Christopher Shearer

Christopher Shearer

Some children with ADHD continue to have it as adults. And many adults who have the disorder don't know it. They may feel that it is impossible to get organized, stick to a job, or remember and keep appointments. Daily tasks such as getting up in the morning, preparing to leave the house for work, arriving at work on time, and being productive on the job can be especially challenging for adults with ADHD.

These adults may have a history of failure at school, problems at work, or difficult or failed relationships. Many have had multiple traffic accidents. Like teens, adults with ADHD may seem restless and may try to do several things at once, most of them unsuccessfully. They also tend to prefer "quick fixes," rather than taking the steps needed to achieve greater rewards.

How is ADHD diagnosed in adults?

Like children, adults who suspect they have ADHD should be evaluated by a licensed mental health professional. But the professional may need to consider a wider range of symptoms when assessing adults for ADHD because their symptoms tend to be more varied and possibly not as clear cut as symptoms seen in children.

To be diagnosed with the condition, an adult must have ADHD symptoms that began in childhood and continued throughout adulthood.¹⁵ Health professionals use certain rating scales to determine if an adult meets the diagnostic criteria for ADHD. The mental health professional also will look at the person's history of childhood behavior and school experiences, and will interview spouses or partners, parents, close friends, and other associates. The person will also undergo a physical exam and various psychological tests.

For some adults, a diagnosis of ADHD can bring a sense of relief. Adults who have had the disorder since childhood, but who have not been diagnosed, may have developed negative feelings about themselves over the years. Receiving a diagnosis allows them to understand the reasons for their problems, and treatment will allow them to deal with their problems more effectively.

How is ADHD treated in adults?

Much like children with the disorder, adults with ADHD are treated with medication, psychotherapy, or a combination of treatments.

Medications. ADHD medications, including extended-release forms, often are prescribed for adults with ADHD, but not all of these medications are approved for adults.¹⁶ However, those not approved for adults still may be prescribed by a doctor on an "off-label" basis.

Although not FDA-approved specifically for the treatment of ADHD, antidepressants are sometimes used to treat adults with ADHD. Older antidepressants, called tricyclics, sometimes are used because they, like stimulants, affect the brain chemicals norepinephrine and dopamine. A newer antidepressant, venlafaxine (Effexor), also may be prescribed for its effect on the brain chemical norepinephrine. And in recent clinical trials, the antidepressant bupropion (Wellbutrin), which affects the brain chemical dopamine, showed benefits for adults with ADHD.¹⁷

Adult prescriptions for stimulants and other medications require special considerations. For example, adults often require other medications for physical problems, such as diabetes or high blood pressure, or for anxiety and depression. Some of these medications may interact badly with stimulants. An adult with ADHD should discuss potential medication options with his or her doctor. These and other issues must be taken into account when a medication is prescribed.

Education and psychotherapy. A professional counselor or therapist can help an adult with ADHD learn how to organize his or her life with tools such as a large calendar or date book, lists, reminder notes, and by assigning a special place for keys, bills, and paperwork. Large tasks can be broken down into more manageable, smaller steps so that completing each part of the task provides a sense of accomplishment.

Psychotherapy, including cognitive behavioral therapy, also can help change one's poor self-image by examining the experiences that produced it. The therapist encourages the adult with ADHD to adjust to the life changes that come with treatment, such as thinking before acting, or resisting the urge to take unnecessary risks.

More info:

http://www.nimh.nih.gov/health/publications/attention-deficit-hyperactivity-disorder/can-adults-have-adhd.shtml

Christopher Shearer

Accommodation Ideas:

Time Management: Individuals with AD/HD may experience difficulty managing time, which can affect their ability to mark time as it passes incrementally by minutes and hours. It can also affect their ability to gauge the proper amount of time to set aside for certain tasks. It may be difficult to prepare for, or to remember, work activities that occur later in the week, month, or year.

• Divide large assignments into several small tasks
• Set a timer to make an alarm after assigning ample time to complete a task
• Provide a checklist of assignments
• Supply an electronic or handheld organizer, and train on how to use effectively
• Use wall calendar to emphasize due dates
  • Develop a color-coded system (each color represents a task, or event, or level of importance)
  • Allow co-worker or supervisor to add entries on the calendar, or to double-check entries added by the employee with AD/HD

Memory: Individuals with AD/HD may experience memory deficits, which can affect their ability to complete tasks, remember job duties, or recall daily actions or activities.

• Provide written instructions
• Allow additional training time for new tasks
• Offer training refreshers
• Use flow-chart to indicate steps in a task
• Provide verbal or pictorial cues
• Use post-it notes as reminders of important dates or tasks

Concentration: Individuals with AD/HD may experience decreased concentration, which can be attributed to auditory distractions (that can be heard) and/or visual distractions (that can be seen). People with AD/HD report distractions such as office traffic and employee chatter, opening and closing of elevator doors, and common office noises such as fax tones and photocopying.

• To reduce auditory distractions:
  • Purchase a noise canceling headset
  • Hang sound absorption panels
  • Provide a white noise machine
  • Relocate employee's office space away from audible distractions
  • Redesign employee's office space to minimize audible distractions
• To reduce visual distractions:
  • Install space enclosures (cubicle walls)
  • Reduce clutter in the employee's work environment
  • Redesign employee's office space to minimize visual distractions
  • Relocate employee's office space away from visual distractions

Organization and Prioritization: Individuals with AD/HD may have difficulty getting or staying organized, or have difficulty prioritizing tasks at work.

