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Federal Register / Vol. 86, No. 8 / Wednesday, January 13, 2021 / Proposed Rules
viii HUD housing standards. The standards of the grantee must be such that, upon completion, the HTF-assisted project and units will be decent, safe, sanitary, and in good repair and meet the standards in 24 CFR 5.703. The requirements of 24 CFR 5.7055.713 do not apply. At minimum, the specific deficiencies proscribed by HUD and published in the Federal Register must be corrected under the grantees rehabilitation standards. HUD will establish the minimum deficiencies based on the applicable standards for the condition of HUD housing set out by the Secretary and published in the Federal Register pursuant to 24 CFR
5.705.

c
3 Existing housing that is acquired for homeownership e.g., down payment assistance must be decent, safe, sanitary, and in good repair. The grantee must establish standards to determine that the housing is decent, safe, sanitary, and in good repair. At minimum, the standards must provide that the housing meets all applicable State and local standards and code requirements, and the housing does not contain the specific deficiencies proscribed by HUD
and published in the Federal Register.
HUD will establish the minimum deficiencies based on the applicable standards for the condition of HUD
housing set out by the Secretary and published in the Federal Register pursuant to 24 CFR 5.705. The grantee must inspect the housing and document this compliance based upon an inspection that is conducted no earlier than 90 calendar days before the date of commitment of HTF assistance. If the housing does not meet these standards, the housing must be rehabilitated to meet the standards of this paragraph or it cannot be assisted with HTF funds.

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i At a minimum, the grantees ongoing property standards must provide that the property does not contain the specific minimum deficiencies proscribed by HUD and published in the Federal Register. HUD
will establish the minimum deficiencies based on the applicable standards for the condition of HUD housing set out by the Secretary and published in the Federal Register pursuant to 5.705 of this title. The grantees property standards are not required to use any inspection procedures, including scoring, item weight, or level of
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criticality required in 5.7055.713 of this title.

11. Revise 200.850 to read as follows:

common features related to the residential use of the building e.g., the laundry room, community room, mail room.
ii Housing that continues to meet the HOPWA housing quality standards that applied when the eligible persons moved into that housing shall not be required to meet new or different standards under 24 CFR 5.703.
3 The requirements of 24 CFR
5.7055.713 do not apply.

200.850 Physical condition standards and physical inspection requirements.

PART 576EMERGENCY SOLUTIONS
GRANTS PROGRAM

PART 200INTRODUCTION TO FHA
PROGRAMS
10. The authority for 24 CFR part 200
continues to read as follows:

Authority: 12 U.S.C. 17021715z21; 42
U.S.C. 3535d.

The requirements in part 5, subpart G
of this title are applicable to the multifamily properties assisted or insured that are listed in 5.701 of this title.

PART 574HOUSING
OPPORTUNITIES FOR PERSONS WITH
AIDS, SUBPART DUSES OF GRANT
FUNDS
13. The authority for 24 CFR part 574
continues to read as follows:

Authority: 12 U.S.C. 1701x, 1701x1; 42
U.S.C. 3535d and 53015320.

14. In 574.310, revise paragraph b introductory text and paragraph b2, and add paragraph b3 to read as follows:

574.310 General standards for eligible housing activities.

b . The following standards apply for all housing for which HOPWA
funds that are used under 574.300b3, 4, 5, and 8, and when HOPWA funds are used under 574.300b7 to pay an eligible persons security deposit, utility hookup and processing costs, or other move-in costs, except rental application and credit check fees.

2 HUD housing standards. Except for such variations as are proposed by the grantee and approved by HUD, the housing must meet the standards for HUD housing in 24 CFR 5.703, except that:
i As applied to HOPWA, HUD
housing in 24 CFR 5.703 means the units eligible persons occupy or will occupy, systems equipment that directly services those units, items and components within the primary and secondary means of egress from those units doors to the public way, and
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16. In 576.403, revise paragraph c and add paragraphs d through f to read as follows:

12. Remove and reserve 200.853, 200.855, and 200.857.

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Authority: 12 U.S.C. 1701x, 1701x1; 42
U.S.C. 11371 et seq., 42 U.S.C. 3535d.

Subpart EProgram Requirements
200.853, 200.855, and 200.857
Removed and Reserved

15. The authority for 24 CFR part 576
continues to read as follows:

576.403

Shelter and housing standards.

c Minimum standards for permanent housing. When ESG funds are used for permanent housing under 24 CFR
576.105 or 576.106, the minimum standards in 24 CFR 5.703 apply to the program participants unit, systems equipment that directly services those units, items and components within the primary and secondary means of egress from those units doors to the public way, and common features related to the program participants use of the building e.g., the laundry room, community room, mail room. The recipient may also add standards that exceed these minimum standards. The requirements in 24 CFR 5.7055.713 do not apply.
d Housing inspections. For the first 30 days in which a program participant receives homelessness prevention assistance, the recipient or subrecipient may provide services under 576.105b to help the program participant remain in their unit without inspecting the unit or determining it meets the requirement in this section. Before otherwise using ESG funds under 24 CFR 576.105 or 576.106 to help a program participant remain in or move into specific housing, however, the recipient or subrecipient must inspect that housing to confirm that it meets the requirements in this section. In addition, recipient or subrecipient must inspect the housing at least once every 12 months during the period of assistance to confirm the housing continues to meet the minimum standards in paragraph c of this section.

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