TITLE 100

NORTHERN MARIANAS HOUSING CORPORATION

 

Chapter 100-10          Definition of a First Time Home Owner Rules

Chapter 100-20          Direct Family Home Loan Policy and Procedures

Chapter 100-30          Loan Processing Procedures

Chapter 100-40          NMHC/MPLT Home Loan Regulations

Chapter 100-50          NMHC Personnel Manual

Chapter 100-70          Section 8 Program Grievance Procedures

Chapter 100-80          Section 8 Rental Assistance Programs Administrative Plan

Chapter 100-90          Section 8 Administrative Plan for Rental Assistance Programs

Chapter 100-100        HOME Program Regulations

            Subchapter 100-100.1            Policies and Procedures for Homebuyer Activities

            Subchapter 100-100.2            Policies and Procedures for Homeowner Rehabilitation

 

CHAPTER 100-10

DEFINITION OF A FIRST TIME HOME OWNER RULES

 

Part 001           General Provisions

 

Part 100           Definition

§ 100-10-101    Definition of a First Time Home Owner

 

Chapter Authority: 2 CMC § 4433(t); Executive Order 94-3 § 407.

 

Chapter History: Amdts Adopted 19 Com. Reg. 15781 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15649 (Sept. 15, 1997); Adopted 19 Com. Reg. 15313 (Apr. 15, 1997); Proposed 19 Com. Reg. 15191 (Mar. 15, 1997).

 

Commission Comment: 2 CMC § 4411 creates the Mariana Islands Housing Authority (MIHA) as a public corporation within the Commonwealth government, charged with meeting the need for decent, safe, and sanitary housing for persons of low and moderate income in the Commonwealth. See 2 CMC §§ 4411-4457. 2 CMC § 4433 sets forth the powers of MIHA, including the general power to do any and all things necessary or convenient to effectuate the purposes of the act and to carry out any of the powers granted by the act. See 2 CMC § 4433(t).

 

Executive Order 94-3 (effective August 23, 1994) reorganized the Commonwealth government executive branch, changed agency names and official titles and effected numerous other revisions. According to Executive Order 94-3 § 407:

 

Section 407. Marianas Housing Authority.

(a)          The Marianas Housing Authority is abolished and its functions transferred to a Division of Housing within the Commonwealth Development Authority, which shall have at its head a Director of Housing.

(b)          Any bond or other indebtedness of the Mariana Island Housing Authority shall be assumed by the Commonwealth government, but only upon such terms and security as shall have been agreed to previously by the Authority. The full faith and credit of the Commonwealth shall to secure such bond or other indebtedness, except as may have been pledged prior to such assumption or as otherwise provided by

law.

 

The full text of Executive Order 94-3 is set forth in the commission comment to 1 CMC § 2001.

 

The Northern Marianas Housing Corporation is a subsidiary corporation of the Commonwealth Development Authority and the successor to MIHA under Executive Order 94-3. See 2 CMC § 4482(d).

 

Part 001 -       General Provisions

 

[Reserved.]

 

Part 100 -       Definition

 

§ 100-10-101  Definition of a First Time Home Owner

 

Definition of a first time home owner:

 

(a)       Any individual (“borrower”) residing in the Commonwealth, who does not currently, or in the last ten years, has not held an ownership interest in a house.

 

(b)       An interest created by the borrower acting as a mortgagee, lien holder, or creditor, will not count as an ownership interest in the house that he holds said interest, for the above definition, so long as the borrower does not occupy the house on a regular basis.

 

(c)       Moreover, an ownership interest obtained in a house through inheritance, shall not be considered as an ownership interest for the above definition, so long as the individual did not obtain a one hundred percent interest in the house, by way of inheritance, nor hold a one hundred percent interest at any time prior to the time of loan application.

 

(d)       A first time home owner shall also include an individual who currently owns a home and is applying for a home renovation/improvement loan, to improve the house they are currently residing in, so long as they do not currently, or in the last ten years, have not held an ownership interest in a house, other than an interest created by the individual acting as a mortgagee, lien holder, or creditor, and will occupy the improved/renovated property as his or her principal house.

 

(e)       The term “house” shall include condominiums, town houses, or any other permanent structure in which the individual or any person resides, or has used as a residence in the last ten years.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 19 Com. Reg. 15781 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15649 (Sept. 15, 1997); Adopted 19 Com. Reg. 15313 (Apr. 15, 1997); Proposed 19 Com. Reg. 15191 (Mar. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (e).

 

The November 1997 amendments deleted former subsection (a), added subsections (b) through (d) and re-designated and amended subsection (e).

 


CHAPTER 100-20

DIRECT FAMILY HOME LOAN POLICY AND PROCEDURES

 


Part 001          General Provisions

§ 100-20-001  Purpose and Authority

§ 100-20-005  Scope

 

Part 100          Policy and Procedures

§ 100-20-101  Use of Funds

§ 100-20-105  Eligibility and Qualification

§ 100-20-110  Terms and Conditions of Loans

§ 100-20-115  Applicant Qualifications and Conditions

§ 100-20-120  Priority Criteria

§ 100-20-125  Advertising

§ 100-20-130  Processing of Loans

§ 100-20-135  Loan Settlement

§ 100-20-140  Fund Management

§ 100-20-145  Administration of Program

 

Part 200          Miscellaneous Provisions

§ 100-20-201  Authority Reserved


 

Chapter Authority: 2 CMC § 4433; Executive Order 94-3 § 407.

 

Chapter History: Amdts Proposed 19 Com. Reg. 14824 (Jan. 15, 1997);* Amdts Proposed 16 Com. Reg. 11796 (Mar. 15, 1994);* Adopted 3 Com. Reg. 1244 (June 30, 1981); Amdts Proposed 2 Com. Reg. 441 (Jan. 16, 1980); Proposed 1 Com. Reg. 62 (Dec. 16, 1978).

 

*Notices of adoption for the 1994 and 1997 proposed amendments were never published.

 

Commission Comment: 2 CMC § 4411 creates the Mariana Islands Housing Authority (MIHA) as a public corporation within the Commonwealth government, charged with meeting the need for decent, safe and sanitary housing for persons of low and moderate income in the Commonwealth. See 2 CMC §§ 4411-4457. 2 CMC § 4433 sets forth the powers of MIHA, including the general power to do any and all things necessary or convenient to effectuate the purposes of the act and to carry out any of the powers granted by the act. See 2 CMC § 4433(t).

 

Executive Order 94-3 (effective August 23, 1994) reorganized the Commonwealth government executive branch, changed agency names and official titles and effected numerous other revisions. According to Executive Order 94-3 § 407:

 

Section 407. Marianas Housing Authority.

(a)          The Marianas Housing Authority is abolished and its functions transferred to a Division of Housing within the Commonwealth Development Authority, which shall have at its head a Director of Housing.

(b)          Any bond or other indebtedness of the Mariana Island Housing Authority shall be assumed by the Commonwealth government, but only upon such terms and security as shall have been agreed to previously by the Authority. The full faith and credit of the Commonwealth shall to secure such bond or other indebtedness, except as may have been pledged prior to such assumption or as otherwise provided by law.

 

The full text of Executive Order 94-3 is set forth in the commission comment to 1 CMC § 2001.

 

The Northern Marianas Housing Corporation is a subsidiary corporation of the Commonwealth Development Authority and the successor to MIHA under Executive Order 94-3. See 2 CMC § 4482(d).

 

On December 16, 1978, MIHA published public notice of proposed Regulation No. 1-78, entitled “Regulation of the Business Use and Leasing of MIHA Property.” See 1 Com. Reg. 57 (Dec. 16, 1978). A notice of adoption was never published.

 

MIHA promulgated the 1981 Direct Family Home Loans Policy and Procedures pursuant to 2 CMC § 4433. In March 1994, MIHA proposed revised Direct Family Home Loans Policy and Procedures that republished the policy in its entirety with numerous amendments. See 16 Com. Reg. 11796 (Mar. 15, 1994). A notice of adoption was never published. In January 1997, NMHC, the successor corporation to MIHA, again republished the policy and procedures in their entirety as a proposed revision. See 19 Com. Reg. 14824 (Jan. 15, 1997). A notice of adoption was never published.

 

Part 001 -       General Provisions

 

§ 100-20-001  Purpose and Authority

 

The purpose of the direct family home loan financing program is to encourage and create better living standards, a healthier environment for family life, attractive community, and to provide for modest, safe and sanitary dwellings. It will enhance the economic activity of the Mariana Islands through building constructions, which will increase demands for jobs, building materials, home furnishings, and related products. It is the policy of the Mariana Islands Housing Authority (MIHA) to assist qualified applicants to acquire and occupy a home or to improve their existing homes. Pursuant to Public Law 5-67, as amended, the MIHA will undertake to provide the financial or management operation or otherwise provide housing for persons with low and moderate income.

 

History: Amdts Proposed 19 Com. Reg. 14824 (Jan. 15, 1997); Amdts Proposed 16 Com. Reg. 11796 (Mar. 15, 1994); Adopted 3 Com. Reg. 1244 (June 30, 1981); Proposed 1 Com. Reg. 62 (Dec. 16, 1978).

 

Commission Comment: Both the January 1997 and the March 1994 proposed amendments to the Direct Family Home Loans Policy and Procedures republished the policy and procedures in their entirety with numerous amendments. Notices of adoption were never published and, therefore, the Commission has not incorporated the revisions.

 

With respect to the reference to the Mariana Islands Housing Authority, see Executive Order 94-3 (effective August 23, 1994) reorganizing the Commonwealth government executive branch, changing agency names and official titles and effecting numerous other revisions. See also the general comment to this chapter.

 

§ 100-20-005  Scope

 

The amended policy and procedures codified in this chapter shall apply to all direct loans to families and shall supersede all policies issued prior hereto, which are inconsistent with this policy.

 

Modified, 1 CMC § 3806(d).

 

History: Amdts Proposed 19 Com. Reg. 14824 (Jan. 15, 1997); Amdts Proposed 16 Com. Reg. 11796 (Mar. 15, 1994); Adopted 3 Com. Reg. 1244 (June 30, 1981); Proposed 1 Com. Reg. 62 (Dec. 16, 1978).

 

Commission Comment: See the comment to § 100-20-001.

 

Part 100 -       Policy and Procedures

 

§ 100-20-101  Use of Funds

 

All available funds either as borrowed funds, grant funds, or covenant funds, may be used for the purchase or construction of a detached, single family residential dwelling or for home improvement or rehabilitation. The use of such funds shall be subject to the following:

 

(a)       The house to be constructed, improved, or purchased shall be or become owned by the applicant in fee simple. The word “applicant” means a family or a single person.

 

(b)       The home to be constructed or improved must be occupied and used by the applicant as his principal place of residence.

 

(c)       The home to be purchased must be occupied and used by the applicant as his principal place of residence immediately after the date the loan is closed, which shall be the same date as the day of purchase.

 

History: Amdts Proposed 19 Com. Reg. 14824 (Jan. 15, 1997); Amdts Proposed 16 Com. Reg. 11796 (Mar. 15, 1994); Adopted 3 Com. Reg. 1244 (June 30, 1981); Proposed 1 Com. Reg. 62 (Dec. 16, 1978).

 

Commission Comment: See the comment to § 100-20-001. The Commission inserted a comma after the word “improved” in subsection (a) pursuant to 1 CMC § 3806(g).

 

§ 100-20-105  Eligibility and Qualification

 

Any applicant may be considered eligible for a loan under this program who is determined by MIHA to be capable of repaying the loan under the terms and conditions as established by the policy in this chapter. However, no loan may be made to any applicant who is also eligible for a loan under the MIHA guaranteed loan program. No loan may be made to any applicant who is deemed by MIHA to be capable of obtaining a similar loan from a private lending institution.

 

Modified, 1 CMC § 3806(d), (f).

 

History: Amdts Proposed 19 Com. Reg. 14824 (Jan. 15, 1997); Amdts Proposed 16 Com. Reg. 11796 (Mar. 15, 1994); Adopted 3 Com. Reg. 1244 (June 30, 1981); Proposed 1 Com. Reg. 62 (Dec. 16, 1978).

 

Commission Comment: See the comment to § 100-20-001.

 

With respect to the references to the Mariana Islands Housing Authority, see Executive Order 94-3 (effective August 23, 1994) reorganizing the Commonwealth government executive branch, changing agency names and official titles and effecting numerous other revisions. See also the general comment to this chapter.

 

§ 100-20-110  Terms and Conditions of Loans

 

The following terms and conditions shall apply to all loans made directly under the program in this chapter:

 

(a)       The maximum loan shall not exceed thirty-five thousand dollars for construction or the purchase of a house.

 

(b)       The amount of the loan shall not exceed ninety percent of the appraised value of the property by MIHA or the purchase price, whichever is lower. In construction loans, the purchase price of the property means the value of the land plus the estimated cost of construction.

 

(c)       The repayment period of any loan shall not exceed thirty-three years.

 

(d)       No home improvement or rehabilitation loan may be less than one thousand dollars or more than fifteen thousand dollars.

 

(e)       No loan may be issued to any applicant where after careful analysis of the applicant’s financial status, it is determined that the applicant will encounter difficulties in repayment of the loan or would cause other financial hardships to the applicant. Appropriate guidelines and criteria should be established, upon which the soundness of any loan to be made shall be based.

 

(f)        No loan shall be made to any applicant whose annual income exceeds twelve thousand dollars. “Annual income” means gross income from wages, salaries, commissions, pensions, social security, unemployment compensation, alimony, welfare, child support payments and other payments made on behalf of minors, and all net farm or non-farm business income. Wages and salaries of applicant family members who are eighteen years of age or younger shall be excluded in determining annual income.

 

(g)       All constructions and improvements of homes shall meet the minimum property standards and building requirements of MIHA including applicable regulations and zoning laws as may be established from time to time.

 

(h)       Homes to be constructed or purchased shall be modest but adequate in size in relation to the size of the applicant family, and shall be reasonable in cost in relation to the needs and financial capability of the particular applicant as determined by MIHA.

 

(i)        All loans shall be secured by a first mortgage on the property to be approved, purchased or constructed. Additionally, the loan may be secured by other properties or by a guarantor if deemed necessary by MIHA.

 

(j)        Any real property to be used as collateral shall be owned in fee simple by the applicant and shall be free from defects or encumbrances.

 

(k)       The applicant shall pay for all necessary attorney’s fees, finance charges, and other expenses and fees related to the closing of a loan.

 

Modified, 1 CMC § 3806(d), (e), (f).

 

History: Amdts Proposed 19 Com. Reg. 14824 (Jan. 15, 1997); Amdts Proposed 16 Com. Reg. 11796 (Mar. 15, 1994); Adopted 3 Com. Reg. 1244 (June 30, 1981); Amdts Proposed 2 Com. Reg. 441 (Jan. 16, 1980); Proposed 1 Com. Reg. 62 (Dec. 16, 1978).

 

Commission Comment: See the comment to § 100-20-001.

 

With respect to the references to the Mariana Islands Housing Authority, see Executive Order 94-3 (effective August 23, 1994) reorganizing the Commonwealth government executive branch, changing agency names and official titles and effecting numerous other revisions. See also the general comment to this chapter.

 

§ 100-20-115  Applicant Qualifications and Conditions

 

To qualify for a loan under the program in this chapter, the applicant must meet the following:

 

(a)       The applicant shall prove sufficient credit to make all necessary payments. Credit requirements for qualifications of applicant are subject to reasonable and necessary change from time to time by MIHA.

 

(b)       The applicant shall supply complete building plans, specifications, cost estimates, and other information to the satisfaction of MIHA.

 

Modified, 1 CMC § 3806(d).

 

History: Amdts Proposed 19 Com. Reg. 14824 (Jan. 15, 1997); Amdts Proposed 16 Com. Reg. 11796 (Mar. 15, 1994); Adopted 3 Com. Reg. 1244 (June 30, 1981); Proposed 1 Com. Reg. 62 (Dec. 16, 1978).

 

Commission Comment: See the comment to § 100-20-001.

 

With respect to the references to the Mariana Islands Housing Authority, see Executive Order 94-3 (effective August 23, 1994) reorganizing the Commonwealth government executive branch, changing agency names and official titles and effecting numerous other revisions. See also the general comment to this chapter.

 

The Commission inserted a comma after the word “estimates” in subsection (b) pursuant to 1 CMC § 3806(g).

 

§ 100-20-120  Priority Criteria

 

Consideration of application shall be on a first-come, first-served basis, and must meet one of the following criteria:

 

(a)       Applicant is without housing (homeless).

 

(b)       Applicant is about to become homeless and has been served with a notice of ejectment as a result of MIHA’s action. This category of applicants includes those whose homes have been partially damaged or totally destroyed by natural disaster.

 

(c)       Applicant is residing in an unsafe, unsanitary, or overcrowded dwelling.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Proposed 19 Com. Reg. 14824 (Jan. 15, 1997); Amdts Proposed 16 Com. Reg. 11796 (Mar. 15, 1994); Adopted 3 Com. Reg. 1244 (June 30, 1981); Proposed 1 Com. Reg. 62 (Dec. 16, 1978).

 

Commission Comment: See the comment to § 100-20-001.

 

With respect to the reference to the Mariana Islands Housing Authority, see Executive Order 94-3 (effective August 23, 1994) reorganizing the Commonwealth government executive branch, changing agency names and official titles and effecting numerous other revisions. See also the general comment to this chapter.

 

The Commission corrected the phrase “This category… include” in subsection (b) to “This category… includes” pursuant to 1 CMC § 3806(g). The Commission inserted a comma after the word “unsanitary” in subsection (c) pursuant to 1 CMC § 3806(g).

 

§ 100-20-125  Advertising

 

Whenever additional funds are made available under this program, it shall be made to the public through the media such as the radio and newspaper and shall state the following:

 

(a)       Amount available

 

(b)       Origin of the fund

 

(c)       Intent as to the use of the fund.

 

Modified, 1 CMC § 3806(g).

 

History: Amdts Proposed 19 Com. Reg. 14824 (Jan. 15, 1997); Amdts Proposed 16 Com. Reg. 11796 (Mar. 15, 1994); Adopted 3 Com. Reg. 1244 (June 30, 1981); Proposed 1 Com. Reg. 62 (Dec. 16, 1978).

 

Commission Comment: In subsection (c), the Commission inserted the final period.

 

See also the comment to § 100-20-001.

 

§ 100-20-130  Processing of Loans

 

Loans shall be processed on a first-come, first-served basis and shall be subject to the following:

 

(a)       Any information pertaining to credit, income, employment and related matters necessary for the determination of the loan application shall be filed together with the application. If MIHA is to obtain such information itself, then authorization shall be obtained from the applicant prior to collection of information.

 

(b)       Any information gathered shall be considered confidential and shall not be released to any person except upon written approval of the applicant.

 

Modified, 1 CMC § 3806(d).

 

History: Amdts Proposed 19 Com. Reg. 14824 (Jan. 15, 1997); Amdts Proposed 16 Com. Reg. 11796 (Mar. 15, 1994); Adopted 3 Com. Reg. 1244 (June 30, 1981); Proposed 1 Com. Reg. 62 (Dec. 16, 1978).

 

Commission Comment: See the comment to § 100-20-001.

 

With respect to the reference to the Mariana Islands Housing Authority, see Executive Order 94-3 (effective August 23, 1994) reorganizing the Commonwealth government executive branch, changing agency names and official titles and effecting numerous other revisions. See also the general comment to this chapter.

 

§ 100-20-135  Loan Settlement

 

The closing of a loan made hereunder shall be subject to the following:

 

(a)       For construction loans, the first monthly installment shall be due on the first day of the month following the completion and occupancy of the house or six months after the closing of the loan, whichever occurs first. Monthly installments thereafter shall be due on the first day of each and every month. Installments are due and payable within, but not to exceed thirty days. No interest may be charged the borrower during the construction period.

 

(b)       For improvement loans, the first monthly installment shall be due on the first day of the month following the month when the improvement of the dwelling is to have been completed or on the first day of the third month following the month the loan is closed, whichever occurs first. All monthly installments thereafter shall be due on the first day of each and every month. Installments are due and payable within, but not to exceed, thirty days. No interest may be charged to the borrower during the improvement period.

 

(c)       For purchase loans, the first monthly installment shall be due on the first day of the second month following the month of purchase. Monthly installments thereafter shall be due on the first day of each and every month. Installments are payable within, but not to exceed, thirty days. Interest may not be charged to the borrower for the remaining days of the month during which the loan was closed.

 

Modified, 1 CMC § 3806(e).

 

History: Amdts Proposed 19 Com. Reg. 14824 (Jan. 15, 1997); Amdts Proposed 16 Com. Reg. 11796 (Mar. 15, 1994); Adopted 3 Com. Reg. 1244 (June 30, 1981); Proposed 1 Com. Reg. 62 (Dec. 16, 1978).

 

Commission Comment: See the comment to § 100-20-001.

 

§ 100-20-140  Fund Management

 

The management of funds made available under the program in this chapter shall be governed as follows:

 

(a)       All funds obtained hereunder shall be deposited on a separate account and from all other funds of MIHA and shall be effectively managed so that they may not be diminished and shall continue to revolve.

 

(b)       The account to which funds are deposited shall be known as the “Direct Family Home Loans Revolving Fund.”

 

(c)       Loans shall be amortized and interest on loans shall be charged on the declining balance.

 

(d)       The interest chargeable under the program in this chapter is six percent per annum on the declining balance of the loan. Interest chargeable on other funds made available under this program shall be based on rates as may be established by law.

 

(e)       Interest chargeable on any borrowed funds under this program shall not exceed 1½% per annum above the interest rate assessed MIHA by a lending institution.

 

(f)        Revenues or interests earned may be deposited in MIHA’s general fund account may be expended for any approved purpose.

 

(g)       Late installment charge shall be fixed at 1% of the monthly installment on every late installment per month until fully paid.

 

Modified, 1 CMC § 3806(d), (e), (g).

 

History: Amdts Proposed 19 Com. Reg. 14824 (Jan. 15, 1997); Amdts Proposed 16 Com. Reg. 11796 (Mar. 15, 1994); Adopted 3 Com. Reg. 1244 (June 30, 1981); Proposed 1 Com. Reg. 62 (Dec. 16, 1978).

 

Commission Comment: In subsection (a), the Commission corrected the spelling of “diminished.” In subsection (b), the Commission moved the final period inside of the closing quotation mark.

 

With respect to the references to the Mariana Islands Housing Authority, see Executive Order 94-3 (effective August 23, 1994) reorganizing the Commonwealth government executive branch, changing agency names and official titles and effecting numerous other revisions. See also the general comment to this chapter.

 

See also the comment to § 100-20-001.

 

§ 100-20-145  Administration of Program

 

The administration of the program in this chapter shall be governed by the provisions of this policy. As the administrator/manager of the Mariana Islands Housing Authority:

 

(a)       The Executive Director is delegated the authority and responsibilities to administer this program. In his capacity as the Executive Director, he shall have the authority to approve or disapprove loans, promulgate rules and regulations consistent with the provisions of this policy, and shall have other powers necessary and appropriate to carry out the intent and purposes of the program in this chapter.

 

(b)       The Executive Director shall make periodic reports to the Board of Directors at least once every three months in regards to his administration and management of the program in this chapter.

 

Modified, 1 CMC § 3806(d).

 

History: Amdts Proposed 19 Com. Reg. 14824 (Jan. 15, 1997); Amdts Proposed 16 Com. Reg. 11796 (Mar. 15, 1994); Adopted 3 Com. Reg. 1244 (June 30, 1981); Proposed 1 Com. Reg. 62 (Dec. 16, 1978).

 

Commission Comment: See the comment to § 100-20-001.

 

With respect to the reference to the Mariana Islands Housing Authority, see Executive Order 94-3 (effective August 23, 1994) reorganizing the Commonwealth government executive branch, changing agency names and official titles and effecting numerous other revisions. See also the general comment to this chapter.

 

Part 200 -       Miscellaneous Provisions

 

§ 100-20-201  Authority Reserved

 

(a)       The Board of Directors reserves the authority and power to revise, amend, or repeal any provision of the policy in this chapter.

 

(b)       In addition, the Board of Directors reserves the authority to appropriate revenues from the interests earned under this program.

 

Modified, 1 CMC § 3806(d).

 

History: Amdts Proposed 19 Com. Reg. 14824 (Jan. 15, 1997); Amdts Proposed 16 Com. Reg. 11796 (Mar. 15, 1994); Adopted 3 Com. Reg. 1244 (June 30, 1981); Proposed 1 Com. Reg. 62 (Dec. 16, 1978).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b). The Commission inserted a comma after the word “amend” in subsection (a) pursuant to 1 CMC § 3806(g).

 

See also the comment to § 100-20-001.

 


CHAPTER 100-30

LOAN PROCESSING PROCEDURES

 


Part 001          General Provisions

§ 100-30-001  Introduction

 

Part 100          Initial Contact

§ 100-30-101  Inquiry

§ 100-30-105  Eligibility Determination

 

Part 200          Application Intake

§ 100-30-201  Logging

§ 100-30-205  Content Review

§ 100-30-210  File Creation

§ 100-30-215  Application Assignment

§ 100-30-220  Good Faith Estimate

§ 100-30-225  Payment of Credit Report Fee

§ 100-30-230  Request for Credit Report

 

Part 300          Credit Evaluation; Interview; Loan Report

§ 100-30-301  Procedure

§ 100-30-305  Credit Report Review and Evaluation

§ 100-30-310  Certification of Fund Availability

§ 100-30-315  Verification of Deposit

§ 100-30-320  Examination of Land Document

§ 100-30-325  1040 Review and Verification

§ 100-30-330  Review of Construction Contract

§ 100-30-340  Preparation of Applicable Forms

§ 100-30-345  Loan Report

 

Part 400          General Approval Criteria

§ 100-30-401  Purpose

§ 100-30-405  Repayment

§ 100-30-410  Maturity

§ 100-30-415  Credit Information

 

Part 500          Loan Administration

§ 100-30-501  Approval Process; NMHC Criteria for Approving Loans

§ 100-30-505  Credit File

 

Part 600          Pre-approved and Approved Housing Loan Applications

§ 100-30-601  Pre-approved Housing Loan Applications

§ 100-30-605  Approved Housing Loan Applications

 

Part 700          Loan Closing

§ 100-30-701  Procedure

§ 100-30-705  Guam Savings and Loan Association

§ 100-30-710  U.S. Department of Veterans Affairs

§ 100-30-715  RECDS

 

Part 800          Disbursement of Loan Funds

§ 100-30-801  Introduction

§ 100-30-805  Request for Disbursement

§ 100-30-810  Supporting Documents

§ 100-30-815  Change Orders

§ 100-30-820  Final Billing

 

Part 900          Other Requirements

§ 100-30-901  Project Completion

§ 100-30-905  Note Sale

§ 100-30-910  Loan Disapproval

§ 100-30-915  Problem Loan Identification and Administration

§ 100-30-920  Revision of Loan

§ 100-30-925  Collection and Foreclosure

§ 100-30-930  Charge-off

§ 100-30-935  Satisfaction of Loan

§ 100-30-940  File Disposition

§ 100-30-945  Reports

§ 100-30-950  Renting or Leasing out an NMHC (MIHA) Financed Dwelling Unit

§ 100-30-955  Loan Refinancing

§ 100-30-960  Appeals

§ 100-30-965  Applicability

§ 100-30-970  Applicability of Other Laws, Regulations and Rules

§ 100-30-975  Applicability of Rules and Procedures of Private Lenders

§ 100-30-980  Accommodation Mortgages Issues to Holders of Homestead Permits

§ 100-30-985  Forms

§ 100-30-990  Limitation on Applicant/ Borrower Selection of Contractors; Mandatory Criteria for Contractors to Participate/Construct/Rehabilitate Homes Financed by NMHC

§ 100-30-995  Liquidated Damage Assessments for NMHC Financed Construction Projects


 

Chapter Authority: 2 CMC § 4433; Executive Order 94-3 § 407.

 

Chapter History: Amdts Adopted 22 Com. Reg. 17589 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17150 (Apr. 20, 2000); Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Amdts Adopted 19 Com. Reg. 15782 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15656 (Sept. 15, 1997); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Commission Comment: 2 CMC § 4411 creates the Mariana Islands Housing Authority (MIHA) as a public corporation within the Commonwealth government, charged with meeting the need for decent, safe and sanitary housing for persons of low and moderate income in the Commonwealth. See 2 CMC §§ 4411-4457. 2 CMC § 4433 sets forth the powers of MIHA, including the general power to do any and all things necessary or convenient to effectuate the purposes of the act and to carry out any of the powers granted by the act. See 2 CMC § 4433(t).

 

Executive Order 94-3 (effective August 23, 1994) reorganized the Commonwealth government executive branch, changed agency names and official titles and effected numerous other revisions. According to Executive Order 94-3 § 407:

 

Section 407. Marianas Housing Authority.

(a) The Marianas Housing Authority is abolished and its functions transferred to a Division of Housing within the Commonwealth Development Authority, which shall have at its head a Director of Housing.

(b) Any bond or other indebtedness of the Mariana Island Housing Authority shall be assumed by the Commonwealth government, but only upon such terms and security as shall have been agreed to previously by the Authority. The full faith and credit of the Commonwealth shall to secure such bond or other indebtedness, except as may have been pledged prior to such assumption or as otherwise provided by law.

 

The full text of Executive Order 94-3 is set forth in the commission comment to 1 CMC § 2001.

 

The Northern Marianas Housing Corporation is a subsidiary corporation of the Commonwealth Development Authority and the successor to MIHA under Executive Order 94-3. See 2 CMC § 4482(d).

 

Exhibits A through HH referenced in this chapter were not published with the regulations.

 

Part 001 -       General Provisions

 

§ 100-30-001  Introduction

 

The Mortgage Credit Division (MCD) of the Northern Marianas Housing Corporation (NMHC) was established as a division of the NMHC for the following purpose:

 

(a)       To encourage and create better living standards and a healthier environment for family life for residents of the Commonwealth of the Northern Mariana Islands (CNMI).

 

(b)       To promote an attractive community by providing modest, safe and sanitary owner-occupied, single-family housing units and assist CNMI residents in obtaining housing loans for residential dwellings to be occupied as primary residences.

 

(c)       To achieve NMHC’s mission to serve as primary lender for eligible and qualified mortgagor(s) and administer the financial or management operation, and/or other needs so as to provide permanent homes for persons with low to moderate income, pursuant to provisions of Public Law 5-67, as amended and codified at 2 CMC division 4.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Commission Comment: The 1998 amendments readopted and republished the Loan Processing Procedures in their entirety. The Commission therefore, cites the 1998 Loan Processing Procedures in the history sections throughout this chapter.

 

Part 100 -       Initial Contact

 

§ 100-30-101  Inquiry

 

Interested individual(s) inquires about housing loan program(s). The prospective applicant(s) shall be referred to a loan specialist who shall provide the following information:

 

(a)       Housing Loan Programs.

(1)       Direct Family Home Loan (DFHL) program.

(2)       Rural, economic and community development services.

(3)       Loan purchase by Guam Savings and Loan Association (GS&LA).

(4)       Veterans Administration (VA) Native American Direct Loan Program (NADLP).

 

(b)       Authorized Financing Purposes.

(1)       Purchase.

(2)       Construction.

(3)       Home improvement or rehabilitation.

 

(c)       Desirable Loans - Priority.

(1)       First priority will be given to first time homeowners. Other consideration might be given to improve, expand or renovate an existing dwelling. Applicant(s) must occupy the house as their primary residence.

(2)       Applications will be processed in the order of the following priority criteria of applicant(s).

(i)        First priority: Family with minor dependent(s).

(ii)       Second priority: Family without minor dependent(s).

(iii)      Third priority: Individual applicants.

 

(d)       Undesirable Loans.

Loan proceeds may not be utilized to pay off an existing indebtedness unrelated to mortgage financing. Flexibility may be given to refinance an existing mortgage loan so as to reduce an applicant’s payment rate.

 

(e)       Preliminary Requirements.

(1)       Land document.

(2)       Property map.

(3)       Verification of employment (exhibit A).

(4)       1040s for the 2 previous years.

(5)       Six most current pay statements.

(6)       Loan payment information for any outstanding loan.

(7)       Savings information, if any.

(8)       Most current retirement plan statement.

(9)       Judgment(s), if any (divorce and/or probate decree(s)).

(10)     DD214, if VA NADLP application.

(11)     Original certificate of eligibility, if VA NADLP application.

(12)     Specific use of fund statement.

(13)     Statement of compliance from Division of Revenue & Tax.

(14)     Statement that loan funds are for primary residence (exhibit B).

(15)     For construction loans, a copy of the construction contract on AIA approved format, supplemented by the NMHC construction contract supplement (exhibit JJ), or for rehabilitation loans under the HOME Program, a copy of the construction contract on an NMHC approved form.

(16)     For construction loans, a statement that the construction contract shall not become operative until the requested NMHC loan is approved and funds are ready for disbursement (exhibit C).

(17)     For construction loans to be made for the improvement of homestead lots under the provisions of the Village Homesteading Act of 1979, PL 1-42, 2 CMC §§ 4431-4438; a statement that the construction contract shall not become operative until title to land has been transferred from DLNR-PL, or its successor, to NMHC, and NMHC has then transferred the same to the borrower and simultaneously taken a mortgage on the land (exhibit D).

(18)     For construction loans, a statement the contractor shall be bound by the regulations in this chapter (exhibit E).

(19)     For construction loans, copies of the government approved and stamped project plans, specifications sheet construction budget, construction and disbursement schedules, contractor performance and payment bonds in an amount sufficient to cover the project costs, and contractor’s all risk insurance coverage in an amount not less than the contract amount.

(20)     ALTA insurance policy.

(21)     Building permit and other required governmental approvals.

(22)     Flood insurance policy, if applicable.

(23)     Spousal consent to encumber if applicable.

 

Modified, 1 CMC § 3806(d), (f), (g).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Amdts Adopted 19 Com. Reg. 15782 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15656 (Sept. 15, 1997); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Commission Comment: The original paragraphs of subsection (c) were not designated. The Commission designated subsections (c)(1) and (c)(2).

 

The November 1997 amendments added a new subsection (c)(2) and amended subsection (c)(1). The 1998 amendments added new subsections (e)(15) through (e)(23) and amended subsections (c)(1), (c)(2) and (e)(14).

 

In subsection (e)(23), the Commission inserted the final period. The Commission corrected the spelling of the word “judgments” in subsection (e)(9) pursuant to 1 CMC § 3806(g).

 

Exhibits A through HH referenced in this chapter were not published with the regulations.

 

§ 100-30-105  Eligibility Determination

 

Upon determining a client’s program eligibility and repayment ability, the loan specialist shall do the following:

 

(a)       Explain terms and conditions of the specific loan program.

 

(b)       Provide the appropriate application, verification of employment and checklist.

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Part 200 -       Application Intake

 

§ 100-30-201  Logging

 

Secretary shall log in the appropriate log book and stamp “RECEIVED” with the date, all incoming applications which are accompanied with all the required documents and/or information for preliminary determination purposes.

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

§ 100-30-205  Content Review

 

Completed applications and pertinent documents and/or information shall be forwarded to the loan documentation clerk, who shall review the contents using the appropriate checklist; (exhibit F for GS&LA, G for VA or H for HOME), and log each application in the appropriate waiting list.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Commission Comment: Exhibits A through HH referenced in this chapter were not published with the regulations.

 

§ 100-30-210  File Creation

 

The loan documentation clerk shall create and maintain the application file using the appropriate folder (including label) for the applicable loan program, and prepare the application’s acknowledgment letter to be signed by the manager of the Mortgage Credit Division (MCD) and forwarded to the applicant(s).

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

§ 100-30-215  Application Assignment

 

Logged application files shall be forwarded as early as possible to the manager of the MCD, who shall assign the application files to loan specialists or contracted private loan packagers for processing.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

§ 100-30-220  Good Faith Estimate

 

The loan specialist or contracted private loan packager shall prepare the good faith estimate of settlement charges (exhibit I), then contact the applicant(s) to review and sign it within three working days from receipt of application by NMHC.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Commission Comment: Exhibits A through HH referenced in this chapter were not published with the regulations.

 

§ 100-30-225  Payment of Credit Report Fee

 

Upon signing of the good faith estimate of settlement charges, the applicant(s) shall make payment of the credit report fee(s) to the Fiscal Division of NMHC, which shall issue a receipt for such payment.

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

§ 100-30-230  Request for Credit Report

 

Upon receiving a copy of the payment receipt, the loan specialist or contracted private loan packager shall request, through the manager of the MCD, for the applicable credit report (consumer for GS&LA and residential mortgage for VA NADLP).

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Part 300 -       Credit Evaluation; Interview; Loan Report

 

§ 100-30-301  Procedure

 

After receipt of the credit report for the applicant(s), the loan specialist or contracted private packager shall proceed as follows in this part.

 

Modified, 1 CMC § 3806(d).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Commission Comment: This section was originally the introduction to part 300. The Commission created the section title.

 

§ 100-30-305  Credit Report Review and Evaluation

 

Review the credit report and evaluate the credit worthiness of the applicant(s).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

§ 100-30-310  Certification of Fund Availability

 

Obtain written certification from the head of the Fiscal Division or the designee for the availability of funds for the proposed loan, if it has been determined that the applicant(s) has/have satisfactory credit history.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

§ 100-30-315  Verification of Deposit

 

Forward verifications of deposit to financial institutions.

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

§ 100-30-320  Examination of Land Document

 

Examine land documents to ensure:

 

(a)       Ownership

Applicant(s) own(s) the property to be secured as collateral for the proposed housing loan, in fee simple or leasehold interest with a remaining term of at least forty years.

 

(b)       Clear Title

Property is free from defect(s) and/or encumbrance(s).

 

(c)       Referral of Title Questions to Legal Counsel

NMHC may forward any question that it has, as to the applicant(s)/borrower(s) interest in the real property or any other collateral that shall secure the loan, to its legal counsel. If NMHC or its legal counsel determines that action should be taken to remove any exceptions to a title report, or that any other action should be taken in regard to the real property or other collateral, then the applicant(s)/borrower(s) must take said action prior to the loan being processed further.

 

(d)       Administration of Collateral

In the event that the borrower(s) fail to provide a current hazard insurance policy for properties improved with outstanding loan funds from NMHC or its predecessor, MIHA, as required, NMHC shall procure a hazard insurance policy and subsequently bill the borrower(s) for the premium amount associated with such coverage. Should any of said properties be abandoned by the borrower(s) and left uninsured, NMHC may secure the property so as to prevent accelerated depreciation of the property and obtain a hazard insurance policy for such property and recover the cost of such policy with proceeds from the rental or sale of the property.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Commission Comment: The 1998 amendments added a new subsection (c) and re-designated subsection (d).

 

§ 100-30-325  1040 Review and Verification

 

Review 1040s for the two previous years and verify that income has been stable throughout the period.

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

§ 100-30-330  Review of Construction Contract

 

The construction contract submitted pursuant to § 100-30-101(e)(15) shall be forwarded to NMHC’s legal counsel for review. Said review shall be for the sole purpose of protecting NMHC and shall be limited to ensuring that the contract contains the minimum clauses they deem necessary to protect NMHC. At a minimum, the contract shall contain provisions that cover the following areas:

 

(a)       Commencement and completion date.

 

(b)       Extensions of time for completion.

 

(c)       Contractor’s duties to safeguard the project, its employees, and third parties.

 

(d)       Project clean-up.

 

(e)       Contractor’s warranty.

 

(f)        Termination of contractor by the owner.

 

(g)       Progressive payment schedule that provides for a retainage of at least ten percent.

 

(h)       Withholding of payments by the owner or NMHC for failure to comply with the construction contract, applicable laws, or in the event of insecurity by NMHC.

 

(i)        Payment and performance bonds.

 

(j)        Liens by subcontractors and material suppliers and the contractor’s duty to obtain releases from all subcontractors and material suppliers.

 

(k)       Payment of taxes.

 

(l)        Purchase of insurance to cover the construction project from fire, flood, typhoon, and vandalism, as well as liability insurance, NMHC shall be a named insured.

 

(m)      Workers compensation insurance.

 

(n)       Indemnification of the owner and NMHC by the contractor for injuries, both personal and economic, attributable to in whole or in part by any negligent act or omission of contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable.

 

(o)       Default by contractor.

 

(p)       Alternative dispute resolution process.

 

(q)       Providing of notices.

 

(r)        Contract to be governed by, and construed in accordance with, the laws of the Commonwealth of the Northern Mariana Islands (CNMI).

 

Modified, 1 CMC § 3806(c), (e), (f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998).

 

§ 100-30-335  Applicant(s) Interview

 

Interview the applicant(s), cross-checking information received through verifications of employment or deposit, credit report, etc.

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

§ 100-30-340  Preparation of Applicable Forms

 

Prepare applicable forms with pertinent data such as:

 

(a)       Rate loan program disclosure (exhibit J).

 

(b)       Disclosure statement (exhibit K).

 

(c)       Item request (exhibit L).

 

(d)       Saipan review sheet - mortgage (exhibit M).

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Commission Comment: The 1998 amendments amended subsections (a) through (d).

 

Exhibits A through HH referenced in this chapter were not published with the regulations.

 

§ 100-30-345  Loan Report

 

Prepare loan report (exhibit N), recommending approval or disapproval of the application, then forward the file to the manager of the MCD and the corporate Director for review and action.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Commission Comment: Exhibits A through HH referenced in this chapter were not published with the regulations.

 

Part 400 -       General Approval Criteria

 

§ 100-30-401  Purpose

 

Each file shall contain the applicant’s written statement as to the purpose of the loan, specifying where funds are needed for purchase, construction or improvement of the applicant’s primary residence.

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

§ 100-30-405  Repayment

 

The applicant must have a permanent source of income for repayment of the proposed loan. Monthly installments for the proposed loan shall be twenty-five percent or less of the applicant(s) gross monthly income. Total obligation, inclusive of the proposed loan, shall be thirty-five percent or less of the applicant(s) gross monthly income.

 

Modified, 1 CMC § 3806(e).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

§ 100-30-410  Maturity

 

Loan maturity shall be set at the time of evaluation, based upon the applicant’s existing repayment ability.

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

§ 100-30-415  Credit Information

 

Applications must be supported by favorable current credit information, including financial statements, credit bureau reports, deposit verification, etc.

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Part 500 -       Loan Administration

 

§ 100-30-501  Approval Process; NMHC Criteria for Approving Loans

 

Applicant(s) whose payment-to-income ratio for the proposed loan is twenty-five percent or less and debt-to-income ratio of thirty-five percent or less, at the time of loan processing, shall be determined by NMHC to be capable of repaying the proposed loan based on current income versus current liability, so long as they have satisfactory credit history, and adequate collateral for the proposed loan.

 

Modified, 1 CMC § 3806(e).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

§ 100-30-505  Credit File

 

(a)       Access

The loan documentation clerk, loan specialist, manager of the MCD or the corporate Director are privy to the credit file when the need arises to refer to the file for purposes of reference, research, review or copying of pertinent documents for use by applicant(s) or for official business.

 

(b)       Comments

Each credit file should contain comments by the responsible account officer, sufficient to establish the amount, purpose, source of repayment, and repayment program for the loan.

 

(c)       Other Supporting Data

Each credit file should also include financial statement(s), credit investigation(s), and loan write-up.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Part 600 -       Pre-approved and Approved Housing Loan Applications

 

§ 100-30-601  Pre-approved Housing Loan Applications

 

File shall be forwarded to the Secretary to be copied and the copy forwarded to GS&LA, RECDS or VA with a transmittal letter from the manager of the MCD for the applicable entity.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

§ 100-30-605  Approved Housing Loan Applications

 

(a)       Approval Notice

Upon MCD’s receipt of GS&LA’s favorable letter of intent to purchase residential real estate loan, VA’s pre-qualification letter or RECDS’ notice of loan approval and closing, the following steps, as applicable, shall be taken:

(1)       Commitment Letter

The MCD manager shall see to it that the controller’s authorization is obtained prior to issuance of the commitment letter for the corporate Director’s signature, for loans under the DFHL program. The letter must specify all the standard terms and conditions as required by the DFHL Amended Policy and Procedures [NMIAC, title 100, chapter 20]. Original and a copy of the commitment letter shall be forwarded to the applicant(s) and a copy filed in the correspondence section of the applicant’s folder pending receipt of the applicant’s acknowledgment of the commitment letter.

(2)       Request for Grant of Public Domain Land

(i)        If the applicant is a homestead permittee, seeking a loan under the provisions of the Village Homesteading Act of 1979, PL 1-42, 2 CMC §§ 4431-4438, the loan documentation clerk shall prepare a request to the Division of Public Land (DPL) of the Department of Lands and Natural Resources (DLNR), for the issuance of a grant of public domain land, for the signature of the manager of MCD. The signed request shall be forwarded to DPL as early as possible. Any commitment letter issued by NMHC pursuant to the terms of subsection (a)(1), above, shall expressly state that a condition of NMHC making a loan and/or extending any credit to the applicant is the issuance of DPL of a grant of public domain land in favor of NMHC for the relevant real property. Despite the terms of any commitment letter and/or action of any NMHC personnel, NMHC shall not be obligated to make any loan to any person covered by the terms of this provision, until such time as a grant of public domain land, in favor of NMHC, for the relevant real property, as issued.

(ii)       NMHC may also make loans to the holders of a homestead permit through the use of an accommodation mortgage to be executed by the borrower, homestead permittee, and the Division of Public Lands. If an accommodation mortgage is to be utilized, then the loan documentation clerk shall prepare an accommodation mortgage and forward the same to the Division of Public Lands for approval and execution. Any commitment letter issued by NMHC pursuant to the terms of subsection (a)(1), above, to a homestead permittee who seeks to utilize an accommodation mortgage, shall expressly state that a condition of NMHC making a loan and/or extending any credit to the applicant is the approval and execution by Division of Public Lands of an accommodation mortgage in favor of NMHC for the relevant real property. Despite the terms of any commitment letter and/or action of any NMHC personnel, NMHC shall not be obligated to make any loan to any person covered by the terms of this provision, until such time as the accommodation mortgage is fully approved and executed by the Division of Public Lands, in favor of NMHC, for the relevant real property, as issued.

(3)       Follow-up

The loan specialist or private loan packager shall then follow up with the applicant(s) to ensure compliance with the terms and conditions of the approved loan as enumerated in the commitment or pre-qualification letter, or notice of loan approval and closing.

 

(b)       Loan Program

(1)       GS & LA

(i)        The same procedure as stated subsection (a) of this section shall be followed.

(ii)       Loan Closing Checklist

The loan documentation clerk shall prepare the loan closing checklist (exhibit O), and place it in the appropriate section of the file.

(iii)      Appraisal and Preliminary Title Reports

After MCD’s receipt of the copy of the applicant’s acknowledgment of commitment letter, written requests for the preliminary title research and appraisal report shall be forwarded to the title and appraisal companies, respectively. For applicant(s) with homestead permit(s), the procedure stated in subsection (a)(2) of this section applies.

(2)       VA - Loan specialist shall follow up with the applicant(s) to ensure that all the conditions of the pre-qualification letter are met as early as possible.

(3)       RECDS - The same procedure as stated in subsection (a) of this section shall be followed.

 

(c)       Preparation and Compilation of Documents

When all the terms and conditions or requirements of the commitment letter, pre-qualification letter or notification of loan approval and closing are met and if applicable, the recorded grant of public domain land is received, the loan specialist shall instruct the loan documentation clerk to prepare and compile the applicable loan closing documents per the loan closing section of the applicable checklist.

 

Modified, 1 CMC § 3806(c), (d), (f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Commission Comment: The 1998 amendments added new subsection (a)(2)(ii) and amended subsections (a)(2)(i) and (b)(1)(ii).

 

Exhibits A through HH referenced in this chapter were not published with the regulations.

 

Part 700 -       Loan Closing

 

§ 100-30-701  Procedure

 

The loan specialist shall review the loan closing documents for accuracy and completeness, then proceed as set forth in this part.

 

Modified, 1 CMC § 3806(d), (f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Commission Comment: This section was originally the introduction to part VIII, codified at part 700. The Commission created the section title.

 

§ 100-30-705  Guam Savings and Loan Association

 

Closing documents (disclosure/settlement statement (exhibit P), loan agreement (exhibit R), promissory note (exhibit S), mortgage (exhibit T)) shall be forwarded to NMHC’s legal counsel for review as to form.

