

adversely affect the project environment, the physical condition of the home or neighborhood,

or the Housing BPHD's financial ability to operate the program and enforce tenant obligations

without undue burden, will not be admitted. Past habits and practices with respect to housing

occupancy will be assessed to determine eligibility. Disqualifying factors include:

2.4.1.

2.4.2.

Outstanding debts

No family will be admitted who has an outstanding debt as a result of a previous BPHD

or Tribal housing tenancy, notwithstanding any repayment agreement, or to any utility

company, which would prohibit the family from obtaining utility services. To be

considered for eligibility, the family must repay the debt in full.

Fraud

No family will be admitted whose head or spouse has committed fraud as a participant

or applicant in any housing program administered by a Housing Authority, or other

publicly funded housing program.

2.4.3. Drug-related criminal activity

No family will be admitted who has a member with a history of engaging in drugrelated criminal activity, as defined in this policy.

2.4.4. History of violence

No family will be admitted who has a member who has a history of engaging in violent

criminal activity, as defined in this policy.

2.4.5. Ability to perform obligations

Homeownership Program only: In addition to the above eligibility criteria, applicants

to the Homeownership Program must demonstrate their ability and willingness to

maintain the home. This ability must include the financial resources available for

maintenance purposes and the physical abilities of the family members to perform this

maintenance, or the ability of the family to access maintenance services. Past tenant

history will be considered by the Housing BPHD.

2.5. Factors and information to be assessed

Eligibility will be determined by reviewing such factors as previous occupancy with the Housing

BPHD, landlord references, information from neighbors and persons with relevant knowledge

of habits and practices, credit reports and criminal background checks. If unfavorable

information is received, BPHD considers the time, nature, and extent of the past occurrence

and the reasonable probability of future favorable performance. Such factors as the length of

time since the last evidence of such activities, the seriousness of the conduct, and the record of

rehabilitation efforts on behalf of the family member(s) will be relevant.

2.6. Homeownership Counseling Program

Homeownership Program only: Applicants to the Homeownership Program must agree to

participate in the Housing BPHD's Counseling Program, including attending all training

sessions. Prior to occupancy, applicants will receive training in the following areas:

Q Explanation of the Homeownership program

Q Community resources and services

Q Property care, landscaping and maintenance (including mold prevention)

Q Budgeting, money management and insurance

QO Fire safety

Failure or refusal to participate in counseling authorizes BPHD to terminate the admissions

process at any time.

3. APPLICATION PROCESS

This section sets out procedures for obtaining and verifying information from applicant Families for

purposes of determining whether they meet the conditions of eligibility for participation (Section 2,

above).

3.1. Application

3.1.1. Open process

Unless the waiting list is closed per Section 3.3.2, applications are accepted from all

families seeking participation in the Program.

4-3-3.

4-3-4.

4.3.5.

4.3.6.

4.3.7.

4.3.8.

Q Transfer to a retirement home, elder housing, nursing home, care facility, or

family member's home due to age, illness, or inability to care for one self or to

live independently in a single family home requiring maintenance;

Eligibility of successor

To be eligible, the designated successor must:

Q bean adult person who will promptly make the home his or her primary

residence;

Q be willing and able to pay the Administration Charge (or higher Required

Monthly Payment, depending on income) and to perform all Homebuyer

obligations under the Homeownership Agreement, including maintenance and

replacements;

Q satisfy program eligibility requirements (including family eligibility, income

standards, no other home-ownership, and Native/Indian status or waiver for

Non-Indians under Section 2.2) Occupancy standards under Section 4.7; and,

Q execute an assumption of the former Homebuyer's obligations under the

Homeownership Agreement, including responsibility to cure any nonmaintenance and accrued balance due.

Ineligible successors may exercise purchase option

Ifa designated successor satisfies all requirements except for program eligibility

standards, the successor may execute an outright purchase of the home.

Current homebuyers ineligible

A Homebuyer already occupying a BPHD Homeownership home is not an eligible

successor. This covers both Heads of Household and Spouses, both of whom are

considered Homebuyers.

Housing BPHD selection of successor

If the designated successor does not meet all requirements, or there is no designated

Successor, the BPHD may, but is not required to select a family member of the

Homebuyer who meets all requirements.

Succession to all rights and obligations

An eligible designated successor shall succeed to all rights and obligations of the

former Homebuyer, including all outstanding amounts owing to BPHD and any

balance in the Monthly Equity Payments Account (MEPA).

Guardianship agreements

Q Upon death or mental incapacity of the Homebuyer(s), there is no designated

eligible successor, and a minor child or children of the Homebuyer are living in

the home, BPHD may, in order to protect their continued occupancy and

opportunity for acquiring ownership of the home, approve as occupant of the

home an appropriate adult who has been appointed legal guardian of the

children with a duty to perform the obligations of the Homebuyer Agreement

in their interest and behalf.

Q The guardianship agreement shall remain in effect until the oldest child

reaches majority, at which time that person shall become the head of

household, if willing and eligible. If the oldest child is not willing to assume

the responsibilities of the home, the agreement may remain in effect until the

next oldest child reaches majority, so long as at least one child remains living

in the home.

Q Ifat any time before a child assumes full legal responsibility for the home as an

adult, the legal guardian becomes unwilling or unable to perform the

4.5.

obligations of the Agreement, and no other legal guardian is appointed,

possession of the home shall revert to BPHD.

4.3.9. Restricted land

In the case of a home on restricted land, an otherwise eligible successor who is

ineligible to receive the Housing BPHD's interest in the underlying land may

nonetheless succeed to the rights and obligations of the Agreement, provided that the

successor agrees to any Agreement modifications necessary or desirable to conform to

the land restrictions.

4.3.10. MEPA and Purchase Price Schedule

Successorship does not affect or interrupt the Purchase Price schedule, except that in

the event of a dispute between BPHD and potential successors, the General Manager of

the Burns Paiute Tribe may suspend the Purchase Price schedule pending and subject

to resolution or settlement of the dispute. All MEPA balances shall remain with the

home, with all related rights and obligations with respect to those funds going to the

successor family. No equity funds shall be paid to the former family in the event of

successorship. MEPA payout is available upon Agreement termination, only.

Transfers

An eligible Rental Program participant family may transfer into the vacancy.

4.4.1. Families eligible for transfer (Rental Program only)

A Rental family is eligible to transfer when:

Q The number of family members has permanently changed so that the current

home is no longer appropriate, and the vacant home is an appropriate size; or

Q The family has verifiable medical needs or a qualifying disability, which cannot

be accommodated in their present home, currently or after modification, and

the vacant home can accommodate such needs.

4.4.2. Current in payments

Before a family will be allowed to transfer to another home, all amounts owed to BPHD

must be paid.

4.4.3. Maintenance and repairs performed

If the unit of the family desiring to transfer requires maintenance, replacement or

repairs in order to prepare it for new occupants, BPHD may disallow transfer or

require the family to pay an amount equal to BPHD's estimate of the cost necessary to

complete the work. Ifthe actual cost exceeds the estimate, the Family shall be fully

responsible for payment.

