Option to Purchase Policy

SUNDOWN HEIGHTS

Option to Purchase Policy

Table of Contents

SECTION 1: DESCRIPTION OF PROGRAM --------------------------------------------------------------------- 3

SECTION 2: COVENANTS -------------------------------------------------------------------------------------------- 5

SECTION 3: APPLICATION------------------------------------------------------------------------------------------- 8

SECTION 4: WAITING LISTS ORGANIZATION -------------------------------------------------------------- 10

SECTION 5: APPLICANT FILES ---------------------------------------------------------------------------------- 12

SECTION 6: ELIGIBILITY-------------------------------------------------------------------------------------------- 13

SECTION 7: BASIS FOR INELIGIBILITY ----------------------------------------------------------------------- 17

SECTION 8: VERIFICATION ---------------------------------------------------------------------------------------- 18

SECTION 9: SELECTION OF FAMILIES FOR A NPTHA HOUSE--------------------------------------- 19

SECTION 10: OP PROGRAM RENT & OTHER PAYMENTS --------------------------------------------- 23

SECTION 11: RECERTIFICATION PROCESS ---------------------------------------------------------------- 24

SECTION 12: INCOME ----------------------------------------------------------------------------------------------- 26

SECTION 13: OCCUPANCY ---------------------------------------------------------------------------------------- 27

SECTION 14: SECURITY, DAMAGE AND CLEANING DEPOSIT --------------------------------------- 28

SECTION 15: CLIENT ACTION PLAN & HOUSING COUNSELING ------------------------------------ 29

SECTION 16: MOVE-IN PROCESS -------------------------------------------------------------------------------- 30

SECTION 17: MOVE-OUT PROCESS --------------------------------------------------------------------------- 31

Adopted 10/18/06 NPTHA Resolution 2006-13

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SECTION 18: MAINTENANCE AND REPAIR ----------------------------------------------------------------- 32

SECTION 19: HOUSEKEEPING STANDARDS ---------------------------------------------------------------- 32

SECTION 20: UTILITIES --------------------------------------------------------------------------------------------- 34

SECTION 21: INSPECTION ----------------------------------------------------------------------------------------- 34

SECTION 22: ALTERATIONS AND IMPROVEMENTS ----------------------------------------------------- 36

SECTION 23: ASSIGNMENT AND SUBLETTING------------------------------------------------------------ 36

SECTION 24: TRANSFERS ------------------------------------------------------------------------------------------ 36

SECTION 25: NPTHA POLICIES --------------------------------------------------------------------------------- 36

SECTION 26: RISK OF LOSS/INSURANCE ------------------------------------------------------------------- 36

SECTION 27: FIRE ----------------------------------------------------------------------------------------------------- 37

SECTION 28: PERSONAL PROPERTY -------------------------------------------------------------------------- 37

SECTION 29: ABANDONMENT OF PERSONAL PROPERTY -------------------------------------------- 37

SECTION 30: ABANDONMENT ----------------------------------------------------------------------------------- 37

SECTION 31: OPTION TO PURCHASE & PURCHASE PRICES ---------------------------------------- 38

SECTION 32: SECCESSION DURING RENTAL PHASE -------------------------------------------------- 42

SECTION 33: LIFE ESTATE ---------------------------------------------------------------------------------------- 43

SECTION 34: RELINQUISHMENT -------------------------------------------------------------------------------- 43

SECTION 35: TERMINATION -------------------------------------------------------------------------------------- 44

SECTION 36: NOTICES ---------------------------------------------------------------------------------------------- 45

SECTION 37: WAIVERS --------------------------------------------------------------------------------------------- 46

SECTION 38: MODIFICATION ------------------------------------------------------------------------------------- 46

SECTION 39: NUMBER AND GENDER ------------------------------------------------------------------------- 46

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SECTION 1: DESCRIPTION OF PROGRAM

A. Summary: This program is an Option to Purchase Program and will be referred to as the

OP Program hereafter. At least one of the applicants must be an enrolled member of the

Nez Perce Tribe, although preference will be given to all Nez Perce Families who are

enrolled members of the Nez Perce Tribe. Participants are renting until a specified time by

which they will exercise the option to purchase or otherwise terminate their Use &

Occupancy Agreement. Participants during the term of this program do not have and will

not accumulate any equity in the property until such time that the option to purchase is

exercised. No Homebuyer shall have any right to a refund of rents upon termination by

expiration of the term of the occupancy agreement or termination for any other reason. All

applicants must be able to pay the minimum rent and achieve mortgage readiness

according to their Client Action Plan but not to exceed three (3) years.

B. The purchase of a home under this program is a leasehold purchase. It only includes the

house and does NOT include the purchase of the land on which the home is located. The

Homebuyer may be required to surrender and vacate the home being purchased under the

OP Program upon expiration of the land lease or in the event of relinquishment of

enrollment in the Nez Perce Tribe without payment or other compensation. The Option to

Purchase must be exercised within the specified time frame established in the Use &

Occupancy Agreement, but not to exceed 36 months. This program is designed to

assist primarily low-income families and moderate-income families who are willing to comply

with the non low-income assistance requirements. Generally, Homebuyers must comply

with the following:

1. Be committed to purchasing the leasehold property;

2. Have sufficient income required to meet the minimum rent and the other financial

obligations of maintaining and buying a home;

3. Be able to overcome the obstacles to mortgage readiness in a period of time not to

exceed 36 months except in extreme circumstances;

4. Be committed to schedule the time to participate in the required group counseling and

the one-on-one counseling tailored to the individual family’s needs.

5. Participants entering this program must be reminded regularly that this is not a substitute

low-rent program. Additionally, failure to exercise the option or to comply with any of the

other terms and conditions of the program will result in termination of participation,

termination of Participant’s Use & Occupancy Agreement, and loss of benefits. In the

event that the Participant decides not to exercise their option or in the event that NPTHA

determines that the Homebuyer will not be able to exercise their option, then the

Homebuyer shall have three months to vacate the premises and find alternative housing.

6. The house payments made under the OP Use & Occupancy Agreement will be applied

to the purchase of the home to cover debts service when the option is exercised

successfully. If the option is not exercised, the total amount paid will be retained by the

NPTHA as rent and the Homebuyer must secure other housing.

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7. The success of this homeownership opportunity is contingent upon an intense Housing

Counseling and Homebuyer Education program. It will consist of Homebuyer education

classes and one-on-one counseling individualized to meet each family’s needs. Needs

vary from family to family. Income, employment, education, debt, the number in a family,

etc., all contribute to the differences that make each family unique. Although each

family’s uniqueness must be addressed, it is imperative that policies are applied

equitably.

C. The Lease with Option to Purchase Program seeks to respond to the following goals:

a. To promote affordable homeownership opportunities for those low-income enrolled

members who need assistance in qualifying for mortgage financing.

b. To provide homeownership opportunities for low-income enrolled members to better

access the private mortgage market for homeownership on tribal trust property.

c. To promote self-sufficiency of tribal members.

D. Purpose of Policies: Policies have been prepared to provide direction to staff for admission

of applicants into the housing program and for administering the requirements governing

their occupancy. The OP Program will be implemented by NPTHA Housing Management

through a staff of Housing Counselors. Staff will conduct a reasonable and broad based

effort to solicit and accept applications from all interested parties. After determining

eligibility, a waiting list of potential OP Program applicants will be maintained according to

the time and date of application and other pertinent factors as outlined in these policies.

These waiting lists will be used by staff in selecting Homebuyer.

E. Applicability of Policies: All Participants are subject to the policies of the NPTHA as they

now exist or as they may hereafter be revised or added by the NPTHA. The NPTHA Client

Action Plan, NPTHA Underwriting Procedures, the NPTHA Housing Counseling Policy, the

NPTHA Collection & Eviction Policy, the NPTHA Grievance Policy, the NPTHA Non LowIncome Assistance Policy, the NPTHA Home Business Use Policy, the Rules and

Regulations for Living on the Reservation, and the Assignment Policy, as they may

hereafter be amended, and are by this reference made a part hereof.

1. The Board of Commissioners and staff will comply with all applicable laws and

regulations of the Department of Housing and Urban Development (HUD), particularly

CFR 1000. Additionally, commissioners and staff must be in compliance with the Nez

Perce Tribal codes and Ordinances, applicable state and federal laws and regulations,

and NPTHA policies. Failure for staff to be in compliance will be addressed through

disciplinary action that could result in termination of employment or removal from the

Board.

F. Codes: Applicants as well as occupants are required to adhere to the Nez Perce Tribal

Code and other applicable laws with regard to their personal conduct when it impacts their

housing obligations and the rights of others. Participants in this program agree to adhere to

the following covenants as long as they reside on the premises as a renter and/or

subsequently as a homeowner.

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SECTION 2: COVENANTS

The following covenants apply to any and all programs operated in the Sundown Heights

Subdivision.

A. Sweat Houses

The structure of your sweat house needs to demonstrate that you have pride and dignity in

your culture.

B. Home & Homesite Requirements & Maintenance

1. The Resident is responsible for planting and maintaining a yard.

2. Each resident will be responsible to maintain and keep clean and in good repair the

exterior of their home as well as all appurtenant resident structures such as decks,

steps, carports, storage buildings, and fences at all times. All wooden structures such as

decks, handrails, etc., shall be painted or stained as necessary to prevent their visual

and/or physical deterioration.

3. Driveways, streets, and Resident’s homesite, including porches and decks, are to be

kept clean and free from trash and litter at all times. Garbage cans, gardening tools,

equipment, bicycles and other personal belongings must be stored in the Resident’s

carport, garage, storage shed.

4. Furniture left outside a home shall be limited to outdoor or patio furniture. No household

appliance or upholstered furniture can be placed outside of the home. Storage of any

type beneath the home including any material of an illegal or explosive nature is

prohibited.

5. Dead animals or dead animal parts are not to be stored outside the premises.

6. Any unallowable items left out may be removed by the NPTHA at the residents –

homeowner’s expense after complying with any notice requirements.

C. Residents & Guests

1. Residents shall respect the peace of the Subdivision and see that their guests do the

same. It is the responsibility of the Resident to keep their children under control at all

times. Neither Resident, their children, guests nor any other person staying or visiting

the Resident shall cause unreasonably loud or disturbing noise between the hours of 10

p.m. to 8 a.m.

2. Residents are responsible for the actions of occupants of their home, as well as guests,

licensees and invitees.

3. Residents shall conduct themselves and cause other persons who are on the premises

with their consent to conduct themselves in a manner which will not disturb his

neighbors’ peaceful enjoyment of their accommodations and will be conducive to

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maintaining the neighborhood in a decent, safe and sanitary condition. Excessive

alcohol abuse, partying, fighting, quarreling and any other action or activities that

interferes with or disturbs the health, safety, or right to peaceful enjoyment of the

premises by other residents are prohibited.

4. Home Occupations are permitted, provided they are consistent with the NPTHA Home

Business Policy.

5. Residents shall refrain from, and to cause his household and guests to refrain from

destroying, defacing, damaging, or removing any part of the home or grounds.

D. Parking Vehicles

1. No vehicle or equipment over 10,000 pounds gross vehicle weight is allowed to be

parked on the street other than for service to the Resident. Inoperable vehicles or

vehicle parts may not be stored or left on driveway, Homesite or anywhere in the

Subdivision. Inoperable vehicles will be impounded or towed after 30 days of written

notice. The expense of such removal shall be assessed against the Resident. Resident

parking is restricted to the Resident’s driveway, carport, or garage.

2. Vehicles may not be parked on the street or parked in such a way as to extend into the

street. Vehicles may not be parked in yards. Guests may park their vehicles in a

Resident’s driveway, carport, or garage or other designated parking areas when visiting

a Resident but must ensure that they are parked in a location so as not to block any

neighbor’s access, or restrict traffic flow within the Subdivision.