 

(a)       Loan Closing Schedule

After receipt of closing documents approved as to form by NMHC’s legal counsel, the loan specialist shall contact the applicant(s) and schedule loan closing.

 

(b)       Explanation of Documents

At loan closing, the loan specialist shall explain the purpose of each document to be signed by the applicant(s) or NMHC officials, and ensure that a notary public is present for the signing of the loan agreement, promissory note, and mortgage.

 

(c)       Signing of Documents

Closing documents executed by the applicant(s)/borrower(s) shall be forwarded to the corporate Director and Chairperson of the Board of Directors for their signatures.

 

(d)       Document Recordation

Properly executed and notarized loan agreement (exhibit R), promissory note (exhibit S) and mortgage (exhibit T) shall be copied by the loan documentation clerk for recordation at the Commonwealth Recorder’s Office.

 

(e)       Hazard Insurance Register

The loan documentation clerk shall add the borrower’s name and hazard insurance expiration date and type of insurance coverage in the borrowers’ hazard insurance register for monitoring purposes so that follow up for renewals may be made to ensure that every property that is mortgaged for security of loan extended, has in effect, throughout the term of the corresponding loan, the required insurance policy coverage.

 

(f)        Document Distribution

The recorded loan agreement, promissory note and mortgage shall be distributed as follows:

(1)       Originals filed in the safe after microfilming on a quarterly basis.

(2)       A set of copies to the borrower(s).

(3)       A set of copies to the Fiscal Division.

(4)       A set of copies filed in an eight-part classification folder with the borrower’s application and pertinent documents classified by:

(i)        Correspondence

(ii)       Insurance

(iii)      Mortgage - Note

(iv)      Construction

(v)       Appraisal

(vi)      Title

(vii)     Credit report

(viii)    Application.

 

Modified, 1 CMC § 3806(f), (g).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Commission Comment: The 1998 amendments amended the opening paragraph and subsections (a) and (d).

 

In subsection (f)(4)(viii), the Commission inserted the final period.

 

Exhibits A through HH referenced in this chapter were not published with the regulations.

 

§ 100-30-710  U.S. Department of Veterans Affairs

 

The loan specialist shall contact the applicant(s) and contractor to schedule execution of four each (original signatures) of the construction loan promissory note (exhibit U), escrow agreement (exhibit V) and real estate construction agreement (exhibit W).

 

(a)       Execution of Documents

Applicant(s) shall sign all of the documents indicated in this section. The contractor is required to sign only the escrow and real estate construction agreements.

 

(b)       Officers’ Signatures

The real estate construction and escrow agreements signed by the applicant(s) and the contractor shall be forwarded to the corporate Director and Chairperson of the Board of Directors for their signatures and then sent to the VA Office in Honolulu, Hawaii, along with the construction loan promissory note and a transmittal letter signed by the manager of the MCD.

 

(c)       Document Distribution

Upon receipt of the three sets of the construction loan promissory note, real estate construction and escrow agreements also executed by the U.S. Department of Veterans Affairs loan guaranty officer, one set should be retained in the borrower’s file and one each should be distributed to the borrower(s) and contractor. The borrower’s set should be accompanied by a transmittal letter, indicating NMHC’s approval for construction of the proposed improvement if all requirements are met, noting inspection requirements per VA inspection schedule, which should be enclosed, and an acknowledgment portion at the bottom of the letter.

 

(d)       Loan Fund Disposition

The check received for the entire loan amount from the U.S. Department of Veterans Affairs should be routed to the manager of the MCD for information purposes and then immediately forwarded with copies of the construction loan promissory note, real estate construction and escrow agreements, to the controller of the Fiscal Division. The check shall be deposited into a separate account designated for the VA Native American direct loan program.

 

Modified, 1 CMC § 3806(d), (f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Commission Comment: The 1998 amendments amended the opening paragraph.

 

Exhibits A through HH referenced in this chapter were not published with the regulations.

 

§ 100-30-715  RECDS

 

The loan specialist shall contact the applicant(s) to schedule loan closing and remind applicant(s) if the appraisal and/or loan packaging (trustee fee) is to be paid from personal funds. If any or all of the said fees will be financed by RECDS, the check from RECDS must be obtained prior to loan closing. At loan closing the following steps shall be followed:

 

(a)       Execution of Documents

Applicant(s) shall execute the following documents:

(1)       Equal opportunity agreement (exhibit X).

(2)       Nondiscrimination certificate (exhibit Y).

(3)       Promissory note (exhibit Z).

(4)       Real estate deed of trust (exhibit AA), which must be notarized and recorded at the Commonwealth Recorder’s Office prior to submittal to RECDS.

(5)       Subsidy repayment agreement (exhibit BB), if a subsidized loan.

 

(b)       Loan Specialist’s Signatures

Loan Specialist shall sign the following documents:

(1)       Settlement statement (exhibit CC)

(2)       Loan closing statement (exhibit DD)

 

(c)       Completed loan closing documents and the appraisal fee shall be forwarded to RECDS, with a set of copies retained in the borrower’s file. If the loan was packaged by a contracted private loan packager and proper billing has been received, the loan specialist shall request the controller of the Fiscal Division, through a properly filled order to pay funds, to disburse the packaging fee accordingly.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Commission Comment: The final paragraph was not designated. The Commission designated it subsection (c).

 

The 1998 amendments amended subsections (a) and (b).

 

Exhibits A through HH referenced in this chapter were not published with the regulations.

 

Part 800 -       Disbursement of Loan Funds

 

§ 100-30-801  Introduction

 

Following completion, execution, review and proper filing of all loan documents, loan funds shall be allocated for disbursement.

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Commission Comment: This section was originally the introduction to part IX, codified at part 800. The Commission created the section title.

 

§ 100-30-805  Request for Disbursement

 

Each request for disbursement that has been concurred by the borrower(s) shall be logged by the Secretary in the in-coming logbook and then forwarded to the manager of the MCD who shall have the loan documentation clerk process the order to pay funds (exhibit EE) after verifying the billing accuracy with the increment schedule specified in the project’s contract. The order to pay funds must be:

 

(a)       Signed by the manager of the MCD.

 

(b)       Pre-approved by the controller of the Fiscal Division.

 

(c)       Concurred by the corporate Director.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Commission Comment: The 1998 amendments amended the opening paragraph.

 

Exhibits A through HH referenced in this chapter were not published with the regulations.

 

§ 100-30-810  Supporting Documents

 

Except for the initial request for disbursement, each subsequent billing shall be accompanied by:

 

(a)       The contractor’s progress report with project photos.

 

(b)       The private inspector’s current report.

 

(c)       Endorsement(s) by government inspector(s).

 

(d)       Test results and/or treatment reports, if applicable.

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

§ 100-30-815  Change Orders

 

(a)       Prior to a change order becoming effective, it must be approved by both the borrower/owner, their private inspector, if applicable, and the contractor. In addition, the change order shall not become effective until a copy of the change order, with all of the signatures noted above, is served on NMHC, the bonding company that issued the performance and payment bonds, and any insurance company who has issued property insurance on the land on which the home is to be constructed.

 

(b)       If a change order will increase the total project cost, then it shall not become effective until the bonding company and insurance company that issued the property insurance, provides NMHC with written notice that the bonding and insurance company will cover the additional costs associated with the change order in the performance and payment bonds and insurance policy, or until the dollar amount of the performance and payment bonds and insurance policy is increased.

 

(c)       If a change order will increase the project costs such that the amount borrowed must be increased, then in addition to any provision above, the change order shall not become effective until the total loan figure is increased to cover the additional costs associated with the change order and any and all documents that NMHC deems necessary to protect its investment are executed by the borrower/owner and contractor, unless the borrower/owner intends to fund the additional cost themselves and signs a certification of the same and provides a copy of the certification to NMHC.

 

(d)       If the contractor performs the work called for in a change order prior to its becoming effective, pursuant to the provisions of this section, then the contractor shall not seek payment from NMHC or from the proceeds of the loan made by NMHC under the provisions of the regulations in this chapter. The contractor shall further complete the construction project as originally set forth in the parties’ construction contract, as modified by any change orders that are deemed effective by the provisions of this section. Further, the contractor shall take no action which shall in any way impair NMHC’s security interest in the property.

 

(e)       If NMHC makes payment for work performed on a change order that has not become effective under the provisions of this section, then it shall request an immediate refund from the contractor. The contractor shall immediately refund said payment. However, NMHC may, in its sole discretion, deduct any of said monies from future payments to be made under the construction contract rather than requesting a refund.

 

Modified, 1 CMC § 3806(d), (f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (e). The Commission corrected the phrase “parties construction contract” in subsection (d) to “parties’ construction contract” pursuant to 1 CMC § 3806(g).

 

§ 100-30-820  Final Billing

 

(a)       The final billing shall include:

(1)       The builder’s warranty.

(2)       Termite treatment warranty.

(3)       Contractor’s affidavit that all liens have been paid and certificates from all subcontractors and material suppliers that all bills/invoices relating to the project have been paid by the contractor.

(4)       Certificate of occupancy from the Building Safety Office.

(5)       Certification for use of septic system, if applicable.

 

(b)       The Fiscal Division may process the disbursement if all requirements are met. If, in the sole discretion of NMHC, NMHC has any reason to believe that all subcontractors, material suppliers, and/or any other individual or entity that is eligible to file a lien, has not been fully paid, then NMHC may withhold the final disbursement, or any portion thereof, until the period for filing a lien has expired.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

The 1998 amendments amended subsections (a)(3) and (b).

 

Part 900 -       Other Requirements

 

§ 100-30-901  Project Completion

 

Hazard/occupancy insurance policy with fire, typhoon, earthquake and flood coverages for a minimum of the loan amount must be submitted upon completion of the project.

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

§ 100-30-905  Note Sale

 

Loans for completed project which are to be sold shall be further processed, including:

 

(a)       Assignment of promissory note and mortgage (exhibit FF).

 

(b)       Notice of assignment, sale or transfer of servicing rights (exhibit GG).

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Commission Comment: The 1998 amendments amended subsections (a) and (b).

 

Exhibits A through HH referenced in this chapter were not published with the regulations.

 

§ 100-30-910  Loan Disapproval

 

Should a loan application be disapproved, the manager of the MCD shall instruct the loan specialist to prepare for the corporate Director’s signature, the denial letter stating the reason(s) for denial. The original shall be forwarded to the applicant(s), with copies placed in the reading and application files.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

§ 100-30-915  Problem Loan Identification and Administration

 

The head of the Fiscal Division shall provide copies of all delinquency notices to the manager of the MCD, who shall assign follow up of the notices with the respective account officer of each problem loan or any other loan specialist. The attached problem loan write-up sheet (exhibit HH) shall be completed and filed in the particular loan file.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Commission Comment: Exhibits A through HH referenced in this chapter were not published with the regulations.

 

§ 100-30-920  Revision of Loan

 

(a)       Each request for loan revision shall be reviewed by the manager of the MCD and the controller, who shall make recommendation(s) to the corporate Director, based on the loan specialist’s evaluation ensuring that the value of the property being secured is adequate for the proposed revision. If necessary, the request may be forwarded to the Board of Directors.

 

(b)       Once a decision is made, the loan specialist shall process the revision. Correspondence(s) pertaining to the request shall be prepared for the corporate Director’s signature.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

§ 100-30-925  Collection and Foreclosure

 

(a)       Collection and Foreclosure Procedure

The Chairman, or designee, shall closely monitor the repayment of all loans by NMHC borrowers. All loan installments shall be due and payable monthly.

(1)(i)   If any payment is not received by the thirtieth day after the due date, then the corporate Director or designee, shall personally contact the borrowers immediately by telephone and by written letter informing them of the payment default.

(ii)       The corporate Director shall also send out such notices of default and other letters as are required by the loan agreement and other loan documents.

(2)       If any payment is not received by the sixtieth day after the due date, then the corporate Director, or designee, shall personally contact the borrower by telephone and by written letter informing them of the payment default.

(3)       If any payment is ninety days or more delinquent, the matter shall be brought to the attention of the Board. The Board shall consider the matter and make a determination as to whether the matter should be forwarded to an attorney for collection, or if the corporate Director should take further actions in an attempt to collect the debt without litigation. If the matter is not forwarded to an attorney for collection, the matter shall be revisited by the Board at each successive meeting until the delinquency is cured.

(4)       If the matter is forwarded to attorney for collection, then NMHC shall inform the attorney of the status of the account and provide them with all necessary documents to bring a foreclosure action on the same. The attorney shall send the borrower a notice of default in accordance with the CNMI Mortgage Foreclosure Act (2 CMC § 4537).

(5)       If, after the notice of default is sent to the borrower, and the borrower fails to begin curing the delinquency, in a manner and speed that is satisfactory, in the sole discretion of the corporate Director, then the attorney shall file a lawsuit to collect the loan and foreclose upon the mortgage.

(6)       Upon filing of the lawsuit, the principal of the loan shall be accelerated and the entire principal balance plus any accrued interest shall become immediately due and payable. Interest shall accrue on the principal at the rate established in the loan agreement. Prior to entry of judgment, borrower(s) may have the right, as set forth by CNMI law, to cure the default and bring the loan current.

(7)       Upon entry, of judgment in the lawsuit, a copy of the judgment shall be served upon the borrower. If the borrower fails to pay the entire outstanding loan balance plus accrued interest and attorneys fees within three months from the time the borrower is served with the copy of the judgment, all properties mortgaged as security for the loan shall be noticed for sale by way of public auction. The notice shall provide that the minimum bid is the total principal, interest, attorneys’ fees and costs of sale, or the appraised value whichever is greater.

(8)       In the event that no bidders are willing to make a minimum bid, the property shall be withdrawn and noticed for a second sale. As such sale, the minimum bid shall be the same amount.

(9)       NMHC may bid on the property at any public auction.

(10)     If no bidders offer a minimum bid at the second sale, the property, shall be withdrawn, and in the discretion of the corporate Director, or designee, shall either be noticed for a third sale or temporarily removed from the market if, in the discretion of the corporate Director, the likelihood of sale would be greater at a future time. In the event a third sale is authorized, the property, shall be offered with the minimum bid set at the appraised value of the property, or the amount outstanding and due to NMHC, whichever is less. NMHC shall bid the minimum bid on the property.

(11)     If the property, is sold at an auction, the attorney shall prepare a certificate of sale, deliver a copy to the buyer and record the original.

(12)     If NMHC obtains the property, then it shall proceed to make all efforts to sell it at the highest price possible. NMHC may finance the purchase of the house by a borrower in accordance with its policies in subsection (d) below. If NMHC sells the property, prior to the expiration of the redemption period, it shall so notify the buyer and ensure that all sales documents reflect the same.

(13)     After one year, if the borrower has not made an effort to redeem the property from the purchaser, the attorney shall prepare a deed of sale to be executed and delivered to the purchaser.

(14)     If any of the above procedures conflict with any applicable provision of law, or a term in any of the loan documents, then said law or contract term shall control.

(15)     If the borrower has executed a deed of trust, and the same has been sold/assigned to NMHC, due to delinquency in payment, then the same procedures outlined above shall be followed; provided that if the deed of trust allows for foreclosure by way of a private power of sale, then NMHC may follow the terms of the deed and applicable law and handle the foreclosure in house, by way of said power of sale, without referring the matter to an attorney for collection and foreclosure.

 

(b)       Loan Workout

(1)       The Board may recommend a “loan workout” wherein there exists a possibility for NMHC to recover its funds without foreclosure. Such “loan workout” should be considered only as an alternative to foreclosure and will be authorized on a case-by-case basis on substantial evidence provided by the borrower(s) that the loan is recoverable. Any new terms of repayment shall not exceed the period of repayment authorized in this policy inclusive of the date when the loan was made and all grace periods.

(2)       It is the policy of NMHC not to allow the refinancing of loans solely on the basis of delinquency. Further, it is the policy of NMHC not to allow delinquent/outstanding charges — principal, accrued interest, insurance charges, etc., to be consolidated, or added to the principal balance of a loan for the purposes of refinancing. All outstanding charges must be paid prior to NMHC entertaining a request to refinance a loan.

(3)       Any outstanding payments, whether they be principal, accrued interest, or other charges shall be due and payable in accordance with the terms of the applicable loan document. When payment is made on a loan, the payment shall not be applied to the principal of the loan until all other outstanding charges have been paid.

(4)       This policy shall also apply to a housing loan that is taken over by a new borrower.

 

(c)       Disposal of Distressed Property Purchased by NMHC

In the event that NMHC has purchased a property at public auction, in which it has foreclosed a defaulted mortgage, it may sell the same to a person who lacks the financial resources to fully pay the sales price, by financing the purchase through a direct family home loan. In order to participate under this program, the borrower must:

(1)       Be a first-time homeowner;

(2)       Be credit worthy, as determined in the sole discretion of NMHC;

(3)       Agree to an interest rate of nine percent;

(4)       Agree that the loan amount will be amortized over a period not to exceed fifteen years;

(5)       Make a down payment of twenty-five percent of the total purchase price, plus all closing costs, which shall be due and payable to NMHC on loan closing;

(6)       Execute, on a document provide by NMHC, a mortgage on the property, to be purchased to secure the approved loan; and

(7)       Obtain an appraisal report for the property, by an appraiser approved by NMHC. If the appraisal report shows that the property does not have a market value sufficient to secure the loan, then the borrower shall provide additional sources of collateral to fully secure the loan, or additional sources of capital so that the loan may be reduced.

 

Modified, 1 CMC § 3806(d), (e), (f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Amdts Adopted 19 Com. Reg. 15782 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15656 (Sept. 15, 1997); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

Commission Comment: The original paragraphs of subsections (a)(1) and (b) were not designated. The Commission designated subsections (a)(1)(i) and (ii) and (b)(1) through (b)(4). The Commission corrected the phrase “attorneys fees” in subsection (a)(7) to “attorneys’ fees” pursuant to 1 CMC § 3806(g).

 

The November 1997 amendments replaced this section in its entirety with numerous amendments. The 1998 amendments added new subsections (b)(2) through (b)(4), deleted former subsection (c) and amended subsections (a)(6) and (b)(1).

 

§ 100-30-930  Charge-off

 

Installment loans which are seriously behind and have been processed to no avail, may be charged off based upon the recommendations of the head of the Fiscal Division, and the manager of the MCD, with the approval of the corporate Director.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

§ 100-30-935  Satisfaction of Loan

 

Upon receipt of a memorandum from the Fiscal Division of a satisfaction of loan, the manager of the MCD or designee, shall ensure that a proper release of mortgage is processed and executed by the corporate Director and the Chairperson of the Board of Directors within one week from the receipt of such memorandum. The original promissory note, mortgage and release of mortgage shall be provided to the borrower(s) with the borrower(s) acknowledgment of receipt, provided that copies are retained in the respective file.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

§ 100-30-940  File Disposition

 

Files of loans which have been satisfied and issued a release of mortgage shall be maintained in a paid off loan file in alphabetical order for seven years. After such time, these files may be disposed.

 

Modified, 1 CMC § 3806(e).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

§ 100-30-945  Reports

 

The loan specialists shall furnish the manager of the MCD monthly reports which are due by the second working day of each month for the previous month. The manager of the MCD shall furnish the corporate Director monthly reports which are due by the fifth working day of each month, incorporating information provided by the loan specialists.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Adopted 18 Com. Reg. 14655 (Nov. 15, 1996); Proposed 18 Com. Reg. 14264 (Aug. 15, 1996).

 

§ 100-30-950  Renting or Leasing out an NMHC (MIHA) Financed Dwelling Unit

 

(a)       Borrower(s) who contemplate on leasing or renting their home, that was financed through a loan from the NMHC, or its predecessor, MIHA, to develop a homestead lot, that contains, in the deed, grant of public domain land, or as a rider to the borrower(s) mortgage, a prohibition against renting or leasing the property for a set period of time; or other borrower(s) whose mortgage contains a prohibition against renting or leasing the property for a set period of time, may request in writing, for a one year release from such prohibition set forth in any loan document entered into with NMHC or MIHA. Said written request must clearly set forth the reasons which justify why said prohibitions should be waived by NMHC.

 

(b)       Upon receipt of a request for waiver of prohibition, the same will be date-stamped and logged in NMHC’s incoming log book. It will then be forwarded to the corporate Director for consideration.

 

(c)       NMHC may issue a written authorization to borrower(s) to rent or lease out a MIHA - or NMHC - financed house, for a period not to exceed one year, under the following circumstance only:

(1)       Borrower(s) must temporarily move off-island for educational or medical purpose; or

(2)       Borrower(s) must temporarily relocate to care for or assist a family member, such as the elderly, physically challenged individual, etc., who is determined by a qualified physician, to require assistance with dally routine activities.

 

(d)       If the borrower(s) wish to extend the one year waiver for an additional one year period, they must submit a new written request sixty days prior to the lapse of the previous one period waiver. There shall be no limitation on the number of waivers that a borrower may receive and the same shall be issued for as long as NMHC determines that justification exists for the issuance of the same.

 

(e)       A borrower may appeal a denial of a written request for a waiver of prohibition, to the NMHC Board of Directors in accordance with the provisions of the CNMI APA [1 CMC §§ 9101, et seq.] for appealing adverse agency actions.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Amdts Adopted 19 Com. Reg. 15782 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15656 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (e).

 

The 1998 amendments amended subsection (a).

 

§ 100-30-955  Loan Refinancing

 

Borrowers may seek to have their loan refinanced or an exemption from NMHC’s standard policies and procedures by petitioning NMHC’s corporate Director. All such petitions shall be directed to NMHC’s Loan Review Committee and must set forth the grounds upon which relief is sought and the exact relief sought. NMHC’s Board shall only grant exemptions from NMHC’s standard policies and procedures, or allow refinancing, when, in their sole discretion, compelling grounds for the same exist, and the granting of an exemption or refinancing shall also be in the best interest of the corporation.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Amdts Adopted 19 Com. Reg. 15782 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15656 (Sept. 15, 1997).

 

Commission Comment: The 1998 amendments deleted former subsections (a) through (d) and amended the current section.

 

§ 100-30-960  Appeals

 

Any applicant/borrower who is aggrieved by an action of NMHC may appeal to the NMHC Board of Directors, in accordance with the provisions of the CNMI APA [1 CMC §§ 9101, et seq.] for appealing adverse agency actions.

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998); Amdts Adopted 19 Com. Reg. 15782 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15656 (Sept. 15, 1997).

 

§ 100-30-965  Applicability

 

The regulations in this chapter shall apply to any person who obtains a loan under the provisions of the rules and regulations in this chapter. These regulations shall also apply to any contractor utilized by any person who borrows money under these provisions.

 

Modified, 1 CMC § 3806(d), (f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998).

 

§ 100-30-970  Applicability of Other Laws, Regulations and Rules

 

In addition to the regulations in this chapter, loans issued by NMHC may be controlled and/or effected by the general laws of the CNMI and/or the United States. Further, the rules of agencies of said governments may also effect and/or govern loans made by NMHC, specifically the rules and regulations of the United States Department of Housing and Urban Development (HUD) or Veterans Affairs (VA). To the extent that there is a conflict between these rules and the provision of any applicable law, or federal regulation, said law or federal regulation shall control.

 

Modified, 1 CMC § 3806(d).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998).

 

Commission Comment: The Commission corrected the spelling of “affected” pursuant to 1 CMC § 3806(g). The Commission corrected the title of the United States Department of Housing and Urban Development and of Veterans Affairs pursuant to 1 CMC § 3806(g).

 

§ 100-30-975  Applicability of Rules and Procedures of Private Lenders

 

If a loan is to be processed under a program whereby NMHC will sell the loan to a private lender such as GS&LA, then the rules, policies, and procedures of said lender shall be applicable to the processing of the loan. Further, if there is any conflict between NMHC’s regulations and the policies of the lender, then the lender’s policies shall control.

 

Modified, 1 CMC § 3806(g).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998).

 

Commission Comment: The Commission inserted “be” before “processed” to correct a manifest error.

 

§ 100-30-980  Accommodation Mortgages Issues to Holders of Homestead Permits

 

NMHC may loan funds to holders of homestead permits through the use of accommodation mortgages, that are to be executed by the borrower, and the Division of Public Lands. If NMHC is unable to sell the loan to a bank, due to the fact that an accommodation mortgage has been utilized, then NMHC may retain the loan until such time as the homestead permit holder obtains a deed to the homestead site from the Division of Public Land, or until such time as NMHC is able to sell the loan. After a deed is issued, then NMHC may process the loan under any program that it is then participating in, or sell the loan. At the time the loan is first made, in addition to the execution of the accommodation mortgage, NMHC shall also have the borrower and/or homestead permit holder execute a standard mortgage. After a deed is issued, NMHC shall not release the Division of Public Lands from the accommodation mortgage until it has first recorded a notice with the Recorder’s Office, giving notice that the accommodation mortgage was utilized due to the fact that the borrower did not hold the real property in fee simple, and that in addition to the accommodation mortgage, the borrower also executed a standard mortgage on their interest in the property, and that said mortgage is still in existence and valid. NMHC may also require the borrower to execute a new mortgage after the deed is issued, or such other instruments NMHC deems necessary to protect its security interest in the real property.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998).

 

§ 100-30-985  Forms

 

NMHC may require an applicant/borrower to execute forms prepared by NMHC, or other parties. NMHC may further require that the borrower and any contractor utilized by the borrower, utilize forms prepared by NMHC or another party. NMHC has the right to revise or change the forms that it utilizes and/or requires an applicant and/or their contractor to utilize, at its sole discretion. NMHC may refuse to make disbursements if a borrower and/or their contractor fails to utilize a form required by NMHC.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 20 Com. Reg. 16269 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16042 (July 15, 1998); Amdts Proposed 20 Com. Reg. 15807 (Jan. 15, 1998).

 

§ 100-30-990  Limitation on Applicant/Borrower Selection of Contractors; Mandatory Criteria for Contractors to Participate/Construct/Rehabilitate Homes Financed by NMHC

 

(a)       Applicants/borrowers may only contract, for the construction and/or rehabilitation of a home, to be financed in whole, or in part, by NMHC, with a construction contractor that has been approved by NMHC.

 

(b)       To obtain NMHC approval to participate/construct/rehabilitate homes receiving NMHC financing, a contractor must submit the following documents:

(1)       Most current financial statement and a copy of BGR for the last two years;

(2)       Statement of experience in and length of existence of construction business;

(3)       List of on going*/past projects including location and amount of project;

(4)       Certificate of compliance issued by the Division of Revenue and Tax;

(5)       Copy of workman’s compensation policy;

(6)       Copy of valid business license;

(7)       Name of insurance company currently dealing with contractor for coverage on hazards, bonds, etc.;

(8)       Articles of incorporation and by-laws of the company, if applicable; and

(9)       Copy of most recent annual report, if applicable.

 

(c)       In addition to supplying NMHC with the above referenced documents, the contractor must certify in writing that:

(1)       It has supplied the above requested documents;

(2)       It has no pending complaints or disputes from clients on projects that it is currently working on;

(3)       There are no pending complaints, cases, or liens, filed against contractor at the Division of Labor, Superior Court, or the U.S. District Court, for unfair labor practices, breach of contract, non payment of wages, or any other ground;

(4)       There are no claims or unpaid obligations on materials purchased by contractor that are past due; and

(5)       Contractor is able to obtain the necessary bonding required in order for NMHC to close the applicable loan.

 

(d)       If a contractor has been previously approved by NMHC, and any of the information required to be submitted above has changed, then the contractor must advise NMHC of the same and submit documents explaining the same. In addition, an approved contractor, on an annual basis, must establish that it has renewed its business license, worker’s compensation insurance coverage, any other applicable insurance, and paid faxes for the previous year.

 

(e)       Should an approved contractor:

(1)       Have a claim filed on a bond issued to them;

(2)       Have a lien filed against them for failure to pay a construction related debt;

(3)       Have a determination issued by the CNMI Department of Labor and Immigration, Division of Labor, that the contractor has failed to pay wages to its employees in compliance with applicable law, or otherwise violated any law pertaining to its employees;

(4)       Have a complaint filed against it by the US Department of Labor, IRS, or other government agency;

(5)       Fail to renew their business license;

(6)       Be unable to obtain bonding or necessary insurance;

(7)       Be issued a notice of deficiency or other notice that it has an outstanding obligation for taxes due and owing to either the CNMI, federal, or other governmental body;

then the Executive Director, in consultation with the manager, Mortgage Credit Division, shall bar/suspend the contractor from working, in any manner, on a home financed by NMHC, until such time as the contractor provides assurances, adequate to NMHC in its sole discretion, that the contractor is financially capable of constructing the home in question, free and clear of any and all liens or encumbrances. The contractor will further be limited to working on NMHC houses, such that the contractor must be approved on a project by project basis, until such time as the contractor has remedied whichever of the above referenced criteria is applicable to it.

 

(f)        A decision by the management to bar or suspend a contractor may be appealed to NMHC’s Board of Directors. All appeals shall be governed by the APA [1 CMC §§ 9101, et seq.].

 

(g)       If a contractor has been barred/suspended, then regardless of the result of an appeal, they may reapply for NMHC approval, sixty days after their being barred/ suspended, and may reapply every sixty days thereafter.

 

* So in original.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17589 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17150 (Apr. 20, 2000).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (g).

 

Executive Order 03-01 (effective May 9, 2003), the “Department of Labor and Immigration Reorganization Plan of 2003,” renamed the Department of Labor and Immigration to the Department of Labor.

 

§ 100-30-995  Liquidated Damage Assessments for NMHC Financed Construction Projects

 

All contracts for home construction or rehabilitation, funded in whole, or in part, by NMHC, must contain a provision for mandatory liquidated damages as follows:

 

Construction Amount

Liquidated Damages (Per Day)

$1 – 25,000

$100.00

25,001 – 50,000

$125.00

50,001 – 75,000

$150.00

75,001 – 100,000

$175.00

100,001 and above

$200.00

 

History: Amdts Adopted 22 Com. Reg. 17589 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17150 (Apr. 20, 2000).


CHAPTER 100-40

NMHC/MPLT HOME LOAN REGULATIONS

 


Part 001          General Provisions

§ 100-40-001  Scope

§ 100-40-005  Authority

§ 100-40-010  General Purpose

§ 100-40-015  Programs

§ 100-40-020  Definitions

 

Part 100          Operation of the Programs

§ 100-40-101  General Provisions

§ 100-40-105  Purpose of Loan

§ 100-40-110  Priority

§ 100-40-115  Persons Eligible for Home Loans

§ 100-40-120  Eligible Improvements

 

Part 200          Special Conflict of Interest Provision

§ 100-40-201  Participation by Executives Prohibited

§ 100-40-205  Conflict of Interest Regarding Family Members

§ 100-40-210  NMHC and MPLT Employee Participation

 

Part 300          Qualifying Security

§ 100-40-301  Property Qualifying Under the Programs

 

Part 400          Administration and Eligibility

§ 100-40-401  Administration

§ 100-40-405  Applicant’s Eligibility

§ 100-40-410  Disbursements of Loan Proceeds; Construction Loans

§ 100-40-415  Construction Insurance or Performance and Payment Bond

§ 100-40-420  Disbursement of Loan Proceeds; Purchase of Existing Home

§ 100-40-425  Disbursement of Loan Proceeds; Home Addition and Improvement Loan

§ 100-40-430  Purchase of Materials by Applicants

§ 100-40-435  Co-ownership or Estate Ownership of Mortgaged Property

§ 100-40-440  Surveys

§ 100-40-445  Appraisals

§ 100-40-450  Criteria for Surveyors, Appraisers, Contractors and Architects

 

Part 500          Credit Review

§ 100-40-501  Credit and Payment Ability

§ 100-40-505  Program Loan Amounts

 

Part 600          Secondary Financing

§ 100-40-601  Secondary Financing

 

Part 700          Security for Program Loans

§ 100-40-701  Title Insurance Required

§ 100-40-705  Amount of Coverage

§ 100-40-710  Other Insurance Coverage

§ 100-40-715  Collateral Required

§ 100-40-720  Construction Insurance or Performance and Payment Bond

 

Part 800          Limitation on Use and Enforcement

§ 100-40-801  Only Home Loans Permitted

 

Part 900          Loan Charges and Fees

§ 100-40-901  Interest Rate

§ 100-40-905  Allowable Loan Charges; Prepayment Penalties

 

Part 1000        Term of Loans

§ 100-40-1001                        Repayment Period

§ 100-40-1005                        Interest Payment

§ 100-40-1010                        Payment of Principal and Interest

 

Part 1100        Loan Closing

§ 100-40-1101                        Expiration of Commitment Letter

§ 100-40-1105                        Pre-construction Conference

§ 100-40-1110                        Homeowner Counseling

 

Part 1200        Assignment and Transfer of Mortgaged Property

§ 100-40-1201                        Sale or Transfer of Mortgaged Property

§ 100-40-1205                        Consent by NMHC

 

Part 1300        Assumption and Early Pay off of Loan

§ 100-40-1301                        Assumption of Loan; Prohibition

§ 100-40-1305                        Early Pay Off

§ 100-40-1310                        Death of Borrower

 

Part 1400        Sanctions and Foreclosure

§ 100-40-1401                        Sanctions

§ 100-40-1405                        Foreclosure

§ 100-40-1410                        Foreclosure of Home Loans

 

Part 1500        Minimum Standards for Professionals

§ 100-40-1501                        Pre-qualified List

§ 100-40-1505                        Universal Minimum Standards

§ 100-40-1510                        Limitation on Applicant/Borrower Selection of Contractors; Mandatory Criteria for Contractors to Participate/Construct/ Rehabilitate Homes Financed by NMHC

§ 100-40-1515                        Liquidated Damage Assessments for NMHC Financed Construction Projects

 

Part 1600        Proof of Occupancy

§ 100-40-1601                        Affidavit of Occupancy

 

Part 1700        Reconsideration of Loan Application

§ 100-40-1701                        Request for Review of NMHC Rejection

§ 100-40-1705                        Request for Review of Lender Rejection

 

Part 1800        Miscellaneous Provisions

§ 100-40-1801                        Headings

§ 100-40-1805                        Severability

§ 100-40-1810                        Effective Date

 

Appendix A    Standard Home Loan Program

Appendix B     Low Income Home Loan Program

Appendix C    Home Improvement Loan Program

Appendix D    Income Schedule


 

Chapter Authority: 2 CMC § 4433; Executive Order 94-3 § 407.

 

Chapter History: Amdts Adopted 22 Com. Reg. 17588 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17158 (Apr. 20, 2000); Amdts Adopted 20 Com. Reg. 16266 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16075 (July 15, 1998); Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Commission Comment: 2 CMC § 4411 creates the Mariana Islands Housing Authority (MIHA) as a public corporation within the Commonwealth government, charged with meeting the need for decent, safe and sanitary housing for persons of low and moderate income in the Commonwealth. See 2 CMC §§ 4411-4457. 2 CMC § 4433 sets forth the powers of MIHA, including the general power to do any and all things necessary or convenient to effectuate the purposes of the act and to carry out any of the powers granted by the act. See 2 CMC § 4433(t).

 

Executive Order 94-3 (effective August 23, 1994) reorganized the Commonwealth government executive branch, changed agency names and official titles and effected numerous other revisions. According to Executive Order 94-3 § 407:

 

Section 407. Marianas Housing Authority.

(a) The Marianas Housing Authority is abolished and its functions transferred to a Division of Housing within the Commonwealth Development Authority, which shall have at its head a Director of Housing.

(b) Any bond or other indebtedness of the Mariana Island Housing Authority shall be assumed by the Commonwealth government, but only upon such terms and security as shall have been agreed to previously by the Authority. The full faith and credit of the Commonwealth shall to secure such bond or other indebtedness, except as may have been pledged prior to such assumption or as otherwise provided by law.

 

The full text of Executive Order 94-3 is set forth in the commission comment to 1 CMC § 2001.

 

The Northern Marianas Housing Corporation is a subsidiary corporation of the Commonwealth Development Authority and the successor to MIHA under Executive Order 94-3. See 2 CMC § 4482(d).

 

Part 001 -       General Provisions

 

§ 100-40-001  Scope

 

The regulations in this chapter shall govern the administration of the Northern Marianas Housing Corporation (NMHC) Marianas Public Land Trust (MPLT) Funded Home Loan Program, as established and adopted herein, by the Board of Directors of the NMHC. The regulations in this chapter shall apply to all loans made with funds provided and/or secured by MPLT and shall supersede all previously issued policies, which are inconsistent with this policy. NMHC may also utilize these regulations, at its sole discretion, in making loans of its own funds rather than MPLT secured funds.

 

Modified, 1 CMC § 3806(d).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-005  Authority

 

Under and by virtue of the authority provided under 2 CMC §§ 4431, et seq., and the Administrative Procedure Act, 1 CMC §§ 9101, et seq., the Board of Directors promulgates the regulations in this chapter. NMHC in coordination with MPLT, will oversee and manage the disbursement of funds to qualified applicants, pursuant to Public Law 10-29 [2 CMC §§ 4481-4490] and agreements entered thereunder.

 

Modified, 1 CMC § 3806(d), (g).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Commission Comment: The Commission changed “eq.” to “seq.” and “Procedures” to “Procedure” to correct manifest errors.

 

§ 100-40-010  General Purpose

 

It is the policy of NMHC to assist qualified applicants to acquire and occupy a home. 2 CMC, division 4. The purpose of the MPLT Funded Family Home Loan Program is to encourage and create better living standards for the people of the CNMI, a healthier environment for family life, and an attractive community by providing modest, safe and sanitary dwellings. This policy will also enhance the economic activity of the Commonwealth through increased building construction, which will increase demands for jobs, building materials, home furnishing, and related products.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-015  Programs

 

(a)       Pursuant to Public Law 10-29 [2 CMC §§ 4481-4490], these programs are created by the regulations in this chapter:

(1)       The Standard Home Loan Program to finance home purchase and construction;

(2)       The Low Income Home Loan Program to finance home purchase and construction at reduced finance rates for certain qualified applicants; and

(3)       The Home Improvement Loan Program to finance home additions and repairs.

 

(b)       Each program is subject to the regulations in this chapter. The particular loan limits, interest rates and special requirements of the individual programs are set out in appendixes A, B and C hereto, and are incorporated by reference herein.

 

Modified, 1 CMC § 3806(d), (f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

§ 100-40-020  Definitions

 

As used in the regulations in this chapter:

 

(a)       “Applicant” means any individual intending homeowner signing the note or mortgage, or both, and occupying or intending to occupy, the subject property, including any guarantor, endorser, or co-signer that occupies the property.

 

(b)       “Appraised value” means the value assigned to or placed upon a property and improvements thereon, offered as collateral when securing or obtaining a loan under this chapter. The appraised value includes the value of the improved property plus the added value of any improvements to be constructed with the loan proceeds approved under this chapter.

 

(c)       “Board” or “Board of Directors” means the Board of Directors of the Northern Marianas Housing Corporation, as defined in 2 CMC §§ 4421, et seq.

 

(d)       “Borrower” means the person who signs the note evidencing the loan and the mortgage securing it.

 

(e)       “Contractor” means a Commonwealth licensed construction business that by contract agrees to build a single family home for the applicant.

 

(f)        “Family” or “household” refers to husband and wife and their children who live in one house and under one head. A child who has attained the age of majority of 18 years old should not be counted as part of that family, unless he/she is a full-time student under the age of 22 years.

 

(g)       “Finance loan closing costs” means loan closing costs which may be financed such as loan origination fee, engineering fee, preliminary title report fee, title insurance, appraisal report fee, inspector’s fee, mortgage or life insurance.

 

(h)       “Guarantors,” “endorsers,” or “co-signers” means the persons signing the note or mortgage, or both, but who may or may not be occupying the subject property.

 

(i)        “Improved real property” means real property upon which are situated or shall be constructed permanent buildings suitable for residence.

 

(j)        “Lender” or “participant lender” means a financial institution which may by law make loans secured by first or second mortgages on real estate and which participates in the home loan programs under an agreement with NMHC. Lender or participating lender may include NMHC.

 

(k)       “Loan” or “home loan” means a loan made under the MPLT Funded Home Loan Program, administered by NMHC, with funds provided by and/or secured by MPLT, or funds provided by and/or through NMHC and made available through this chapter.

 

(l)        “Mortgage” includes a deed of trust for security.

 

(m)      “MPLT” means the Marianas Public Land Trust.

 

(n)       “NMHC” means the Northern Marianas Housing Corporation.

 

(o)       “Principal residence” means the house to be constructed, purchased, refinanced or improved must be occupied and used by the applicant as their principal place of residence.

 

(p)       “Unimproved real property” means real property upon which no structures or permanent buildings are situated; or upon which temporary structures or buildings are situated but are not suitable for residence.

 

Modified, 1 CMC § 3806(d), (f), (g).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Commission Comment: In subsections (c) and (h), the Commission moved the commas after “guarantors” and “endorsers” inside of the closing quotation marks.

 

Part 100 -       Operation of the Programs

 

§ 100-40-101  General Provisions

 

The following generally describes the operation of the programs as they are administered by NMHC.

 

(a)       Individuals desiring a home loan shall file an application with NMHC for such a loan.

 

(b)       Financial institutions or agencies desiring to participate as Lenders in the home loan program shall file an application with NMHC, and upon approval and certification as a participant, such institution or agency shall execute a loan purchase agreement with NMHC and thereafter become a “participating lender.”

 

(c)       The participating lender shall, in accordance with the terms of the loan purchase agreement:

(1)       Assist NMHC in obtaining complete applications from borrowers, and assist NMHC in its operations under this chapter;

(2)       Purchase loans made by NMHC under this chapter.

 

(d)       The loan purchase agreement to be executed by a participating lender is set forth at the end of this chapter as appendix “D”* and incorporated by reference herein.

 

* So in original. See Commission Comment.

 

Modified, 1 CMC § 3806(d), (f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Commission Comment: Appendix D of the original regulation is a household income schedule, not a loan purchase agreement. It is codified as Appendix D to this chapter.

 

§ 100-40-105  Purpose of Loan

 

There shall be no outright cash disbursements or cash take out to the applicant or borrower under the home loan programs. Home loans shall be made for the following purposes only, all of which shall be verified before and during the term of the loan:

 

(a)       Home purchasing - the financing of the purchase or long-term lease of existing homes.

 

(b)       Home construction - the construction of a home on improved land to be subject to take out and long-term home purchase financing.

 

(c)       Home improvement - the construction of a room addition or general improvements such as changing a tin roof to a cement roof, for the improvement of an existing home.

 

(d)       Home loan refinancing - the refinancing of an existing home loan, if the original mortgage was taken out for the purpose of:

(1)       Making home improvements; or

(2)       Purchase or construction of a principal residence.

 

Modified, 1 CMC § 3806(f), (g).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Commission Comment: In subsection (c), the Commission changed “additions” to “addition” to correct a manifest error.

 

§ 100-40-110  Priority

 

(a)       Priority among applicants will be given to first time home owners and applicants of Northern Marianas Islands descent as that term is construed under article XII of the Commonwealth Constitution. Applicants from Rota, Tinian, and Saipan will all be treated equally.

 

(b)       Home loans shall be provided in the following order of priority:

(1)       First priority: Acquisition or construction of a principal residence for first time homeowners.

(2)       Second priority: The construction of room additions or the eligible improvements to existing structures.

(3)       Third priority: The refinancing or conversion of a construction loan to a permanent home loan for a principal residence.

(4)       Fourth priority: The construction of second home where the applicant(s) intends to use the new home as principal residence upon completion.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

§ 100-40-115  Persons Eligible for Home Loans

 

(a)       To be eligible for a home loan, the applicant shall be a resident of the Commonwealth, shall be a person of Northern Mariana Islands descent as is defined by article XII of the Commonwealth Constitution, and shall meet all applicable criteria for the particular program they are applying for as set forth in appendixes A, B and C. Said lending criteria may be revised from time to time by the Board, and shall be effective after publication in the Commonwealth Register.

 

(b)       To be eligible for a home loan, the applicant shall be:

(1)       A citizen of the United States and a resident of the CNMI,

(2)       At least 18 years of age,

(3)       A person who has not purchased nor built a dwelling unit under the farmers home, NMHC (formerly MIHA), SBA, or Northern Mariana Islands Retirement Fund home loan program,

(4)       A person who demonstrates a stable employment history,

(5)       A person who is credit worthy,

(6)       A person who is earning an amount within the outline income boundaries and has a gross income sufficient to make the monthly installment, and

(7)       A person who has paid all CNMI taxes due.

 

(c)       The applicant shall also meet all applicable criteria set by the borrower and the participating lender, in addition to the criteria required below. Said lending criteria established by the NMHC and the participating lender shall be published in the Commonwealth Register as regulations and may be revised from time to time by the Board. The qualifying criteria and subsequent revisions shall only be effective after publication in the Commonwealth Register and lapse of the comment period. The qualifying criteria set forth in this home loan program for applicants are minimum standards and cannot be reduced by the Board or the participating lender.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

§ 100-40-120  Eligible Improvements

 

(a)       The following improvements are eligible for home loans:

(1)       Structural alterations and reconstruction such as additions to the structure, repair of termite damage, and the treatment of termite infestation;

(2)       Changes for improved functions and modernization such as remodeling of kitchens and bathrooms;

(3)       Changes for aesthetic appeal and elimination of obsolescence such as new exterior siding;

(4)       Reconditioning or replacement of plumbing, air conditioning, and electrical systems;

(5)       Roofing, exterior siding, gutters and down spouts;

(6)       Flooring and tiling;

(7)       Energy conservation improvements such as new pane windows, solar domestic hot water systems; and

(8)       Improvements for accessibility to the disabled.

 

(b)       Luxury items and improvements which do not become a permanent part of the real property are not eligible, including, but not limited to the following: barbecue pits, bathhouses, exterior hot tubs, saunas, whirlpool baths, swimming pools, television antennas, satellite dishes, and tennis courts.

 

(c)       Any additions or alterations to provide for commercial uses are not considered eligible improvements.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c). The Commission inserted commas after the words “damage” in subsection (a)(1) and “conditioning” in subsection (a)(4) pursuant to 1 CMC § 3806(g).

 

Part 200 -       Special Conflict of Interest Provision

 

§ 100-40-201  Participation by Executives Prohibited

 

No Northern Marianas Housing Corporation (NMHC) or Marianas Public Land Trust (MPLT) Board Member, Corporate Director, Executive Director, spouse, or member of his or her household may apply for loan funding, or be an “applicant” under the terms of this agreement or program. No corporation, company, association, partnership or other legal entity in which any NMHC or MPLT Board Member, Corporate Director, Executive Director, spouse or member of their household has any interest, directly or indirectly, may apply for loan funding, or be an “applicant” under the terms of this agreement or program.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-205  Conflict of Interest Regarding Family Members

 

No NMHC or MPLT Board Member, Corporate Director, Executive Director, officer, counsel, agent, or employee shall in any manner, directly or indirectly, participate in the deliberation or upon the determination of any question affecting the personal interest or the interests of any enterprise in which his parent, child, grandchild, sibling, parents in-law, siblings in-law, or any member of his or her household is directly or indirectly interested.

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-210  NMHC and MPLT Employee Participation

 

Officers, counsel, agents, and employees of NMHC and MPLT are eligible to apply, be an “applicant” under the terms of this agreement and program under the following terms and conditions:

 

(a)       No officer, counsel, agent, or employee of NMHC or MPLT may directly or indirectly participate in the deliberation or determination of any question affecting their eligibility, priority, participation, acceptance, or other question affecting their personal interest or the interests, directly or indirectly, of their parents, parents in-law, children, grandchildren, siblings, siblings in-law, or any member of their household, or any enterprise with which any of the parties described above have any interest.

 

(b)       All applications for program participation from any party described in subsection (a), above shall be immediately separated from all other applications, clearly identified as an “employee or family” application, and processed in accordance with subsection (c), below.

 

(c)       All applications identified as an “employee or family” application shall be fully processed by NMHC employees who have no familial relation to any of the applicant as identified in subsection (a), and reviewed by the NMHC Board.

 

(d)       All employees, agents, counsel, Directors, and Board Members described in this section have an affirmative duty to disclose any relationship described in subsection (a), above. A willful failure to disclose a relation described in subsection (a), above, or other conflict of interest as defined in this section shall be deemed a breach of fiduciary duty and cause for immediate disciplinary action including removal by the appointing authority.

 

Modified, 1 CMC § 3806(f), (g).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (d).