Selection from Waiting List

If no Successor qualifies under Section 4.3, and no transfer occurs under Section 4.4, the

vacancy will be filled by selecting applicants from the waiting list, according to the occupancy

standards stated in Section 4.7. Once the pool of applicants matching the unit characteristics is

determined, the preferences stated below are applied.

4.5.1. Order of selection - general guidelines

Q Elderly families, as defined, will receive preference for housing units

designated for the elderly;

Q Families with one or more persons with a disability will receive a preference for

housing units with special accessibility features;

Q Families are to be selected in the order in which they appear on the waiting

list; and

4.6.

4.7.

Q Families must be selected from the top of the waiting list;

4.5.2. Order of selection

Selection shall be made in the following order, subject to the limitations in 4.5.1, above:

Q Enrolled Tribal members by date and time of application; and then

Q Other Native Americans by date and time of application.

4.5.3. Drug-related criminal activity

The BPHD will not admit an applicant if any member of the family was evicted from

assisted housing because of drug-related criminal activity during the three years prior

to the application date. "Assisted housing" means housing assisted under a Public or

Indian Housing Authority program. Admission may be granted if the applicant clearly

establishes, and BPHD determines, that in fact one of the following circumstances

exist:

Q_ The evicted person has successfully completed a rehabilitation program

approved by the BPHD.

Q_ The evicted person did not participate in or know about the drug-related

criminal activity.

Q The evicted person no longer participates in any drug-related criminal activity.

Non-discrimination

Except as required for Indian eligibility and preference, all Families will be selected without

regard to race, color, creed, religion, national origin, gender, handicap, disability or familial

status. No person will be excluded from participation in, or denied the benefits of, the program

because of membership in a class or group, such as unmarried mothers or recipients of public

assistance.

Assignment of Homes

To avoid overcrowding, BPHD matches family size to the bedroom size of Homeownership and

Rental homes in accordance with the following Occupancy Standards. Such standards may be

waived when necessary to achieve or maintain full occupancy.

4.7.1. Maximum and Minimum Family Size

Bedrooms Minimum Persons Maximum Persons

1 1 2

2 2 4

3 2 6

4 4 8

5 5 10

4.7.2. Minors in Family

To qualify for a housing unit there must be at least one minor child residing in the

household.

4.7.3. Notification of Families

‘After the BPHD determines that a home is available, and makes the initial selection in

accordance with Section 4.5, the following actions will be taken:

4.7.4.

4.7.5.

4.7.6.

4.7.7.

Notice

The family selected according to this Policy shall be notified promptly of the vacancy

and the approximate date the home will be ready for occupancy.

Family to provide information and participate in counseling

The family will also be given a period of time, not to exceed thirty days, to provide all

information necessary to complete the application and admission process. All families

shall also be given the opportunity to receive help in providing this information

through the BPHD's Homebuyer Counseling Program.

Failure to respond or participate

If the selected family does not respond to the BPHD's notification of a vacancy or does

not provide the necessary information within the required time, the applicant will be

removed from the waiting list, if applicable, and the BPHD shall proceed to select the

next eligible family.

Rejection of offer

Applicants who reject two offers of selection are moved to the bottom of the waiting

list, except that the following circumstances will not count as rejections:

Q The applicant is unable to move at the time of the offer and presents clear

substantiating evidence, for example a doctor verification that the applicant is

physically unable to relocate at the time required.

Q Accepting the offer would result in verified undue hardship to the applicant,

such as temporary or seasonal employment, participation in education, and

similar situations.

CERTIFICATION PROCESS

To assure that Families participating in the Program meet the eligibility requirements for

continued participation set forth in Section 2, and that such Families are paying the appropriate

Required Monthly Payment, family composition and Income are to be periodically reexamined and

re-determined in accordance with this policy. Families are required to provide full cooperation in

this process.

Initial Certification

Prior to signing a Homeownership or Rental Agreement, all families must certify their income,

and family status through an initial certification process.

5.1.

5.1.1.

5.1.2.

Verification

The head-of-household and spouse are required to execute a Release of Information

form which authorizes any depository or private source of income, or any Federal,

State, local or tribal agency to furnish or release to BPHD and/or to HUD such

information as BPHD and/or HUD determines to be necessary. The use or disclosure

of information obtained from a family or from another source pursuant to this release

shall be limited to purposes directly connected with the administration of the program

for which the family has applied.

Determination of Rents

Total Tenant Payment (TTP) shall be 30 percent of Monthly Adjusted Income, as

defined, less the applicable utility allowance. The maximum monthly rent shall be

$200.

If the family receives welfare assistance from a public agency and a part of such

payments, adjusted in accordance with the family’s actual housing costs, is specifically

5.1.3.

5.1.4.

5.1.5.

designated by such agency to meet the family’s housing costs, the monthly portion of

such payments that is so designated, less the applicable utility allowance.

Tenant Rent is computed by subtracting the utility allowance applicable to the size and

location of the family’s unit, from the Total Tenant Payment.

Senior Housing

Families living in BPHD Senior Rental Housing pay the lesser of the following

Q 30 percent of Monthly Adjusted Income, as defined, less the applicable utility

allowance; or

Q $155 per month.

Maximum Utility Allowance

The utility allowance shall be reduced as necessary so that it does not exceed the Total

Tenant Payment. No utility reimbursements shall be allowed.

Determination of Homebuyer Payment

Except for maximum payments, specified below, Homebuyer Payments shall be the

highest of the following:

Q 15 percent of Monthly Adjusted Income, as defined, less the applicable utility

allowance; or

Q the Administration Charge, as specified in the Homeownership Program

Operating Budget for the current year, up to a maximum of 30% of Monthly

Adjusted Income.

Maximum Homebuyer Payment

The maximum Homebuyer Payment shall be the sum of the Administration Charge and

the monthly debt service amount as shown on the Homebuyer’s Purchase Price

Schedule. However, in no event shall the Homebuyer Payment exceed 30% of a

family’s Monthly Adjusted Income.

Annual Reexamination

Reexaminations for all Families are conducted not less than once every twelve (12) months.

5.2.1.

5.2.2.

5.2.3.

5.2.4.

Scheduling

Annual Reexaminations are normally scheduled 60-90 days before the anniversary

date of the Agreement. When the reexamination is due, the Family will be notified by

letter of the date and time of the appointment. The Family will be requested to provide

information necessary for recertification prior to the time of the appointment.

Adjustments

After eligibility and Income have been determined, any adjustments in the Required

Monthly Payment required by this Section shall be made.

Interim reexamination

Determinations of eligibility and changes in Required Monthly Payment may be made

between annual reviews, if warranted, pursuant to this Section.

Income presumed if family fails to provide information

Ifa Family's monthly payment cannot be determined due to failure of to recertify

eligibility or supply information in a timely manner, the payment will be automatically

calculated based on the maximum income limits for a Family of that size and shall be

effective on the recertification date.