• Develop color-code system for files, projects, or activities
• Use weekly chart to identify daily work activities
• Use the services of a professional organizer
• Use a job coach to teach/reinforce organization skills
• Assign a mentor to help employee
• Allow supervisor to assign prioritization of tasks
• Assign new project only when previous project is complete, when possible
• Provide a "cheat sheet" of high-priority activities, projects, people, etc.

Social Skills: Individuals with AD/HD may have limitations in adaptive skills, such as communicating with others, or exhibiting appropriate social skills. This might manifest itself as interrupting others when working or talking, demonstrating poor listening skills, not making eye contact when communicating, or inability to correctly read body language or understand innuendo.

• Provide a job coach to help understand different social cues
• Identify areas of improvement for employee in a fair and consistent manner
• Make attendance at social activities optional
• Use training videos to demonstrate appropriate behavior in workplace
• Encourage employees to minimize personal conversation, or move personal conversation away from work areas
• Provide sensitivity training (disability awareness) to all employees
• Encourage all employees to model appropriate social skills
• Adjust the supervisory method to better fit the employee's needs
• Allow the employee to work from home
• Adjust method of communication to best suit the employee's needs
• Use role-play scenarios to demonstrate appropriate behavior in workplace

Hyperactivity/Impulsivity: Individuals with AD/HD Hyperactivity-Impulsive type may exhibit over-activity or impulsive behavior. This could be disruptive to the work environment or could inhibit efficient and effective work performance.

• Provide structured breaks to create an outlet for physical activity
• Utilize a job coach to teach/reinforce techniques to control impulsivity
• Allow the employee to work from home
• Review conduct policy with employee
• Adjust method of supervision to better prepare employee for feedback, disciplinary action, and other communication about job performance
• Use services of EAP
• Provide private workspace where employee will not disturb others by tapping, humming, or fidgeting

Multi-tasking: Individuals with AD/HD may experience difficulty performing many tasks at one time. This difficulty could occur regardless of the similarity of tasks or the frequency of performing the tasks.

• Separate tasks so that each can be completed one at a time
• Create a flow-chart of tasks that must be performed at the same time, carefully labeling or color-coding each task in sequential or preferential order
• Provide individualized/specialized training to help employee learn techniques for multi-tasking (e.g., typing on computer while talking on phone)
• Identify tasks that must be performed simultaneously and tasks that can be performed individually
• Provide specific feedback to help employee target areas of improvement
• Remove or reduce distractions from work area
• Supply ergonomic equipment to facilitate multi-tasking
• Clearly represent performance standards such as completion time or accuracy rates

Paperwork: Individuals with AD/HD may experience difficulty completing paperwork efficiently and effectively. This is due in part to workplace distractions and difficulty with time management, disorganization, or prioritization.

• When possible, automate paperwork by creating electronic files
• Use speech recognition software to enter text or data into electronic files
• Save time filling out paper forms by completing information in advance, using pre-filled forms, or adhering pre-printed stickers
• Use checklists in place of writing text
• Supply large quantities of regularly-used forms
• Color-code forms for easy identification
• Re-design commonly used forms
  • Use large font
  • Double space or triple space
  • Provide adequate space for hand-written response

Situations and Solutions:

A journalist with AD/HD experienced sensitivity to visual and auditory distractions. The employer provided the individual with a private, high-wall cubicle workspace in a low-traffic area. The employer added an environmental sound machine to mask office noise.

A social worker with AD/HD had difficulty completing handwritten paperwork in a neat and timely fashion. The employer created electronic forms for the employee, which allowed him to type responses. The employer arranged computer files labeled by month to help the employee prioritize open cases. The employer also sent email reminders of deadlines.

An office worker with AD/HD experienced impulsivity and often interrupted co-workers by entering offices without knocking. The employer helped identify appropriate techniques for approaching co-workers, such as keeping a daily list of tasks to discuss with others, then emailing or calling to set aside time to talk about work-related projects.

A retail employee with AD/HD often forgot the closing and cash-out procedures, which resulted in missed printouts of daily sale reports. The employer created a numbered checklist that identified each step for proper closing procedures and identified which reports to run from cash registers. This accommodation benefited all employees.

A delivery person with AD/HD had difficulty with time management. She spent excessive time making deliveries and would forget to return to the warehouse between daily runs. The employer provided a personal organizer watch that could be programmed to beep and display a written message many times throughout the day. This auditory and written prompt helped the employee move quicker from task to task, and helped remind her to return to the warehouse to gather her next load.

A teacher with AD/HD experienced disorganization in her classroom due to clutter from many years of teaching. The employer provided a job coach to help the teacher learn organization techniques, to help separate and store items, and to dispose of previous student work and projects from yesteryear.

More info: http://www.jan.wvu.edu/media/adhd.html

Products:

There are numerous products that can be used to accommodate people with limitations. JAN's Searchable Online Accommodation Resource (SOAR) at http://www.jan.wvu.edu/soar is designed to let users explore various accommodation options. Many product vendor lists are accessible through this system; however, upon request JAN provides these lists and many more that are not available on the Web site. Contact JAN directly if you have specific accommodation situations, are looking for products, need vendor information, or are seeking a referral.

Resources

References

American Psychiatric Association. (1994). Diagnostic and statistical manual of mental disorders (4th ed.). Washington, DC.

