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9 <br /> (1) The participating jurisdiction must establish maximum monthly allowances for utilities and <br /> services (excluding telephone) and update the allowances annually. The participating jurisdiction <br /> must use the HUD Utility Schedule Model or otherwise determine the utility allowance for the rp oject <br /> based on the type of utilities used at the rp oject. <br /> (2) The participating jurisdiction must review and approve rents proposed by the owner for units, <br /> subject to the maximum rent limitations in paragraphs (a) or (b) of this section. For all units subject <br /> to the maximum rent limitations in paragraphs (a) or(b) of this section for which the tenant is paying <br /> utilities and services, the participating jurisdiction must ensure that the rents do not exceed the <br /> maximum rent minus the monthly allowances for utilities and services. <br /> (e)Periods of affordability. The HOME-assisted units must meet the affordability requirements for not <br /> less than the applicable period specified in the following table, beginning after project completion. <br /> (1) The affordability requirements: <br /> (i) Apply without regard to the term of any loan or mortgage, repayment of the HOME investment, <br /> or the transfer of ownership; <br /> (ii) Must be imposed by a deed restriction, a covenant running with the land, an agreement <br /> restricting the use of the property, or other mechanisms approved by HUD and must give the <br /> participating jurisdiction the right to require specific performance (except that the participating <br /> jurisdiction may provide that the affordability restrictions may terminate upon foreclosure or <br /> transfer in lieu of foreclosure); and <br /> (iii) Must be recorded in accordance with State recordation laws. <br /> (2) The participating jurisdiction may use purchase options, rights of first refusal or other preemptive <br /> rights to purchase the housing before foreclosure or deed in lieu of foreclosure in order to preserve <br /> affordability. <br /> (3) The affordability restrictions shall be revived according to the original terms if, during the original <br /> affordability period, the owner of record before the foreclosure, or deed in lieu of foreclosure, or any <br /> entity that includes the former owner or those with whom the former owner has or had family or <br /> business ties, obtains an ownership interest in the rp oject or property. <br /> (4) The termination of the restrictions on the rp oject does not terminate the participating jurisdiction's <br /> repayment obligation under& 92.503(b). <br /> Minimum period of <br /> Rental housing . <br /> Rehabilitation or acquisition of existing housing per unit amount of 5 <br /> HOME funds: Under$15,000 <br /> $15,000 to $40,000 10 <br />