5.3. Special Reexaminations

If, at the time of admission to the program or reexamination, it is not possible to estimate

Adjusted Income for the next twelve (12) month period with reasonable accuracy because of (a)

unemployment and no anticipated prospects of employment or (b) conditions of employment

or receipt of income is so unstable as to render inaccurate the usual and normal standards for

determination, a special reexamination may be scheduled for a specified time depending upon

the BPHD's estimate of the time required for the Family circumstances to stabilize.

5.3.1.

5.3.2.

5-3-3-

5.3.4.

Continuance of special reexamination process

If, at the time of special reexamination, it is still not possible to make a reasonable

estimate of Adjusted Income, special reexaminations may continue to be scheduled and

conducted up until it is possible to make a reasonable estimate of Family Income.

Income patterns

If, at the time of admission to the Program or annual review, a Family is known to have

a history of widely fluctuating income over the past year(s) as a result of fluctuating

between employment and welfare or other assistance, special reexaminations are not

required where such fluctuations show a pattern that is expected to continue.

Projecting income

If, at the time of admission to the program, reexamination, or Special Reexamination,

it is not possible to reasonably estimate Adjusted Income for the next twelve (12)

month period, the Family's rate of Income, based on the Income which the Family is

expected to receive from the date of the current examination to the date of the next

examination shall be projected for a twelve-month period even though it is anticipated

that income may fluctuate substantially, and even though another annual or Special

Reexamination is scheduled. The monthly payment remains in effect until the next

annual review or interim re-determination.

Zero income

If, at the time of admission or annual review, a Family reports no income, the lack of

income shall be appropriately documented. The Family shall be required to re-verify

their income situation on a monthly basis until such time as a source of income is

documented.

5.4. Interim Reexamination

5.4.1.

5.4.2.

Reporting changes

In addition to submitting information required at the time of annual or special

reexamination, Families shall report to the BPHD the following changes in Family

circumstances, within ten (10) days:

Q Changes affecting family composition: loss or addition of any Family member

through marriage, death, divorce, birth, adoption or any other circumstances.

Q Changes affecting Income: increases or decreases in income as a result of

changes in Family composition, employment, benefits, or any other reason.

Procedure

Upon receipt of a report of a change in family composition or income, BPHD shall

perform an interim re-determination of Adjusted Income as appropriate, and the

monthly payment will be adjusted as follows:

Q Increases in Required Monthly Payments between periodic reexaminations are

effective the first day of the second calendar month following the month in

which the changed circumstance occurred.

Q Decreases in Required Monthly Payments between periodic reexaminations

5.5.

5.6.

5.7.

are effective the first day of the month following the month during which the

changed circumstance was verified.

Adjustment for Utility Allowances

At least annually, and at such other times as deemed appropriate, the BPHD shall determine

whether there has been a substantial change in utility rates and whether an adjustment is

required in the Utility Allowances.

5.5.1. Notice of adjustment

If the BPHD determines that an adjustment should be made, affected Homebuyers will

be given notice of the Utility Allowance revisions not less than sixty (60) days prior to

the proposed effective date of such revisions. Homebuyers will be provided an

opportunity to submit written comments during a period expiring not less than thirty

(30) days prior to the proposed effective date of the allowance revisions.

5.5.2. Effective date of change

Changes in payments shall become effective the first day of the month following the

date of adoption of the Utility Allowance by the Board of Commissioners. Homebuyers

whose rent increases due a Utility Allowance adjustment shall receive at least thirty

(30) days’ notice of such increase.

Adjustments Due to Errors

In the case of error or mistake, BPHD will adjust the Required Monthly Payments in a manner

designed to discourage misrepresentation and to encourage diligent Homebuyer and BPHD

action.

5.6.1. Retroactive adjustments

Adjustments to Required Monthly Payments shall be retroactive to the first day of the

rent period affected when there is:

anerror due to mistake or misrepresentation by the Family, where the

corrected determination results in increased rent;

Q a good faith error which, when corrected, results in decreased rent.

5.6.2. Prospective adjustment

An adjustment in monthly payment shall be effective the first day of the second month

following the date an error is found if the error was not the fault of the Family and the

corrected determination results in increased rent.

5.6.3. BPHD errors

BPHD will not calculate retroactive increases if an income change was reported in a

timely manner with sufficient verification provided and the BPHD failed to make the

appropriate adjustment. The term "error" does not include an estimate or projection of

Adjusted Income due to fluctuations or lack of information which is made in

accordance with this Policy, but which turns out to be inaccurate.

Procedure for Reexamination

5.7.1. Personal Declaration

The Head of Household shall complete a Personal Declaration form, and any additional

forms required, prior to the reexamination, and shall provide the information required

for BPHD to determine family composition and Annual Income.

5.7.2. Notice of Changes

At least thirty (30) days prior to the Anniversary date of the Agreement or the effective

5.8.

date of any changes in monthly payments, the Family will be notified in writing

concerning their eligibility status, any changes in monthly payments, and any amounts

owing as a result of mistake or inaction on the part of the Family.

5.7.3. False information

Upon determination by the BPHD that data supplied by the Family is false, misleading,

or contains a material omission, the BPHD may terminate the Agreement or adjust the

Required Monthly Payment retroactively.

Failure to Report Income Changes

If it is found at the time of reexamination or otherwise that the family failed to report changes

in family circumstances as they occurred and that such changes would have required the

Family to pay a higher monthly payment, the BPHD shall collect the increased payment,

including any accrued late charges, retroactive to the first of the month in which the changes

occurred. Unless the General Manager of the Burns Paiute Tribe approves a Payment

Agreement, as specified below, the amount shall be due and payable thirty (30) days from the

date of the notice to the Family specifying the amount owed.

Failure to Report with Extenuating Circumstances

The BPHD may allow a Family who has failed to report income changes, to enter into a

Payment Agreement in accordance with Section 9.5 under the following circumstances:

¢ The failure to report income changes was not an intentional misrepresentation of income;

e The family does not have the funds available to repay the debt; and,

¢ The debt is greater that the Family's gross monthly income.

6. LEASING PROCESS

A Homeownership Occupancy Agreement or "Agreement," which is a lease with an option to purchase,

must be entered into between BPHD and each Homebuyer. A Rental Agreement must be entered

into between BPHD and each Tenant. The Agreement shall be kept current and reflect the

obligations of Homebuyer, participant family and BPHD.

6.1.

6.2.

6.3.

Execution of the Agreement

The Head of Household and Spouse, if any, both of which are considered Homebuyers or

Renters throughout this Policy, and the authorized BPHD representative, shall execute the

Agreement or Rental Agreement prior to actual admission. A copy shall be given to the

participant family and the original shall be filed in the permanent record folder established for

the Family.

Participant Family change

If for any reason one of two original signers ceases to be an occupant, BPHD may require

execution of a new Agreement or Rental Agreement by the remaining signer, and, where

feasible, execution of a relinquishment by the absent signer. BPHD may also require

amendment of the Agreement or Rental Agreement to reflect a change in the Head of

Household, in order to accurately represent the interest and identity of the Homebuyer and any

Spouse. The "Spouse” may be an adult family member who agrees to the terms of the

Homeownership Agreement or Rental Agreement.

Change of home

If for any reason a Family transfers to a different home, the existing Agreement shall be

canceled, and the Participant shall execute a new Agreement or Rental Agreement for the home

into which the Family is moving.

