TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION

Chapter 100.4. TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION SUBCHAPTER 100-100.4 CDBG-DR HOMEOWNER REHABILITATION AND RECONSTRUCTION POLICIES AND PROCEDURES Part 001 General Provisions § 100-100.4-355 Administration, § 100-100.4-001 Introduction Approval, Appeals Process § 100-100.4-002 Public Announcement § 100-100.4-360 Homeowner Counseling Session Part 100 Purpose and Requirements § 100-100.4-365 Commitment Letter § 100-100.4-101 Purpose of the § 100-100.4-370 Preliminary Title Program Report (PTR) § 100-100.4-102 Ineligible Activities § 100-100.4-374 [Reserved] § 100-100.4-103 General Requirements § 100-100.4-375 [Reserved] § 100-100.4-380 [Reserved] Part 200 Loan Specifications § 100-100.4-201 Grant Amount Part 400 Rehabilitation § 100-100.4-202 Determination of Unit § 100-100.4-401 Performing Size and Occupancy Standards Rehabilitation Work § 100-100.4-205 Target Group § 100-100.4-210 Income Eligibility Part 500 Fraud, Waste and Abuse § 100-100.4-215 Property Eligibility § 100-100.4-501 Eligibility § 100-100.4-235 Use of Loan Funds Certification § 100-100.4-240 Eligible Costs § 100-100.4-505 Default § 100-100.4-510 Remedies Upon Part 300 Grant Application Process Default § 100-100.4-301 Confidentiality § 100-100.4-305 Discrimination Part 600 Affordability Prohibited § 100-100.4-601 Affordability § 100-100.4-310 Pre-Qualification Restrictions Interview § 100-100.4-315 Eligibility Part 700 Conveyance Notification § 100-100.4-701 Sale, Conveyance, or § 100-100.4-320 Ineligible Applicants Transfer or Property § 100-100.4-325 Initial Inspection of Residence Part 800 Assumption § 100-100.4-330 Lead-Based Paint § 100-100.4-801 Grant Assumption § 100-100.4-335 Environmental Review Procedures for Entities Assuming Part 1000 Ethics HUD Environmental Responsibilities (24 § 100-100.4-1001 Conflict of Interest C.F.R. Part 58) § 100-100.4-340 Rehabilitation or Part 1100 Miscellaneous Reconstruction Grant Application § 100-100.4-1101 Acronyms Reference § 100-100.4-345 Application Intake Section and Processing § 100-100.4-1105 Homeowner § 100-100.4-350 Verification of Rehabilitation Income © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 1 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION Subchapter Authority: 2 CMC § 4433(i); Executive Order 94-3 § 407. Subchapter History: Amdts Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Amdts Proposed 47 Com. Reg. 52545 (July 15, 2025); Amdts Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Amdts Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Amdts Adopted 46 Com. Reg. 51076 (May 15, 2024); Amdts Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Amdts Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Amdts Proposed 46 Com. Reg. 050091 (July 28, 2023); Amdts Adopted 43 Com. Reg. 45935 (May 28, 2021); Amdts Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). Part 001 - General Provisions § 100-100.4-001 Introduction As a result of the 2018 storms, namely Typhoon Mangkhut and Super Typhoon Yutu, the Commonwealth of the Northern Mariana Islands (CNMI) received an allocation of Community Development Block Grant Disaster Recovery (CDBG-DR) funds which will be administered by the Northern Marianas Housing Corporation (NMHC). NMHC has developed the Homeowner Rehabilitation and Reconstruction Program to cover the eligible costs to rehabilitate or reconstruct storm-related damaged properties in order to restore them back to decent, safe, and sanitary conditions. The governor of the CNMI has placed housing as the highest recovery priority. The total allocation amount at this time under this Program is $39,407,033. Due to the limited availability of CDBG-DR funds allocated to the CNMI from the U.S. Department of Housing and Urban Development (HUD), financial assistance will be prioritized for the elderly or disabled extremely low-income families and then to low- to very low-income homeowners subject to HUD income limits which are published annually (https://www.huduser.gov/portal/datasets/il.html). NMHC has recognized these target groups to assist under the CDBG-DR program. Funds will be made available for eligible homeowner rehabilitation and reconstruction activities through grants to assist in rehabilitation and reconstruction of their principal place of residence. The Program is designed to create a habitable living environment for homeowners with the most serious and significant damaged homes, and to serve as many impacted households as possible. As such, the Program requires the use of standard building materials, which may not restore some damaged homes to pre-storm conditions if luxury materials were damaged in the storm. To ensure the funding will assist the maximum number of households, rehabilitation and/or reconstruction work and materials will be limited to those items necessary to make the home livable and compliant with referenced building codes and HUD requirements. Homeowner rehabilitation activities include those items identified at the initial inspection which are necessary in bringing the home in compliance with the 2018 International Building Code enacted by law and any updates approved by regulation by the CNMI Department of Public Works Building Safety Office and zoning laws (if applicable for Tinian and Rota), International Energy Conservation Code as adopted by the CNMI government, NMHC written design standards for single family housing new/rehabilitation, and accessibility requirements (where applicable) © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 2 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION including the reduction of lead-based paint hazards and the remediation of other home health hazards. The NMHC, on behalf of the CNMI, has been designated as the responsible entity in implementing and carrying out the objectives of the program. The Housing Division under the CDBG-DR Program Division, will be responsible for the day-to-day operations of the Homeowner Rehabilitation and Reconstruction Program. Services include program outreach to potential eligible homeowners, application intake, program eligibility verification (both for the household and property), Duplication of Benefits review, Verification of Benefits analysis, award calculation, and documentation execution, scope development and construction oversight. Support services will be provided by NMHC’s Mortgage and Credit Division and Fiscal Division with respect to maintenance and financial records. Overall, the NMHC Corporate Director will assume ultimate responsibility for the efficient and proper administration of this program in accordance with statutory and regulatory requirements. Through these policies and procedures and by imposing NMHC and HUD-prescribed residential rehabilitation standards, NMHC will preserve and improve the quality of the general housing stock of the CNMI that incurred damage during Typhoon Mangkhut and Super Typhoon Yutu. Modified: 1 CMC § 3806(g). History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Amdts Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). § 100-100.4-002 Public Announcement (a) Publicity. (1) Upon notification from HUD of the approval of the grant agreement, NMHC shall publish such approval within thirty (30) calendar days from the date of the approval. General information of the Homeowner Rehabilitation and Reconstruction Program shall be published in the print media of the widest local circulation, on the NMHC website, and other suitable means available. The program information shall also be posted in public and private bulletin boards where announcements are commonly posted. Loan applications may be submitted on or after a specified date to be stated in the public notice. (2) With the conversion of the Homeowner Rehabilitation and Reconstruction Program from a loan to a grant program, NMHC will review the applications of all those determined to be ineligible due to high debt-to-income ratios when the program was structured as a loan program. It is believed that many of those who did not satisfy underwriting requirements will now be eligible for assistance (3) Once the revised group of applicants has been identified, if additional funds remain, NMHC will conduct additional outreach. That outreach will focus on low- and moderate-income areas where there were storm impacts, and low rates of application to ensure that those most in need of assistance are aware of the new program guidelines and requirements. © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 3 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION (b) Contents. Program announcements shall inform interested applicants on how and where they may obtain an application and additional information on the types of homeowner program activities being administered in the CNMI. Such announcements shall further contain the following information: (1) Brief overview of the Homeowner Rehabilitation and Reconstruction Program; (2) General list of eligible activities available; (3) Amount of funding available; (4) General eligibility requirements to qualify for financial assistance; (5) Homeowner selection process; (6) Fair Housing logo and Equal Opportunity language; and (7) Opening date for acceptance of applications. (c) Affirmative Marketing. To ensure that all persons are effectively and adequately informed about the rehabilitation and reconstruction program and the availability of funds, especially to those least likely to apply without regard to race, color, national origin, sex, religion, familial status, and disability, a marketing strategy such as brochures or information notices shall be provided and distributed or posted in the following locations and shall contain the information described in subsection (b). NMHC shall maintain records of actions taken to affirmatively market the program, and maintain records to assess the results of those actions. Brochures and/or program information notices shall be made available at the following public and private areas: (1) Major shopping centers; (2) Public health centers; (3) Places of worship; (4) Government office buildings; (5) The Nutrition Assistance Program (Food Stamp) office(s); and (6) U.S. Social Security Administration office(s). History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Amdts Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). Part 100 - Purpose and Requirements § 100-100.4-101 Purpose of the Program The purpose of the program is to provide assistance in the form of grants to extremely low, very low and low-income families for the rehabilitation or reconstruction of their principal residence. The rehabilitation goal is to repair or reconstruct storm damaged homes, increasing the economic life of the existing dwelling, providing energy efficiency, and ensuring a safe, decent, and healthy living environment for assisted families. If funding remains after serving all the low to moderate income households, then the program will consider applicants with household incomes between 81% or greater AMI. © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 4 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION The rehabilitation component will be available to serve homeowners whose homes received Major or Severe damage but do not meet the definition of destroyed or substantially damaged. NMHC will use the services of A&E firms to provide construction management which includes conducting damage assessments, design services, developing scopes of work and costs estimates, progress inspections, and contractor assessments. The construction managers will work closely with the Housing Division staff, contractors, and homeowners throughout the rehabilitation or reconstruction process. The reconstruction component will be available to serve homeowners whose homes were destroyed or substantially damaged. Applicants that have already demolished their storm- damaged homes must also provide documentation evidencing the pre-storm structure type, total square footage, and that the damage to the home was caused by the storm. Applicants must also provide notices of condemnation, substantial damage notifications, or other notices requiring the property be demolished. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Amdts Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). §100-100.4-102 Ineligible Activities The following activities are ineligible and CDBG-DR grant funds cannot be used for any portion: • Assistance for homeowners whose home was in a flood hazard zone and previously received federal flood disaster assistance and failed to maintain the required flood insurance; • Assistance for homeowners for which (a) the combined household income is greater than 120% AMI of the national median, (b) whose property sustained damage in the typhoons and was located in a floodplain at the time of the disaster, and (c) the owner did not maintain flood insurance on the damaged property, even if the property owner was not required to obtain and maintain such flood insurance (see Section 4.4 below); • Forced mortgage payoffs; • SBA home/business loan payoffs; • Funding for units occupied by any households except the owner household (no rental or lease properties are allowed); • Funding for second homes; or • Compensation payments. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Amdts Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 5 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION § 100-100.4-103 General Requirements To qualify for rehabilitation assistance, the applicant(s) must meet the following: (a) Qualify as Low Moderate-Income family as defined by HUD including applicants who are above the 80% AMI. Eligible households over 80% AMI will meet the national objective of urgent need; (b) The dwelling must be the applicant’s primary residence prior to the storms and prior to applying for rehabilitation or reconstruction assistance; (c) Must occupy and continue to occupy residence after the completion of such repairs for five (5) years and for reconstruction for a period of ten (10) years; (d) Own the property under an approved form of ownership as set forth in 24 CFR § 92.254(c), and as specified below: (1) Has fee simple title to the property; (2) Maintains a 10-year leasehold interest in the property; (3) Maintains an equivalent form of ownership approved by HUD. (4) Undergo duplication of benefits analysis.; or (e) Applicants not meeting any one of the above, do not qualify for assistance under this program. Title 18, Section 1001, et seq. of the United States Code, the general false statement statute, outlaws making materially false statements, intentional or negligent misrepresentations in matters within the jurisdiction of a federal agency or department, such as federal disaster relief funding. Civil or criminal penalties, including but not limited to fine, imprisonment or both, as well as repayment of any assistance provided, may be pursued. Under Section 1001, a statement is a crime if it is false, regardless of whether it is made under oath. Failure to disclose accurate and complete information may affect eligibility requirements. Some of the information submitted by applicants will be validated through third-party sources during the eligibility process. The following is incorporated into all application and grant documents: Warning: Any person who knowingly makes a false claim or statement to HUD may be subject to civil or criminal penalties under 18 U.S.C. 287. 1001 and 31 U.S.C. 3729. Under penalties of perjury, I/we certify that the information presented above is true and accurate to the best of my/our knowledge and belief. I/We further understand that providing false representations herein constitutes an act of fraud. False. misleading or incomplete information may result in my ineligibility to participate in this program or any other programs that will accept this document. Title 18, Section 1001 of the U.S. Code states that a person is guilty of a FELONY if he/she knowingly and willfully makes a false statement to any department of the United States Government. © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 6 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Amdts Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). Part 200 - Grant Specifications § 100-100.4-201 Grant Amount (a) The maximum grant amount for a Rehabilitation project is capped at $200,000.00,excludingpossibleoptionalrelocationcosts.Inspecialcircumstances,aReviewPanelmayauthorizeagreateramount.(b)Reconstructionprojectsmayexceedtherehabilitationprojects’maximumof$200,000 that are deemed justified and cost reasonable and supported by independent cost estimates. The maximum for a Reconstruction project is 250.000.00, excluding possible optional relocation costs. In special circumstances, a Review Panel, impaneled by the Corporate Director, may authorize a greater amount. (c) NMHC, through the assistance of a private A&E Firm, may update independent cost estimates currently capped at 200,000 for rehabilitation projects periodically and as may be needed. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Amdts Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). § 100-100.4-202 Unit Size Determination and Occupany Standards (a) Fair Housing. The Fair Housing Act (“Act”) (42 U.S.C. §§ 3601-19) prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex (including gender identity and sexual orientation), familial status, and disability. Discrimination includes a failure to make a change, exception, or adjustment to a policy, practice, procedure, or service when such accommodation may be necessary for an individual with a disability to enjoy and use housing. In addition to the requirements under the Act, there may be additional requirements for recipients of federal assistance from HUD. (b) Housing Unit Suitability. Homes acquired, purchased, or newly constructed with CDBG- DR funds under this program, at a minimum, shall be decent, safe, and sanitary. (c) Determination of Unit Size. Limited funding notwithstanding, NMHC shall ensure that the following occupancy standards are observed. (1) Occupancy Standards. Occupancy standards are rules about the number of people that can live in a bedroom or at a property. These standards are usually based on the number of © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 7 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION bedrooms at a property, but they can also take into account the total amount of livable square footage. Oftentimes, a combination of both makes the final call about how many people can live there. HUD occupancy standards are the rules set up by the Department of Housing and Development. These federal occupancy standards are part of the Fair Housing Act Amendment, and they are the overarching rules for occupancy. (2) Unit Bedroom Size. NMHC has set the following Occupancy Standards for family and unit size: (i) All bedrooms with one person should have at least 70 square feet. (ii) Shared bedrooms must have at least 50 square feet per person. (iii) Kitchens and other non-habitable rooms cannot be used as a bedroom. (iv) Every unit should have an overall occupant limitation based on its overall size: (A) 1-2 occupants: must have at least 120 square feet living room. (B) 3-5 occupants: must have at least 120 square feet living room and 80 square feet dining room. (C) 6 or more occupants: must have at least 150 square feet living room and 100 square feet dining room. No. of Family Members No. of Bedrooms 1-2 2 3-4 2 5-6 3 7-8 4 9 and above 5 (v) Exceptions. In certain unique conditions and situations, NMHC, on a case-by-case basis, may grant exceptions when warranted and after thorough review of grant applications. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024) § 100-100.4-205 Target Group Because of the limited funding allocated to the CNMI, NMHC has recognized the need to prioritize the level of assistance to qualified families. In the event that there are more applicants than available funds, NMHC shall establish and maintain an applicant waiting list. All applicants being assisted, as well as those placed on the waiting list shall be processed on a first come, first serve basis, based in the priority needs as described below: NMHC will categorize the target groups based on income levels as follows: (a) 0% to 80% AMI- 1st priority: (b) 81 or greater AMI- 2nd priority: History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Amdts Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 8 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION § 100-100.4-210 Income Eligibility NMHC shall use the HUD CPD Income Eligibility Calculator when determining income eligibility. NMHC shall also refer to the Technical Guide for Determining Income and Allowances for the CDBG-DR Program, Third Edition in verifying the household’s assets and income which can be found in the HUD website. The NMH C shall adopt the guide and make use of the 1040 income and asset calculation worksheets including any and all forms required in determining an applicant’s annual and adjusted income. Information provided by the applicant shall be accompanied with proper documentations (i.e., check stubs, bank statements, 1040 tax forms, etc.). The anticipated gross annual household income and assets for the next twelve (12) months is used in determining if an applicant(s) is/are eligible to participate in the program. NMHC shall calculate the weekly average income and assets and multiply it by 52 weeks. If the total household income falls within the 80% area median income as indicated in § 100-100.4-220(b), the applicant(s) is/are eligible to participate in the program. Households whose incomes are between 80% or greater of the area median income are also eligible once LMI households have been served. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Amdts Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). § 100-100.4-215 Property Eligibility (a) Property Ownership: Interested applicant(s) must provide proof of fee simple ownership or must have at least a 10-year leasehold interest in the property to be improved. The applicant must be present and have interest on the property on or before the presidential disaster declaration date for Typhoon Mangkhut or Super Typhoon Yutu. Ownership acquired post-storm is acceptable, provided that evidence of occupancy in the storm-damaged home prior to, during, and after the storm can be verified. The assisted unit must be located in the CNMI, more specifically, on Saipan, Rota, or Tinian. (b) In the event of the death of an applicant that has been determined as eligible but prior to grant execution, their heirs who are able to document they were occupants of the residence at the time of the disaster and can prove current ownership through heirship will be eligible to apply for Program assistance. If an owner occupant of a property damaged by Typhoon Mangkhut and/or Super Typhoon Yutu has passed away, their heirs may apply for Program assistance, provided they are able to submit evidence the damaged property was also the heir’s primary residence at the time of one of the storms. Heirs who were not occupants at the time of either disaster event are not eligible for Program assistance. © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 9 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION (c) Conformance to Property Standards: All assisted properties that are rehabilitated with CDBG-DR assisted funds must meet the program’s established rehabilitation standards (see APPENDIX A.2). The Rehabilitation Standards are the program’s guidelines of acceptable construction methods and materials to be used when performing rehabilitation and the quality standards that the property must meet when all rehabilitation work is completed. NMHC’s CDBG-DR Written Rehabilitation Standards shall detail the methods, materials and requirements that the housing must meet upon completion of rehab, including all of the following: (1) Health and Safety - identifying all life-threatening deficiencies that must be addressed immediately if the housing is occupied [24 CFR 92.251(b)(1)(i)]; (2) Major systems – requiring that, upon project completion, each major system, as defined in 24 CFR 92.251(b)(1)(ii), had a remaining useful life of a minimum of 1 year, or for a longer period as specified by the NMHC, or the major system was rehabilitated or replaced as part of the rehabilitation [24 CFR 92.251(b)(1)(ii)]; (3) Lead-based paint [24 CFR 92.251(b)(1)(iii)]; (4) Disaster mitigation (if applicable) – requiring the property meet the disaster mitigation requirements [24 CFR 92.251(b)(1)(vi)]; (5) State and local codes, ordinances and zoning requirements [24 CFR 92.251(b)(1)(vii)]; (6) Minimum deficiencies that must be corrected based on inspectable items and areas in HUD’s Uniform Physical Condition Standards [24 CFR 92.251(b)(1)(viii)]. After rehabilitation or reconstruction is complete, NMHC shall make the rehabilitation standards available to the Department of Public Works (DPW) inspectors and the inspectors shall use them as a guide to certify that completed work was done accordingly. This certification will become part of the applicant record. (d) Local/State, National, or International Codes: Upon completion of rehabilitation or reconstruction work, the CDBG-DR assisted owner-occupied rehabilitation property must meet the 2018 International Building Code (2018) enacted by law and updates approved by regulation by the CNMI Department of Public Works Building Safety Office, zoning laws, and International Energy Conservation Code as adopted by the CNMI government. The property must also meet the Green Building and Energy Efficiency Standards as outline in the attached documents, consistent with the Federal Register Notice requirements. (e) Upon completion of rehabilitation work, the CDBG-DR assisted owner-occupied rehabilitation property must meet accessibility requirements, where applicable; The homeowner must also maintain, at their own expense, property insurance on the property covering fire, earthquake, and typhoon. An insurance waiver may be granted, in whole or in part, to homeowners who show financial hardship. (f) Principal Residence and Annual Recertification: (1) CDBG-DR rehab applicants approved to receive financial assistance must own the property and occupy the property as their principal residence at the time of application, upon completion of © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 10 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION the CDBG-DR-funded project, and throughout the NMHC affordability period. In order to maintain compliance with the affordability restrictions, grantee(s) shall be recertified annually for principal residency throughout their grantee affordability period. An annual recertification for principal residency notices and form shall be sent to homeowners/grantees to complete, sign, and submit to NMHC in order to confirm and have on file that they are continually occupying the property and housing. The following stipulations apply for a principal residence: (i) A deed restriction or covenant running with the land shall incorporate this requirement; (ii) A written agreement between the homeowner and NMHC shall also incorporate this requirement; (iii) Temporary subleases are not allowed. (2) Annual recertifications are conducted in order for homeowners to maintain compliance with the affordability restrictions. For individuals who have received assistance through the Reconstruction of their residence, the annual certification process will also include, as part of the annual review, verification of the non-occupancy of any other structure located on the same property. (3) Annual recertifications through field visits may be conducted if the required completed form has not been provided, or if the account status is pending probate, or the account has been accelerated to the collection attorney for foreclosure proceedings. The Grant Specialist shall verify the grantee(s) principal residence and, as necessary, to take photos and document the status of the residential unit. (4) Affordability periods during which the homeowner must maintain the home as his/her primary residence are as follows: (a) Rehabilitation 5 years (b) Reconstruction 10 years (5) Extended Terms: Should a financial hardship beyond the homeowner’s control exists, a request for a waiver of the repayment provisions of the affordability requirement can be considered. The grantee(s) must provide NMHC with documentation justifying their inability to meet the affordability term while at the same time providing an adequate standard of living for his/her/their family. Financial hardship includes, but is not limited to: (i) Reduction-in-force; (ii) Reduction in pay; (iii) Family medical emergency (including death of an immediate family member: parents, siblings, child(ren), spouse, and in-laws); (iv) Medical condition (including career-ending injury) that causes homeowner to discontinue employment. The grantee’s physician must complete the homebuyer/homeowner program disability eligibility verification to certify the grantee’s medical condition; (v) Temporary relocation (provided that at least one of the original household members is still residing in the assisted unit; or (vi) Natural disaster. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 11 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION § 100-100.4-235 Use of Grant Funds (a) (1) The grant funds will be used to assist existing homeowners to repair, rehabilitate, or reconstruct owner-occupied housing units affected by the storms for the primary purpose of correcting dwelling deficiencies ensuring a safe and healthy living condition, and preserving and extending the physical life of the dwelling. All corrections shall conform to the 2018 International Building Code enacted by law and any updates approved by regulation by the CNMI Department of Public Works Building Safety Office, zoning laws, International Energy Conservation Code as adopted by the CNMI government, and also ensure that it meets the NMHC HOME/CDBG-DR Rehabilitation Standards as adopted by the NMHC Board. (2) Special purpose homeowner repairs such as weatherization, emergency repairs, and accessibility may only be undertaken within a more comprehensive scope of work that brings the housing unit up to standard. (b) (1) Rehabilitation - This includes the alteration, improvement, or modification of an existing structure. It also includes moving an existing structure to a foundation. Rehabilitation may include adding rooms outside the existing walls of a structure. (2) Adding a housing unit is considered new construction and is not eligible. (c) Reconstruction - In most instances, applicant(s) requesting assistance under this program live in substandard homes which are often unsafe and unsanitary. Many of which are termite infested and dilapidated to the point where a complete tearing down of the unit would be most appropriate. These types of structures would most likely endanger the households during storms and other calamities. Reconstruction refers to rebuilding a structure on the same lot where the housing unit is standing at the time of the storms. CDBG-DR funds may be used to build a new foundation or repair an existing foundation. Reconstruction may take place on the same foundation that the existing structure was on. Reconstruction may take place anywhere on the lot. During reconstruction, the number of rooms per unit may change, but the number of residential units may not. (d) Luxury items and improvements are not eligible, including but not limited to: barbecue pits, bathhouses, exterior hot tubs, saunas, whirlpool baths, swimming pools, satellite dishes, tennis courts, and granite counter tops. Any additions or alterations to provide for commercial use are not eligible. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Amdts Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). § 100-100.4-240 Eligible Costs © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 12 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION CDBG-DR funds can be used to cover the hard rehabilitation costs necessary to meet required rehabilitation standards and associated “soft costs.” CDBG-DR funds can be used to cover the hard rehabilitation costs necessary to meet required rehabilitation standards and associated “soft costs.” CDBG-DR funds may be used to pay for property improvements that are considered standard for the area. However, non-essential luxury or cosmetic improvements to the property are not permitted. (1) Hard costs include the following: (i) Meeting the rehabilitation standards; (ii) Meeting applicable codes, standards, and ordinances; (iii) Essential improvements; (iv) Energy-related improvements; (v) Lead-based paint hazard reduction; (vi) Accessibility for disabled persons; (vii) Repair or replacement of major housing systems; (viii) Incipient repairs and general property improvements of a non-luxury nature; and (ix) Site improvements and utility connections. (2) Soft costs include the following: (i) Financing fees; (ii) Preliminary title report (PTR) and lender’s title policy, if applicable; (iii) Recordation fees, transaction taxes; (iv) Legal and accounting fees; (v) Appraisals; (vi) Architectural/engineering fees, including specifications and job progress inspections; (vii) Project costs incurred by the PJ that are directly related to a specific project; and (b) NMHC shall set aside $7,950.00(moreorless,dependingoncurrentcosts)perprojectfromtheprogrambudgettoassisteachqualifiedrehaborrecongranteetopayforthefollowinggrantclosingfeesandotherrelatedcostsThisformofassistanceshallnotbeinanyway,apartoftherehabloanamountextendedtotheclient.GranteeswillnotberequiredtopaybackanyofthisamountsolongastheyareincompliancewithNMHCaffordabilityrestrictions.TheentireamountshallbeimmediatelydueandpayablebythegranteeshouldNMHCdeterminethatgrantee(s)arenotincompliancewithNMHCaffordabilityrestrictions.(1)$5,000.00 Utility connection*; (2) $2,000.00Firstannualpremiumforhazardinsurance;(3)$250.00 Recordation of covenant; (4) $100.00Preliminarytitlereport(PTR)(5)$600.00 Appraisal (if applicable) $2,795.00 Total *Grantee must ensure that there are no outstanding issues with the utility company (1) If the homeowner(s) opt to have a private inspector perform unit inspection, the first/initial unit inspection fee may be covered by NMHC, subject to any conditions set by NMHC. Any cost associated with any subsequent inspection shall be the responsibility of the homeowner(s). © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 13 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Amdts Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). Part 300 - Grant Application Process § 100-100.4-301 Confidentiality As is NMHC’s practice, all applicant information is kept confidential and shall be made available only to applicant, the applicant’s authorized representative; HUD and the Comptroller General of the United States, any of their representatives, have the right of access to any pertinent books, documents, papers or other records of the participating jurisdiction, state recipients, and subrecipients, in order to make audits, examinations, excerpts, and transcripts; and authorized NMHC personnel. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Amdts Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). § 100-100.4-305 Discrimination Prohibited Under no circumstances shall any of the NMHC Board of Directors, its officers, employees, agents, or contractors providing services to the corporation discriminate any applicant on the basis of race, color, national origin, religion, sex, ancestry, disability, or familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18). History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Amdts Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). § 100-100.4-310 Pre-Qualification Interview (a) Before an applicant can be given a formal application, the interviewing program specialist must conduct a pre-qualification interview to initially determine an applicant’s eligibility for assistance. A Homeowner Rehabilitation and Reconstruction Program Pre-Qualification Interview Worksheet shall be completed by the interviewing program specialist. © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 14 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION (b) The information collected from the applicant during these processes subject to verification. As a result, applicants whose threshold eligibility elements cannot be verified may later be determined ineligible for the program. (c) The following documentation is required to determine eligibility (see File Checklist): (1) Completed application (2) Valid current ID (applicant and co-applicant) (3) Proof of citizenship (4) Documentation of principal residency - date of storm (5) Proof of ownership (6) Income documentation (7) Tie to disaster documentation (8) Documentation for duplication of benefits determination (FEMA, SBA, private insurance, charity) (9) Current mortgage statement (10) Receipts or other documentation of repairs made by applicant with funds provided (11) Power of attorney (if applicable) (12) Communication designee (if applicable) (13) Homestead permit and/or deed (if applicable) History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Amdts Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). § 100-100.4-315 Eligibility Notification Once the applicant(s) has been pre-qualified and have been later determined eligible for the program, NMHC shall officially notify the applicant(s) in writing of their eligibility. Such notification shall be mailed no later than five (5) working days after the determination, and shall contain a listing of additional information to be submitted for completion of the applicant’s file. Eligible applicant(s) shall be given thirty (30) calendar days to submit the additional information requested. Applicant(s) who do not submit all pending information before the thirty (30) calendar day deadline, shall have their application(s) file placed in the pending files. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Amdts Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). § 100-100.4-320 Ineligible Applicants All ineligible applicants shall be notified in writing of their ineligibility. Such notification shall be mailed no later than five (5) working days after the determination of ineligibility and shall include a description/reason of such determination. Those found ineligible may appeal such determination © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 15 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION to the Corporate Director within ten (10) working days from the date of receipt of the ineligibility notice. The Corporate Director will then review the appeal and render a decision within thirty (30) days from the date of receipt of the appeal letter. Ineligible applicants may further appeal the Corporate Director’s decision pursuant to 1 CMC § 9112(b), within 30 days after the final agency decision has been issued, the applicant will have a right for judicial review. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). § 100-100.4-325 Initial Inspection of Residence Initial inspections shall be conducted by NMHC’s A&E firm contractor(s) or project manager and in coordination with the program specialists or an NMHC representative to identify and verify deficiencies noted by eligible homeowners/applicants. NMHC personnel conducting the inspections shall note deficiencies in written form and shall document (i.e., obtain pictures) the condition of the unit. Such inspections shall also verify the eligibility and be the basis in estimating the costs of the rehabilitation activities requested and in developing the scope of work for the rehabilitation project. The applicant and the inspection personnel (A&E firm), as well as the responsible program specialist, shall work cooperatively to develop the scope of work for the project. The rehab scope of work needs to adequately describe the work to be performed so the housing will meet NMHC’s written rehabilitation standards at completion. The scope of work must be an eligible activity as described in § 100-100.4-235. The A&E firm providing the scope of work will also provide NMHC with an estimated cost of repairs that will serve as the independent cost estimate against which construction bids will be evaluated. The scope of work shall be provided to three (3) NMHC-approved contractors by the grantee(s) who shall prepare a cost breakdown estimate for the project. The estimates shall then be submitted along with the applicant(s) choice of contractor for the project upon submission of his/her/their grant application. If the applicant(s)’s choice of contractor is not on NMHC’s approved contractor listing, the contractor shall be vetted prior to award of the contract. With regard to reconstruction projects, NMHC may provide pre- approved house plans to the applicant that best fit the footprint of the destroyed home. NMHC may, at its own discretion, select the appropriate contractor for the applicant if the rehab project is deeply subsidized using additional CDBG-DR funds. Deeply subsidized means additional funding assistance on top of the underwritten funding assistance. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). § 100-100.4-330 Lead-Based Paint © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 16 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION (a) The federal government banned lead-based paint from housing in 1978. Deteriorating lead-based paint (peeling, chipping, chalking, cracking, or damaged) is a hazard and needs immediate attention. (1) For Homeowner Rehabilitation Projects: Before any rehabilitation work is done, homeowners must provide documentation that shows that their homes were built either before or after January 1, 1978. Such documentation may include a copy of the building permit, if one can be provided; a notarized declaration/affidavit by the homeowner(s) or contractor attesting to the completion date of the home construction; and the age of the dwelling unit/property. (b) For those homes deemed to have been completed before January 1, 1978, they must be checked for lead in one of two ways, or both: (1) A paint inspection which shows the lead content of every different type of painted surface in the home; (2) A risk assessment which shows if there are any sources of serious lead exposure (such as peeling paint and lead dust). A risk assessment provides the homeowner the necessary actions to take when addressing these hazards. (c) Only a trained, certified professional is allowed to check the home for such hazards. Only a certified lead “abatement” contractor is allowed to permanently remove lead hazards. However, if the risk assessment does not reveal any lead-based paint hazards, NMHC will not require the homeowner to conduct any abatement of hazards. (d) For those homes that were completed before January 1, 1978, the following forms must be completed: (1) Lead Hazard Evaluation Notice; (2) Notice of Lead Hazard Reduction; (3) Relocation Screening Sheet for Projects with Lead Hazard Reduction Activities; (4) Protection of Occupants’ Belongings and Worksite Preparation for Projects with Lead Hazard Reduction Activities; and (5) Property Owner/Rehab Contractor Contract Addendum Reduction of Lead Paint Hazards (e) The following are required activities to address lead-based paint; (1) NMHC-issued Notification (i) Lead Hazard Information Pamphlet—Occupants, owners, and purchasers must receive the EPA/HUD/Consumer Product Safety Commission (CPSC) lead hazard information pamphlet, or an EPA-approved equivalent. (ii) Notice of Lead Hazard Evaluation or Presumption—Occupants, owners, and purchasers must be notified of the results of any lead hazard evaluation work or the presumption of lead- based paint or lead hazards. (2) Notice of Lead Hazard Reduction Activity—Occupants, owners, and purchasers must be notified of the results of any lead hazard reduction work. (3) Lead Hazard Evaluation—Evaluation methods include visual assessments, paint testing, and risk assessments. (4) Lead Hazard Reduction—Reduction methods described include paint stabilization, interim controls, standard treatments, and abatement. © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 17 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). § 100-100.4-335 Environmental Review Procedures for Entities Assuming HUD Environmental Responsibilities (24 C.F.R. Part 58) (a) CDBG-DR rehabilitation activities to be undertaken by NMHC are subject to the environmental review requirements at 24 C.F.R. Part 58. NMHC is the responsible entity and is responsible for ensuring that the environmental review process is satisfied before CDBG-DR funds are committed to specific project site. (b) Rehabilitation of homeowner housing may be categorically excluded per 24 C.F.R. §58.35(a)(3) when the following conditions are met: (1) The building is for residential use and has one to four units; (2) The density will not increase beyond four units; and (3) The land use will not change. (c) Reconstruction of a single-family unit in a new location on the same lot is classified as new construction for the purposes of environmental review. Reconstruction of homeowner housing may be categorically excluded per 24 C.F.R. § 58.35(4)(i) when it is an individual action (reconstruction only) on a one to four family dwelling and there are no more than 4 dwelling units on any one site. (d) Homeowner rehabilitation housing categorically excluded per 24 C.F.R. § 58.35 is categorically excluded from an environmental assessment (EA) and finding of no significant impact (FONSI) under the National Environmental Policy Act (NEPA) except for extraordinary circumstances. To document compliance with environmental review requirements, NMHC must: (1) Complete the Rehab Environmental Review (RER) (which includes the Notice of Intent to Request Release of Funds for Tiered Projects and Programs, submitting a RROF to HUD, and obtaining the ATUGF from HUD), in accordance with 24 CFR 58; and, (2) Complete the Tier 2 Site Specific Review RER Appendix A when an individual grant application is received before approving any site-specific grant for each structure, document and implement the mitigation of impacts as necessary, and keep all supporting documents in the Environmental Review Record as evidence of compliance. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 18 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION § 100-100.4-340 Rehabilitation or Reconstruction Grant Application (a) Applicants determined eligible for assistance will be provided a Rehabilitation or Reconstruction Grant Application. A checklist of all required documentation for submission is attached to the grant application. Preliminary requirements include: (1) Certificate of title/deed/homestead permit/lease agreement; (2) Property map and sketch of direction to property; (3) Program eligibility release form (4) 1040 tax form for the previous tax year; (5) Latest two (2) months of pay stubs; (6) Verification of employment; (7) Current loan statement or loan payment record; (8) Most recent savings account statement (TCD, bonds, form passbook, money market accounts); (9) The last six (6) months checking account statement available; (10) Profit sharing plan (bank or duty-free employees); (11) Most recent retirement plan statement; (12) Current certification of child care expenses; (13) Current Certificate of Compliance from Division of Revenue and Taxation; (14) Judgments (if any); divorce statement and/ or probate decree; (15) Verification of medical expenses (transportation and medication); (16) Verification of full-time student status; (17) Business income tax forms for three (3) previous years, if applicable; (18) Verification of Social Security or SSDI benefits; (19) Verification of pension and annuities; (20) Verification of Veterans Affairs benefits; (21) Most current financial statements, if applicable. (b) A duplication of benefits verification will also be performed to determine actual grant assistance. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). § 100-100.4-345 Application Intake and Processing History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). § 100-100.4-350 Verification of Income © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 19 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION As part of determining income eligibility (to determine income eligibility, NMHC needs to consider the income of ALL household members), the applicant(s) shall provide NMHC with an executed Program Eligibility Release Form to conduct a third-party verification, if needed. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). § 100-100.4-355 Administration, Approval, Appeals Process (a) Program Administration (1) The Housing Administrator is tasked in implementing and managing of related tasks. The Housing Administrator shall supervise program specialists in grant operation, underwriting and closings under the Homeowner Rehabilitation and Reconstruction Program. The Duplication of Benefits (DOB) analysis will also be conducted by the CDBG-DR Housing Administrator to determine net financial assistance to be provided to the Homeowner. (2) Under the direction of the CDBG-DR Housing Administrator, a CDBG-DR Grant Supervisor and/or a Grant Specialist shall review and verify all applicants’ income, assets, liabilities, title reports, and any other requested reports and documentation. Upon completion of the review process. the Grant Specialist shall prepare a grant write-up containing his/her recommendations. (3) The Grant Supervisor shall review each submitted application, ensure all supportive documentation is in place and complete, and concur or make any necessary recommendations to the Housing Administrator prior to the Housing Administrator making the final decision on the grant application. (b) Grant Review & Approval Under the direction of the Housing Administrator, a grant specialist shall review and verify all applicants’ income, title reports. and any other requested reports and documentation. Upon completion of the review process, the grant specialist shall prepare the grant document. (1) The Grant Supervisor shall review the grant application for concurrence before submitting the same to the Housing Administrator for a final decision. Final approval or denial of any grant shall be made by the Housing Administrator except as follows: (i) If the Housing Administrator is off-island or on extended leave at the time the grant is submitted to him/her for a final decision, then the Acting Housing Administrator may make the final decision to approve or deny the grant; or (2) For purposes of these policies, off-island or extended leave shall be defined as an absence or leave that extends for more than three (3) working days after the grant is submitted to the Housing Administrator for his or her final decision. (3) A written notice of the final decision shall be provided to the applicant and a copy/report of the decision shall be provided to the NMHC Corporate Director for informational purposes. © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 20 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION (c) Grant Denial Appeals Process (1) Applicants denied assistance under this program may appeal the final decision to the NMHC Corporate Director by submitting their appeal in writing to the Housing Administrator within ten (10) calendar days of the written notice of the final decision. (2) Any appeal submitted must indicate the basis for the appeal and include any supporting documents. Upon receipt of an appeal, the Housing Administrator shall submit the same to the Corporate Director for review and action. (3) Possible Outcomes: (i) Upheld Denial: If the original decision is confirmed, the applicant should be notified with a clear explanation of why the decision stands. (ii) Reversal of Denial: If the decision is overturned, the applicant should be granted housing assistance, and they should receive written confirmation. (iii) Further Action: If the appeal is complex, a hearing or meeting may be scheduled. (4) Hearing (if requested/applicable) (i) Scheduling: If the applicant requests a hearing, the agency should schedule it within 30 days or as soon as possible. (ii) Location: The hearing can be held in person or virtually, depending on the circumstances. (iii) Representation: The applicant may be allowed to bring a representative, such as a lawyer, advocate, or family member, to assist with the hearing. (iv) Presentation of Evidence: Both the applicant and the agency can present evidence or make arguments related to the denial. (v) Neutral Hearing Officer: The Corporate Director or a neutral party should preside over the hearing to ensure fairness. (5) Decision on Appeal (i) Issuance of Decision: After the hearing or review, the Corporate Director should issue a written decision, which should include: (A) A summary of the hearing or review process. (B) The findings of fact. (C) The rationale for the decision. (D) Information on next steps, if applicable (such as the right for judicial review). (ii) If a Hearing Officer presides over the appeal, the Hearing Officer will adhere to 1 CMC § 9110. This includes the need to provide the agency and applicant to submit proposed findings of fact and conclusions of law under 1 CMC § 9110(b)(1); and providing parties the ability to submit exceptions to the Hearing Officer’s recommended order or decision before it becomes the final agency decision under 1 CMC § 9110(b)(2). (iii) Timeframe: The decision should be made within a reasonable time after the hearing or review was conducted. (iv) Under 1 CMC § 9112(b), within 30 days after the final agency decision has been issued, the applicant will have a right for judicial review. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). § 100-100.4-360 Homeowner Counseling Session © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 21 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION (a) All applicants for grant assistance must attend a Homeownership/Homebuyer Education and Counseling Session that will be provided by NMHC. On or before August 1, 2021, NMHC employees providing housing counseling will be HUD certified housing counselors, and NMHC will have applied directly to HUD and received approval, or NMHC will have applied to a HUD- approved intermediary and received approval by the entity to be its affiliate. NMHC shall notify the applicant(s) of the date, time, and location of the session. The education and counseling session shall be scheduled after the grant has been preliminarily approved and may be conducted before or on the day that NMHC issues the commitment letter to the applicant(s). The counseling session shall include a discussion of the terms and conditions of the grant, educate the homeowner(s) of their financial responsibilities, the importance of budgeting, making timely payments, foreclosure prevention, as well as, home maintenance and repair measures. Acceptable delivery method for housing counseling may be in-person, phone, or internet. Duration of the housing counseling is four (4) hours. Upon completion of the housing counseling, the grant recipients will receive a counseling certificate and this counseling certificate is valid for 2 years. Funding for housing counseling will come from project-related soft costs. (b) NMHC shall inform applicant(s) at the time of their submission of their application of the required homeowner counseling session and again in written form when NMHC notifies the applicant(s) of NMHC’s preliminary approval of their grant request. Failure to attend the required Homeownership/Homebuyer Education and Counseling Session may be grounds for denial or cancellation of assistance. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). § 100-100.4-365 Commitment Letter Once the grant application has been approved by the Housing Administrator, the responsible grant specialist shall prepare the Commitment Letter for the Housing Administrator’s signature. The Commitment Letter is a binding agreement between NMHC and the grantee(s) wherein it discloses the terms and conditions of the grant including that the housing is the principal residence of an income qualified homeowner; the amount of the grant, the rehabilitation work to be performed; the completion date; and the property standards that must be met. (a) After the Commitment Letter has been signed and dated by the Housing Administrator, the responsible program specialist shall schedule the applicant(s) to come in and also sign and date the document should they agree with the terms and conditions. (b) NMHC must reexamine the household’s income eligibility if the determination was made more than six (6) months before signing the Commitment Letter. © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 22 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION (c) NMHC must set up the activity in DRGR following execution of the commitment letter and commitment of CDBG-DR funds. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). § 100-100.4-370 Preliminary Title Report (PTR) (a) The responsible program specialist shall order a preliminary title report (PTR) on behalf of the applicant(s). The purpose in obtaining a title report is to ascertain ownership of the proposed property is verified and there are no liens that will cloud the title. (b) A title search and review of recorded ownership information is conducted to verify that the property to be assisted with CDBG-DR funds is held in one of the eligible forms of ownership. (c) The responsible program specialist shall obtain the preliminary title report (PTR) by submitting an email request to the local title companies. The project will be granted on a first come, first served basis to the company agreeing to the rate set by NMHC. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). § 100-100.4-374 [Reserved] History: Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). § 100-100.4-375 [Reserved] History: Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). § 100-100.4-380 [Reserved] History: Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 23 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). Part 400 - Rehabilitation § 100-100.4-401 Performing Rehabilitation Work (a) NMHC’s Architecture and Engineering firm will be responsible for the development of the scope of work and determination of an estimated cost of repairs in advance of procuring bids for construction. (b) Contractor Cost Estimates. The homeowner(s) shall be responsible in obtaining a minimum of three (3) written rehabilitation cost estimates from at least three (3) NMHC approved contractors, and each cost estimate submitted must include, at a minimum, the following information: bid price, cost breakdown of materials and labor charges, and schedule for completion of work. (c) Selection of Contractor. The homeowner(s) shall have the right to select a contractor to perform the rehabilitation work, provided that the contractor’s quotation and after rehab value does not exceed the independent cost estimate provided by the A/E firm plus or minus 10%. The contractor must be an NMHC-approved contractor or if not an approved contractor, then NMHC must vet the contractor prior to award of the project. Should it exceed the grant amount, the homeowner shall negotiate with the contractor in reducing the contract amount. If the contractor is not willing to lower the contract amount, then the grantee shall select his/her/their next choice. Once the homeowner and contractor agree to the project and cost, the homeowner shall submit a contractor selection notice notifying NMHC of his/her/their selection. (d) Construction Contract. The construction contract is a binding agreement strictly between the homeowner and the contractor whereby the contractor will provide the rehabilitation or repair or reconstruction work for a specified and agreed upon price. As NMHC’s role is to finance the construction of the project, it is not a party to the construction contract. However, NMHC will monitor the construction process and, at any time the contractual provisions are not followed, NMHC shall meet with the homeowner and contractor to discuss the dispute and come to a mutual agreement. The construction contract shall include, but is not limited to, the following provisions: (1) Contractor’s name and mailing address; (2) Homeowner(s) name and mailing address; (3) Date of the contract, the contract amount, and payment schedule for each incremental billing; (4) Calendar days to complete the work (includes Saturdays, Sundays, and holidays); (5) Contractor will provide the performance bond, labor and material payment bond up to the contract amount, as well as a builder’s risk policy for the project; (6) The contractor will provide all the construction plans and permits necessary to comply with applicable local and federal laws; (7) Issuance of the notice to proceed or the commencement of the project and that the rehab must start within 12 months of NMHC executing the commitment letter with the grantee; © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 24 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION (8) Contractor will provide a one-year warranty on all work completed; (9) NMHC’s right to inspect the progress of the project and right to withhold progress payments; (10) Change order procedures, if any; (11) A provision for liquidated damages must be included in the construction contract which shall be negotiated between the homeowner and contractor; and (12) Description of the work to be performed so that inspections can be conducted and, for rehabilitation, so that housing will meet NMHC’s rehabilitation standards. (e) Contractor Notification and Pre-Construction Requirements. Once NMHC is in receipt of the homeowner’s contractor selection notice, NMHC shall notify the contractor of the homeowner’s selection of their company. NMHC shall inform the contractor of the scheduled pre-construction conference and shall likewise inform the contractor of the required construction documents for submission as listed below. (1) Building permit (if applicable); (2) Zoning permit (if applicable); (3) Earthmoving and erosion control permit (if applicable); (4) Construction contract; (5) Performance and payment bonds; (6) Plans and specification approved by DPW; (7) Private inspector’s contract (if applicable). (f) Project Duration – Rehabilitation projects should be completed within twelve (12) months following execution of the CDBG-DR Written Agreement. Reconstruction projects should be completed within twelve (12) months following execution of the CDBG-DR Written Agreement. Contract extensions may be granted in extenuating circumstances upon approval of NMHC. (1) Progress payment requests shall be submitted to NMHC by the contractor incrementally as specified in the payment schedule. NMHC shall ensure that all work description indicated on the payment schedule is completed prior to releasing the contractor’s payment. An original and a copy of the request must be submitted to the NMHC. The contractor shall freely use his/her/their company’s billing form when submitting a payment request. The payment request shall be accompanied with the following whenever applicable: inspection reports (DPW and/or private inspector), geotesting results, termite treatment certification and/or warranty, builder’s warranty, and/or homeowner’s acceptance of the project. In addition, each billing submitted must include pictures of the progress of the project and a copy of the payment schedule. (2) Payment schedule shall be as follows: (i) Payment request number 1 shall not be more than 10% of the contract amount. This shall include the installation of the project sign board accompanied with a picture, the delivery of materials to the construction site and commencement of the project; (ii) Payment request number 2 shall not be more than 25% of the contract amount; (iii) Payment request number 3 shall not be more than 25% of the contract amount; (iv) Payment request number 4 shall not be more than 25% of the contract amount; (v) Payment request number 5 shall be the 15% retainage request when all work is completed. The final payment request shall be accompanied with the certificate of occupancy from DPW’s © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 25 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION Building Safety Office, builder’s warranty, window warranty if subcontracted, termite treatment warranty, final inspection report from the DPW and if applicable, the private inspector’s inspection report, certificate of acceptance from the homeowners, geotesting results if applicable, proof of Green Standards implementation, pictures of the project’s interior and exterior, and DEQ certificate of use (sewage disposal system), if applicable and house keys with duplicates. (3) Change Order Procedures. From time to time, homeowners may request for changes in the plans and specifications. In the event that this should occur, the following steps must be taken to address such request: (i) Homeowner must notify contractor in written form of the proposed changes and provide NMHC a copy of the notification. (ii) Upon receipt of the notification, the contractor must cease work at the project site and obtain NMHC’s approval of the change order request. A/E firm or NMHC staff will review change order for cost reasonableness. Upon approval the contractor shall then provide NMHC with the revised plans and specifications, including a revised payment schedule (if scheduled payments will be altered by the proposed changes). The contractor must obtain NMHC’s approval of the change order request. (iii) Once the change order request is approved, the grant agreement will be revised to reflect the new amount. The contractor will be required to submit the revised plans and specifications to DPW for approval. (iv) Should the change order request be denied, then the contractor shall resume work to ensure timely completion of the project. The contractor may not be able to complete the project on time because of the delays the change order request may have caused. Therefore, the homeowners shall give the contractor additional days equal to the time the work was ceased up until the time the change order request was denied to complete the project. The homeowner shall not charge the contractor liquidated damages during this period. (v) Once the contractor has obtained the DPW’s approval of the plans and specifications, then it shall provide the NMHC with the same copy. The contractor shall proceed in carrying out the change order and completing the project. (vi) Inspections: NMHC shall have the right, during the rehabilitation work or improvement of the unit, to inspect the same and with justification, to reject and to require to be replaced, any material or workmanship that does not comply with the plans and specifications, without any liability on the part of NMHC, as to workmanship or materials therein. Such inspection is solely for financing purposes and for the disbursement of funds, and any inspection or approval of any rehabilitation phase or increments of said dwelling shall not be deemed as a warranty by NMHC of the workmanship and material therein. (vii) Inspector: Progress and final inspections shall be conducted by the Building Safety Office of the Department of Public Works (DPW) to ensure all work performed is done according to the plans and specifications as approved by the applicant and DPW and applicable property standards. Homeowner(s) may have a private inspector, (i.e., a qualified licensed engineer or a qualified licensed architect), conduct inspection at the homeowner’s costs with such inspection to be handled in accordance with § 100-100.4-240. (viii) Minimum Property Standards (MPS): For new construction of housing and acquisition and/or rehabilitation of housing, CNMI Building Safety Code and zoning laws (if applicable for Tinian and Rota), International Energy Conservation Code, NMHC written design standards for © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 26 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION single-family housing new/rehabilitation, and accessibility requirements (where applicable) must be adhered to. Homeowners, through their contractors, must ensure that they are familiar with these requirements. NMHC may rely on inspections performed by a qualified person. (ix) The contractor will provide all the construction plans and permits necessary to comply with applicable local and federal laws. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). Part 500 – Fraud, Waste and Abuse § 100-100.4-501 Eligibility Certification Homeowner certifies that he/she has provided complete, accurate, and current information regarding household income, residency, occupancy, and any other documentation required to demonstrate Homeowner’s eligibility to receive CDBG Disaster Recovery funds. Any activity carried out with CDBG-DR funds involving the construction, acquisition, or acquisition w/renovation is considered to benefit LMI or UN persons only to the extent such housing will, upon completion, be occupied by such persons. The Homeowner hereby affirmatively certified that their material representations which have been relied upon by NMHC as essential to its determination of the eligibility of the Homeowners to receive the grant funds have been truthfully, satisfactorily and adequately provided to NMHC. The Homeowner agrees and attests to the fact that if any of the representations made are intentionally or willfully false or fraudulent, NMHC may immediately declare the Homeowner in default of this Grant Agreement, allowing for remedies as provided for under this grant agreement and the law. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025). § 100-100.4-505 Default Any one or more of the following events shall constitute an event of default under this grant agreement: (a) Failure to perform any covenant or promise under this Grant Agreement, or making any representation or warranty in this Grant Agreement, or in the application for the grant, or in any report, certificate, financial statement or other instrument furnished in connection with the property, which is false or misleading in any material respect. © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 27 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION (b) Seizure or foreclosure of the prope1ty or assets of the Homeowner pursuant to process of law or be respect of legal self-help, unless said seizure or foreclosure is stayed or bonded within thirty (30) days after the occurrent of same; or (c) If any other event of default has occurred and remains uncured under any other agreement entered into between NMHC and the Homeowner. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025). § 100-100.4-510 Remedies Upon Default Upon the existence of any event of default, NMI IC, after giving notice and reasonable opportunity to cure the default may, in its sole discretion, do any of the following, alone or in combination: (a) Terminate this Grant Agreement; (b) Withhold grant funds not yet paid at the time of default during such time as an event or events of default remain uncured; (c) File an action at law against the Homeowner to obtain a judgment against the Homeowner to recover the full amount of all grant funds paid; or (d) Pursue any other remedies against the Homeowner including any civil and criminal remedies allowed by law. NMHC’s rights under Default shall survive termination of the Grant Agreement. Failure to insist on the prompt performance by Homeowner of Homeowner obligations pursuant to this Grant Agreement is not a waiver by the NMHC of any of its rights hereunder. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025). Part 600 - Affordability § 100-100.4-601 NMHC Affordability Restrictions (a) Long Term Affordability: NMHC has elected to impose NMHC affordability requirements that require that assisted properties remain affordable for a specific period of time, depending on the nature of the activity funded: Program Minimum Length of the Affordability Period Rehabilitation 5 years Reconstruction 10 years (1) Affordability Restrictions © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 28 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION (i) The affordability requirements are to be imposed by deed restrictions, covenants running with the land, or other mechanisms approved by HUD, except that the affordability restrictions may terminate upon foreclosure or transfer in lieu of foreclosure or upon grant payment. (2) Affordability and Special Exceptions (i) The affordability restrictions shall be revived according to the original terms if, during the original affordability period, the owner of record before the termination event, or any entity that includes the former owner or those whom, the former owner has or had family or business ties, obtains an ownership interest in the project or property. If a home rehabilitated with CDBG-DR assistance is sold during the NMHC affordability period, NMHC recapture provisions apply to ensure the continued provision of affordable homeownership. (ii) Grantees may submit a written request to temporarily defer the affordability period for up to sixty (60) months. Requests may be considered for the following reasons: (1) Military-related leave; (2) Medical leave requiring extended off-island medical treatment and care; and/or (3) Higher education when an accredited institution requires relocation. In cases where extended leave is necessary and another family member continues to occupy the assisted property, the deferral may still be granted. provided that occupancy requirements are met and supporting: documentation is submitted for review. All requests must be documents and submitted in writing for evaluation and approval by the Corporate Director. (b) Right of First Refusal. During the affordability period, the homeowner(s) agrees not to sell or assign the residence hereby rehabilitated to any persons unless and until homeowner(s) proposes to sell same to NMHC, its successors or assigns on terms consistent with preserving affordability and allows then sixty (60) days’ time within which to purchase said residence. (c) Recapture. NMHC will ensure that it recoups all or a portion of the assistance provided to the homeowner(s) if the housing unit ceases to be the principal residence of the homeowner(s) for the duration of the period of affordability. Subsidy amounts (in the form of grants) that directly benefited the property owner are subject to recapture. Recapture is capped at what is available out of net proceeds for agreements. Net proceeds are defined as the sales price less superior non CDBG-DR debt (if any) less closing costs. NMHC shall utilize the following recapture options: Reduction during NMHC Affordability Period. NMHC may reduce the grant amount to be recaptured on a pro rata basis for the period the homeowner(s) has/have owned and occupied the housing unit measured against the required NMHC affordability period. However, homebuyer(s) must occupy the housing unit at least halfway into the affordability period, whichever is greater, in order to qualify for this recapture option. For example, if the CDBG-DR subsidy is $60,000with10-yearaffordabilityandtheownersellstheprope1tyinthe8thyearofownershiptherecaptureamountwillequal$12,000. ($60,000/10yearsaffordabilityperiodx2yearsremaining=$12,000 recapture.) (d) When the recapture requirement is triggered due to a voluntary or involuntary sale during the period of affordability and there are no net proceeds or the net proceeds are insufficient to © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 29 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION repay the CDBG-DR investment due, NMHC may recapture an amount less than or equal to the net proceeds available. (e) Legal Instruments to Enforce Recapture. NMHC must use deed restrictions, land covenants, or other similar legal documents approved by HUD to enforce these recapture restrictions as approved by HUD. These requirements will also be included in grant agreements. Modified: 1 CMC § 3806(g). History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). Part 700 - Conveyance § 100-100.4-701 Sale, Conveyance, or Transfer of Property (a) Enforcement of the terms of the recapture provisions as set forth in the written agreements/commitment letters is triggered upon the sale, conveyance, or transfer of title of the rehabilitated real property under this program during the NMHC affordability period which may not necessarily result in the repayment of all CDBG-DR assistance. Upon sale of the home and enforcement of the recapture provisions, the affordability period will terminate. (b) At the sole discretion of NMHC, a title transfer will only be permitted through the laws of descent or upon selling the property, provided that NMHC has been properly informed and the same has consented to such sale. If should any of these occur, one must submit his/her intention to sell the property and request for the NMHC Corporate Director’s approval for the transfer of title. If the title changes hand through the laws of descent during the affordability period, the affordability period may not terminate and continue with the new homeowner if the new homeowner satisfies the eligibility requirements. The new homeowner may assume the affordability period if the new homeowner meets the eligibility requirements. If the title changes hand through the laws of decent during the NMHC affordability period and the new homeowner does not meet the eligibility requirements, NMHC will enforce the terms of recapture set forth in the commitment letter and enforced with recorded deed restrictions or land covenants. Upon enforcement of the recapture provisions, the NMHC affordability period will terminate. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). Part 800 - Assumption © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 30 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION § 100-100.4-801 Grant Assumption (a) Death of a Grantee—Immediately upon notification to NMHC of a grantee’s death, the surviving grantee or a family member or representative shall submit a copy of the death certificate. (1) In situations where there exists a surviving co-applicant, that applicant may stay in the home for the duration of the grant affordability period. (2) If both grantees are deceased, NMHC may allow for a qualified heir to occupy the home upon probate court decree which shall be provided to NMHC. (i) This assumption exception is permitted where transfer of title is through the laws of descent provided that the heir is of legal age, meets all program eligibility requirements and has a full, undivided interest in the real property. The heir will be required to fill out an application and execute a grant agreement update and will be subject to a can income verification. (ii) The heir or heirs of the deceased will be responsible in maintaining the property as they await the probate decree. Once they are in receipt of the decree, they must submit it to NMHC so that NMHC will prepare an amendment to the grant agreement. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). Part 1000 Ethics § 100-100.4-1001 Conflict of Interest (a) Under no circumstances shall any immediate family members (whether by blood, marriage or adoption) the spouse, parent (including a stepparent), child (including a stepchild); brother, sister (including a stepbrother or stepsister), grandparent, grandchild, and in-laws of a covered person, elected or appointed officials of the CNMI government, NMHC’s Board of Directors, its officers, agents, and employees may participate in any CDBG-DR assisted projects or units including the procurement of materials, or have an interest in any contracted services, or be a beneficiary in any proceeds. Other provisions in 24 C.F.R. § 92.356 shall apply. Conflict of interest applies to covered persons who exercise or have exercised any functions or responsibilities with respect to activities assisted with CDBG-DR funds or who are in a position to participate in a decision-making process or gain inside information with regard to these activities. Covered persons may not obtain a financial interest or financial benefit from a CDBG-DR activity, or have a financial interest in any contract, subcontract, or agreement with respect to the CDBG-DR assisted activity, or the proceeds from such activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter. (b) Exceptions: Threshold requirements. Upon the written request of the participating jurisdiction, HUD may grant an exception to the provisions above on a case-by-case basis when it determines that the exception will serve to further the purposes of the CDBG-DR Program and the © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 31 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION effective and efficient administration of the participating jurisdiction’s program or project. An exception may be considered only after the participating jurisdiction has provided the following: (1) A disclosure of the nature of the conflict, accompanied by an assurance that there has been public disclosure of the conflict and a description of how the public disclosure was made; and (2) An opinion of the participating jurisdiction’s or state recipient’s attorney that the interest for which the exception is sought would not violate state or local law. (c) Factors to be considered for exceptions. In determining whether to grant a requested exception after the participating jurisdiction has satisfactorily met the requirements mentioned above, HUD will consider the cumulative effects of the following factors, where applicable: (1) Whether the exception would provide a significant cost benefit or an essential degree of expertise to the program or project which would otherwise not be available; (2) Whether the person affected is a member of a group or class of low-income persons intended to be the beneficiaries of the assisted activity, and the exception will permit such person to receive generally the same interests or benefits as are being made available or provided to the group or class; (3) Whether the affected person has withdrawn from his or her functions or responsibilities, or the decision-making process with respect to the specific assisted activity in question; (4) Whether the interest or benefit was present before the affected person was in a position as described in paragraph (c) of this section; (5) Whether undue hardship will result either to the participating jurisdiction or the person affected when weighed against the public interest served by avoiding the prohibited conflict; and (6) Any other relevant considerations. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). Part 1100 - Miscellaneous § 100-100.4-1101 Acronyms Reference Section [For Rehab and Reconstruction Program Policies and Procedures] (a) AIA—American Institute of Architects (b) AMI—Area Median Income (c) CD—Corporate Director (d) CDBG-DR – Community Development Block Grant Disaster Recovery © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 32 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION (e) CFR—Code of Federal Regulations (f) CNMI—Commonwealth of the Northern Mariana Islands (g) CPSC—Consumer Product Safety Commission (h) DCD—Deputy Corporate Director (i) DEQ—Department of Environmental Quality (j) DPW—Department of Public Works (k) EA—Environmental Assessment (l) GFE—Good Faith Estimate (m) HOME Program—U.S. HUD Homeownership Investment Partnerships Program (n) LEP—Limited English Proficiency (o) LMI—Low Moderate Income (p) MBE—Minority-Owned Business Enterprise (q) NAHA—National Affordable Housing Act (r) NEPA—National Environmental Policy Act (s) NMHC—Northern Marianas Housing Corporation (t) NTP—Notice to Proceed (u) PII—Personally Identifiable Information (v) PITI—Principal, Interest, Taxes, and Insurance (w) PJ—Participating Jurisdiction (x) PTI—Payment-to-Income Ratio (y) PTR—Preliminary Title Report (z) RER—Rehab Environmental Review (aa) RESPA—Real Estate Settlement Procedures Act © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 33 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION (bb) SCRA—Service Members Civil Relief Act (cc) SSI—Supplemental Security Income [Social Security] (dd) TCD—Time Certificates of Deposits (ee) TILA—Truth in Lending Act (ff) U.S. HUD—United States Department of Housing and Urban Development (gg) USDA RD—United States Department of Agriculture Rural Development (hh) USPAP—Uniform Standard of Professional Appraisal Practice (ii) VOE—Verification of Employment (jj) WMBE—Women-owned or minority-owned business enterprise History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023). § 100-100.4-1105 Definitions (a) Adjusted Gross Income (AGI): AGI is an individual’s total gross income minus specific deductions. Adjusted income is derived by subtracting any of the five allowed deductions that apply to household from the household’s annual (gross) income. For elderly or disabled households, deductions for the type of household, dependent childcare, medical and disability assistance expenses are allowed; family households may deduct dependent, childcare and disability assistance expenses. (b) Area Median Income (AMI): Calculated annual limits based on HUD-estimated median family income with adjustments based on family size used for demonstrating LMI beneficiaries in the program. May also be referred to as Area Median Family Income (AMFI) in other program documents. (c) Beneficiary: An individual, person, family or household receiving advantage or assistance from the CDBG-DR funding. (d) Builder/Contractor: (Used interchangeably) A person who contracts to reconstruct or repair houses and or supervise building operations. (e) Case Management: The collaborative process of providing services that include assessment, planning, facilitation, coordination and advocacy for reconstruction or © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 34 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION rehabilitation to individual homeowner applicants to ensure they fully understand the Program’s housing solutions, resulting in clear and transparent determination of eligibility, reconstruction or rehabilitation options, assistance award amounts, the construction management process, documentation and ongoing compliance requirements. Case Managers will work to decrease barriers for homeowners to participate in the program wherever possible. Case Workers will explain the Program’s solutions and provide information on the Reconstruction/Rehabilitation process in standardize formats. (f) Common Area Under Roof: The total area under the common roof is primarily interior, conditioned spaces and, for single-story homes is equal to the footprint of the house. The term is also synonymous with the eligible area. Exterior spaces such as detached porches and garages are considered ineligible areas. (g) Damage Assessment: A report resulting in a physical inspection of the housing unit to document damage from the event. The assessment must be conducted by a certified or licensed inspector and is required to specifically and clearly document storm-related property damage via photographic evidence and detailed narratives. Damage assessments must include a final estimated cost of repairs according to local code, an assessment of cost-effectiveness of each recommended activity (reconstruction or rehabilitation), mold remediation and the total amount of assistance needed to bring the home up to code at completion. (h) Demolition: The clearance and proper disposal of dilapidated building and improvement materials. (i) Duplication of Benefits: The amount determined by the Program that would represent financial assistance covering costs that have been received from another source for the same need. The Robert T. Stafford Disaster Assistance and Emergency Relief Act (Stafford Act) prohibits any person, business concern, or other entity from receiving financial assistance from CDBG-DR funding with respect to any part of a loss resulting from a major disaster as to which he/she has already received financial assistance under any other program or from insurance or any other source. A Duplication of Benefit amount determined by the Program would result in the reduction of an award amount. (j) Environmental Review: All qualified projects must undergo an environmental review process. This process ensures that the activities comply with National Environmental Policy Act (NEPA) and other applicable federal and territorial laws. 24 CFR Part 58 Environmental Review Procedures for Entities Assuming HUD Environmental Responsibilities as well as Related Federal Laws and Authorities Listings under 24 CFR 50.4 and 58.6 will be followed. (k) Estimated Cost of Repair (ECR): The report resulting from a damage assessment detailing the estimated project costs necessary to repair /or reconstruct the home to the minimum housing rehabilitation for mitigation and elevation efforts to reduce the impact of future storms. © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 35 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION (l) Federal Emergency Management Agency (FEMA): The agency of the United States Department of Homeland Security with the primary purpose of coordinating the response to a disaster that has occurred within the United States and that overwhelms the resources of local authorities. (m) FEMA-Designated High-Risk Area: Areas designated by FEMA as vulnerable to significant wind and/or storm surge damage and areas located in the 100-year flood zones. These areas will be identified during the environmental review process for each participating jurisdiction. (n) Flood Hazard Area: The land area covered by the floodwaters of the base flood is the Special Flood Hazard Area (SFHA) on NFIP maps. The SFHA is the area where the National Flood Insurance Program’s (NFIP’s) floodplain management regulations must be enforced and the area where the mandatory purchase of flood insurance applies. The SFHA includes Zones A, AO, AH, A l -30, AE, A99, AR, AR/Al-30, AR/AE, AR/AO, AR/AH, AR/A, VO, Vl-30, VE, and V. (o) Flood Insurance: The Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a) requires that projects receiving federal assistance and located in an area identified by FEMA as being within a Special Flood Hazard Areas (SFHA) be covered by flood insurance under the National Flood Insurance Program (NFIP). For property owners to be able to purchase flood insurance, the community must be participating in the NFIP. If the community is not participating in the NFIP, federal assistance cannot be used in those areas. (p) Floodplain: FEMA designates floodplains as geographic zones subject to varying levels of flood risk. Each zone reflects the severity or type of potential flooding in the area. ‘“100-year floodplain” - the geographical area defined by FEMA as having one percent chance of being inundated by a flooding event in any given year. “500-year floodplain” - the geographical area defined by FEMA as having a 0.2 percent change of being inundated by a flooding event in any given year. (q) Household: A household is defined as all persons occupying the same housing unit, regardless of their relationship to each other. The occupants could consist of a single family (including a family that consists of a single individual), two or more families living together, or any other group of related or unrelated persons who share living arrangements. For housing activities, the test of meeting the LMI National Objective is based on the combined income of the household. (r) Individual Mitigation Measures (IMM): Activities designed to mitigate and/or reduce risk beyond the pre-disaster condition of a housing unit when the activities are above and beyond federal, state, or local units, and the payment of flood insurance are not IMM activities. Examples of IMM activities include elevation above the base flood elevation level, or the addition of storm shutters, disaster proof windows, roof straps, etc. as long as those improvements are not required © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 36 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION to comply with local code requirements and did not exist on the housing unit prior to the disaster damage. (s) Low- to Moderate-Income (LMI) National Objective: Activities which benefit households whose total annual gross income does not exceed 80% of Area Median Income (AMI), adjusted for family size. Income eligibility will be determined and verified in accordance with 24 CFR Part 5 requirements using procedures as stated in the Technical Guide for Determining Income and rd Allowances, 3 Edition (HUD-1780-CPD). The most current income limits, published annually by HUD, shall be used to verify the income eligibility of each household applying for assistance at the time assistance is provided. (t) Major or Severe Damages: $8,000 or more of FEMA inspected real property damage or 1 foot or more of flood water on the first floor. Inspection documentation must be maintained in the project file (a copy of the FEMA inspection, or photographic evidence of the flood water damage). (u) Manufactured Housing Unit (MHU): A structure, transportable in one or more sections which in the traveling mode is 8 body-feet or more in width, and 40 body-feet or more in length, or when erected on site, is at least 320 square feet, and which is built on a permanent chassis designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air-conditioning, and electrical systems contained therein. (v) Minimum Housing Standards: Assisted properties will meet the following standards upon project completion: each living unit will be used and maintained individually, having access such that it is unnecessary to pass through any other living unit, will include utilities and a water supply and will meet the CNMI building codes in place at the time of assistance. Fixtures and finishes will be of “standard” and not “luxury” quality. (w) Mitigation: Improvements made to a property specifically to reduce the possibility of future property damage, personal and commercial hardship, as well as long lasting monetary burden. For example, creating a flood mitigation program such as an acquisition of at-risk flood-prone property/housing, and elevation of housing in high-risk floodplains are too visible and effective mitigation projects that can be taken to make residents and communities safe in the face of natural disasters. (x) Modular Home: A home built in sections in a factory to meet state, local, or regional building codes. Once assembled, the modular unit becomes permanently fixed to one site. (y) National Flood Insurance Program (NFIP): The National Flood Insurance Program aims to reduce the impact of flooding on private and public structures by providing affordable insurance to property owners, renters and businesses and by encouraging communities to adopt and enforce floodplain management regulations. (z) New Construction: The site preparation for, and the construction of, an entirely new residential structure in a location that did not previously contain a residential structure. © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 37 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION (aa) Reconstruction: Demolition and rebuilding of a residential structure, including a modular housing unit, on the same lot and in substantially the same footprint and manner as the previous housing unit (whether demolished with CDBG-DR assistance, or demolished prior to Program application). This activity also includes replacing an existing substandard site-built, modular housing, or manufactured housing unit (MHU). The number of units may not be increased, and the total square footage of the reconstructed structure may not be substantially increased beyond the original principal residence square footage. However, the number of rooms within a unit may be increased or decreased based on the applicant’s current household size. (bb) Rehabilitation: Repair or restoration of a storm-damaged housing unit to applicable CNMI building and construction codes, and minimum property standards for a residential dwelling. (cc) Single Family Home: A single unit containing any group of rooms located within a dwelling and forming a single habitable unit with facilities which are used or intended to be used for living, sleeping and cooking. A single-family home may be detached or attached to another single unit. (dd) Subrogation Agreement: An agreement executed by the homeowner beneficiary agreeing to repay any duplicative assistance if the homeowner beneficiary later receives other disaster assistance for the same purpose as disaster recovery funds already received. (ee) Substantial Damage: Storm damage sustained by a structure whereby the cost of restoring the structure to its pre-storm damaged condition would equal or exceed 50 percent of the market value of the structure before the damage occurred (44 CFR 59.1). Substantial damage includes properties that were fully destroyed by the storm events. A substantially damaged determination may be made by a Commonwealth government official or floodplain manager, or the determination may be made by the CDBG-DR Program based on the Estimated Cost to Repair. (ff) Uniform Relocation Assistance and Real Property Acquisitions Policies Act of 1970, as amended (Title 49 CFR Part 24) (42 U.S.C. 4601 et seq.) (URA): URA applies to all acquisitions of real property or displacements of persons resulting from federal or federally assisted program projects. The objective of the URA is to provide uniform, fair, and equitable treatment of persons whose real property is acquired or who are displaced in connection with federally funded projects. For the purposes of these guidelines, URA mostly applies to involuntary displacements from residential units (49 CFR Subpart B) and acquisition or multifamily damaged/occupied activities that require the relocation of tenants. Since participation in the Homeowner Reconstruction and Rehabilitation Program is voluntary, permanent relocation compensation is not available to the property owners. However, NMHC must assure that the Uniform Relocation Act requirements will be followed and that both displaced occupants and any current occupants if any of the project are identified. These occupants are entitled to advisory services, in the form of notices and counseling, moving and/or storage expenses, and coverage of all displacement costs for temporary or permanent relocation pursuant to formula and applicable Federal Register notices. The program will monitor displaced © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 38 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION and current tenants and maintain records from the inception of the project. Failure to do so can lead to unexpected and substantial costs and work delay. (gg) Demonstrable Hardship - A demonstrable hardship is a substantial change in an applicant’s financial situation that will prohibit or severely affect their ability to provide a minimal standard of living or the basic necessities of life including food, housing, clothing and transportation without causing economic distress well beyond mere inconvenience as shown by objective evidence. A demonstrable hardship must be occurring after the named storms. The demonstrable hardship must be of a severe, involuntary and unexpected nature. It must not be one that is generally shared by other applicants affected by the named storms. Examples of demonstrable hardships may include job loss, failure of a business, divorce, severe medical illness, injury, death of a family member or spouse, unexpected and extraordinary medical bills, disability, substantial income reduction, unusual and excessive amount of debt due to a natural disaster, etc. None of the listed examples above, individually or taken together, automatically establish a demonstrable hardship nor is the listing above exhaustive as there may be other factors relevant to the issue of demonstrable hardship in a particular case. If an applicant believes that they are in the state of demonstrable hardship and that the demonstrable hardship causes them to not comply with any of the program policies, they may present their existence of a demonstrable hardship to their case worker (housing or grant specialist) and the Program will evaluate on a case-by-case basis after review of all of the circumstances. Applicants claiming a Demonstrable Hardship shall be required to provide evidence of such claimed Demonstrable Hardship to the case worker. (hh) Not Suitable for Rehabilitation – properties where the cost of rehabilitation exceeds the after rehab appraisal and there is not a compelling historical or community justification to save the property. (ii) Urgent Need National Objective: An activity that addresses an urgent need, defined as a situation where existing conditions pose serious and immediate threat to the health or welfare of the community and are recent or recently became urgent. The Territory, along with any and all subrecipient (s), must document no funds are available and costs cannot be financed for the activities. The CDBG certification requirements set forth in 24 CFR 570.208(c) and 570.489(d) have been waived per 83 FR 5844. The Territory and the subrecipients must document how each activity, program. and/or project funded under this National Objective category responds to a disaster-related impact. (See 24 CFR 570.208(c) and applicable Federal Register Notices which are 83 FR 5844 and 83 FR 40314.) Modified: 1 CMC § 3806(g). History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). § 100-100.4-1105 Homeowner Rehabilitation © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 39 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION (a) Records Management NMHC will comply with 24 C.F.R. Part 5.2, Compliance with the Privacy Act, which requires the safeguarding of personally identifiable information (PII) by: (1) Minimizing the use of PII on program documents and records. (2) Providing access to PII only to those who require it for official business. (3) Securing PII appropriately for paper or electronic forms. (4) Training for data security and compliance with the Privacy Act will be provided to all employees and contractors (if applicable) as part of their on boarding process. In accordance with HUD regulations, as a grantee and recipient of CDBG-DR funds, NMHC follows the records retention as cited in 2 CFR Part 200.333-337, which includes financial records, supporting documents, statistical records and all other pertinent records are maintained for five (5) years after closeout of the grant between HUD and NMHC. Modified: 1 CMC § 3806(g). History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 40 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION APPENDIX A.1: Crosscutting Requirements 1.1 Crosscutting Requirements 1.2 Fair Housing The Fair Housing Act requires all grantees, subrecipients, and/or developers funded in whole or in part with HUD financial assistance to certify that no person was excluded from participation in, denied the benefit of, or subjected to discrimination in any housing program or activity because of their age, race, color, creed, religion, familial status, national origin, sexual orientation, military status, sex, disability or marital status. The Program complies with and enforces the Civil Rights requirements of Title I of the Housing and Community Development Act (HCDA) and the Fair Housing Law. Projects must also assess how planning decisions may affect members of protected classes, racially and ethnically concentrated areas, as well as concentrated areas of poverty; will promote the availability of affordable housing in low-poverty, non-minority areas where appropriate; and will respond to natural hazard-related impacts. Program staff will use demographic, geographic, and social vulnerability analyses to determine any positive or negative impacts to protected classes. Should a project present negative impacts, project scope or design will be re-assessed to mitigate such impacts. 1.3 Environmental Review Early environmental coordination must be completed to ensure effective implementation of all CDBG-DR Programs. CDBG-DR funding is contingent upon compliance with both local and federal environmental regulations. This includes compliance with NEPA and related environmental and historic preservation legislation and executive orders. In general, NMHC serves as the lead agency for purposes of NEPA. HUD’s Environmental Review process allows grantees to serve as the “Responsible Entity” to assume environmental review responsibilities under NEPA. As the grantee, NMHC serves as the Responsible Entity (through authorization from the Governor) as it relates to environmental review responsibilities under NEPA. Within NMHC, Environmental Review Staff will be responsible for performing environmental reviews and compiling the Environmental Review Records (ERR). Reviews are conducted either directly or using qualified environmental service contractors. NMHC ’s Corporate Director, as the Certifying Officer, is ultimately responsible with certifying that NMHC’s environmental reviews follow NEPA and HUD environmental regulations. Federal Register Notice FR-6182-N-01 authorizes recipients of CDBG-DR funds under the Appropriations Act to adopt any environmental review, approval, or permit performed by a Federal agency for the same project to satisfy responsibilities with respect to environmental review, approval, or permit. The other agency’s environmental review must cover all project activities funded by the HUD recipient for each project. NMHC will notify HUD in writing of its © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 41 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION decision to adopt another agency’s environmental review. NMHC will also retain a copy of the review in its environmental records. Further information concerning the specific HUD requirements for the adoption of other Federal agency environmental reviews can be found in the HUD Memorandum dated March 4, 2013, Adoption of FEMA and Other Federal Environmental Reviews Processing for Hurricane Sandy Supplemental Appropriation (H.R. 152) Activities. Additional information on the environmental review process in general is set forth in Section § 100-100.4-335, Environmental Review Procedures for Entities Assuming HUD Environmental Responsibilities (24 C.F.R. Part 58). 1.4 Labor Standards The Davis-Bacon and Related Acts (DBRA) applies to all federally-funded or assisted construction contracts in excess of $2,000. This may apply to projects that are fully or partially funded with CDBG-DR, including FEMA or FHWA match programs. In matched projects, only the scope of the CDBG-DR portion of the project are subject to crosscutting requirements DBRA requires all workers employed by contractors or subcontractors on CDBG-DR programs, be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with DBRA, as amended. DBRA also requires that workers on federally-assisted projects are paid not less than weekly. Wage information for labor under CDBG-DR programs will be tracked in detail by both NMHC and relevant Implementing Partners and subrecipients throughout the life of the Program. Compliance for this requirement may be tracked in the following ways:

1. Additional NMHC Program staff hired to track wages and verify contractor and agency compliance
2. External contractor hired by NMHC to track DBRA compliance
3. Enhanced TA provided to Implementing Partners to track DBRA compliance Davis Bacon applies to the rehabilitation of residential properly only if the property contains eight (8) or more units under common ownership, on same or contiguous lots, or with common financing, Residential property that contains seven (7) or fewer units is exempt. Although the statute refers to the rehabilitation of residential properly, this exemption has been interpreted to include the new construction of residential properly containing seven (7) or fewer units. Typically, single-family homeowner properties are excluded under this exemption. Procedures for this process are currently under development and will be incorporated in a future update to this document. For prime contracts in excess of $100,000, contractors and subcontractors must also, under the provisions of the Contract Work Hours and Safety Standards Act, as amended, pay laborers and mechanics, including guards and watchmen, at least one and one-half times their regular pay for all hours worked over 40 in a work week. Additionally, NMHC must follow the reporting requirements per HUD and U.S. Department of Labor (DOL) regulations. This requirement also © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 42 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION extends to NMHC subrecipients, Implementing Partners, and contractors. The Fair Labor Standards Act of 1938 (FLSA), as amended, establishes the basic minimum wage levels for all work and requires the payment of overtime at the rate of at least one and one-half times the basic hourly rate of pay for hours worked in excess of 40 per week. These labor standards are applicable to the entire construction contract whether or not CDBG-DR funds finance only a portion of the project. 1.5 Limited English Proficiency Federal Executive Order 13166 requires NMHC and all satellite offices, programs, subrecipients, contractors, subcontractors, and/or developers funded whole or in part with CDBG-DR financial assistance to ensure fair and meaningful access to programs and services for families and individuals with Limited English Proficiency (LEP) and/or deaf/hard of hearing. Compliance with this requirement is detailed in NMHC’s Language Action Plan (LAP) and will be coordinated and tracked by the Monitoring and Compliance division at NMHC. Depending on the program, NMHC, Implementing Partners, sub-recipients, and subcontractors will share the following expectations to comply with this Executive Order:

1. Document Translation: All documents defined as “vital documents” will be translated into Chamorro or Carolinian by NMHC, Implementing Partners, and sub-recipients. A “vital document” is defined as a document that includes information regarding eligibility requirements, applications and instructions, program eligibility determinations, and appeals procedures. NMHC may aid ensure this requirement is met.
2. Where required, seek feedback from the community the project serves (advocacy groups serve vital role). Language maps provided in the Language Action Plan will be used to determine the project’s location and subsequent language context and if proactive LEP outreach will be required. These maps will be included as part of the Project Assessment Form used by NMHC to review the eligibility, priority level, and impacts of a potential project. 1.6 Minority and/or Women-Owned Business Enterprises The Federal Executive Order 12432 guidelines require selected federal agencies to promote and increase the utilization of Minority-Owned and Women-Owned Business Enterprises (M/ WBEs). Following procurement guidelines under 2 CFR 200.321, NMHC must make efforts to ensure that all subrecipients, contractors, subcontractors, and/or developers funded in whole or in part with HUD CDBG-DR financial assistance encourage participation in contracts and other economic opportunities by small and minority firms, women-owned business enterprises (WBEs), and labor surplus area firms whenever possible. NMHC will accept a MWBE certification from another state, local or regional, DPW, SBA HUB Zone, SBA 8-A certification (economically disadvantaged and 51% locally-owned), and other eligible certification processes. Documentation and goals regarding M/WBE percentages and reporting will be determined in the contracting © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 43 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION agreements. 1.7 Section 3 Economic Opportunities Section 3 is triggered when the award of CDBG-DR funds for new construction and rehabilitation projects creates the need for new employment, contracting, or training opportunities, and the project or contract exceeds $200,000.Section3oftheHousingandUrbanDevelopmentActof1968isto“ensurethatemploymentandothereconomicopportunitiesgeneratedbycertainU.S.DepartmentofHousingandUrbanDevelopment(HUD)financialassistanceforhousingandcommunitydevelopmentprogramsshall,tothegreatestextentfeasible,bedirectedtolowandverylowincomeindividuals,especiallyrecipientsofgovernmentassistanceforhousingandtobusinesseswhichprovideeconomicopportunitiestolowandverylowincomeindividuals.”TheSection3programrequiresthatrecipientsofHUDCDBG-DRfunds,tothegreatestextentfeasible,provide(a)employmentandtraining,and(b)contractingopportunitiesforlow-orvery-lowincomeresidentsinconnectionwithconstructionprojectsintheirneighborhoods.Italsospecificallyencourageseconomicopportunitiesforhouseholdswhoarerecipientsofgovernmentassistanceforhousing.NMHCandalladministeringentitieswillfollowandrequirerelevantcontractorstofollowSection3requirementsincontracting.Section3appliestotheCNMI,asrecipientofHUDfunding,aswellastosubrecipientsorImplementingPartners/Sub-recipientsreceivingHUDfundingexceeding$200,000. Whenever any portion of HUD funding is invested into projects involving housing construction, demolition or rehabilitation, commercial/private improvements for economic development, or other public construction (e.g., roads, sewers, community centers, and public facilities), the requirements of Section 3 apply. In conjunction with construction activity, Section 3 applies to projects that are fully or partially funded with CDBG-DR assistance, including projects that are financed in conjunction with territory, local, or private matching or leveraged funds, provided that the Section 3 monetary threshold requirements are met. In particular: • In conjunction with construction activities, Section 3 applies to contractors or subcontractors if the total project or contract amount is $200,000 or more. Once it is determined that Section 3 applies to a project, the requirements apply to all contracts for construction work arising in connection with that project including those not funded with CDBG-DR assistance. Contractors or subcontractors are required to comply with the Section 3 regulations in the same manner as the Commonwealth; and • “Section 3-covered contract” includes professional service contracts, provided that the work to be performed is generated by the expenditure of funds in furtherance of Section 3 covered work (e.g., housing construction, housing rehabilitation, and other public construction), arising relating © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 44 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION to construction projects. Professional service contracts that may constitute Section 3-covered contracts include construction contract oversight, engineering, architectural, environmental and property evaluation, construction progress and draw inspections, and prevailing wage labor compliance. Contracts with contractors that require advance degrees are not required to report labor hours. The regulations pertain all covered projects and include the following reporting requirements: • All project labor hours • All Section 3 worker labor hours • All Targeted Section 3 labor hours HUD as established the following benchmarks for all covered contracts: • Section 3 workers - 25% of total labor hours • Targeted Section 3 workers - 5% of total labor hours When NMHC awards CDBG-DR funds to other governmental departments, nonprofit organizations, subrecipients or other funded entities, NMHC will require they document how reasonable attempts were made to reach numerical goals set forth at 24 CFR Part 135.30. NMHC will inform its Implementing Partners and other funded entities of the requirements of Section 3, including the language required to be inserted into all construction-related contracts, assist them and their contractors with achieving compliance, and monitor their performance with respect to the Section 3 objectives and requirements. Implementing Partners/Sub-recipients will receive training on this requirement and methods of compliance, technical assistance from Program staff, and continual monitoring from NMHC. Currently, a Section 3 Plan is under development, the details of which will be included in an update to this manual. 1.8 System for Award Management (SAMs) SAM is the federal System for Award Management and is a requirement for doing business with the U.S. government. All vendors are required to register in SAM in order to be awarded contracts under the CDBG-DR program. Vendors are required to complete a one-time registration to provide basic information relevant to procurement and financial transactions. Vendors must update or renew their registration annually to maintain an active status. 1.9 Uniform Relocation and Real Property Acquisition Act (49 CFR 24) The Uniform Relocation Assistance and Real Property Acquisition Act (URA), is a federal law that establishes minimum standards for federally funded programs and projects that require the acquisition of real property (real estate) or displace persons from their homes, businesses, or farms. The URA’s protections and assistance apply to the acquisition, rehabilitation, or demolition of real property for federal or federally funded projects. The phrase “program or project” is defined in 49 CFR Part 24 as, “any activity or series of activities undertaken by a federal agency or with federal financial assistance received or anticipated in any phase of an undertaking in accordance with the © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 45 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION federal funding agency guidelines.” The objectives of the URA are: • To provide uniform, fair and equitable treatment of persons whose real property is acquired or who are displaced in connection with federally funded projects; • To ensure relocation assistance is provided to displaced persons to lessen the emotional and financial impact of displacement; • To ensure that no individual or family is displaced unless decent, safe, and sanitary (DSS) housing is available within the displaced person’s financial means; • To help improve the housing conditions of displaced persons living in substandard housing; and, • To encourage and expedite acquisition by agreement and without coercion. 49 CFR 24.101(c)(1) provides that the subpart B requirements also apply to the acquisition of permanent and/or temporary easements necessary for the project. However, 49 CFR 24.101(c)(2) provides an exception for the acquisition of temporary easements which exclusively benefit the property owner. 1.10 Voluntary (Optional) Relocation Assistance NMNC intends to provide voluntary relocation assistance to homeowners who must vacate their homes while repairs or reconstruction occur. Refer to the RARAP policy for details on how this program will be implemented and administered. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021). © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 46 of 81