Equal Employment Opportunity Commission. (1992). A technical assistance manual on the employment provisions (title I) of the Americans with Disabilities Act. Retrieved October 28, 2005, from http://www.jan.wvu.edu/links/ADAtam1.html

Fram, David. (2004). Resolving ADA workplace questions: How courts and agencies are dealing with employment issues. National Employment Law Institute Publication, 17th edition.
National Institute of Mental Health (NIMH). (2003). Attention deficit hyperactivity disorder. Retrieved February 20, 2006, from http://www.nimh.nih.gov

National Institute on Neurological Disorders and Stroke (NINDS) (2006). NINDS attention deficit-hyperactivity disorder information page. Retrieved August 23, 2006 from http://www.ninds.nih.gov/disorders/adhd/adhd.htm

Christopher Shearer

Most parents want to teach their children responsibility - how to become self sufficient and succeed in life (after all, no one plans on raising a dead beat). However, very few actually accomplish this task. Why? Because, as parents, we are limited to the experiences our parents passed on to us; the antiquated notion that "responsibility" is simply getting a job, saving a little money, and maybe purchasing a car or some equally important item. Hopefully these seven rules will open your eyes and help you teach your children to avoid the traps that have stolen financial success from so many people.

Wealth Building Rule 1: Put Off Marriage

Your biggest obstacle to attaining wealth is YOU. Too often, people live their lives in a manner that is not conducive to creating riches and then get frustrated at "the system" when they only really have themselves to blame.

One of the most important financial decisions you will ever make is marriage (more specifically who you marry and when). By putting off the walk down the aisle for a few years, you can save a decade worth of frustration. Your first goal should be to become financially independent, with little or no debt, and have your investments in place. Once you have these three things, your odds of success are drastically improved by beginning your journey on a level playing field (after all, the number-one reason for divorce is financial trouble).

Wealth Building Rule 2: Debt is a Disease

With a few notable exceptions, debt is a form of bondage; a disease that enslaves the borrower. A few years ago, there was a young lady attending college who shot herself because she couldn't pay back $2,300 in credit card debt. Although an extreme example, it is a testament to the power money has over peoples' lives. Imagine your life without owing anyone anything; your car, your house, your education, all paid for in full. Like what you see? When you want it badly enough, you will make extinguishing your debt your number one priority.

Wealth Building Rule 3: If You Don't Like Where your Parents Were at Your Age - Do Things Differently

The old cliché that "insanity is doing the same thing over and over expecting different results," holds just as true today as it did when it was originally written. If you don't like where your parents were at your age, stop what you are doing. During your childhood, they taught you all they knew about money. For many people, these early years established how they feel about their finances today. In order to become financially successful, you must do something different than they did. Otherwise, you will end up exactly as they are.

Wealth Building Rule 4: When you Begin a Job, Look at the Pay of the Highest Employee

Whether you are looking for employment now or are thinking about it sometime in the near future, one of the most important things for you to do is to look at what the top-dog gets at any company for which you are considering working. This will give you an idea of how high you can expect to climb in terms of earnings and promotion. If the CEO is making $30,000 a year, you have no chance to make six figures. Select a job accordingly.

Wealth Building Rule 5: Do Something You Love and Get Paid for It

I remember going into college and being surrounded with people who wanted to be artists, scientists, and businessmen, but instead did what their parents or grandparents told them to do. There is no honor in being a doctor or a lawyer if you wake up every morning and hate your job. Pick a profession you love and you'll never have to work a day in your life.

Wealth Building Rule 6: Understand the Money Myth

Money is nothing more than a piece of paper with the image of a long-dead person on it. When you understand that any power it has over you is derived from your relationship with it, you suddenly become free from the constant pressures and stress of thinking about it. Especially at times such as these, if you are putting money away for ten, fifteen, or twenty years down the road, stop checking your portfolio every day! There is nothing you can gain from it except stress.

Wealth Building Rule 7: Your New Commodity is Not Your Labor, It's Your Ideas

With the advent of the Internet and other technological advances, you are no longer limited to supporting yourself or making a living by your physical labor. The only limit you have on yourself now is your own imagination - your ideas are the most valuable thing you possess. Every man, woman, and child is a salesman for a living; if you don't own a business or investments, then you sell your manual labor to a company in exchange for a paycheck. Change your product. The gap between the rich and poor does indeed grow larger with each passing year, but not because of inequalities or any other such injustices. Instead, it is because the rich understand money and how to use it. Capital is literally a seed; learn how to plant it to produce the best harvest. When you do this, you will rule your finances, not the other way around.

More info: http://beginnersinvest.about.com/cs/personalfinance1/a/031001a.htm

Christopher Shearer

Need help buying a home? You may qualify for one of these programs.

County Programs

	Adams County Housing Authority - Homeownership or Program HOTLINE (303) 227-2089
	Arapahoe County - HomeBuyer Program or (303) 738-8060
	Boulder County - Outside city limits of Boulder - Down Payment Assistance Program or (303) 651-8530
	Eagle County - Colorado Housing Assistance Corp or (303) 572-9445
	El Paso County - Single Family Mortgage Bond Program or (719) 520-6481
	Fremont, Chaffee, Custer and Lake counties - Upper Arkansas Area Council of Governments - Mutual Self-Help Housing or call (719) 269-7687 ext. 107
	Huerfano and Las Animas Counties - Down Payment Assistance Loan Program and Homebuyer Education, or call (719) 846-7882
	Jefferson County - Colorado Housing Assistance Corp or (303) 572-9445
	Larimer County - Larimer Home Ownership Program - Outside city limits of Ft. Collins - (970) 667-3232, ext. 39
	Weld County - High Plains Housing Development Corp. (970) 346-7660, ext. 6540
	Bent, Crowley and Otero counties - Tri-County Housing - Downpayment and closing cost assistance, 2nd mortgages for repairs to a home being purchased, and Home Ownership Counseling (719) 263-5168
	Cheyenne, Elbert, Kit Carson and Lincoln counties - Prairie Development Corp. Down payment assistance program or (719) 348-5562 or (800) 825-0208
	Logan, Morgan, Phillips, Sedgewick, Yuma and Washington counties - Northeast Colorado Housing, Inc. in Fort Morgan - Down payment assistance program call (970) 542-0955
	All counties - Colorado Housing Assistance Corp or (303) 572-9445