6.4.

6.5.

6.6.

6.7.

Amendments to Agreement or Rental Agreement

Ifthe BPHD desires to change, amend or waive any provision of the Agreement with respect to

any individual or group of homebuyers or tenants, an appropriate addendum or amendment

shall be prepared, signed by the family and BPHD's representative, and attached to and made

part of the Agreement.

Termination of Agreement or Rental Agreement

Termination of the Agreement or Rental Agreement shall be in accordance with the terms of

the Agreement and applicable law. For terminations due to nonpayment or financial

ineligibility, BPHD has established specific procedures in Section 9. The general termination

procedure for breach of the Agreement or Rental Agreement for other reasons is stated below.

6.5.1. Notice of breach

When a breach of the Agreement or Rental Agreement has been identified, BPHD shall

discuss the noncompliance with the Homebuyer or Tenant as well as providing the

family with written notification identifying the breach, and giving the Homebuyer or

Tenant an opportunity to identify any extenuating circumstances, and an opportunity

to enter into a plan of action to correct the breach. If requested by the Homebuyer or

Tenant, a plan of action shall be agreed upon specifying how the homebuyer or tenant

will come into compliance, as well as any actions by BPHD that may be appropriate

and a deadline for the plan’s completion. The plan of action will be signed by the

BPHD representative and the Homebuyer or Tenant.

6.5.2. Notice of termination

If the homebuyer or tenant fails to enter into a plan of action, or fails or refuses to

comply with the plan of action, BPHD will issue a Notice of Termination, as provided in

Section 9. The Notice shall state the reasons for the termination, and will provide the

family with an opportunity to file a grievance according to the BPHD’s Grievance

Policy. BPHD may require the Homebuyer or Tenant to attend a mandatory

conference to discuss the noncompliance with the plan of action.

6.5.3. Eviction Notice

If the Agreement or Rental Agreement terminates as a result of the family’s failure to

cure the noncompliance after Notice of Termination, BPHD will issue an Eviction

Notice, as provided in Section 9.

Incurable breaches of Agreement or Rental Agreement

Certain breaches of the Agreement or Rental Agreement are of a nature so serious and

damaging to the project environment that BPHD is not required to offer a plan of action to the

Homebuyer or Tenant prior to termination. These include, but are not limited to, the

following:

¢ felonious criminal activity, such as alcohol & drug-related criminal activity and crimes

involving the abuse of minors;

¢ Domestic violence and violence, such as assault, use or threats of physical or deadly force;

use, discharge, or assaultive display of weapons in and around the development;

¢ maintenance of conditions hazardous to the health of the occupants and the project,

including maintenance of fire risks, discharge of pollutants or unsanitary waste.

BPHD's maintenance of insurance to cover the kinds of risk areas described above shall in no

way limit its right to take reasonable action to protect the project environment, neighboring

families, and BPHD property.

Payment of Required Monthly Payments

All monthly payments shall be made according to the procedures stated in the BPHD Collection

6.8.

6.9.

Policy (Section 9).

Principal Residency Requirement

Throughout the term of the Agreement or Rental Agreement, Homebuyers and Tenants must

use the home as their principal place of residence. Ownership or use of another residence is

prohibited, unless it is a secondary home necessary for the family's livelihood or for cultural

preservation, and it is not another IHA home. Any income derived from or as a result of the

use of the home must be reported and included in Annual Income.

6.8.1. Prior notice and approval of absences

Provided the family complies with the financial and maintenance obligations of the

Agreement or Rental Agreement, and takes reasonable steps for the proper

safeguarding of the home, the family may be absent for up to 30 consecutive calendar

days without providing advance notice to BPHD. All other absences from the home,

including an absence combined with occupancy by persons who are not Authorized

Family Members, requires prior written approval from the Housing BPHD.

“Authorized Family Member" means (a) the Homebuyer family, as listed on the

schedule to the Agreement; (b) children born to or adopted by members of such family

after the date of the Agreement, and foster children; (c) persons providing live-in care

of a member of the family, and (d) aged or widowed parents of the Head-of-Household

or spouse.

6.8.2. Abandonment

A family's absence from the home for a period exceeding the time stated in Section

6.8.1 without prior notice to and approval from BPHD; or a family's absence which

exceeds 7 days but is shorter than the period stated in Section 6.8.1, combined with

failure to pay and failure to take appropriate steps to safeguard the home, may be

deemed abandonment by BPHD, justifying immediate termination and repossession

without court action.

Sublease Policy

Homeownership Program only: In limited circumstances a Homebuyer family may receive

approval to sublease the home during an BPHD approved absence that is necessary, temporary

and nonrecurring. "Temporary" means an absence not exceeding two years.

6.9.1. Duration of sublease

The initial term of a sublease may be for a period of between thirty days and twelve

months. The sublease may be extended for additional periods, however under no

circumstances may an absence, for any reason or combination of reasons, exceed two

years. Failure to return to the home within the allowed time authorizes BPHD to

terminate the Agreement.

6.9.2. Allowable justifications

Subleasing is permitted only during the time period the Homebuyer or family member

is participating in one of the temporary activities specified below.

Q Education. An accredited program of training or education designed to

enable one or more family members to acquire the skills necessary to obtain

gainful employment.

Q Medical reasons. A medical or other rehabilitation program, including

confinement in a hospital or other facility, as required by a licensed physician,

or other qualified professional.

Q One-time employment or service opportunity. A one-time absence to

take a verified job or service opportunity, not to exceed one year. Any request

to sublease under this category more than once during the course of the

Homebuyers’ Homeownership participation, and any request to exceed the

one-year limit, is subject to approval by the General Manager of the Burns

Paiute Tribe.

Q Military service. The requirement for the family to relocate toa military

installation due to military service.

6.9.3. Subleasing disallowed

Subleases and temporary absences are not authorized for Homebuyers who have

committed substantial breaches of the Agreement. No Subleasing is authorized until

any amounts owed by the Homebuyer to BPHD are paid in full. No sublease shall be

permitted if the home is not in habitable condition.

6.9.4. Eligible sublessee

An eligible sublessee must meet all eligibility requirements Occupancy standards of

this policy, excluding the maximum income and Native requirements, as long as the

home will not be overcrowded according to the occupancy standards.

6.9.5. Notice, approval and form of sublease

The Homebuyer shall notify the Housing BPHD of the proposed temporary absence in

advance, specifying the anticipated length of the absence. Upon approval, the

Homebuyer and the sublessee must execute a Sublease Agreement in a form approved

by BPHD. The term of the Sublease shall not exceed the period of the anticipated

absence.

6.9.6. Homebuyer acknowledgment

As a condition of the Sublease, Homebuyers shall sign an Acknowledgment provided by

BPHD, which shall specify

Q their understanding that they will continue to be responsible for all obligations

under the Agreement during the sublease period;

Q their sole responsibility for managing the sublessee's occupancy compliance;

Q_ the dates of the temporary absence and their intent to return to make the home

their principal place of residence;

Q that termination may result if they do not return to occupancy within the

specified time or otherwise breach the Agreement, either through personal

action or through the action of their sublessee.