 

In the opening paragraph, the Commission changed “condition” to “conditions” to correct a manifest error.

 

Part 300 -       Qualifying Security

 

§ 100-40-301  Property Qualifying Under the Programs

 

(a)       To qualify for a home loan, the property securing the loan shall be “improved real property” located in the Commonwealth of the Northern Mariana Islands. This includes homestead property, as such property is defined by the Department of Natural Resources, Division of Land Registration and Survey. The applicant shall own or propose to own the property in fee simple; or lease or propose to lease the property for a term in excess of at least twice the term of the loan. The property to be acquired, or constructed upon may include:

(1)       A one-family home, dwelling unit or structure which may be attached or detached; or

(2)       A one-family dwelling unit in a planned development. The applicant shall occupy or agree to continuously occupy the dwelling unit as the applicant’s principal home during the term of the loan. Any appraisal of the property shall include the value of all improvements, but the value of the dwelling unit or units not occupied by the applicant shall be deducted in computing the loan-to value ratio.

 

(b)       Unless the Board finds a compelling justification otherwise on a case by case review, NMHC shall not make a loan secured by property which is not served by any utilities, lacks or has difficult access to or from a public road, or does not conform to all applicable zoning and land use restrictions or building code regulations, is located on a substandard lot, is a lodging unit, or has any other unusual characteristic that NMHC determines to adversely affect its value. The Board may establish a minimum lot size.

 

(c)       NMHC shall not make any home loan for the construction of a principal dwelling, room addition, or home improvement, unless the construction will be:

(1)       Performed by a duly licensed contractor in the Commonwealth from a pre-qualified list maintained by the Board;

(2)       In accord with such building and zoning code regulations as the CNMI Legislature, or in the absence thereof, the Board, may from time to time adopt; and

(3)       In accord with specifications and plans certified by a duly licensed architect, civil and structural engineers in the Commonwealth from a pre-qualified list maintained by the Board.

 

(d)       A home purchase, home construction, or home improvement loan shall not be made if NMHC determines that the owner or an affiliated business is the contractor unless prior to loan approval and in addition to other requirements provided in this chapter, the following applies:

(1)       The borrower must submit:

(i)        At least three quotations from three different NMHC approved contractors;

(ii)       Certified or stamped plans and specifications by a duly licensed and registered architect, civil or structural engineer in the Commonwealth of the proposed construction; and,

(iii)      A contractor’s cost breakdown for each quotation.

(2)       NMHC, in its discretion, may request a review of the documents by the Department of Public Works or an independent architectural or engineering firm for compliance and reasonableness of cost estimates claimed.

(3)       The performance bond, payment bond, workers’ compensation, and builder’s risk all required under part 6 section 6.5* of this chapter must include a provision that in the event the contractor defaults on the contract and the applicant neglects or refuses to enforce the terms of the bond, NMHC and the bank are both authorized to act on behalf of the applicant and to enforce the bond.

(4)       Receipts showing actual expenditures must accompany all payment requests.

(5)       A full one year builder’s warranty be provided to NMHC, with a clause stipulating that if the applicant refuses to enforce the provisions stated therein, NMHC and the bank shall have the right to enforce any provision, without the applicant’s consent.

* So in original. See Commission Comment.

 

Modified, 1 CMC § 3806(d), (e), (f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Commission Comment: The Commission inserted a comma after the word “construction” in subsection (d) pursuant to 1 CMC § 3806(g). In subsection (d)(3), the starred cross-reference is incorrect. The original regulations did not contain a part 6, section 6.5. However, the bonds and insurance to which this section refers are required by § 10.5, codified at § 100-40-720.

 

Part 400 -       Administration and Eligibility

 

§ 100-40-401  Administration

 

(a)       Applicants for single family residential housing will apply with the NMHC. Applicants approved by the NMHC and the bank in compliance with banking standards recognized in the United States will then be authorized to borrow from the NMHC an amount no more than is necessary for the purchase, lease, refinance, construction or improvement of the residence.

 

(b)       NMHC shall establish an account with the bank funded with the proceeds of this loan (the “collateral account”). NMHC may establish collateral accounts with more than one bank and will endeavor to secure the best interest rates and terms for the applicants in selecting banks with which to establish collateral accounts.

 

(c)       The bank shall disburse the program loan upon the request from NMHC. The bank will transfer the funds from the line of credit facility into the checking account of NMHC. NMHC shall take a deed of trust on the property. The funds for the program loan will be secured by the collateral account. The collateral account shall be primarily liable to the bank should there be a default on the program loan. The mortgage and the deed of trust taken shall be in favor of the NMHC, and provide that the lender shall have priority to satisfy any deficiency.

 

(d)       In the event the applicant defaults on the program loan, the NMHC will foreclose on the mortgage and deed of trust. Upon completion of the foreclosure, the bank may offset its loss against the collateral account, MPLT may offset the loss to the collateral account and its lost interest from its payments to the general fund, NMHC shall sell the foreclosed property. The proceeds from the foreclosure sale shall be transferred to the general fund, minus NMHC’s costs of collection.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-405  Applicant’s Eligibility

 

(a)       Before a final determination to favorably grant a loan is made, NMHC shall obtain the agreement of sale, construction contract, plans and specifications, and/or title insurance.

 

(b)       The terms and conditions of a home loan shall be in accordance with the regulations in this chapter including amendments thereto in effect on the date the applicant’s eligibility is certified.

 

Modified, 1 CMC § 3806(d), (f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-410  Disbursements of Loan Proceeds; Construction Loans

 

(a)       If the loan approved is for new construction, NMHC, the bank, and the contractor to whom the applicant has contracted to build or construct a principal home, shall set a schedule for the disbursement of funds, in writing, in accordance with the construction phases set by the contract and as agreed to by NMHC and the participating lender, provided that the initial disbursement shall be no more than ten percent of the total amount of the loan.

 

(b)       All disbursements will be made directly from the NMHC to the contractor, borrower and to the insurance company jointly. No disbursements shall be made directly to the program participant alone. The first disbursement will not be made until all the required building permits have been issued to the contractor.

 

(c)       Borrower shall hire duly licensed and registered to practice in the Commonwealth, architects and civil and structural engineers at their own cost to inspect the progress of the project and to ensure that the building is constructed according to the plans and specifications.

 

(d)       All progress payments to the contractor shall be made only after the contractor, and the applicant and their construction inspector have certified to the NMHC that the work so far has been properly performed in accordance with the contract, and that the applicant accepts the work. All progress payments will be made in accordance with all construction costs to the date of contractor’s invoice, less 10% retainage to be disbursed when all work is completed according to the plans and specifications and the satisfactory completion of the contract. The 10% retainage funds will not be released until the contractor has submitted to the NMHC all lien waivers, builders warranty, for at least one year. The applicant jointly with their construction inspector, should provide an acceptance and completion letter indicating that all the work is satisfactorily complete.

 

(e)       Prior to the release of the 10% retainage, the applicant shall submit the certificate of occupancy issued by the Building Safety Office of the Department of Public Works.

 

(f)        The signatures of the applicant and their construction inspector indicating that all the work is satisfactorily complete is required for the release of the 10% retainage from the NMHC to the contractor. In the event that the applicant unreasonably refuses to accept the work, NMHC may authorize payment of the final 10% provided that the architect and engineer agree that the work is in conformance with the contract documents and is acceptable.

 

(g)       Any change order, regardless of the amount, must be approved by NMHC and bank prior to beginning the work.

 

(h)       The NMHC Board and the bank may waive the 10% initial disbursement requirement set forth in subsection (a) of this section for good cause, and if to do so is appropriate under the circumstances.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-415  Construction Insurance or Performance and Payment Bond

 

The NMHC and the bank shall require that the contractor secure insurance coverage in an amount equal to the total construction loan to protect against builder’s risk, performance and payment bond, and workmen’s compensation during the entire term of the construction period. The effective date of the policies will commence on the date the notice to proceed is issued by the NMHC and the bank. The contractor shall name the NMHC and the bank as the primary loss payee up to the amount of funds already disbursed, plus any applicable interest. Any proceeds recovered under the policies secured pursuant to this section in excess of the amount to be paid to the NMHC or the bank, shall be paid to the contractor.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-420  Disbursement of Loan Proceeds; Purchase of Existing Home

 

If the loan is for a purchase or long term lease of an existing home, NMHC and/or the bank shall establish an escrow as follows:

 

(a)       The escrow shall require that before any payments are distributed, the escrow agent must receive:

(1)       The deed or long term lease conveying the property to the applicant;

(2)       Commitment to insure title;

(3)       Proof of clear title, if there are no mortgages, or liens on the property;

(4)       All required insurance;

(5)       All required inspection reports; and

(6)       An appraisal of the property acceptable to the bank and NMHC.

 

(b)       Upon receipt of all of the documentation set forth above, and any other requirements specified in the escrow instructions, the escrow agent shall simultaneously:

(1)       Record the deed or lease for a long term interest in the property;

(2)       Record the mortgage;

(3)       Pay out of escrow the purchase or lease price to the seller/lessor;

(4)       Pay any insurance premiums and fees as may be called for in the escrow instructions; and

(5)       Complete all steps necessary to the closing of escrow including delivery to all parties of copies of all recorded documents and proof of insurance.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-425  Disbursement of Loan Proceeds; Home Addition and Improvement Loan

 

Disbursement of loans for simple improvements may be made directly to suppliers where the supplier is installing the fixture. Disbursements shall be made only after the materials have been delivered to the job site and contemporaneous with the execution of a release by the supplier of all claims for the materials delivered. Otherwise, all disbursements for home improvement loans shall be administered as are home construction loans.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-430  Purchase of Materials by Applicants

 

When the loans are written, they shall be for the completed work, including the purchase by the contractor of all supplies. Applicants may reduce their total costs by purchasing materials themselves directly if NMHC is advised in advance and concurs to the applicant buying materials directly. Loan proceeds may not be disbursed to the applicants to reimburse them for their purchases, but the applicants shall be given credit on the loan balance for their direct purchases, and the total loan amount reduced accordingly, provided:

 

(a)       The contractor certifies that the materials the applicant claims were purchased were actually purchased and used in the work;

 

(b)       The contractor agrees in a written amendment to the contract that the total contract price be reduced in an amount equal to the amount of the reduction in the loan sought by the applicant;

 

(c)       Detailed receipts of all materials purchased are provided to the bank and NMHC;

 

(d)       The materials purchased by the applicant were called for in the approved plans;

 

(e)       The suppliers were paid in full, any period for the filing of mechanics’ liens by the suppliers has passed with no mechanic liens showing or all mechanics’ liens for the materials have been released; and

 

(f)        The loan proposal itemized with particularity the materials needed so that it can clearly be determined how much credit to give the applicant for the direct purchases of materials.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-435  Co-ownership or Estate Ownership of Mortgaged Property

 

If the applicant is not the sole owner of the property to be mortgaged, it shall be surveyed prior to loan closing. The survey must determine the exact location, size and shape of the property to be mortgaged. The survey map must be approved by the Division of Lands and Survey and recorded at the Commonwealth Recorder’s Office. The applicant is wholly responsible for the cost of the survey. If the applicant is married, the applicant’s spouse must execute the mortgage and agree to subject his/her marital estate to the security interest. If the property is owned, in whole or in part, by a decedent, the estate of the decedent shall first be subject to a probate action and a final probate decree must be issued by the court, prior to loan closing.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-440  Surveys

 

The NMHC and the bank, in its discretion, may require a survey of the property upon which a principal residence will be constructed, purchased, improved or refinanced, if the last survey was performed more than two years prior to the date of application for the program loan. The survey must determine the exact location, size and shape of the property to be mortgaged. The survey work must be done by a registered surveyor, duly licensed in the Commonwealth. The survey map must be approved by the Division of Lands and Survey and recorded at the Commonwealth’s Recorder’s Office, prior to loan closing. The applicant is wholly responsible for the cost of the survey.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-445  Appraisals

 

Any appraisal required under the regulations in this chapter is subject to review by, and the approval of, the NMHC and the bank. The NMHC and the bank may require that an appraisal be obtained from an approved list of registered appraisers, duly licensed in the Commonwealth, maintained by the NMHC and the bank. Such a list may include the appraisers approved for listing by Federal Housing Administration.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-450  Criteria for Surveyors, Appraisers, Contractors and Architects

 

In order to develop a qualified list of surveyors, appraisers, contractors, and architects, the Board of Directors may solicit a statement of interest from the general public, and shall require these individuals or firms to:

 

(a)       Be duly licensed to do business in the Commonwealth;

 

(b)       Have been in business for the last three years immediately prior to being selected for a project under a home loan; except that for contractors whose principal place of business is on the island of Rota or Tinian, such contractors must have been in business for at least one year immediately prior to being selected for a project under this chapter; or have at least three years of experience as an appraiser, surveyor, architect, or contractor.

 

(c)       In the case of contractors, have constructed a minimum of six residences within the last ten years, one of which was worth at least eight thousand ($80,000.00)* dollars;

 

*So in original; see 18 Com. Reg. 14715 (Dec. 15, 1996).

 

(d)       Be able to provide a list of projects completed and a shod client list;

 

(e)       Be insured against legal liability;

 

(f)        All contractors must secure a performance bond as required under part 12, section 12.5* of this chapter; and

 

(g)       Any surveyor, appraiser, or architect who performs services under this chapter must be certified and licensed as required by Commonwealth law or as provided by the CNMI Board of Professional Licensing.

 

Modified, 1 CMC § 3806(c), (d), (e), (f), (g).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Commission Comment: The Commission inserted commas after the words “contractors” in the initial paragraph, “architect” in subsection (b), and “appraiser” in subsection (g) pursuant to 1 CMC § 3806(g). The starred cross-reference in subsection (f) is incorrect. The original regulations did not contain a part 12, section 12.5. However, the bond to which this section refers are required by §10.5, codified at § 100-40-720.

 

In subsection (e), the Commission deleted the word “and” to correct a manifest error.

 

Part 500 -       Credit Review

 

§ 100-40-501  Credit and Payment Ability

 

(a)       Creditworthiness. NMHC and the bank shall each be responsible for determining the creditworthiness of each applicant who applies to for a program loan. In making that determination, NMHC and the bank shall separately and independently take into consideration:

(1)       The applicant’s monthly debt payment to income ratio;

(2)       The applicant’s credit reputation; and,

(3)       Any other factor considered by a prudent lender.

 

(b)       Underwriting Guidelines: Monthly Mortgage Payment to Income Ratio.

As a general rule:

(1)       NMHC and the bank shall require that the applicant’s monthly mortgage payment does not exceed twenty-five percent of the applicant’s stable monthly income less any monthly debt payments.

(2)       As used in this section, the term “monthly mortgage payments” shall include, as applicable, the first mortgage payment, mortgage or life insurance payments, hazard and flood insurance payments, lease rents, property taxes, and monthly dues for common element/property charges and maintenance, but excluding dwelling unit utility charges for condominiums and property with similar dues and charges.

(3)       As used in this section, the term “monthly debt payment” shall include all monthly payments on installment debts having a remaining term of one year or more. Secondary financing for the subject property, mortgage loan payment for other properties, alimony, child support, and separate maintenance payments shall be considered installment debts, unless the obligations terminate within one year.

(4)       As used in this section, the term “stable monthly income” is the applicant’s gross monthly income from the applicant’s primary employment based earnings, which may include SSI, Social Security, retirement pension plus recognizable secondary income averaged for the past 12 months. Secondary income of the applicant, such as rental income, overtime or part time employment may be included in stable monthly income only if those items of secondary income are substantiated by written evidence of the applicant’s previous year’s earnings and that the continuation thereof is highly probable. Interest and dividends may be considered if substantiated by written evidence and averaged for the past two years. Rental income for the subject property may be considered if substantiated by written evidence.

(5)       If the applicant chooses to disclose income from alimony, child support, or maintenance payments, NMHC and the bank may consider these payments as income to the extent that they are likely to be consistently made. Factors which the lender may consider in making that determination include, but shall not be limited to:

(i)        Whether the payments are received pursuant to written agreement or court decree;

(ii)       The length of time the payments have been received;

(iii)      The regularity of payments;

(iv)      The availability of procedures to compel payment;

(v)       Whether full or partial payments have been made;

(vi)      The age of any child; and,

(vii)     The creditworthiness of the payor, including the credit history of the payor where available to the lender under the Fair Credit Reporting Act (15 USC §§1681-1681(t)) or other applicable laws. The lender shall submit to NMHC and the bank evidence to support their determination.

(6)       Factors such as expected pay increases under mandatory contract terms, education, training, technical skills, occupation, potential or expected pay increases, past employment history, and future employment expectations may be taken into account on a case-by-case basis in determining stable monthly income.

(7)       Income necessary to qualify the borrower from sources not substantiated in the credit report shall be verified in writing from a reliable source.

(8)       When the borrower is self-employed, the minimum acceptable documentation to verify income shall be the:

(i)        Profit and loss statements for the prior two years, which should include the last statement covering the year before the applicant’s date of application; and/or,

(ii)       Tax returns for the previous two years.

(9)       If the applicant does not qualify for the loan under the above credit underwriting guidelines described in this part, and upon recommendation by the participating lender, NMHC may consider making on a case-by-case basis, a loan with no more than two personal guarantors, endorsers or other co-signers. The guarantee, endorsement, or agreement shall not be qualified or limited in any manner. All credit underwriting standards shall apply to the credit evaluation of a guarantor, endorser, or co-signer. The monthly mortgage payment shall not exceed fifty percent of the combined stable monthly income of the applicant, the guarantor, endorser or co-signer less any monthly debt payments. In addition, the applicant’s monthly mortgage payment shall not exceed thirty percent of the applicant’s stable monthly income less any monthly debt payments.

(10)     If an applicant has guaranteed, endorsed or co-signed for an existing home loan, and is applying for his own home loan, the mortgage loan payment for both loans shall not exceed thirty percent of the applicants stable monthly income less any monthly debt payments.

 

(c)       Determination of Creditworthiness.

Should either NMHC or the bank determine that the applicant does not qualify to borrow the amount that the applicant has sought, the loan shall not be approved. The applicant may, however, apply for a lesser amount or address deficiencies noted in the application, and re-seek approval.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-505  Program Loan Amounts

 

(a)       No program loan secured by this loan agreement shall exceed the lesser of:

(1)       $200,000.00 in principal, or a lesser amount set by NMHC; or

(2)       Ninety percent of the lesser of the purchase price or the appraised value of the real estate and improvements mortgaged to secure it, up to a maximum of $200,000 in principal; or

(3)       Eighty percent of the appraised value of the unimproved real property plus the total construction costs, for either a construction loan or home improvement loan, up to a maximum amount of $200,000 in principal.

 

(b)       All loans shall be further secured by a life or mortgage protection insurance policy naming NMHC as the primary beneficiary to the extent of the borrower’s current balance remaining unpaid. The life or mortgage insurance protection shall be obtained from an insurer acceptable to the NMHC and the bank and shall insure or guarantee against the borrower default or loss sufficient, in case of death of the borrower, to cover the balance of the loan at the time of the borrower’s death. The life or mortgage protection insurance coverage shall remain in force until the loan is paid off. Proof of acceptable insurance must be submitted to NMHC prior to the closing of the home loan. The borrower shall pay for the premiums for the insurance. A copy of proof of payment of the insurance policy required under this section shall be submitted to NMHC after approval of the program loan and prior to the release of the loan proceeds.

 

(c)       Borrower shall maintain, at its expense mortgage protection or life insurance coverage for the total outstanding loan until the loan is paid in full. Should borrower fail to maintain such an insurance, then the NMHC and the bank may do so on behalf of and as agent of borrower, but the NMHC and the bank are not obligated to do so. Any and all amounts expended by the NMHC and the bank to procure and maintain such insurance shall be added onto the principal balance with interest accruing thereon at the same rate of interest applicable to the loan. NMHC shall be named as the loss payee.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

Part 600 -       Secondary Financing

 

§ 100-40-601  Secondary Financing

 

The borrower may not engage in secondary financing of the home subject to the home loan, except with the prior written consent of NMHC and the bank. The borrower may not execute or permit any further lien on the mortgaged real property. NMHC shall ensure that all home loans are subject to this restriction.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Part 700 -       Security for Program Loans

 

§ 100-40-701  Title Insurance Required

 

Each home loan shall be covered by a title insurance policy on the current standard American Land Title Association (ALTA) form issued by a title insurer licensed to do business in the Commonwealth of the Northern Mariana Islands prior to loan closing.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-705  Amount of Coverage

 

The amount of title insurance coverage shall be at least equal to or higher than the amount of the loan, and the primary beneficiary shall be NMHC to the extent of the balance of the loan. The policy shall insure against any mechanics’ and materialmen’s liens.

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-710  Other Insurance Coverage

 

The mortgaged property shall be covered for fire, typhoon and extended coverage insurance equal to the full replacement costs of the improvements on the mortgaged property without deduction for depreciation. NMHC shall be named as the primary loss payee on these policies.

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-715  Collateral Required

 

(a)       All program loans shall be secured by a first mortgage on unencumbered improved real property owned in fee simple or leased for a term in excess of two times the loan term.

 

(b)       All program loans shall be subject to a deed of trust, conveying the mortgaged interest (fee simple or leasehold) to NMHC.

 

(c)       For purposes of this section, “improved real property” is unencumbered notwithstanding the existence of:

(1)       Instruments reserving mineral, oil, timber, or similar rights, rights of way, sewer rights, rights in walls, and other easement rights;

(2)       Any liens for taxes or assessments not yet due;

(3)       Liens not delinquent for community recreation facilities or for the maintenance of community facilities;

(4)       Building restrictions or other restrictive covenants common to the community in which the property is located; and

(5)       Liens for service and maintenance of water rights where not delinquent.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-720  Construction Insurance or Performance and Payment Bond

 

The NMHC and the bank shall require that the contractor secure insurance coverage in an amount equal to the total construction loan to protect against builder’s risk, performance and payment bond, and workmen’s compensation during the entire term of the construction period. The effective date of the policies will commence on the date the notice to proceed is issued by the borrower. The contractor shall name the NMHC and the bank as the primary loss payee up to the amount of funds already disbursed, plus any applicable interest. Any proceeds recovered under the policies secured pursuant to this section in excess of the amount to be paid to the NMHC or the bank, shall be paid to the contractor.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Part 800 -       Limitation on Use and Enforcement

 

§ 100-40-801  Only Home Loans Permitted

 

The proceeds of this loan shall be used solely to secure home loans. In no event shall the funds be used to pay off or retire any indebtedness of NMHC, including without limitation all loans and advances made to NMHC and all of the obligations and liabilities of NMHC, whether now existing or hereafter incurred or created, whether voluntary or involuntary, whether due or not due, whether absolute or contingent, or whether incurred directly or acquired by NMHC by assignment or otherwise. Any deviation from the limited purpose for which this loan is made will constitute a material breach of the loan agreement, entitling MPLT to the return of the collateral account, all interest accrued, and to all proceeds or profits received by NMHC or any one else arising out of the improper use of the funds provided for under this agreement, plus all other rights and remedies that MPLT might have at equity and in law. Interest earned on the home loans above the interest due to lender may be used by NMHC to meet the administrative costs of the programs.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Part 900 -       Loan Charges and Fees

 

§ 100-40-901  Interest Rate

 

The Board shall set the interest rate for home loan mortgages. The minimum interest rate for the standard loan program and for the home improvement loan program shall be eight percent. The interest rate for the low income home loan program shall be a maximum of six percent.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-905  Allowable Loan Charges; Prepayment Penalties

 

(a)       The NMHC may require the borrower to pay all reasonable fees and charges ordinarily charged to and paid by a borrower for a loan, except:

(1)       For the loan origination fee, the lender may charge 0.5% of the loan amount for the very low income level; 1% of the loan amount for the low income level; and, 2% of the loan amount for the moderate income level.

(2)       At loan closing, the borrower will have to pay loan closing costs. The loan closing costs may be financed if the borrower demonstrates a need or a lack of funds thereof.

 

(b)       The NMHC and the lender may charge an application fee not to exceed $50.00 when the application is made. The application fee shall be credited towards the closing costs if the loan is made. If the loan fails approval, or the borrower cancels the loan application prior to approval, the deposit fee will not be returned to the applicant.

 

(c)       The lender may charge the borrower for services rendered as follows:

(1)       Credit Report Fee                               Actual cost

(2)       Title Insurance Fee                             Actual cost

(3)       Appraisal Report Fee                         Actual cost

(4)       Recordation Fee                                 Actual cost

(5)       Late Payment Fee                               Three (3%)

A late payment charge shall be assessed in the event an installment payment is not made within fifteen days after the due date of the installment at the rate of three percent of the amount of the installment due.

(6)       Returned check processing fee:         $25.00 per occurrence.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Part 1000 -     Term of Loans

 

§ 100-40-1001                        Repayment Period

 

The term of any home loan shall not exceed thirty years or any lesser period the Board may in its sole discretion determine to be appropriate upon consideration of the character and economic life of the property securing the loan. There shall be no minimum repayment period requirement.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-1005                        Interest Payment

 

Monthly interest installments based upon the disbursed amount(s) shall be due and payable on the first day of the month following the date of the execution of the note and on the first day of each month thereafter.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-1010                        Payment of Principal and Interest

 

The first monthly installments of the principal and interest will begin and be payable thirty days after all construction work is satisfactorily completed. Payments made will first be applied against accrued interest and then against the principal amount. If the borrower demonstrates a need or a lack of funds thereof, the loan closing costs may be financed and must be satisfied, before any payments will be applied against accrued interest and then against the principal amount.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Part 1100 -     Loan Closing

 

§ 100-40-1101                        Expiration of Commitment Letter

 

An approved client has thirty days from the date of their acknowledgment of the approval letter to close the loan.

 

Modified, 1 CMC § 3806(e).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-1105                        Pre-construction Conference

 

Before the commencement of the construction, an approved client with their construction inspector and their contractor, including NMHC, will hold a pre-construction conference to discuss the scope of work, payment schedule and the terms and conditions of the construction contract.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-1110                        Homeowner Counseling

 

Counseling can help families maintain ownership of their homes over the long term. A staff from NMHC will hold a home owner counseling session with a newly-approved client to discuss the terms and conditions of their approved loan and to educate homeowners about their ongoing responsibilities of home ownership.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Part 1200 -     Assignment and Transfer of Mortgaged Property

 

§ 100-40-1201                        Sale or Transfer of Mortgaged Property

 

(a)       Every mortgage shall contain a due-on-sale clause giving NMHC the right to require the borrower to make immediate payment in full of the entire indebtedness secured by the mortgage if the borrower sells, transfers, leases, subleases, or assigns all or part of the interest in real property securing a home loan, including any equitable or beneficial interest, without first obtaining NMHC’s prior written consent.

 

(b)       The due-on-sale clause shall be fully effective as to any sale, lease, transfer or assignment of interest in the mortgaged trust property by any trustee, or the sale, lease, transfer or assignment of the borrower’s equitable or beneficial interest in the property, without the prior written consent of NMHC.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-1205                        Consent by NMHC

 

(a)       NMHC’s consent shall be subject to the home loan program policy in effect on the date a request for consent is received by NMHC.

 

(b)       NMHC’s right to require the borrower or the trustee to make payment in full with respect to the sale, lease, transfer, or assignment shall be subject to any applicable laws which restrict or prohibit NMHC from its exercise of this right.

 

(c)       NMHC shall not unreasonably withhold its consent to the borrower’s sale, lease, transfer, or assignment of the mortgaged property by agreement of sale, provided:

(1)       NMHC’s mortgage priority is not in any way affected by the sale, lease, transfer or assignment;

(2)       The borrower has not been and is not in default of the loan or has not broken any promises made in obtaining the loan;

(3)       Has notified NMHC within a reasonable time of the proposed transaction;

(4)       The borrower agrees to pay or reimburse the lender, participating services, or NMHC, as the case may be, for all costs or expenses, including reasonable attorney’s fees and consent fees incurred to review the proposed transaction and draft documents;

(5)       The borrower agrees to acknowledge that NMHC shall not consent to any assumption of the loan or to any further sale, lease, transfer, or assignment of the mortgaged property;

(6)       The borrower agrees to acknowledge that as a condition for NMHC’s consent, the buyer or lessee shall sign a certification of occupancy in which the lessee or buyer represents and agrees to occupy and use the mortgaged property as a principal home for the entire term of the loan;

(7)       The borrower agrees to sign the documents as may be necessary, including a loan modification agreement;

(8)       The borrower agrees to give assurances as the participating lender or services may require to protect NMHC’s lien priority in the mortgaged property;

(9)       The borrower agrees to pay a higher rate of interest to be set by the Board, in its sole discretion, should NMHC’s risk of loss increase as a result of the transfer.

 

(d)       If any of the conditions described in subsection (c) of this section require the borrower to pay an interest rate or finance charge which would exceed the highest rate permitted by law, then the borrower’s obligation to pay interest or finance charge shall be limited to the highest rate permitted by law, so that the borrower is not obligated to pay any interest or finance charge which would result in the payment of interest or finance charge in excess of the limit so permitted.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Commission Comment: The Commission inserted commas after the word “transfer” in subsections (b), (c), and (c)(5) pursuant to 1 CMC § 3806(g).

 

Part 1300 -     Assumption and Early Pay off of Loan

 

§ 100-40-1301                        Assumption of Loan; Prohibition

 

No assumption shall be allowed of any loan without the prior pre-approval of the Board, and conditioned on the qualification of the party seeking to assume the loan to have qualified as a new applicant.

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-1305                        Early Pay Off

 

There shall be no prohibition, fee, charge, or penalty for the early pay off of the home loan.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Commission Comment: The Commission inserted a comma after the word “charge” pursuant to 1 CMC § 3806(g).

 

§ 100-40-1310                        Death of Borrower

 

Upon the death of the borrower, the entire unpaid balance of the loan shall be immediately due and payable. The Board may allow assumption of the loan by the heirs of the borrower if a final decree in the probate of the borrower identifies the heirs and approves distribution to them of the improved property and the loan, and if the heirs themselves would qualify as a new applicant for the loan.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Part 1400 -     Sanctions and Foreclosure

 

§ 100-40-1401                        Sanctions

 

(a)       The applicant shall sign the application for a mortgage loan. By doing so, the applicant shall be considered to have verified the truth of all statements made in the application.

 

(b)       If the applicant or borrower makes any false or untrue statement, intentionally or otherwise, for a mortgage loan, NMHC may, after providing the opportunity for a hearing in accordance with the Administrative Procedure Act, 1 CMC §§ 9108, et seq., determine that:

(1)       The applicant or borrower shall not be eligible for a home loan for a period up to ten years after the date NMHC actually learns or discovers the false or untrue statement.

(2)       If NMHC has already made the mortgage loan to the applicant or borrower, such applicant or borrower shall not be eligible for another mortgage loan for ten years, and the loan already made by NMHC shall immediately become due and payable in full, for which NMHC shall demand full payment thereof.

 

(c)       The borrower shall be required to make immediate payment in full of all sums secured by the mortgage if the borrower fails to fulfill any promise for a mortgage or with respect to a mortgage loan or makes or has made false statement(s) to qualify or be eligible for a mortgage loan or with respect to a mortgage loan under the home loan program.

 

Modified, 1 CMC § 3806(e), (f), (g).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Commission Comment: In subsection (b), the Commission changed “Procedures” to “Procedure” to correct a manifest error.

 

§ 100-40-1405                        Foreclosure

 

NMHC shall comply with such foreclosure restrictions as are established by applicable law.

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-1410                        Foreclosure of Home Loans

 

NMHC shall comply with the following:

 

(a)       When an account is three or more payments delinquent or has otherwise become a service problem, the bank will provide a formal notice to NMHC. Upon being notified, NMHC has the option to pay the account to current and work directly with the applicant(s) in an effort to resolve the problem. In doing so, the applicant(s) will be advised, if applicable, of the possibility of moratorium, and provisions of work out agreement. If such counseling fails, NMHC will, with the continuing assistance of the bank, work toward resolving the problems by such other means as assisting the applicant(s) to enter into agreements with the bank to sell or transfer the property to another eligible home loan applicant, or to transfer the property under eligible terms.

 

(b)       If a satisfactory resolution is not reached, the account will be accelerated and after all appeals have been exhausted and completed with the bank, NMHC will be notified by a formal demand letter of the action taken. The formal demand letter must be hand delivered and acknowledged by the NMHC main office located in Garapan, Saipan. Within 90 days of receipt of the formal demand letter, the debt will be paid in full by NMHC. The bank will then assign the promissory note and the deed of trust to NMHC for foreclosure action.

 

(c)       The NMHC shall comply with such foreclosure restrictions as are established by applicable law.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Part 1500 -     Minimum Standards for Professionals

 

§ 100-40-1501                        Pre-qualified List

 

All professionals who seek to be paid out of proceeds from program loans, or provide their services in connection with the loan approval process, including without limitation, accountants, architects, attorneys, appraisers, contractors, engineers, insurers, lenders, and surveyors, must meet certain minimum requirements of qualification before payment for their services, or reliance on their opinions will be permitted. The borrower shall cause to be published a request for proposals from professionals, setting forth the minimum requirements, and from the responses, create a pre-qualified list. At any time, professionals may submit their qualifications and request inclusion on the list.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Commission Comment: The Commission inserted a comma after the word “lenders” pursuant to 1 CMC § 3806(g).

 

§ 100-40-1505                        Universal Minimum Standards

 

All professionals must meet the following minimum requirements, plus what ever* additional requirements the borrower may impose, before they may submit themselves for inclusion on the pre-qualified list:

 

(a)       Commonwealth business license having been issued at least two years in advance of the request for inclusion on the pre-qualified list;

 

(b)       Professional licensing from the relevant professional society, issued at least two years in advance of submission to be included in the pre-qualified list;

 

(c)       A client list of customers from the Commonwealth who can attest to the quality of the professional’s work; and

 

(d)       Other proof of the ability of the professional to perform.

 

* So in original.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-1510                        Limitation on Applicant/Borrower Selection of Contractors; Mandatory Criteria for Contractors to Participate/Construct/Rehabilitate Homes Financed by NMHC

 

(a)       Borrowers may only contract, for the construction and/or rehabilitation of a home, to be financed in whole, or in part, by NMHC, with a construction contractor that has been approved by NMHC.

 

(b)       In addition to the universal minimum requirements, plus additional requirements that may be imposed by the borrower, all general contractors who seek to perform work on residences that will be paid for from the proceeds of program loans must:

(1)       Have constructed at least six residences within the last ten years;

(2)       Have constructed a residence worth at least $80,000.00;

(3)       Have bonding for at least three months salary for all contract workers, as well as proof of workers compensation insurance, and bonding that would satisfy the requirements of § 100-40-420 of this chapter;

(4)       Be able to provide a list of projects completed and a client list;

(5)       The NMHC Board and the bank may waive the requirements set forth in subsections (b)(1), (b)(2), and (b)(4)* of this section for good cause, and if to do so is appropriate under the circumstances; and

(6)       All contractors must secure a performance and payment bond, builder’s risk and workmen’s compensation.

 

(c)       To obtain NMHC approval to participate/construct/rehabilitate homes that will be paid from the proceeds of program loans, a contractor must submit the following documents:

(1)       Most current financial statement and a copy of BGR for the last two years;

(2)       Statement of experience in and length of existence of construction business;

(3)       List of on going/past projects including location and mount of project;

(4)       Certificate of compliance issued by the Division of Revenue and Tax;

(5)       Copy of workman’s compensation policy;

(6)       Copy of valid business license;

(7)       Name of insurance company currently dealing with contractor for coverage on hazards, bonds, etc.;

(8)       Articles of incorporation and by-laws of the company, if applicable; and

(9)       Copy of most recent annual report, if applicable.

 

(d)       In addition to supplying NMHC with the above referenced documents, the contractor must certify in writing that:

(1)       It has supplied the above requested documents;

(2)       It has no pending complaints or disputes from clients on projects that it is currently working on;

(3)       There are no pending complaints, cases, or liens, filed against contractor at the Division of Labor, Superior Court, or the US. District Court, for unfair labor practices, breach of contract, non payment of wages, or any other ground;

(4)       There are no claims or unpaid obligations on materials purchased by contractor that are past due; and

(5)       Contractor is able to obtain the necessary bonding required in order for NMHC to close the applicable loan.

 

(e)       If a contractor has been previously approved by NMHC, and any of the information required to be submitted above has changed, then the contractor must advise NMHC of the same and submit documents explaining the same. In addition, an approved contractor, on an annual basis, must establish that it has renewed its business license, worker’s compensation insurance coverage, any other applicable insurance, and paid taxes for the previous year.

 

(f)        Should an approved contractor:

(1)       Have a claim filed on a bond issued to them;

(2)       Have a lien filed against them for failure to pay a construction related debt;

(3)       Have a determination issued by the CNMI Department of Labor and Immigration, Division of Labor, that the contractor has failed to pay wages to its employees in compliance with applicable law, or otherwise violated any law pertaining to its employees;

(4)       Have a complaint filed against it by the US Department of Labor, IRS, or other government agency;

(5)       Fail to renew their business license;

(6)       Be unable to obtain bonding or necessary insurance;

(7)       Be issued a notice of deficiency or other notice, that it has an outstanding obligation for taxes due and owing to either the CNMI, federal, or other governmental body;

then the Executive Director, in consultation with the manager, Mortgage Credit Division, shall bar/suspend the contractor from working, in any manner, on a home financed by NMHC, or financed under the NMHC/MPLT Home Loan Program, until such time as the contractor provides assurances, adequate to NMHC in its sole discretion, that the contractor is financially capable of constructing the home in question, free and clear of any and all liens or encumbrances. The contractor will further be limited to working on NMHC houses, such that the contractor must be approved on a project by project basis, until such time as the contractor has remedied whichever of the above referenced criteria is applicable to it.

 

(g)       A decision by the management, to bar or suspend a contractor may be appealed to NMHC’s Board of Directors. All appeals shall be governed by the APA [1 CMC §§ 9101, et seq.].

 

(h)       If a contractor has been barred/suspended, then regardless of the result of an appeal, they may reapply for NMHC approval, sixty days after their being barred/suspended, and may reapply every sixty days thereafter.

 

* See Commission Comment.

 

Modified, 1 CMC § 3806(c), (d), (e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17588 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17158 (Apr. 20, 2000); Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (h).

 

The 2000 amendments added new subsections (a) and (c) through (h) and re-designated subsection (b).

 

The starred reference to subsections (b)(1), (b)(2), and (b)(4) was written as “subparagraphs (a), (b) and (d)” in the original regulation, referring to what the Commission re-designated as subsections (b)(1), (b)(2), and (b)(4). This section was initially erroneously codified as “subsections (a), (b) and (d).”

 

Executive Order 03-01 (effective May 9, 2003), the “Department of Labor and Immigration Reorganization Plan of 2003,” renamed the Department of Labor and Immigration to the Department of Labor.

 

§ 100-40-1515                        Liquidated Damage Assessments for NMHC Financed Construction Projects

 

All contracts for home construction or rehabilitation, funded in whole, or in part, by NMHC, must contain a provision for mandatory liquidated damages as follows:

 

Construction Amount

Liquidated Damages (Per Day)

$ 1-25,000

$100.00

25,001 - 50,000

$125.00

50,001 - 75,000

$150.00

75,001-100,000

$175.00

100,001 and above

$200.00

 

History: Amdts Adopted 22 Com. Reg. 17588 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17158 (Apr. 20, 2000).

 

Part 1600 -     Proof of Occupancy

 

§ 100-40-1601                        Affidavit of Occupancy

 

Consistent with the purpose and objectives of the home loan program, every applicant who will reside on the mortgaged property applying for a home loan shall file with NMHC an affidavit or declaration under penalty of perjury stating that:

 

(a)       The applicant will occupy the mortgaged property as the applicant’s principal place of abode within forty-five days after the date of closing of the loan where an existing structure of residence is acquired, or within forty-five days after notice from the contractor that the residence is ready for occupancy;

 

(b)       The applicant will occupy the residence as a principal place of abode continuously for the entire loan term. In the event the applicant sells, leases, rents, assigns, or conveys any interest to the property for any period exceeding one year, including options and rights of renewal, then all indebtedness owing by and chargeable to the applicant shall become immediately due and payable in accordance with the terms of this chapter, unless the Board agrees to allow assumption of the loan by the new owner, or transfer of the loan security to the borrower’s new residence. In no event will assumption or transfer be allowed unless the assuming party or the new security would have qualified itself in the first instance for a loan under the applicable program;

 

(c)       If the applicant fails to comply with this section, any and all indebtedness owning by and chargeable to the applicant by way of a mortgage loan made on the basis of the application filed in connection with the loan shall become immediately due and payable in full, unless for good cause shown, the period to initially occupy the premises is extended by NMHC in writing, or the failure of the applicant to remain on the premises for the required minimum number of years is waived.

 

Modified, 1 CMC § 3806(d), (e), (f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b). The Commission inserted a comma after the word “assigns” in subsection (b) pursuant to 1 CMC § 3806(g).

 

Part 1700 -     Reconsideration of Loan Application

 

§ 100-40-1701                        Request for Review of NMHC Rejection

 

(a)       If an application for a loan is not approved by NMHC, the applicant may request the Board, in writing, to review and reconsider any decision or determination relating to the application.

 

(b)       A borrower under an existing home loan may request the Board to review or reconsider any decision or determination relating to the loan.

 

(c)       The request for review and reconsideration shall be in writing, and shall be filed with NMHC within thirty days after receipt of the notice of disapproval, and shall contain a statement of the facts and include copies of all documents upon which the applicant or borrower relies in support of the request for review. The Board may appoint a hearing officer from among its members to conduct such a review.

 

(d)       The Board may request the submission of additional information or documents and may request the applicant or borrower to appear at a specified place, date, and time to submit oral testimony in support of the request for review.

 

(e)       All requests for review shall be governed by the Administrative Procedure Act (APA) [1 CMC §§ 9101, et seq.].

 

Modified, 1 CMC § 3806(e), (f), (g).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Commission Comment: In subsection (e), the Commission changed “Administration” to “Administrative” and “Procedures” to “Procedure” to correct manifest errors. The Commission inserted a comma after the word “date” in subsection (d) pursuant to 1 CMC § 3806(g).

 

§ 100-40-1705                        Request for Review of Lender Rejection

 

Where the applicant is rejected by the participating lender and not NMHC, no review of the rejection shall be available to the applicant. However, NMHC may submit the application to another participating lender at the applicant’s request, and if the other participating lender approves the application, the loan may still be made.

 

Modified, 1 CMC § 3806(f).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Part 1800 -     Miscellaneous Provisions

 

§ 100-40-1801                        Headings

 

Headings or titles of sections contained herein are for convenience and shall not be used in construction or application of any section contained herein.

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-1805                        Severability

 

If any part or section of the regulations in this chapter are found to be invalid by a court of competent jurisdiction, all valid portions that are severable hall remain in effect. If a part or section hereof is invalid in one or more of its applications, that part remains in effect in all valid applications that are severable from its invalid applications.

 

Modified, 1 CMC § 3806(d).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

§ 100-40-1810                        Effective Date

 

The effective date of the regulations in this chapter shall be pursuant to 1 CMC § 9105(b).

 

Modified, 1 CMC § 3806(d).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).


 

 

 

Appendix A

Standard Home Loan Program

 

A.        Maximum Loan Amount - _________ ($_______).

 

B.        Applicable Interest Rate - _______ percent (____%).

 

C.        Applicable Uses:

1.         Home purchase.

2.         Home construction.

3.         Existing home loan refinance.

 

D.        Qualifying Criteria:

1.         CNMI Resident of Northern Mariana Islands descent.

2.         Creditworthiness (loan payments may not exceed _____ percent (_____ %) of disposable income).

a.         Ownership in fee simple; or

b.         Proposed ownership in fee simple of the property.

 

E.         Equity Required:

1.         Home Purchase-payment by the Borrower equivalent to at least ___________ percent (_____ %) of the total purchase price.

2.         Home Construction:

a.         Equity in the unimproved land of at least _________ percent (_____%) of the total land value (except where Homestead property is used); and

b.         Payment by the Borrower toward the construction costs so that the total equity upon completion of the home is equal to ________ percent (_____%).

 

F.         Special Restriction: None

1.         Married with children.

2.         Single Parent with children.

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).


 

 

 

Appendix B

Low Income Home Loan Program

 

A.        Maximum Loan Amount - _________ ($_______).

 

B.        Applicable Interest Rate - Six percent (6%).

 

C.        Applicable Uses:

1.         Home purchase.

2.         Home construction.

3.         Existing home loan refinance.

 

D.        Qualifying Criteria:

1.         CNMI Resident of Northern Mariana Islands descent.

2.         Creditworthiness (loan payments may not exceed ___________ percent (_____%) of disposable income)

3.         (a)       Ownership in fee simple; or

            (b)       Proposed ownership in fee simple of the property.

 

E.         Equity Required:

1.         Home Purchase - payment by the Borrower equivalents to at least _______ percent (_____%) of the total purchase price.

2.         Home Construction:

a.         Equity in the unimproved land of at least __________ percent (_____ %) of the total land value (except where homestead property is used); and

b.         Payment by the Borrower toward the construction costs so that the total equity upon completion of the home is equal to percent (_____%).

 

F.         Special Restrictions:

1.         Combined family income not in excess of ________ dollars ($___________) per year.

2.         Married with children.

3.         Single Parent with children.

 

Modified, 1 CMC § 3806(g).

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).

 

Commission Comment: In section E(1), the Commission changed “he” to “the” to correct a manifest error.


 

 

Appendix C

Home Improvement Loan Program

 

A.        Maximum Loan Amount - ___________ ($______).

 

B.        Applicable Interest Rate - ______percent (____ %).

 

C.        Applicable Uses:

1.         Room additions.

2.         Replacement of tin roof.

 

D.        Qualifying Criteria:

1.         CNMI Resident of the Northern Mariana Islands descent.

2.         Creditworthiness (loan payments may not exceed _________ percent (_____ %) of disposable income).

3.         (a)       Ownership in fee simple; or

            (b)       Proposed ownership in fee simple of the property.

 

E.         Equity Required:

1.         Property including home must be at least _________ percent (_____ %) paid for.

2.         Value of improvement to be financed must not exceed __________ percent (_____ %) of total value of existing improved property.

 

F.         Special Restrictions: None

 

History: Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).


 

 

 

Appendix D

 

Income Schedule

 

Size

Low

Moderate

01-person

18,150

49,850

02-person

22,600

56,950

03-person

27,050

64,050

04-person

31,500

71,200

05-person

35,050

76,900

06-person

38,600

82,600

07-person

42,150

88,300

08-person

45,700

94,000

09-person

49,300

99,700

10-person

52,850

105,400

11-person

56,400

111,050

12-person

60,000

116,750

13-person

63,500

122,450

14-person

67,100

128,150

15-person

70,650

133,850

 

History: Amdts Adopted 20 Com. Reg. 16266 (Oct. 15, 1998); Amdts Proposed 20 Com. Reg. 16075 (July 15, 1998); Adopted 20 Com. Reg. 16072 (July 15, 1998); Adopted 19 Com. Reg. 15152 (Feb. 15, 1997); Proposed 18 Com. Reg. 14689 (Dec. 15, 1996).