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION APPENDIX A.2: Construction Standards NMHC’s CDBG-DR Written Rehabilitation Standards shall detail the methods, materials, and requirements that the housing must meet upon completion of rehab, including all of the following: (1) Exigent Health and Safety (EHS). Identifying all life-threatening deficiencies that present a direct threat to life or well-being, e.g., that are likely to cause severe injury or reduction in physical or mental ability. These EHS life-threatening deficiencies include: locked emergency/fire exit egress, missing/broken electrical cover plates/switches/outlets, inoperable smoke detectors, and exposed wires/missing covers. See Attachment B. (2) Major Systems. Requiring that, upon project completion, each major system, as defined by federal regulation, had a remaining useful life of one (1) year, or for a longer period as specified by NMHC, or the major system was rehabilitated or replaced as part of the rehabilitation. Major systems are: structural support; roofing; cladding and weatherproofing (e.g., windows, doors, siding, gutters); plumbing; electrical; and heating, ventilation, and air conditioning. For rental housing, the participating jurisdiction’s standards must require the participating jurisdiction to estimate (based on age and condition) the remaining useful life of these systems, upon project completion of each major systems. For multifamily housing projects of 26 units or more, the participating jurisdiction’s standards must require the participating jurisdiction to determine the useful life of major systems through a capital needs assessment of the project. For rental housing, if the remaining useful life of one or more major system is less than the applicable period of affordability, the participating jurisdiction’s standards must require the participating jurisdiction to ensure that a replacement reserve is established and monthly payments are made to the reserve that are adequate to repair or replace the systems as needed. For homeownership housing, the participating jurisdiction’s standards must require, upon project completion, each of the major systems to have a remaining useful life for a minimum of one (1) year, or the major systems must be rehabilitated or replaced as part of the rehabilitation work. (3) Lead-based Paint. NMHC’s standards must conform with HUD’s lead-based paint requirements at 24 CFR part 35. (4) Disaster Mitigation (if applicable). Require the property to meet the disaster mitigation requirements, e.g., housing to be improved to mitigate the impact of potential disasters (e.g., earthquake, hurricanes, flooding, and wildfires) in accordance with State and local codes, ordinances, and requirements such as the 2018 International Building Code or most current building code adopted by the CNMI Department of Public Works Building Safety Office, zoning laws (note: zoning is currently applicable to Saipan only), International Building Code, etc. (5) State and Local Codes, Ordinances, and Zoning Requirements. NMHC’s standards must require the housing to meet all applicable State and local codes, ordinances, and requirements in accordance to the 2018 International Building Code or most current building code adopted by the CNMI Department of Public Works Building Safety Office, zoning laws (note: zoning is currently applicable to Saipan only), International Energy Code, or, in the absence of a State or local building code, the International Building Code.