City Programs

	Arvada - House to Home Ownership Down Payment Assistance Loan Program (970)-494-2021
	Aurora - Homeownership Assistance Program or (303) 739-7900
	Boulder - Homeownership Programs (303) 441-3157
	Colorado Springs - Homeownership Programs - Affordable homeownership opportunities (719) 385-5985
	Commerce City - Commerce City Housing Authority or call (303) 289-3698
	Delta - West Central Housing Development - Down payment assistance (970) 874-8204, ext. 24
	Denver - Del Norte's Homeownership Program or (303) 477-4774, ext. 18
	Denver - Colorado Housing Assistance Corp at (303) 572-9445
	Denver - New West Side Economic Development (NEWSED) or (303) 534-8342 ext. 124
	Denver - Southwest Improvement Council (SWIC) (303) 934-0923
	Carbondale - Mountain Regional Housing Corporation - Down payment assistance program (970) 384-6447
	Fort Collins - Home Buyer Assistance Program or (970) 221-6758
	Glenwood Springs - Valley Housing Partners or (970) 384-6447
	Greeley - High Plains Housing Development Corp. (970) 346-7660, ext. 6540
	Longmont - Down Payment Assistance Program or (303) 651-8530
	Loveland - Larimer Home Ownership Program or (970) 667-3232, ext. 39
	Pueblo - Housing Department (719) 553-2850
	Pueblo - Colorado Bluesky Enterprises - Down payment assistance for individuals with developmental disabilities (719) 546-0572
	Pueblo - Neighbor Works of Pueblo - Affordable Housing Program (719) 544-8078
	Westminster - Home ownership Assistance (303) 227-2075
	Wheat Ridge - WRHA Home Ownership Program (303) 235-2846

Statewide

	Colorado Housing Enterprise (303) 428-1448
	Colorado Housing and Finance Authority (CHFA) - or (303) 297-7376 or (800) 877-2432, ext. 376
	Colorado Housing Assistance Corporation (303) 572-9445
	Home Buyer Workshop Class Schedule
	Colorado Division of Supportive Housing and Homeless Programs - Section 8 Homeownership Program or (303) 866-7350

More info: http://www.hud.gov

Christopher Shearer Cares about you.

My goal is to assit you with selecting a mortgage loan that will assist you in accomplishing your short and long term financial and investment goals while accomplishing your purchase or refinance. Once we close your loan, I feel we have a responsibility to help you manage that debt. I endevour to make have a life long relationship with you. Call me today so we can discuss your short and long-term finanical and investment goals.

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As well as the Colorado communities of Aspen * Vail * Glenwood Springs * Boulder * Grand Junction * Steamboat Springs

Alabama (licensing exempt) * Alaska (licensing exempt) * Arizona (license 905747) * California (license 01317220) * Colorado (license LMB 100008577) * Florida (license CL0701012) * Hawaii (license pending) * Idaho (license MBL-2522) * Illinois (license MB 6759265) * Indiana (licensing exempt) * Iowa (license 2008-0031) * Kentucky (license MB20033) * Louisiana (license 2078) * Maryland (license 11213) * Massachusetts (license MB5206) * Michigan (license 0010583/0010767) * Minnesota (license 20421059) * Missouri (licensing exempt) * Nebraska (license 1970) * Nevada (license 526) * New Mexico (license 1901) * Oregon (license ML-2241) * Tennessee (license 2574) * Texas (license 75692) * Utah (license 558353) * Washington (license 510-MB-18948) * Wisconsin (license 39432)

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Christopher Shearer

FHA 203K How is it different?

 Most mortgage financing plans provide

      only permanent financing.  That is, the lender will not usually close

      the loan and release the mortgage proceeds unless the condition and

      value of the property provide adequate loan security.  When

      rehabilitation is involved, this means that a lender typically

      requires the improvements to be finished before a long-term mortgage

      is made.

      When a homebuyer wants to purchase a house in need of repair or

      modernization, the homebuyer usually has to obtain financing first to

      purchase the dwelling; additional financing to do the rehabilitation

      construction; and a permanent mortgage when the work is completed to

      pay off the interim loans with a permanent mortgage.  Often the

      interim financing (the acquisition and construction loans) involves

      relatively high interest rates and relatively short amortization

      periods.  The Section 203(k) program was designed to address this

      situation.  The borrower can get just one mortgage loan, at a

      long-term fixed (or adjustable) rate, to finance both the acquisition

      and the rehabilitation of the property.  To provide funds for the

      rehabilitation, the mortgage amount is based on the projected value

      of the property with the work completed, taking into account the cost

      of the work.

      To minimize the risk to the mortgage lender, the mortgage loan (the

      maximum allowable amount) is eligible for endorsement by HUD as soon

      as the mortgage proceeds are disbursed and a rehabilitation escrow

      account is established.  At this point the lender has a fully insured

      mortgage loan.

   To be eligible, the property must be a one- to

      four-family dwelling that has been completed for at least one year.

      The number of units on the site must be acceptable according to the

      provisions of local zoning requirements.  All newly constructed units

      must be attached to the existing dwelling.  Condominium and

      Cooperative units are not eligible.

