[Federal Register Volume 68, Number 42 (Tuesday, March 4, 2003)]
[Rules and Regulations]
[Pages 10160-10161]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-4941]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 92

[Docket No. FR-4111-C-04]
RIN 2501-AC30


HOME Investment Partnerships Program; Correction

AGENCY: Office of the Secretary, HUD.

ACTION: Final rule; correction.

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SUMMARY: On October 1, 2002, HUD published a final rule making several 
streamlining and clarifying amendments to the regulations for the HOME 
Investment Partnerships Program. The final rule inadvertently removed 
the 36-month timeframe for purchasing a home under lease-purchase 
programs assisted with HOME funds. This document makes the necessary 
correction to the final rule.

DATES: Effective Date: October 1, 2002.

FOR FURTHER INFORMATION CONTACT: Virginia Sardone, Director, Program 
Policy Division, Office of Affordable Housing Programs, Room 7164, 451 
Seventh Street, SW., Washington, DC 20410. Telephone: (202) 708-2470. 
(This is not a toll-free number.) A telecommunications device for 
hearing- and speech-impaired persons (TTY) is available at 1-800-877-
8339 (Federal Information Relay Service).

SUPPLEMENTARY INFORMATION: On October 1, 2002 (67 FR 61752), HUD 
published a final rule making several streamlining and clarifying 
amendments to the regulations for the HOME Investment Partnerships 
Program. Among other changes, the final rule amended Sec.  
92.254(a)(7), which establishes the income eligibility requirements for 
lease-purchase agreements, to reflect a statutory change made by 
section 599B of the Quality Housing and Work Responsibility Act of 1998 
(Public Law 105-276, approved October 21, 1998) (QHWRA). Section 599B 
of QHWRA eliminated the requirement that HOME-assisted homebuyers 
qualify as income eligible at the time of occupancy or when the HOME 
funds are invested, whichever is later. In the case of a lease-purchase 
agreement, section 599B requires the homebuyer to qualify as low-income 
at the time the agreement is signed.
    In amending Sec.  92.254(a)(7) to implement section 599B of QHWRA, 
the October 1, 2002 final rule inadvertently removed the 36-month 
timeframe for purchasing a home under lease-purchase programs assisted 
with HOME funds. This provision requires that the home must be 
purchased by the homebuyer within 36 months of signing the lease-
purchase agreement. This document makes the necessary correction to the 
October 1, 2002 final rule.

[[Page 10161]]


    Accordingly, rule FR Doc. 02-24820 published on October 1, 2002 (67 
FR 61752) is corrected as follows:
    1. On page 61756, in the third column, Sec.  92.254(a)(7) is 
corrected to read as follows:


Sec.  92.254  Qualification as affordable housing: Homeownership.

    (a) * * *
    (7) Lease-purchase. HOME funds may be used to assist homebuyers 
through lease-purchase programs for existing housing and for housing to 
be constructed. The housing must be purchased by a homebuyer within 36 
months of signing the lease'purchase agreement. The homebuyer must 
qualify as a low-income family at the time the lease-purchase agreement 
is signed. If HOME funds are used to acquire housing that will be 
resold to a homebuyer through a lease-purchase program, the HOME 
affordability requirements for rental housing in Sec.  92.252 shall 
apply if the housing is not transferred to a homebuyer within forty-two 
months after project completion.
* * * * *

    Dated: February 20, 2003.
Roy A. Bernardi,
Assistant Secretary for Community Planning and Development.
[FR Doc. 03-4941 Filed 3-3-03; 8:45 am]
BILLING CODE 4210-29-P