3. Three wheelers, all terrain vehicles, dirt bikes or the like are not allowed to operate in the

Subdivision.

E. Pets

1. Residents and owners shall keep no vicious animals. All pets shall be confined to the

yard and not interfere with neighbors’ peaceful enjoyment.

2. Residents and owners shall not keep farm animals, including horses, on the property.

3. NPTHA Policies and Tribal Ordinances shall apply as they now exist or hereafter are

amended.

4. Residents shall keep no domestic animals on or about the leased premises without the

prior, express and written consent of NPTHA and evidence of registration with the Nez

Perce Tribe. There shall be a non-refundable pet deposit due to the NPTHA.

F. Landscaping

1. The Resident is responsible for keeping all landscaping mowed, trimmed, watered, and

due to fire hazard, weeded and well maintained within their Homesite. If landscaping is

not properly maintained and has reached 6 inches, the NPTHA or the Tribe reserves the

right to perform whatever landscape maintenance may be required and charge the

Resident per established policy.

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2. Each Resident shall install a sufficient amount of landscaping to prevent erosion and run

off onto neighboring homesites, as well as to provide a pleasant environment.

3. The installation of fencing is subject to approval by the NPTHA. A request with sufficient

information must be made to the NPTHA before a decision can be made by the NPTHA.

Fencing is not permitted between the street and the front of the home if it blocks visibility

for auto traffic. All homes will be fenced in a similar design upon NPTHA approval.

4. Barbed wire, electrical fencing or any type that could be hazardous is prohibited.

G. Utilities

1. Payment for electrical, telephone, cable TV, natural gas, propane and kerosene is the

responsibility of each Resident.

2. Garbage, water and sewer will be paid by the Resident including any deposits.

3. Each Resident is required to provide their own garbage cans. These cans are to be in a

form acceptable to the local trash collection agency. If the Resident fails to remove trash

on a regular basis, arrangements will be made to have the trash picked up at the

Resident’s expense.

4. Each Resident shall be responsible for ensuring that there be no obstructions to access

to any water meter, water shut off valve, sewer clean-out, electrical/telephone/cable TV

pedestal which may be located on their Homesite.

H. Preserve Land Corners

1. The NPTHA has expended funds to place pins marking the corners of the lots. Land

corners are to be preserved and maintained by the resident. Disturbance of land corners

is subject to prosecution and penalties.

I. Owner Homesite Improvements

1. Owner shall be responsible for installing all improvements in accordance with Section I,

Item 2. Any additional improvements which the Owner wishes to construct on his

homesite must show the size, design and materials to be used and be approved by the

NPTHA.

2. All alterations are to be made according to applicable building codes. Any electrical and

major plumbing work must be performed by a licensed contractor. Plans must be

approved prior to commencement of any construction or lease assignment.

J. New Construction

1. New construction on lots is subject to review and approval by the NPTHA. All

construction activities must be in accordance with the Uniform Building Code. Plans and

specification must be made available for evaluation. Inspection by a qualified building

inspector will also be required.

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K. Manufactured/Modular Homes

1. A structure that is multi-sectional, encloses a space of not less than one thousand

square feet, consists of a minimum of 28 feet wide, and was built after 1998.

2. The home must meet the additional standards required by the lender and/or the NPTHA,

including but not limited to the following:

a. The manufactured home shall be placed on an excavated and backfilled foundation

and enclosed at the perimeter such that the home is located not more than twelve

(12) inches above grade; and comply with all FHA regulations regarding permanent

foundations.

b. A vapor barrier shall be installed.

L. Unlawful Conduct

1. The resident is prohibited from using, causing to be used or allowing to be used any part

of said rented or leased premises for any unlawful conduct or purposes. Any unlawful

conduct is prohibited and may result in eviction and termination of the Use & Occupancy

Agreement or assignment.

2. Nez Perce Tribal Law Enforcement is responsible for receiving and investigating any

suspicious or illegal acts. Residents are requested to notify the local law enforcement

agency for investigation and prosecution.

3. The Nez Perce Tribal Court shall have exclusive jurisdiction over any dispute that arises.

M. Amendment of Rules

NPTHA reserves the right to make reasonable modifications to these rules if needed for

health or safety purposes or necessitated by a change in Tribal Code or Federal law.

Residents will be given at least 30 days notice of any such modification.

SECTION 3: APPLICATION

All enrolled members of the Nez Perce Tribe are encouraged to submit applications as soon as

possible because of the extensive requirements for qualifying. They also must be informed that if

they need assistance in completing the application, staff are available to assist them. Federal law

prohibits discrimination based on race, color, creed, religion, national origin, sex, age or handicap,

although selection for the OP Program is limited to applicants who are enrolled members of the

Nez Perce Tribe in accordance with the provisions of NAHASDA, Title II, Section 201 (b) 4.

A. Application Forms: There are specific forms that must be used to complete an application

depending on the type of assistance for which one is submitting an application. The

application forms will be designed by staff to gather enough information to allow a full

assessment of the family’s background to determine and verify eligibility, consistent with any

applicable federal and NPTHA requirements and the requirements of any other funding

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entity that are applicable at the time of admission. These forms may be supplemented with

additional forms as deemed necessary by the Executive Director for clarification purposes.

The minimum application forms generally required by the NPTHA include, but are not limited

to the following:

1. Intake, the Uniform Residential Loan Application (URLA) or program specific application.

2. Consent for Credit Report

3. Homebuyer Counseling Agreement

4. Goal Statement

5. Budget Worksheets

6. Applicable Verifications

7. Client Action Plan

8. Applicable Consents to Release Information

B. Application Process: Families must submit a full and complete application, including

authorizations and evidence of prior attendance in Housing Counseling and Homebuyer

Education classes and sessions, before they can be determined eligible or placed on a

waiting list.

1. In order to be considered for occupancy in any housing program offered by the NPTHA,

a written (legible) application must be completed in consultation with a NPTHA staff

member.

2. All applications processed by NPTHA staff are entered in a database.

3. The staff member preparing an application must note the date and time when the

application was received.

4. All information provided in the application must be verified and documented before an

application is considered complete. In the event there are concerns regarding the

information obtained, the Housing Counselor will report the concerns to the Executive

Director. The Executive Director will request information for review purposes from Board

members and staff to either make a decision or to refer the issue to the Board for Board

action.

5. After reviewing the application data, the Housing Counselor will submit the file with a

written recommendation for action to another Housing Counselor who will review the file

and document in the file the concurrence or non-concurrence with the action to be taken.

If there is no agreement regarding the action to be taken, the information will be

forwarded to the Executive Director for review and action. All recommendations and

actions are to be in the form of written documentation.

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6. Once the application is complete and eligibility has been determined, the applicant data

will be entered into the appropriate Waiting List database.

7. In the event of a rejection, the staff will notify the applicant in writing (certified mail return

receipt requested) of the basis of the determination and the right to appeal the decision

in accordance with the Grievance Policy.

8. The Housing Counselor will prepare a letter notifying the applicant of the resultant

placement on the Waiting List.

9. The Waiting Lists will be updated to the greatest extent feasible on a bi-weekly basis;

however, a minimum of a monthly update is required. The Housing Counselor will

provide the Waiting Lists on a monthly basis to the Executive Director for inclusion in the

report to the Board at the next regularly scheduled meeting.

10. Waiting Lists (indicating applicants’ last four digits of their social security number,

bedroom size, lot preference, and points) are to be posted for public view in the NPTHA

office.

C. Charges: There is no application fee for NPTHA program assistance, although the applicant

will be responsible for other fees assessed by lenders in the event the Participant

successfully exercises their option to purchase. Also, the applicant is not responsible for the

cost of the initial credit report obtained by the NPTHA for the purposes of qualifying for the

OP Program.

D. Communications: All communications with the applicant must adhere to the following

requirements:

1. All official notices must be in writing and signed by a Housing Counselor with a copy to

the Executive Director

2. All verbal communications are to be documented in the applicant file, indicating date,

time, content, and disposition.

3. All written communications or major inquiries from an applicant are to receive a written

response within 5 working days from the date of receipt.

4. All phone calls are to be returned within a maximum of two working days.

5. All appointments are to be confirmed in writing.

6. All phone reminders of appointments are to be documented in the applicant file,

indicating date, time, content, and disposition.

SECTION 4: WAITING LISTS ORGANIZATION

A. Preferences: It is the goal of the NPTHA to provide decent, safe, and sanitary housing for

all enrolled members. In accordance with this goal, homeownership opportunities will be

made available in accordance with NPTHA established preferences. The waiting list will be

organized based on the established preferences.

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1. Preferences are established to ensure that the benefits accrue to enrolled members of

the Nez Perce Tribe. Consequently, the following definitions will apply:

2. ALL NEZ PERCE FAMILY means the head or heads of household and at least one child

are enrolled members of the Nez Perce Tribe. Nez Perce couples are also included in

the definition of all Nez Perce family. Only an enrolled member of the Nez Perce can be

the applicant.

3. AN INDIAN FAMILY means at least one of the heads of household is an enrolled

member of the Nez Perce Tribe. Only an enrolled member of the Nez Perce can be the

applicant.

4. Single enrolled Nez Perce members are considered a family only for the purpose of

applying for a lot.

B. Waiting Lists Organization: The NPTHA requires that Waiting Lists are established and

maintained for each type of housing assistance program. The NPTHA must maintain a

separate Waiting List for the OP Program and for each preference. Preliminary selection of

applicants for a NPTHA-built home who meet all eligibility requirements of the OP Program

will be based on preferences established by the Board of Commissioners.

Placement on the Waiting List does not guarantee selection. It indicates that at the time of

verification and certification, the applicant is eligible for the program and is to be considered

for selection.

C. Maintaining Waiting Lists: The following information is required to properly maintain the

waiting list:

1. Minimum Information:

a. record number

b. name and address

c. community preference

d. lot preferences

e. family size

f. income

g. date/time of application

h. Tribal Affiliation/non-Indian

i. offers (2) (date/status)

j. notification to update

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k. recertification date

l. mortgage readiness date

2. Optional information:

a. source of income

b. place of employment

c. length of employment

d. Federal IRS Form 4506 or 4506T

e. previous federal housing assistance

f. financing capability

g. disabled

h. veteran

D. The Waiting List will be updated to the greatest extent feasible on a bimonthly basis;

however, a minimum of a monthly update is required.

1. Waiting List applicants must update their application on a yearly basis or they will be

removed and placed in the inactive file. Applicants on the waiting list will be notified in

writing one year after the date of the initial application to update their application within a

specified time period. The efforts to notify the applicant must be noted on the Waiting

List by date.

2. Yearly updates by applicants will be noted on the Waiting Lists by date.

3. Applicants who fail to respond to the request to update their applications will be removed

from the Waiting List and transferred to the Inactive File.

E. Reporting Requirement: A summary of the Waiting List using social security numbers for

confidentiality must be prepared and submitted to the Executive Director on a monthly basis.

SECTION 5: APPLICANT FILES

A. Filing Requirement: All applications are filed as Active or Inactive.

B. File Management: When an applicant is placed on the Waiting List, the application and all

the supporting documentation is maintained in the Active file. All applicant files are

organized alphabetically.

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C. Inactive File: Applicants who are determined to be ineligible for whatever reason are placed

in the Inactive File, organized alphabetically by fiscal year. Inactive files will be set up in a

data base indicating the name, bedroom size, income, and date.

D. File Retention: All Inactive Files are retained for a minimum of 3 years. All active files

where the option to purchase is not successfully exercised are retained for five years after

move-out in accordance with HUD Handbook 4350.3 Rev. 1, whichever is less. In the event

of home purchase, the files will be retained for the length of the leasehold mortgage.