      Homes that have never been completed cannot be accepted into the

      203(k) program; construction of the property must have been completed

      for at least one year.  Evidence of completion would be a Certificate

      of Occupancy or other similar documentation from the local

      jurisdiction.

      Homes that have been demolished, or will be razed as part of the

      rehabilitation work, are eligible provided the existing foundation

      system is not affected and will still be used.  The complete

      foundation system must remain in place.  A report from a licensed

      structural engineer is required stating that the existing foundation

      is structurally sound and capable of supporting the proposed

      construction of the dwelling.  Where the home has been completely

      razed (or where only the footings remain), including the demolition

      of the foundation, the property is not eligible for a 203(k) insured

      loan, but could be acceptable as new construction under Section

      203(b).

      In addition to typical home rehabilitation projects, this program can

      be used to convert a one family dwelling to a two, three, or

      four-family dwelling.  An existing multi-unit dwelling could be

      decreased to a one- to four-family unit.

      An existing house on another site can be moved onto the mortgaged

      property; however, release of loan proceeds for the existing

      structure on the non-mortgaged property is not allowed until the new

      foundation has been properly inspected and the dwelling has been

      properly placed and secured to the new foundation.

      A manufactured (mobile) home that was built after June 15, 1976, and

      has been on a permanent foundation for over one year, can be rehabbed

      with this

       program.  The unit must have been delivered to the site when it was

      new, prior to being occupied.  The rehabilitation cannot affect the

      structural components of the home that were designed and constructed

      in conformance with the Federal Manufacturers Construction and Safety

      Standards.  Refer to HUD Handbook 4145.1 REV-2 for additional

      information, especially for the licensed engineer's certification.

 This program can be used to

      accomplish rehabilitation and/or improvement of an existing

      one-to-four unit dwelling in one of four ways:

      A.  To purchase a dwelling and the land on which the dwelling is

          located and rehabilitate it.

      B.  To purchase a dwelling on another site, move it onto a new

          foundation on the mortgaged property and rehabilitate it.

      C.  To refinance existing indebtedness and rehabilitate such a

          dwelling.

      D.  To rehabilitate such a dwelling.

  Mortgages that do not involve the insurance of

      advances, the refinancing of outstanding indebtedness or the purchase

      of the property need not be a first lien on the property, but will

      not be junior to any lien other than a first mortgage.

      For A and C in paragraph 1-5., the mortgage must be a first lien on

      the property and the loan proceeds (other than rehabilitation funds)

      may be available before the rehabilitation begins.

      For B in paragraph 1-5., the mortgage must be a first lien on the

      property; however, loan proceeds cannot be made available until the

      unit is attached to the new foundation (see paragraph 1-4.).

      For D in paragraph 1-5., the mortgage may be a second lien on the

      property; however, no insured advances will be allowed and the

      mortgage cannot be endorsed until all work is satisfactorily

      completed (see paragraph 5-1.A.).  The minimum mortgage amount must

      exceed the limits of a loan under Title I of the National Housing

      Act.

  Mortgage proceeds must be used in part for

      rehabilitation and/or improvements to a property.  There is a minimum

      $5000.00 requirement for the eligible improvements on the existing

      structure on the property.  Minor or cosmetic repairs by themselves

      are impracticable and unacceptable; however, they may be added to the

      minimum requirement (in addition to $5,000).  The mortgage must

      include one or more of the items listed below, with a cumulative

      minimum of $5,000.

      A.  Structural alterations and reconstruction (e.g., additions to the

          structure, finished attics, repair of termite damage and the

          treatment against termite infestation, etc.)

      B.  Changes for improved functions and modernization (e.g., remodeled

          kitchens and bathrooms).

      C.  Elimination of health and safety hazards (including the

          resolution of defective paint surfaces and/or lead-based paint

          problems on homes built prior to 1978).

D. Changes for aesthetic appeal and elimination of obsolescence

          (e.g., new exterior siding).

      F.  Reconditioning or replacement of plumbing (including connecting

          to public water and/or sewer system), heating, air conditioning

          and electrical systems.

      F.  Roofing, gutters and downspouts.

      G.  Flooring, tiling and carpeting.

      H.  Energy conservation improvements (e.g., new double pane windows,

          insulation, solar domestic hot water systems, etc.).

      I.  Major landscape work and site improvement, patios and terraces

          that improve the value of the property equal to the dollar amount

          spent on the improvements or required to preserve the property

          from erosion.

      J.  Improvements for accessibility to the Handicapped.

      When basic improvements are involved, the following costs can be

      included in addition to the minimum $5,000 requirement for the

      existing structure:

      -   Construction or rehabilitation of a detached garage or an

          attached unit(s) to the existing dwelling (if allowed by the

          local zoning ordinances).

      -   New cooking ranges, refrigerators and other appurtenances

          (Used appliances are not eligible).

      -   Interior or exterior painting.

      Luxury items and improvements that do not become a permanent part of

      the real property are not eligible as a cost rehabilitation.  The

      items listed below (not limited to this list) are not acceptable

      under the 203(k) program, including the repair of any of the

      following:

          Barbecue pits; bathhouses; dumbwaiters; exterior hot tubs,

          saunas, spas and whirlpool baths; outdoor fireplaces or hearths;

          photo murals; swimming pools; television antennas and satellite

          dishes; tennis courts; tree surgery.  Additions or alterations to

          provide for commercial use are not eligible.

1-8.  REQUIRED IMPROVEMENTS.  <TOP>  All rehabilitation construction and/or

      additions financed with Section 203(k) mortgage proceeds must comply

      with the following:

      A.  Cost Effective Energy Conservation Standards.

          1)  Addition to Existing Structure.  New construction must

              conform with local codes and HUD Minimum Property Standards

              in 24 CFR  200.926d (HUD Handbook 4910.1, Appendix K) is

              required.