 

CHAPTER 100-50

NMHC PERSONNEL MANUAL

 


Part 001          General Provisions

§ 100-50-001  Personnel Committee

 

Part 100          Employment

§ 100-50-101  Coverage

§ 100-50-105  Selection Process

§ 100-50-110  Types of Appointments

§ 100-50-115  Discipline

§ 100-50-120  Adverse Action Procedure

§ 100-50-125  Resignation

 

Part 200          Remuneration

§ 100-50-201  Time and Attendance Record

§ 100-50-205  Payment of Salary

§ 100-50-210  Salary Raise

§ 100-50-215  Performance Bonuses

§ 100-50-220  Overtime

§ 100-50-225  Premium Pay

§ 100-50-230  Travel

§ 100-50-235  Outside Gainful Employment

§ 100-50-240  Severance Pay

 

Part 300          Personnel Policies

§ 100-50-301  Open Door Procedures

§ 100-50-305  Grievance Procedure

§ 100-50-310  Annual Evaluations

§ 100-50-315  Non-related Activities

§ 100-50-320  Solicitation and Distribution

§ 100-50-325  Drug Free Work Place

§ 100-50-330  Work Safety

§ 100-50-335  Company Vehicles

§ 100-50-340  Equal Opportunity Employer

§ 100-50-345  Changes in Personal Information

§ 100-50-350  Working with the Media

§ 100-50-355  Harassment

§ 100-50-360  Punctuality and Attendance

§ 100-50-365  Standards of Conduct

§ 100-50-370  Other NMHC Policies and Practices

 

Part 400          Employee Benefits

§ 100-50-401  Eligibility for Benefits

§ 100-50-402  Annual Leave

§ 100-50-404  Sick Leave

§ 100-50-406  Maternity Leave

§ 100-50-408  Leave under the Family and Medical Leave Act of 1993 (FMLA)

§ 100-50-410  Military Leave

§ 100-50-412  Election Day Leave

§ 100-50-414  Administrative Leave

§ 100-50-416  Jury Duty

§ 100-50-418  Death in the Immediate Family

§ 100-50-420  Leave Advance

§ 100-50-422  Leave of Absence

§ 100-50-424  Training and Education Leave

§ 100-50-426  Leave Without Pay in Extension of Annual or Sick Leave

§ 100-50-428  Disposition of Leave Upon Separation

§ 100-50-430  Holidays

§ 100-50-432  Training

§ 100-50-434  Training Outside the Commonwealth

§ 100-50-436  Payment of Training Costs

§ 100-50-438  Training Costs Defined

§ 100-50-440  Medical and Life Insurance

§ 100-50-442  Workers’ Compensation Insurance

 

Part 500          Miscellaneous Provisions

§ 100-50-501  Rules governing Conflict of Interest and Nepotism

§ 100-50-505  Internal Operating Procedures

§ 100-50-510  Promulgation of Personnel Policies and Procedures

§ 100-50-515  Applicability

§ 100-50-520  Receipt & Acknowledgment of NMHC Handbook

§ 100-50-525  Amendments and Modifications


 

 

Chapter Authority: 2 CMC § 4433(t); Executive Order 94-3 § 407.

 

Chapter History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: 2 CMC § 4411 creates the Mariana Islands Housing Authority (MIHA) as a public corporation within the Commonwealth government, charged with meeting the need for decent, safe and sanitary housing for persons of low and moderate income in the Commonwealth. See 2 CMC §§ 4411-4457. 2 CMC § 4433 sets forth the powers of MIHA, including the general power to do any and all things necessary or convenient to effectuate the purposes of the act and to carry out any of the powers granted by the act. See 2 CMC § 4433(t).

 

Executive Order 94-3 (effective August 23, 1994) reorganized the Commonwealth government executive branch, changed agency names and official titles and effected numerous other revisions. According to Executive Order 94-3 § 407:

 

Section 407. Marianas Housing Authority.

(a)          The Marianas Housing Authority is abolished and its functions transferred to a Division of Housing within the Commonwealth Development Authority, which shall have at its head a Director of Housing.

(b)          Any bond or other indebtedness of the Mariana Island Housing Authority shall be assumed by the Commonwealth government, but only upon such terms and security as shall have been agreed to previously by the Authority. The full faith and credit of the Commonwealth shall to secure such bond or other indebtedness, except as may have been pledged prior to such assumption or as otherwise provided by law.

 

The full text of Executive Order 94-3 is set forth in the commission comment to 1 CMC § 2001.

 

The Northern Marianas Housing Corporation is a subsidiary corporation of the Commonwealth Development Authority and the successor to MIHA under Executive Order 94-3. See 2 CMC § 4482(d).

 

The MIHA first promulgated Personnel Rules and Regulations in 1986. See 8 Com. Reg. 4828 (Dec. 16, 1986); 8 Com. Reg. 4735 (Nov. 17, 1986). NMHC’s 1997 Personnel Manual, codified in this chapter, completely revised and republished the personnel rules and regulations for the corporation.

 

Part 001 -       General Provisions

 

§ 100-50-001  Personnel Committee

 

The Personnel Committee is composed of such members of the Board as are appointed thereto by the Chairman of the Board. The Chairman of the Board appoints the Chairman of the Committee. The Personnel Committee meets at the direction of its Chairman or upon the request of any of its members and has such powers and authority as are set forth in the Personnel Manual, codified in this chapter.

 

Modified, 1 CMC § 3806(d).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Part 100 -       Employment

 

§ 100-50-101  Coverage

 

(a)       This manual applies to all employees and positions in the Northern Marianas Housing Corporation (NMHC), except for the following employees and unless otherwise noted as set forth below:

(1)       Corporate Director;

(2)       Consultants of the corporation, consultants of the corporation shall be announced by the Corporate Director, but the selection shall be made by the Board of Directors, taking into account all relevant and material factors, including the recommendation of the Corporate Director. Retention with the corporation of such consultants shall be governed by contracts executed by the consultant and the corporation.

(3)       The position of the Corporate Director shall be announced and selected by the Board of Directors.

 

(b)       Removal of the Executive Director.

The Corporate Director serves at the pleasure of the NMHC Board of Directors and maybe removed by the Board with or without case. The Corporate Director and those exempted under this section of this chapter may be removed or dismissed by affirmative vote of a majority of the total authorized Board membership in a regular or a special meeting. If the Corporate Director is to be removed for cause, they must be provided with a full accounting of the reasons for such dismissal, and provided the opportunity to be heard in response at the same meeting before a final vote is taken on dismissal.

 

Modified, 1 CMC § 3806(d), (f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

§ 100-50-105  Selection Process

 

(a)       Authority of Corporate Director

The Corporate Director, or their designee, has the authority to select and appoint all employees of NMHC, except those positions specifically excluded under NMHC’s enabling statute, those positions requiring a written contract, and those excluded under this chapter.

 

(b)       Procedure for Selection

(1)       Whenever a new position is created by the Board, or whenever a vacancy occurs in an existing position, the Corporate Director, or their designee, shall interview and select an individual in accordance with the Personnel Service System Rules and Regulations (PSSRR) [NMIAC, title 10, chapter 20.2].

(2)       For the retention of consultants as approved by the Board, the Corporate Director, or designee, shall, if necessary, announce the position in accordance with the applicable procurement regulations, and shall submit to the Board no later than one week after the initial procurement process has been completed, all submissions, plus a summary of the interviews with his/her recommendation of the consultant best suited for the position. The Board shall make or reject the appointment no later than the second regular meeting after submission to the Board.

 

Modified, 1 CMC § 3806(d), (e), (f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-110  Types of Appointments

 

Appointments in NMHC are placed in one of the following classes:

 

(a)       Probationary Appointment. An appointment in which the appointee is selected from an eligible list resulting from an open examination to fill a permanent position. The appointee shall serve a period of not less than six and not more than twelve months from the beginning of the probationary appointment and shall demonstrate the capacity for 26 consecutive weeks of satisfactory performance before being eligible to be convened to a permanent appointment. Separations during a probationary appointment are not processed under adverse action procedures or reduction-in-force (RIF).

 

(b)       Permanent Appointment. An employee who has been appointed to a permanent position and who has satisfactorily completed a probationary period is entitled to the full benefits of the regulations in this chapter. Permanent appointment may be made to less than full-time positions with a regularly scheduled tour of duty.

 

(c)       Limited-term Appointment. A limited-term appointment is one in which the appointee is appointed for a period of not more than one year. An employee serving a limited-term may serve in either a full-time or part-time position. Any person given a limited-term appointment must meet the minimum qualifications for the class of position to which appointed. The Corporate Director shall justify, in writing, to the Director of Personnel Management, requests for new limited-term appointments following expiration of one year appointments. Limited-term appointments may be converted to permanent appointments at the end of one year, if the position has been found to be permanent, provided that the employee has demonstrated the capacity for 52 consecutive weeks of satisfactory performance.

 

(d)       Provisional Appointment. A provisional appointment is usually limited to ninety days and is used to fill a permanent position in the absence of an appropriate eligible list. The Director of Personnel Management may authorize extension of a provisional appointment beyond ninety days for a maximum of one hundred and eighty days when the examination fails to make available an adequate number of qualified candidates. Any person given a provisional appointment must meet the minimum qualifications for the class of position to which appointed.

 

(e)       Emergency Appointment.

(1)       An emergency appointment may be authorized by the Director of Personnel Management for any one of the following purposes:

(i)        When a serious emergency exists; or

(ii)       To prevent stoppage of essential public services.

(2)       An emergency appointment shall be limited to thirty calendar days but may be extended by the Director of Personnel Management, if the Corporate Director so requests in writing, when the cause is determined to be good and sufficient, and the extension does not exceed twenty additional working days.

(3)       All persons receiving emergency appointments shall be required to meet the minimum qualification requirements of the class of position to which appointed.

 

(f)        Temporary Appointment. A temporary appointment is utilized when it is anticipated that an employee will temporarily occupy a position for a period in excess of three months. An employee can be temporarily promoted only if the employee meets the qualification standards of the new position. See PSSRR Part IV.B6 [NMIAC § 10-20.2-320].

 

(g)       “Acting” Appointment. An “acting” appointment is the official written designation that an employee will act for a period of up to thirty days in place of a supervisor. When the supervisor’s absence exceeds the initial thirty day period, a new designation shall be made for an additional thirty days. The thirty day renewal of an “acting” assignment may be repeated until the supervisor returns to the position.

 

Modified, 1 CMC § 3806(d), (e), (f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs of subsection (e) were not designated. The Commission designated subsections (e)(1) through (e)(3).

 

§ 100-50-115  Discipline

 

(a)       Grounds for Discipline

(1)       Employees (other than probationary employees) may be demoted, suspended, or terminated for cause, which shall include but not be limited to the following;

(i)        Non-performance of duties;

(ii)       Incompetence (inexcusable failure to discharge duties in a prompt and efficient manner);

(iii)      Insubordination;

(iv)      Breach of trust;

(v)       Excessive tardiness or absenteeism.

(2)       An employee shall receive written notification of conduct warranting discipline, except where the employee’s conduct is a danger to himself/herself, the public, or other employees, or the corporation’s property, or in the case of insubordination or breach of trust, and shall be given a reasonable amount of time to correct his/her conduct before receiving any of the sanctions specified in this section.

 

(b)       Types of Discipline

(1)       Admonishment;

(2)       Reprimand;

(3)       Furlough;

(4)       Suspension not to exceed three working days; and

(5)       Suspension for more than three working days.

(6)       Demotion. An employee may be demoted in rank and/or pay by the Corporate Director.

(7)       Termination.

 

Modified, 1 CMC § 3806(e), (f), (g).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs of subsection (a) were not designated. The Commission designated subsections (a)(1) and (a)(2).

 

In subsection (b)(7), the Commission inserted the final period.

 

§ 100-50-120  Adverse Action Procedure

 

Any adverse action taken against an employee shall be governed by the applicable section of the PSSRR [NMIAC, title 10, subchapter 20.2].

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-125  Resignation

 

(a)       When an employee decides to resign from NMHC, he/she must prepare a letter of resignation, containing the effective date and reason for leaving. This letter should be submitted to the Corporate Director not less than two weeks before he/she intends to leave NMHC.

 

(b)       The Corporate Director or designee is responsible for informing the employee his/her obligations to NMHC and for securing the return of all NMHC property, including keys and identification cards.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

Part 200 -       Remuneration

 

§ 100-50-201  Time and Attendance Record

 

All NMHC employees shall complete a time and attendance record. The Corporate Director or his designee shall review and approve time and attendance records. Pay periods shall be identical with those of the government of the Northern Mariana Islands. Except as designated by the Corporate Director, the attendance record shall be based on time-clock records. Executive, administrative and professional employees as designated by the Corporate Director, shall not use the time clock.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-205  Payment of Salary

 

All NMHC employees shall be paid within two weeks after the end of every pay period.

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-210  Salary Raise

 

An employee is eligible for a salary raise at any time after his/her probationary period of employment ends, and after the expiration of not less than six months from the date of his/her previous salary raise; provided, however, that no salary raises shall be granted except for sustained above-averaged* performance. The Corporate Director will decide all raises and will consider the employee’s annual evaluation in doing so.

 

* So in original.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-215  Performance Bonuses

 

An employee may be considered for a lump-sum cash award for superior performance. A superior performance award is granted for performance exceeding job requirements and involving a contribution so superior or meritorious as to warrant special recognition. Bonuses must be pursuant to a program approved by the Board of Directors.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-220  Overtime

 

(a)       The NMHC workweek for full-time permanent employees is normally eight hours per day, five days per week. Employees may, however, be asked by the Corporate Director or, in an emergency, their supervisor, to work overtime. Other arrangements may be made for a different workweek and work day.

 

(b)       All employees eligible for overtime compensation shall be compensated at the rate of one and one-half hours’ pay for an hour actually worked in excess of forty hours per week.

 

(c)       Compensation shall be computed at 1.5 times base salary. Overtime compensation will be computed in the manner determined by the Northern Marianas Housing Corporation Personnel Committee. Employees are advised that computing overtime and determining an employee’s base salary can sometimes be very difficult. This is in part due to occasional changes made to the Fair Labor Standards Act (FLSA) as well as the result of new court cases interpreting the FLSA. If an employee has a question on this matter, they are urged to contact the Corporate Director.

 

Modified, 1 CMC § 3806(e), (f), (g).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

In subsection (b), the Commission corrected the spelling of “computed.”

 

§ 100-50-225  Premium Pay

 

(a)       Hazardous Pay

(1)       All employees whose occupation involves unusual and extreme hazards to their health and safety shall be paid a differential of twenty-five percent of their base salary rate. All requests for hazardous pay must be justified by the requesting official(s).

(2)       Exposure to the particular unusual and extreme hazard must constitute a reasonable proportion of the employee’s time on the job so that it is clearly recognizable that the position is hazardous. Hazard may occur for a brief period of time, but collectively measured over a period of time, e.g., one day, may provide a valid basis for recognition of the hazard. Conversely, clear and sustained exposure to an unusual and extreme hazard is more readily recognizable and measurable.

 

(b)       Night Work

A fifteen percent night work differential shall be added to the employee’s base salary rate if the employee’s regular work schedule is between 4:30 p.m. and 7:30 a.m. Payment will be made only for actual hours scheduled and worked between 4:30 p.m. and 7:30 a.m. If an employee whose regular hours of duty included scheduled hours during the period of 4:30 p.m. and 7:30 a.m. is absent and does not actually perform work, the employee will not receive night differential for the hours involved even if the employee is on an approved leave.

 

(c)       Typhoon Emergency

Employees who are required by NMHC to work in a location and during a period of time in which a typhoon or tropical storm emergency has been declared by the Governor, and during which other government employees are released as a result of such condition, shall for the employee’s regularly scheduled work hours, receive pay for administrative leave and shall also receive pay for the actual hours worked. For all other hours such employees are required to work during said period, compensation shall be at the rate of two and one-half times the base salary rate. Employees being paid this rate are not eligible to receive any other premium pay or overtime.

 

Modified, 1 CMC § 3806(e).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs of subsection (a) were not designated. The Commission designated subsections (a)(1) and (a)(2).

 

§ 100-50-230  Travel

 

(a)       Travel authorization forms shall be approved by the Corporate Director. It is expected that the travel authorization form relating to any given trip will be approved prior to the incurring of expenses.

 

(b)       An employee traveling on official NMHC business shall receive travel and per diem compensation at the rates and guidelines established by the CNMI government.

 

(c)       An employee may receive reimbursement for extraordinary expenses actually incurred in the performance of his/her duties upon the submission of receipts or other proof of extraordinary expenses to the Corporate Director and the specific approval of the Corporate Director to reimburse the employee for his/her extraordinary expenses.

 

(d)       Travel expenses shall never be billed directly to NMHC but should be paid by the employee and reimbursement sought. Necessary receipts must be attached before reimbursement will be made. An approved travel authorization form is required for every trip away from the island where the employee’s office is located, if the trip lasts longer than two quarters of a day.

 

(e)       Travel advances may be made for extended trips in accordance with guidelines established by the CNMI government. A travel advance is secured by completing a travel authorization form and forwarding it to the Corporate Director. Travel advances must be accounted for by a travel reimbursement claim after the trip or the advance will be deducted from the employee’s wages. No more than one hundred percent of the per diem estimated to be due on the travel authorization may be advanced.

 

(f)        Items on travel reimbursement claims, missing receipt affidavits, and travel authorization forms which violate the regulations stated above or the instructions which appear on the forms themselves will be suspended and a notice of explanation will be forwarded to the employee concerned. In order to be allowed, such items must be included in a subsequent travel expense statement in accordance with established CNMI government guidelines. Reclaimed items must be fully itemized and must be supported by the original notice of explanation or a copy thereof.

 

(g)       The travel reimbursement claim should be completed by a traveler who has qualified for reimbursement of travel expenses. All necessary receipts must be attached before reimbursement will be made. In the event no receipt is available for an expenditure for which reimbursement is sought, reimbursement is conditioned upon substantiation of the expense in a manner satisfactory to the Corporate Director. An approved travel authorization form must be attached for every trip reported.

 

(h)       Erasures and alterations in totals on any travel reimbursement claim or travel authorization form must be initialed by the traveling employee. Erasures or alterations in totals on vendor’s receipts must be initialed by the vendor or his/her representative.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: In August, 2011, NMHC proposed to amend this section to change travel and per diem compensation from the rate and guidelines established by the CNMI government to the federal government. A notice of permanent adoption was never published. See 33 Com. Reg. 31849 (Aug. 23, 2011).

 

§ 100-50-235  Outside Gainful Employment

 

A full-time employee who wishes to engage in outside gainful employment must have the express prior written approval of the Corporate Director. In considering a request to engage in outside employment, the Corporate Director must be sensitive to the employee’s financial needs and whenever warranted, may:

 

(a)       Recommend the employee for a salary increase or promotion to preclude the need for outside work; or

 

(b)       Permit outside employment if he/she deems it not likely to conflict with the employee's performance of his/her duties to NMHC.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-240  Severance Pay

 

(a)       An employee who is involuntarily terminated from NMHC, without cause, shall be entitled to severance pay at the time of his/her termination. A general reduction-in-force is an involuntary termination without cause. An employee’s termination will not be considered involuntary if he/she was hired on a temporary basis, if he/she has not completed his/her six month probationary period, or if the employee is eligible to immediately receive retirement. Nor shall termination be considered involuntary if the employee is offered and declines to accept another position with NMHC which is equivalent in function, seniority, tenure, and compensation.

 

(b)       The amount of severance pay to which an eligible employee is entitled shall be calculated pursuant to NMIAC § 10-20.2-356.

 

Modified, 1 CMC § 3806(c), (e).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Part 300 -       Personnel Policies

 

§ 100-50-301  Open Door Procedures

 

Each member of management welcomes discussion with employees regarding work-related concerns which adversely affect the employee’s performance. If any employee has a conflict they feel they cannot resolve with a supervisor, they can make arrangements to meet with the department manager, the human resources manager, the department executive or the general manager. NMHC believes that this policy will create a more open environment for all employees.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-305  Grievance Procedure

 

The following procedure shall be followed in reviewing and settling an employee’s grievance. An employee may at all times be assisted by a representative of the employee’s choice, at the employee’s sole expense.

 

(a)       The employees shall first try to resolve the grievance with the immediate supervisor, fellow employee or organization officials concerned. A grievance concerning a particular act or occurrence must be presented within ten calendar days of the date of the act or occurrence or the date the aggrieved employee become aware of the act or occurrence.

 

(b)       If the employee is not satisfied with the understanding reached through such discussion, the employee shall take up the matter with the immediate supervisor. If the immediate supervisor was the person with whom the employee had the first discussion, the employee should follow subsection (c) below.

 

(c)       If the grievance is not settled within five days, or if employee is dissatisfied with the understanding reached through consultation with the immediate supervisor, the employee shall deliver his/her appeal in writing to the Corporate Director within the next ten calendar days. The Corporate Director will consult with the employee and others concerned, and will try to resolve the grievance. Such consultation may be mail or in person.

 

(d)       All grievances shall be governed by NMIAC, title 10, subchapter 20.2, part 200, subpart G.

 

Modified, 1 CMC § 3806(c), (d), (e), (f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-310  Annual Evaluations

 

(a)       Each NMHC employee shall be evaluated annually by his/her division or department manager. Evaluations shall be written on forms provided by the Corporate Director, who will require the evaluator to assess the employee’s performance of the duties listed on the employee’s position description, as well as comment on the employee’s dependability, resourcefulness, and cooperativeness. Evaluation forms will also ask for the evaluator’s recommendation regarding any increase in the employee’s salary.

 

(b)       Completed evaluations shall be returned to the Corporate Director, and a copy given to the employee. After review of the completed evaluation, the Corporate Director will forward it to the Personnel Officer for processing of and documents required; i.e., salary increase, demotion, etc. The evaluator shall discuss the evaluation with the employee so that constructive criticism may be exchanged between the evaluator and the employee.

 

(c)       The employee will be invited to evaluate himself or herself, and that self-evaluation will be included in the composite evaluation for all purposes.

 

(d)       Employees other than the Corporate Director will be evaluated by their immediate supervisors. The Corporate Director shall be evaluated by the Board of Directors.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (d).

 

§ 100-50-315  Non-related Activities

 

An employee shall devote his/her entire working time to carrying out the functions, purposes, and policies of NMHC in accordance with procedures established by NMHC. All employees shall refrain from any activities not related to their employment with NMHC while on duty.

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The Commission inserted a comma after the word “purposes” pursuant to 1 CMC § 3806(g).

 

§ 100-50-320  Solicitation and Distribution

 

(a)       To maintain and promote efficient operations, attractive appearance, employee discipline, and security, rules have been established which govern solicitation, distribution of written material, and entry into our buildings and work areas. You are expected to comply strictly with these rules. Failure to obey these rules may result in disciplinary action. If you need more information about this rule, please ask your supervisor.

 

(b)       Solicitation for any reason or cause, and distribution of literature are prohibited at all times in areas open to the public. You may not solicit, sell anything, or promote support for any cause or organization, or distribute any literature during your work time or during the working times of other employees to whom such activity is directed. You may not distribute any material in working areas. Non-employees are never to be permitted to distribute literature or solicit our employees or guests at any time on our property. This applies to ANY solicitation, including lotteries, magazine clubs, sale of goods, etc. Any violation of this policy should be reported to your supervisor.

 

(c)       This list is not all-inclusive. Employees are not permitted to post, remove or alter anything on the bulletin boards or elsewhere on company premises without the authorization of the Corporate Director. Please contact the Corporate Director if there is an item you would like to have posted.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

§ 100-50-325  Drug Free Work Place

 

(a)       The NMHC operates a “drug-free” work place. As a matter of law and general business practice, we not only have the right, we have the obligation under CNMI and federal law to maintain strict work rules prohibiting drug use by our employees.

 

(b)       Our “drug free work place” policy was established because any amount of drugs in your body can put you under the influence to a degree, even if the impairment is not readily apparent to ordinary people. Drug abuse is often difficult to detect and can lead to serious property damage; serious injury, even death; and deterioration of your health and work performance.

 

(c)       Compliance with this policy in not just an essential job qualification, it is a condition of your continued employment with us.

 

(d)       Our mandatory “drug-free work place” policy is set forth as follows:

(1)       We absolutely prohibit — as a condition of employment — possession, distribution, manufacture, sale or use of any controlled substance, drug or other mind-altering chemical or organism, narcotic or related paraphernalia everywhere on our property and in every work place.

(2)       Reporting for work when you are in any way affected by the use of any drug, alcohol or narcotic, except those lawfully prescribed by a physician, is cause for immediate dismissal.

 

(e)       Here are your responsibilities under this policy:

(1)       You must report any violation of our drug-free work place policy that comes to your attention. Failure to report violations will subject you to disciplinary action.

(2)       You must tell us if you are convicted of any drug-related crime. If you are convicted of a drug offense that does not result in your imprisonment, you may not continue to work for us unless you agree to participate in a government-approved drug abuse assistance or rehabilitation program. (Note: Since we are engaged in contracting with the federal government, you should know that the Drug Free Work Place Act permits termination of your employment if you are convicted of a drug related crime.)

 

(f)        Any inconvenience this policy may cause is regrettable, but the alternatives to operating “drug-free” are unacceptable.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (f).

 

§ 100-50-330  Work Safety

 

(a)       Safety for our guests and employees cannot be overemphasized. NMHC safety programs are in effect to inform and protect employees and guests from unsafe acts or conditions. Safety rules and regulations will be reviewed and you will receive safety tips from your supervisor. Be conscientious while you work and report any unsafe practice or condition to your department head.

 

(b)       First aid kits are positioned in key areas throughout the NMHC, in the event a need for first aid arises. Locate the nearest first aid kit to your work station and ask your supervisor about safety procedures in effect for your department.

 

(c)       Smoking is prohibited in guest areas and all areas in the NMHC except those designated in work areas, employee lounge and office. Please observe this policy to protect guests and employees from fire.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

§ 100-50-335  Company Vehicles

 

(a)       The NMHC provides company vehicles for use by employees who need vehicles to fulfill duties outside of the NMHC. Company vehicles are for official use only. Use of company vehicles for personal business is strictly prohibited and may result in dismissal.

 

(b)       All drivers must be a minimum of twenty-five years old and possess a valid Commonwealth of the Northern Mariana Islands (CNMI) driver’s license.

 

(c)       Employees using company vehicles must abide by all traffic laws in effect in the CNMI. The NMHC will not be responsible for traffic citations issued to employees.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c). The Commission corrected the phrase “drivers license” to “driver’s license” pursuant to 1 CMC § 3806(g).

 

§ 100-50-340  Equal Opportunity Employer

 

(a)       NMHC is committed to providing equal employment for all persons regardless of race, religion, color, sex, sexual orientation, national origin, age, or disability. This commitment encompasses all aspect of our employment and personnel policies including hires, termination, promotions, transfers, rates of pay, educational assistance, and company-sponsored training and recreational programs.

 

(b)       To comply with applicable laws ensuring equal employment opportunities to qualified individuals with a disability, the company will make reasonable accommodations for the known physical or mental limitations of an otherwise qualified individual with a disability who is an applicant or an employee unless undue hardship would result.

 

(c)       If you believe you have been subjected to any unlawful discrimination, provide a written complaint to your supervisor or the human resources manager. Your complaint should be specific and should include the names of the individuals involved and the names of any witnesses, NMHC will not retaliate against you for filing a complaint and will not knowingly permit retaliation by management employees or your co-workers. NMHC will immediately undertake an effective, thorough, and objective investigation and attempt to resolve the situation.

 

Modified, 1 CMC § 3806(f), (g).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

In subsection (c), the Commission deleted the repeated phrase “to any unlawful discrimination.” The Commission inserted a comma after the word “thorough” in subsection (c) pursuant to 1 CMC § 3806(g).

 

§ 100-50-345  Changes in Personal Information

 

For benefits administration and emergency purposes, it is vital that we maintain accurate, current personnel records. It is your responsibility to notify your supervisor or the Human Resources Department of any changes regarding your marital status, name change, address, telephone number, who to notify in case of emergency, CNMI residency status and number of dependents.

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-350  Working with the Media

 

NMHC is an interesting and newsworthy establishment and an important part of the community. As a result, reporters periodically come here to write or film stories about the company. It is important that we furnish them with accurate facts. Please refer all reporters or news people to the Corporate Director or an Executive and notify your Department if you have been approached. No comments to the media are authorized without permission from the Corporate Director.

 

Modified, 1 CMC § 3806(f), (g).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The Commission corrected the spelling of “you.”

 

§ 100-50-355  Harassment

 

(a)       NMHC intends to provide a work environment that is pleasant, healthful, comfortable, and free from intimidation, hostility, discrimination or other offenses which might interfere with work performance. Harassment of any sort - verbal physical, visual - will not be tolerated. Examples of harassment include inappropriate touching, vulgar comments, dirty jokes/pinups/posters, threatening calls and messages, and repeated whistling/cat calls/gestures.

 

(b)       As a NMHC employee, you are responsible for keeping our work environment free of harassment. Any employee who becomes aware of an incident, of harassment, whether by witnessing the incident or being told of it, must report it to the human resources manager or any member of management of NMHC with whom you feel comfortable. When NMHC becomes aware that harassment might exist, we are obligated by law to take prompt and appropriate action, whether or not the victim wants the company to do so.

 

(c)       NMHC will immediately undertake effective, thorough, and objective investigation of the harassment allegation. If NMHC determines that harassment has occurred, effective remedial action will be taken in accordance with the circumstances involved. Any employee determined by the company to be responsible for harassment will be subject to disciplinary action, up to and including termination. NMHC will not retaliate against you for filing a complaint and will not tolerate or permit retaliation by management, employees or co- workers.

 

Modified, 1 CMC § 3806(f), (g).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

In subsection (b), the Commission corrected the spelling of “to the.” The Commission inserted a comma after the word “thorough” in subsection (c) pursuant to 1 CMC § 3806(g).

 

§ 100-50-360  Punctuality and Attendance

 

You are expected to be at work and on time each day you are scheduled. You must notify your department manager well in advance (eight hours is recommended) of your scheduled work shift if you will be late or absent. While we know there are valid reasons for being late or absent, excessive tardiness and absenteeism will not be tolerated and disciplinary action may be taken.

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-365  Standards of Conduct

 

There are certain rules and regulations necessary for the safe and efficient operation of NMHC. The following conduct is prohibited and will not be tolerated by NMHC. The list of prohibited conduct is not all-inclusive but is representative of unacceptable behavior. Any behavior which is not listed does not mean that it is acceptable.

 

(a)       Unauthorized absenteeism or tardiness to work by employee.

 

(b)       Neglect, careless performance, non-performance or non-completion of assigned work by the employee, abandonment of job or assigned duty of the employee.

 

(c)       Illegal possession of firearm or use or possession of illegal drugs or violation of any criminal law of the Commonwealth.

 

(d)       Misrepresentation of qualifications, skills, or physical or mental health.

 

(e)       Inability to fulfill job requirements.

 

(f)        Dishonesty.

 

(g)       Releasing confidential information.

 

(h)       Insubordination, including but not limited to failure or refusal to obey the legal orders or instructions of a supervisor, or the use of abusive or threatening language toward a fellow employee, supervisor, or client.

 

(i)        Stealing, removing or taking company property without consent or being an accomplice in the execution of such action.

 

(j)        Discrimination.

 

(k)       Wasting time and/or sleeping while on duty.

 

(l)        Harassing or disturbing the peace of any employee or client, to include, but not limited to, threats of any kind to others, fighting with or shouting at other co-workers, on company premises, or inflicting such cruel and abusive treatment to others not amounting to physical cruelty.

 

(m)      Stealing, misusing, destroying, damaging, defacing, or concealing company property or another employee’s personal property.

 

(n)       Posting or removing posted notices without proper authorization.

 

(o)       Distributing any written or printed material on company property during working hours without prior authorization.

 

(p)       Knowingly timing in and/or timing out for another employee; attempting to be paid for time not worked by having another employee time in and/or time out for you.

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (p). The Commission inserted commas after the words “skills” in subsection (d) and “supervisor” in subsection (h) pursuant to 1 CMC § 3806(g).

 

§ 100-50-370  Other NMHC Policies and Practices

 

(a)       Betel Nut, Tobacco, and Gum

Chewing betel nut, tobacco, or gum is not allowed on the property.

 

(b)       Smoking Areas

Smoking is not permitted during work time or in any area open to customer access or viewing. It is only allowed in designated areas. Ask your department manager for the designated smoking area.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The Commission inserted a comma after the word “tobacco” in subsection (a) pursuant to 1 CMC § 3806(g). The Commission corrected the phrase “you department manager” to “your department manager” in subsection (b) pursuant to 1 CMC § 3806(g).

 

Part 400 -       Employee Benefits

 

§ 100-50-401  Eligibility for Benefits

 

(a)       A permanent full-time employee (i.e., hired without a predetermined terminal point of employment) is eligible for all employee benefits enumerated in the manual codified in this chapter.

 

(b)       All other employees are eligible for no benefits, except as specified in their contract of employment, or specified elsewhere in this manual.

 

Modified, 1 CMC § 3806(d), (f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-402  Annual Leave

 

(a)       Employees shall accumulate leave time at the rate set forth in this section.

 

(b)       Employees who have less than three years of creditable service shall earn annual leave at the rate of four hours per pay period; employees with three but less than six years of service shall earn six hours of annual leave per pay period; and employees who have six or more years of service shall earn eight hours of annual leave per pay period.

 

(c)       Newly appointed employees shall undergo a waiting period of ninety calendar days before being credited with annual leave.

 

(d)       If an official holiday falls while an employee is on annual leave, that day will not be deducted from accrued annual leave. If an employee is sick while on annual leave, the employee may charge that time to accrued sick leave.

 

(e)       Annual leave must be approved by an employee’s supervisor and the Corporate Director prior to the employee’s taking it.

 

(f)        Any annual leave accumulated in excess of three hundred sixty hours as of the end of a calendar year shall be converted to sick leave on the last day of such calendar year.

 

(g)       An employee whose employment is terminated, or who resigns employment, and who has been employed for more than one year prior to the effective date of such termination or resignation, shall be entitled to payment for any and all unused annual leave, up to a maximum of three hundred sixty hours.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (g).

 

§ 100-50-404  Sick Leave

 

(a)       An employee commences to accrue sick leave at the beginning of the pay period following the employee’s employment. Each employee will accrue four hours of sick leave for each bi-weekly pay period, for which they are in pay status for the entire ten days. If an employee’s accrued sick leave is depleted, any additional days the employee is not at work will be deducted from accrued annual leave. When accrued annual leave has been depleted, the employee will go on leave without pay. If an official holiday occurs while an employee is on sick leave, that day will not be deducted from accrued sick leave.

 

(b)       When an employee is absent due to illness, the employee should give notice of his/her illness to the employee’s office by twelve noon or the entire day may be charged against annual leave, at the discretion of the immediate supervisor.

 

(c)       Written verification may be required for absence of less than three days at the discretion of the Corporate Director.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

Public Law 15-69 (effective June 5, 2007), codified at 1 CMC § 8276, authorizes government employees to apply for sick leave to attend to an immediate family member who is sick. Public Law 15-116 (effective November 29, 2007), codified at 1 CMC § 8265, repealed PL 15-69. PL 15-116 authorizes government employees to apply for leave to attend to an immediate family member who is sick. The provisions of PL 15-116 supersede this section to the extent that they conflict.

 

§ 100-50-406  Maternity Leave

 

(a)       An employee may be granted maternity leave with pay, not to exceed fifteen work days, because of childbirth. Maternity leave shall be in addition to sick leave.

 

(b)       The employee should request maternity leave at least one week prior to the day they expect to leave work.

 

(c)       Accrued annual leave and sick leave may be applied during this period. If maternity leave, annual-leave and sick leave are exhausted, the employee will be considered to be on leave of absence without pay.

 

Modified, 1 CMC § 3806(e).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

§ 100-50-408  Leave under the Family and Medical Leave Act of 1993 (FMLA)

 

(a)       Pursuant to the FMLA, an employee who has worked for NMHC for at least one year, and for one thousand two hundred fifty hours over the previous twelve months, may take up to twelve weeks of unpaid leave for certain family and medical reasons. At the option of the employee or NMHC, paid leave (i.e. accumulated sick leave and/or vacation leave) may be substituted for unpaid leave.

 

(b)       Typical reasons for taking FMLA leave include the following:

(1)       The care of the employee’s child (birth, or placement for adoption or foster care);

(2)       The care of the employee’s spouse, son or daughter, or parent who has a serious health condition; or

(3)       A serious health condition that makes the employee unable to perform their job.

 

(c)       Generally, NMHC will ask for, and the employee will be required to provide thirty days advance notice of intent to take leave and a medical certification.

 

(d)       It is the policy of NMHC to fully comply with all applicable laws. If you have any questions about the FMLA, contact the Corporate Director.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (d).

 

§ 100-50-410  Military Leave

 

The federal Uniformed Services Employment and Reemployment Act (USERRA) generally requires the Commonwealth government to provide extended military leave for its career employees, regardless of whether the service is voluntary or involuntary. The cumulative length of all absences due to military leave and extended military leave shall not exceed five years, unless extended for good reason documented in writing by the appointing authority. The employee must give advance notice to the appointing authority, unless military necessity or circumstances make this impossible or unreasonable. In most cases, the employee is guaranteed reinstatement rights and certain seniority rights upon return from leave. The employee must also comply with requests for documentation and with the requirements of the regulations in this chapter regarding the timing of applications for re-employment. For details, employees and appointing authorities should contact the U.S. Department of Labor.

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-412  Election Day Leave

 

An employee will be given two hours off work with pay to vote on each official election day. The determination of which two hours of the day shall be taken off will be made by the employee’s supervisor, so as to assure adequate staffing of the employee’s office at all times.

 

Modified, 1 CMC § 3806(e).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-414  Administrative Leave

 

An absence from duty administratively authorized, without loss of pay and without charge to accrued leave, is administrative leave. The Governor and Corporate Director, have the responsibility for approving administrative leave requests. The following are the four general classes into which administrative leaves fall:

 

(a)       Administrative leave is absence authorized under emergency conditions beyond the control of management, e.g., typhoons, or for participation in civic activities of interest to the government, or employment connected examinations, or for such reasons as the Governor may determine (such as a shortened work day on Christmas Eve);

 

(b)       Extended absence required for medical appointments and care following job-related injuries may be authorized as administrative leave;

 

(c)       Administrative leaves related to disciplinary actions. Corporate Director may place an employee in non-working status with pay for up to three work days pending preparation of a notice of proposed suspension for up to thirty calendar days or removal from NMHC; and

 

(d)       Administrative leave may be granted to employees serving on government boards and commissions, provided such employee does not receive compensation from the boards and commissions. Advance written notice by the head of a board or commission must be delivered to the department of agency head before an employee can be released from official duties to attend a meeting. If an emergency meeting is necessary, the chairman or Corporate Director may notify the department or agency head by phone, but a written confirmation of the meeting must follow that notification.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-416  Jury Duty

 

There may be an occasion where you are called to serve as a juror in court proceedings. If you are selected for jury duty, NMHC will give you time off from work to fulfill your civic responsibilities. You are required to notify your supervisor and department head as soon as you receive notice that you may be required to serve as a juror. Official court notice must be presented to approve total leave time.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-418  Death in the Immediate Family

 

(a)       An employee who suffers a death in his or her immediate family will be given a maximum of five days compassionate leave with pay, which must be taken within eighteen days after the death of the immediate family member.

 

(b)       Immediate family shall be defined as including the employee’s parent (including step or adoptive), spouse, sibling (including step or half), child (including step or adopted), grandparents, great-grand parents, mother-in-law and father-in-law (including step or adoptive).

 

Modified, 1 CMC § 3806(e).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

§ 100-50-420  Leave Advance

 

(a)       Where, for good reason, an employee on permanent status requires additional annual or sick leave in addition to the amounts accrued, the Corporate Director, may grant advance leave up to a maximum of one-half of the total earnable leave credits for which the employee is eligible for one year from the date the application is received. Subsequent accrued leave earnings shall serve to replace the amount of advance leave granted and taken. Request for leave advance must be in writing from the employee with recommendation from the appointing authority.

 

(b)       Leave advance granted and taken:

(1)       Constitute a legal contract between the employee and the government; and

(2)       Must be repaid, even if the employee separates from government service. Recovery of advance leave that is unpaid may be through the government’s assumption of the employee’s accrued unused leave, payroll deductions, matched reduction of service time and/or recourse to the courts.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

§ 100-50-422  Leave of Absence

 

(a)       An employee may request a leave of absence with or without pay. Requests for such leave must specify its purpose and time period and must be authorized by the Corporate Director prior to its commencement. Because of the difficulties presented the organization by granting such leave, approval will not be given in ordinary course.

 

(b)       When practical, an employee must give thirty days notice for the leave. Employees must give a reason for the leave, beginning date, and date you expect to return to work. All personal leave must be approved by the Corporate Director.

 

(c)       If you accept employment with another organization during your leave, you will be terminated from your job at NMHC. If you do not return to work on the agreed date, you will be considered to have voluntarily terminated your employment. Benefits will continue for the duration of the leave.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

§ 100-50-424  Training and Education Leave

 

Employees on permanent status who wish to pursue their education on a full-time basis, without financial assistance by the government, may be granted leaves of absence without pay for a period not to exceed one year. Such employees shall have the right to return to their positions at the satisfactory conclusion of their education or training, and their service anniversary dates shall be adjusted by the amount of leave without pay taken. The Personnel Officer is responsible for approving or disapproving requests for training and education leave, upon recommendation by the appointing authority.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-426  Leave Without Pay in Extension of Annual or Sick Leave

 

Employees on permanent status may be granted leave without pay (LWOP) for the purpose of extending annual or sick leave. When sick leave is so extended, the attending physician must certify to the necessity of the extension. The Personnel Office is responsible for approving or disapproving requests for leave without pay, upon recommendation by the appointing authority.

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-428  Disposition of Leave Upon Separation

 

(a)       Annual Leave

(1)       An employee separated from NMHC for any reason shall receive a lump-sum payment for all annual leave accrued to the employee’s credit and remaining unused at the time of separation. If the employee returns to duty in any capacity with the government before the accumulated term of leave would have expired, had it been liquidated in the normal course of employment, the employee must return to the government the gross value of such unused leave and have those hours of leave re-credited to the employee’s annual leave account.

(2)       For example, if an employee has 260 hours annual leave to his credit upon separation, that represents 45 days of annual leave. If the employee returns to government employment before the passage of 45 work days, the employee is required to make a refund for the unexpired term of leave remaining.

(3)       If the employee in the above example separates from government employment December 31, is offered an opportunity to return to duty with the same classification and pay, accepts, and returns to work March 15, 34 work days or 272 hours would have elapsed (one holiday occurred in February) between separation and return to duty.

(4)       Repayment may be through lump-sum cash prior to resuming duty status, payroll deduction or assigning to the government all annual leave accrued subsequent to returning to duty until the repayment is completed.

 

(b)       Sick Leave

An employee separated from NMHC for any reason shall have all sick leave accrued to the employee’s account held in the leave records for three years. Should the person be re-employed by NMHC at any time during that three year period, the sick leave balance shall be re-credited to the employee’s sick leave account and available for use from the first day of re-employment. Provided, however, that an employee separated from NMHC for retirement purposes, and whose unused sick leave has been converted to service time to determine eligibility in the retirement program, shall not be re-credited for such sick leave balance. (See 1 CMC § 8301, as amended.)

 

Modified, 1 CMC § 3806(e), (f), (g).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs of subsection (a) were not designated. The Commission designated subsections (a)(1) through (a)(4).

 

Public Law 15-57 (effective April 25, 2007), codified at 1 CMC §§ 82601-82605, addresses maximum annual leave accumulation (360 hours) for excepted service employees and lump sum payments for unused annual leave to all government employees. PL 15-57 prohibits reemployment with the CNMI government “until a period equal to the period of annual leave paid in lump sum has elapsed” or the employee elects to pay the equivalent amount “consistent with CNMI regulations.” 1 CMC § 82604. PL 15-57 also prohibits the conversion of sick leave to annual leave and any compensation for unused sick leave hours upon separation from employment for all government employees. 1 CMC § 82603. The provisions of PL 15-57 supersede subsection (a)(1) to the extent that they conflict.

§ 100-50-430  Holidays

 

NMHC shall observe those holidays observed by the government of the Northern Mariana Islands. All NMHC employees shall receive leave with pay on each legal holiday. An employee required to work on a legal holiday shall be compensated at the base salary rate, or the adjusted base salary rate for the hours actually worked, and shall also be paid for the holiday leave with pay.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-432  Training

 

Leaves for the purpose of job-related training may be granted to full-time employees for periods not to exceed one year, by the Corporate Director. Any extension of the above shall be subject to the approval of the Corporate Director.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-434  Training Outside the Commonwealth

 

Training courses given by agencies outside the Commonwealth will be utilized as necessary, and to the extent the budget will permit. If any manager wishes to send his/her employees to attend job-related training and development programs, he/she shall submit a memorandum to the Corporate Director requesting approval for training with the names of the employees, the course, and the content and length of such training. No training outside the CNMI, shall be approved if the same or equivalent training is available locally.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-436  Payment of Training Costs

 

(a)       Employees released to attend authorized job-related training and developmental programs will continue to receive their regular salary, travel expenses when required, and a stipend or per diem if for a short period of time, as applicable to the training involved.

 

(b)       It shall be the policy of the corporation to pay all costs for training defined as “job-skill training.”

 

(c)       Employees attending education or training designed generally to improve their potential for advancement, but not specially related to their present duty or to duties they are being specifically trained to assume, may be released on training at the discretion of the Corporate Director in accordance with the requirements set forth in this part.

 

(d)       Salary and related benefits provided to employees released for training under all the subsections above shall be limited to a period of one year, unless an extension is recommended by the employee’s supervisor with the approval of the Corporate Director.

 

Modified, 1 CMC § 3806(d), (e), (f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-438  Training Costs Defined

 

(a)       The term “all costs” when used in this part to define the corporation’s intent to support an employee undergoing training means:

(1)       Round-trip transportation to the training site by the least expensive air routings;

(2)       Cost of tuition, books, and fees; and

(3)       Stipend. One-half the regular per diem rate for the time authorized to be spent at the training site. In the event the training is received at or near a high cost resort area, the Corporate Director may approve an upward adjustment of the stipend.

 

(b)       Supervisory officials are encouraged to support training efforts, since improved skills and more effective supervision at all levels will improve mission accomplishment.

 

Modified, 1 CMC § 3806(e), (f), (g).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

In the opening paragraph, the Commission changed “employees” to “employee” to correct a manifest error. The Commission inserted a comma after the word “books” in subsection (a)(2) pursuant to 1 CMC § 3806(g).

 

§ 100-50-440  Medical and Life Insurance

 

Pursuant to the determination of the Board of Directors, an employee is entitled to participate in the group life and hospital insurance programs which are available to employees of the government of the Northern Mariana Islands on the same terms and conditions as are available to employees of the government for as long as such participation is permitted by the government or its insurer.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-442  Workers’ Compensation Insurance

 

(a)       Workers’ compensation insurance is provided for all employees upon date of hire. This insurance is paid by NMHC and provides medical coverage for employees injured in work-related activities.

 

(b)       For a work-related illness or injury, worker’s compensation insurance provides coverage for the following needs.

(1)       Medical service and supplies.

(2)       Partial payment of wages during periods of partial or total disability.

(3)       Payment for the support of employees undergoing a different job-skill training.

(4)       Death benefits, funeral expenses and payment to surviving dependents.

 

(c)       If you have an accident that is work related, you must report it to your supervisor or department manager immediately. You will be sent for treatment if necessary. To protect benefits which may be paid under workers’ compensation insurance, be sure an incident report is completed. Your failure to notify a supervisor or department manager of an on-the-job injury may cause you to delay your workers’ compensation benefits. NMHC may require that the injured employee seek medical attention from a physician chosen by NMHC.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

Part 500 -       Miscellaneous Provisions

 

§ 100-50-501  Rules governing Conflict of Interest and Nepotism

 

(a)       No person shall hold a job which a member of his/her immediate family exercises supervisory authority.

 

(b)       For purposes of this part, the phrase “immediate family” shall include those persons described in § 100-50-414 of the manual codified in this chapter.

 

Modified, 1 CMC § 3806(c), (d), (f).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

§ 100-50-505  Internal Operating Procedures

 

Internal office routine shall be governed by the Corporate Director. From time to time, written memoranda will be issued by the Corporate Director. Policies and procedures so issued shall be followed.

 

Modified, 1 CMC § 3806(f), (g).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The Commission changed “issue” to “issued” to correct a manifest error.

 

§ 100-50-510  Promulgation of Personnel Policies and Procedures

 

All existing personnel and each new employee shall be advised of the existence of the Personnel Manual codified in this chapter and all memoranda governing internal operating procedures. This manual and all memoranda shall be kept in a place in each office where all employees will have access to them.

 

Modified, 1 CMC § 3806(d).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The Commission corrected the word “memorandum” to “memoranda” pursuant to 1 CMC § 3806(g).

 

§ 100-50-515  Applicability

 

(a)       In General

All provisions of the Personnel Manual codified in this chapter shall apply to all persons who have the status of employees of NMHC, except the Corporate Director and those exempted from this manual by § 100-50-101. The Board and any independent contractors retained by the Board are not employees of NMHC and the provisions hereof shall apply to such persons, and to the Corporate Director and to those included in the exception, only as specifically made applicable herein.