6.9.7. Sublease payment

The Homebuyers’ Required Monthly Payment shall continue to be based on the

Homebuyers’ income. The Homebuyer shall continue to cooperate in annual and

interim certification of income. The payment between the Homebuyer and the

Sublessee is not limited; however, the Homebuyer shall accurately report the sublease

payments received as income.

6.10. Business Use of Home

The Homebuyer or Tenant may operate a small business in the dwelling unit, subject to

approval from BPHD.

6.10.1. Conditions of use

The BPHD may grant permission for the business use if the Family provides written

assurances of the conditions stated below. Permission may be rescinded upon

violation of these conditions:

Q The dwelling unit will remain the Family’s principal residence.

Q The business activity will not disrupt the basic residential nature of the

6.11.

6.10.2.

housing site and neighborhood.

Q The business will not require permanent structural changes to the dwelling

unit that could adversely affect a future Family’s use of the dwelling unit.

Q The Family has a current business license and liability insurance, as applicable.

Q The activity does not violate zoning codes, project covenants and/or

homeowner association rules.

Procedure

The request from the Homebuyer to operate a small business must be submitted in

writing. The BPHD will verify that the proposed business is appropriate for the

location and meets the above conditions and guidelines. The BPHD will provide the

Homebuyer with written notification of approval or disapproval.

Structural Modifications

Homeownership Program only: A Homebuyer may not make any structural changes in or

additions to the dwelling unit unless the BPHD has determined that such change will not:

e impair the value of the home, the surrounding homes, or the project as a whole;

¢ affect the use of the home for residential purposes; or

¢ violate any Federal, State or local building code requirements as to construction and/or

design.

6.11.1.

6.11.2.

6.11.3.

6.11.4.

6.11.5.

Approvable alterations and additions

Additions which may be approved include, but are not limited to, energy conservation

items such as solar panels, wood-burning stoves, flues and insulation.

Homebuyer expense

Any changes made in accordance with this section shall be at the Homebuyer's

expense, and in the event of termination of the Agreement, the Homebuyer shall not be

entitled to any compensation for such alterations, additions, or improvements, which

automatically become the property of the Housing BPHD.

No liens

The Homebuyer shall not permit any liens or liabilities to encumber the unit, including

mechanics or suppliers liens. In the event Homebuyer breaches this requirement,

BPHD may take any reasonable action to protect itself, the home and the land from

encumbrances and liability, and may withhold payout of any MEPA balance or other

funds pending the Homebuyers' satisfaction of such liability.

Procedure

A Homebuyer who wishes to make any structural changes in or additions to the home

must provide a written request, with plans and/or specifications, to the BPHD for

written approval prior to beginning any modifications. The Homebuyer shall specify

the time anticipated to make the improvement, and shall make all diligent efforts to

complete the work within the time specified. Failure to complete the work, if it results

in damage to or devaluation of the home, may constitute grounds for termination of the

Agreement.

MEPA loans

If the Homebuyer is in compliance with the terms of the Agreement and has a MEPA

balance, the BPHD may authorize the homebuyer to borrow from the MEPA to pay for

betterments or additions to the home, subject to the Homebuyers’ written agreement to

replenish the MEPA within a specific period, not to exceed 5 years.

7. INSPECTIONS

Homebuyers and Tenants are required to participate in inspections, intended for the BPHD to

determine whether the Family is complying with all maintenance and replacement responsibilities.

(See Maintenance policies, Section 10)

7.1.

7.2.

7.3.

Initial Inspection

An initial inspection of the home is required before Family move-in. Families shall not be

permitted to occupy a home before construction is complete or, in the case of a subsequent

Homebuyer or Tenant, until the home is repaired, cleaned and ready for occupancy.

7.1.1. Participants

The inspection shall be conducted with both the Head of Household and Spouse, if

possible, and the BPHD representative present.

7.1.2. Counseling opportunity

Homeownership Program only: The Homebuyer will be counseled and advised of the

maintenance and replacement responsibility during the inspection.

7.1.3. Documentation of conditions

The pre-occupancy condition of the home, as well as any deficiencies, missing items,

necessary repairs, and similar facts shall be entered on the inspection report form

prescribed by the BPHD.

7.1.4. Use

The report shall be signed and dated by both the Head(s)-of Household and the BPHD.

Because the report serves as the official record documenting the condition of the home

at the time of occupancy, and may form the basis for move-out charges, if any, the

Head(s)-of Household shall be encouraged to read the report carefully before signing. -

The original inspection form shall become a permanent part of the Family's file, with a

copy of the report shall be provided to the Family.

Follow-up Inspection

A special interim inspection of the home shall be scheduled approximately two (2) months after

initial occupancy to ensure proper home care. This inspection will be waived if the regular

annual inspection will occur no more than four months after the move-in date.

7.2.1. Notification

The Family shall be given appropriate written notice of the date and of the inspection,

and the time of the inspection if feasible, as well as an explanation of the reasons for

the inspection.

7.2.2. Report

An inspection report shall be completed and signed by the Head(s)-of Household and

the BPHD representative. Deficiencies shall be discussed with the Family.

7.2.3. Inspection results

If the inspection shows adequate care by the Family, the next inspection will be

conducted in accordance with Section 7.3, below. If inadequacies are revealed, an

interim inspection, as set forth in Section 7.4, shall be scheduled.

Annual Inspection

The Family and a BPHD representative will conduct an inspection of the dwelling unit at least

once each year. The annual inspection is conducted to ensure that the dwelling unit is being

7.4.

properly maintained, and to counsel the family in any maintenance areas where assistance is

needed (Homeownership only). The annual inspection also documents the condition of the

unit.

7.3.1. Deficiencies

If deficiencies are noted during the inspection, the Housing BPHD will note them on

the inspection report and will write a plan of action (homebuyers) or a Work Order

(Rental tenants). A follow-up inspection will be conducted approximately thirty (30)

days following the annual inspection to insure the work has been completed.

7.3.2. Waiver of annual inspection

Homeownership Program only: If families have shown that the dwelling unit is being

well-maintained, the Housing BPHD may elect to conduct inspections on a less

frequent basis. However, in no event shall a dwelling unit be scheduled for inspection

less frequently than every two years.

Special Inspections

A special inspection will be conducted where deficiencies are noted at the follow-up or annual

inspection or when damages or other violations are suspected. If the interim inspection reveals

inadequate care of the home, the Homebuyer shall be advised of the breach. A letter listing the

deficiencies shall be sent to the Family stating that corrective action must be taken by a certain

date and setting a re-inspection date. This shall constitute the Homebuyer's plan of action

unless the Homebuyer agrees to a modified plan, with Housing BPHD approval. Ifthe breach

is not cured, BPHD shall enforce the Agreement or Rental Agreement by appropriate action,

including termination of the Agreement if necessary.

Vacate or Move-out Inspection

An inspection of a home being vacated will be required.

7.5.1. Scheduling

The vacate inspection will be scheduled when the Family has removed all personal

items and completed all repairs and cleaning.