          2)  Rehabilitation of Existing Structure.  To improve the thermal

              efficiency of the dwelling, the following are required:

              a)  Weatherstrip all doors and windows to reduce infiltration

                  of air when existing weatherstripping is inadequate or

                  nonexistent.

              b)  Caulk or seal all openings, cracks or joints in the

                  building envelope to reduce air infiltration.

              c)  Insulate all openings in exterior walls where the cavity

                  has been exposed as a result of the rehabilitation.

                  Insulate ceiling areas where necessary.

              d)  Adequately ventilate attic and crawl space areas.

              For additional requirements, refer to 24 CFR Part 39,

              Appendix A-1 through A-6 for standards that apply to

              improvements proposed as part of the rehabilitation.

          3)  Replacement Systems.

              a)  Heating, ventilating, and air conditioning system supply

                  and return pipes and ducts must be insulated whenever

                  they run through unconditioned spaces.

              b)  Heating systems, burners, and air conditioning systems

                  must be carefully sized to be no greater than 15 percent

                  oversized, except to satisfy the manufacturers' next

                  closest nominal size.

                  If a new heating/cooling system is proposed, provide heat

                  loss/heat gain calculations for the entire house to

                  ensure proper sizing of heating system.  Use the design

                  criteria developed by the American Society of Heating,

                  Refrigerating and Air Conditioning Engineers (ASHRAE) or

                  Manual J developed by the National Environmental Systems

                  Contractors Association.

      B.  Smoke detectors.  Each sleeping area must be provided with a

          minimum of one (1) approved, listed and labeled smoke detector

          installed adjacent to the sleeping area.  The detector must sense

          visible or invisible particles of combustion.  When activated,

          the detector must provide an alarm suitable to warn occupants

          within the sleeping area.

          Smoke detectors may be battery powered when installed in existing

          or rehabilitated dwellings.  However, where new construction is

          being added to an existing building, the smoke detector must

          receive its primary power from the building wiring, in

          conformance to local codes and ordinances.

1-9.  DEFINITIONS FOR USE IN THE 203(k) PROGRAM.  <TOP>

      A.  Insurance of advances.  This refers to insurance of the mortgage

          prior to the rehabilitation period.

          A mortgage that is a first lien on the property is eligible to be

          endorsed for insurance following mortgage loan closing,

          disbursement of the mortgage proceeds, and establishment of the

          Rehabilitation Escrow Account.

          The mortgage amount may include funds for the purchase of the

          property or the refinance of existing indebtedness, the costs

          incidental to closing the transaction, and the completion of the

          proposed rehabilitation.  The mortgage proceeds allocated for the

          rehabilitation will be escrowed at closing in a Rehabilitation

          Escrow Account.

      B.  Rehabilitation Escrow Account.  When the loan is closed and

          Insurance of Advances is used, the proceeds designated for the

          rehabilitation or improvement, including the contingency reserve,

          mortgage payment reserve and monies retained under the Escrow

          Commitment Procedure, are to be placed in an interest bearing

          escrow account insured by the Federal Deposit Insurance

          Corporation (FDIC) or the National Credit Union Administration

          (NCUA).  This account is not an escrow for the

          paying of real estate taxes, insurance premiums, delinquent

          notes, ground rents or assessments, and is not to be treated as

          such.

          1)  The lender (or its agent) will release escrowed funds upon

              completion of the proposed rehabilitation in accordance with

              the Work Write-up (see example of a Rehabilitation Checklist

              in Appendix 1) and the Draw Request (Form HUD 9746-A in

              Appendix 9).  Release of funds for completed work cannot

              occur until one day following loan closing (see paragraph

              4-9).

          2)  The net income earned by the Rehabilitation Escrow Account

              must be paid to the mortgagor.  The method of such payment is

              subject to agreement between mortgagor and mortgagee.

              However, payment of the interest income on the Rehabilitation

              Escrow Account can accumulate and be paid in one lump sum

              after completion of rehabilitation and issuance of the Final

              Release Notice.  When the Escrow Commitment Procedure is

              used, interest on the investor's escrow account can be paid

              when the loan is assumed.  Provide an Applicant's

              Acknowledgement shown in Appendix 4.

          3)  During rehabilitation the lender may not release funds from

              the Rehabilitation Escrow Account until the lender has

              received a Compliance Inspection Report (Form HUD 92051) and

              the Draw Request (Form HUD 9746-A), certifying that the work

              has been completed in compliance with the accepted

              architectural exhibits.

              The final release of the escrowed rehabilitation funds is to

              take place only after the local jurisdiction has provided its

              final acceptance of the work and the HUD or the Direct

              Endorsement (DE) Underwriter has reviewed the final

              Compliance Inspection Report and the Draw Request form.

              The Final Release Notice (Appendix 7, as applicable) can be

              issued, authorizing the final payment, which may include the

              interest earned on the escrow account and the total of all

              holdbacks (see paragraph 1-9.B. and E.).  This Notice also

              directs the prepayment of the mortgage by the amount

              remaining in the contingency reserve and any unused

              inspection fees or mortgage payments, when applicable.

      C.  Rehabilitation Loan Agreement.  When the mortgage involves the

          insurance of advances, a Rehabilitation Loan Agreement must be

          executed by the lender and the borrower (see Appendix 2).  The

          Rehabilitation Loan Agreement establishes the conditions under

          which the lender (or its agent) will release funds from the

          Rehabilitation Escrow Account to aid the borrower in the

          rehabilitation or improvement of the property.  When the lender

          uses the services of an agent, the lender remains responsible for

          the actions of that agent.  See paragraph 5-2.C. for information

          on how to release funds.

