On May 28, 2004, Dr. John C. Weicher, the
Federal Housing Commissioner issued a radon gas and mold
Notice (H 2004-08) requiring that a release agreement
(HUD-9548-E) be included in all sales contracts for
HUD-acquired single family properties. The agreement
notifies purchasers of the potential health problems caused
by exposure to radon and some molds. Required use of the
agreement expires on May 31st 2005. In fiscal
year 2004 HUD sold about 78,000 Real Estate Owned (REO)
single-family properties. View
the Commissioner’s Notice (H-2004-08) 
and download the release agreement (HUD-9548-E - a MS Word
file) at www.hudclips.org/sub_nonhud/cgi/pdfforms/9548-e.doc
In a January 22, 2004 letter, Dr. John C.
Weicher, the Federal Housing Commissioner at HUD informed
Federal Housing Administration (FHA) mortgagees that its
home inspection form (HUD 92564-CN) had been revised. The
new form now includes information on radon in indoor air
which reiterates the EPA and U.S. Surgeon General testing
recommendation and refers readers to EPA’s 1-800-SOS-Radon
hotline. The form is mandatory for all FHA insured
mortgages. Homebuyers must sign the form before/at the time
a sales contract is executed. In fiscal 2003 HUD
issued about 1.3 million FHA insured loans.
The Section 203(k) mortgage financing
program is the Housing and Urban Development's (HUD) primary
tool for rehabilitating and improving single family homes.
The program allows home buyers to finance the purchase and
repair or improvement of a home using a single mortgage
loan. Reducing radon levels in a home is an improvement that
can be financed through a 203(k) mortgage loan.
Part of the 203(k) mortgage proceeds must
be used to pay the costs of rehabilitating or improving a
residential property. To qualify, the total cost of the
eligible repairs or improvements, including fixes to reduce
radon levels, must be at least $5,000. The 203(k) program is
an important tool for expanding home ownership, revitalizing
homes, neighborhoods and communities, and for making homes
healthier and safer for those who occupy them.
Homes eligible for 203(k) financing
include:
- one to four-family dwellings that have
been completed for at least one year;
- dwellings that have been demolished,
provided some of the existing foundation system remains;
and,
- converting a one-family dwelling into a
two, three, or four-family dwelling; or, alternatively,
converting an existing multi-unit dwelling into a one to
four-family unit.
The 203(k) program has been used
successfully by many lenders to rehabilitate properties
through partnerships with state and local housing agencies,
and with non-profit organizations. To further help borrowers
buy homes, lenders have found innovative ways to combine the
203(k) program with other financial resources like HUD's
HOPE and Community Development Block Grant Programs.
Contact an FHA-approved lender in your
area for more information about HUD’s 203(k) program, or
if you’re interested in getting a 203(k) insured mortgage
loan. Check your phone directory’s blue pages for the HUD
office nearest you; they can get you a list of the 203(k)
approved lenders in your area.
For the American
Society of Home Inspector's (ASHI) Radon Mitigation System
Inspection Checklist
visit
http://www.epa.gov/iaq/radon/realestate.html
Be aware of the radon levels in your area!
Radon is much more deadly if you are a smoker. 