§ 950.1004 - Fundamental criteria for HUD approval.

HUD will approve an IHA's homeownership plan if it meets all three of the following criteria:

(a) Workability. The plan shall be practically workable, with sound potential for long-term success. Financial viability, including the capability of purchasers to meet the financial obligations of homeownership, is a critical requirement.

(b) Legality. The plan shall be consistent with law, including the requirements of this part and any other applicable Federal, tribal, State, and local statutes and regulations, and existing contracts. Subject to the other two criteria stated in this section, any provision that is not contrary to those legal requirements may be included in the plan, at the discretion of the IHA, whether or not expressly authorized in this subpart P.

(c) Documentation. The plan shall be clear and complete enough to serve as a working document for implementation, as well as a basis for HUD review.