R 125.182 Eligible improvements.

Rule 182. (1) Improvements made with property improvement loan proceeds must satisfy the following requirements: (a) Improvements may be made to comply with applicable state, county, and municipal health, housing, building, fire prevention and housing maintenance codes, or other public standards applicable to housing. (b) Improvements may also be made that protect or improve the basic livability or utility of a residential structure and make the residential structure safe, sanitary, or adequate. However, to be an eligible improvement, it must be a permanent general improvement. (c) An improvement must be made in compliance with all applicable health, fire prevention, building, housing, and housing maintenance codes, and other public standards applicable to housing. However, no application for a property improvement loan for a dwelling unit occupied by the owner may be denied solely because the improvements will not bring the dwelling unit into full compliance with all applicable codes and standards. (d) Property improvement loan proceeds may not be used for the payment, wholly or in part, of an assessment for public improvements. However, proceeds may be used for improvements that brings an individual sewage disposal system, including septic systems, located on the residential real property improved by a residential structure into compliance with local, state, and federal environmental and sanitary standards. (e) The authority may require that all contracts covering all or any portion of an improvement contain an authority-approved warranty on workmanship and materials. (2) All rehabilitation contracts under this part must be between the homeowner and the contractor. The authority shall not negotiate or enter into rehabilitation contracts under this part.