E. Inactive File Placement: Waiting List applicants will be placed on the inactive waiting list

when treated as follows:

1. Staff has made a determination of ineligibility.

2. An applicant will be offered no more than 2 homes. Only a maximum of 15 days will be

allowed for an applicant to accept or reject an offer of a home. When an applicant

refuses 2 offers of a home, the applicant will be ineligible for a period of 1 year from the

date of refusal of the second site of home offer.

F. Confidentiality: Information contained in the NPTHA files is confidential. Only those with a

need to know have the right to review the contents of client files. Staff is prohibited from

discussing the contents of a client’s file with anyone other than NPTHA staff. NPTEC and

other Tribal officials must have a court order to access applicant or occupant information

unless the applicant or occupant has signed a consent to release the information to the

requesting party.

SECTION 6: ELIGIBILITY

The following eligibility requirements must be met at a minimum prior to persons being considered

for the OP Program.

A. Only those who are eligible under the laws and customs of the Nez Perce Tribe to lease

tribally owned land for residential purposes or who otherwise obtain the specific approval of

the Nez Perce Tribal Executive Committee shall be eligible. Non-Indian and non-member

spouse may join in the application process and have their income and credit considered;

however, non-Indian and non-member spouses may not inherit property pursuant to the

Laws and Customs of the Nez Perce Tribe. Therefore, once the option is exercised if the

Tribal member dies or becomes divorced from the non-Indian or the non-member, the nonIndian or non-member spouse may not inherit the property in the case of death or be

granted the property by consent of the parties or by the Courts in the event of a divorce.

Likewise during the rental phase of the program if the Nez Perce Tribal member dies or

relinquishes Nez Perce membership, the non-Indian or non-member spouse can not be the

beneficiary or remain in possession of the rental unit; nor may the parties or the Courts

allow the non-Indian or non-member spouse to remain in possession of the rental unit in the

event of divorce.

B. Applicants who are an “Indian Family” will only be considered if they can comply with the

following: at least one of the qualifying applicants must be an enrolled member of the Nez

Perce Tribe. Eligible Family/Individual Composition means:

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1. ALL NEZ PERCE FAMILY means the head or both heads of household and at least one

child are enrolled members of the Nez Perce Tribe. All Nez Perce family includes a Nez

Perce couple. Only an enrolled member of the Nez Perce can be the applicant.

2. AN INDIAN FAMILY means at least one of the heads of household is an enrolled

member of the Nez Perce Tribe.

3. Single enrolled Nez Perce members are considered a family only for the purpose of

applying for a lot.

C. Enrollment documentation must be provided by a third party source. Nez Perce enrollment

must be documented and verified through the Nez Perce Tribal Enrollment Office. Other

Indian applicants must have third party enrollment documentation and verification provided

by the Bureau of Indian Affairs (BIA). A BIA Certificate of Degree of Indian Blood (CIB) and

verification of enrollment from a federally recognized tribe.

D. “FAMILY” means two or more persons related by blood, marriage, or adoption, or who have

evidenced a stable family relationship by living regularly together in the same dwelling unit

for at least two years or a single adult enrolled member of the Nez Perce Tribe for

consideration of a lot only.

E. The applicant must use the home as their principal residence.

F. The applicant family must have sufficient income to meet and maintain the minimum

payment and be within the income limits established and approved by HUD annually (see

Appendix A: Income Limits). A Homebuyer applicant’s family income must be high enough

to afford the minimum monthly house payment and the applicant’s family income must

demonstrate, through a detailed client action plan, that the family will be able to achieve

mortgage readiness within an established time frame not to exceed 3 years. Mortgage

readiness qualifying ratios as set forth by the NPTHA, the specific lending institution, or the

specific program will be applied. Factors governing the analysis and verification of income

are set forth in the applicable Underwriting Procedures of the NPTHA or the Section 184

Guaranteed Loan as they now exist or as they may hereafter be revised or added to by the

NPTHA.

G. The Executive Director may allow participants whose family income exceeds the income

levels established for lower income families to be admitted to the OP Program in

accordance with the guidelines established by the Non-Low Income Assistance Policy. The

determination to provide such assistance must demonstrate that there is a documented

need for housing for such families that cannot reasonably be met without such assistance,

consistent with the applicable regulations and policies governing that program. In all

instances, assistance and benefit can not be the same as for a Low-Income family.

Payment requirements and any other assistance will be according to rates established by

the NPTHA for moderate and above moderate-income families and affordability.

H. Employment Stability: For an applicant to be financially eligible for the OP Program, they

must have at least two years stable income and also demonstrate the ability to maintain at

least their present level of income. This will be verified by staff and may be satisfied by a

written statement from the applicant’s employer. If it is not feasible to determine income

potential from an employer, this verification may come from copies of the applicant’s income

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tax returns for the last three years prior to the application date. The applicant must sign a

IRS Form 4056, authorizing the IRS to release the information to the NPTHA. These

income tax returns will be kept on file and new ones will be submitted each year thereafter

until the option is exercised.

I. Ability to Enter Into an Agreement: For a family to be eligible for admission to the OP

Program, they must be at least 21 years of age and have the legal capacity to enter into a

Use & Occupancy Agreement and be willing and able to meet all obligations of the Use &

Occupancy Agreement. The applicant family must be willing to commit the time required to

comply with all of the housing counseling and education requirements.

J. Admission of Single Persons in the Process of Securing Legal Custody: An applicant in the

process of securing legal custody through other means than adoption must provide

evidence that success of obtaining legal custody is likely. This determination of reasonable

likelihood of success will be made at the time an offer of a unit is to be made to an

individual. If at that time it is determined that there is not a likelihood of success, then that

individual nonetheless shall be allowed to retain his place on the waiting list, with any

preference for which he remains eligible and with his original date and time of application

until custody is secured. At that time the individual will be offered an appropriate unit in

accordance with his position on the waiting list.

K. Credit, Use & Maintenance History: All applicants must have a satisfactory credit, use, and

maintenance history. The following will be required at a minimum. Additional requirements

and specifics pertaining to analysis are governed by the NPTHA Underwriting Procedures or

the Section 184 underwriting procedures.

1. Credit history will be verified by a credit report and any or all of theses sources or other

means as determined by the NPTHA:

a. Two or more landlord or lender references detailing previous house payment history.

b. Non-traditional means.

2. Use and maintenance history will be documented by one or both of these sources:

a. Landlord references from the previous 5 years.

b. Police/Court record check.

If negative reference on either the credit or use/maintenance history are obtained, staff will

notify the applicant in writing of the negative items found. The applicant will be afforded an

opportunity to respond in writing within 5 working days of the postmarked date of the notice

regarding any negative information derived from any source. The response will be taken into

consideration in determining the applicant’s eligibility.

L. Habits & Practices: An applicant must be of good character and possess habits and

practices that promote safe, clean and healthy homes, property and communities. This also

applies to applicant’s household members as they appear on the application or as they are

requested to be added to the occupancy agreement.

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M. Social Security Numbers: To be eligible, the families must disclose and verify social

security number for all family members.

N. Privacy Act Statement: Participants must sign the Privacy Act Statement initially and each

year thereafter until the option to purchase is exercised. Eligibility for admission or

continued occupancy will be denied for failure to comply with the Privacy Act requirement.

O. Previous Assistance from Other Housing Authority: Participants in other housing authority

programs may apply for housing and be placed on the waiting list. Verification that the

applicant has terminated the other assisted unit agreement and terminated in good standing

must be obtained before the applicant will be allowed to participate in the OP Program.

P. Previously Assisted NPTHA Resident: No applicant or applicant’s household member who

has an outstanding debt to the NPTHA or whose participation was terminated by the

NPTHA will be eligible for assistance until the following conditions are satisfied:

1. Voluntary Terminations: Any outstanding debt from an applicant or an applicant’s

household member must be paid in full prior to consideration.

2. Involuntary Terminations: Any applicant whose assistance was terminated by the

NPTHA or who was evicted for nonpayment will not be considered eligible for a period of

one (1) year from date of full payment and verification from a landlord who verifies that

the applicant had a satisfactory payment history.

Q. Compensating Factors: In rare circumstances, and only with supporting documentation,

may an applicant family be selected if the projected house payment and other projected

housing costs (i.e., monthly maintenance reserve, utilities, etc.) would exceed the income

limits defined and established by the specific program assisting the Homebuyer or the family

income just barely meets the minimum requirements. Compensating factors will be

considered in accordance with the Underwriting Procedures of the NPTHA as they now exist

or as they may hereafter be amended. The Housing Counselors will submit a

recommendation with supporting documentation to the Executive Director for a final

decision. There must be compelling factors documenting that the family would be able to

fully meet the obligations of homeownership, such as, but not limited to, the following:

1. Documented family income from sources which are not counted towards computation of

adjusted monthly income, i.e., per capita payments, etc.

2. The family’s ability to supplement income by providing its own foods, fuel, or other

necessities.

3. Prior history indicating rental payments exceeding the NPTHA house payment.

4. The family will be required to sign a statement verifying that they are aware they are

below income and that they feel they are able to meet and maintain the payment

calculated by staff and pay for all maintenance expenses.

5. History of excellent repayment of all debt obligations.

6. Good landlord, creditor references.

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7. Stable savings account.

SECTION 7: BASIS FOR INELIGIBILITY

The reasons for a determination of ineligibility are based on NPTHA policies and other

applicable program regulations. Although an applicant may meet the basic criteria for eligibility,

any one of a number of reasons can form the basis of a determination of ineligibility. Families

who have applied for housing or who have applied to add an additional occupant, and who, for

any reason, have been determined to be ineligible will be notified by staff in writing, stating the

reasons for their ineligibility. The family would then be entitled to an informal hearing under the

provisions of the Grievance Policy. All information relative to the rejection of an applicant family

must be documented and placed in the applicant family’s file for future reference.

A. The following does not represent an exhaustive list of reasons an applicant may be denied

final selection as a Homebuyer; however, it is illustrative of many common reasons for a

determination of ineligibility.

1. Failing to repay previous debts owed to any housing authority or other HUD program.

2. Conviction of fraud in connection with any HUD program, or failing to disclose previously

committed fraud in connection with any HUD program.

3. Prior conviction of crime(s) of a sexual nature.

4. Non-cooperation. Refusing or failing to complete required forms or to supply requested

information.

5. Applicants who appear on HUD’s List of Suspensions, Debarments, and Limited Denial

of Participation.

6. The applicant family does not qualify as a family according to the applicable program

requirements.

7. The applicant family does not meet the income requirements.

8. Lack of verifiable information

9. The applicant previously participated in the program.

10. Family composition is not compatible with the occupancy standards applicable to the

vacant unit.

11. The applicant family has a record of unsatisfactory performance in meeting past financial

obligations.

12. NPTHA records indicate that the applicant family has an outstanding debt.

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13. Applicant family has a record of destruction of property, acts which would imperil the

health, safety or peaceful occupancy of neighbors, and/or disregard for the rights of

others and the rules of occupancy.

14. The applicant family has a pattern of violent behavior. This includes evidence of

repeated acts of violence on the part of a member of the family or a pattern of conduct

constituting danger to peaceful relationships with neighbors.

15. The applicant family has a record of any illegal activity which would impair the physical

or social environment of the surrounding neighbors, including but not limited to trafficking

in drugs, use and/or possession of drugs, prostitution, possession of explosives, illegal

possession of firearms, crimes of violence against persons or property.

16. The applicant family has a history of unsanitary or poor housekeeping habits.

17. The applicant family has provided false information on the application or other

application on file with NPTHA.

18. The applicant family has a history of lease violations.

19. NPTHA Participants who were evicted for non-payment of any financial obligation to

NPTHA will be denied participation in NPTHA housing assistance programs for at least

one year from the date on which all NPTHA debt has been retired and evidence of a

good credit history is verifiable.

20. NPTHA Participants who were evicted for violations due to acts which threatened the

health, safety and welfare or peaceful enjoyment of others will be denied participation in

NPTHA housing assistance programs for at lease three (3) years and references are

positive.