7.5.2. Instructions

Families will be mailed vacate instructions in order to facilitate the move-out and to

promptly determine whether any charges may be due.

7.5.3. Participants

If possible, the inspection will be conducted with the Head(s)-of Household present,

with the inspection report signed by both the Head(s)-of Household or family member

and the BPHD representative. Where Families have vacated without notice or have

been evicted, and are not available for the inspection, two BPHD representatives

should be present to document the condition of the home through the inspection

report, and preferably, through photos or videotape.

7.5.4. Charges

A list of potential charges shall be summarized on the appropriate section of the report.

The vacate inspection report shall be compared with the initial inspection to evaluate

any damages beyond normal wear and tear.

7.5.5. Dispute

Any disagreement by the Family regarding vacates charges and/or the disposition of

MEPA (Homeownership only) shall be resolved in accordance with the BPHD's

Grievance Procedure.

7.6.

Project Inspections

The BPHD will conduct project inspections as often as feasible to note items in need of repair,

general trends of Family neglect, and any deficiencies in the appearance or upkeep of homes.

8. CONVEYANCES AND CONVERSIONS

8.1.

8.2.

8.3.

Opportunity to Purchase

The Homeownership program provides eligible Homebuyers with an option to purchase the

home. Until the purchase option is exercised, the Homebuyer is a lessee with a contingent

option to purchase the home.

Purchase Price Schedule

When the Homebuyer enters the program, a Purchase Price Schedule will be provided,

containing the following information:

¢ The Initial Purchase Price or Subsequent Purchase Price for the size of home and for the

applicable project;

* The amount by which the Purchase Price is amortized each month, and the price for the

Homebuyer to exercise the Purchase Option in any given month over the term of the

Agreement, which shall be not less than 15 nor more than 25 years;

* Where BPHD has used a constructive interest rate to compute the declining Purchase Price,

the interest rate used;

e The approximate date on which the Purchase Price is zero.

8.2.1. Initial purchase price

For a new project, and for the original Homebuyer, the Initial Purchase Price is

determined by the Total Development Cost and the size and type of home being

purchased.

8.2.2. Subsequent purchase price

The Subsequent Purchase Price is determined by using the remaining purchase price of

the home as listed on the original Purchase Price Schedule as of the date the new

homebuyer is admitted

8.2.3. Starting place on schedule

In addition to the Subsequent Purchase Price, BPHD shall determine the number of

years over which the Purchase Price schedule shall decline from the Subsequent

Purchase price to zero, and specify the starting point on the schedule for the

subsequent Homebuyer if it is not the first month on the schedule.

Conveyance of the Home

The following policies and procedures apply to conveying a Homeownership property.

Throughout this policy, the term "Homebuyer" means the person or persons who signed the

Agreement with BPHD.

8.3.1. Eligibility to purchase

Homebuyers are not eligible to purchase the home unless they have complied with all

obligations under the Agreement, including the obligation to make Required Monthly

Payments, and the obligation to occupy the home as their principal residence. For

Homebuyers with delinquencies remaining after the Purchase Price reaches zero, see

Section 8.12.

8.4.

8.5.

8.6.

8.7.

8.3.2. Exercise ineffective until compliance

If the Homebuyer exercises the purchase option prior to the time the Homebuyer is in

compliance with all Homeownership obligations, such exercise shall not be effective

unless and until the Homebuyer comes into compliance.

Initiation of Process

Either the Homebuyer or BPHD may initiate the process for conveyance.

8.4.1. General

In general, BPHD will initiate the process for conveyance when the balance of a

participant's reserve accounts and MEPA approximates the Purchase Price of the unit.

BPHD may, but is not required to, notify the Homebuyer when the balances of the

Homebuyer's reserves and accounts equal the purchase price of the home.

8.4.2. Homebuyer

The Homebuyer initiates the process by exercising the option. Exercising the Option is

an offer to make a lump sum payment of any remaining balance of the Purchase Price

after reserves and accounts are applied, plus any closing or settlement costs, either

through cash or financing.

8.4.3. Confirming reserves and accounts

BPHD shall determine the amount of the Homebuyers’ reserves and accounts in

response to a request from the Homebuyer or to determine whether BPHD should

counsel or notify the Homebuyer concerning exercise of the purchase option.

8.4.4. Confirming site control

Before conveyance, BPHD shall research site control and determine whether the home

is located on land owned in fee simple by BPHD, or is leased or restricted land. The

Housing BPHD shall determine the correct legal description of the land for use in all

conveyance documents.

Counseling

The Homebuyer will be counseled or advised in writing that once conveyance of title is

transferred to the Homebuyer, the Homebuyer becomes wholly responsible for all costs,

liabilities and responsibilities associated with ownership, including but not limited to insurance

coverage of the home, property taxes, and utilities. The Homebuyer should take these costs

into consideration as future responsibilities.

Interim Responsibilities

After exercise of the option, but before title is conveyed, the Homebuyer shall continue to be

responsible for the payment of the Administration Charge until the Settlement Date. BPHD

will continue to maintain insurance coverage of the home until conveyance.

Closing Costs

In addition to the payment of the balance of the purchase price schedule, the Homebuyer pays

all settlement costs incidental to acquiring ownership. These costs may include:

e As-built survey;

e Title examination and title insurance inspections;

¢ Deed preparation fees;

e Closing, recording or transfer fees associated with title;

e Any financing, escrow, and similar costs associated with outside financing, if any.

8.8.

8.7.1.

8.7.2.

Use of reserves and accounts

The Homebuyer may use any of the accounts or reserves available for payment of

settlement costs, or the Homebuyer's own funds. If the Homebuyer's

accounts/reserves will be used to pay off the home, the following charges will be paid

from the Monthly Equity Payments Accounts (MEPA), Voluntary Equity Payments

Account (VEPA), and MH Reserves, in the order listed;

Q Initial payment of fire and extended coverage insurance (if home is being

purchased through BPHD financing);

Q Settlement costs, unless the Homebuyer uses other funds or financing to cover

such costs;

Q Purchase price balance.

Title insurance

If the Homebuyer desires title insurance, the associated costs shall be the Homebuyer's

responsibility. A Homebuyer opting to buy title insurance should generally advise

BPHD of that decision at least three weeks in advance of the settlement date

Transfer of Title

8.8.1.

8.8.2.

8.8.3.

8.8.4.

Deed

Transfer of title shall be by Quitclaim Deed from BPHD to the Homebuyer or

Homebuyers who signed the Agreement. In the event of any dispute over eligible

transferees, the conveyance will be delayed until such dispute is resolved. Conveyance

may be made to the Estate of a deceased Homebuyer, in appropriate situations.

Conveyance package

BPHD shall coordinate with the Homebuyer in preparation of the Quitclaim deed and

other documents comprising the conveyance package. If the Homebuyer has elected to

purchase title insurance, the parties will also coordinate with the title company. In

general, BPHD’s legal counsel prior to the transfer of the property will review the

conveyance package; however, such review is solely for the protection of BPHD.

