source:
  type: guide
  id: hud-4000-1-v-b-monitoring-of-hud-homes-participants
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part V — b. Monitoring
    of HUD Homes Participants (03/14/2016)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part V — b. Monitoring
    of HUD Homes Participants (03/14/2016).
  coverage_tier: operative
obligations:
- id: hud-4000-1-v-b-monitoring-of-hud-homes-participants-full
  canonical_id: hud-4000-1-v-b-monitoring-of-hud-homes-participants-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part V — b. Monitoring
    of HUD Homes Participants (03/14/2016)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part V — b. Monitoring
      of HUD Homes Participants (03/14/2016)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'b. Monitoring of HUD Homes Participants (03/14/2016) FHA’s review
      and monitoring activity will include a review of the AHPP and verification that
      HUD Homes purchased at a discount of 10 percent or greater are sold to persons
      at or below the applicable median income. FHA will review and monitor the program
      participant’s Individual Property File and Net Development Costs (NDC). The
      NDCs are used to review program compliance and profit margins. FHA will also
      monitor to ensure that savings under the HUD Homes program are passed on to
      Low- to Moderate-Income Borrowers. FHA may request access to properties under
      development or otherwise a part of the nonprofit agency’s AHP. Additional Documentation
      Required for Review The Governmental Entity or HUD-approved Nonprofit must have
      the Individual Property File and the following additional documentation available
      for FHA staff completing a review: • bank statements and monthly reconciliations
      for the last two years; • proof of payment documentation for the last two years;
      • a current financial statement and evidence of funding sources; • rental payment
      history and evidence of funding sources; • general ledger entries for the last
      two years; • contractor licenses and qualifications records; • a Marketing Plan
      and evidence of marketing efforts; • an AHPP; and • a QC Plan and monitoring
      reports.'
  judgment: false