 

(b)       Applicability of Particular Sections

(1)       Section 100-50-230, travel reimbursement, applies to the Board, to the Corporate Director and those employees exempted from this manual by § 100-50-101, unless otherwise provided by his/her contract.

(2)       Section 100-50-240, severance pay, applies to the Corporate Director and all employees of the corporation, including those exempted from this manual by § 100-50-101.

(3)       Section 100-50-310, non-related activities, applies to all employees of the corporation, including those exempted from this manual by § 100-50-101.

(4)       Section 100-50-401, employee benefits, applies to the Corporate Director and all employees of the corporation, including those exempted under § 100-50-101. Approval of leave requests for the Corporate Director shall be made by the Chairman of the Board.

 

(c)       Personnel Service System Rules & Regulations

Pursuant to E.O. 94-3, NMHC was placed within the Executive Branch of the CNMI government. As such, the rules and regulations adopted by the Civil Service Commission shall control NMHC’s personal policies. All employees are advised to become familiar with the Civil Service Commission’s Personnel Service System Rules and Regulations (PSSRR) [NMIAC, title 10, chapter 20.2]. If a conflict exists and/or develops between the PSSRRs and this manual, or if this manual is silent on an issue, the PSSRRs shall control.

 

Modified, 1 CMC § 3806(c), (d), (f), (g).

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

Commission Comment: The original paragraphs of subsection (b) were not designated. The Commission designated subsections (b)(1) through (b)(4).

 

In subsection (b)(2), the original cross-reference to § 3.07, Severance Pay,” was incorrect. See 19 Com. Reg. 15695 (Sept. 15, 1997). The Commission corrected the citation so that it references § 3.09, the severance pay provision, codified at § 100-50-240.

 

In subsection (c), the Commission changed “PSSRR’s” to “PSSRRs” to correct a manifest error.

 

§ 100-50-520  Receipt & Acknowledgment of NMHC Handbook

 

Please read the following statement and sign below to indicate your receipt and acknowledgment of the NMHC Employee Handbook.

           

I certify that I have received the NMHC Employee Handbook dated ___________ and that it is my responsibility to become familiar with its contents.

 

I understand and agree that the policies and benefits described in this handbook are not intended to create any contractual obligations.

 

I further understand that NMHC reserves the right to change its policies, rules, regulations and benefits as it sees fit, and that any such changes will take precedence over the statements contained in this employee handbook.

 

I understand that my signature below indicates that I have read and understand the above statements and have received a copy of the NMHC Employee Handbook dated ______________.

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 

§ 100-50-525  Amendments and Modifications

 

The provisions contained may be modified or amended by a majority of vote of the Personnel Committee. Any such amendment or modification shall become effective upon ratification by the Board of Directors.

 

History: Amdts Adopted 19 Com. Reg. 15783 (Nov. 15, 1997); Amdts Proposed 19 Com. Reg. 15668 (Sept. 15, 1997).

 


CHAPTER 100-60

NMHC PROCUREMENT REGULATIONS

 

Chapter Authority: 2 CMC § 4433; 4 CMC § 10203(a); Executive Order 94-3 § 407.

 

Chapter History: Proposed 20 Com. Reg. 15996 (July 15, 1998);* Proposed 9 Com. Reg. 4933 (May 15, 1987).*

 

*Notices of adoption for the May 1997 and July 1998 regulations were never published.

 

Commission Comment: 2 CMC § 4411 creates the Mariana Islands Housing Authority (MIHA) as a public corporation within the Commonwealth government, charged with meeting the need for decent, safe and sanitary housing for persons of low and moderate income in the Commonwealth. See 2 CMC §§ 4411-4457. 2 CMC § 4433 sets forth the powers of MIHA, including the general power to do any and all things necessary or convenient to effectuate the purposes of the act and to carry out any of the powers granted by the act. See 2 CMC § 4433(t).

 

Executive Order 94-3 (effective August 23, 1994) reorganized the Commonwealth government executive branch, changed agency names and official titles and effected numerous other revisions. According to Executive Order 94-3 § 407:

 

Section 407. Marianas Housing Authority.

(a)          The Marianas Housing Authority is abolished and its functions transferred to a Division of Housing within the Commonwealth Development Authority, which shall have at its head a Director of Housing.

(b)          Any bond or other indebtedness of the Mariana Island Housing Authority shall be assumed by the Commonwealth government, but only upon such terms and security as shall have been agreed to previously by the Authority. The full faith and credit of the Commonwealth shall to secure such bond or other indebtedness, except as may have been pledged prior to such assumption or as otherwise provided by law.

 

The full text of Executive Order 94-3 is set forth in the commission comment to 1 CMC § 2001.

 

The Northern Marianas Housing Corporation is a subsidiary corporation of the Commonwealth Development Authority and the successor to MIHA under Executive Order 94-3. See 2 CMC § 4482(d). 4 CMC § 10203(a) empowers the Commonwealth Development Authority to prescribe, adopt, amend and repeal regulations.

 

In 1987, MIHA published proposed Procurement Regulations. See 9 Com. Reg. 4933 (May 15, 1987). In 1998, NMHC again published proposed Procurement Regulations. See 20 Com. Reg. 15996 (July 15, 1998). Notices of adoption were never published.

 

[Reserved for future NMHC procurement regulations.]

 


CHAPTER 100-70

SECTION 8 PROGRAM GRIEVANCE PROCEDURES

 


Part 001           General Provisions

§ 100-70-001    Purpose

§ 100-70-005    Governing Law

§ 100-70-010    Applicability

§ 100-70-015    Definitions

 

Part 100           Grievance Procedure

§ 100-70-101    Incorporation in Leases

§ 100-70-105    Informal Settlement of Grievances

§ 100-70-110    Formal Grievance Hearing

§ 100-70-115    Selection of Hearing Officer or Panel

§ 100-70-120    Scheduling of Hearings

 

§ 100-70-125    Procedures Governing Hearings

§ 100-70-130    Decision of the Hearing Officer or Hearing Panel

§ 100-70-135    Notices

§ 100-70-140    Modification

§ 100-70-145    Miscellaneous

§ 100-70-150    Expedited Grievance Procedure

§ 100-70-155    Informal Review of Decisions Denying Assistance to Applicants

§ 100-70-160    Informal Review of Adverse Action Against Participants

§ 100-70-165    Restrictions on Assistance to Non-citizens


 

Chapter Authority: 2 CMC § 4433; Executive Order 94-3 § 407.

 

Chapter History: Amdts Adopted 22 Com. Reg. 17587 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17389 (Sept. 20, 2000); Adopted 21 Com. Reg. 16706 (Apr. 19, 1999); Proposed 21* Com. Reg. 16534 (Feb. 18, 1999).

 

*Volume 21, number 2, pages 16459-16571 are misnumbered as volume 20.

 

Commission Comment: 2 CMC § 4411 creates the Mariana Islands Housing Authority (MIHA) as a public corporation within the Commonwealth government, charged with meeting the need for decent, safe and sanitary housing for persons of low and moderate income in the Commonwealth. See 2 CMC §§ 4411-4457. 2 CMC § 4433 sets forth the powers of MIHA, including the general power to do any and all things necessary or convenient to effectuate the purposes of the act and to carry out any of the powers granted by the act. See 2 CMC § 4433(t).

 

Executive Order 94-3 (effective August 23, 1994) reorganized the Commonwealth government executive branch, changed agency names and official titles and effected numerous other revisions. According to Executive Order 94-3 § 407:

 

Section 407. Marianas Housing Authority.

(a)          The Marianas Housing Authority is abolished and its functions transferred to a Division of Housing within the Commonwealth Development Authority, which shall have at its head a Director of Housing.

(b)          Any bond or other indebtedness of the Mariana Island Housing Authority shall be assumed by the Commonwealth government, but only upon such terms and security as shall have been agreed to previously by the Authority. The full faith and credit of the Commonwealth shall to secure such bond or other indebtedness, except as may have been pledged prior to such assumption or as otherwise provided by law.

 

The full text of Executive Order 94-3 is set forth in the commission comment to 1 CMC § 2001.

 

The Northern Marianas Housing Corporation is a subsidiary corporation of the Commonwealth Development Authority and the successor to MIHA under Executive Order 94-3. See 2 CMC § 4482(d).

 

Part 001 -       General Provisions

 

§ 100-70-001  Purpose

 

The grievance procedure codified in this chapter has been adopted to provide a forum and procedure for applicants for assistance, tenants, and program participants to seek the just, effective, and efficient settlement of grievances against the Northern Marianas Housing Corporation (NMHC).

 

Modified, 1 CMC § 3806(d), (f).

 

History: Amdts Adopted 22 Com. Reg. 17587 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17389 (Sept. 20, 2000); Adopted 21 Com. Reg. 16706 (Apr. 19, 1999); Proposed 21 Com. Reg. 16534 (Feb. 18, 1999).

 

Commission Comment: The 2000 amendments readopted and republished the “Section 8 Program Grievance Procedures” in their entirety. The Commission therefore, cites the 2000 amendments in the history sections throughout this chapter. The Commission inserted commas after the words “tenants” and “effective” pursuant to 1 CMC § 3806(g).

 

§ 100-70-005  Governing Law

 

The law governing this grievance procedure is the U.S. Housing Act of 1937 (42 U.S.C. § 1437d(k)) and those regulations adopted by HUD there under, including, but not limited to 24 CFR parts 966, 982, and 983.

 

Modified, 1 CMC § 3806(g).

 

History: Amdts Adopted 22 Com. Reg. 17587 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17389 (Sept. 20, 2000); Adopted 21 Com. Reg. 16706 (Apr. 19, 1999); Proposed 21 Com. Reg. 16534 (Feb. 18, 1999).

 

Commission Comment: The Commission changed “part” to “parts” to correct a manifest error.

 

§ 100-70-010  Applicability

 

In accordance with applicable federal regulations, the grievance procedure in this chapter shall be applicable to all individual grievances (as defined in § 100-70-015 below) between a tenant and NMHC. However this grievance procedure is not applicable to disputes between tenants not involving NMHC, or to class grievances involving groups of tenants. Also, this grievance procedure is not intended as a forum for initiating or negotiating policy changes between tenants, or groups of tenants, and NMHC.

 

Modified, 1 CMC § 3806(c), (d), (f).

 

History: Amdts Adopted 22 Com. Reg. 17587 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17389 (Sept. 20, 2000); Adopted 21 Com. Reg. 16706 (Apr. 19, 1999); Proposed 21 Com. Reg. 16534 (Feb. 18, 1999).

 

§ 100-70-015  Definitions

 

The following definitions of terms shall be applicable to the grievance procedure in this chapter:

 

(a)       “Applicant for assistance”: Any person who has applied to NMHC for assistance, but who is not, at the time of the event which gives rise to the grievance, receiving assistance.

 

(b)       “Business days”: Monday through Friday of each week, except for legal holidays recognized by the federal or CNMI government.

 

(c)       “CFR”: The Code of Federal Regulations, which contains the federal regulations governing the grievance procedure in this chapter.

 

(d)       “Complainant”: Any tenant (as defined in this section below) whose grievance is presented to the central office of NMHC, or local NMHC field office in the case of individuals residing on Rota or Tinian, in accordance with the requirements set forth in this procedure.

 

(e)       “Drug-related criminal activity”: The illegal manufacture, sale, distribution, use or possession with intent to manufacture, sale, distribute, or use a controlled substance, as defined in section 102 of the Controlled Substances Act (21 U.S.C. § 802) as from time to time amended.

 

(f)        “Elements of due process”: The following procedural safeguards are required to be followed in an eviction action or a termination of tenancy in the Commonwealth court:

(1)       Adequate notice to the tenant of the grounds for terminating the tenancy and for eviction;

(2)       Right of the tenant to be represented by counsel;

(3)       Opportunity for the tenant to refute the evidence presented by NMHC, including the right to confront and cross examine witnesses and to present any affirmative legal or equitable defense which the tenant may have;

(4)       A decision on the merits.

 

(g)       “Grievance”: Any dispute which a tenant may have with respect to an action or a failure to act by NMHC in accordance with the individual tenant’s lease, federal and/or CNMI statute, HUD regulation, or NMHC regulation, which adversely affects the individual tenant’s rights, duties, welfare or status.

 

(h)       “Hearing officer”: An impartial person selected in accordance with applicable HUD regulation and this grievance procedure to hear grievances and render decisions with respect thereto.

 

(i)        “Hearing panel”: A three-member panel composed of impartial persons, selected in accordance with HUD regulation and this procedure to hear grievances and render decisions with respect thereto.

 

(j)        “HUD”: The United States Department of Housing and Urban Development.

 

(k)       “NMHC”: The Northern Marianas Housing Corporation, a public corporation organized and existing under the laws of the Commonwealth of the Northern Mariana Islands.

 

(l)        “Notice”: As used herein, the term noticed shall, unless otherwise specifically provided, mean written notice.

 

(m)      “Program participant”: Any person receiving rental assistance from NMHC other than those individuals receiving “project based” assistance.

 

(n)       The “Regulations” - The HUD regulations contained in 24 CFR, or elsewhere.

 

(o)       “Resident organization”: An organization of residents, which includes any resident management corporation.

 

(p)       “Tenant”: The adult person (or persons) other than a live-in aid*:

(1)       Who resides in the unit and who executed the lease, as lessee with NMHC as lessor of the dwelling unit, or, if no such persons resides in the unit,

(2)       The person who resides in the unit, and who is the remaining head of the household of the tenant family residing in the dwelling unit.

(3)       The term “tenant” is limited to those individuals residing in units in which the rental assistance is “project based.”

 

* So in original.

 

Modified, 1 CMC § 3806(d), (f), (g).

 

History: Amdts Adopted 22 Com. Reg. 17587 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17389 (Sept. 20, 2000); Adopted 21 Com. Reg. 16706 (Apr. 19, 1999); Proposed 21 Com. Reg. 16534 (Feb. 18, 1999).

 

Commission Comment: The final paragraph of subsection (p) was not designated. The Commission designated it subsection (p)(3).

 

The 2000 amendments added new subsections (a), (m) and (p)(3), alphabetized and re-designated the remaining sections and amended subsections (d), (g), (h), (i), (n) and (p)(1).

 

The Commission corrected the capitalization of the phrase “Code of Federal Regulations” in subsection (c) pursuant to 1 CMC § 3806(f). In subsection (j), the Commission inserted the final period.

 

Part 100 -       Grievance Procedure

 

§ 100-70-101  Incorporation in Leases

 

The grievance procedure in this chapter shall be incorporated by reference in all leases between tenants and NMHC at all NMHC housing units, whether or not so specifically provided in such leases.

 

Modified, 1 CMC § 3806(d), (f).

 

History: Amdts Adopted 22 Com. Reg. 17587 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17389 (Sept. 20, 2000); Adopted 21 Com. Reg. 16706 (Apr. 19, 1999); Proposed 21 Com. Reg. 16534 (Feb. 18, 1999).

 

§ 100-70-105  Informal Settlement of Grievances

 

(a)       Initial Presentation. Any grievance must be personally presented, either orally or in writing, to NMHC’s main office, within five business days after the occurrence of the event giving rise to the grievance.

 

(b)       Informal Settlement Conference. If the grievance is not determined by NMHC to fall within one of the exclusions mentioned in § 100-70-010 above, then NMHC will, within five business days after the initial presentation of the grievance, informally discuss the grievance with the complainant or their representatives in an attempt to settle the grievance without the necessity of a formal hearing. If the informal settlement conference cannot occur at the time the grievance is initially presented by the complainant, then the complainant will be promptly notified in writing of the time and place for the informal settlement conference.

 

(c)       Written Summary. Within five business days after the informal settlement conference, a summary of the informal discussion shall be prepared by NMHC and a copy thereof shall be provided to the complainant. The summary shall be in writing and shall specify the names of the participants in the discussion, the date of the discussion, the nature of the proposed disposition of the grievance, and the specific reasons for such disposition. This written summary will also specify the procedures by which the complainant may obtain a formal hearing if not satisfied by the proposed disposition of the grievance. A copy of the written summary shall also be placed in complainant’s tenant file.

 

Modified, 1 CMC § 3806(c), (e).

 

History: Amdts Adopted 22 Com. Reg. 17587 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17389 (Sept. 20, 2000); Adopted 21 Com. Reg. 16706 (Apr. 19, 1999); Proposed 21 Com. Reg. 16534 (Feb. 18, 1999).

 

§ 100-70-110  Formal Grievance Hearing

 

The following procedures apply to the request for a formal grievance hearing under the grievance procedure in this chapter:

 

(a)       Request for Hearing.

(1)       If the complainant is not satisfied with the results of the informal settlement conference, the complainant must submit a written request for a formal hearing to NMHC’s main office no later than ten business days after the date complainant receives the summary of discussion delivered as required under § 100-70-105 above.

(2)       Complainant’s written request for a formal hearing must specify:

(i)        The reasons for the grievance;

(ii)       The action or relief sought by the complainant;

(iii)      If the complainant so desires, a statement setting forth the times at which the complainant will be available for a hearing during the next ten business days;

(iv)      Complainant’s preference, if any, concerning whether the grievance should be heard by a single hearing officer or by a hearing panel; and

(v)       If the complainant has failed to attend an informal discussion conference, a request that the hearing officer or panel waive this requirement.

 

(b)       Failure to Request Hearing. If the complainant fails to request a hearing within ten business days after receiving the written summary of the informal settlement conference, NMHC’s decision rendered at the informal hearing becomes final and NMHC is not thereafter obligated to offer the complainant a formal hearing.

 

Modified, 1 CMC § 3806(c), (d), (e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17587 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17389 (Sept. 20, 2000); Adopted 21 Com. Reg. 16706 (Apr. 19, 1999); Proposed 21 Com. Reg. 16534 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs of subsection (a) were not designated. The Commission designated subsections (a)(1) and (a)(2).

 

The 2000 amendments amended subsections (a)(1) and (b).

 

§ 100-70-115  Selection of Hearing Officer or Panel

 

All grievance hearings shall be conducted by an impartial person or persons appointed by NMHC after consultation with resident organizations, in the manner described below:

 

(a)       The permanent appointments of persons who shall serve as hearing officers and hearing panel members shall be governed by the following procedures:

(1)       NMHC shall nominate a slate of persons to sit as permanent hearing officers or hearing panel members. These persons may include, but will not be necessarily limited to, members of NMHC Board of Directors, NMHC staff members, residents, or other responsible persons in the community. No persons shall be listed on the slate of members unless such person has consented to serve as a hearing officer or on a hearing panel.

(2)       The slate of potential appointees shall be submitted to all NMHC resident organizations, for written comments. Written comments from the resident organization shall be considered by NMHC before appointments are finally made. Objection to the appointment of a person as a hearing officer or panelist must be considered but is not dispositive as to the proposed appointment with respect to which objection is made.

(3)       On final appointment, the persons appointed and resident organizations shall be informed in writing of the appointments. A list of all qualified hearing officers and panelists will be kept at the central office of NMHC and be made available for public inspection at any time.

 

(b)       The designation of hearing officers or panel members for particular grievance hearings shall be governed by the following provisions:

(1)       All hearings will be held before a single hearing officer unless the complainant (at the time of the initial request for the hearing) or NMHC requests that the grievance be heard by a hearing panel, which shall be comprised of three hearing officers.

(2)       Appointments to serve as a hearing officer or panelist with respect to a particular grievance shall be made by NMHC in random order, subject to availability of the hearing officer or panelist to serve in each such case. NMHC may employ any reasonable system for random order choice.

(3)       No member of NMHC Board of Directors or staff may be appointed as hearing officer or panelist in connection with the grievance contesting an action which was either made or approved by proposed appointee, or which was made or approved by a person under whom the proposed appointee works or serves as a subordinate.

(4)       No person shall accept an appointment, or retain an appointment, once selected as a hearing officer or hearing panelist, if it becomes apparent that such person is not fully capable of impartiality. Persons who are designated to serve as hearing officers or panelists must disqualify themselves from hearing grievances that involve personal friends, relatives, persons with whom they have any business relationship, or grievances in which they have some personal interest. Further, such persons are expected to disqualify themselves if the circumstances are such that a significant perception of partiality exists and is reasonable under the circumstances. If a complainant fails to object to the designation of the hearing officer or panelists on the grounds of partiality, at the commencement or before the hearing, such objection is deemed to be waived, and may not thereafter be made.

(5)       In the event that a hearing officer or panel member fails to disqualify himself or herself as required in this grievance procedure, NMHC will remove the panel member or officer from the list of persons appointed for such purposes, invalidate the results of the grievance hearing in which such person should have, but did not, disqualify himself or herself, and schedule a new hearing with a new hearing panel or officer.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17587 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17389 (Sept. 20, 2000); Adopted 21 Com. Reg. 16706 (Apr. 19, 1999); Proposed 21 Com. Reg. 16534 (Feb. 18, 1999).

 

Commission Comment: The final paragraph of subsection (b) was not designated. The Commission designated it subsection (b)(5).

 

The 2000 amendments deleted former subsection (a)(2) and amended subsection (b)(1).

 

§ 100-70-120  Scheduling of Hearings

 

(a)       Hearing Prerequisites. A complainant does not have a right to a grievance hearing unless the complainant has satisfied the following prerequisites to such a hearing:

(1)       The complainant has requested a hearing in writing.

(2)       The complainant has completed the informal settlement conference procedure or has requested a waiver for good cause.

(3)       If the matter involves the amount of rent which NMHC claims is due under the complainant’s lease, the complainant shall have paid to NMHC an amount equal to the amount due and payable as of the first of the month preceding the month in which the complained of act or failure to act took place. And, in the case of situations in which hearings are, for any reason delayed, the complainant shall thereafter, deposit the same amount of the monthly rent in an escrow account monthly until the complaint is resolved by decision of the hearing officer or hearing panel. Unless waived by NMHC in writing, no waiver will be given by NMHC except in cases of extreme and undue hardship to the complainant, determined in the sole and absolute discretion of NMHC.

 

(b)       Time, Place, Notice.

(1)       Upon complainant’s compliance with the prerequisites to hearing set forth above, a hearing shall be scheduled by the hearing officer or hearing panel promptly for a time and place reasonably convenient to both the complainant and NMHC, not later than the tenth business day after complainant has completed such compliance. (In the case of a panel, if all three appointed members of the panel are not able to agree upon a date and time convenient to all panelists, on or before the last date before the hearing permitted under this procedure, they shall immediately so inform NMHC. If two panelists can agree upon a date and time, NMHC shall reappoint a third panelist who shall be available at the time agreed upon by the two who can agree. If none of the panelists can agree upon a time, a new panel shall be appointed.)

(2)       A written notification specifying the time, place, and the procedures governing the hearing shall be delivered to the complainant and the appropriate NMHC official, who, unless otherwise designated, shall be the NMHC manager.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17587 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17389 (Sept. 20, 2000); Adopted 21 Com. Reg. 16706 (Apr. 19, 1999); Proposed 21 Com. Reg. 16534 (Feb. 18, 1999).

 

Commission Comment: The 2000 amendments amended subsection (b)(2).

 

§ 100-70-125  Procedures Governing Hearings

 

(a)       Fair Hearings.

The hearings shall be held before a hearing officer or hearing panel as described above in § 100-70-115. The complainant shall be afforded a fair hearing, which shall include:

(1)(i)   The opportunity to examine before the hearing any NMHC documents, including records and regulations that are directly relevant to the hearing.

(ii)       The complainant will be allowed to copy any such document at the complainant’s expense. If NMHC does not make the document available for examination upon request by the complainant, NMHC may not rely on such document at the grievance hearing.

(iii)      NMHC shall also have the right to inspect and copy, at its expense, any documents that the complainant intends to use at the hearing. Upon request of NMHC, the complainant shall make the originals or copies of any documents that NMHC requests, available to NMHC for copying, at NMHC’s central or field office. If the complainant refuses to so provide said documents, then they may not rely on such documents at the hearing.

(2)       The right to be represented by counsel or other person chosen as the complainant’s representative and to have such person make statements on the complainant’s behalf.

(3)       The right to a private hearing unless the complainant requests a public hearing. The right to present evidence and arguments in support of the complainant’s complaint, to controvert evidence relied on by NMHC and to confront and cross examine all witnesses upon whose testimony or information NMHC or its management relies; and

(4)       A decision solely and exclusively upon the facts presented at the hearing.

 

(b)       Prior Decision in Same Matter.

The hearing panel or officer may render a decision without proceeding with the hearing if they determine that the issue has been previously decided in another proceeding.

 

(c)       Failure to Appear.

If the complainant or NMHC fails to appear at a scheduled hearing, the hearing officer or hearing panel may make a determination to postpone the hearing for a period not to exceed five business days or may make a determination that the party failing to attend has waived the right to a hearing. In such event, the hearing officer or hearing panel shall notify the complainant and NMHC of the determination.

 

(d)       Required Showing of Entitlement to Relief.

At the hearing, the complainant must first make a showing of an entitlement to the relief sought and thereafter NMHC must sustain the burden of justifying NMHC’s action or failure to act against which the complaint is directed.

 

(e)       Informality of Hearing.

The hearing shall be conducted informally by the hearing officer or hearing panel, and oral or documentary evidence pertinent to the facts and issues raised by the complaint may be received without regard to admissibility under the rules of evidence applicable to judicial proceeding.

 

(f)        Orderly Conduct Required.

The hearing officer or hearing panel shall require NMHC, the complainant, counsel, and other participants or spectators, to conduct themselves in an orderly fashion. Failure to comply with the directions of the hearing officer or hearing panel to obtain order may result in exclusion from the proceedings or in a decision adverse to the interests of the disorderly party and granting or denial of the relief sought, as appropriate.

 

(g)       Transcript of Hearing.

The complainant or NMHC may arrange in advance, and at the expense of the party making the arrangement, for a transcript of the hearing. Any interested party may purchase a copy of such transcript.

 

(h)       Accommodation to Handicapped Persons.

NMHC must provide reasonable accommodation for persons with disabilities to participate in grievance hearings. Reasonable accommodation may include qualified sign language interpreters, readers, accessible locations, or attendants.

 

Modified, 1 CMC § 3806(c), (f).

 

History: Amdts Adopted 22 Com. Reg. 17587 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17389 (Sept. 20, 2000); Adopted 21 Com. Reg. 16706 (Apr. 19, 1999); Proposed 21 Com. Reg. 16534 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs of subsection (a)(1) were not designated. The Commission designated subsections (a)(1)(i) through (iii).

 

The 2000 amendments deleted former subsection (c)(2) and added new subsection (a)(1)(iii).

 

§ 100-70-130  Decision of the Hearing Officer or Hearing Panel

 

At or subsequent to the completion of the grievance hearing, the hearing officer or panel shall make a determination as to the merits of the grievance and the following provisions shall govern:

 

(a)       Written Decision.

The hearing panel or officer shall prepare a written decision, together with the reasons for the decision within ten business days after the completion of the hearing.

(1)       A copy of the decision shall be sent to the complainant and NMHC. NMHC shall retain a copy of the decision in the complainant’s tenant folder.

(2)       A copy of such decision, with all names and identifying references deleted, shall also be maintained on file by NMHC and made available for inspection by any prospective complainant, their representative, or the hearing panel or hearing officer.

 

(b)       Binding Effect.

The written decision of the hearing officer or hearing panel shall be binding upon NMHC, which shall take all actions, or refrain from any actions, necessary to carry out the decision unless NMHC’s Board of Directors determines, within ten business days, and properly notifies the complainant of its determination, that:

(1)       The grievance does not concern NMHC action or failure to act in accordance or involving the complainant’s lease, or NMHC’s regulations, which adversely affect the complainant’s rights, duties, welfare, or status, or

(2)       The decision of the hearing officer or hearing panel is contrary to applicable federal, CNMI, or local law, HUD regulation or requirements of the annual contributions contract between HUD and NMHC.

 

(c)       Continuing Right of Complainant to Judicial Proceedings.

A decision by the hearing panel or officer or Board of Directors in favor of NMHC or which denies the relief requested by the complainant, in whole or in part, shall not constitute a waiver of, nor effect in any way the rights of the complainant to a trial or judicial review in any judicial proceedings, which may thereafter be brought in the matter.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17587 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17389 (Sept. 20, 2000); Adopted 21 Com. Reg. 16706 (Apr. 19, 1999); Proposed 21 Com. Reg. 16534 (Feb. 18, 1999).

 

Commission Comment: The Commission inserted a comma after the word “welfare” in subsection (b)(1) pursuant to 1 CMC § 3806(g).

 

§ 100-70-135  Notices

 

(a)       All notices under this grievance procedure shall be deemed delivered:

(1)       Upon personal service thereof upon the complainant or an adult member of the complainant’s household;

(2)       Upon the date receipted for or refused by the addressee, in the case of certified or registered U.S. mail; or

(3)       On the fifth day after the deposit thereof for mailing, postage prepaid, with the U.S. Postal Service, if mailed by first class mail other than certified or registered mail.

 

(b)       If a tenant is visually impaired, any notice hereunder delivered to such tenant shall be in an accessible format.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17587 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17389 (Sept. 20, 2000); Adopted 21 Com. Reg. 16706 (Apr. 19, 1999); Proposed 21 Com. Reg. 16534 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

The 2000 amendments amended subsection (a)(3).

 

§ 100-70-140  Modification

 

(a)       The grievance procedure in this chapter may not be amended or modified expect* by approval of a majority of the Board of Directors of NMHC, present at a regular meeting or a special meeting called for such purposes. Further, in addition to the foregoing, any changes proposed to be made to this grievance procedure must provide for at least thirty days advance notice to tenants and resident organizations, setting forth the proposed changes and providing an opportunity to present written comments. The comments submitted shall be considered by NMHC, before final adoption of any amendments hereto.

 

(b)       However, if any part of this grievance procedure is in conflict with a federal or CNMI statute, or HUD regulation, then this grievance procedure shall give way to said statute and/or regulation, to the extent necessary to remedy said conflict.

 

* So in original.

 

Modified, 1 CMC § 3806(d), (e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17587 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17389 (Sept. 20, 2000); Adopted 21 Com. Reg. 16706 (Apr. 19, 1999); Proposed 21 Com. Reg. 16534 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

The 2000 amendments added new subsection (b).

 

§ 100-70-145  Miscellaneous

 

(a)       Captions: Captions or paragraph headings set forth in this grievance procedure are for convenience of reference only and shall not be construed or interpreted to affect the substance of the paragraphs or sections so captioned.

 

(b)       Concurrent Notice: If a tenant has filed a request for grievance hearing hereunder in a case involving NMHC’s notice of termination of tenancy, the complainant should be aware that the CNMI law notice to vacate and the notice of termination of tenancy required under federal law run concurrently. Therefore, if the hearing officer or hearing panel upholds NMHC’s action to terminate the tenancy, NMHC may commence an eviction action in court upon the sooner of, the expiration of the date for termination of tenancy and vacation of premises stated in the notice of termination delivered to complainant, or the delivery of the report of decision of the hearing officer or panel to complainant.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17587 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17389 (Sept. 20, 2000); Adopted 21 Com. Reg. 16706 (Apr. 19, 1999); Proposed 21 Com. Reg. 16534 (Feb. 18, 1999).

 

§ 100-70-150  Expedited Grievance Procedure

 

(a)       When action must be taken by NMHC to terminate a tenancy or terminate assistance because of certain types of criminal activity on the part of the tenant, or those in tenant’s household, or tenant’s guests, the matter shall be heard under an expedited grievance procedure. This procedure may be used in connection with notices of termination of tenancy or assistance based upon two types of criminal activity:

(1)       Criminal activity that threatens the health, safety, or peaceful enjoyment of NMHC’s public housing premises by other residents or employees of NMHC or other residents of the building in which the tenant resides, or

(2)       In a drug-related criminal activity on or near such premises.

 

(b)       In such cases, the following procedures will be followed by NMHC in connection with grievances brought by complainants:

(1)       NMHC shall in its notice of adverse action to the tenant specify that it has elected to proceed under the expedited grievance procedure in the event that the tenant shall request a grievance hearing.

(2)       The complainant shall neither have a right nor an obligation to attend an informal settlement conference under § 100-70-105 hereof, and

(3)       A tenant who desires to request a formal hearing under the expedited grievance procedure shall make such request in writing not later than the end of the third business day following delivery of the notice of adverse action. Failure to timely make such written request for hearing shall constitute a waiver of the right to a hearing.

(4)       Any notice period subsequent to the delivery of a request for formal hearing by a complainant specifying or allowing a period of ten business days or longer hereunder shall be deemed, in the case of the expedited grievance procedure, to specify or allow a period of five business days.

 

Modified, 1 CMC § 3806(c), (e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17587 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17389 (Sept. 20, 2000); Adopted 21 Com. Reg. 16706 (Apr. 19, 1999); Proposed 21 Com. Reg. 16534 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b). The Commission corrected the phrase “an expedited grievance procedures” in subsection (a) to “an expedited grievance procedure” pursuant to 1 CMC § 3806(g).

 

The 2000 amendments amended subsections (a) and (a)(1).

 

§ 100-70-155  Informal Review of Decisions Denying Assistance to Applicants

 

Any decision by NMHC to deny assistance to an applicant for assistance (“applicant”) shall be governed by the procedures set forth in § 100-70-001 through § 100-70-150, above, with the term “applicant” being substituted for the term “tenant” where applicable, however, an applicant’s right to a hearing shall be limited to the grounds set forth in 24 CFR § 982.554 “Informal Review for Applicant” and if an applicant is not eligible for an informal hearing under 24 CFR § 982.554, then they shall also not be eligible for a formal hearing.

 

Modified, 1 CMC § 3806(c), (f).

 

History: Amdts Adopted 22 Com. Reg. 17587 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17389 (Sept. 20, 2000).

 

§ 100-70-160  Informal Review of Adverse Action Against Participants

 

(a)       Any decision by NMHC to take adverse action against a program participant (“participant”), shall be governed by the procedures set forth in § 100-70-001 through § 100-70-150, above, with the term “participant” being substituted for the term “tenant” where applicable. However, a participant’s right to a hearing shall be limited to the grounds set forth in 24 CFR § 982.555 “Informal Hearing for Participant” and if a participant is not eligible for an informal hearing under 24 CFR § 982.555, then they shall also not be eligible for a formal hearing.

 

(b)       NMHC may only take adverse action against a participant in accordance to the terms of 24 CFR § 982.555.

 

Modified, 1 CMC § 3806(c), (f).

 

History: Amdts Adopted 22 Com. Reg. 17587 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17389 (Sept. 20, 2000).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

§ 100-70-165  Restrictions on Assistance to Non-citizens

 

The grievance procedures in this chapter shall not apply to the denial of assistance on the basis of ineligible immigration status.

 

Modified, 1 CMC § 3806(d).

 

History: Amdts Adopted 22 Com. Reg. 17587 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17389 (Sept. 20, 2000).


CHAPTER 100-80

SECTION 8 RENTAL ASSISTANCE PROGRAMS ADMINISTRATIVE PLAN

 


Part 001           General Provisions

§ 100-80-001    Preamble

§ 100-80-005    Local Objectives

§ 100-80-010    Purpose of the Plan

§ 100-80-015    Fair Housing Policy

§ 100-80-020    Accommodations

§ 100-80-025    Owner Outreach

§ 100-80-030    Privacy Rights

 

Part 100           Eligibility for Admissions

§ 100-80-101    Eligibility Factors

§ 100-80-105    Family Composition

§ 100-80-110    Income Limitation

§ 100-80-115    Social Security Numbers

§ 100-80-120    Citizenship/Eligible Immigration Status

§ 100-80-125    Other Criteria for Admission

§ 100-80-130    Changes in Eligibility Prior to Effective Date of the Contract

§ 100-80-135    Ineligible Families

 

Part 200           Application for Admission

§ 100-80-201    How to Apply

§ 100-80-205    Applications

§ 100-80-210    Opening the Waiting List

§ 100-80-215    When Application Taking Is Suspended

§ 100-80-220    Requirement to Attend Briefing

§ 100-80-225    Verification of Information

 

Part 300           Establishing Preferences

§ 100-80-301    Guidelines

§ 100-80-305    The Preference System

 

Part 400           Occupancy Standards

§ 100-80-401    Determining Certificate/ Voucher Size

§ 100-80-405    Changes in Unit Size

 

Part 500           Total Tenant Payment (TTP) Determinations

§ 100-80-501    Income and Allowances

§ 100-80-505    Definition of Temporarily Absent

§ 100-80-510    Income of Person Permanently Confined to a Nursing Home

§ 100-80-515    Averaging Income

§ 100-80-520    Minimum Income

§ 100-80-525    Regular Gifts and Contributions

§ 100-80-530    Alimony and Child Support

§ 100-80-535    Lump-sum Receipts

§ 100-80-540    Assets Disposed of for Less than Fair Market Value

§ 100-80-545    Child Care Expenses

§ 100-80-550    Medical Expenses

§ 100-80-555    Stipend of Resident/Tenant Member of NMHC Board of Directors or Resident Advisory Board

 

Part 600           Verification Procedures

§ 100-80-601    Methods of Verification and Time Allowed

 

Part 700           Certification/Voucher Issuance and Briefings

§ 100-80-701    Issuance of Certificates/ Vouchers

§ 100-80-705    Briefing Types and Required Attendance

§ 100-80-710    Security Deposit Requirements

§ 100-80-715    Term of Certificate/Voucher

§ 100-80-720    Interchangeability Between Certificate and Voucher

 

Part 800           Request for Lease Approval and Contract Execution

§ 100-80-801    Request for Lease Approval

§ 100-80-805    Eligible Types of Housing

§ 100-80-810    Rent Limitations

§ 100-80-815    Disapproval of Proposed Rent

§ 100-80-820    Information to Owners

§ 100-80-825    Owner Disapproval

§ 100-80-830    Change in Ownership

 

Part 900           Housing Quality Standards and Inspections

§ 100-80-901    Housing Quality Standards and Inspections

 

Part 1000         Owner Rents, Rent Reasonableness and Payment Standards

§ 100-80-1001   Making Payments to Owners

§ 100-80-1005   Rent Reasonableness Determinations

§ 100-80-1010   Payment Standards for the Voucher Program

§ 100-80-1015   Adjustments to Payment Standards

§ 100-80-1020   Rent Adjustments

 

Part 1100         Re-certifications

§ 100-80-1101   Annual Activities

§ 100-80-1105   Annual Re-certification

§ 100-80-1110   Reporting Interim Changes

§ 100-80-1115   Notification of Results of Re-certifications

§ 100-80-1120   Continuance of Assistance for “Mixed Families”

 

Part 1200         Moves with Continued Assistance/ Portability

§ 100-80-1201   Allowable Moves

§ 100-80-1205   Restrictions on Moves

§ 100-80-1210   Procedure for Moves

§ 100-80-1215   Portability

§ 100-80-1220   Outgoing Portability

§ 100-80-1225   Incoming Portability

 

Part 1300         Denial or Termination of Assistance

§ 100-80-1301   Grounds for Denial/ Termination

§ 100-80-1305   Family Obligations for Rental Assistance Programs

§ 100-80-1310   Enforcing Family Obligations; Explanation & Terms

§ 100-80-1315   Procedures for Non-citizens

§ 100-80-1320   $0 Assistance Tenants

§ 100-80-1325   Option Not to Terminate for Misrepresentation

§ 100-80-1330   Misrepresentation in Collusion with Owner

 

Part 1400         Owner Restrictions

§ 100-80-1401   Policy

§ 100-80-1405   Owner Restrictions and Penalties

§ 100-80-1410   Overpayments to Owners

 

Part 1500         Claims, Move-out and Close-out Inspections

§ 100-80-1501   Owner Claims

§ 100-80-1505   Unpaid Rent

§ 100-80-1510   Vacancy Loss in the Certificate Program

§ 100-80-1515   Damages

§ 100-80-1520   Move-out and Close-out Inspections

§ 100-80-1525   Processing Claims

 

Part 1600         Complaints and Appeals

§ 100-80-1601   Complaints to NMHC

§ 100-80-1605   Preference Denials

§ 100-80-1610   Reviews and Hearings

§ 100-80-1615   Informal Reviews for Applicants

§ 100-80-1620   Informal Hearings

§ 100-80-1625   Formal Hearings

 

Part 1700         Minimum Rent

§ 100-80-1701   Minimum Rent

§ 100-80-1705   Financial Hardship Exemption from Minimum Rent

§ 100-80-1710   Requesting a Hardship

§ 100-80-1715   Effective Date


 

Chapter Authority: 2 CMC § 4433; Executive Order 94-3 § 407.

 

Chapter History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21* Com. Reg. 16471 (Feb. 18, 1999).

 

*Volume 21, number 2 pages, 16459-16571 are misnumbered as volume 20.

 

Commission Comment: 2 CMC § 4411 creates the Mariana Islands Housing Authority (MIHA) as a public corporation within the Commonwealth government, charged with meeting the need for decent, safe and sanitary housing for persons of low and moderate income in the Commonwealth. See 2 CMC §§ 4411-4457. 2 CMC § 4433 sets forth the powers of MIHA, including the general power to do any and all things necessary or convenient to effectuate the purposes of the act and to carry out any of the powers granted by the act. See 2 CMC § 4433(t).

 

Executive Order 94-3 (effective August 23, 1994) reorganized the Commonwealth government executive branch, changed agency names and official titles and effected numerous other revisions. According to Executive Order 94-3 § 407:

 

Section 407. Marianas Housing Authority.

(a)          The Marianas Housing Authority is abolished and its functions transferred to a Division of Housing within the Commonwealth Development Authority, which shall have at its head a Director of Housing.

(b)          Any bond or other indebtedness of the Mariana Island Housing Authority shall be assumed by the Commonwealth government, but only upon such terms and security as shall have been agreed to previously by the Authority. The full faith and credit of the Commonwealth shall to secure such bond or other indebtedness, except as may have been pledged prior to such assumption or as otherwise provided by law.

 

The full text of Executive Order 94-3 is set forth in the commission comment to 1 CMC § 2001.

 

The Northern Marianas Housing Corporation is a subsidiary corporation of the Commonwealth Development Authority and the successor to MIHA under Executive Order 94-3. See 2 CMC § 4482(d).

 

On November 15, 1996, NMHC published emergency and proposed “Regulations Regarding the Minimum Rent for NMHC Section 8 Housing Units.” See 18 Com. Reg. 14461 (Nov. 15, 1996). A notice of permanent adoption was never published.

 

Chapter 100-90 was originally promulgated as “revisions” to Chapter 100-80. The Notice of Proposed Regulations contained the following section:

 

Citation of Related and/or Affected Statutes, Rules and Regulations. The proposed revisions were formulated to restate, enhance, supplement and clarify the existing NMHC Administrative Plan for Rental Assistance Programs and will not repeal the entire plan located at Northern Mariana Islands Administrative Code (NMIAC), Title 100, Chapter 80.

 

Sections of Chapter 100-90 are clearly incompatible with the plan existing at this chapter. As the adopted regulations provided no guidance for the Commission regarding which sections were to be repealed, the Commission codified the regulations as new Chapter 90. To the extent that the regulations in this chapter conflict with Chapter 90, they are superseded.

 

 

Part 001 -       General Provisions

 

§ 100-80-001  Preamble

 

(a)       The United States Department of Housing and Urban Development (HUD), operates a subsidized housing program known as the Section 8 program. In the Commonwealth of the Northern Mariana Islands (CNMI), this program is administrated by the Northern Marianas Housing Corporation (NMHC), a division of the Commonwealth Development Authority (CDA).

 

(b)       Eligibility to participate in the Section 8 program is determined by family size and income, in accordance with federal statutes, regulation, and by NMHC’s rules and regulations.

 

(c)       Under the Section 8 program, as administered by NMHC, families may reside in units owned by NMHC, or they may reside in privately-owned housing units.

 

(d)       Privately-owned housing units participating in the programs are required to pass minimum housing quality standards (HQS) established by HUD or the local housing code, whichever is more stringent. Contract rentals must be comparable to rentals received for housing units of the same size and type in the same general neighborhood.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (d).

 

The 2000 amendments deleted former subsection (a), added new subsections (a) through (c) and re-designated subsection (d).

 

The 2000 amendments readopted and republished the “Section 8 Rental Assistance Programs Administrative Plan” in its entirety. The Commission, therefore, cites the 2000 amendments in the history sections throughout this chapter.

 

§ 100-80-005  Local Objectives

 

The rental assistance programs are designed to achieve two major objectives:

 

(a)       To provide decent, safe, and sanitary housing for low income families while maintaining their rent payment at an affordable level.

 

(b)       To provide an incentive to private property owners to rent to low income families by offering timely assistance payments.

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The 2000 amendments amended the opening sentence and subsections (a) and (b).

 

§ 100-80-010  Purpose of the Plan

 

(a)       The purpose of the Administrative Plan codified in this chapter is to establish policies for carrying out NMHC’s rental assistance programs in a manner consistent with funding source requirements and local objectives. The plan covers both admission and continued participation in these programs. Policies are the same for all programs unless otherwise noted.

 

(b)       NMHC is responsible for complying with all changes in program regulations pertaining to these programs. If such changes conflict with this plan, program regulations will have precedence. The original plan and any changes must be approved by the Board of Directors of NMHC and a copy provided to HUD.

 

Modified, 1 CMC § 3806(d), (f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

The 2000 amendments amended subsection (a).

 

§ 100-80-015  Fair Housing Policy

 

(a)       It is the policy of NMHC to comply fully with all federal, Commonwealth, and local non-discrimination laws and with the rules and regulations governing fair housing and equal opportunity in housing and employment.

 

(b)       NMHC shall not deny any family or individual the opportunity to apply for or receive assistance under the Section 8 programs on the basis of race, color, sex, religion, creed, national or ethnic origin, age, family or marital status, handicap or disability or sexual orientation.

 

(c)       To further its commitment to full compliance with applicable civil rights laws, NMHC will provide federal/Commonwealth/local information to certificate and voucher holders regarding “discrimination” and any recourse available during the family briefing session, and applicable fair housing information and discrimination complaint forms will be made a part of the certificate and voucher holder’s briefing packet.

 

(d)       No individual with disabilities shall be denied the benefits or be excluded from participation in this program.

 

Modified, 1 CMC § 3806(f), (g).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (d).

 

The 2000 amendments deleted former subsection (e).

 

The Commission inserted a comma after the word “Commonwealth” in subsection (a) pursuant to 1 CMC § 3806(g). In subsection (b), the Commission changed “martial” to “marital” to correct a manifest error. In subsection (c), the Commission changed “apart” to “a part” to correct a manifest error.

 

§ 100-80-020  Accommodations

 

NMHC’s policies and practices will be designed to provide assurances that all persons with disabilities will be provided reasonable accommodation so that they may fully access and utilize the housing programs and related services.

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The 2000 amendments deleted former subsection (b).

 

§ 100-80-025  Owner Outreach

 

(a)       NMHC encourages owners of decent, safe, and sanitary housing units to lease to Section 8 families. NMHC maintains a list of interested landlords and units available for the Section 8 program and updates this list on a regular basis. When listings from owners are received, they will be compiled by NMHC staff by bedroom size.

 

(b)       NMHC staff initiates personal contact with private property owners and managers by conducting formal and informal discussions and meetings.

 

(c)       Printed material is available to acquaint owners and managers with the opportunities available under the program.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c). The Commission inserted a comma after the word “safe” in subsection (a) pursuant to 1 CMC § 3806(g).

 

§ 100-80-030  Privacy Rights

 

(a)       Applicants and participants, including all adults in their households, are required to sign the HUD 9886 authorization for release of information. This document incorporates the Federal Privacy Act statement and describes the conditions under which HUD will release family information.

 

(b)       NMHC’s practices and procedures are designed to safeguard the privacy of applicants and program participants. All applicant and participant files will be stored in a secure location which is only accessible by authorized staff.

 

(c)       In accordance with HUD requirements, NMHC will furnish prospective owners with the family’s current address as shown in NMHC’s records and, if known to NMHC, the name and address of the landlord at the family’s current and prior address.

 

(d)       NMHC’s policy is to ensure objectivity and consistency in applying the following criteria to evaluate the eligibility of families who apply. Staff will carefully review all information provided by the family. Families will be provided the opportunity to explain their circumstances, to furnish additional information, if needed, and to receive an explanation of the basis for any decision made by NMHC pertaining to their eligibility.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (d).

 

The 2000 amendments deleted former subsection (c) and the Commission re-designated the remaining subsections accordingly.