The Conveyance documents shall be adequate to convey BPHD's interest in the home

to the Homebuyer. The deed shall adequately describe the property. Documents

appropriate for transferring any BPHD possessory interest in leased land, or land in

restricted status, shall be prepared. Settlement documents shall also provide for a full

& final release of claims, obligations and liabilities between BPHD and the Homebuyer,

and for release of the Agreement. The Homebuyer may be required to signa "Property

Disclosure Statement" waiver under state law.

The conveyance package shall be based upon and shall state the estimated Settlement

Date, determined by the Housing BPHD. In general, the Purchase Price is effective as

of the Settlement Date. The Settlement Date may be amended in the event of delays or

other cause.

Settlement/Closing

Closing will generally occur at the Housing BPHD office, and may be performed by

mail.

Post-settlement recording and reporting

To ensure proper conveyance of record, BPHD may record the Deed at the appropriate

Recorder's office, at the Homebuyer's expense. Other arrangements for recording and

deed transfer may be made through qualified agents, such as title or escrow companies,

provided that BPHD's interest is adequately protected.

Absent clear tax guidance to the contrary, BPHD will complete an IRS 1099 form or

similar statement for interest accrued on homebuyer equity accounts during the term

8.9.

8.10.

8.11.

of the Agreement. Further, BPHD will comply with any other tax or transfer reporting

required or advisable under the Internal Revenue Code or local tax laws.

BPHD will notify the Office of Native American Housing (ONAP) at ONAP

Headquarters of the transfer of interest. BPHD will notify its insurance carrier that the

unit has been paid off and provide the date of recorded transfer, so that BPHD's cost of

coverage will terminate.

Disposition of Proceeds

After conveyance of the property, the funds from the sale shall be placed in BPHD's reserve

account and shall be used for low-income housing purposes.

Conveyance of Homes on Leased or Restricted Land

Many of BPHD's Homeownership homes are located on land that is leased by BPHD from the

Burns Paiute Tribe. Conveyance of homes located on land not owned by BPHD shall follow the

regular procedure, with the following additional steps:

8.10.1. Counseling

BPHD shall counsel the Homebuyer in writing that the conveyance covers the building,

only, and that the Homebuyer will not be receiving fee ownership of the land from

BPHD.

8.10.2. Additional or modified documentation

In the event the Quitclaim Deed (or other special deed BPHD uses for the transaction)

is insufficient to legally convey BPHD's leasehold interest in the land, BPHD will

prepare, execute and record document(s) sufficient to assign BPHD's rights in the land

to the Homebuyer. Counsel for the housing BPHD and the Homebuyer may review

such documents, if any. If assignment is prohibited or inadvisable, BPHD shall advise

the Homebuyer.

8.10.3. Homebuyer's assumption of lease responsibilities

The Homebuyer shall agree in writing to comply with all land lease obligations, as

appropriate. The Homebuyer may be required to indemnify BPHD for any breach of

the lease, if BPHD is not fully discharged from responsibility under the lease. At the

end of the lease period, it shall be the family’s responsibility to enter into a lease

agreement with the Tribe.

8.10.4. Other approvals

ONAP and/or BIA approval and signature shall be obtained, to the extent required or

customary. Additional time may be required before settlement can occur, in order to

obtain necessary approvals and signatures.

8.10.5. Land leased to BPHD

Conveyance of homes located on land owned by the Homebuyer, and leased to BPHD,

shall follow the regular procedure, except that BPHD may require additional

documentation to show termination of the original lease. Legal counsel, ONAP, and

BIA approvals and signatures shall be obtained as necessary or appropriate.

Post-conveyance Modernization Work

BPHD may, in its sole discretion, perform previously approved modernization work on homes

after conveyance, subject to modernization program policies and federal regulations.

8.11.1. No guarantees

Due to contingencies associated with federal funding, potential for emergency

conditions in other homes, and the need for BPHD to reallocate funding to homes for

8.11.2.

which it holds title and which have priority, modernization work cannot be guaranteed.

BPHD will not perform previously scheduled modernization work on a

Homeownership home, which has been re-conveyed by the original

Homebuyer/Homeowner to a third party.

Pre-requisites

Before BPHD performs modernization work on a conveyed home, the Homeowner(s)

shall:

Q Verification that the family is an eligible family per Section 2.

Q Provide proof of adequate homeowners’ insurance on the home.

Q Sign any required agreements, acknowledgments, waivers, or releases of

liability BPHD requires as a condition of performing work.

Q Fully cooperate and prepare the home to be worked on, including moving

furnishings, performing any required self-help, and ensuring the home is safe

for BPHD workers.

Q Upon BPHD's request, establish to BPHD's satisfaction that the home is still

owned by the former Homeownership Homebuyer/Homeowner.

8.12. Ineligible Homebuyers

If a Homebuyer owes money to BPHD at the end of the Agreement term, BPHD may refuse

conveyance until the debt is paid and take any action against the Homebuyer as authorized by

the Agreement, or proceed with conveyance and file a suit against the homebuyer for the debt

in Tribal Court or another court with jurisdiction over the matter.

Conversion from Homeownership to Low Rent

Homebuyer families may suffer a permanent loss of homeownership potential, due to a variety

of reasons beyond their control, including loss of ability to maintain the home and inability to

meet the cost of homebuyer responsibilities. The Housing BPHD may agree to convert the

home in place to the Low Rent program subject to the following conditions and procedures.

8.13.1.

8.13.2.

8.13.3.

8.13.4.

Financial feasibility analysis

All conversions are subject to a financial feasibility analysis. The BPHD will determine

the potential impact a conversion will have on the BPHD. No conversion will be

approved unless it can be found that the impact will be minimal. Conversion may be

declined or delayed until additional units are available for conversion or are

constructed.

Condition of home

The home must be brought into acceptable condition prior to conversion, including

repair of all damages, exterior and interior painting if not performed in the past two

years, replacement of missing or non-working appliances, and any other work required

by the Housing BPHD. |

Cost of work and delinquencies

The Homebuyer shall be responsible for all costs of bringing the home into compliance.

MEPA funds may be applied to this cost. The Homebuyer may be required to enter

into a Payment Agreement to cover any arrearage.

Accounts and reserves

Any balance remaining in the MEPA shall be applied first to any delinquencies, then to

repair/maintenance work, then to the Security Deposit for the new Low Rent Lease,

with any remainder paid to the Homebuyer. Reserve accounts associated with the unit

shall be applied in the manner determined by BPHD

8.14. Conversion from Low-rent to Homeownership

In the event the family regains the potential to qualify for Homeownership participation, as

defined by BPHD's Homeownership eligibility standards, the Tenant may apply to the Housing

BPHD for conversion to Homeownership, provided that not less than 3 years have elapsed

since the conversion to Low-Rent and the family has established a track record sufficient to

ascertain Homeownership eligibility. As with conversion from Homeownership to Rental,

approval will be contingent upon the financial feasibility of the conversion for the BPHD.

COLLECTIONS

The proper operation of the Homeownership and Rental programs depends on the money

generated by Family payments. BPHD's policy is to take diligent action to collect past-due

payments, in a manner consistent with the homeownership goals of the Homeownership program,

and the individual circumstances of each family. As used in this policy, the terms "Homebuyers",

“Tenants” and “Families” refer to the person(s) who signed the Homebuyer or Rental Agreement.