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION (6) Uniform Physical Conditions Standards. NMHC’s standards must reflect upon completion, the CDBG-DR-assisted project and units will be decent, safe, sanitary, and in good repair as described in 24 CFR 5.705. HUD will establish non-life threatening and minimum deficiencies that must be corrected under NMHC’s standards based on inspectable items and inspected areas from HUD-prescribed physical inspection procedures (Uniform Physical Conditions Standards) pursuant to 24 CFR 5.705. See Attachment B. GENERAL NOTES:

1. Scope Verification. The contractor shall field verify locations, sizes, and quantities of work required for the project. Any quantities provided by NMHC need to be field verified for accuracy and exact installation requirements. The contractor is responsible for coordinating with an in-house or third-party Architectural and Engineering (A&E) firm for their project design, proposal, and scope of work for review and certification as required.
2. Tools, Material, and Equipment. The contractor will supply all tools, materials, and equipment required to perform the Scope of Work unless otherwise specified.
3. Permits, Inspections, and Testing. Contractors and Subcontractors shall be responsible for all permits including but not limited to, the Saipan Zoning Board, the Bureau of Environmental and Coastal Quality (BECQ), and the Department of Public Works (DPW), inspections, testing, fees and licensing as pertaining to the law, ordinances, and regulations and as required to complete their respective Scopes of Work in this Agreement. The contractor shall pay for the entire cost of any remedial work resulting from a failed inspection.
4. Taxes. The contractor shall be responsible for all federal, state, and local taxes imposed directly or indirectly for its Services required to fill this Agreement.
5. Insurance. The contractor shall provide and maintain General Liability and Worker’s Compensation insurance throughout the Term of this Agreement and Project duration. The contractor shall provide certificates of insurance or other acceptable evidence of insurance (i.e., payment and performance bond) in the amount of 100 percent of the rehabilitation contract sum upon execution of this Agreement.
6. Clean-Up. The contractor is responsible for daily cleanup of all areas where work is performed and disposal of debris. NMHC PROJECT PROPOSAL STANDARD REQUIREMENTS: (a) Contractors and/or A&E firms are to conduct assessments of the client’s existing home and property condition, existing home structural condition, existing plumbing and drainage system conditions, and existing electrical condition. The contractor and/or A&E firm will also need to verify the home’s existing power pole drop line and water meter locations for planning purposes and reference in the scope of work development.

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION Also, the contractor will identify any potentially life-threatening conditions to include but not limited to: • Lead-Based Paint • Asbestos • Mold • Structural issues/failures (b) The contractor and/or A&E firm is responsible for securing as-built measurements of the home and project site for conversion to AutoCAD format for planning, layout renovation, and development of the rehabilitation scope of work. (c) Only contractors on NMHC’s approved contractor listing are eligible to work on home grant clients’ new or rehab home projects. Note: Interested contractors not currently listed on NMHC’s contractor listing must first submit all documents as listed on the request for qualifications notice to be added to the contractor listing and become eligible to work on housing projects. (d) The contractor is responsible for applying for all permits necessary for a new house construction proposal or renovation, extension, rehab project for a regular home or disability home project for the record. (e) The contractor is responsible for having all project design drawings reviewed and certified by a licensed A&E firm. The contractor will utilize the certified drawings to apply for the DPW Building Permit as required. (f) The contractor is responsible for complying with all DPW Building Safety Code requirements including but not limited to: inspections, report documentation, and testing reports throughout the construction process for new, rehab, renovation home projects for regular home or disability home construction, extensions, or house conversions to disability home compliance projects. (g) The Contractor is responsible for gathering and maintaining all project records and documentation required by DPW for the issuance of the Certificate of Occupancy upon project completion. Copies of all reports are also to be submitted to NMHC. (h) The contractor is required to conduct a pre-final inspection of the project with the homeowner and NMHC officials, before final inspection with DPW Building Safety inspectors, to test all the building systems and finishing work. (i) Any major systems, as defined below, installed by the contractor shall have a warranty of no less than one (1) year. Such warranty shall be stipulated on the rehabilitation contract between the contractor and the homeowner. Should it be determined at any time during the 1-year

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION warranty period that a major system failure was a result of the work completed by the contractor then the contractor will be obligated to repair the failure. (j) All other rehabilitation work performed by the contractor shall have a warranty period of no less than 1 year, beginning on the date of the Certificate of Occupancy issued by the Department of Public Works. Such warranty shall be stipulated on the rehabilitation contract between the contractor and the homeowner. Major systems as defined by 24 CFR 92.251(b)(1)(ii)] – Structural support; roofing; cladding and weatherproofing (e.g., windows, doors, gutters); plumbing; electrical; and heating, ventilation, and air conditioning. ZONING REFERENCES AND REQUIREMENTS: (a) Contractors are required to apply for all zoning permit(s)/clearance(s) required for a home renovation or rehabbing project, including any new home extension projects. Contractors will need to ensure full compliance with all zoning setback requirements. Example: For any extension in the front of the house, the extension should be 15’ feet away from the front property line to the new front wall extension. For the left or right-side, the zoning setback requirements are 10’ feet away from the boundary line to a new building wall extension. And for the rear setback, zoning requires 20’ feet clearance away from the rear property line. Any failure to meet these requirements may result in the home client having to pay for zoning variance fees. (b) Should a new septic tank and leaching field be required, the DEQ office setback requirements are a minimum per regulations, at any angle from the property line for both the septic tank and leaching field. Note: New septic tanks should be constructed per regulations, from the house. DEQ also has regulations on Septic tanks and leaching fields that need to be adhered to. SITE WORK: (a) All debris including abandoned vehicles, scrap material, metal objects, trash, vegetation, and other objects that pose a safety and/or health threat, as determined by the local jurisdiction or person qualified to make such a determination, must be removed from the property before the start of construction. (b) Any identified lead-based paint hazards must be abated by the contractor per the guidelines outlined in 24 CFR 92.251(b)(1)(iii). (c) Any ground-level hazards i.e. potholes around the home must be backfilled to finish grade elevation to prevent tripping hazards.

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION (d) If required, any existing boundary fencing around the house/project site that can be repaired must be restored to a safe condition. If the fencing poses safety and/or health hazard then it must be immediately removed from the project site. Note: Repairing of an existing boundary fence does not alleviate the contractor from installing the required protective hoarding around the house/project site. PEST CONTROL: (a) Termite control shall be applied by a reliable and licensed termite control company familiar with local soils and termite control conditions and licensed by the Division of Environmental Quality.