 

Part 100 -       Eligibility for Admissions

 

§ 100-80-101  Eligibility Factors

 

(a)       To be eligible for participation, an applicant must meet HUD’s criteria, as well as any permissible additional criteria established by NMHC.

 

(b)       The HUD eligibility criteria are:

(1)       An applicant must be a “family”

(2)       An applicant must be within the appropriate income limits

(3)       An applicant must furnish Social Security numbers for household members 6 years or older

(4)       An applicant must furnish evidence of citizenship/ eligible immigrant status.

 

Modified, 1 CMC § 3806(f), (g).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

In subsection (b)(4), the Commission inserted the final period.

 

§ 100-80-105  Family Composition

 

(a)       The applicant must qualify as a family.

(1)       The definition of a family is two or more persons (with or without children) regularly living together, related by blood, marriage, adoption, guardianship, or operation of law; or two or more persons who are not so related, but regularly living together and can verify shared income or resources; or two or more persons who intend to share residency and whose income and resources are available to meet the family’s needs.

(2)       The term family also includes: elderly family, near elderly family, disabled family, displaced person, single person, the remaining member of a tenant family, a foster care arrangement, or a kinship care arrangement. Other persons including members temporarily absent (i.e. a child temporarily placed in a foster care or a student temporarily away at college), may be considered a part of the applicant family’s household if they are living or will live regularly with the family.

 

(b)       Split households prior to certificate/voucher issuance.

When a family on the waiting list splits into two otherwise eligible families due to divorce or legal separation, and the new families both claim the same placement on the waiting list, and there is no court determination, NMHC will make the decision taking into consideration the following factors:

(1)       Which family member applied as head of household

(2)       Which family unit retains the children of any disabled or elderly members

(3)       Restrictions that were in place at the time the family applied

(4)       Role of domestic violence in the split

(5)       Recommendations of social service agencies or qualified professionals such as the Division of Youth Services (DYS), Division of Mental Health, KARIDAT.

 

(c)       The family unit that retains the minor children will be given priority for remaining at its place on the waiting list.

 

(d)       Documentation of these factors is the responsibility of the applicant families. If either or both of the families do not provide the documentation, they may be denied placement on the waiting list for failure to supply information requested by NMHC.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (d). The Commission inserted a comma after the word “guardianship” in subsection (a) pursuant to 1 CMC § 3806(g).

 

The 2000 amendments amended subsection (b)(5).

 

§ 100-80-110  Income Limitation

 

(a)       To determine if the family is income-eligible, NMHC compares the annual income of the family as defined under program regulations to the applicable income limits for the family’s size.

 

(b)       For admission to the program (initial lease-up), the family’s income must be within the applicable low income limit for the CNMI.

 

(c)       Pursuant to HUD regulations, NMHC is required to target available Section 8 housing to extremely low income families. In order to meet this requirement, extremely low income families may be given a preference on the waiting list, so that NMHC may meet HUD requirements.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

The 2000 amendments added a new subsection (c) and amended subsections (a) and (b).

 

§ 100-80-115  Social Security Numbers

 

Families are required to provide verification of Social Security numbers for all family members age 6 years and older prior to admission, if they have been issued a number by the Social Security Administration. This requirement also applies to persons joining the family after admission to the program.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

§ 100-80-120  Citizenship/Eligible Immigration Status

 

(a)       In order to receive assistance, a family member must be a U.S. citizen or eligible immigrant. Individuals who are neither may elect not to contend their status. Eligible immigrants are persons who are in one of the six immigrant categories as specified by HUD.

 

(b)       For the citizenship/eligible immigration requirement, the status of each member of the family is considered individually before the family’s status is defined.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

§ 100-80-125  Other Criteria for Admission

 

(a)       NMHC shall apply the following criteria, in addition to the HUD eligibility criteria, as grounds for denial of admission to the program.

(1)       Certificate program family’s total tenant payment, computed in accordance with HUD regulations, may not exceed the current fair market rent as set by HUD for the family’s certificate size in the area.

(2)       The family must not have violated any family obligation during previous participation in the Section 8 program in the previous thirty-six months.

(3)       No family member may have committed fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program.

(4)       Family must have paid any outstanding debt owed NMHC by the applicant for any program that NMHC operates, and any balance must be paid in full before admission or demonstrate a satisfactory six-month payment on a repayment agreement.

(5)       No member of the family may have been involved or participated in drug related or violent criminal activity.

(6)       No family member may have been evicted from public housing for drug-related or violent criminal activity during the three year prior to receipt of the application by NMHC.

(7)       No family member may have engaged in or threatened abusive or violent behavior toward NMHC personnel.

 

(b)       When NMHC denies assistance to an applicant with a disability, the applicant may request a review of the family obligation that was violated, if the violation was a result of the disability. An exception may be granted by NMHC if the family member who violated the family obligation is not a current member of the household on the application.

 

(c)       NMHC will not be obligated to ferret out information concerning a family’s criminal activities as part of the processing of an application for assistance. Initial screening will be limited to routine inquiries of the family and any other information provided to NMHC regarding the matter. The inquiries will be standardized and directed to all applicants by inclusion in the application form. If either as a result of the standardized inquiry or the receipt of a verifiable referral, there is indication that the family or any family member has participated in drug-related criminal activity or violent criminal activity, NMHC may conduct closer inquiry to determine whether the family should be denied admission.

 

(d)       If the family indicates on application that they have been arrested within the prior five years for drug-related or violent criminal activity, NMHC shall obtain verification through police/court records.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (d). For clarity, the Commission moved subsections (b), (c) and (d) to the end of this section.

 

The 2000 amendments amended subsections (a)(1) and (a)(7).

 

§ 100-80-130  Changes in Eligibility Prior to Effective Date of the Contract

 

Changes that occur during the period between placement on the waiting list and issuance of a certificate or voucher may affect the family’s eligibility or total tenant payment. For example, if a family goes over the income limit prior to lease up, the applicant will not be eligible for the program. They will be notified in writing of their ineligible status and of their right to an informal review.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

§ 100-80-135  Ineligible Families

 

Families who are determined to be ineligible will be notified in writing of the reason for denial and given an opportunity to request an informal review, or an informal hearing if they were denied due to non-citizen status.

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Part 200 -       Application for Admission

 

§ 100-80-201  How to Apply

 

NMHC will accept and process applications in accordance with applicable federal regulations. Applications will be received and processed as follows:

 

(a)       Applications will be taken at NMHC’s central office or its offices on Rota and Tinian, as the case may be, at which time all applicants will receive a written statement documenting receipt of the application by NMHC. Unless the waiting list is closed, an application must be accepted even if an informal discussion indicates the applicant or his/her family may not be eligible.

 

(b)       Before formal acceptance of the application, applicants will be expected to provide on the formal application forms all the information necessary for making eligibility determinations.

 

(c)       All adult members of the household age eighteen or older must be present to complete and sign the application and to provide photo identification. This provision can be waived only for good cause. (Good cause would include applicants that are disabled and require that application be completed by mail).

 

(d)       Each application will be placed on the waiting list by preference category and date and time of the application. This policy will not be subverted due to personal or political favors.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The 2000 amendments amended subsections (a) and (d). The Commission corrected the spelling of the word “due” in subsection (d) pursuant to 1 CMC § 3806(g).

 

§ 100-80-205  Applications

 

(a)       The purpose of the application is to permit NMHC to assess family eligibility or ineligibility and to determine placement on the waiting list. The application will contain questions designed to obtain the following information:

(1)       Names and date of birth of all members

(2)       Sex and relationship of all members

(3)       Street address and phone numbers

(4)       Mailing address (if P.O. box or other permanent address)

(5)       Amount(s) and source(s) of income received by household members

(6)       Information related to qualification for preference

(7)       Social Security numbers

(8)       Race/ethnicity

(9)       Citizenship/eligible immigration status

(10)     Arrests for drug-related or violent criminal activity

(11)     Request for specific accommodation needed to fully utilize program and services.

 

(b)       The information on the application will not be verified until the applicant has been selected for final eligibility determination. Final eligibility will be determined when the full application process is completed and all information is verified.

 

(c)       Applicants are required to inform the NMHC within thirty days of changes in family composition, income, and address, as well as any changes in preference status. Applicants are also required to respond to requests from NMHC to update information or to determine continued interest in assistance. If a family fails to respond to a request from NMHC to update information, then NMHC may, after sending a second request by certified mail, then the application will be rejected. No application will be rejected, until the thirty-first day after their receipt of the second request, or if the second request is returned to NMHC by the Post Office, the thirty-first day after mailing by NMHC.

 

Modified, 1 CMC § 3806(e), (f), (g).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

The 2000 amendments amended subsections (a)(1) and (c).

 

In subsection (a)(11), the Commission inserted the final period.

 

§ 100-80-210  Opening the Waiting List

 

(a)       NMHC will utilize the following procedures for opening the waiting list.

 

(b)       When NMHC opens the waiting list, NMHC will advertise through public notice in the Marianas Variety and Saipan Tribune. Notice will also be posted at each island’s Mayor’s Office.

 

(c)       The notice will contain the dates, times, and locations where families may apply; the programs for which applications will be taken; a brief description of the program; and limitations, if any, on who may apply (special categories of applicants).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c). The Commission inserted a comma after the word “times” in subsection (c) pursuant to 1 CMC § 3806(g).

 

The 2000 amendments amended subsection (c).

 

§ 100-80-215  When Application Taking Is Suspended

 

(a)       Decisions to close the waiting list will be based on the number of applications available for particular sizes of units, the numbers of applicants who qualify for local preferences, and the ability of NMHC to house an applicant in an appropriate unit within a reasonable period of time. A decision to close the waiting lists, restricting intake, or opening the waiting lists will be announced by public notice.

 

(b)       During the period when the waiting list is closed, NMHC will not maintain a list of individuals who wish to be notified when the waiting list is reopened.

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

§ 100-80-220  Requirement to Attend Briefing

 

(a)       NMHC utilizes the full application briefing to discuss the family’s circumstances in greater detail, to clarify information provided by the family, and provide information about the Section 8 program. All adult members are required to attend the briefing.

 

(b)       It is the applicant’s responsibility to reschedule the interview if she/he misses the briefing. If the applicant does not reschedule or misses two scheduled briefings, NMHC will reject the application.

 

(c)       Reasonable accommodation will be made for persons with a disability who require an advocate or accessible offices. A designee will be allowed to provide some information but only with permission of the person with a disability.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

§ 100-80-225  Verification of Information

 

(a)       Information provided by the applicant will be verified including information related to family composition, income, allowances and deductions, assets, eligible immigration status, full time student status and other factor related to preferences, eligibility and rent calculation. Verifications may not be more than sixty days old at the time of certificate/voucher issuance.

 

(b)       In order to verify information provided by a family, each adult member must sign a HUD approved consent for the release of information, so that NMHC may verify income and source of income information provided by the family.

 

Modified, 1 CMC § 3806(e).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

The 2000 amendments added a new subsection (b).

 

Part 300 -       Establishing Preferences

 

§ 100-80-301  Guidelines

 

The Section 8 waiting list will be maintained in accordance with the following guidelines:

 

(a)       The application will be a permanent file.

 

(b)       All applicants on the list will be maintained in order of preference. Applications equal in preference will be maintained by date and time.

 

(c)       All applicants must meet “very-low income” eligibility requirements as established by HUD. Any exceptions to these requirements must have been approved by the HUD field office.

 

Modified, 1 CMC § 3806(f), (g).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

This section was originally an introduction to part III, codified at part 300. See 22 Com. Reg. at 17432 (Sept. 20, 2000); 21 Com. Reg. at 16490 (Feb. 18, 1999). The Commission created the section title.

 

In subsection (a), the Commission inserted the final period.

 

§ 100-80-305  The Preference System

 

An applicant will not be granted any preference (federal, ranking or local) if any member of the family has been evicted from any federally assisted housing during the past three years because of drug-related criminal activity.

 

(a)       NMHC reserves the right to choose whether to use preference in accordance with applicable federal law. NMHC will provide every applicant with information regarding preferences adopted by the Board of Directors.

 

(b)       A preference does not guarantee admission. Preferences are used to establish the order of placement on the waiting list. Every applicant must meet eligibility factors before being offered a certificate/voucher.

 

(c)       Preferences will be granted to applicants who are otherwise qualified and who, at the time they are certified for admission meet the definitions of the preferences described below.

 

(d)       Preference system - The following system will be applied in the selection of applicants from the waiting list:

At this time, NMHC has not adopted any local preferences. Further, NMHC is no longer utilizing the “federal” preferences. All applications will be on a first come first served basis. However, as noted above, NMHC is required to target extremely low income families and must generally target seventy-five percent of its new admissions to extremely low income families. Therefore, these families will be given “preference” to the extent needed for NMHC to comply with HUD mandates.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The 2000 amendments amended subsection (d). The 2000 amendments also deleted the remainder of part III, codified at part 300. See 21 Com. Reg. at 16491-94 (Feb. 18, 1999).

 

Part 400 -       Occupancy Standards

 

§ 100-80-401  Determining Certificate/Voucher Size

 

(a)       NMHC does not determine who shares a bedroom/sleeping room. NMHC’s occupancy standards for determining certificate/voucher size shall be applied in a manner consistent with fair housing guidelines.

 

(b)       All standards in this section relate to the number of bedrooms stated on the certificate or voucher, not the family’s actual living arrangements.

 

(c)       The unit size on the certificate or voucher remains the same as long as the family composition remains the same, regardless of the actual unit size rented.

 

(d)       NMHC assigns one bedroom to two people within the following guidelines:

(1)       Persons of different generations, adults of the opposite sex (other than spouses or co-heads), children over 3 years of age and unrelated adults should be allocated a separate bedroom.

(2)       Live-in aides will be provided a separate bedroom.

(3)       Single person families shall be allocated an efficiency or one bedroom unit.

 

(e)       Guidelines for determining certificate/voucher size:

 

Certificate/Voucher Size

Persons in Household

 

Minimum #

Maximum #

0 Bedroom

1

1

1 Bedroom

1

2

2 Bedrooms

2

4

3 Bedrooms

3

6

4 Bedrooms

4

8

5 Bedrooms

6

10

6 Bedrooms

8

12

 

Modified, 1 CMC § 3806(f), (g).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (e).

 

The 2000 amendments amended subsection (d)(1).

 

The Commission deleted former subsection (d) because it duplicated subsection (c).

 

§ 100-80-405  Changes in Unit Size

 

NMHC shall grant exceptions from the standards if the family requests and the NMHC determines the exceptions are justified by the relationship, age, sex, health or disability of family members, or other individual circumstances.

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Part 500 -       Total Tenant Payment (TTP) Determinations

 

§ 100-80-501  Income and Allowances

 

(a)       Income: Income from all sources of each member eighteen years and older of the household is counted.

 

(b)       Annual income: Defined as the gross amount of income anticipated to be received by the family during the twelve months after certification or re-certification. Gross income is the amount of income prior to any HUD allowable expenses or deductions. Annual income is used to determine whether or not applicants are within the applicable income limits.

 

(c)       Adjusted income: Defined as the annual income minus any HUD allowable deductions.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

§ 100-80-505  Definition of Temporarily Absent

 

(a)       NMHC must compute all applicable income of every family member who is on the lease, including those who are temporarily absent. If a family member is gone from the household for a time period of less than six months, the family member will be considered temporarily absent.

 

(b)       Income of persons permanently absent will not be counted. If a family member leaves the household for a period of six months or more or the family declares them absent in writing, the family member will be considered permanently absent and removed from the lease.

 

(c)       It is the responsibility of the head of household to report changes in family composition. NMHC will evaluate absences from the unit using this policy.

 

Modified, 1 CMC § 3806(e).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

§ 100-80-510  Income of Person Permanently Confined to a Nursing Home

 

If a family member is permanently confined to a hospital or nursing home and there is a family member left in the household, the income of the family member confined will be excluded and the remaining family member will not receive disabled/handicap or medical expense deductions for the absent family member.

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

§ 100-80-515  Averaging Income

 

(a)       When annual income cannot be anticipated for a full twelve months, NMHC may average known sources of income that vary to calculate an annual income or annualize current income and conduct an interim reexamination if income changes.

 

(b)       An estimate can be made by averaging for those families whose income fluctuates from month to month, this estimate will be used so that the housing assistance payment does not change from month to month.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

§ 100-80-520  Minimum Income

 

There is no minimum requirement. Families who report zero income are required to complete a written certification each thirty days.

 

Modified, 1 CMC § 3806(e).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

§ 100-80-525  Regular Gifts and Contributions

 

Any contribution or gift received every month or periodically on a regular basis will be considered a “regular” contribution or gift. This includes rent and utility payments made on behalf of the family and other cash or non-cash contributions. It does not include casual contributions or sporadic gifts.

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

§ 100-80-530  Alimony and Child Support

 

(a)       Regular alimony and child support payments are combined as income.

 

(b)       If the amount of child support or alimony received is less than the amount awarded by the court, NMHC must use the amount awarded by the court unless the family can verify they are not receiving the full amount. Accepted verification includes verification from the agency responsible for enforcement collection or has a filed an enforcement or collection action through an attorney.

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

§ 100-80-535  Lump-sum Receipts

 

(a)       Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker’s compensation), capital gains, and settlement for personal or property losses, are not included in income.

 

(b)       Lump-sum payments caused by delays in processing periodic payments (unemployment, AFDC, social security benefits) are not counted as income. Deferred periodic payments will be treated the same as periodic payments which are deferred due to delays in processing.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

§ 100-80-540  Assets Disposed of for Less than Fair Market Value

 

(a)       NMHC will count assets disposed of for less than fair market value during the two years preceding certification or reexamination. NMHC will count the difference between the market value and the actual payment received.

 

(b)       Assets disposed of as a result of foreclosure, bankruptcy, divorce, or separation are not considered assets disposed of for less than fair market value.

 

Modified, 1 CMC § 3806(e).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b). The Commission inserted a comma after the word “divorce” in subsection (b) pursuant to 1 CMC § 3806(g).

 

§ 100-80-545  Child Care Expenses

 

(a)       Child care expenses for children under age thirteen may be deducted from annual income if they enable an adult to work or attend school full time.

 

(b)       Child care expenses cannot be allowed as a deduction if there is an adult household member capable of caring for the child who can provide the child care. Examples of those adult members who would be considered unable to care for the child include a person with disabilities or older person.

 

(c)       Allowability of deductions for child care expenses is based on the following situations:

(1)       Child care to work: The maximum child care expense allowed must be less than the amount earned by the person enabled to work.

(2)       Child care for school: The number of hours claimed for child care may not exceed the number of hours the family member is attending school.

(3)       Rate of expense: NMHC will survey the local care providers in the community as a guideline. The weekly expense for child care will not exceed comparable local practice.

 

Modified, 1 CMC § 3806(e).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

§ 100-80-550  Medical Expenses

 

(a)       Non-prescription medicines must be recommended by a medical physician in order to be considered a medical expense.

 

(b)       Acupressure, acupuncture and related herbal medicines, and chiropractic services will be considered allowable medical expenses if verified by a medical physician.

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

§ 100-80-555  Stipend of Resident/Tenant Member of NMHC Board of Directors or Resident Advisory Board

 

Any monies received by a tenant for serving on NMHC’s Board of Directors or on the NMHC Resident Advisory Board, shall not be considered as part of tenant’s income.

 

Modified, 1 CMC § 3806(g).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000).

 

Commission Comment: The Commission deleted the repeated word “be” to correct a manifest error.

 

Part 600 -       Verification Procedures

 

§ 100-80-601  Methods of Verification and Time Allowed

 

(a)       NMHC will verify information through four methods of verification acceptable to HUD in the following order:

(1)       Third-party written verification;

(2)       Third-party oral with written follow-up;

(3)       Review of documents; or

(4)       Applicant certification.

 

(b)       NMHC will allow two weeks for return of third-party verifications and two weeks to obtain other types of verifications before using the next method.

 

(c)       For applicants, verifications may not be more than sixty days old at the time of certificate/voucher issuance. For participants, they are valid for ninety days from date of receipt.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

Part 700 -       Certification/Voucher Issuance and Briefings

 

§ 100-80-701  Issuance of Certificates/Vouchers

 

When funding is available, NMHC will issue certificates and vouchers to applicants whose eligibility has been determined. The issuance of certificates and vouchers must be within the dollar limitations set by the ACC budget.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

§ 100-80-705  Briefing Types and Required Attendance

 

(a)       Initial Applicant Briefing

(1)       A full HUD-required briefing will be conducted for applicant families who are determined to be eligible for assistance. The briefings will be conducted in group meetings.

(2)       The purpose of the briefing is to explain the documents in the certificate/voucher holder’s packet to families so that they are fully informed about the program. This will enable them to utilize the program to their advantage, and it will prepare them to discuss it with potential owners and property managers.

(3)       NMHC will not issue a certificate or voucher to a family unless the head of household has attended a briefing and signed the certificate or voucher. Applicants who provide prior notice of inability to attend a briefing will automatically be scheduled for the next briefing. Applicants who fail to attend two scheduled briefings, without a valid reason may be denied assistance.

 

(b)       Briefing Packet

(1)       The documents and information provided in the briefing packets for both the certificate and voucher programs will comply with all HUD requirements. NMHC also includes other information and/or materials which are not required by HUD.

(2)       The family is provided with the following information:

(i)        The term of the certificate or voucher.

(ii)       A description of the method used to calculate the assistance payment, information on fair market rents (certificate program), payments standards (voucher program), and utility allowances.

(iii)      The HUD lease addendum and NMHC sample lease.

(iv)      The request for lease approval form and a description of the procedure for requesting approval for a unit.

(v)       The subsidy standards and how the certificate or voucher size relates to the unit size selected.

(vi)      The HUD brochure on lead-based paint hazards.

(vii)     Information on federal, Commonwealth, and local equal opportunity laws including the pamphlet “Fair Housing, It’s Your Right”; the form for reporting suspected discrimination.

(viii)    A list of landlords or other parties willing to lease to assisted families or help in the search.

(ix)      If the family includes a person with disabilities, NMHC will provide a list of available accessible units.

(x)       The family obligations under the program.

(xi)      The grounds for termination of assistance because of family action or failure to act.

(xii)     When NMHC is required to offer an informal hearing, how to request the hearing, and the hearing procedures.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b). The Commission inserted a comma after the word “Commonwealth” in subsection (b)(2)(vii) pursuant to 1 CMC § 3806(g).

 

§ 100-80-710  Security Deposit Requirements

 

Security deposits charged by owners shall not exceed one month’s rent.

 

Modified, 1 CMC § 3806(e).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

§ 100-80-715  Term of Certificate/Voucher

 

During the briefing sessions, each household will be issued a certificate or voucher which represents a contractual agreement between NMHC and the family specifying the rights and responsibilities of each party. It does not constitute admission to the program which occurs when the lease and contract become effective.

 

(a)       Expirations

(1)       The certificate or voucher is valid for a period of sixty calendar days from the date of issuance. The family must submit a request for lease approval and lease within the sixty day period.

(2)       If the certificate or voucher has expired, and has not been extended by NMHC or expires after an extension, the family will be denied assistance. They family will not be entitled to a review or hearing. If the family is currently assisted, they may remain as a participant in their unit if there is an assisted lease/contract in effect.

 

(b)       Extensions

(1)       Extensions are allowed at the discretion of NMHC up to a maximum of one hundred twenty days, generally for the following reasons:

(i)        Extenuating circumstances such as hospitalization or a family emergency for an extended period of time which has affected the family’s ability to find a unit within the initial sixty day period. Verification is required.

(ii)       NMHC is satisfied that the family has made a reasonable effort to locate a unit, including seeking the assistance of NMHC, throughout the initial sixty day period.

(iii)      The family was prevented from finding a unit due to disability accessibility requirements or large bedroom size unit requirement.

(2)       Extensions are granted in increments of thirty days. All extensions must be approved by the Section 8 specialist. A maximum of two thirty day extensions are allowed.

 

(c)       Assistance to Certificate/Voucher Holders

(1)       Families who require additional assistance during their search may call NMHC’s Section 8 office to request assistance. Certificate and voucher holders will be notified at their briefing session that NMHC periodically updates the listing of available units and how the updated list may be obtained.

(2)       NMHC will assist families with negotiations with owners and provide other assistance related to the families’ search for housing.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

§ 100-80-720  Interchangeability Between Certificate and Voucher

 

If the family asks to change the form of assistance, NMHC will determine if the requested form of assistance is available and will notify the family within ten days. If NMHC denies the family’s request, an informal hearing will not be offered.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Part 800 -       Request for Lease Approval and Contract Execution

 

§ 100-80-801  Request for Lease Approval

 

(a)       The request for lease approval (RFLA) and a copy of the proposed lease must be submitted by the family during the term of the certificate of voucher.

 

(b)       The request for lease approval must be signed by both the owner and certificate/voucher holder. The lease may be executed up to sixty days prior to contract execution but cannot be executed without approval of NMHC.

 

(c)       NMHC will not permit the family to submit more than one RFLA at a time.

 

(d)       NMHC will review the documents to determine whether or not they are approvable. For the certificate program, NMHC will determine that the gross rent is within the applicable FMR (unless an exception rent is approved).

 

(e)       The request for lease approval will be approved if:

(1)       The unit is an eligible type of housing;

(2)       The unit meets HUD’s housing quality standards (and any additional local criteria as identified in the Administrative Plan, codified in this chapter);

(3)       The contract rent is reasonable. Rent and utility allowance do not exceed current FMR unless an exception is approved;

(4)       The security deposit amount is approvable; and

(5)       The proposed lease complies with HUD and NMHC requirements and Commonwealth/local law.

 

(f)        Disapproval of RFLA

(1)       If NMHC determines that the request for lease approval cannot be approved for any reason, the landlord and the family will be notified. NMHC will instruct the owner and family of the steps that are necessary to approve the request.

(2)       The owner will be given ten calendar days to submit an approvable RFLA from the date of disapproval.

(3)       When, for any reason, an RFLA is not approved, NMHC will furnish another RFLA form to the family along with the notice of disapproval so that the family can continue to search for eligible housing.

 

Modified, 1 CMC § 3806(d), (e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (f).

 

§ 100-80-805  Eligible Types of Housing

 

(a)       NMHC will approve any of the following types of housing in the certificate and voucher programs:

(1)       All structure types can be utilized.

(2)       Manufactured homes where the tenant leases the mobile home and the pad.

(3)       Manufactured homes where the tenant owns the mobile home and leases the pad (certificate program).

(4)       Independent group residences.

 

(b)       A family can own a rental unit but cannot reside in it while being assisted, except in the certificate program for manufactured homes when the tenant owns the mobile home and leases the pad. A family may lease in and have an interest in a cooperative housing development. Families may lease properties owned by relatives, as long as those owners and units meet the other programs requirements. Owners should be aware that Congress is considering action to disqualify housing owned by relatives as eligible housing.

 

(c)       NMHC may not permit a certificate or voucher holder to lease a unit which is receiving project-based Section 8 assistance or any duplicative rental subsidies.

 

(d)       NMHC will not approve:

(1)       A unit occupied by the owner or by any person with an interest in the unit, other than manufactured homes described above;

(2)       Nursing homes or other institutions that provide care;

(3)       School dormitories and institutional housing; or

(4)       Any other types of housing prohibited by HUD.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (d).

 

The 2000 amendments amended subsection (c).

 

§ 100-80-810  Rent Limitations

 

(a)       In the certificate program, NMHC may approve exception rents that are up to ten percent above the FMR for no more than twenty percent of budgeted units.

 

(b)       Rent reasonableness will still be used as a measure of whether the rent is approvable.

 

(c)       NMHC manually tracks all units for which an exception rent is approved to assure that not more than twenty percent of the units under the certificate program (based on the number of units shown on line 4 of the last budget submitted to HUD) are approved.

 

(d)       For certificate and voucher programs, NMHC will make a determination as to the reasonableness of the proposed rent in relation to comparable units available for lease on the private unassisted market, and the rent charged by the owner for a comparable assisted or unassisted unit in the building or premises.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (d).

 

§ 100-80-815  Disapproval of Proposed Rent

 

(a)       In the certificate program, if the gross rent proposed exceeds the FMR, NMHC may suggest that the owner reduce the contract rent or include some or all utilities in contract rent.

 

(b)       If the owner accepts the offer of a reduced rent, NMHC will continue processing the request for lease approval and lease. If the revised rent involves a change in the provision of utilities, a new request for lease approval must be submitted by the owner.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

§ 100-80-820  Information to Owners

 

(a)       NMHC is required to provide prospective owners with the address of the applicant and the names and addresses of the current and previous landlord if known.

 

(b)       NMHC will inform owners that it is the responsibility of the landlord to determine the suitability of prospective tenants. Owners will be encouraged to screen applicants for rental payment history, eviction history, damage to units, and other factors related to the family’s suitability as a tenant.

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

§ 100-80-825  Owner Disapproval

 

(a)       For purposes of this section, “owner” includes a principal or other interested party.

 

(b)       NMHC will disapprove the owner for the following reasons:

(1)       HUD has informed NMHC that the owner has been disbarred, suspended, or subject to a limited denial of participation under 24 CFR part 24;

(2)       HUD has informed NMHC that the federal government has instituted an administrative or judicial action against the owner for violation of the Fair Housing Act or other federal equal opportunity requirements and such action is pending;

(3)       HUD has informed NMHC that a court or administrative agency has determined that the owner violated the Fair Housing Act or other federal equal opportunity requirements;

(4)       The owner has violated obligations under a housing assistance payment contract under Section 8 of the 1937 Act;

(5)       The owner has committed fraud, bribery, or any other corrupt act in connection with any federal housing program;

(6)       The owner has engaged in drug trafficking;

(7)       The owner has a history or practice of non-compliance with the HQS for units leased under the tenant-based programs or with applicable housing standards of units leased with project-based Section 8 assistance or leased under any other federal housing program;

(8)       The owner has a history or practice of renting units that fail to meet Commonwealth or local housing codes; or

(9)       The owner has not paid Commonwealth or local real estate taxes, fines or assessments.

 

(c)       Information for W-9 Forms

(1)       Owners must provide the current address of their personal residence. If families lease properties owned by relatives, the owner’s current address will be compared to the subsidized unit’s address.

(2)       Owners must provide an employer identification number or Social Security number. Owners must also submit proof of ownership of the property, such as a deed. A certificate of compliance and a copy of the management agreement is required if the property is managed by a management agent.

(3)       The owner must provide a business or home telephone.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c). The Commission inserted a comma after the word “bribery” in subsection (b)(5) pursuant to 1 CMC § 3806(g).

 

§ 100-80-830  Change in Ownership

 

(a)       A change in ownership requires execution of a new contract.

 

(b)       NMHC will process a change of ownership only upon the written request of the new owner and only if accompanied by a copy of the escrow statement or other document showing the transfer of title and the employee identification number or Social Security number of the new owner.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

Part 900 -       Housing Quality Standards and Inspections

 

§ 100-80-901  Housing Quality Standards and Inspections

 

(a)       Housing quality standards (HQS) are the HUD minimum quality standards for housing units participating in tenant-based rental assistance programs. HQS is designed to ensure that the unit is decent, safe, and sanitary. HQS standards are required both at initial occupancy and during the term of the lease. HQS standards apply to the building and premises, as well as the unit.

 

(b)       All units must adhere to the acceptability and performance criteria in program regulations and the HUD Inspection Booklet (24 CFR § 982.401).

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b). The Commission inserted a comma after the word “safe” in subsection (a) pursuant to 1 CMC § 3806(g).

 

Part 1000 -     Owner Rents, Rent Reasonableness and Payment Standards

 

§ 100-80-1001                        Making Payments to Owners

 

(a)       Once the HAP contract is executed, NMHC begins processing payments to the landlord. A HAP register will be used as a basis for monitoring the accuracy and time lines of payments. Changes are made automatically to the HAP register for the following month.

 

(b)       Checks may not be picked up by the owner at NMHC.

 

(c)       Checks that are not received will not be replaced until a written request has been received from the payee and a stop payment has been put on the check.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

§ 100-80-1005                        Rent Reasonableness Determinations

 

(a)       Rent reasonableness determinations are made when units are placed under HAP contract for the first time, when owners request annual or special contract rent adjustments under the certificate program, and when an owner requests a rent increase in the voucher program.

 

(b)       For the certificate and voucher program, NMHC will determine and document on a case-by-case basis that the approved rent:

(1)       Does not exceed rents currently charged by the same owner for an equivalent assisted or unassisted unit in the same building or complex, and

(2)       Is reasonable in relation to rents currently charged by other owners for comparable units in the unassisted market.

 

(c)       At least two comparable units will be used for each rent determination, one of which must be from the first category above if possible. All comparables must be based on the rent that the unit would command if leased in the current market.

 

(d)       The data for other unassisted units will be gathered from newspapers, realtors, professional associations, inquiries of owners, market surveys, and other available sources.

 

(e)       The following items will be used for rent reasonableness documentation:

(1)       Square footage

(2)       Number of bedrooms

(3)       Facilities

(4)       Location

(5)       Number of bathrooms

(6)       Quality

(7)       Amenities

(8)       Date built

(9)       Unit type

(10)     Management and maintenance services

(11)     Building material.

 

Modified, 1 CMC § 3806(f), (g).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (e).

 

In subsection (e)(11), the Commission inserted the final period.

 

§ 100-80-1010                        Payment Standards for the Voucher Program

 

The payment standard is initially set by NMHC at the fair market rent in effect at the time the annual contributions contract for the first increment of voucher funding is approved by HUD. The payment standard is used to determine the maximum subsidy which can be paid by NMHC on behalf of the family.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

§ 100-80-1015                        Adjustments to Payment Standards

 

(a)       Payment standards may be adjusted to increase housing assistance payments in order to keep a family’s rents affordable. NMHC will not raise the payment standards so high that the number of families that can be assisted under available funding is substantially reduced. Nor will NMHC raise standards if the need is solely to make “high end” units available to voucher holders.

 

(b)       NMHC will review the payment standard annually to determine whether an adjustment should be made for some or all unit sizes. The payment standard will be reviewed according to HUD’s requirements and if an increase is warranted, the payment standard will be adjusted within 80% of the current fair market rent.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

§ 100-80-1020                        Rent Adjustments

 

(a)       Certificate Program

(1)       Rent adjustments to owners under the certificate program are allowed and are effective on the anniversary date of the HAP contract (unless the unit is in a failed condition at that time) one time per year or the first of the next month subsequent to the owner’s request. Owners must request the rent adjustment in writing on the form provided by NMHC. If the request is not received within 60 days of the anniversary date, NMHC will not approve an annual adjustment for that year. The change in rent does not affect the automatic renewal of the lease and does not require a new lease or contract. NMHC will execute a contact lease amendment that is attached to the current lease. A notice of rent change will be sent to the owner and the family.

(2)       Rent increases must pass the rent reasonableness test and may not exceed the adjustment factor published annually by HUD (even if justified by rent reasonableness).

 

(b)       Disapproval of Requests for Adjustment

If NMHC rejects the owner’s request for rent adjustment as exceeding rent reasonableness and the owner rejects NMHC’s determination, the owner may offer the tenant a new lease (after receiving NMHC’s approval with a sixty-day notice to the tenant). If the tenant refuses or the owner does not offer a new lease, the owner may terminate tenancy for a business or economic reason in accordance with the lease after giving 60 days notice to NMHC and the family as required by program regulations. NMHC will then issue a new certificate to the family.

 

(c)       Voucher Program

Owners may not request rent adjustments in the voucher program that are effective prior to the expiration of the first year of the lease. Rent adjustments are effective the first of the month subsequent to the approval of increase.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

Part 1100 -     Re-certifications

 

§ 100-80-1101                        Annual Activities

 

(a)       There are three activities NMHC must conduct on an annual basis. These activities will be coordinated whenever possible:

(1)       Re-certification of income and family composition

(2)       HQS inspection

(3)       Contract rent adjustment when requested by owner (certificate only).

 

(b)       NMHC produces a monthly listing of units under contract to ensure that timely reviews of contract rent, housing quality, and factors related to total tenant payment can be made.

 

(c)       Annual activities for contracts that did not commence on the first of the month must be completed no later than the first of the month in which the lease was effective.

 

Modified, 1 CMC § 3806(f), (g).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

In subsection (a)(3), the Commission inserted the final period.

 

§ 100-80-1105                        Annual Re-certification

 

Families are required to be re-certified at least annually for continued eligibility and rent determination.

 

(a)       Re-certification Notice to the Family

NMHC will maintain a re-certification tracking system and the household will be notified by mail of the date and time for their interview at least 90 days in advance of the anniversary date.

 

(b)       Requirements to Attend

All adult household members will be required to attend the re-certification interview. If the head of the household is unable to attend the interview, the appointment will be rescheduled.

 

(c)       Failure to Respond to Notification to Re-certify

(1)       If the family does not appear for the re-certification interview, and has not rescheduled or made prior arrangements with NMHC, NMHC will reschedule a second appointment.

(2)       If the family fails to appear for the second appointment, and has not rescheduled or made prior arrangements, the Section 8 specialist will schedule a mandatory meeting. Failure to attend this mandatory meeting will result in termination.

(3)       Exceptions to these policies may be made by the Section 8 specialist if the family is able to document an emergency situation that prevented them from canceling or attending the appointment or for other valid mitigating circumstance.

 

(d)       Tenant Rent Changes

Any tenant rent changes will be effective on the anniversary date or on the first day of the month following a thirty day notice if there is an increase in rent.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (d) and removed the parentheses around subsection (c)(3) pursuant to 1 CMC § 3806(a).

 

§ 100-80-1110                        Reporting Interim Changes

 

NMHC requires program participants to report all changes in household composition to NMHC between annual re-certifications. This includes additions due to birth, adoption, and court-awarded custody. The family must obtain NMHC approval prior to all other additions to the household.

 

(a)       Interim Re-certification Policy

(1)       NMHC will conduct interim re-certifications when families have an increase in income or change in family size.

(2)       Families are required to report all increases and decreases in income/assets of all the household members or increases/decreases in family size to NMHC within 10 days of the change. If a family fails to report a change in income/assets, then NMHC may conduct an interim re-certification upon obtaining evidence of said change in income/assets/family size. If the re-certification results in an increase in rent, then said increase shall be charged retroactively to the date of income/asset/family size change. Failure to report a change in income/asset/family size may provide grounds to terminate assistance.

 

(b)       HA Errors

If NMHC makes a calculation error at admission to the program or at an annual re-examination, an interim reexamination will be conducted to correct the error, but the family will not be charged retroactively.

 

(c)       Duty of Family to Disclose Receipt of Notification from HUD Concerning Family Income

(1)       If any member of a family receives notification from HUD as to their income, whether said notice pertains to the amount, source, or other aspect of their income, then the family must notify NMHC of their receipt of the HUD notification within ten days of their receipt of said notification. Failure by the family to notify NMHC of said notification is grounds for termination of assistance.

(2)       Upon NMHC receiving notice of a family’s receipt of a HUD notification, NMHC shall conduct an interim re-certification of the family.

 

(d)       Other Interim Reporting Issues

(1)       An interim re-certification does not affect the date of the annual re-certification.

(2)       An interim re-certification will be scheduled for families at zero income each 30 days. Zero income families are required to complete a family expense form.

 

Modified, 1 CMC § 3806(e).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (d).

 

The 2000 amendments added a new subsection (c), re-designated subsection (d), and amended subsections (a)(1) and (a)(2). The Commission inserted a comma after the word “adoption” in the initial paragraph pursuant to 1 CMC § 3806(g).

 

§ 100-80-1115                        Notification of Results of Re-certifications

 

(a)       The HUD form 50058 will be completed and transmitted as required by HUD.

 

(b)       The notice of tenant rent change is mailed to the owner and the tenant following a re-certification even if rent and lease remain the same. Signatures are not required by NMHC. If the family disagrees with the rent adjustment, the family must notify their caseworker to resolve the disagreement.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

§ 100-80-1120                        Continuance of Assistance for “Mixed Families”

 

(a)       Under the non-citizens rule, “mixed” families are families that include at least one citizen or eligible immigrant and any number of ineligible members.

 

(b)       “Mixed” families who were participants on June 19, 1995, shall continue receiving full assistance if they meet the following criteria:

(1)       The head of household or spouse is a U.S. citizen or has eligible immigrant status; and

(2)       All members of the family other than the head of household, the spouse, parents of the head of household, parents of the spouse, and children of the head of household or spouse are citizens or eligible immigrants. The family may change the head of household to qualify under this provision.

 

(c)       If they do not qualify for continued assistance, the member(s) that causes the family to be ineligible for continued assistance may move, the family may choose prorated assistance or NMHC may offer temporary deferral of termination.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (c).

 

The 2000 amendments amended subsections (b)(2) and (c).

 

Part 1200 -     Moves with Continued Assistance/ Portability

 

§ 100-80-1201                        Allowable Moves

 

A family may move to a new unit if:

 

(a)       The assisted lease for the old unit has terminated because NMHC has terminated the HAP contract for owner breach, or the lease was terminated by mutual agreement of the owner and the family.

 

(b)       The owner has given the family a notice to vacate, or has commenced an action to evict the tenant, or has obtained a court judgment or other process allowing the owner to evict the family (unless assistance to the family will be terminated).

 

(c)       The family has given proper notice of lease termination (if the family has a right to terminate the lease on notice to owner).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

§ 100-80-1205                        Restrictions on Moves

 

(a)       Families will not be permitted to move within NMHC’s jurisdiction during the initial year of assisted occupancy.

 

(b)       Families will not be permitted to move outside NMHC’s jurisdiction under portability procedures during the initial year of assisted occupancy.

 

(c)       Families will be permitted to move only once in a 12-month period (after the first year of tenancy).

 

(d)       NMHC will deny permission to move if there is insufficient funding for continued assistance. NMHC may deny permission to move to if:

(1)       The family has violated a family obligation.

(2)       The family owes NMHC money and/or the owner money.

(3)       The family has moved or been issued a certificate or voucher twice within the last twelve months.

 

(e)       The Section 8 specialist may make exceptions to these restrictions if there is an emergency reason for the move over which the participant has no control or for mitigating circumstances beyond the control of the family.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (e).

 

§ 100-80-1210                        Procedure for Moves

 

(a)       Notice Requirements

(1)       Briefing sessions emphasize the family’s responsibility to give the owner and NMHC proper written notice of any intent to move.

(2)       The family must give the owner at least thirty days (not to exceed sixty days) written notice of intent to vacate as specified in the lease and must give a copy to NMHC simultaneously.

(3)       For units under a certificate contract effective before October 2, 1995, if the family vacates the unit without proper notice in writing to the owner, the family will be responsible for any vacancy loss paid by NMHC.

 

(b)       Time of Contract Change

(1)       A move within the same building or project, or between buildings owned by the same owner, will be processed like any other move with no overlapping assistance.

(2)       In a move, assistance stops at the old unit at the end of the month in which the tenant ceased to occupy. Assistance will start on the new unit on the effective date of the lease and contract. Assistance payments may overlap for the month in which the family moves in certain circumstances as approved by the Section 8 specialist.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

The 2000 amendments amended subsection (a)(1).

 

§ 100-80-1215                        Portability

 

Portability applies to families moving out of or into NMHC’s jurisdiction within the United States and its territories. Under portability, families are eligible to receive assistance to lease a unit outside of the initial HA’s jurisdiction. The unit may be located:

 

(a)       In the same state as the initial HA;

 

(b)       In the same metropolitan statistical area (MSA) as the initial HA, but in a different state;

 

(c)       In an MSA adjacent to the MSA of the initial HA, but in a different state; and

 

(d)       In the jurisdiction of an HA anywhere within the United States that administers a tenant based program.

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The 2000 amendments amended the opening paragraph.

 

§ 100-80-1220                        Outgoing Portability

 

(a)       When a family requests to move outside of NMHC’s jurisdiction, the request must specify the area to which the family wants to move.

 

(b)       If the family is moving to a unit located in the same state as the initial HA, in the same MSA, but in a different state, or in an adjacent MSA in a different state, and there is not an HA in the area where the unit is located, the initial HA will be responsible for the administration of the family’s assistance.

 

(c)       If there is more than one HA in the area in which the family has selected a unit, the HA will choose the receiving HA.

 

(d)       Restrictions on Portability

(1)       Families will not be permitted to exercise portability during the initial twelve month period after admission to the program, if neither the head of household or spouse had a domicile (legal residence) in the CNMI at the date of their initial application for assistance.

(2)       If the family is in violation of a family obligation.

(3)       If the family owes money to NMHC.

 

(e)       Outgoing Portability Procedures

(1)       NMHC will provide pre-portability counseling for those families who express an interest in portability. If the family is utilizing portability for their initial lease-up, NMHC will determine if the family is within the very low income limit of the receiving HA. If the receiving HA will absorb and the family will be changing its form of assistance, NMHC will determine if the family is within the low income limit of the receiving HA and advise the family accordingly.

(2)       NMHC will notify the receiving HA that the family wishes to relocate into its jurisdiction and advise the family how to contact and request assistance from the receiving HA.

(3)       NMHC will provide the following documents and information to the receiving HA:

(i)        A copy of the family’s certificate or voucher, with issue and expiration dates, formally acknowledging the family’s ability to move under portability.

(ii)       The most recent HUD 50058 form and verifications.

(iii)      Declarations and certifications of U.S. citizenship/eligible immigrant status.

(iv)      The complete portability form (HUD-52665).

(4)       The receiving HA must notify NMHC within 6 months of the following:

(i)        The receiving HA decides to absorb the family into their own program.

(ii)       The family leases up or fails to submit a request for lease approval by the required date.

(iii)      Assistance to a portable family is terminated by the receiving HA.

(iv)      The family requests to move to an area outside the receiving HA’s jurisdiction.

 

(f)        Claims

NMHC will be responsible for collecting amounts owed by the family for claims paid and for monitoring the repayment. NMHC will notify the receiving HA if the family is in arrears or if the family has refused to sign a repayment agreement, and the receiving HA will be asked to terminate assistance to the family as allowed by the Administrative Plan codified in this chapter.

 

Modified, 1 CMC § 3806(d), (e), (f), (g).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (f).

 

The 2000 amendments amended subsections (d)(1).

 

In subsection (e)(3)(iv), the Commission inserted the final period.

 

§ 100-80-1225                        Incoming Portability

 

(a)       Absorption or Administration

(1)       NMHC will accept a family with a valid certificate/voucher from another jurisdiction and absorb the certificate/voucher provided that funding is available. The family will be issued a “portability” certificate or voucher by NMHC with the same start date. NMHC may grant extensions in accordance with the Administrative Plan in this chapter.

(2)       NMHC will issue a “portability certificate” or “portability voucher” according to its own subsidy standards. If the family has a change in family composition which would change the certificate or voucher size, NMHC will change to the proper size based on its own subsidy standards.

(3)       NMHC will decide whether to extend the “portability certificate/voucher” and for what period of time. NMHC’s policy on extensions will apply. However, if the family decides not to lease-up in the CNMI, the family must request an extension from the initial HA.

 

(b)       Income and TTF of Incoming Portables

As receiving HA, NMHC will conduct a re-certification interview.

 

(c)       Requests for Lease Approval

(1)       A briefing will be mandatory for all portability families.

(2)       When the family submits a request for lease approval, it will be processed using NMHC’s policies. If the family does not submit a request for lease approval or does not execute a lease, the initial HA will be notified within six months by NMHC.

(3)       NMHC will notify the family of its responsibility to contact the initial HA if the family wishes to move outside the CNMI under continued portability.

 

(d)       Terminations

The initial HA will be responsible for collecting amounts owed by the family for claims paid and for monitoring repayment. If the initial HA notifies NMHC that the family is in arrears or the family has refused to sign a repayment agreement, NMHC will terminate assistance to the family.

 

(e)       Billing Procedures

Note: Billing procedures are only applicable if funds are not sufficient to absorb incoming certificates/vouchers.

(1)       As receiving HA, NMHC will bill the initial HA monthly for housing assistance payments. The billing cycle for other amounts, including administrative fees and special claims will be monthly unless requested otherwise by the initial HA.

(2)       NMHC will bill 100% of the housing assistance payment, 100% of special claims and 80% of the administrative fee (at the initial HA’s rate) and any other HUD-approved fees, for each “portability” certificate/ voucher leased as of the first day of the month.

(3)       NMHC will notify the initial HA of changes in subsidy amounts and will expect the initial HA to notify NMHC of changes in the administrative fee amount to be billed.

 

Modified, 1 CMC § 3806(d), (e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (e).