9.1.

9.3.

Amount of Required Monthly Payment

Families will be informed of the amount of their Required Monthly Payment, and how the

payment was calculated. BPHD will advise Families of their obligation to make regular

payments in accordance with the Agreement and the Rental Agreement. The method of

payment shall be by postal money order, personal check or, if payment is made in person, by

cash.

Failure to Meet Financial Obligations

As stated in the Homebuyer Agreement and Rental Agreement, prompt and regular payments

are essential for continued occupancy. Families who fail to make timely payment in the proper

amount risk being terminated from the program. Delinquent Homeownership homebuyers are

required to cooperate in financial and family budget counseling as directed by the BPHD, to

insure that the Homebuyer understands the importance of making payments when due.

Counseling may include discussion of direct deposits, payroll deductions, MEPA deductions,

and prepayment. Refusal or failure to participate in counseling is considered by BPHD in

determining whether stricter collection action is appropriate. :

Inability to Make Full Payment Due to Hardship

Although payments are originally established at amounts within the financial reach of eligible

families, financial hardships can arise, such as death of a family member or loss of a job, where

the Homebuyer despite best efforts is unable to make full payment on the due date.

9.3.1. Conditions

BPHD's policy is to reasonably accommodate families suffering legitimate financial

hardship, provided that the hardship is of a temporary nature, the Family complies

fully with all other requirements of the Homebuyer Agreement or Rental Agreement,

and the Family communicates the problem to BPHD in a timely manner.

9.3.2. Family to provide notice of problem

Families with a legitimate and justifiable inability to make the required payment on the

due date must contact BPHD:

Q to explain the circumstances,

to request and describe the financial extension needed, and

to make arrangements for entering into a written Payment Agreement, if the

extension is needed for longer than 30 days. Partial monthly payments are

generally required for Payment Agreements.

9.4.

Partial Payment

Where financial hardship is suffered, Families are required to make voluntary partial payments

rather than pay nothing. Partial payments show the Family's continued commitment to the

Homebuyer Agreement and the Rental Agreement. Where partial payments are being made,

BPHD will hold-off on immediate termination action if the Family's payment history is good, it

appears that the past-due balance will be repaid in the near future, and the Family is complying

with all other requirements of the Homebuyer Agreement. If the inability to make full

payments is expected to exceed 30 days, the Family must promptly sign a written Payment

Agreement, which states the reason for the extension or partial payment and specifies the date

or dates on which payments will be made. Generally, extensions will not exceed 90 days absent

extraordinary good cause.

Payment Agreements

To maximize a Family’s compliance, achieve the goals of the Homeownership and Low Rent

program, and avoid evictions, families with delinquencies or a pattern of late or inconsistent

payments, must enter into a written plan of action. The plan of action is generally documented

in a Payment Agreement, which specifies the plan for paying the Family’s debt. A Family which

fails to pay or is unable to pay the Required Monthly Payment, and Families which incur debts

to the BPHD for non-maintenance, abuse or replacements which are greater than one month's

Administration Charge or Tenant Rent, shall take prompt remedial action.

9.5.1. Short term basis only

Payment Agreements are made available to Families in recognition of unavoidable or

unexpected financial problems, and are intended to be of a temporary and short-term

nature. Unless otherwise authorized by signature of the General Manager of the Burns

Paiute Tribe or designee, the term of the Payment Agreement shall not exceed twelve

months.

9.5.2. Corrective action

The Family shall (a) enter into a Payment Agreement with the BPHD, and (b) if a

Homebuyer, have the amount deducted from the MEPA with a Payment Agreement to

replenish the MEPA.

9.5.3. Requirements of payment agreement

The Payment Agreement shall provide:

Q Minimum monthly payments shall be 1/12th of the amount owed, or $25.00,

whichever is greater. The minimum monthly payment amount may be

reduced, in the BPHD's discretion, so that the monthly payment plus the

Family's Total Tenant Payment does not exceed fifty (50%) percent of the

Family's Gross monthly income.

Q The monthly payment shall be set at an amount, which will result in the most

prompt possible repayment, and may be higher if the BPHD determines that

the family can afford a higher payment. In no event shall a Payment

Agreement exceed three years.

Q Payment Agreements shall be due and payable in the same manner as

Required Monthly Payments.

9.5.4. Signed document

Payment Agreements must be executed by the Head(s) of Household, and where the

Agreement requires financial commitments from other authorized occupants or family

members, those occupants are also required to sign.

9.5.5. Application of payments

Payments made by a Family with a Payment Agreement shall be made in the following

9.6.

9.7.

order:

Q Current Required Monthly Payment

Q Unpaid Required Monthly Payments or other charges, which are past due and

not included in a current Payment Agreement.

Q Repayment Agreement

Q MEPA (Homeownership only)

9.5.6. Breach of payment agreement

Breach of the Payment Agreement authorizes termination of the Payment Agreement

at the election of the BPHD upon notice to the Family. Failure of the Family to make

two consecutive payments under the Payment Agreement will result in automatic

termination of the Payment Agreement, without notice to the Family. Breach of a

Payment Agreement also authorizes termination of the Agreement or Rental

Agreement.

9.5.7. Reinstatement of payment agreement

The BPHD may reinstate a terminated Payment Agreement upon appropriate payment

and assurances from the Homebuyer, in which case the termination shall not count

against the Family under the table provided below. After termination of a Payment

Agreement, the BPHD may require the Family to enter into a new Payment Agreement.

9.5.8. Restrictions where payment agreements have failed

For Families who breached their last Payment Agreement, a substantial lump sum

payment is required before a new Payment Agreement will be accepted. The minimum

lump sum payment is a percentage of the balance due, determined by the following

table:

Breached Agreements Down Payment Required

1 25%

2 50%

3 75%

4 100%

Families who have breached four (4) Payment Agreements during the term of their

Agreement or Rental Agreement must pay their balance in full, and are not permitted

to enter into another Payment Agreement. A lump sum payment will be required to

correct the balance owed. Only the General Manager of the Burns Paiute Tribe, for

good cause shown, may waive this restriction.

MEPA Application

Homeownership Program only: Where a Homebuyer falls behind in payments for any reason,

BPHD is authorized to apply the Homebuyers' MEPA balance, if any, toward the Homebuyers

past-due administrative charges. BPHD may apply all or part of the MEPA toward the

Homebuyers’ past-due balance where the delinquency is serious, or the Homebuyer voluntarily

requests such action with BPHD approval. BPHD may provide notice to the Homebuyer of the

MEPA application but is not required to do so. In accordance with Section 9.5, the Homebuyer

shall enter into a Payment Agreement. “Serious” delinquency is defined as any delinquency,

including Miscellaneous Account balance, exceeding three Required Monthly Payments or

$300, whichever comes first.

Collection of Delinquencies

BPHD applies the following guidelines in enforcing the financial obligations of the

Homeownership and Low Rent program in collecting delinquent payments:

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This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.