B. Consideration of Derogatory Findings: One minor derogatory finding will not be used as a

basis for denial of eligibility or participation. However, a combination of derogatory findings

may be used as a basis for denial. The inability to achieve mortgage readiness within 3

years is a major derogatory finding. In this event, the applicant will be advised to pursue

housing through a rental program until such time as the obstacles to mortgage readiness

can be overcome within a maximum of 3 years.

Section 8: VERIFICATION

Procedures for verification will be in accordance with the verification guidelines outlined in

HUD Handbook 4350.3 Rev. 1 as it now exists or is hereafter amended.

A.

Verifiable Information: All information must be verifiable. Verification must be obtained

through a third party and in accordance with HUD Handbook 4350.3, as it now exists or

is hereinafter amended. Handbook 4350.3 is hereby incorporated by reference. The

procedures for income verification are detailed in Handbook 4350.3 in Appendix 3,

Acceptable forms of Verification and Appendix 15, Verification and Consent Guidance

and Sample Formats, although the NPTHA reserves the right to develop their own forms.

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B.

Verification of Annual Income: Anticipated annual family income for admission will be

determined by staff on the basis of verification of income at the time of initial application,

unless otherwise stated in the program policy or regulations. To remain on the waiting

list, applicants must inform staff in writing of any changes in income, as they occur. Staff

will reverify eligibility of the applicant based on any change of income and ensure that

the applicant meets all eligibility requirements for admission. Should an applicant

become ineligible based on a change in income, staff will notify the applicant in writing

by certified mail that he no longer qualifies for admission into the program. In addition to

income changes, disqualification may also be caused by program and policy changes.

C.

Verification Time Frame: Applicant information will be verified as soon as possible after

submission of an application. However, if there is a long waiting list, staff may do an

initial assessment of a family’s eligibility and suitability at the time of application and wait

to do a more complete evaluation until shortly before admission. By doing this, staff will

avoid the time and expense involved in evaluating applicants who may withdraw from the

waiting lists before their names can be reached. Verifications are only good for 90 days

and must be recertified 30 days prior to occupancy. See HUD Handbook 4350.3 Rev. 1

for additional guidance.

D.

Verification Data: Verification data are to be reviewed and evaluated as they are

received for completeness, adequacy, and conclusiveness. Where the information

received is not completely adequate in all respects, follow-ups or new efforts to obtain

such information are to be made and carried through to conclusion. The NPTHA has the

right to ask for any information from the applicant that the NPTHA deems necessary to

completing the process. See HUD Handbook 4350.3 Rev. 1 for additional guidance.

E.

Verification Summary: As verification of all necessary items for each application are

completed, a summary of the verified information is to be prepared and filed in the

tenant’s folder. The summary is to cover at least the following determinations and the

basis for such determinations:

a. Family Status;

b. Nez Perce Enrollment;

c. Eligibility as a low-income family;

d. Eligibility of the family with respect to Section 6 of this policy;

e. Counseling requirements/Client Action Plan;

f. Rent Calculation;

g. Management or administrative fee, if applicable.

See HUD Handbook 4350.3 Rev. 1 for additional guidance.

SECTION 9: SELECTION OF FAMILIES FOR A NPTHA HOUSE

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A. Selection includes a three step process.

1. Applicants must first be determined to be eligible which includes completing the initial

HBE class. Applicants must be able to qualify for mortgage readiness within a maximum

of three years (36 months).

2. Once eligibility and qualification requirements have been met, applicants are placed on a

waiting list according to established preferences.

3. Selections from the preference list will be made according to the targeted number of

mortgage ready applicants. The schedule of targeted dates is governed by NPTHA

requirements to meet debt service and to provide additional services resulting from the

sale of units. Those who can immediately secure a mortgage for a NPTHA built home

will be selected first.

Thereafter, applicants will be selected for a NPTHA built-home as follows: (NPTHA

RESERVES THE RIGHT.)

Mortgage Readiness

Range

Targeted #

of Selections

Future OP Assistance

Potential

Projected

FY

1

0 to 1 month (immediate)

3

-

-

2

2 to 6 months

0

0

-

3

7 to 12 months

1

0

2005

4

13 to 24 months

5

2

2006

5

25 to 30 months

4

2

2007

6

31 to 36 months

7

5

2008

TOTAL (2-6)

20

25*

5 Years**

*Subject to the availability of lots

**Depends on the availability of funds

Those who can immediately qualify for a mortgage for a NPTHA built-home will obtain the

construction financing in their own name with NPTHA’s contractor as the builder. This

section of the Sundown Heights Policy only refers to applicants who can qualify for a

NPTHA built-home within targeted time frames. It does not apply to those who desire to

build their own home with their own plans and specifications on a lot other than NPTHA

designated lots.

All selections will be made from the established waiting list preferences. If the targeted

number of selections can not be satisfied from the Waiting List for Preference 1,

consideration will be given to those wait listed for Preference 2, and so forth. Replacements

will also be selected to facilitate meeting the above targets.

B. Eligibility at the time of selection: The applicant must be an enrolled member of the Nez

Perce Tribe, meet the other eligibility requirements pursuant to Section 6 and 7.

C. Qualifications: In order to qualify for the OP applicants must be eligible applicants, execute

and participate in completing a Client Action Plan (CAP), and meet the qualifications for

mortgage readiness within a maximum of 3 yeas. The factors to be used in making this

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determination include credit history, household income, employment, character, and ability

to afford a mortgage payment and meet all other obligations of homeownership.

D. Preferences: Preferences are established for 2 categories of preferences. The NPTHA will

give first preference to families consisting of all Nez Perce members enrolled in the Nez

Perce Tribe. A second category of preference will be given to enrolled members of the Nez

Perce Tribe whose family composition includes non-enrolled Nez Perce members. There

are a total of 8 waiting lists. See the definitions for family type and composition in Section 6,

B. Waiting lists are established for each preference as follows:

1. Waiting List Prefence1: All Nez Perce families who have never been assisted, do not

own a home, are Low- or moderate income and meet all qualifications.

2. Waiting List Preference 2: All Nez Perce families who do not own a home, have been

previously assisted but did not achieve homeownership for acceptable reasons, are Lowor moderate-income, and meet all qualifications;

3. Waiting List Preference 3: All Nez Perce families who do not own a home, are currently

assisted by a NPTHA homeownership opportunity program but have not yet achieved

homeownership, are Low- or moderate-income, and can meet all qualifications and the

following requirements:

a. MUTUAL HELP

(1) Able and willing to relinquish rights under the MHOA to apply for an OP Program

house in order to meet HUD occupancy standards

(2) Existing MH residence does not comply with HUD occupancy standards.

(3) Family must have a good payment history

(4) Any equity remaining after all costs associated with the existing mutual help have

been met must be applied to the new unit or remain with the NPTHA as determined

by the NPTHA, and;

(5) Any costs exceeding the equity balance must be paid prior to acceptance.

b. STARTER HOME

(1) Family must have a good payment history;

(2) Family must leave the home in good condition for resale;

(3) Family must be able to qualify for mortgage assumption within six (6) months, and

(4) Any costs to bring the home to resale condition exceeding the deposit must be paid

prior to acceptance.

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4. Waiting List Preference 4: An Indian family with a Nez Perce applicant who has never

been assisted, does not own a home, is Low- or moderate-income, and meets all

qualifications;

5. Waiting List Preference 5: An Indian family with a Nez Perce applicant who does not

own a home, has been previously assisted but did not achieve homeownership for

acceptable reasons, and is Low- or moderate-income and meets all qualifications;

6. Waiting List Preference 6: An Indian family with a Nez Perce applicant who does not

own a home, is currently assisted by a NPTHA homeownership opportunity program but

has not yet achieved homeownership, is Low- or moderate-income, and can meet all

qualifications and the following conditions:

a. MUTUAL HELP

(1) Able and willing to relinquish rights under the MHOA to apply for an OP Program

house in order to meet HUD occupancy standards

(2) Existing MH residence does not comply with HUD occupancy standards.

(3) Family must have a good payment history

(4) Any equity remaining after all costs associated with the existing mutual help have

been meet must be applied to the new unit or remain with the NPTHA as determined

by the NPTHA, and;

(5) Any costs exceeding the equity balance must be paid prior to acceptance.

b. STARTER HOME

(1) Family must have a good payment history;

(2) Family must leave the home in good condition for resale;

(3) Family must be able to qualify for mortgage assumption within six (6) months, and

(4) Any costs to bring the home to resale condition exceeding the deposit must be paid

prior to acceptance.

7. Waiting List Preference 7: All Nez Perce families who do not own a home and do not

meet any of the above Waiting List categories, are Low- or moderate-income, and meet

all qualifications.

8. Waiting List Preference 8: An Indian family with a Nez Perce applicant who does not

own a home, does not meet any of the above Waiting List Categories, is Low- or

moderate-income, and meets all qualifications. The preference waiting lists must be

considered in descending order for each number of applicants targeted for each interval

or mortgage readiness identified.

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E. Rejection of Offer: An applicant will be offered no more than 2 homes. Only a maximum of

15 days will be allowed for an applicant to accept or reject an offer. When an applicant

refuses two (2) offers of a home or homesite, the applicant will be ineligible for a period of

one (1) year from the date of refusal of the second site offer. However, the applicant can

apply for other NPTHA assistance.

SECTION 10: OP PROGRAM RENT & OTHER PAYMENTS

This section describes the rental payments required during the rental phase of the program and, if

applicable, any additional required payments. Once the Homebuyer exercises the option to

purchase, recertification requirements will not apply.

A. Rent Payment for Low-Income Families: During the rental phase of the OP program, low

income families will be charged a monthly rent payment based upon the following:

1. Debt service on the underlying NPTHA loan for the home,

2. An income based management fee of a minimum of $130 or an amount determined by

the NPTHA.

B. Rent Payments for Moderate-Income Families:

1. Families who are moderate-income either during their tenancy or at the time of

application are not eligible for the same benefits as low-income families and must have

their rental payment calculated in accordance with the NPTHA policy for non-low-income

families. Monthly rental payments will be based on the following, whichever is greatest:

a. The Fair Market Rent published by HUD in the Federal Register

b. The debt service payment based on the purchase price of the home utilizing the

same interest rate in effect on the underlying NPTHA loan.

C. Rent Payments for Above Moderate-Income Families:

1. Families who become above moderate-income during their tenancy are not eligible for

the same benefits as low-income families and must have their rental payment calculated

in accordance with the NPTHA policy for non-low-income families. Monthly rental

payments will be based on the following, whichever is greatest:

a. The Fair Market Rent published by HUD in the Federal Register

b. The debt service payment based on the purchase price of the home utilizing the

same interest rate in effect on the underlying NPTHA loan.

D. Late Payments: If the required rental payment is not received by close of business on the

15th day of the month, NPTHA staff will issue a Delinquency Notice, sent by regular mail,

and a $10 fee will be added to the amount due to cover the costs of preparation and mailing

of the delinquency notice. Continued delinquencies will be assessed charges in accordance

with the NPTHA Collection and Eviction Policy.

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C. Application of Payments: Payments made as rent will be applied at the NPTHA Discretion

to any outstanding balances which may include rent, or any other balances owed.

D. Partial Payments Conditions: The NPTHA retains the right to accept partial payments after

a delinquency notice or termination notice has been issued. NPTHA’s acceptance of any

such partial payments does not constitute a waiver of NPTHA’s rights under any such

notice.

E. Management Fee: A management fee of a minimum of $130 will be assessed to each

resident. Management fees will be used to ensure coverage of operating expenses and to

recover buy-down expenses. The NPTHA will prepare a schedule annually to reflect

increases in the management fee if necessary.

SECTION 11: RECERTIFICATION PROCESS

Procedures for recertification will be guided by the recertification guidelines outlined in HUD

Handbook 4350.3 Rev. 1 as it now exists or is hereafter amended. Once the Homebuyer

exercises the option to purchase, recertification requirements will not apply.