      D.  Inspections.  All inspections are performed by HUD-approved fee

          inspectors assigned by the HUD Field Office (but paid by the

          lender) or on the HUD-accepted staff of the DE lender (see

          paragraph 5-2.C.).  The fee inspector is to use the architectural

          exhibits in order to make a determination of compliance or

          non-compliance.  The HUD accepted Plan Reviewer can be allowed to

          do the fee inspections on the property, because he/she is already

          familiar with the proposed improvements and can inspect the

          rehabilitation knowing what was accepted in the work write-up

          (see paragraph 3-2.F.).

          When the inspection is scheduled due to a request for payment,

          the inspector is to indicate on the Compliance Inspection Report

          (Form HUD 92051) whether or not the work has been completed.

          Also, the inspector must use the Draw Request form (Form HUD

          9746-A, Appendix 9). The first draw must not be scheduled until

          the lender has determined that the applicable building permits

          have been issued.

          The inspection fees are paid by the mortgagor, but, the lender is

          responsible to ensure that payment is made to the inspector (see

          paragraph 1-13.D.).  If the inspection fee is part of the escrow,

          then it can be released along with the release of the escrow

          funds as a result of an acceptable Draw Request.

      E.  Holdback.  A ten (10) percent holdback is required on each

          release from the Rehabilitation Escrow Account.  The total of all

          holdbacks may be released only after a final inspection of the

          rehabilitation and issuance of the Final Release Notice.  The

          lender (or its agent) may retain the holdback for a maximum of 35

          calendar days unless State law allows for a longer time period to

          ensure that no liens are placed on the property.  At lenders

          option, the holdback is not required when a subcontractor is 100%

          complete with a work item, the work completed is acceptable to

          the inspector and the subcontractor provides the necessary lien

          waivers. Also refer to paragraph 5-2.E.

      F.  Contingency Reserve.  At the discretion of the Field Office or

          the DE Underwriter, the cost estimate may include a contingency

          reserve if the existing construction is less than 30 years old or

          the nature of the work is complex or extensive.  A contingency

          reserve is required when there is evidence of termite

          damage or previous termite infestation.

          For properties older than 30 years the cost estimate must include

          a contingency reserve of a minimum of ten (10) percent of the

          cost of rehabilitation; however, the contingency reserve may not

          exceed twenty (20) percent where major remodeling is

          contemplated.  If the utilities were not turned on for

          inspection, a minimum fifteen (15) percent is required.  If the

          scope of work is well defined and uncomplicated, and the

          rehabilitation cost is less than $7,500, the lender may waive the

          requirement for a contingency reserve.  A notice about the

          Contingency Reserve must be provided to the borrower prior to, or

          at, the closing of the loan (see Appendix 4).

          The reserve cannot be used to make additional improvements to the

          dwelling that are considered luxury items; however, it may be

          used to pay for added construction costs caused by deficiencies

          (health, safety and necessity) discovered during rehabilitation.

          Use a Request for Change, Form HUD 92577, when the scope of

          rehabilitation will be affected. When adjustments to the proposed

          rehabilitation (i.e., deleting a skylight from the work write-up)

          are made following loan closing, the amount by which the costs

          are reduced are added to the contingency reserve.  Any

          unused portion of the Contingency Reserve Fund remaining at the

          time of issuance of the Final Release Notice must be applied to

          reduce the mortgage balance.  Work items cannot be deleted from

          the rehabilitation if it will decrease the value of the home,

          since the loan has already closed.

          If the Borrower feels that the contingency reserve will not be

          used and they wish to avoid having the reserve applied to reduce

          the mortgage balance after issuance of the Final Release Notice,

          the borrower (or any other person, organization or agency on the

          borrower's behalf) may place their own funds into the contingency

          reserve account.  In this case, if monies are remaining in the

          account after the Final Release Notice is issued, the monies may

          be released back to the borrower (or other person, organization

          or agency who placed the money in the contingency reserve).

          If the mortgage is at the maximum mortgage limit for the area or

          for the particular type of transaction, but a contingency reserve

          is required, the contingency reserve must be placed into an

          escrow account from other funds of the borrower at closing.

          Under these circumstances, if the contingency reserve is not

          used, the remaining funds in the escrow account will be released

          to the borrower after the Final Release Notice has been issued.

      G.  Mortgage Payment Reserve.  Funds not to exceed the amount of six

          (6) mortgage payments (including PITI and the mortgage insurance

          premium) can be included in the cost of rehabilitation and

          deposited in the rehabilitation escrow account to assist a

          mortgagor (whether a principal residence or an investment

          property) when the property is not occupied during

          rehabilitation.

          On multi-unit properties, if one or more units is occupied, the

          mortgage payment must be reduced accordingly.  If the owner

          occupies one of the units, or if the rents received are not

          sufficient to cover that portion of the mortgage, then the

          mortgage payment will be reduced by dividing the PITI by the

          number of units in the property (i.e., the monthly mortgage

          payment for a triplex is $1,248; if one unit is occupied, the

          mortgage payment is reduced to $832).

           The number of mortgage payments cannot exceed the completion

           time frame required in the Rehabilitation Loan Agreement.  The

           lender must make the monthly mortgage payments directly from the

           interest bearing reserve account.  Monies remaining in the

           reserve account after the Final Release Notice is issued, or

           occupancy of the property, must be used to reduce the mortgage

           principal.