 

The 2000 amendments amended subsections (a)(2), (a)(3), (c)(3) and (e)(2).

 

Part 1300 -     Denial or Termination of Assistance

 

§ 100-80-1301            Grounds for Denial/Termination

 

If denial or termination is based upon behavior resulting from a disability, NMHC will delay the denial or termination in order to determine if there is an accommodation which would negate the behavior resulting from the disability.

 

(a)       Form of Denial/Termination

(1)       Denial of assistance for an applicant may include any or all of the following:

(i)        Denial for placement on NMHC waiting list.

(ii)       Denying or withdrawing a certificate or voucher.

(iii)      Refusing to enter into a HAP contract or approve a lease.

(iv)      Refusing to process or provide assistance under portability procedures.

(2)       Termination of assistance for a participant may include any or all of the following:

(i)        Refusing to enter into a HAP contract or approve a lease.

(ii)       Terminating housing assistance payments under an outstanding HAP contract.

(iii)      Refusing to process or provide assistance under portability procedures.

 

(b)       Mandatory Denial and Termination

NMHC must deny assistance to applicants, and terminate assistance for participants:

(1)       If any member of the family refuses to sign and submit HUD or NMHC required consent forms for obtaining information.

(2)       If no member of the family is a U.S. citizen or eligible immigrant.

(3)       If the family is under contract and 180 days have elapsed since the NMHC’s last housing assistance payment was made.

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

§ 100-80-1305                        Family Obligations for Rental Assistance Programs

 

(a)       The family must supply any information that NMHC or HUD determines is necessary in the administration of the program, including submission of required evidence of citizenship or eligible immigration status (as provided by 24 CFR part 812*). “Information” includes any requested certification, release, or other documentation.

 

(b)       The family must supply any information requested by NMHC or HUD for use in a regularly scheduled re-examination or interim re-examination of family income and composition in accordance with HUD requirements.

 

(c)       The family must disclose and verify Social Security numbers (as provided by 24 CFR part 750*) and must sign and submit consent forms for obtaining information in accordance with 24 CFR parts 5, 760, 813, and other applicable HUD regulations.

 

(d)       All information supplied by the family must be true and complete.

 

(e)       The family is responsible for an HQS breach caused by the family as described in 982.404(b)*.

 

(f)        The family must allow NMHC to inspect the unit at reasonable times and after reasonable notice.

 

(g)       The family may not commit any serious or repeated violation of the lease.

 

(h)       The family must notify the owner and, at the same time, notify NMHC before the family moves out of the unit or terminates the lease on notice to the owner.

 

(i)        The family must promptly give NMHC a copy of any owner eviction notice.

 

(j)        The family must use the assisted unit for residence by the family. The unit must be the family’s only residence.

 

(k)       The composition of the assisted family residing in the unit must be approved by NMHC. The family must promptly inform NMHC of the birth, adoption, or court awarded custody of a child. The family must request NMHC approval to add any other family member as an occupant of the unit.

 

(l)        The family must promptly notify NMHC if any family member no longer resides in the unit.

 

(m)      If NMHC has given approval, a foster child or a live-in aide may reside in the unit. If the family does not request approval or NMHC approval is denied, the family may not allow a foster child or live-in aide to reside with the assisted family.

 

(n)       Members of the household may engage in legal profit-making activities in the unit, but only if such activities are incidental to primary use of the unit as a residence by members of the family and only if the owner agrees.

 

(o)       The family must not sublease or let the unit.

 

(p)       The family must not assign the lease or transfer the unit.

 

(q)       The family must supply any information or certification requested by NMHC to verify that the family is living in the unit, or relating to family absence from the unit, including any NMHC-requested information or certification on the purposes of family absences. The family must cooperate with NMHC for this purpose. The family must promptly notify NMHC of extended absence from the unit.

 

(r)        The family must not own or have any interest in the unit.

 

(s)        The members of the family must not commit fraud, bribery, or any other corrupt or criminal act in connection with federal and/or Commonwealth housing programs.

 

(t)        The members of the family may not engage in drug-related criminal activity or violent criminal activity in or about the unit and/or project.

 

(u)       An assisted family, or members of the family, may not receive Section 8 tenant-based assistance while receiving another housing subsidy, for the same unit or for a different unit, under any duplicative (as determined by HUD or in accordance with HUD requirements) federal, Commonwealth, or local housing assistance program.

 

(v)       Housing Authority Discretion

(1)       In deciding whether to deny or terminate assistance because of action or failure to act by members of the family, NMHC has discretion to consider all of the circumstances in each case, including the seriousness of the case, the extent of participation or culpability of individual family members, the length of time since the violation occurred and more recent record of compliance and the effects of denial or termination of assistance on other family members who were not involved in the action or failure to act.

(2)       NMHC may impose, as a condition of continued assistance for other family members, a requirement that family members who participated in or were culpable for the action or failure will not reside in the unit NMHC may permit the other members of the family to continue in the program.

 

* So in original. See Commission Comment.

 

Modified, 1 CMC § 3806(f), (g).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The final paragraph was not designated. The Commission designated subsection (v).

 

The 2000 amendments amended subsection (c).

 

In subsection (c), the Commission changed “part” to “parts” to correct a manifest error. The Commission inserted commas after the words “adoption” in subsection (k) and “bribery” in subsection (s) pursuant to 1 CMC § 3806(g).

 

Section 982.404(b), referenced in subsection (e), does not exist in the original regulation. 24 CFR 982.404(b) describes HQS breaches.

 

24 CFR Part 812, referenced in subsection (a), and Parts 750, 760, and 813, referenced in subsection (c), do not exist.

 

§ 100-80-1310                        Enforcing Family Obligations; Explanation & Terms

 

(a)       “Promptly” when used with the family obligations always means “within ten days.” Denial or termination of assistance is always optional except where the plan in this chapter or HUD or NMHC regulations state otherwise.

 

(b)       HQS breach: The inspectors and Section 8 specialist will determine if an HQS breach as identified by HUD regulations is the responsibility of the family. Families may be given extensions to cure HQS breaches by the Section 8 specialist.

 

(c)       Lease violations: The following criteria will be used to decide if a serious or repeated violation of the lease will cause a termination of assistance:

(1)       If the owner terminates tenancy through court action for serious or repeated violation of the lease.

(2)       If there are police reports, neighborhood complaints or other third party information, and NMHC has verified the information.

 

(d)       Notification of eviction: If the family requests assistance to move and they did not notify NMHC of an eviction within ten days of receiving the notice of lease termination, the move will be denied.

 

(e)       Proposed additions to the family will be denied to:

(1)       Persons who have been evicted from public housing for drug-related or violent criminal activities.

(2)       Persons who have previously violated a family obligation as stated in this plan, or HUD or NMHC regulations.

(3)       Persons who have been a head of household or spouse whose assistance has been terminated under the certificate or voucher program.

(4)       Persons who do not meet the NMHC’s definition of family.

(5)       Persons who commit fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program.

(6)       Persons who currently owe rent or other amounts to NMHC or to another HA in connection with Section 8 or public housing assistance under the 1937 Act.

(7)       Persons who have engaged in or threatened abusive or violent behavior toward NMHC personnel.

 

(f)        Family member move out: Families are required to notify NMHC if any family member leaves the assisted household. When the family notifies NMHC, they must furnish the following information:

(1)       The date the family member moved out.

(2)       The new address, if known, of the family member.

(3)       A statement as to whether the family member is temporarily or permanently absent.

 

(g)       Limitation on profit-making activity in unit:

(1)       If the business activity area results in the inability of the family to use any of the critical living areas, such as a bedroom utilized for a business which is not available for sleeping, it will be considered a violation.

(2)       If NMHC determines that the use of the unit as a business is not incidental to its use as a dwelling unit, then said business use of the unit must cease, or assistance may be terminated.

 

(h)       Interest in unit: The owner may not reside in the assisted unit regardless of whether s/he is a member of the assisted family, unless the family owns the mobile home and rents the pad under the certificate program.

 

(i)        Fraud:

(1)       In each case, NMHC will consider which family members were involved, the circumstances, and any hardship that might be caused to innocent members.

(2)       In the event of false citizenship claims, NMHC will give the family member the opportunity to elect not to contend their status in lieu of termination of the entire family.

 

(j)        Drug-related or violent criminal activity:

(1)       Drug-related criminal activity means:

(i)        The manufacture, sale or distribution, or the possession with intent to manufacture, sell or distribute, of a controlled substance (as defined in the Federal Controlled Substance Act);

(ii)       The use or possession (other than with intent to manufacture, sell, or distribute) of a controlled substance.

(iii)      Drug-related criminal activity does not include the prior use or possession of a controlled substance if the family member had an addiction to the substance and has recovered or is recovering from the addiction and does not currently use or possess the substance.

(2)       Violent criminal activity includes:

(i)        Any criminal activity, that has as one of its elements, the use, attempted use, or threatened use, of physical force against a person or property; and

(ii)       The activity is being engaged in by any family member.

 

(k)       Notice of termination of assistance

In any case where NMHC decides to terminate assistance to the family, NMHC must give the family written notice which states:

(1)       The reason(s) for the proposed termination,

(2)       The effective date of the proposed termination,

(3)       The family’s right, if they disagree, to request an informal hearing to be held before termination of assistance.

(4)       The date by which a request for an informal hearing must be received.

 

(l)        NMHC will simultaneously provide written notice of the contract termination to the owner so that it will coincide with the termination of assistance. The notice to the owner will not include any details regarding the reason for termination of assistance.

 

Modified, 1 CMC § 3806(d), (e), (f), (g).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (l).

 

The 2000 amendments amended subsections (a), (b), (e)(2) and (g)(2).

 

In subsection (e)(4), the Commission changed the final comma to a period for consistency within the subsection. The Commission inserted a comma after the word “bribery” in subsection (e)(5) pursuant to 1 CMC § 3806(g).

 

§ 100-80-1315                        Procedures for Non-citizens

 

(a)       Termination Due to Ineligible Immigrant Status

(1)       Assistance may not be terminated while verification of the participant family’s eligible immigration status is pending.

(2)       Participant families in which all members are neither U.S. citizens nor eligible immigrants must have their assistance terminated. They must be given an opportunity for a hearing.

 

(b)       Temporary Deferral of Termination of Assistance

(1)       Ineligible families who were participants as of June 19, 1995, may request a temporary deferral of termination of assistance in order to allow time to locate affordable housing and thereby preserve the family.

(2)       Temporary deferral of termination of assistance is also available to mixed families who were participants on June 19, 1995, who elect not to accept prorated assistance, and are not eligible for continued assistance. NMHC must allow the mixed family time to find housing for ineligible members or for the entire family by deferring the termination.

(3)       Mixed families who choose temporary deferral of termination of assistance may change to prorated assistance at the end of any deferral period, if they have made a good-faith effort to locate housing.

 

(c)       Criteria for Approving Temporary Deferral of Termination of Assistance

(1)       NMHC will grant temporary deferral so long as the family makes reasonable efforts to find affordable housing.

(2)       Affordable housing is defined as housing that is standard and of appropriate size, based on HQS, and for which the rent plus utilities is no more than twenty-five percent greater than the NMHC calculated total tenant payment.

(3)       To determine whether a family is eligible for temporary deferral of termination of assistance or for a renewal of temporary deferral of termination of assistance, NMHC will:

(i)        Require a search record to document the family’s efforts to locate housing before granting or extending temporary deferral of termination of assistance.

 

(d)       Length of Deferral

(1)       The initial temporary deferral is granted for an interval not to exceed six months. Additional deferrals can be made up to a maximum of three years. A notice is sent to the family at the beginning of each deferral period reminding them of their ineligibility for full assistance and their responsibility to seek other housing.

(2)       The family will be notified in writing sixty days before the end of the three year maximum deferral period that there cannot be another deferral, and will be offered the option of prorated assistance if they are a mixed family and have made a good-faith effort to locate affordable housing.

 

(e)       False or Incomplete Information

(1)       When NMHC has clear, concrete, or substantial documentation (such as a permanent resident card or information from another agency) that contradicts the declaration of citizenship made by an applicant or participant, an investigation will be conducted and the individual will be given an opportunity to present relevant information.

(2)       If the individual is unable to verify their citizenship, NMHC may give him/her an opportunity to provide a new declaration as an eligible immigrant or to elect not to contend their status. NMHC will then verify eligible status, deny, terminate, or prorate as applicable.

(3)       NMHC will deny or terminate assistance based on the submission of false information or misrepresentations.

 

(f)        Procedure for Denial or Termination

(1)       If the family (or any member) claimed eligible immigrant status and the INS primary and secondary verifications failed to document the status, the family may make an appeal to the INS and request a hearing with NMHC either after the INS appeal or in lieu of the INS appeal.

(2)       After NMHC has made a determination of ineligibility, the family will be notified of the determination and the reasons and informed of the option for prorated assistance (if applicable) or for participants who qualify, for temporary deferral of termination of assistance.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (f).

 

The 2000 amendments amended subsection (c)(2).

 

§ 100-80-1320                        $0 Assistance Tenants

 

(a)       Old Contracts

For contracts which were effective prior to October 2, 1995, NMHC is liable for unpaid rent and damages if the family vacates during the allowable twelve month period after the last HAP payment. NMHC must perform all of the functions normally required, such as reexaminations and inspections. The participant will be notified of the right to remain on the program at $0 assistance for twelve months. If the family is still in the unit after twelve months, the housing assistance payment contract will be terminated.

 

(b)       New Contracts

(1)       For contracts effective after October 2, 1995, NMHC has no liability for unpaid rent or damages, and the family may remain in the unit at $0 assistance for up to one hundred eighty days after the last HAP payment. If the family is still in the unit after one hundred eighty days, the housing assistance payment contract will be terminated. If within the one hundred eighty day time frame an owner rent increase or a decrease in the total tenant payment causes the family to be eligible for a housing assistance payment, NMHC will resume assistance payments for the family.

(2)       In order for a family to move to another unit during the one hundred eighty days, the rent for the new unit would have to be high enough to necessitate a housing assistance payment.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

§ 100-80-1325                        Option Not to Terminate for Misrepresentation

 

If the family has misrepresented any facts that caused NMHC to overpay assistance, NMHC may choose not to terminate and may offer to continue assistance provided that the family executes a repayment agreement and makes payments in accordance with the agreement or reimburses NMHC in full.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

§ 100-80-1330                        Misrepresentation in Collusion with Owner

 

(a)       If the family willingly and knowingly commits fraud or is involved in any other illegal scheme with the owner, NMHC will deny or terminate assistance and report the activities to the HUD Regional Inspector General for investigation.

 

(b)       In making this determination, NMHC will carefully consider the possibility of overt or implied intimidation of the family by the owner and the family’s understanding of the events.

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

Part 1400 -     Owner Restrictions

 

§ 100-80-1401                        Policy

 

It is the policy of NMHC to recruit owners to participate in the program, and to provide owners with prompt and professional service in order to maintain an adequate supply of available housing throughout the jurisdiction of NMHC. The regulations in this chapter define when NMHC must disallow an owner from participating in the rental assistance programs and HUD provides NMHC with discretion to disapprove or otherwise restrict the participation of owners in certain categories.

 

Modified, 1 CMC § 3806(d).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: This section was originally an introduction to part XIV, codified at part 1400. The Commission created the section title.

 

§ 100-80-1405                        Owner Restrictions and Penalties

 

If an owner commits fraud or abuse or is guilty of frequent or serious contract violations, NMHC will restrict the owner from future participation in the rental assistance programs for a period of time commensurate with the seriousness of the offense. NMHC may also terminate some or all contracts with the owner.

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

§ 100-80-1410                        Overpayments to Owners

 

(a)       If the landlord has been overpaid as a result of fraud, misrepresentation, or violation of the housing assistance payment contract, NMHC may terminate the contract and arrange for restitution to NMHC and/or family as appropriate.

 

(b)       NMHC will make every effort to recover any overpayments made as a result of landlord fraud or abuse. Payments otherwise due to the owner may be debited in order to repay NMHC or the tenant as applicable.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b). The Commission inserted a comma after the word “misrepresentation” in subsection (a) pursuant to 1 CMC § 3806(g).

 

Part 1500 -     Claims, Move-out and Close-out Inspections

 

§ 100-80-1501                        Owner Claims

 

(a)       Under HAP contracts effective prior to October 2, 1995, owners may make “special claims” for damages, unpaid rent, and vacancy loss (vacancy loss cannot be claimed in the voucher program) after the tenant has vacated the unit.

 

(b)       Owner claims for payment for unpaid rent, damages, or vacancy loss will be reviewed for accuracy and completeness and compared with records in the file. NMHC establishes standards by which to evaluate claims, but the burden of proof rests with the owner.

 

(c)       If vacancy loss is claimed, NMHC will ascertain whether or not the family gave proper notice of their intent to move. The file will also be reviewed to verify owner compliance at the time the contract was terminated.

 

(d)       NMHC will pay properly filed claims to the owner as a function of the contract, but the tenant is ultimately responsible to reimburse NMHC for claims paid to the owner.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (d). The Commission inserted a comma after the word “damages” in subsection (b) pursuant to 1 CMC § 3806(g).

 

§ 100-80-1505                        Unpaid Rent

 

Unpaid rent only applies to the tenant’s portion of rent while the tenant is in residence under the assisted lease. It does not include the tenant’s obligation for rent beyond the termination date of the HAP contract.

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

§ 100-80-1510                        Vacancy Loss in the Certificate Program

 

(a)       Vacancy loss is applicable to the certificate program only. Vacancy loss is paid if the move was in violation of the notice requirements in the lease.

 

(b)       In order to claim vacancy loss, the unit must be available for lease and the landlord must:

(1)       Notify NMHC within ten days upon learning of the vacancy, or prospective vacancy, and

(2)       Pursue all possible activities to fill the vacancy including the following:

(i)        Seeking eligible applicants by listing the unit with NMHC

(ii)       Advertising the availability of the unit

(iii)      Not rejecting potentially eligible applicants except for good cause.

 

(c)       In the event that a unit becomes vacant because of death, NMHC will permit the owner to keep the HAP for the month in which the tenant died.

 

(d)       If the tenant moves after the date given on their notice of intent to vacate, the landlord may claim vacancy loss by providing acceptable documentation that there was a bona fide prospective tenant to whom the unit could have been rented.

 

Modified, 1 CMC § 3806(e), (f), (g).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (d).

 

In subsection (b)(2)(iii), the Commission inserted the final period.

 

§ 100-80-1515                        Damages

 

(a)       Certificate Program

Maximum NMHC liability is the lesser of:

(1)       The total amount of damage claim, or

(2)       Two month’s contract rent minus the security deposit actually collected or that could have been collected under program regulations.

 

(b)       Voucher Program

Maximum NMHC liability is the lesser of:

(1)       The total amount of damage claim, or

(2)       One month’s contract rent minus the security deposit actually collected or that could have been collected under program regulations.

 

(c)       To ensure valid claim processing, NMHC will conduct a thorough move-in inspection noting “conditions” as well as HQS deficiencies, take pictures of questionable items, and send a report of all items to the owner and the tenant.

 

(d)       The owner must be present during the move-out inspection and only damages claimed by the owner are reimbursable.

 

(e)       All claims for damages must be supported by actual bills for materials and labor and a copy of the canceled checks or other receipts documenting payment. Estimates are not acceptable.

 

Modified, 1 CMC § 3806(e), (f), (g).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (e).

 

In subsections (a)(2) and (b)(2), the Commission inserted the final periods.

 

§ 100-80-1520                        Move-out and Close-out Inspections

 

(a)       There will be no move-out inspections of units with contracts effective on or after October 2, 1995.

 

(b)       The owner must notify NMHC of the move-out and request an inspection within ten days of learning of the move out in order to submit a claim for damages.

 

(c)       If the contract was terminated due to owner breach, or the owner was in violation of the contract at the time that it was terminated, there will be no entitlement to claims and therefore no inspection.

 

(d)       NMHC will not conduct a move-out inspection on tenant’s request if the owner does not also request an inspection. It is the tenant’s responsibility to document the condition of the unit at move-out.

 

(e)       A damage claim will not be approved unless the move-out inspection is requested and completed prior to any work being done.

 

Modified, 1 CMC § 3806(e), (f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (e).

 

§ 100-80-1525                        Processing Claims

 

(a)       NMHC reviews claims for unpaid rent, damages, or vacancy loss and makes a preliminary determination of amount payable. The family is informed that a claim is pending by notice sent to their last known address. The notification will state the preliminary determined amount, the type of claim, and describe the procedure for contesting the claim.

 

(b)       NMHC will offer the family ten days to contest the claim. If the family disputes the claim, NMHC will schedule a claim review with the owner and tenant in order to resolve the differences.

 

(c)       If the family misses the claim review, another will not be scheduled unless there are extenuating circumstances.

 

(d)       At the claim review, if the family demonstrates that the claim, or part of it, is invalid, NMHC will adjust the amount.

 

(e)       After a determination is made, NMHC will notify the family in writing of the decision. If it is determined that the family owes money and the owner’s claim is valid, the family will be notified to pay the approved claim to the owner within ten days. If payment is not made to the owner by the tenant, NMHC will pay the claim and NMHC will pursue collection to be repaid either in a lump sum or through a payment agreement. The notice will warn the family that their assistance may be terminated and they may be denied future participation in the program if they do not reimburse NMHC as required.

 

Modified, 1 CMC § 3806(e).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (e).

 

Part 1600 -     Complaints and Appeals

 

§ 100-80-1601                        Complaints to NMHC

 

(a)       NMHC will respond promptly to complaints from families, owners, employees, and members of the public. All complaints will be documented. NMHC may require that complaints including HQS violations, be put in writing.

 

(b)       All complaints will first be referred to the applicable Section 8 assistant. If the complaint cannot be resolved by the assistant, then it will be referred to the Section 8 specialist. If the Section 8 specialist is unable to resolve the matter to the family’s satisfaction, then the family may pursue the matter in accordance to NMHC’s Grievance Procedures [NMIAC, title 100, chapter 70].

 

Modified, 1 CMC § 3806(f), (g).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) and (b).

 

The 2000 amendments amended subsection (b).

 

In subsection (b), the Commission deleted the repeated word “then” and corrected the spelling of “Grievance.”

 

§ 100-80-1605                        Preference Denials

 

When NMHC denies a preference to an applicant, the family will be notified in writing of the specific reason for the denial and be offered the opportunity to meet with NMHC staff to discuss the reasons for denial and to dispute NMHC’s decision.

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

§ 100-80-1610                        Reviews and Hearings

 

All grievances shall be heard in accordance with NMHC’s Grievance Procedures [NMIAC, title 100, chapter 70]. A copy of NMHC’s Grievance Procedures shall be given to each family during their initial briefing.

 

Modified, 1 CMC § 3806(g).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000).

 

Commission Comment: The Commission corrected the spelling of “grievance” each time it occurs in this section.

 

§ 100-80-1615                        Informal Reviews for Applicants

 

(a)       Reviews are provided for applicants who are denied assistance before the effective date of the HAP contract. The exception is that when an applicant is denied assistance based on citizenship or eligible immigrant status, the applicants is entitled to an informal hearing.

 

(b)       When NMHC determines that an applicant is ineligible for the program, the family must be notified of their ineligibility in writing. The notice will contain the reason(s) they are ineligible, the procedure for requesting a review if the applicant does not agree with the decision and the time limit for requesting a review.

 

(c)       NMHC must provide applicants with the opportunity for an informal review of decisions denying:

(1)       Listing on NMHC’s waiting list

(2)       Issuance of a certificate or voucher

(3)       Participation in the program.

 

(d)       Informal reviews are not required for established policies and procedures and NMHC determinations such as:

(1)       Discretionary administrative determinations by NMHC

(2)       General policy issues or class grievances

(3)       A determination of the family unit size under NMHC occupancy standards

(4)       Refusal to extend or suspend a certificate or voucher

(5)       Disapproval of lease

(6)       Determination that a unit is not in compliance with HQS

(7)       Determination that a unit is not in accordance with HQS due to family size or composition.

 

Modified, 1 CMC § 3806(f), (g).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (d).

 

The 2000 amendments amended subsections (d)(6) and (d)(7).

 

In subsections (c)(3) and (d)(7), the Commission inserted the final period.

 

§ 100-80-1620                        Informal Hearings

 

(a)       NMHC will provide a copy of the hearing procedures in the family briefing packet.

 

(b)       When NMHC makes a decision regarding the eligibility and/or the amount of assistance, applicants and participants must be notified in writing. NMHC will give the family prompt notice of such determinations which will include:

(1)       The proposed action or decision of NMHC

(2)       The date the proposed action or decision will take place

(3)       The explanation of the basis for NMHC’s decision

(4)       The procedures for requesting a formal hearing if the family disputes the action or decision

(5)       The time limit for requesting the formal hearing

(6)       To whom the formal hearing request should be addressed.

 

(c)       NMHC must provide participants with the opportunity for an informal hearing for decisions related to any of the following:

(1)       Determination of the family’s annual or adjusted income and the computation of the housing assistance payment

(2)       Determination to terminate assistance for any reason

(3)       Determination to pay an owner claim for damages, unpaid rent or vacancy loss

(4)       Termination of the certificate or voucher holder in the event of the break-up of the family.

 

(d)       NMHC must always provide the opportunity for an informal hearing before termination of assistance.

 

Modified, 1 CMC § 3806(f), (g).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000); Adopted 21 Com. Reg. 16704 (Apr. 19, 1999); Proposed 21 Com. Reg. 16471 (Feb. 18, 1999).

 

Commission Comment: The original paragraphs were not designated. The Commission designated subsections (a) through (d).

 

In subsections (b)(6) and (c)(4), the Commission inserted the final periods.

 

§ 100-80-1625                        Formal Hearings

 

If a family is entitled to a formal hearing, as set forth by HUD or NMHC regulation, or by NMHC’s Grievance Procedures [NMIAC, title 100, chapter 70], then the same shall be conducted in accordance with said procedures. NMHC shall make every effort to resolve all complaints in the review or informal hearing stage.

 

Modified, 1 CMC § 3806(f), (g).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000).

 

Commission Comment: The Commission corrected the spelling of “Grievance.”

 

Part 1700 -     Minimum Rent

 

§ 100-80-1701                        Minimum Rent

 

NMHC will charge a family no less than a minimum monthly rent of twenty-five dollars per month, except for in the case of financial hardship.

 

Modified, 1 CMC § 3806(e).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000).

 

Commission Comment: On November 15, 1996, NMHC published emergency and proposed “Regulations Regarding the Minimum Rent for NMHC Section 8 Housing Units.” See 18 Com. Reg. 14461 (Nov. 15, 1996). A notice of permanent adoption was never published.

 

§ 100-80-1705                        Financial Hardship Exemption from Minimum Rent

 

NMHC shall grant an exemption from payment of minimum rent if the family is unable to pay the minimum rent because of financial hardship. Financial hardship includes these situations:

 

(a)       When the family has lost eligibility for or is awaiting an eligibility determination for a federal, state, or local assistance program, including a family that includes a member who is a non citizen lawfully admitted for permanent residence under the Immigration and Nationality Act who would be entitled to public benefits but for title IV of the Personal Responsibility and Work Opportunity Act of 1996;

 

(b)       When the family would be evicted because it is unable to pay the minimum rent;

 

(c)       When the income of the family has decreased because of changed circumstances, including loss of employment;

 

(d)       When a death has occurred in the family; and

 

(e)       Other circumstances determined by NMHC or HUD.

 

Modified, 1 CMC § 3806(f).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000).

 

§ 100-80-1710                        Requesting a Hardship

 

(a)       If a family requests a financial hardship exemption, NMHC shall suspend the minimum rent requirement beginning the month following the family’s request for a hardship exemption until NMHC determines whether there is a qualifying financial hardship, and whether such hardship is temporary or long term.

 

(b)       NMHC shall promptly determine whether a qualifying hardship exists and whether it is temporary or long term.

 

(c)       If NMHC determines that a qualifying financial hardship is temporary, NMHC shall not impose the minimum rent during the ninety day period beginning the month following the date of the family’s request for a hardship exemption. At the end of the ninety day suspension period, NMHC must reinstate the minimum rent from the beginning of the suspension. The family must be offered a reasonable repayment agreement, on terms and conditions established by NMHC, for the amount of back rent owed by the family.

 

(d)       If NMHC determines there is no qualifying financial hardship exemption, NMHC shall reinstate the minimum rent, including back rent owed from the beginning of the suspension. The family must pay the back rent on terms and conditions established by NMHC.

 

(e)       If NMHC determines a qualifying financial hardship is long term, NMHC shall exempt the family from the minimum rent requirements so long as such hardship continues. Such exemption shall apply from the beginning of the month following the family’s request for a hardship exemption until the end of the qualifying financial hardship.

 

(f)        The financial hardship exemption only applies to payment of the minimum rent, and not to the other elements used to calculate the total tenant payment (as determined pursuant HUD regulation).

 

Modified, 1 CMC § 3806(e).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000).

 

§ 100-80-1715                        Effective Date

 

This part shall have a rolling effective date, such that it shall become effective as to a particular family, on the first month falling after their next certification after the adoption date of this regulation. For new families admitted after the regulations in this part are adopted, this part shall immediately apply.

 

Modified, 1 CMC § 3806(d).

 

History: Amdts Adopted 22 Com. Reg. 17586 (Nov. 20, 2000); Amdts Proposed 22 Com. Reg. 17410 (Sept. 20, 2000).


 

CHAPTER 100-90

SECTION 8 ADMINISTRATIVE PLAN FOR RENTAL ASSISTANCE PROGRAMS

 


Part 001           Background

§ 100-90-001    Preamble

§ 100-90-005    Local Objectives

§ 100-90-010    Purpose (24 CFR § 982.54)

§ 100-90-015    Equal Opportunity and Fair Housing

§ 100-90-020    Privacy Rights (5 U.S.C. § 552a)

§ 100-90-025    Accounts and Records (24 CFR § 982.158)

 

Part 100           Application Process and Requirements

§ 100-90-101    How to Apply

§ 100-90-105    Applications

§ 100-90-110    Missed Appointments

 

Part 200           Verifications

§ 100-90-201    Verification of Applicant Information

§ 100-90-205    Methods of Verification

§ 100-90-210    Verification of Citizenship or Eligible Non-Citizen Status (HCV Program Guidebook 7420-10G: Citizenship Status)

§ 100-90-215    Verification: Validity

 

Part 300           Eligibility

§ 100-90-301    Requirements

§ 100-90-305    Family Composition (24 CFR § 982.201(c))

§ 100-90-310    Income Limitation (HCV Program Guidebook 7420-10G: Income Limits)

§ 100-90-315    Income Target Requirements (24 CFR § 982.201(b)(2))

§ 100-90-320    Social Security Numbers

§ 100-90-325    Citizenship or Eligible Non-Citizen Status

§ 100-90-330    Changes in Eligibility Prior to Signing of HAP Contract

§ 100-90-335    Ineligible Families

 

Part 400           The Waiting List and Preference System

§ 100-90-401    Opening the Waiting List (24 CFR § 982.206)

§ 100-90-405    Preference System

§ 100-90-410    Closing the Waiting List (24 CFR § 982.206)

§ 100-90-415    Purging the Waiting List (24 CFR § 982.204(c))

§ 100-90-420    Selection and Admission from the Waiting List

§ 100-90-425    Removing Applicants from the Waiting List

§ 100-90-430    Special Admissions/Non-Waiting List Admissions (HCV Program Guidebook 7420-10G: Special Admissions/Non-Waiting List Admissions)

§ 100-90-435    Grounds for Denial (24 CFR §§ 982.552 and 982.553)/Termination

§ 100-90-440    Notification of Adverse Actions

 

Part 500           Housing Quality Standards (HQS)

§ 100-90-501    General

§ 100-90-505    Pre-Contract and Periodic HQS Inspections

§ 100-90-510    Annual HQS Inspections (HCV Program Guidebook 7420-10G: Annual Inspection Process and Procedure)/Abatement and Termination

§ 100-90-515    Quarterly HQS Inspections/Abatement and Termination

§ 100-90-520    HQS Quality Control (24 CFR § 985.3(e))/Re-Inspection of Units

§ 100-90-522    Verification of HQS Deficiency Correction (PIH 2012-15)

§ 100-90-525    HQS Enforcement

§ 100-90-530    Applicability of CNMI Building Safety Code

 

Part 600           Determination of Family Income

§ 100-90-601    Annual Income

§ 100-90-605    Determining Adjusted Income

 

Part 700           Reasonable Accommodations

§ 100-90-701    General (PIH Notice 02-I)

 

Part 800           Leasing and Occupancy Standards

§ 100-90-801    Determining Unit Size of Each Voucher (Voucher Size)

§ 100-90-805    Guidelines Table for Determining Voucher Size

§ 100-90-810    Briefing

§ 100-90-815    Briefing Packet

§ 100-90-820    Issuance of Vouchers

§ 100-90-825    Term and Extensions on Unit Searching (HCV Program Guidebook 7420-10G: Extensions of Search Time)

§ 100-90-830    Requests for Lease Approval

§ 100-90-835    Disapproval of Owner

 

Part 900           Housing Subsidy, Tenant Rent and Payment Standards

§ 100-90-901    General (HCV Program Guidebook 7420-10G: Calculating Rent and HAP Payments)

§ 100-90-905    Payment Standards

§ 100-90-910    Rent Reasonableness

§ 100-90-915    Comparability (24 CFR § 982.507)

§ 100-90-920    Rent Calculations

§ 100-90-925    Maximum Subsidy

§ 100-90-930    Minimum Rent (HCV Program Guidebook 7420-10G: Minimum Rent)

§ 100-90-935    Rent Adjustments

§ 100-90-940    Utility Allowances

§ 100-90-945    Utility Reimbursements

 

Part 1000         Portability (HCV Program Guidebook 7420-10G: Portability)

§ 100-90-1001   General

§ 100-90-1005   Portability Procedures

 

Part 1100         Moves with Continued Assurance

§ 100-90-1101   Procedures

§ 100-90-1105   Limitations and Restrictions

§ 100-90-1110   Claims, Move-Out and Close-Out Inspections

§ 100-90-1115   Continued Assistance for “Mixed Families”

§ 100-90-1120   Family Separations (24 CFR § 982.315)

§ 100-90-1125   Family Absences from the Assisted Unit (24 CFR § 982.312)

 

Part 1200         Annual Reexaminations/Certifications

§ 100-90-1201   General (HCV Program Guidebook 7420-10G: Reexaminations)

§ 100-90-1205   Procedures

§ 100-90-1210   Adverse Actions for Missed Reexaminations

 

Part 1300         Informal Reviews and Hearings

§ 100-90-1301   General

§ 100-90-1305   Informal Review

§ 100-90-1310   Informal Hearing

 

Part 1400         The HAP Contract

§ 100-90-1401   General

§ 100-90-1405   Owner Approvals

§ 100-90-1410   Landlord Obligations

§ 100-90-1415   Actions Taken for HAP Contract Breaches

 

Part 1500         Terminating or Denying Assistance

§ 100-90-1501   General

§ 100-90-1505   Grounds for Terminating or Denying Assistance

§ 100-90-1510   Family Obligations under Rental Assistance Programs

§ 100-90-1515   Absence from the Unit (24 CFR 981.312(a), (b))

§ 100-90-1520   Duplication of Assistance

 

Part 1600         Section 8 Management Assessment Program (SEMAP)

§ 100-90-1601   General

§ 100-90-1605   Purpose

§ 100-90-1610   Applicability

§ 100-90-1615   SEMAP Regulations (24 CFR Part 985)

 

Part 1700         Temporary Compliance Assistance Addendum Document

§ 100-90-1701   Introduction

§ 100-90-1705   Purpose

§ 100-90-1710   Temporary Provisions

 

Part 1800         Project-Based Voucher Program

§ 100-90-1801   Introduction

§ 100-90-1805   General Requirements

§ 100-90-1810   PBV Owner Proposals

§ 100-90-1815   Dwelling Units

§ 100-90-1820   Rehabilitated and Newly Constructed Units

§ 100-90-1825   Housing Assistance Payments Contract (HAP)

§ 100-90-1830   Selection of PBV Program Participants

§ 100-90-1835   Occupancy

§ 100-90-1840   Determining Rent to Owner

§ 100-90-1845   Payment to Owner

 

Appendix A     Informal Review Procedures

Appendix B      Informal Hearing Procedures

Appendix C     CNMI Building Safety Code Rules and Regulations


 

Chapter Authority: 2 CMC § 4433; Executive Order 94-3 § 407.

 

Chapter History: Amdts Adopted 38 Com. Reg. 38391 (July 28, 2016); Amdts Proposed 37 Com. Reg. 37239 (Nov. 28, 2015); Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: 2 CMC § 4411 creates the Mariana Islands Housing Authority (MIHA) as a public corporation within the Commonwealth government, charged with meeting the need for decent, safe and sanitary housing for persons of low and moderate income in the Commonwealth. See 2 CMC §§ 4411-4457. 2 CMC § 4433 sets forth the powers of MIHA, including the general power to do any and all things necessary or convenient to effectuate the purposes of the act and to carry out any of the powers granted by the act. See 2 CMC § 4433(t).

 

Executive Order 94-3 (effective August 23, 1994) reorganized the Commonwealth government executive branch, changed agency names and official titles and effected numerous other revisions. According to Executive Order 94-3 § 407:

 

Section 407. Marianas Housing Authority.

(a)          The Marianas Housing Authority is abolished and its functions transferred to a Division of Housing within the Commonwealth Development Authority, which shall have at its head a Director of Housing.

(b)          Any bond or other indebtedness of the Mariana Island Housing Authority shall be assumed by the Commonwealth government, but only upon such terms and security as shall have been agreed to previously by the Authority. The full faith and credit of the Commonwealth shall to secure such bond or other indebtedness, except as may have been pledged prior to such assumption or as otherwise provided by law.

 

The full text of Executive Order 94-3 is set forth in the commission comment to 1 CMC § 2001.

 

The Northern Marianas Housing Corporation is a subsidiary corporation of the Commonwealth Development Authority and the successor to MIHA under Executive Order 94-3. See 2 CMC § 4482(d).

 

This chapter was originally promulgated as “revisions” to Chapter 100-80. The Notice of Proposed Regulations contained the following section:

 

Citation of Related and/or Affected Statutes, Rules and Regulations. The proposed revisions were formulated to restate, enhance, supplement and clarify the existing NMHC Administrative Plan for Rental Assistance Programs and will not repeal the entire plan located at Northern Mariana Islands Administrative Code (NMIAC), Title 100, Chapter 80.

 

Sections of this chapter are clearly incompatible with the plan existing at Title 100, Chapter 80. As the adopted regulations provided no guidance for the Commission regarding which sections were to be repealed, the Commission codified the regulations as new Chapter 90. To the extent that the regulations in Chapter 80 conflict with these regulations, they are superseded.

 

Part 001 -       Background

 

§ 100-90-001  Preamble

 

(a)       The United States Department of Housing and Urban Development (HUD) operates a subsidized program known as the Section 8 Program. In the Commonwealth of the Northern Mariana Islands (CNMI), this program is administered by the Northern Marianas Housing Corporation (NMHC), a division under the Commonwealth Development Authority (CDA).

 

(b)       Eligibility to participate in the Section 8 Program is determined by family size and income, in accordance with federal statutes, regulations, and NMHC’s rules and regulations as provided under this administrative plan.

 

(c)       Under the Section 8 Program, as administered by NMHC, families may reside in units owned by NMHC, or they may reside in privately-owned housing units.

 

(d)       Privately-owned housing units participating in the programs are required to pass minimum housing quality standards (HQS) established by HUD or the local housing code, whichever is more stringent. Contract rentals must be comparable to rentals received for housing units of the same size and type in the same general neighborhood.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) through (d) pursuant to 1 CMC § 3806(a). The Commission corrected the capitalization of the words “program” in subsections (a), (b), and (c), and “federal” in subsection (b) pursuant to 1 CMC § 3806(f).

 

§ 100-90-005  Local Objectives

 

The rental assistance programs are designed to achieve two underlying objectives:

 

(a)       To provide decent, safe, and sanitary housing for low income families while maintaining their rent payments at an affordable level;

 

(b)       To provide an incentive to private property owners to rent to low income families by offering timely assistance payments.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

§ 100-90-010  Purpose (24 CFR § 982.54)

 

(a)       The purpose of the administrative plan is to establish policies for carrying out NMHC’s rental assistance programs in a manner consistent with funding source requirements and local objectives. The Plan covers both admission and continued participation in these programs. Policies are the same for all programs unless otherwise noted.

 

(b)       NMHC is responsible for complying with all changes in program regulations pertaining to these programs. If such changes conflict with this plan, program regulations will have precedence. The original plan and any changes must be approved by the Board of Directors of NMHC and a copy provided to HUD.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The Commission corrected the capitalization of the words “administrative” and “plan” pursuant to 1 CMC § 3806(f).

 

§ 100-90-015  Equal Opportunity and Fair Housing

 

(a)       It is the policy of NMHC to comply fully with all federal, state, and local nondiscrimination laws and with the rules and regulations governing fair housing and equal opportunity in housing and employment.

 

(b)       NMHC shall not deny any family or individual the opportunity to apply for or receive assistance under the Section 8 programs on the basis of race, sex, religion, creed, national, or ethnic origin, age, family or marital status, handicap or disability or sexual orientation.

 

(c)       To further its commitment to full compliance with applicable civil rights laws, NMHC will provide information pertaining to federal, state, and local laws to the program to voucher holders regarding “discrimination” and any recourse available during the family briefing session, and applicable Fair Housing Information and Discrimination Complaint Forms will be made a part of the voucher holder’s briefing packet.

 

(d)       No individual with disabilities shall be denied the benefits or be excluded from participating in this program.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) through (d) pursuant to 1 CMC § 3806(a). The Commission corrected the capitalization of the words “fair housing” and “equal opportunity” in subsection (a), “programs” in subsection (b), and “civil rights” in subsection (c) pursuant to 1 CMC § 3806(f).

 

§ 100-90-020  Privacy Rights (5 U.S.C. § 552a)

 

(a)       Applicants and participants, including all adults in their households, are required to sign the HUD 9886 Authorization for Release of Information. This document incorporates the Federal Privacy Act Statement and describes the conditions under which HUD will release family information.

 

(b)       NMHC’s practices and procedures are designed to safeguard the privacy of applicants and program participants. All applicant and participant files will be stored in a secure location which is only accessible by authorized personnel.

 

(c)       In accordance with HUD requirements, NMHC will furnish prospective owners with the family’s current address as shown in NMHC’s records and, if known to NMHC, the names and address of the landlord at the family’s current and prior address.

 

(d)       NMHC’s policy is to ensure objectivity and consistency in applying the following criteria to evaluate the eligibility of families who apply. Staff will carefully review all information provided by the family. Families will be provided the opportunity to explain their circumstances, to furnish additional information, if needed, and to receive an explanation of the basis for any decision made by NMHC to their eligibility.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) through (d) pursuant to 1 CMC § 3806(a).

 

§ 100-90-025  Accounts and Records (24 CFR § 982.158)

 

(a)       NMHC must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements and in a manner/form required by HUD that permits a speedy and effective audit. NMHC must also furnish to HUD accounts and other records, reports, documents and information, as required by HUD; and in addition to HUD, the Comptroller General of the United States shall have full and free access to all NMHC offices and facilities, as well as all accounts and other records that are pertinent to administration of the program, including the right to examine or audit the records, and to make copies. Lastly, NMHC must prepare a unit inspection report.

 

(b)       NMHC must keep and maintain the following during the term of each assisted lease, and for at least seven years thereafter:

(1)       A copy of the executed lease;

(2)       The HAP contract; and

(3)       The application from the family

 

(c)       NMHC must keep the following records for at least seven years:

(1)       Records that provide income, racial, ethnic, gender, and disability status data on program applicants and participants;

(2)       An application from each ineligible family and notice that the applicant is not eligible;

(3)       HUD-required reports;

(4)       Unit inspection reports;

(5)       Lead-based paint records as required by Title 24, Part 35, Subpart B of the Code of Federal Regulations.

(6)       Accounts and other records supporting NMHC budget and financial statements for the program;

(7)       Records to document the basis for NMHC determination that rent to owner is a reasonable rent (initially and during the term of a HAP contract); and

(8)       Other records specified by HUD.

 

Modified, 1 CMC § 3806(a), (g).

 

History: Adopted 38 Com. Reg. 38391 (July 28, 2016); Proposed 37 Com. Reg. 37239 (Nov. 28, 2015).

 

Commission Comment: The Commission numbered this section pursuant to 1 CMC § 3806(a). The Commission changed “part 35, subpart B of this title” in subsection (c)(5) to “Title 24, Part 35, Subpart B of the Code of Federal Regulations” pursuant to 1 CMC § 3806(g).

 

Part 100 -       Application Process and Requirements

 

§ 100-90-101  How to Apply

 

NMHC will accept and process applications in accordance with applicable federal regulations. Applications will be received and processed as follows:

 

(a)       Applications will be taken at NMHC’s central office or its field offices on Rota and Tinian, as the case may be, at which time all applicants will receive a written statement documenting receipt of the application by NMHC. Unless the waiting list is closed, an application must be accepted even if an informal discussion indicates that the applicant or his/her family may not be eligible.

 

(b)       Before formal acceptance of the application, applicants will be expected to provide on the formal application forms all information necessary for making eligibility determinations.

 

(c)       All adult members of the household age eighteen years or older must be present to complete and sign the application and to provide photo identification. This provision can be waived only for good cause. (Good cause shall include applicants that are disabled and require that the application be completed by mail.)

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The Commission struck the figure “18” from subsection (c) pursuant to 1 CMC § 3806(e). The final sentence of subsection (c) was located in a footnote in the original regulation. The Commission moved it to the text of subsection (c) pursuant to 1 CMC § 3806(a).

 

§ 100-90-105  Applications

 

(a)       The purpose of the application is to permit NMHC to assess family eligibility or ineligibility and to determine placement on the waiting list. The application shall contain questions designed to obtain the following information:

(1)       Name and date of birth of all members;

(2)       Sex and relationship of all members;

(3)       Street address and phone numbers;

(4)       Mailing address (if P.O. Box or other permanent address);

(5)       Amount(s) and source(s) of income received by household members;

(6)       Information related to qualification for preference;

(7)       Social Security numbers;

(8)       Race/Ethnicity;

(9)       Citizenship/eligible immigration status;

(10)     Arrests for drug-related or violent criminal activity;

(11)     Requests for specific accommodation needed to fully utilize program and services; and

(12)     Other questions that may be deemed necessary to facilitate the eligibility determination process.

 

(b)       The information on the application will not be verified until the applicant has been selected for final eligibility determination. Final eligibility will be determined when the full application process is completed and all information is verified.

 

(c)       Applicants are required to inform NMHC within thirty days of changes in family composition, income, and address, as well as any changes in preference status. Applicants are also required to respond to requests from NMHC to update information or to determine continued interest in assistance. If a family fails to respond to a request from NMHC to update information, NMHC may, after sending a second request by certified mail, reject the application. No application shall be rejected until the thirty-first day after the receipt of the second request, or if the second request is returned to NMHC by the Post Office on the thirty-first day after it was mailed by NMHC.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) through (c) pursuant to 1 CMC § 3806(a). The Commission corrected the capitalization of the words “Social Security” in subsection (a)(7) pursuant to 1 CMC § 3806(f). The Commission struck the figures “30” and “31st” from subsection (c) pursuant to 1 CMC § 3806(e).

 

§ 100-90-110  Missed Appointments

 

Applicants who fail to appear on a scheduled appointment will be afforded a second appointment for good cause. An applicant who fails to appear on the second scheduled appointment will be sent a notice of denial and/or withdrawal from the waiting list. (24 CFR § 982.522(a)*) Applicants removed from the waiting list may request NMHC for an informal review.

 

* So in original. 24 CFR § 982.522 does not exist.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Part 200 -       Verifications

 

§ 100-90-201  Verification of Applicant Information

 

(a)       Information provided by the applicant will be verified including information related to family composition, income, allowances and deductions, assets, eligible immigration status, full-time student status and other factors related to preferences, eligibility, and rent calculation. Verifications may not be more than sixty days old preceding the issuance of voucher.