A. Purpose: Recertification is conducted to assist Homebuyers in achieving homeownership

and to meet the obligations of the Client Action Plan. It is not for the purpose of rent

reduction anytime a Homebuyer’s income is reduced. Income is anticipated income.

Consequently, monthly recertifications are not to be performed. Staff is to counsel

applicants and Homebuyers frequently about the requirements for homeownership and the

family’s responsibility to budget personal finances accordingly.

B. Frequency: All OP Homebuyers must complete an annual recertification or whenever a

change in income or family composition occurs until such time they either terminate or

exercise their option to purchase. Recertification is scheduled to occur on an annual basis

in the quarter in which the initial move-in occurred.

C. Interim Redetermination of Family Income: No rent adjustments are to be offered between

dates of periodic re-examinations or pre-scheduled re-examinations (as set forth above),

except as provided in Subparagraphs 1 and 2 below.

1. In addition to submitting such information as may be required at time of periodic reexaminations (or special re-examination) of eligibility and redetermination of family

income, Homebuyers are required to report the loss of lessee through death, divorce or

other continuing circumstances.

2. Any new additions to the household must apply as a new occupant to determine if they

meet the requirements of the program.

3. Any tenant who reports a significant continuing change in family circumstances (such as

permanent loss of employment, death of the applicant, income increases) shall be given

an interim income redetermination. In the event the minimum rent requirements can not

be met, the NPTHA will assist the Homebuyer family in finding a rental in another

program.

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4. Interim redeterminations may be conducted as required by the NPTHA and are to be

used to check progress according to the Client Action Plan.

5. Failure to report the occurrences of the changes set forth above will require a retroactive

rent charge or other action appropriate to the violation.

D. Process: To assure that the data upon which the determination of eligibility for continued

occupancy, rent to be paid, and size of dwelling required are to be based full, true, and

complete, the information submitted by each tenant is to be verified before any changes can

take effect. Complete and accurate verification records are to be maintained in the tenant’s

folder.

E. Release of Information: When verifying and certifying income for eligibility, all adult family

members shall provide appropriate authorizations for release of information, so staff can

obtain third party verification. Each family must furnish information about the amounts and

sources of all income to the household and may be required to produce tax returns,

paycheck stubs and any other evidence of income.

F. Adjustments: Adjustments will be made only after a thorough review of the household’s

anticipated income and will be made on a case-by-case basis. Because this is a

homeownership program, adjustments resulting in a decrease in the rental payment will only

be considered for very extreme circumstances that have long-term impact. The

management fee will not be reduced if the amount of the buy down assistance exceeds the

amount needed at the time of application.

G. Verification Data: Verification data is to be reviewed and evaluated as they are received for

completeness, adequacy, and conclusiveness. Where the information received is not

completely adequate in all respects, follow-ups or new efforts to obtain such information are

to be made and carried through to conclusion. The NPTHA has the right to ask for any

information from the applicant that the NPTHA deems necessary to completing the process.

H. Verification Summary: As verification of all necessary items for each application are

completed, a summary of the verified information is to be prepared and filed in the

Homebuyer’s folder. The summary is to cover at least the following determinations and the

basis for such determinations:

1. Family status;

2. Nez Perce enrollment;

3. Eligibility as a low-income family;

4. Eligibility of the family with respect to Sections 7 and 8 of this Policy;

5. Counseling requirements/Client Action Plan;

6. Rent calculation;

7. Management fee calculation.

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I. Certification: As part of the record of each family reexamined, a designated staff member is

to complete and sign an eligibility certification which is to be filed in the Homebuyer’s folder.

J. Action Required Following Re-examination: Within 30 days after the tenant has submitted

all the information required of the Homebuyer to comply with continued occupancy, he is to

be informed concerning:

1. Eligibility status and, if ineligible, the action to be taken;

2. Any adjustments with instructions for making changes if necessary (e.g., executing a

new lease or amendment if required; payment arrangements; etc.); and

3. Any instances of misrepresentation or non-compliance with the terms of the Use and

Occupancy Agreement revealed through reexamination and any corrective action which

is to be taken.

K. Retroactive: If the reexamination discloses that the tenant, at the time of admission or at

any previous reexamination, made misrepresentations, intentional or unintentional, which

have resulted in the paying of a lower rent and fee than he should have paid, the

Homebuyer is required to pay the differences between what was paid and what should have

been paid. If it is found at the time of reexamination or at any other time that the

Homebuyer has failed to report other changes in family circumstances and such changes

would have required the Homebuyer to pay a higher rent, the increased rent is to be made

retroactive to the second rent payment period after the date on which the change of

circumstances occurred.

L. Concerns: In the event there are concerns regarding the information obtained, the staff will

report the concerns to the Executive Director. The Executive Director will review the

information and make a determination.

M. Quality Control: After reviewing the application data, the Housing Counselor will make a

written recommendation for action and submit the file to a second Housing Counselor. The

Housing Counselor will provide a second review of the file and document in the file the

action to be taken. If there is no agreement regarding the action to be taken, the

information will be forwarded to the Executive Director for review and action. All

recommendations and actions are to be in the form of written documentation.

N. Notices: The Homebuyer will be notified in writing when they are required to recertify.

O. Reporting: A monthly report of the status of recertifications will be completed by the

Housing Counselors to the Executive Director.

SECTION 12: INCOME

A. Policy: It is the policy of the NPTHA to use the definition of income (e.g., IRS, Census,

Section 8) most advantageous to the family or to the housing entity as provided by

NAHASDA.

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B. Verification: Section 1000.128 of NAHASDA requires the NPTHA to verify that the family is

income eligible based on anticipated annual income. The family household’s annual income

may not exceed the applicable income limits (NAHASDA Guidance No. 2004-03 Income

Limits dated February 10, 2004). Each year these guidance numbers are revised and

supersede the previous year’s guidance.

C. Documentation: The family is required to provide verifiable income documentation to verify

this determination. The NPTHA is required to maintain the documentation on which the

determination of eligibility is based. The NPTHA will require a family to periodically verify its

income in order to determine housing payments, fees, household composition, or continued

occupancy.

D. Income Limits: Whenever HUD funds are used to assist a family, the NPTHA will utilize the

HUD national median income limits as amended annually as the applicable income limits.

E. Applicable Definition: The NPTHA will use the meaning of annual income as defined for

HUD’s Section 8 programs in 24 CFR, part 5, subpart F. In using the HUD’s Section 8

program definition of annual income the NPTHA will exclude from annual income any

amounts that are on the list of Federally Mandated Exclusions as amended from time to

time in the Federal Register.

F. Meaning of Annual Income: Annual income is defined in accordance with Section 8 and 24

CFR Part 5, Subpart F (Section 5.609).

G. Calculation of Income: Income will be calculated in accordance with the procedures

outlined in HUD Handbook 4350.3 as it now exists or is hereafter amended.

SECTION 13: OCCUPANCY

A. Only the persons listed on the Use & Occupancy Agreement will be permitted to occupy the

unit. The NPTHA must be immediately notified if changes to the household should occur.

Occupancy by any persons is subject to the eligibility requirements of the relevant NPTHA

Program. Eligibility MUST be certified PRIOR to any additional persons taking occupancy.

B. Exclusive Use : The premises is intended for the exclusive use and occupancy of those on

the Use and Occupancy Agreement. Guests or visitors of the tenant may be

accommodated no longer than a period of two (2) weeks. “Guest” means a person in the

unit with the consent of the tenant. If any visit will extend beyond two (2) weeks, the tenant

must notify the NPTHA, stating the reasons for the extended visit, which must be authorized

in writing by the NPTHA.

C. Occupancy Standards : In order to prevent overcrowded conditions and wasted space,

homes shall be assigned, to the greatest extent feasible, in accordance with the following

schedule. The NPTHA may make exceptions due to unusual circumstances which will be

assessed on a case by case basis. Factors to be considered include age and sex of

children, potential changes in family composition, availability of unit sizes, etc.

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NUMBER OF BEDROOMS

Note:

NUMBER OF PERSONS

2 BR

1-3

3 BR

3-6

4 BR

5-8

5 BR

7 & up

The TDHE may modify this chart as needed.

D. Other Occupancy Factors :

1. Dwellings will be assigned so as not to require use of the living room for sleeping purposes.

2. Every family member regardless of age is to be counted as a person. An unborn child

will be counted as a person.

E. Use of the Home

1. The tenant and the NPTHA are jointly responsible to the Tribe and future generations for

ensuring that homes are used properly and are well maintained.

2. It is the responsibility of each tenant to take pride in their home by keeping it and the

grounds in a decent, safe and sanitary condition at all times.

3. Tenant are responsible for all home repairs and are expected to perform necessary

maintenance in a timely manner.

4. Instances of serious abuse or misuse of a home by a tenant, or failure by the tenant to

provide basic routine or non-routine maintenance are causes for termination from the

housing program.

5. A condition for selection is that the family agrees to use the home as their principal

residence or for at least nine months of the year during the term of the Use and

Occupancy Agreement.

F. Home Business Use : A tenant must request prior written approval from the Executive

Director to operate a small home business in their unit. The request is subject to the

conditions specified in the NPTHA Home Business Use Policy.

SECTION 14: SECURITY, DAMAGE AND CLEANING DEPOSIT

A. Condition of Premises: Participants in the NPTHA OP Program must stipulate that they

have examined the premises, including the grounds, buildings, improvements and

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appliances (if any), and that they are, at the time of move-in, in good order, good repair,

safe, clean and tenable condition, and Homebuyer accepts the same as is and with all

faults. A Move-In Inspection form will be used to determine the condition and cleaniness of

the premises at the beginning of tenancy and a Move-Out Inspection form will be used at

the termination of tenancy.

B. Deposit: Participants are required to provide a deposit of Five Hundred Dollars ($500.00) as

a security, damage and cleaning deposit. Deposit is to be paid in full prior to move-in.

Payback arrangements are not permitted. Release of said deposit is subject to the following

terms and conditions:

1. At the expiration of the term of the Use & Occupancy Agreement or other termination,

except for a termination by the Homebuyer’s exercise of the option to purchase, there is

no damage to the property beyond ordinary wear and tear, no parts or household

fixtures require replacement, and the property is in the same condition of cleanliness:

2. The Move-In Inspection form will be used to determine the condition and cleanliness of

the premises at the beginning and termination of the tenancy;

3. There are no unpaid late charges, delinquent rents, or any other unpaid charges;

4. All keys are returned (Rental charges will continue until all keys are returned or a written,

signed letter from the lessee(s) stating that the keys are lost is received at the NPTHA

office);

5. All debris, rubbish and discards are placed in proper disposal containers;

6. Forwarding address is left with NPTHA;

7. The deposit or remainder thereof, if any, after any required cleaning and repair, will be

refunded within ninety (90) days by check made payable to each person signing the Use

& Occupancy Agreement as the lessees, and mailed to the forwarding address; and

8. If the Homebuyer exercises the option to purchase, the deposit will be applied to the

purchase price.

SECTION 15: CLIENT ACTION PLAN & HOUSING COUNSELING

A. Completion of Required Actions: All Homebuyers and each occupant of the premises will

complete all “Required Actions” as described in the Client Action Plan (CAP), which shall

become a part of the Use & Occupancy Agreement. The Homebuyers must agree that all

actions will be completed in a period of time not to exceed 36 months from the effective date

of the Use & Occupancy Agreement.

B. Condition of Participation: As a condition of participation in the NPTHA housing programs

the Homebuyer will attend and satisfactorily complete Housing Education/Counseling

provided by the NPTHA in accordance with the NPTHA Housing Counseling Policy.