1-10.  MAXIMUM MORTGAGE AMOUNT.  <TOP>  The mortgage amount, when added to any

       other existing indebtedness against the property, cannot exceed the

       applicable loan-to-value ratio and maximum dollar amount limitations

       described in 24 CFR 203.50.  The downpayment requirements are the

       same as under the Section 203(b) program (refer to HUD Handbook

       4155.1, paragraph 2-4 for additional information.  Also refer to

       paragraph 6-1 for requirements for incentives to sell HUD-owned

       properties).  The Mortgage Payment Reserve is considered a part of

       the cost of rehabilitation for determining the maximum mortgage

       amount (see paragraph 1-9.G.).

       A.  Maximum Mortgage Calculation.  Based on the lesser of:

           1)  The estimate of As-is value or the purchase price of the

               property before rehabilitation, whichever is less, plus the

               estimated cost of rehabilitation and allowable closing

               costs; or

           2)  110 percent of the expected market value of the property

               upon completion of the work plus allowable closing costs.

           Principal Residence (Owner-occupant)

               The maximum mortgage amount is based on 97/95 percent of

               1) or 2) above.

           Investment Property (Non-Occupant Mortgagor or Builder/Rehabber)

               The maximum mortgage amount is based on 85 percent of

               1) or 2) above.

           Escrow Commitment Procedure (Builder/Rehabber)

               See Appendix 10 for an example for calculating the maximum

               mortgage amount using the escrow commitment procedure.  This

               procedure cannot be used for a loan amount less than the

               97/95% calculated for an owner-occupant (the loan can be

               assumed by an investor, however, the mortgage principal must

               be paid down to what the mortgage would be to an investor).

               A mortgagor (Builder/Rehabber/Investor, not an

               owner/occupant) that purchases or refinances an investment

               property but intends to sell the rehabilitated property to a

               mortgagor acceptable to HUD (who intends to occupy the

               property as a principal residence) can obtain a mortgage

               based on the loan-to-value ratio and maximum dollar amount

               limitations prescribed under Section 203(b) for a principal

               residence, provided:

               --  The dollar difference between the maximum mortgage

                   amount (97/95 of the fair market value for an

                   owner-occupant) and the mortgage amount available to an

                   investor (85% of acquisition cost) will remain in escrow

                   with the lender until the property is assumed by an

                   owner-occupant acceptable to the Commissioner;

                             and

               --  The escrowed funds will be administered under the Escrow

                   Commitment Procedure;

                   Use Form FHA-314, Escrow Commitment Certificate, for

                   this procedure.  The commitment may be issued for the

                   maximum mortgage amount for the longest term

                   permissible, 30 years.  Refer to paragraph 4-5 for

                   information concerning financial requirements for an

                   investor who uses this procedure.

                   To allow for maximum owner-occupant financing when the

                   loan is assumed (by an owner-occupant acceptable to HUD)

                   and to avoid the extra cost for a new mortgage, the

                   mortgage may be based on the market value of the

                   property after rehabilitation.  The difference between

                   the maximum mortgage requirements for an owner-occupant

                   and an investor would be retained in an escrow account.

                   The investor/builder must sign a Statement of

                   Understanding similar to that shown in Appendix 8 and

                   must provide the lender an acceptable plan on how the

                   property will be marketed for assumption by an

                   acceptable owner-occupant purchaser.

                   The investor/builder may elect to use the escrow funds

                   to reduce the principal balance at any time prior to the

                   18th month.  If the property is not sold prior the 18th

                   amortization payment of the mortgage, the entire escrow

                   amount must be applied to reduce the principal balance

                   and reduce the mortgage amount to an amount available as

                   an investment property.

                   The owner-occupant who assumes the loan must provide a

                   downpayment based on 97/95% (unless they qualify under

                   the first time homebuyer provision below).  If the

                   resale price is less than the appraised value of the

                   property, the mortgage amount must be reduced

                   accordingly based on the acquisition price.  If the

                   resale price is greater than the appraised value, the

                   purchaser must make a larger downpayment.  Refer to the

                   example in Appendix 10.  For mortgage calculations for

                   refinance transactions, see paragraph 4-7.

                   If the purchaser is a "first time homebuyer," the

                   assumption can be done with no downpayment requirement.

                   A "first time homebuyer" is defined as a person(s) who

                   has not had an ownership interest in a principal

                   residence within the three years preceding the date of

                   the execution of the mortgage loan documents.  Each

                   borrower must certify to the above ownership interest.

                   To verify this requirement, the lender must obtain

                   certified copies of signed federal income tax returns

                   filed by the eligible borrower for the three tax years

                   immediately preceding execution of the mortgage loan

                   documents.  If the borrower was not required by law to

                   file a federal income tax return for any of these three

                   years and did not so file and certifies to such, then

                   the requirement is waived.

       B.  Cost of Rehabilitation.  Expenses eligible to be included in the

           cost of rehabilitation are materials, labor, contingency

           reserve, overhead and construction profit (put in each work

           item), up to six (6) months of mortgage payments, plus expenses

           related to the rehabilitation such as permits, fees, inspection

           fees by a qualified home inspector (i.e., a member of the

           American Society of Home Inspectors), licenses, inspection fees

           during construction by a HUD accepted inspector, lien protection

           fees for title updates and architectural/ engineering fees.

           The cost of rehabilitation may also include the supplemental

           origination fee which the mortgagor is permitted to pay when the

           mortgage involves insurance of advances, and the discounts which

           the mortgagor will pay on that portion of the mortgage proceeds

           allocated to the rehabilitation.