 

(b)       In order to verify information provided by a family, each adult member must sign a HUD-approved consent for release of information form that would authorize NMHC to verify income and source of income information provided by the family.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) and (b) pursuant to 1 CMC § 3806(a). The Commission corrected the spelling of the word “factors” in subsection (a) pursuant to 1 CMC § 3806(g). The Commission inserted a comma after the word “eligibility” in subsection (a) pursuant to 1 CMC § 3806(g). The Commission struck the figure “60” from subsection (a) pursuant to 1 CMC § 3806(e).

 

§ 100-90-205  Methods of Verification

 

(a)       The acceptable methods NMHC uses to verify an applicant’s information include:

(1)       Upfront Income Verification (UIV) — NMHC uses the EIV system (an independent computerized resource) to obtain verification of employment, gross wages, unemployment compensation, and Social Security benefits;

(2)       Written third-party verification;

(3)       Verbal third-party verification;

(4)       Review document — Tenant-provided documents to support declaration of income, etc.; and

(5)       Tenant certification — Tenant must submit notarized statement of reported income, assets, or expenses.

 

(b)       NMHC requires initial mail requests for written verifications addressed to the source of income (or expense). If the information is not returned within 15 days, NMHC shall attempt telephone verification. If both written and oral third party verification attempts fail, the applicant or participant shall be required to provide documents as verification. The client file must include notes as to why documents provided by the client have been used instead of the preferred third party verification.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) and (b) pursuant to 1 CMC § 3806(a). The Commission corrected the capitalization of the words “Social Security” in subsection (a) pursuant to 1 CMC § 3806(f).

 

§ 100-90-210  Verification of Citizenship or Eligible Non-Citizen Status (HCV Program Guidebook 7420-10G: Citizenship Status)

 

(a)       Persons claiming eligible immigration status must present appropriate immigration documents, which must be verified by NMHC through the United States Citizenship and Immigration Services (USCIS).

 

(b)       Every applicant household for (and participant in) the housing choice voucher program must sign a certification for every household member either claiming status as:

(1)       A U.S. citizen, or

(2)       An eligible alien, or

(3)       Stating the individual’s choice not to claim eligible status and acknowledge ineligibility.

 

(c)       Declaration of United States Citizenship. For household members claiming U.S. citizenship, only a declaration (HUD Form 214) signed by the household member (or in the case of a minor child, by a parent) is required by regulation.

 

(d)       Acceptable Official Documents for Verification of Information. NMHC requires verification of the information provided through the presentation of any one or all of the following official documents:

(1)       United States passport;

(2)       Resident Alien Card;

(3)       Registration Card;

(4)       Social Security card;

(5)       Other appropriate documentation.

 

(e)       Verification of Social Security Numbers (24 CFR Part 5.216 and PIH Notice 2012-10)

(1)       NMHC will verify Social Security numbers through the following documents:

(i)        An original SSN Card issued by the Social Security Administration;

(ii)       An original document issued by the Social Security Administration containing the name and SSN of the individual; or

(iii)      An original document issued by a federal, state, or local government agency containing the name and SSN of the individual.

(2)       NMHC will verify the SSN through the EIV System. Once the individual’s identity verification status is classified as “verified” through the EIV Summary Report or Income Report, NMHC will retain a copy of the report in each family file as confirmation of compliance with the SSN disclosure, documentation, and verification requirements. The retention of the EIV report in the tenant file is adequate documentation of a valid tenant SSN.

(3)       Once an individual’s identity verification status is classified as “verified” through the EIV Summary Report or Income Report, NMHC will remove and destroy (i.e. shredding) the copy of the documentation referenced above so as to minimize the risk of exposing the individual’s SSN. This should be done no later than the next annual or interim reexamination.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The first two paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) and (b) pursuant to 1 CMC § 3806(a). The Commission corrected the spelling of the word “be” in subsection (a) pursuant to 1 CMC § 3806(g). The Commission corrected the capitalization of the word “numbers” in subsection (e)(1) pursuant to 1 CMC § 3806(f).

 

Subsection (e) did not appear in the proposed regulations and was added as a modification in the Notice of Adoption.

 

§ 100-90-215  Verification: Validity

 

NMHC shall only accept information verified and dated 60 days preceding the actual receipt of the aforesaid documents. Information exceeding 60 days must be updated and re-verified.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Part 300 -       Eligibility

 

§ 100-90-301  Requirements

 

To be eligible for participation, an applicant must meet HUD’s criteria, as well as any permissible criteria established by NMHC. The HUD eligibility criteria include:

 

(a)       An applicant must be a “family.”

 

(b)       An applicant must be within the appropriate income limits.

 

(c)       An applicant must furnish Social Security numbers for household members 6 years or older.

 

(d)       An applicant must furnish evidence of citizenship/Eligible Immigration Status.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The Commission corrected the capitalization of the words “numbers” in subsection (c) and “citizenship” in subsection (d) pursuant to 1 CMC § 3806(f).

 

§ 100-90-305  Family Composition (24 CFR § 982.201(c))

 

The applicant must qualify as a “family.”

 

(a)       Family: Defined (24 CFR § 5.403 Definitions.) Family includes but is not limited to:

(1)       A family with or without children (the temporary absence of a child from the home due to placement in foster care shall not be considered in determining family composition and family size);

(2)       An elderly family;

(3)       A near-elderly family;

(4)       A disabled family;

(5)       A displaced family;

(6)       The remaining member of a tenant family; and

(7)       A single person who is not an elderly or displaced person, or a person with disabilities, or the remaining member of a tenant family.

 

(b)       Other Qualifying Relationships/Arrangements. The term “family” shall also include two or more persons (with or without children) regularly living together, related by blood, marriage, adoption, guardianship, or operation of law; OR two or more persons who are related but who are regularly living together and can verify shared income or resources; OR two or more persons who intend to share residency and whose income and resources are available to meet the family’s needs.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The Commission corrected the capitalization of the word “family” pursuant to 1 CMC § 3806(f). The Commission inserted a comma after the word “guardianship” in subsection (b) pursuant to 1 CMC § 3806(g).

 

§ 100-90-310  Income Limitation (HCV Program Guidebook 7420-10G: Income Limits)

 

(a)       HUD establishes income limits by family size for the area in which NMHC is located. The income limits are published annually in a HUD Notice and are generally effective on the date of publication. The income limits are available on the Internet at www.huduser.com at the “datasets” portal.

 

(b)       There are two income limits that are used to determine eligibility for the housing choice voucher program and a third that is used to ensure that NMHC has met its target for assisting the neediest families in the community.

(1)       The very low-income limit, which is set at 50 percent of the area median income, is the income limit generally used to determine initial program eligibility.

(2)       The low income-limit, set at 80 percent of the area median income, is used for families whose incomes fall below the very low-income limits but who are considered to be eligible for assistance:

(i)        Continuously assisted under the public housing or Section 8 programs;

(ii)       Non-purchasing households in the following homeownership programs: HOPE 1, HOPE 2 or other HUD-assisted multifamily home ownership programs covered under 24 CFR 284.173*;

(iii)      Displaced as a result of prepayment of a mortgage or voluntary termination of a mortgage insurance contract.

 

* So in original. 24 CFR 284.173 does not exist.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) and (b) pursuant to 1 CMC § 3806(a). The Commission corrected the capitalization of the word “programs” in subsection (b)(2)(i) pursuant to 1 CMC § 3806(f).

 

§ 100-90-315  Income Target Requirements (24 CFR § 982.201(b)(2))

 

At least 75 percent of the families who are admitted to NMHC’s housing choice voucher program during the housing agency’s fiscal year must be extremely low-income. Extremely low-income families are those with incomes at or below 30 percent of the area median income.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

§ 100-90-320  Social Security Numbers

 

Families are required to provide verification of Social Security numbers for all family members age six years or older prior to admission, if they have been issued a number by the Social Security Administration. This requirement also applies to persons joining the family after admission to the program.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The Commission corrected the capitalization of the word “numbers” pursuant to 1 CMC § 3806(f). The Commission struck the figure “6” pursuant to 1 CMC § 3806(e).

 

§ 100-90-325  Citizenship or Eligible Non-Citizen Status

 

(a)       In order to receive assistance, a family member must be a U.S. citizen or eligible immigrant. Individuals who are neither may elect not to contend with their status.

 

(b)       In addition to citizens, persons who qualify on the basis of “eligible immigration status” are:

(1)       A non-citizen lawfully admitted for permanent residence as an immigrant (including special agricultural workers granted lawful temporary resident status, but excluding alien visitors, tourists, diplomats, or students who enter the U.S. temporarily with no intention of abandoning their residence in a foreign county*);

(2)       A non-citizen who entered the U.S. before June 30, 1948 (or such later date as enacted by law) and who has continuously maintained residence in the U.S. since then and who is not ineligible for citizenship, but who is deemed to be lawfully admitted for permanent residence as a result of an exercise of discretion by the Attorney General;

(3)       A non-citizen who is lawfully present in the U.S. as a result of

(i)        refugee status,

(ii)       the granting of asylum which has not been terminated, or

(iii)      the granting of conditional entry prior to April 1, 1980 because of persecution on account of race, religion, or political opinion, or because of being uprooted by catastrophic national calamity;

(4)       A non-citizen who is lawfully present in the U.S. as a result of an exercise of discretion by the U.S. Attorney General for emergency reasons or reasons deemed strictly in the public interest;

(5)       A non-citizen who is lawfully present in the U.S. as a result of the Attorney General’s withholding deportation;

(6)       A non-citizen lawfully admitted for temporary or permanent residence; and

(7)       A non-citizen who is lawfully in the U.S. and its territories and possessions under Section 141 of the Compacts of Free Association between the U.S. government and the governments of the Marshall Islands, the Federated States of Micronesia, and Palau, while the applicable section is in effect.

 

* So in original.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) and (b) pursuant to 1 CMC § 3806(a).

 

§ 100-90-330  Changes in Eligibility Prior to Signing of HAP Contract

 

Changes that occur during the period between placement on the waiting list and issuance of a voucher may affect the family’s eligibility or Total Tenant Payment (TIP). For example, if a family exceeds the income limit prior to lease up (getting housed), the applicant will no longer be eligible for the assistance under program. The family will then be notified in writing of their ineligible status and their right to an informal review.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

§ 100-90-335  Ineligible Families

 

Families who are determined to be ineligible will be notified in writing of the reason for denial and given an opportunity to request an informal review or an informal hearing (if they were denied due to non-citizen status).

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Part 400 -       The Waiting List and Preference System

 

§ 100-90-401  Opening the Waiting List (24 CFR § 982.206)

 

NMHC shall issue a public notice advising the general public that applications for Section 8 are being accepted. The public notice shall contain the places, date, time, application procedures, and any limitations on who may apply and shall be published in a local newspaper of general circulation.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The Commission inserted a comma after the word “procedures” pursuant to 1 CMC § 3806(g).

 

§ 100-90-405  Preference System (24 CFR § 982.207)

 

(a)       Preferences are used to establish order of placement on waiting list. A preference does not guarantee admission. Preferences will be granted to applicants who are otherwise qualified and who, at the time they are certified for admission, meet the definitions of preferences prescribed.

 

(b)       Order of Preferences & Points Afforded:

(i)

Elderly

3 pts.

(ii)

Persons with Disabilities

3 pts.

(iii)

Involuntary Displacement

3 pts.

(iv)

Victims of Domestic Violence

3 pts.

(v)

Substandard Housing

2 pts.

(vi)

High Rent Burden (Rent is > 50 percent of income)

2 pts.

 

Involuntary displacement includes any of the following: disaster, fire, government action, action of housing owner, inaccessibility, and property disposition.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The sentence marked by the dagger was a footnote in the original regulation. The Commission moved it to the body of the regulation pursuant to 1 CMC § 3806(a). The Commission corrected the capitalization of words in the daggered section pursuant to 1 CMC § 3806(f).

 

§ 100-90-410  Closing the Waiting List (24 CFR § 982.206)

 

NMHC shall accept applications only if the waiting list is minimized to 500 or less applicants. Decisions to close the waiting list will also be based on the number of applications available for particular sizes of units available, the number of applicants who qualify for local preferences, and the ability of NMHC to house an applicant in an appropriate unit within a reasonable time. The closing of the waiting list, restricting intake, or re-opening the waiting list will be announced publicly in the newspaper with a general circulation, and the dates for both intake and closing of applications.

 

History: Amdts Adopted 38 Com. Reg. 38391 (July 28, 2016); Amdts Proposed 37 Com. Reg. 37239 (Nov. 28, 2015); Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

§ 100-90-415  Purging the Waiting List (24 CFR § 982.204(c))

 

(a)       Purging the waiting list prevents delays in leasing activities. When a waiting list is out of date, it can be very difficult, if not impossible, to reach applicants selected from the waiting list. Once they are contacted, their applicant status has often changed such that they no longer meet NMHC’s eligibility or selection criteria. If these delays occur regularly, they can result in a declining leasing rate. Therefore, the primary goal in purging the waiting list is, to obtain current information on interested applicants and to remove applicants no longer interested in participating in the program. (HCV Program Guidebook 7420-10G: Purging and Updating a Waiting List.)

 

(b)       NMHC will update and purge its waiting list bi-annually or as needed, and based on the agency’s waiting list turnover and housing success rates. Every six months or as it deems necessary, NMHC shall send out a written invitation to applicants to attend an eligibility appointment. Failure to attend appointment or respond to this invitation may be used as grounds for an applicant’s removal from the program's waiting list. Additionally, NMHC may also remove an applicant’s name if the written invitation is returned by the post office and marked “undeliverable.”

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

§ 100-90-420  Selection and Admission from the Waiting List

 

Applicants shall be selected in the order of date and time of the initial application with consideration given to HUD’s income targeting requirements as well as agency preference policies as adopted by NMHC.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

§ 100-90-425  Removing Applicants from the Waiting List

 

NMHC may remove an applicant from the program’s waiting list for the following reasons:

 

(a)       An applicant requests that his/her name be removed;

 

(b)       An applicant fails to respond to a written request for information updating;

 

(c)       An applicant fails to respond to a written request declaring his/her continued interest;

 

(d)       An applicant no longer meets the program’s eligibility criteria.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

§ 100-90-430  Special Admissions/Non-Waiting List Admissions (HCV Program Guidebook 7420-10G: Special Admissions/Non-Waiting List Admissions)

 

(a)       HUD may award NMHC special program funding that is targeted for families living in specified units. (24 CFR § 982.203) For instance, special housing choice voucher program funding can be targeted to:

(1)       Families displaced because of demolition or disposition of a public housing development;

(2)       Families residing in a multifamily rental housing project when HUD sells, forecloses, or demolishes the project;

(3)       For housing covered by the Low Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA), non-purchasing families residing in a project subject to a homeownership program or families displaced because of a mortgage prepayment or voluntary termination of a mortgage insurance contract;

(4)       Families residing in a project covered by a project-based Section 8 HAP contract at or near the end of the HAP contract term; and

(5)       Non-purchasing families residing in a HOPE I or HOPE II project.

 

(b)       If HUD awards program funding that is targeted for families living in specified units, NMHC must use the assistance for the families living in these units. NMHC must maintain records showing that the family was issued a HUD-targeted voucher.

 

(c)       Unit leased by non-waiting list admissions are not counted when calculating NMHC’s performance under SEMAP Indicator 1.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The Commission inserted a comma after the word “forecloses” in subsection (a)(2) pursuant to 1 CMC § 3806(g).

 

§ 100-90-435  Grounds for Denial (24 CFR §§ 982.552 and 982.553)/Termination

 

(a)       Mandatory Denial or Termination. NMHC shall deny or terminate assistance to applicants/participants for the following reasons:

(1)       If a member of the family refuses to sign and submit HUD or NMHC required consent forms for obtaining information.

(2)       If a member of the family has been arrested, charged, or convicted of illegal possession, manufacturing, or distribution of a controlled substance.

(3)       If no member of the family is a U.S. citizen or eligible immigrant.

(4)       If the family is under contract and 180 days have elapsed since the NMHC’s last housing assistance payment was made.

(5)       If any member of the household is subject to a lifetime registration requirement under a state sex offender registration program. NMHC shall deny assistance to any member of the household determined to be registered sex offender under a state sex offender registration program regardless of determination showing a lifetime registration or not.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The Commission corrected the capitalization of the word “state” in subsection (a)(5) pursuant to 1 CMC § 3806(f).

 

§ 100-90-440  Notification of Adverse Actions

 

NMHC shall provide a family (applicant or participant) a written notice that states:

 

(a)       The reason(s) for the adverse action;

 

(b)       The effective date of the adverse action;

 

(c)       The family’s right, if they disagree, to request for an informal review or hearing to be held before the effective date of the adverse action.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Part 500 -       Housing Quality Standards (HQS)

 

§ 100-90-501  General

 

Housing Quality Standards (HQS) are HUD’s minimum pre-qualifying standards required of landlords/owners who wish to have their units registered under the program’s approved landlord registry. HQS is designed to ensure that the registered and participating unit is decent, safe, and sanitary. HQS is required for both initial occupancy and during the duration of the lease term. NMHC will make available to the public the list of HQS requirements and print brochures of landlord and tenant responsibilities with respect to complying with HQS requirements and violation penalties.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The Commission corrected the capitalization of the words “landlord” and “tenant” pursuant to 1 CMC § 3806(f).

 

§ 100-90-505  Pre-Contract and Periodic HQS Inspections (24 CFR § 982.405(a))

 

(a)       The NMHC must inspect the unit leased to a family prior to the initial term of the lease, at least annually during assisted occupancy, and at other times as needed, to determine if the unit meets the HQS.

 

(b)       Rent Reasonableness [See § 100-90-910].

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) and (b) pursuant to 1 CMC § 3806(a). The Commission substituted section numbers pursuant to 1 CMC § 3806(d).

 

§ 100-90-510  Annual HQS Inspections (HCV Program Guidebook 7420-10G: Annual Inspection Process and Procedure)/Abatement and Termination

 

(a)       The annual inspection process includes scheduling the unit for inspection, notifying owners and tenants of the inspection date and time, conducting the inspection, enforcing HQS requirements, and when necessary, taking action to abate payments and terminate HAP contracts and program assistance. Inspection requirements are as follows:

(1)       The unit must be in compliance with HQS requirements throughout the assisted tenancy.

(2)       Each unit must be inspected annually during assisted tenancy to determine if the unit meets HQS. The inspection must be conducted within twelve months of the previous inspection to meet Section Eight Management Assessment Program (SEMAP) requirements.

(3)       NMHC shall notify owners and tenants of HQS deficiencies in writing, and indicate a time period in which to make HQS corrections so that the agency complies with SEMAP requirements.

 

(b)       Abatement of Housing Assistance Payments. NMHC must abate housing assistance payments to the owner for failure to correct an HQS violation under the following circumstances:

(1)       An emergency (life-threatening) violation is not corrected within 24 hours of inspection and the PHA did not extend the time for compliance;

(2)       A routine violation is not corrected within 30 days of the inspection and NMHC did not extend the time for compliance;

(3)       Except in the case of life threatening violations requiring corrections within 24 hours, the owner must receive 30-day written notification of the abatement;

(4)       Abatements must begin on the first of the month following the failure to comply.

 

(c)       Termination of HAP Contract. NMHC must terminate the HAP contract if the repairs are not made. Abatements of payments lasting six or more months shall constitute an automatic termination of the HAP contract. NMHC shall not terminate the contract until the family finds another unit provided the family does so in a reasonable time.

 

(d)       Termination of Program Assistance. NMHC shall terminate program assistance to families who fail to correct HQS deficiencies that they caused. NMHC shall notify the owner of its intent to terminate the family’s program participation and assistance so that the owner can begin eviction procedures. NMHC shall continue to pay the owner until the eviction is completed.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) through (d) pursuant to 1 CMC § 3806(a).

 

§ 100-90-515  Quarterly HQS Inspections/Abatement and Termination

 

(a)       The quarterly inspection process includes scheduling the unit for inspection, notifying owners and tenants of the inspection date and time, conducting the inspection, enforcing HQS requirements, and when necessary, taking action to abate payments and terminate HAP contracts and program assistance.

(1)       The quarterly HQS inspections complement Annual and Special HQS inspections and are intended to ensure that Section 8 assisted units are in compliance with HQS requirements throughout the assisted tenancy.

(2)       Units must be inspected quarterly during assisted tenancy to determine that Section 8 assisted units are in compliance with HQS requirements.

(3)       NMHC shall notify owners and tenants of HQS deficiencies in writing, and indicate a time period in which to make HQS corrections so that the agency complies with SEMAP requirements.

 

(b)       Abatement of Housing Assistance Payments. NMHC must abate housing assistance payments to the owner for failure to correct an HQS violation under the following circumstances:

(1)       An emergency (life-threatening) violation is not corrected within 24 hours of inspection and the PHA did not extend the time for compliance;

(2)       A routine violation is not corrected within 30 days of the inspection and NMHC did not extend the time for compliance.

(3)       Except in the case of life threatening violations requiring corrections within 24 hours, the owner must receive 30-day written notification of the abatement.

(4)       Abatements must begin on the first of the month following the failure to comply.

 

(c)       Termination of HAP Contract. NMHC must terminate the HAP contract if the repairs are not made. Abatements of payments lasting six or more months shall constitute an automatic termination of the HAP contract. NMHC shall not terminate the contract until the family finds another unit provided the family does so in a reasonable time.

 

(d)       Termination of Program Assistance. NMHC shall terminate program assistance to families who fail to correct HQS deficiencies that they caused. NMHC shall notify the owner of its intent to terminate the family’s program participation and assistance so that the owner can begin eviction procedures. NMHC shall continue to pay the owner until the eviction is completed.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) through (d) pursuant to 1 CMC § 3806(a).

 

§ 100-90-520  HQS Quality Control (24 CFR § 985.3(e))/Re-Inspection of Units

 

(a)       NMHC’s manager for the program and housing division or other qualified person (24 CFR § 985.3(e)(1)) must re-inspect a sample of units under contract during the last fiscal year.

 

(b)       Completed HQS inspections included in the sample must be no older than three months old at the time of the re-inspection. The sample must represent a cross section of neighborhoods where the program units are located and inspections completed by all HQS inspector(s).

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) and (b) pursuant to 1 CMC § 3806(a).

 

§ 100-90-522  Verification of HQS Deficiency Correction (PIH 2012-15)

 

If NMHC determines that a unit does not meet HQS requirements during an annual, quarterly, or special inspection, aside from a re-inspection/follow-up inspection, verification of the correction of deficiencies may also be obtained by the following means:

 

(a)       Owner’s certification,

 

(b)       A receipt from a vendor,

 

(c)       A photo of the repair, or

 

(d)       Tenant confirmation that required repairs were completed, followed by the verification of that action at the next on-site inspection.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014).

 

Commission Comment: This section did not appear in the initial proposal of this chapter (35 Com. Reg. 34400 (Oct. 28, 2013)). It was added in the Notice of Adoption.

 

§ 100-90-525  HQS Enforcement

 

Part 982 does not create any right of the family, or any party other than HUD or the PHA, to require enforcement of the HQS requirements by HUD or the PHA, or to assert any claim against HUD or the PHA, for damages, injunction or other relief, for alleged failure to enforce the HQS. (24 CFR § 982.406).

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

§ 100-90-530  Applicability of CNMI Building Safety Code

 

Commercial units registered under NMHC’s Section 8 Housing Choice Voucher Program shall be subject to the requirements of the CNMI’s Building Safety Code upon the adoption of the aforesaid Code by the Northern Marianas Housing Corporation’s Board of Directors and the approval of the U.S. Department of Housing and Urban Development as prescribed by 24 CFR § 982.401 (a)(4)(i) and (4)(ii)(A).†† See Appendix C for CNMI Building Safety Code Rules and Regulations as published in the Commonwealth Register, Volume 31, Number 05, May 20, 2009 and as certified and adopted in the Commonwealth Register, Volume Number 08, August 27, 2009.

 

(4)(i) In addition to meeting HQS performance requirements, the housing must meet the acceptability criteria variations in this section, unless variations are approved by HUD.

†† (4)(ii) HUD may approve acceptability criteria variations for the following purposes: (A) Variations which apply standards in local housing codes or other codes adopted by the PHA.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The text marked with daggers was originally located in footnotes. The Commission moved it to the body of the section pursuant to 1 CMC § 3806(a).

 

Part 600 -       Determination of Family Income

 

§ 100-90-601  Annual Income

 

(a)       Annual income is the gross or total income, monetary or not, a family is anticipated to receive from a source outside the family in the 12 months following admission or reexamination minus allowable exclusions. See 24 CFR 5.609. Income from all sources of each member of the household who is eighteen years or older shall be counted.

 

(b)       Annual income does not include income that is excluded by regulation.

 

(c)       NMHC must include the income of every person listed on the lease, including those temporarily absent from the household.

 

(d)       The income of a temporarily absent spouse† must be included in determining annual income. The income of permanently absent family members is not considered.

 

NMHC defines a temporarily absent spouse to be a program participant who is absent from the assisted unit for a period not to exceed six months.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) through (d) pursuant to 1 CMC § 3806(a). The Commission struck the figures “18” from subsection (a) and “6” from the daggered sentence pursuant to 1 CMC § 3806(e). The Commission corrected the capitalization of the words “annual income” pursuant to 1 CMC § 3806(f). The text marked with daggers was originally located in footnotes. The Commission moved it to the body of the section pursuant to 1 CMC § 3806(a).

 

§ 100-90-605  Determining Adjusted Income

 

Deductions and allowances are amounts that are subtracted from a family’s annual income to produce adjusted income.

 

(a)       Annual Income Inclusions. Annual income includes all amounts anticipated to be received by the household in the 12 months following certification or reexamination. Annual income includes:

(1)       Income which goes to, or on behalf of, the family head or spouse or to any other household member;

(2)       Amounts, monetary or not, anticipated to be received from a source outside the family during the 2-month period following admission or reexamination effective date;

(3)       Income from assets to which any member of the family has access.

(4)       Therefore, annual income includes, but is not limited to the following:

(i)        Wages and salaries;

(ii)       Net business income;

(iii)      Payments in lieu of earnings;

(iv)      Public assistance;

(v)       Imputed welfare income (24 CFR 5.615);

(vi)      Periodic payments and allowances;††

(vii)     Lump sum receipts;

(viii)    Determinable allowances and regular cash contributions;

(ix)      Armed Forces pay;

(x)       Income of dependents; and

(xi)      Income of temporarily absent family members.

 

(b)       Annual Income Exclusions. In determining a family’s adjusted income, some amounts are prohibited from being included in a family’s income for rent determination purposes. These amounts, called exclusions, are not part of annual income. Family annual income derived from the following shall be excluded:

(1)       Wages of family members under age 18;

(2)       Earnings in excess of $480 for full-time students over age 18 (except HoH or spouse);

(3)       Refunds or rebates of property tax on home;

(4)       Payments for student financial assistance paid directly to the student or educational institution (24 CFR Part 5, 880 and 883);

(5)       Lump-sum additions to family assets;

(6)       Lump-sum payments of deferred benefits;

(7)       Amounts set aside for use under PASS;†††

(8)       Temporary, non-recurring, sporadic income;

(9)       Amounts received for reimbursements of medical expenses of any family member;

(10)     Income of live-in aides;

(11)     Adoption assistance payments in excess of $480 per child of adoption assistance payments;

(12)     Payments to keep developmentally disabled family members at home;

(13)     Payments received for the care of foster children or adults;

(14)     Armed Forces hostile fire pay;

(15)     Foreign government reparation payments;

(16)     Earnings and benefits from employment training programs funded by HUD;

(17)     Incremental earnings and benefits from participation in qualifying state and local employment programs;

(18)     Reimbursement for out of pocket expenses while attending a public assisted training program;

(19)     Resident service stipend not to exceed $200 per month for services to NMHC; and

(20)     Other applicable federally mandated exclusions.

 

(c)       Deductions from Annual Income.

(1)       Mandatory Deductions and Allowances.

(i)        $480 for each dependent;††††

(ii)       $400 for any elderly family or disabled family;

(iii)      Un-reimbursed child care expenses necessary to enable a family member to work, actively seek employment or further his/her education;

(iv)      Disability assistance expenses;††††††

(v)       Un-reimbursed medical expenses in excess of 3% of annual income of elderly/disabled families.

(2)       Allowable Medical Expenses.

(i)        Non-Prescription Medicines: Non-prescription medicines must be recommended by a medical physician in order to be considered a medical expense.

(ii)       Alternative Medicine: Acupressure, acupuncture, related herbal medicines, and chiropractic services will be considered allowable medical expenses if verified by a medical physician.

(3)       Childcare Expenses. Child care expenses for children under the age of thirteen, including foster children, may be deducted from annual income if they enable an adult to work or attend school full time. Deductions for child care expenses will be allowed based on the following situations:

(i)        Child care to work: The maximum child care expense allowed must be less than the amount earned by the person enabled to work.

(ii)       Child care for school: The number of hours claimed for child care may not exceed the number of hours the family member is attending school.

(iii)      The deduction is not given if the child care expenses are paid for or reimbursed by an agency or person outside the household. If the expense is incurred to enable a family member to work, the expense cannot exceed the amount earned.

(iv)      When two or more adult household members work, NMHC defines the “person enabled to work” as the one who earns the least unless it is obvious that another household member is enabled to work.

(v)       If childcare expense is required for both work and education, NMHC shall prorate the time and expense to assure that the portion attributable to employment does not exceed the amount earned.

(vi)      Rate of expense: NMHC will survey the local care providers in the community as a guideline. The weekly expense for child care shall not exceed comparable practice.

 

Public assistance includes Temporary Assistance to Needy Families (TANF) or general assistance.

†† Amounts received from Social Security, Supplemental Income, annuities, insurance policies, retirement funds, pensions, disability or death benefits, alimony or spousal support, child support, or other types of periodic receipts.

††† Amounts received by a person with a disability that are disregarded for a limited time for purposes of SSI eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS) are excluded in the calculation of annual income.

†††† The Head of Household (HoH), spouse of the HoH, foster children/adults, and live-in aides or spouses and dependents of live-in aides are never considered dependents.

††††† Disability assistance expenses are costs incurred for care attendant or auxiliary apparatus that are necessary in order for an adult member of the household, including the disabled person, to work.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The Commission made extensive corrections to capitalization in this section pursuant to 1 CMC § 3806(f). The Commission struck the figure “13” from subsection (e) pursuant to 1 CMC § 3806(e). The Notice of Adoption made a correction to subsection (b)(19).

 

Part 700 -       Reasonable Accommodations

 

§ 100-90-701  General (PIH Notice 02-I)

 

When a family member requires an accessible feature(s) or policy modification to accommodate a disability, NMHC must provide such feature(s) or policy modification unless doing so would result in a fundamental alteration in the nature of its program or an undue financial and administrative burden. If providing such feature(s) would result in a financial and administrative burden, NMHC is required to take any other action that would not result in an undue burden. NMHC is required to institute reasonable adjustments to its rules, policies, practices, and procedures in order to enable an applicant or resident with a disability to have an equal opportunity to use and enjoy the unit, the common areas of a dwelling, or participate in or access other activities conducted/sponsored by the recipient.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The Commission inserted a comma after the word “dwelling” pursuant to 1 CMC § 3806(g).

 

Part 800 -       Leasing and Occupancy Standards

 

§ 100-90-801  Determining Unit Size of Each Voucher (Voucher Size)

 

(a)       NMHC does not determine who shares a bedroom/sleeping room. NMHC’s occupancy standards for determining unit size of each voucher or voucher size shall be applied in a manner consistent with Fair Housing guidelines. All standards in this section relate to the number of bedrooms stated on the voucher, not the family's actual living arrangements. The unit size on the voucher remains the same as long as the family composition remains the same, regardless of the actual unit size rented.

 

(b)       NMHC assigns one bedroom to two people within the following guidelines:

(1)       Persons of different generations, persons of the opposite sex (other than spouses or co-heads) children over 3 years of age and unrelated to the adult household members shall be afforded a separate bedroom;

(2)       Live-in aides shall be provided a separate room; and

(3)       Single person families shall be allocated an efficiency or one bedroom unit.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) and (b) pursuant to 1 CMC § 3806(a).

 

§ 100-90-805  Guidelines Table for Determining Voucher Size

 

(a)

Voucher Size

Person in Household

(Minimum #)

(Maximum #)

0 Bedroom

1

1

1 Bedroom

1

2

2 Bedrooms

2

4

3 Bedrooms

3

6

4 Bedrooms

4

8

5 Bedrooms

6

10

6 Bedrooms

8

12

 

(b)       Exemptions from Occupancy Standards. NMHC shall grant exemptions from the standards if the family requests and NMHC determines the requests are justified by relationship, age, sex, health, or disability of family members or under any other individual or exigent circumstances.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) and (b) pursuant to 1 CMC § 3806(a).

 

§ 100-90-810  Briefing

 

(a)       A full HOD-required briefing will be conducted for applicant families who are determined to be eligible for assistance. The briefings will be conducted in group meetings.

 

(b)       The purpose of the briefing is to explain the documents in the voucher holder’s packet to families so that they are fully informed about the program. This will enable them to utilize the program to their advantage and it will prepare them to discuss it with potential owners and property managers.

 

(c)       NMHC will not issue a voucher to a family unless the head of household has attended a briefing and signed the voucher. Applicants who provide prior notice of inability to attend a briefing will automatically be re-rescheduled for another or the next briefing. Applicants who fail to attend two scheduled briefings, without a valid reason, may be denied assistance.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) through (c) pursuant to 1 CMC § 3806(a). The Commission struck the figure “2” from subsection (c) pursuant to 1 CMC § 3806(e).

 

§ 100-90-915  Briefing Packet

 

(a)       The documents and information provided in the briefing packets for the voucher programs must comply with all HUD requirements. NMHC may also include other pertinent information and/or materials which are not required by HUD.

 

(b)       The briefing packet shall contain the following items:

(1)       The term of the voucher;

(2)       A description of the method used to calculate the assistance payment and utility allowances;

(3)       The HUD lease addendum and NMHC sample lease;

(4)       The Request for Lease Approval (RFLA) and a description of the procedure requesting approval for a unit;

(5)       The subsidy standards and the voucher size relates to the unit size selected;

(6)       The HUD brochure on lead-based paint hazards;

(7)       Information on federal, Commonwealth, and local equal opportunity laws including a pamphlet entitled, “Fair Housing, It’s Your Right;” the form for reporting suspected discrimination;

(8)       A list of landlords other parties willing to lease a assisted families or help in the search;

(9)       If a family includes a person with disabilities, NMHC shall provide a list of available accessible units;

(10)     The family obligations under the program;

(11)     The grounds for termination of assistance because of family action or failure to act; and

(12)     Information on informal hearings, hearing procedures, and portability.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) and (b) pursuant to 1 CMC § 3806(a). The Commission corrected the capitalization of the words “informal hearings” in subsection (b)(12) pursuant to 1 CMC § 3806(f).

 

§ 100-90-820  Issuance of Vouchers

 

(a)       Eligible Applicants/Funding Availability. When funding is available, NMHC shall issue vouchers to eligible applicants ranked highest on the program’s waiting list and who are deemed to be income eligible at the time of the actual issuance date. The issuance of vouchers must be within the dollar limitations as set by the ACC budget.

 

(b)       Voucher and Contractual Agreement. During the briefing sessions, each household will be issued a voucher which shall represent a contractual agreement between NMHC and the family specifying the rights and responsibilities of each party. The voucher does not constitute admission to the program which occurs when the lease and contract become effective.

 

(c)       Expiration of Voucher after Issuance.

(1)       The voucher is valid for a period of sixty calendar days from the date of the issuance. The family must submit a Request for Lease Approval within the sixty day period.

(2)       If the voucher has expired and has not been extended by NMHC or expires after the extension, the family will be denied assistance. The family will not be entitled to a review hearing.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs of subsection (c) of the original regulation were undesignated. The Commission designated the paragraphs as subsections (c)(1) and (c)(2) pursuant to 1 CMC § 3806(a). The Commission struck the figure “60” from subsection (c)(1) pursuant to 1 CMC § 3806(e).

 

§ 100-90-825  Term and Extensions on Unit Searching (HCV Program Guidebook 7420-10G: Extensions of Search Time)

 

(a)       NMHC reserves the authority to grant extensions of search time and to determine the length of an extension and the circumstances under which extensions will be granted. If NMHC grants an extension, it shall provide written notice to the family. There shall be no time set on the number of extensions NMHC can approve.

 

(b)       NMHC must approve an additional search term if needed as a reasonable accommodation to make the program accessible and usable by a person with disabilities. The extension period shall be reasonable for the purpose.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) and (b) pursuant to 1 CMC § 3806(a).

 

§ 100-90-830  Requests for Lease Approval

 

(a)       The Request for Lease Approval (RFLA) and a copy of the proposed lease must be submitted by the family during the term of the voucher.

 

(b)       The RFLA must be signed by both the unit owner and the voucher holder. The lease may be executed up to sixty days prior to contract execution and shall not be consummated without approval of NMHC.

 

(c)       NMHC shall not permit a family to submit more than one RFLA at a time.

 

(d)       NMHC shall review the documents to determine whether they are “approvable.” The Request for Lease Approval shall be approved IF:

(1)       The unit is an eligible type of housing;

(2)       The unit meets HUD’s Housing Quality Standards (and any additional local criteria as identified in this chapter);

(3)       The contract rent is reasonable. Rent and utility allowance shall not exceed NMHC’s current payment standards, unless exceptions are granted;

(4)       The security deposit is approvable; and

(5)       The proposed lease complies with HUD and NMHC requirements and applicable federal, state, and local laws governing the program.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) through (d) pursuant to 1 CMC § 3806(a). The Commission struck the figures “60” from subsection (b) and “1” from subsection (c) pursuant to 1 CMC § 3806(e). The Commission substituted the phrase “this chapter” for “this Administrative Plan” in subsection (d)(2) pursuant to 1 CMC § 3806(d).

 

§ 100-90-835  Disapproval of Owner

 

(a)       For the purposes of this section, “owner” includes a principal or other interested party.

 

(b)       NMHC shall disapprove a registered owner or an owner in the process of registering his/her housing unit for the following reasons:

(1)       HUD has informed NMHC that the owner has been disbarred, suspended, or subject to a limited denial of participation under 24 CFR part 24;

(2)       HUD has informed NMHC that the federal government has instituted an administrative or judicial action against the owner for violation of the Fair Housing Act or other federal equal opportunity requirements and such action is pending;

(3)       HUD has informed NMHC that court or administrative agency has determined that the owner violated the Fair Housing Act or other federal equal opportunity requirements;

(4)       The owner has violated obligations under a housing assistance payment contract under section 8 of the 1937 Act;

(5)       The owner has committed fraud, bribery, or any other corrupt act in connection with any federal housing program;

(6)       The owner has engaged in drug trafficking;

(7)       The owner has a history or practice of non-compliance with the HQS for units leased under the tenant-based programs or with applicable housing standards of units leased with project based Section 8 assistance or leased under any other federal housing program; or

(8)       Conflict of Interest: NMHC shall not execute a HAP contract when the owner of the unit is a relative of the family to be assisted, unless approving such a tenancy would provide reasonable accommodation for a disabled family member.

 

(c)       It is the policy of NMHC to recruit owners to participate in the program, and to provide owners with prompt and professional service in order to maintain an adequate supply of available housing throughout the jurisdiction of NMHC. These regulations define when NMHC must disallow an owner from participating in the rental assistance programs and HUD provides NMHC with discretion to disapprove or other restrict the participation of owners in certain categories.

(1)       Owner Restrictions and Penalties – If an owner commits fraud or abuse or is guilty of frequent or serious contract violations, NMHC will restrict the owner from future participation in the rental assistance programs for a period commensurate with the seriousness of the offense. NMHC may also terminate some or all other HAP contracts with the owner.

(2)       Overpayment to Owners – If the owner has been overpaid as a result of fraud, misrepresentation, or violation of the Housing Assistance Payment Contract, NMHC may terminate the contract and arrange for restitution to NMHC and/or family as appropriate.

(3)       NMHC will make every effort to recover any overpayments made as a result of landlord fraud or abuse. Payments otherwise due to the owner may be debited in order to repay NMHC or the tenant as applicable.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) and (b) pursuant to 1 CMC § 3806(a). The Commission inserted commas after the words “bribery” in subsection (b)(5) and “misrepresentation” in subsection (c)(2) pursuant to 1 CMC § 3806(g). The Commission corrected the spelling of the word “disabled” in subsection (b)(8) pursuant to 1 CMC § 3806(g). Subsection (c) did not appear in the October 2013 proposed regulations. It was added in the February 2014 Notice of Adoption.

 

Part 900          Housing Subsidy, Tenant Rent and Payment Standards

 

§ 100-90-901  General (HCV Program Guidebook 7420-10G: Calculating Rent and HAP Payments)

 

The determination of the family’s share of total housing costs and NMHC’s housing assistance payment (HAP) is a two step process. When the housing choice voucher is issued, the applicant or participant must be given information on the minimum the family is expected to contribute to the housing costs and the maximum subsidy that the PHA can pay. Because the family has the option of selecting a unit with a rent that is more or less than NMHC’s payment standard, the final calculation of the family’s share of the housing costs and the HAP amount cannot be completed until the family has selected a unit.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

§ 100-90-905  Payment Standards

 

(a)       NMHC is required to establish payment standard amounts for each unit size in an FMR area. The payment standard amounts may be within several ranges depending on facts about the rental market. (HCV Program Guidebook 7420-10G: Establishing Payment Standard Amounts.)

 

(b)       NMHC currently administers a payment standard that is at 90% of the published FMR set for Guam and the Pacific Islands.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

§ 100-90-910  Rent Reasonableness (24 CFR § 982.507)

 

(a)       NMHC may not approve a lease until it determines that the initial rent to owner is a reasonable rent.

 

(b)       Redetermination of Reasonable Rent. The PHA must re-determine the reasonable rent:

(1)       Before any increase in the rent to owner;

(2)       If there is a five percent decrease in the published FMR in effect 60 days before the contract anniversary (for the unit size rented by the family) as compared with the FMR in effect 1 year before the contract anniversary; or

(3)       If directed by HUD.

(4)       The NMHC may also re-determine the reasonable rent at any other time.

 

(c)       Rent to Owner May Not Exceed Reasonable Rent. At all times during the assisted tenancy, the rent to owner may not exceed the reasonable rent as most recently determined or re-determined by the NMHC.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) through (c) pursuant to 1 CMC § 3806(a).

 

§ 100-90-915  Comparability (24 CFR § 982.507)

 

(a)       NMHC must determine whether the rent to owner is a reasonable rent in comparison to rent for other comparable unassisted units. To make this determination, the NMHC must consider:

(1)       The location, quality, size, unit type, and age of the contract unit; and

(2)       Any amenities, housing services, maintenance, and utilities to be provided by the owner in accordance with the lease.

 

(b)       Owner Certification of Rents Charged. By accepting each monthly housing assistance payment from NMHC, the owner certifies that the rent to owner is not more than rent charged by the owner for comparable unassisted units in the premises. The owner must give NMHC information requested by NMHC on rents charged by the owner for other units in the premises or elsewhere.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) and (b) pursuant to 1 CMC § 3806(a). The Commission inserted a comma after the word “maintenance” in subsection (a)(2) pursuant to 1 CMC § 3806(g).

 

§ 100-90-920  Rent Calculations

 

(a)       Calculating Total Tenant Payment (TTP).

(1)       The TTP must be calculated for each family. The TTP represents the minimum amount a family must contribute toward rent and utilities regardless of the unit selected.

(2)       The TTP is calculated using a statutory formula and the individual income information.

(3)       TTP equals the greater of:

(i)        10% x monthly income;

(ii)       30% x monthly income;

(iii)      Minimum rent; or

(iv)      Welfare rent (in as paid states).

 

(b)       Gross Income/Source Codes.

(1)       Gross income to the household includes that which is excluded by law, regulation, HUD Notice and local policy.

(2)       Use of source codes found on Form HUD-50058 to report all income to the household, including excluded amounts.

(i)        B = Own business

(ii)       F = Federal wage

(iii)      HA = Pha wage

(iv)      M = Military pay

(v)       W = Other wage

(vi)      G = General assistance

(vii)     IW = Imputed welfare income

(viii)    T = TANF assistance

(ix)      P = Pension

(x)       S = SSI

(xi)      SS = Social Security

(xii)     C = Child support

(xiii)    E = Medical reimbursement

(xiv)    I = Indian trust/per capita

(xv)     N = Other nonwage sources

(xvi)    U = Unemployment benefits

 

(c)       Annualizing Income. If income is received multiplied by:

(1)

Semi-annually

2

(2)

Monthly

12

(3)

Semi-monthly

24

(4)

Bi-weekly

26

(5)

Weekly

52

(6)

Hourly (40hrs/wk)

2080

 

(d)       Annual Income. To arrive at annual income for each family:

(1)       Subtract excluded amounts from gross income.

(2)       Add income from assets.

(3)       Balance equals annual income per year.

 

(e)       Annual Adjusted Income. From annual income, subtract total allowances and deductions, as shown below:

(1)       $400 per elderly/disabled household

(2)       $480 per dependent

(3)       Allowable child care

(4)       Allowable disability assistance expense

(5)       Allowable medical expenses

 

(f)        Monthly Adjusted Income. Monthly adjusted income equals annual adjusted income divided by 12.

 

(g)       Rent to Owner and Gross Rent/Rent Reasonableness

(1)       The rent to owner is the rent the owner is charging for the unit including any utilities the owner provides under the lease. NMHC must determine whether the rent is reasonable pursuant to Section 8 and SEMAP regulations. NMHC must have a policy and procedure for determining rent reasonableness which considers the following nine factors:

(i)        Type of unit

(ii)       Quality of the property

(iii)      Location

(iv)      Size

(v)       Age

(vi)      Utilities included in rent

(vii)     Housing services provided

(viii)    Maintenance

(ix)      Amenities

(2)       Rent reasonableness must be documented in the tenant file for the initial rent, any time the landlord requests an increase in rent, and when required by HUD.

(3)       A utility allowance is calculated for each family based on NMHC’s schedule of average utility consumption by unit size for each of the family paid utilities.

(4)       The gross rent represents the entire housing cost. It is calculated by adding the rent to owner and the utility allowance for the unit. If all utilities are included in the rent, the rent to owner and the gross rent will be the same.

Example

Gross Rent Calculation

Rent to owner

$300

Plus utility allowance

$125

Gross rent

$425

 

(h)       Calculating the Housing Assistance Payment (HAP).

(1)       The actual HAP payment cannot be calculated until the family has selected a unit and the gross rent for the unit is known.

(2)       The subsidy cannot exceed the maximum subsidy but may be less than the maximum subsidy if the gross rent for the unit is less than the payment standard amount.

(3)       The HAP is the lower of:

(i)        The payment standard for the family minus the TTP; or

(ii)       The gross rent minus the TTP.

Example

HAP Payment Calculation

Payment standard

$450

TTP

$210

 

(4)       If the payment standard is $450 and the gross rent of the selected unit is $425, using the TIP of $210 the HAP would be the lower of:

Payment standard minus TTP

($450-$210)

$240

Or gross rent minus TTP

($425-$210)

$215

HAP equals

 

$210

 

(5)       If the gross rent of the selected unit is $500, the HAP would be the lower of

Payment standard minus TTP

($450-$210)

$240

Or gross rent minus TTP

($500-$210)

$290

HAP equals

 

$240

 

(i)        Family Share.

(1)       The family share is the family’s contribution toward the gross rent. The family share cannot be calculated until a unit is selected.

(2)       The family share will be the TTP or a higher amount, depending on the unit the family selects. For a family leasing a unit with a gross rent at or below the payment standard for the family, the family share will be the same as the TTP.

(3)       If a family leased a unit with a gross rent above the payment standard for the family, the family share will be the TTP plus the amount by which the gross rent exceeds the payment standard.

 

History: Adopted 36 Com. Reg. 34701 (Feb. 28, 2014); Proposed 35 Com. Reg. 34400 (Oct. 28, 2013).

 

Commission Comment: The paragraphs in the original regulation were undesignated. The Commission designated the paragraphs as subsections (a) through (i) pursuant to 1 CMC § 3806(a). The Commission corrected capitalization throughout the section pursuant to 1 CMC § 3806(f).

 

§ 100-90-925  Maximum Subsidy

 

The maximum subsidy payable by the PHA is the payment standard minus the TTP. The maximum subsidy calculation is done at the same time the family is issued a housing choice voucher. The actual subsidy can be calculated only after the family has selected a specific unit.