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C. One-on-One Housing Counseling: If NPTHA deems it advisable or necessary, the

Homebuyer will attend as many One-on-One Housing Counseling sessions as needed to

meet the requirements with respect to property maintenance, financial management,

compliance with the Client Action Plan, and such other matters as may be appropriate.

D. Failure to Comply: with the Housing Counseling requirements or the Client Action Plan is a

matter of non-compliance which will result in termination of participation in the OP Program.

SECTION 16: MOVE-IN PROCESS

A. Move-In Inspection: A Move-In Inspection will be conducted on the date of admission into

the Program by a Housing Counselor and the tenant to verify the unit is in standard

condition and is ready for occupancy. The Move-In Inspection provides the information that

is used to compare to the information gathered during the Move-Out Inspection process. A

comparison of both inspections forms the basis for determining whether or not the unit is in

the same condition as it was when it was first rented.

B. Documentation Requirements: A NPTHA Move-In Inspection Form must be used to

document the move-in process. The tenant must sign and date the Move-In Inspection

Form to verify the tenant’s acceptance of occupancy and the condition of the premises. The

Housing Counselor must also sign the Move-In Inspection form. Minor deficiencies that are

readily repairable must be noted and a work order issued to make the repairs at the NPTHA

expense. Any major deficiency must be corrected before occupancy can be permitted.

C. Punch list Items : Minor deficiencies that are readily repairable must be noted and a work

order issued to make the repairs. The tenant is not responsible for any charges related to

the repair of noted punch list items. Any major deficiency must be corrected before

occupancy can be permitted.

D. Warranty Period : The NPTHA has a one-year warranty period for items which have been

replaced or required major repair by the NPTHA prior to the move-in of the tenant. These

costs are not charged to the tenant; however, any additional items reported during the

warranty period which are not deemed a warranty item are items for which the tenant is

responsible for the expense of repair or replacement. The one-year warranty period

commences on the date of the Move-In Inspection documenting acceptance of occupancy.

E. Warranty Information : Copies of suppliers’ names and addresses and other relevant

information for which there are warranty certificates (i.e., warranty certificates cover specific

time periods or specific parts of an item) are to be provided to the tenant. Originals are to

be provided to program participants. The NPTHA maintenance staff is to maintain this

information in the unit file until a tenant terminates or purchases the unit.

F. Participant Responsibility: The Homebuyer is responsible for contacting the supplier or

manufacturer directly when the Homebuyer experiences problems with any of the items for

which a warranty certificate has been provided. Participants are to be advised that the

warranted certificate items do not include the cost for a service call and for the labor cost for

repairs unless it is specifically noted in the warranty. Maintenance staff should provide the

Homebuyer with assistance in understanding maintenance obligations.

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SECTION 17: MOVE-OUT PROCESS

A. Move-Out Inspection: A Move-Out Inspection will be conducted within 24 hours of obtaining

legal possession of the unit. The Move-Out Inspection provides the information that is used

to compare to the information gathered during the Move-In Inspection process. A

comparison of both inspection forms provides the basis for determining whether or not the

unit is in the same condition as it was when it was first rented except for normal wear and

tear.

B. Documentation Requirements: A NPTHA Move-Out Checklist and an Inspection Form must

be used to document the move-out process. The tenant must sign and date the Move-Out

Inspection Form to verify any tenant damage, document any needed routine repairs, etc.

The Housing staff must also sign the Move-Out Inspection form. Deficiencies and an

estimate of all costs are noted. A work order is issued to make the repairs.

C. Punch List Items: Minor deficiencies that are readily repairable must be noted and a work

order issued to make the repairs. The participant is not responsible for any charges related

to the repair of noted punch list items. Any major deficiency must be corrected before

occupancy can be permitted.

D. Executive Director shall prepare and implement procedures to ensure a smooth transition

from the move-out process to the move-in process. Below is an outline of essential

procedures which may be amended by the Executive Director as needed.

1. Move out checklist prepared and distributed.

2. Work Order prepared.

3. Move out inspection completed within 24 hours.

4. Maintenance Department changes locks.

5. Cost estimate prepared.

6. Cost estimate reviewed and approved.

7. Order appraisal if applicable.

8. Schedule.

9. Inspect and prepare punch list.

10. Conduct final inspection.

11. Complete processing and forward applicable information to appropriate

departments/staff and document approvals.

12. Process for billing.

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SECTION 18: MAINTENANCE AND REPAIR

A. Responsibility : The Homebuyer will, at his sole expense, keep and maintain the leased

premises, including the grounds, buildings, improvements and appliances in good order,

good repair, safe and clean and sanitary. The Homebuyer shall make all necessary repairs,

alterations and improvements to the dwelling with reasonable promptness at his own cost

and expense, including repairs and replacements necessitated by damage from any cause.

The NPTHA shall not be obligated to pay for or to provide any maintenance of the home

other than the correction of warranty items for NPTHA workmanship reported during the

applicable warranty period, which is one year from move-in.

B. Notification: Although the tenant is responsible for all maintenance, the tenant shall notify

the NPTHA promptly of all known need for repairs and of any known unsafe conditions on

the premises or grounds, which may either lead to damage or to injury. The NPTHA staff

can assist the tenant through inspection and counseling. Any repairs made by the NPTHA

are to be charged directly to the tenant.

C. Failure of the tenant to perform his maintenance obligations constitutes a breach of this

policy and is grounds for termination of program assistance. Upon a determination by the

NPTHA that a breach has occurred, the NPTHA shall require the tenant to agree to a

specific plan of action to cure the breach and to assure future compliance. The plan shall

provide for maintenance work to be done within a reasonable time by the tenant in a good

workmanlike manner in accordance with the Uniform Building Code. If the tenant fails to

carry out the plan, the NPTHA shall have the work done and charge the cost to the tenant

thereof. Such charges will be billed by the NPTHA to the tenant as additional rent.

D. If the condition of the property creates a hazard to the life, health or safety of the occupants

and the tenant fails to correct the deficiency in an expeditious manner, the NPTHA shall

have the work done, and charge the cost thereof to the tenant.

E. Work Order : Any work performed by the NPTHA shall be documented by a work order

stating the nature of and the charge for the work.

F. Charges : The tenant will be charged for any work performed by the NPTHA.

SECTION 19: HOUSEKEEPING STANDARDS

In an effort to improve the livability and conditions of the units owned and managed by the NPTHA,

uniform standards for resident housekeeping have been developed for all resident families.

A. NPTHA Responsibility : The standards that follow will be applied fairly and uniformly to all

Homebuyers. The NPTHA will inspect each unit at least annually, to determine compliance

with the standards. Upon completion of an inspection, the NPTHA will notify the tenant in

Adopted 10/18/06 NPTHA Resolution 2006-13

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writing if he/she fails to comply with the standards. The NPTHA will advise the tenant of the

specific correction(s) that the tenant will be required to perform to establish compliance, and

indicate whether or not mandatory counseling is required. Within a reasonable period of

time, the NPTHA will schedule a second inspection. Failure to comply with (3) three

requests for unit inspection within 30 days will constitute a violation of the Policy terms and

is grounds for termination of the Use & Occupancy Agreement and may result in eviction.

Training will be available at no cost to the tenant requesting or needing assistance in

complying with the Housekeeping Standards.

B. Participant Responsibility : The tenant is required to abide by the standards set forth below.

Failure to abide by the Housekeeping Standards that result in the creation or maintenance

of a threat to health or safety is a violation of the Use & Occupancy Agreement terms and

can result in eviction.

C. Housekeeping Standards: Inside the Unit

General–



Walls should be clean, free of dirt, grease, holes, cobwebs, and fingerprints.



Floors should be clean, clear, dry and free of hazards



Ceilings should be clean and free of cobwebs.



Windows should be clean and not nailed shut with shades or blinds intact.



Woodwork should be clean, free of dust, gouges, or scratches.



Doors should be clean, free of grease and fingerprints, with functional locks.



Heating units should be dusted and access uncluttered.



Trash shall be disposed of properly and not left in the unit.



Entire unit should be free of rodent or insect infestation.

Kitchen-

Stove should be clean and free of food and grease.



Refrigerator should be clean. Freezer door should close properly and gaskets

should be clean.



Cabinets should be clean and neat. Cabinet surfaces and counter tops should

be free of grease and spilled food. Cabinets should not be overloaded.

Storage under the sink should be limited to small or lightweight items to permit

access for repairs.



Exhaust fan filters should be free of grease and dust.



Sink should be clean, free of grease and garbage. Dirty dishes should be

washed and not stored in the sink.



Food storage areas should be neat and clean without spilled food.



Trash/garbage should be stored in a covered container until removed to the

disposal area.

Bathroom-

Toilet and tank should be clean and odor free. Condensation should be wiped

regularly.



Tub and shower should be clean and free of mold and mildew. Where

applicable, shower curtains should be in place, and of adequate length to

prevent spillage.



Sink should be clean.



Vanities should be kept clean and free of water leakage.

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



Exhaust fan should be free of dust.

Floor should be clean and dry.

Storage Areas-

Linen closet should be clean.



Other closets should be clean.



No highly flammable materials should be stored in the unit.



Other storage areas should be clean and free of hazards.

D. Housekeeping Standards: Outside the Unit





















Yards are to be free of debris, trash, and inoperable vehicle and vehicle parts.

Exterior walls should be free of graffiti.

Porches (front and rear) should be clean and free of hazards. No items are to

be stored on the porch. Outdoor porch furnishings shall not impede access to

the unit.

Steps (front and rear) should be clean and free of hazards.

Sidewalks should be clean and free of hazards.

Storm doors should be clean, with glass or screens intact.

Hallways should be clean and free of hazards.

Yards are to be maintained at the tenant’s expense.

Laundry areas should be clean and neat. Lint should be removed from dryers

after use.

Utility room should be free of debris, motor vehicle parts, and flammable

materials.

SECTION 20: UTILITIES

A. Homebuyer Responsibility: The Homebuyer shall be responsible for arranging and paying

for all utility services required on the premises, including water, sewer, solid waste

assessment, and gas and electric charges. Promptly upon execution of the Use &

Occupancy Agreement, the Homebuyer shall furnish to the NPTHA evidence that all

arrangements with the proper utility companies for commencing services in the

Homebuyer’s name have been completed.

B. Non-Compliance: Failure on the part of the Homebuyer to provide all the necessary utility

services, including payment for utilities or deposits for utility services, during any part of the

term of this Use & Occupancy Agreement is grounds for immediate termination of the Use &

Occupancy Agreement. Homebuyers will have three (3) business days to provide evidence

to the NPTHA that any or all of the services have been fully restored. Failure to comply will

initiate a notice to vacate.

SECTION 21: INSPECTION

A. Right of Inspection: NPTHA’s agents shall have the right at all reasonable times during the

term of this OP Program Agreement, with reasonable prior notice, to enter the premises for

the purposes of inspecting the premises and all buildings and improvements thereon to

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verify that the Homebuyer is meeting his maintenance obligations and to provide

maintenance counseling.

B. Without Notice: NPTHA shall have the right to enter the Homebuyer’s premises without

prior notice if NPTHA reasonably believes that an emergency exists that requires such

entrance. NPTHA will promptly notify the Homebuyer in writing of the date, time and

purpose of such entry, and of the emergency which necessitated it.

C. Frequency: Inspections will be conducted at least annually to ensure that the Homebuyer is

meeting his responsibility for providing routine and non-routine maintenance. In the event it

is found that the Homebuyer is not satisfactorily meeting his maintenance responsibilities,

the NPTHA will follow the procedures described below:

1. New Homebuyers

a. Schedule monthly inspections for at least the next three months and mandatory

attendance at the maintenance counseling class.

b. Upon a satisfactory determination that the Homebuyer is meeting his maintenance

obligations, schedule inspection every 3 months.

c. Upon a satisfactory determination that the Homebuyer is meeting his maintenance

obligations, schedule inspection every 6 months.

d. Upon a satisfactory determination that the Homebuyer is meeting his maintenance

obligations, schedule inspection every year.

