The Owner-Builder must:

1. (1) Own or be purchasing a piece of real property through a warranty deed or Contract for Deed;
2. (2) Not have an annual household income that exceeds 60% of the greater of the state or local area median family income as determined by HUD's current income table. Eligibility Income is the total Household income including all income (salary, tips, bonus, overtime, alimony, child support, benefits, etc.) received by the Owner-Builder Applicant, co-Applicant and/or any other persons living in the home. This income is used to determine whether the household income exceeds 60% of the Area Median Family Income or 60% of the State Median Family Income, adjusted for Household size, whichever is greater. No income is excluded in this calculation.

3. (3) Execute a Self-Help Agreement committing to specify and satisfy one of the criteria provided for in subparagraphs (A) - (D) of this paragraph:

   1. (A) Provide at least 65% of the labor necessary to build or rehabilitate the proposed housing through a state-certified Participant;
   2. (B) Provide an amount of labor equivalent to 65% in connection with building or rehabilitating housing for others through a state-certified Participant;
   3. (C) Provide through the noncontract labor of friends, family, or volunteers and through personal labor at least 65% of the labor necessary to build or rehabilitate the proposed housing through a state-certified Participant; or
   4. (D) If due to a documented disability or other limiting circumstances the Owner-Builder cannot provide the amount of personal labor otherwise required, provide through the noncontract labor of friends, family or volunteers at least 65% of the labor necessary to build or rehabilitate the proposed housing through a state-certified Participant;
4. (4) Successfully complete an Owner-Builder homeownership education class prior to loan funding;
5. (5) Not have any outstanding judgments and/or liens on the property; and
6. (6) The Owner-Builder must occupy the residence as a Principal Residence within 30 days of the end of the construction period or the closing of the loan, whichever is later. If the Owner-Builder fails to do so, the Department may declare the loan in default and accelerate the note. Any additional habitable structures must be removed from the property prior to closing; however, a portion of the structure may be utilized as storage upon the Department's written approval prior to closing.

Source Note:The provisions of this §24.10 adopted to be effective October 31, 2019, 44 TexReg 6356.