2. Existing Homebuyers

a. Schedule annual inspection. Upon a satisfactory determination that the Homebuyer

is meeting his maintenance obligations, schedule the next inspection for next year.

b. Upon a dissatisfactory determination, apply appropriate level of scheduled

inspections to ensure that corrected action has been taken. Depending on the

severity, the NPTHA will prescribe a schedule accordingly.

c. Upon a serious finding of non-compliance, follow procedure for new Homebuyers.

D. Corrective Action: Any items that are found to be missing or in need of repair, whether

intentional or unintentional, are to be repaired or replaced at the Homebuyer’s expense.

The following procedure will be followed:

1. A letter will be sent to the Homebuyer indicating the corrective action the resident needs

to make within a set time frame. The Homebuyer will also be notified that the NPTHA

will make the repair and charge the resident directly.

2. The NPTHA reinspects and verifies that the repair has been made and no further action

may be necessary. If the resident fails to make the repair, then the NPTHA will proceed

to the next step.

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3. A work order is issued and the NPTHA proceeds to make arrangements for the repairs

to be made with labor and materials charged to the resident. Inspections of the unit are

then scheduled in accordance with the need as determined by the NPTHA.

E. Non-Compliance: Participant’s refusal to allow NPTHA to enter the premises and all

buildings as described in the NPTHA policies is a serious violation of the OP Program and

action to terminate program participation will be initiated by the appropriate staff.

SECTION 22: ALTERATIONS AND IMPROVEMENTS

A. The tenant shall make no alterations to the buildings on the premises, or construct any

building or make other improvements on the premises, including painting of the interior or

exterior, without the prior, express and written consent of NPTHA.

B. All alterations, changes, and improvements built, constructed or placed on the premises by

the tenant, with the exception of fixtures removable without damage to the premises, and

removable personal property, shall, unless otherwise provided by written agreement

between NPTHA and the tenant, be the property of NPTHA and remain on the premises at

the expiration or earlier termination of the OP Program Agreement.

SECTION 23: ASSIGNMENT AND SUBLETTING

Subletting and assignment of the home is not permitted.

SECTION 24: TRANSFERS

Transfers will not be permitted.

SECTION 25: NPTHA POLICIES

Tenant under the Program are subject to the policies of the NPTHA as they now exist or as they

may hereafter be revised or added by the NPTHA. The NPTHA Client Action Plan, NPTHA

Underwriting Procedures, the NPTHA Housing Counseling Policy, the NPTHA Collection & Eviction

Policy, the NPTHA Grievance Policy, the NPTHA Non-Low Income Assistance Policy, and the

NPTHA Maintenance Policy which are attached hereto, or as they may hereafter be amended, are

by this reference made a part hereof. Violation of the same is grounds for termination of the Use &

Occupancy Agreement.

SECTION 26: RISK OF LOSS/INSURANCE

Responsibility for the provision of fire and other peril insurance on the premises is as follows:

A. NPTHA shall provide fire and other peril insurance on the premises during the rental phase,

however, NPTHA shall not be responsible for the loss of the tenant's personal property by

Adopted 10/18/06 NPTHA Resolution 2006-13

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fire, theft or any other reason. In the event of any loss, the tenant shall pay the insurance

deductible.

B. It shall be the sole responsibility of the tenant during the rental phase to obtain fire and other

peril insurance covering their personal property.

C. Once the renter has exercised his option to purchase the property and has become a

homeowner it shall be the responsibility of the homeowner to obtain hazard insurance

sufficient in amount and kind as required by the Mortgage. Upon final payment on their

mortgage it shall remain the responsibility of the Homeowner to maintain Hazard insurance

on their home and property.

D. Staff responsibility for educating Homebuyer about Hazard Insurance will include

discussions during CAP meetings as well as a Written Requirements Letter provided to the

Homebuyer detailing their responsibilities during the various phases of the OP Program.

E. Evidence of the Homebuyer’s understanding of the requirements for insurance shall be

documented by a statement signed by the Homebuyer attesting to the receipt of information

from the NPTHA staff regarding insurance requirements.

SECTION 27: FIRE

In the event the leased premises shall become untenantable during the rental phase of the OP

Program by reason of fire or other casualty, participation under the Use & Occupancy Agreement

shall terminate and each party shall be relieved of all future liabilities hereunder.

SECTION 28: PERSONAL PROPERTY

All appliances provided with the unit will remain the property of the NPTHA until such time as the

option to purchase is exercised.

SECTION 29: ABANDONMENT OF PERSONAL PROPERTY

Upon non-option termination of a Use & Occupancy Agreement, the NPTHA may dispose of any

item of personal property abandoned by the Homebuyer in any manner deemed suitable by the

NPTHA. Proceeds, if any, after such disposition, may be applied to the payment of amounts owed

by the Homebuyer to NPTHA.

SECTION 30: ABANDONMENT

A.

If at any time during the term of the Use & Occupancy Agreement, the Homebuyer abandons

the premises or any part of the premises, NPTHA may, at its option, enter the premises by

any means without being liable for any prosecution for such entering, and without becoming

liable to the tenant for damages or for any payment of any kind whatever, and may, at

NPTHA's discretion, as agent for the Homebuyer, relet the premises, or any part of the

Adopted 10/18/06 NPTHA Resolution 2006-13

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premises, for the whole or any part of then unexpired term, and may receive and collect all

rent payable by virtue of such reletting, and, at NPTHA's option, hold the Homebuyer liable for

any difference between the rent that would have been payable under the Use & Occupancy

Agreement during the balance of the unexpired term, if the Use & Occupancy Agreement had

continued in force, and the net rent for such period realized by NPTHA by means of such

reletting; or terminate the Use & Occupancy Agreement by sending Notice of Termination to

the Homebuyer as required by the Use & Occupancy Agreement.

B.

If NPTHA's right of re-entry is exercised following abandonment of the premises by the

Homebuyer, then NPTHA may consider any personal property belonging to the Homebuyer

and left on the premises to also have been abandoned, in which case NPTHA may dispose of

all such personal property in any manner NPTHA shall deem proper and is hereby relieved of

all liability for doing so.

SECTION 31: OPTION TO PURCHASE & PURCHASE PRICES

A. Option to Purchase: NPTHA in consideration of the Use & Occupancy Agreement grants to

the Homebuyer the exclusive option to purchase the home and other improvements on the

leased premises, provided that the Homebuyer shall have duly fulfilled all of the provisions

and conditions of the Use & Occupancy Agreement, pursuant to the terms and provisions

hereinafter stated:

1. The option to purchase shall be available for a specific period as determined by the

NPTHA, taking into consideration the Client Action Plan process. The NPTHA will set

the option period any where from immediate assignment up to assignment within 36

months depending on the NPTHA’s debt capacity and the need to assist other

Homebuyers. The option period can not exceed the limits set forth by the NPTHA.

2. The Sundown Heights Covenants, as incorporated by reference in each Use &

Occupancy Agreement, apply at all times, both during the rental phase and during

homeownership. Furthermore, pursuant to the Use & Occupancy Agreement, each lot in

the subdivision shall be held, transferred, sold and conveyed subject to these covenants.

3. If the Homebuyer fails to exercise the option to purchase within the designated option

period, the Use & Occupancy Agreement will terminate and NPTHA shall retain all

rental payments received and the Homebuyer shall have no right to receive back any

part of the rent and shall have no further rights or claims hereunder.

B. The option may be exercised at any time during the option period, but it is mandatory by the

end of the option period set forth by the NPTHA. The exercise must be executed by written

notice to the NPTHA, either delivered or mailed to the following address:

Nez Perce Tribal Housing Authority

P.O. Box 188

Lapwai, ID 83540

A notice which is mailed shall be deemed to be timely in the event the notice is mailed within

the option period as evidenced by the U.S. postmark.

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C. The closing date shall occur within ninety (90) days of the exercise of the option. The

purchase shall be subject to the following terms and conditions:

1. The Use & Occupancy Agreement shall not be terminated prior to the exercise of the

option;

2. The Homebuyer shall not have the right to assign the option to purchase;

3. No portion of the rental payments, shall be refunded to the Homebuyer in the event the

Homebuyer fails to exercise said purchase option;

4. In the event the Homebuyer exercises the option to purchase, the Homebuyer shall pay

all settlement costs incidental to acquiring ownership, including but not limited to, costs

and fees for credit report, field survey, title examination, title insurance, inspections,

attorney fees, closing, recording, transfer taxes, finance fees, mortgage loan discount

and appraisals.

5. The Homebuyer will obtain financing from sources other than the NPTHA for the

purchase of the home.

D. Purchase Price:

1. Purchase Price. The purchase price of the premises shall equal any outstanding

mortgage balances plus the NPTHA’s equity in the property and shall be referred to as

the Contract Purchase Price. NPTHA’s equity will be determined by the NPTHA

Executive Director in either of the following manners:

a. The total cash amount invested in the home and the property by the NPTHA;

b. For subsequent homebuyers, the value of the home determined by an appraisal.

2. The original contract purchase price for each style of the NPTHA built homes is as

follows:

a. 3

1350

b. 3/4 1750

c. 4/5 2000

$103,000.00

$128,510.00

$144,100.00

E. Purchase Price Formula:

1. First mortgage. The Homebuyer shall assume the remaining balance of the NPTHA

mortgage attributable to that Homebuyer’s homesite or the Homebuyer may obtain their

own mortgage in an amount sufficient to satisfy the current NPTHA loan. Likewise, the

Homebuyer may pay cash in an amount sufficient to satisfy the NPTHA loan.

2. Subordinate Forgivable Mortgage. Based upon income, certain low income Homebuyers

may be eligible for forgivable Buy Down Assistance pursuant to the NPTHA Mortgage

Financing Assistance Policy. The amount of said assistance shall be determined

according to an income based affordability analysis. If the eligible Homebuyer

successfully exercises their option and remains in the home for the affordability period

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(Minimum Recapture Period), then the Buy Down Assistance will be forgiven. If

however, the homeowner sells the home prior to the expiration of the affordability period

they are required to reimburse NPTHA for the prorated share of the Buy Down

Assistance through the use of a recapture formula as stipulated in the promissory note.

The NPTHA Buy Down Assistance reimbursement shall be secured to the NPTHA

through a second mortgage entered into at the time of the original Homebuyer’s closing.

3. Minimum Period of Repayment, Recapture or Resale Provisions: The period of

repayment or recapture of the MFA funds depends on the amount of funds invested for

down payment assistance or buy down in the home purchase:

Per Unit MFA

Investment

<$5,000

$10,000 - $15,000

Minimum Recapture

Secured by:

Period

5 years

Second Mortgage

and/or Assignment of

trust/lease income,

land as determined

by the Executive

Director with

concurrence of the

Board of

Commissioners

10 years

Second Mortgage

and/or Assignment of

trust/lease income,

land

15 years

Second Mortgage

$15,000 - $25,000

20 years

Second Mortgage

$25,000 - $40,000

30 years

Second Mortgage

$5,000 - $10,000

Financing Terms

Contingent upon

Affordability, income

Contingent upon

Affordability, income

Contingent upon

Affordability, income

Contingent upon

Affordability, income

Contingent upon

Affordability, income

C. Purchase Price for Moderate Income:

1. In all cases involving moderate income families, repayment terms will be in accordance

with the 24 CFR Part 1000.110, NAHASDA Final Rule. Non low-income Indian families

cannot receive the same benefits provided low-income Indian families.

2. Purchase price for Moderate-Income families includes the following:

a. First mortgage. The Homebuyer shall assume the remaining balance of the NPTHA

mortgage attributable to that Homebuyers homesite or the Homebuyer may obtain

their own mortgage in an amount sufficient to satisfy the current NPTHA loan or the.

Likewise the Homebuyer may pay cash in an amount sufficient to satisfy the NPTHA

loan, and

b. Second mortgage. The second mortgage is not deferred and payments begin at the

same time as when the first mortgage is assumed. The amount of the second

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mortgage repayment will be based on affordability, income, and NPTHA costs. Nonlow income families will receive buy down assistance in accordance with the MFA

policy.

(1) FORGIVABLE SUBORDINATE. Pursuant to the NPTHA Mortgage Financing

Assistance Policy, if the buyer remains in the home for the affordability period

(Minimum Recapture Period), then the down payment assistance buy down will be

forgiven and stipulated in a promissory note. If, however, the homeowner sells the

home prior to the expiration of the recapture period, the homeowner is required to

reimburse NPTHA for the prorated share of the Buy Down Assistance through the

use of a recapture formula. The NPTHA Down Payment Assistance reimbursement

shall be secured to the NPTHA through an unforgivable subordinate mortgage

entered into at the time of the original Homeowner’s closing.

(2) Minimum Period of Repayment, Recapture or Resale Provisions: The period for

repayment or recapture of the MFA funds depends on the amount of funds invested

for down payment assistance or buy down assistance in the home purchase:

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Per Unit MFA

Investment

<$5,000

Minimum

Recapture Period

5 years

Secured by:

Financing Terms

Contingent upon

Affordability,

income

$10,000 - $15,000 15 years

Third mortgage and/or

Assignment of trust/lease income,

land as determined by the

Executive Director with

concurrence of the Board of

Commissioners

Third mortgage and/or

Assignment of trust/lease income,

land

Third Mortgage

$5,000 - $10,000

10 years

$15,000 - $25,000 20 years

Third Mortgage

$25,000 - $40,000 30 years

Third Mortgage

Contingent upon

Affordability,

income

Contingent upon

Affordability,

income

Contingent upon

Affordability,

income

Contingent upon

Affordability,

income

D. Purchase Price for Families at 100% of Median Income: In all cases involving over

moderate-income families, repayment terms will be in accordance with the 24 CFR Part

1000.110, NAHASDA Final Rule. Non low-income Indian families cannot receive the same

benefits provided low-income Indian families.

SECTION 32: SUCCESSION DURING RENTAL PHASE

A. Applicability of Beneficiary: A beneficiary is only applicable when the rental Homebuyer

designates a qualifying beneficiary in writing with the NPTHA, is current in meeting all his

obligations, and has lived in the home for at least two (2) years. The only circumstances

upon which a beneficiary is considered is upon the death of the Homebuyer.

B. Death of Participant: Upon the death of the eligible Rental Homebuyer, the Rental

Homebuyer’s interest in the Use & Occupancy Agreement may be inherited, pursuant to the

Beneficiary Agreement, by the beneficiary of the Homebuyer. Only a beneficiary who is

eligible under the laws and customs of the Nez Perce Tribe to enter into a Use &

Occupancy Agreement shall be eligible to assume the Homebuyer’s interest in and

obligations under the Use & Occupancy Agreement.

C. Beneficiary: The NPTHA shall not be responsible for determining or designating who the

beneficiary of the Homebuyer may be. The Homebuyer must designate in writing a

beneficiary who is a qualifying adult who is:

1. Eligible and willing to assume all the obligations of the Use & Occupancy Agreement and

exercise the option to purchase in the allowable time frame.

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2. Is not an existing homeowner or a Homebuyer in a NPTHA Program.

3. Willing to pay all debt associated with the Use & Occupancy Agreement property.

D. No Designated Beneficiary: When the Homebuyer has died and there is no designated

beneficiary and there are no heads of households remaining, the NPTHA shall consider the

Use & Occupancy Agreement as having been terminated by the Homebuyer and will select

another Homebuyer from the waiting list.

E. Remaining Family: Any person claiming to be an heir of the Homebuyer who seeks to

remove personal property from the deceased’s home must present a court order authorizing

the person to enter and remove personal property from the premises.

SECTION 33: LIFE ESTATE

A. Death of Homeowner: In the event of the death of the homeowner, the provisions of the

Nez Perce Life Estate Code may apply.

1. Enrolled members of the Nez Perce Tribe, with a leasehold interest in Trust lands, may

bequeath by a Will a life estate in their leasehold Trust land and any improvements

thereon to their non-enrolled spouse and or their non-enrolled children. The nonenrolled spouse and or the non-enrolled children shall be permitted to use and occupy

the holding during the course of their lifetime subject to the same terms and conditions of

the enrolled deceased member, which may include any outstanding mortgage. The nonenrolled spouse and or non-enrolled children can never inherit the land or any

improvements thereon. Upon the expiration of these life estates the leasehold interest in

the land and any improvements thereon shall be transferred and conveyed to an

enrolled member pursuant to the terms of the deceased enrolled member’s Will.

2. In the event that an enrolled member dies intestate (without a will), his non-enrolled

surviving spouse and or non-enrolled children may elect to take a life estate in the

leasehold lands and any improvements thereon. The non-enrolled spouse and or the

non-enrolled children shall be permitted to use and occupy the holding during the course

of their lifetime subject to the same terms and conditions of the enrolled deceased

member, which may include any outstanding mortgage.

3. The non-enrolled spouse and or non-enrolled children can never inherit the land or any

improvements thereon. Upon the expiration of these life estates the leasehold interest in

the land and any improvements thereon shall be transferred, conveyed and sold to the

Tribe pursuant to 43 CFR Part 4 at the appraised value. The non-enrolled spouse and

or non-enrolled children may decline to take a life estate in the Leasehold and sell to the

Tribe that leasehold interest pursuant to 43 CFR Part 4, Tribal Purchase of Interests

Under Special Statutes.

SECTION 34: RELINQUISHMENT

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In the event that a member of the tribe relinquishes their membership in the Nez Perce

Tribe while being the Lessee or Assignee of a residential Lease from the Tribe, then said member

Lessee or Assignee of a residential Lease from the Tribe shall be responsible for making monthly

Lease payments to the Tribe in the amount of $400.00 per month during the duration of the Lease

period. These payments are in addition to any monthly mortgage payment or other

contractually obligated payments owed by Lessee-Assignee for which the Leasehold is

collateralized. Failure to make said Lease payments on a monthly basis shall constitute a default

of the Lease or Assignment which may result in foreclosure on the Lessee or assignee’s interest in

the leased premises and any and all real improvements located thereon.

SECTION 35: TERMINATION

A. In the event of the default of any material provision of the OP Program Policy and the Use &

Occupancy Agreement by the Homebuyer (and each covenant, provision, term and condition

herein is considered a material provision and a consideration for the execution of a Use &

Occupancy Agreement, and time is of the essence of each and every of the foregoing), the Use

& Occupancy Agreement and the option to purchase, at the option of NPTHA, shall terminate

and be forfeited and NPTHA shall be entitled to possession of the premises. The Homebuyer

shall be given thirty (30) days written notice of any default or breach, and shall have thirty (30)

days from service of said notice within which to cure or correct said breach of Section II, L is not

cured within thirty (30) days, NPTHA may immediately terminate the Use & Occupancy

Agreement and bring an action for the Homebuyer’s unlawful detainer and/or pursue any other

remedy which may be available under the law or in equity.

B. With respect to any Notice provided the Homebuyer is entitled prior to any court hearing or trial

to examine any relevant documents, records, or regulations directly related to the termination or

eviction.

C. Grounds for termination of the OP Program include any violation of this policy, applicable

NPTHA policies. The following list is not intended to be comprehensive but to serve as a listing

of typical serious Use & Occupancy Agreement violations warranting termination that are to be

specifically cited in the Use & Occupancy Agreement.

1. The Homebuyer fails to pay when due any payment required to be paid under this

agreement.

2. The Homebuyer attempts to sell, transfer or convey any ownership interest in the right to

acquire a home in violation of this agreement.

3. The Homebuyer or any member of the Homebuyer’s household has misrepresented or

withheld material information in connection with the initial application of the Homebuyer to

participate in the OP Program or in connection with the initial determination of the adjusted

monthly income of the family or any redetermination of adjusted monthly income.

4. The Homebuyer allows any person to reside in the home who is not eligible to do so under

the policies of the NPTHA.

5. The Homebuyer or any member of the Homebuyer’s household fails to comply with all

applicable building and housing codes.

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6. The Homebuyer uses the home for any purpose other than as the principal residence of the

Homebuyer.

7. The Homebuyer fails to dispose of all ashes, garbage, rubbish and other waste from the

home in a sanitary and safe manner or in violation of the Housekeeping Standards cited in

this policy.

8. The Homebuyer, any member of the Homebuyer’s household, or any guest or other person

who has been permitted to be on the premises destroys, defaces, damages or removes the

home or any part of the home.

9. The Homebuyer, any member of the Homebuyer’s household, or any guest or other person

who has been permitted to be on the premises by the Homebuyer fails to use any electrical,

plumbing, sanitary, heating, ventilating, air-conditioning or other facilities or appurtenances

in a reasonable manner.

10. The Homebuyer, any member of the Homebuyer’s household, or any guest or other person

who has been permitted to be on the premises by the Homebuyer engages in any activity

that threatens the health or safety of any other person while on or near the Homebuyer’s

premises.

11. The Homebuyer maintains or allows any condition which threatens the health or safety of

persons who are members of the Homebuyer’s household, persons residing in the vicinity of

the Homebuyer or any member of the public.

12. The Homebuyer fails to provide needed repairs or necessary maintenance to the home or

fails to keep and use the home in a clean and safe condition.

13. The Homebuyer fails to comply with the policies and the rules and regulations of the NPTHA

as now in effect or as hereafter amended.

14. The Homebuyer fails to comply with or abide by any agreement entered into between the

NPTHA and the Homebuyer to cure a breach or default under the OP Program Use &

Occupancy Agreement and/or the Sundown Heights Policy, or fails to comply with or abide

by any decision on an appeal filed by the Homebuyer in which terms or conditions are

imposed on the Homebuyer for the cure of a breach or default under the Use & Occupancy

Agreement and the Sundown Heights Policy.

SECTION 36: NOTICES

Any notices or demand to be given, served, or made shall be validly and sufficiently given, served,

or made, if from the NPTHA to the Homebuyer, if the same is deposited in the United States mail,

by certified mail, return receipt, postage prepaid, addressed to the Homebuyer at::

; and, if from the Homebuyer to the NPTHA, if the same is deposited in the United States Mail, by

certified mail, return receipt, postage prepaid, addressed to the NPTHA at:

.

The service of such notice shall be deemed complete by the said deposit thereof in the United

States Mail as aforesaid. Either party, may, by notice to the other in writing, designate a different

place to which notices shall be sent.

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SECTION 37: WAIVERS

No waiver by the NPTHA of any term, covenant or, condition of this Sundown Heights Hills

Subdivision Policies shall be construed as a continuing waiver thereof, nor a waiver of any other

term, covenant, or condition of this Policy. Each and every default on the part of the Homebuyer

shall be considered a separate and a new breach of the Policy, irrespective of whether or not other

defaults exist at that time.

The Executive Director will have the authority to waive this policy as it relates to compensating

factors.

SECTION 38: MODIFICATION

Modifications of the Sundown Heights Policy is subject to approval by the Board of

Commissioners. Matters incorporated in the Policy by reference shall be publicly posted in a

conspicuous manner in the NPTHA’s office and a copy shall be furnished to the Homebuyer on

request. If such schedules, rules and regulations are modified, the NPTHA shall give at least 30days written notice to each affected Homebuyer through a mass mailing setting forth the proposed

modification, the reasons therefore, and provide the Homebuyer an opportunity to present written

comments which shall be considered by the NPTHA prior to the effective

date of the proposed modification.

SECTION 39: NUMBER AND GENDER

Whenever used throughout this policy, unless the context shall otherwise provide, the singular

number shall include the plural, the plural the singular, and the use of any gender shall include all

genders.

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