1. The contractor shall apply for all permits necessary for pest treatment. (b) The contractor shall attain a certification of 2-year warranty and retreatment should ground nesting of termite occurs within the 2 years at no cost to the homeowner. (c) The contractor shall apply termite treatment for any new construction, renovation, rehab, and extension project as required. FOUNDATIONS: (a) Footings will be designed for an assumed allowable soil bearing capacity of 3,000 PSI (b) All structural fill beneath footings and slab-on-grade shall be placed 12 inches thick on 8- inch maximum layers. Foundation Backfill will be compacted to 95% compaction maximum dry density. (c) Any soft spots encountered during excavation operations for foundations shall be over excavated till hard dirt limits, then backfilled with suitable material and properly compacted to 95%. (d) Compaction tests for the foundation shall be required and paid for by the homeowner if not included in the contract after receiving the compaction test result for the record. The tests must be performed by a licensed soil testing firm. CONCRETE AND REINFORCEMENT:
2. All concrete shall develop a minimum compressive strength at the end of 28 days as follows: • Foundation 3,000 PSI Max slump @4 inches • Beams, Walls & Columns 3,000 PSI Max Slump @4 inches • Suspended Roof Slab 3,000 PSI Max Slump @4 inches

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION • Slab on Grade 2,500 PSI Max Slump @5 inches • Sidewalk / Pathway 2,000 PSI Max Slump @5 inches • Driveway & Car Parking 3,000 PSI Max Slump @4 inches Note: For a concrete flat rooftop on the middle portion, pour 7½” thick concrete slab, sloping to all corners of the house’s downspouts or drainage passageways at 5” finish. A 2½” slope to be applied in the middle of the rooftop to prevent water ponding on the rooftop. TESTING:

1. Compression Tests: All concrete placed for foundations, structural slabs, beams, and columns shall have a minimum of three cylinders taken for every 50 cubic yards of concrete placed or for any one concrete placement. Concrete cylinders shall be tested for compressive strength at a testing laboratory. Two compression tests shall be performed at 14 days and one compression test at 28 days for each set of three cylinders taken.
2. Slump tests @ 5”- 6”: A slump test shall be taken in the presence of the architect or engineer for each batch of concrete delivered to the job site and shall be taken before placing any concrete. In the event a slump test fails, the entire batch of concrete shall be rejected, including removal of concrete already placed, without cost to the homeowner for the record.
3. Additional water to concrete mixture batch at the job site shall not be permitted.
4. All materials and workmanship shall conform with the 2018 International Building Code requirements for residential projects. All contractors must comply with the code for receiving the finished project’s Certificate of Occupancy. MAINTAIN MINIMUM CONCRETE COVERAGE FOR REINFORCING STEEL AS FOLLOWS:
5. For concrete cast against and permanently exposed to earth @ 3”
6. Concrete exposed to earth or weather no. 5 rebar or smaller @ 1 ½”
7. Concrete not exposed to earth or in contact with ground slabs & walls @ ¾”
8. Concrete not exposed to earth or in contact with beams & columns @ 1 ½”
9. Reinforcement of new walls and columns shall be dowelled to supporting footings, beams, columns and walls with bars of the same size and spacing as vertical and horizontal bars STRIPPING OF FORMS AND SHORES:
10. For foundation forms, it can be removed after 24 hours after pouring curing time. For Walls and Columns forms, they should be removed after 48 hours minimum. For concrete roof beams

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION and roof slabs, forms should be removed after 14 days minimum. All forms can be removed after 28 days of the date. 2. All concrete shall be kept moist for a minimum of 7 days immediately after placing by the use of wet burlap, fog spraying, curing compounds, and other approved methods an architect or engineer. 3. No heavy construction load is permitted more than 50% of the specified design load within the 28 days of concrete placement. In cases, do not overload more than the specified design load after the 28 days of placement. No concentrated load is permitted except over supporting columns and walls. CONCRETE BLOCK WALL:

1. Masonry units shall have a factory’s minimum compressive strength of 1,000 PSI.
2. Masonry units shall be sound, dry, clean, and free from cracks when placed in the structure.
3. Where masonry unit cutting is necessary, all work should be neat and true.
4. The maximum aggregate size shall be 3/8” for pouring CMU block cells.
5. Concrete block units shall be laid in the common bond pattern unless otherwise shown.
6. For wall thickness 4”, 6” and 8”, use No. 4 vertical rebars @ 16” on center typical.
7. Horizontal bars are placed at every two layers of blocks all around w/No.3 rebars typical.
8. For all corner walls, vertical bars install three No.5 vertical rebars on each side from the corner out @2’ feet typical.
9. For all intersection walls, vertical bars install four No.5 vertical rebars one in center of T and one on each side out @2’ feet typical.
10. For all end walls install two No.4 vertical bars w/No.3 bars C-ties @ 12” O.C. typical. Note: Any new door or window to be opened up on an existing concrete house wall, construct a new lintel beam at 12” out from each side on top by 8” height by wall thickness typical and new 4” thick concrete sidings on both sides of window edging typically for door openings.
11. “Dur-O-Wal” reinforcement shall be continuous around all walls, corners, and intersections and shall lap @ 12” minimum splicing for all vertical rebar extension for all walls to roof beam level as required.
12. All CMU block cells shall be solidly filled with cement grout. Grout all cells below slab on grade. Typical unless noted otherwise.
13. When plastering roof beams and columns. Apply concrete bonding into your cement mixture and paintbrush the portions before plastering.
14. Any hollow sound on existing and newly plastered walls found on walls to be chipped removed out and re-plaster all hollow walls detected to its solid sound plaster condition. Note: To be inspected and verified for approval for the record.

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION 15. For painted finish. Apply muriatic acid on newly plastered walls. Wash down, dry up before applying two primer coats on newly plastered walls, and then apply two coated final painting finish. For existing concrete wall paint scrape and water blast all bubbling peeling out paint on walls, ceilings, etc. Apply one primer coat on existing dirty/stained washed walls before applying its new final paint color. 16. Any hollow sound on the existing floor, wall and counter ceramics, chip out and remove. Install new floor, wall, and counter ceramic with no hollow sound on the ceramic finishing work. Note: To be inspected and verified for approval for the record. CONCRETE WALL AND CONCRETE ROOF STRUCTURE EXTENSION: (a) For rehabbing an existing semi-concrete house to construct a new concrete roof structure on top, the contractor will construct new 8”x12” concrete columns with a 10” thick foundation concrete pouring by 30” square column footings. If the existing house is longer than 20’, the contractor will construct another new column in between or in the middle for more structural support. The specifications are only for a house renovation with concrete roof ceiling height at 8’ to 9’ flooring finish to roof ceiling finish. For a 10’ roof ceiling or over, the contractor will construct a 12”x12” size concrete columns for all with a 10” thick concrete pouring by 36” square column footings. Rebar sizes are standard sizes approved from its building permit plans as specified. See construction drawings for rebar sizes and dimensions. Note: To refurbish/renovate a damaged roof on an existing semi-concrete house, replacing or repairing a tin roof will not be accepted as a rehab project. All eligible applicants must have their rooftop converted solid concrete mitigate any future disasters as outlined in 24 CFR 92.251(b)(1)(vi) and to comply with the rehab program requirement for homeowner insurance. Note: The existing CMU walls to be used as existing concrete wall partitions. Do Not depend on the existing wall as wall bearing walls for the record. It will only serve as a non-bearing wall. The new concrete columns are designed to carry the new 5” thick concrete roof slab with new 17”x8” or 10” concrete roof beams that are specified in the structural construction drawings for the record. PLUMBING STANDARD NOTES:

1. Install a new ¾” ball valve at the existing CUC water meter box facing the house. Secure with cover level to the existing grade. (For emergency shut off valve).
2. Run a new ¾” PVC cold water line into the house project. (Following the Plumbing Floor Plans and Specifications). NOTE: Ensure PVC pipes are stored properly, covered out of the sunlight. Pipes that are left out, uncovered can degrade which will shorten their lifespan.
3. For cold water lines, use PVC water pipes and for hot water lines, use CPVC water pipes.

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION 4. For the waste line, use ABS pipes for all drainage waste line. 5. Make sure that the electric water heater has a Pressure Relief valve down at 12” above ground level. This is to ensure that should the water heater tank be over-pressured; the valve opens to relieve the pressure in the tank and prevent tank explosion. 6. Check slopes of waste/soil lines. Pipping below 3” diameter shall be sloped at ¼” per foot. Piping over 3” shall be sloped at 1/8” per foot for the proper sloping waste line to the septic tank as required in the plumbing code. 7. Lay new water lines higher than sewer/waste lines to prevent contamination. Provide sand cushion around any plumbing piping. Keep water lines away from soil/sewer lines if in the same trench by at least 24”. 8. Install new air chambers for all fixture supply piping. Use 18” air chamber, one size larger than branch piping. 9. Testing of water lines pressures for 100 PSI for one hour without any drop in water pressure. Retest all leaky joints. Submit all test results together with the rest of the closing reports. 10. Static testing of waste lines and vent lines to 10’ static head for at least one hour. Retest all leaky joints when detected until it has no more leak for the record. Submit all test results together with the rest of the closing reports. 11. Always check that the flow of the waste/soil lines is correct. The vent line is directed to the rooftop at 18” above the roofline. For sewer line, use long sweep elbow or tee. 12. Whenever a water closet is installed, make sure there is a minimum 2” vent thru roof at 18” above the rooftop. 13. Provide floor drains on 2nd or higher floors for housekeeping. 14. Clearwater lines and waste lines away from foundation footings, columns, and beams. 15. Do not install/embed water lines in concrete. Provide piping chase or sleeves. 16. Provide shut off valves at strategic points in the water lines. 17. For propane gas lines, use galvanized piping for LPG gas lines. Encased LPG piping in PVC piping, if piping is installed underground. Use a One bigger size PVC pipe to sleeve the galvanized pipe inside before pouring under the slab.

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION 18. Always provide strap around water heaters, gas tanks to prevent it from moving during an earthquake. 19. Provide cushion sleeves around any piping penetrating through concrete walls and floors. 20. Provide 36” standpipe for washer and P-trap shall be above ground readily accessible. Do not install P-trap under the ground. 21. Provide P-traps for floor drains, shower drains, kitchen sinks, and lavatories. 22. Provide ground or floor cleanouts at every 50’. Provide cleanouts to every angle as required in the plumbing code for preventive maintenance. 23. Do not install sewer lines in the same trench as water lines. Where there is crossing, concrete encase the sewer line 10’ at 10” around the line to the end of crossing. Sewer lines should be always located deeper than the water lines in a trench. 24. For a long stretch of hot water piping lines, provide a loop comprising of elbows to offset expansion for safety purposes. 25. Provide 2” high overflow piping above a flat rooftop in addition to roof drains. 26. Provide supports for piping under slabs. 27. Provide vent piping 10’ away horizontally from any window or door. Preferably, install a vent to terminate above the roof at 18” above finish rooftop. 28. The contractor shall be responsible for chipping existing concrete floors and walls to install new plumbing piping. The contractor is responsible also to restore floor slabs and walls to the original condition. These are part of the rehab and renovation work process. All extra work shall not be an additional cost to the homeowner. Everything should be included in the contract. 29. Standard sizes for water, soil/waste, and vent lines for each fixture are as follows: Fixture: Cold Water: Hot Water: Soil/Waste: Vent: Floor Drain 2” ABS 2” ABS Water Closet ½” PVC 3” or 4” ABS 2” ABS Urinal ¾” PVC 2” ABS 2” ABS Kitchen Sink ½” PVC ½” CPVC 2” ABS 2” ABS Lavatory ½” PVC ½” CPVC 2” ABS 2” ABS Shower ½” PVC ½” CPVC 2” ABS 2” ABS Dirty Kitchen Sink ½” PVC ½” CPVC 2” ABS 2” ABS

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION Note: Always tighten, secure, brace, and clamp all wall-mounted fixtures properly. Provide concrete splash boxes for drainage downspouts. 30. ENERGY STAR Heat Pump Water Heaters (HPWH) are required for domestic water heating equipment with a minimum UEF (Uniform Energy Factor) of 3.75. HPWH must have sufficient air circulation around their installed location to meet the manufacturer’s specifications, or ductwork must be installed to provide sufficient air, again, per manufacturer’s specifications. An approved alternative to HPWHs would be the most energy-efficient in-stock water heater. ELECTRICAL STANDARD NOTES:

1. The contractor is responsible for obtaining permits for temporary power hook up including applying and paying hookup and monthly use fees for their use for the project without cost to homeowners for the record.
2. GFCI outlets to be installed in any kitchen counter at 4’ min. away from the sink.
3. Use the GFCI outlet for the restroom wall outlet. Do not use a regular outlet.
4. Use the GFCI outlet for the outside wall outlet with a weatherproof cover typical.
5. Design for outlets should be limited to 8 outlets for a 20-amp single pole breaker.
6. Design for lights should be limited to 8 lights for a 20-amp single pole breaker.
7. Provide at least one outlet in the hallway for housekeeping use.
8. Installing new electrical boxes shall include an adapter, lock nut, and bushing. Bushing shall be insulated.
9. The service entrance conduit shall be galvanized steel per CUC requirements.
10. Conduits underground shall be PVC.
11. For any exposed conduits it shall be a rigid aluminum or galvanized steel.
12. Conduits inside building in-ceiling or exposed may be electrical metallic tubing-EMT.
13. Minimum size for homerun shall be ¾” conduit for easy pulling.
14. For computer circuits, make sure the ground wire is isolated.

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION 15. All power circuit conduit shall have ground wire. 16. Follow electrical wires standard color-coding per National Electrical Code. For residential rehab, projects shall be a 120/240 Volt system, 1 phase: Phase A-color Black Phase B-color Red Neutral color: White Ground color: Green Note: The neutral and grounding colors shall be the correct color wire throughout without any exception. Avoid color coding with electrical tape. Electrical hazard. 17. Splicing shall be the plastic pressure type connectors. For larger wires, splicing shall be terminal lugs type. 18. Any conduit crossing roadways or in traffic areas shall be embedded in concrete, or located per NEC. The minimum conduit depth is 18” to top of the conduit. 19. Separate communications conduits from power conduits by at least 12” laterally. The minimum conduit size shall be ¾” conduit. Provide pull wire in every empty communications conduit extending 12” at both ends for computer and TV. line connections. 20. Contractor to coordinate with telephone/internet company to seek the advice of where hand holes or access panels may be located for ease of pulling and service. 21. Be sure to apply rust spray paint to all electrical boxes before embedding them in concrete. 22. Position outlets on a horizontal orientation. 23. Where to put new light switches, place them right after opening a door on the closest wall at 4’ height typical. 24. Light switches to be set on a vertical position at 4’ height center of electrical boxes. 25. Conduits underground outside the house building shall have warning tape at 12” below grade. 26. Maximum bends in conduits shall be limited to three (3). 27. Standard Breaker amp size and its proper wire size use to prevent power shortage and fire for health and safety measures. 28. For reference, a 20-amp circuit breaker has a total of 1,920 Watts. 29. For a single-pole 20-amp circuit breaker, use No. 12 solid wires. Separate outlets and lights circuit breaker switch. 30. Use No. 12 solid wires for receptacle outlets. A limit of 8-outlets per 20-amp single pole circuit breaker switch.

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION 31. Use No. 12 solid wires for light fixtures. A limit of 8-lights per 20amp single pole circuit breaker switch. 32. Use a 20-amp single pole circuit breaker with a No. 12 solid wire. For 110 volts air conditioning separately, use a ½” electrical conduit from the panel box to outlet location. 33. Use a 30-amp double pole circuit breaker with a No. 10 solid wire. For 220 volts air conditioning separately, use a ¾” electrical conduit from the panel box to the outlet location 34. Use a 50-amp double pole circuit breaker with No. 6 stranded wires in a 1” electrical conduit for electrical range. 35. Use a 20-amp single pole circuit breaker with a No. 12 solid wire. For a refrigerator separately, use a ½” electrical conduit from the panel box to outlet location. 36. Use a 20-amp single pole circuit breaker with a No. 12 solid wire, for computer station separately, use a ½” electrical conduit from the panel box to outlet location. 37. Use a 30-amp double pole circuit breaker with a No. 10 solid wire. For 220 volts Electric Water Heater separately, use a ¾” electrical conduit from the panel box to outlet location. 38. For reference information, using a 100amp double pole circuit breaker use a # 2 wire. 39. A 125-amp double pole circuit breaker uses a # 1 wire. 40. A 150-amp double pole circuit breaker uses a # 1/0 wire. 41. A 175-amp double pole circuit breaker uses a # 2/0 wire. 42. A 200-amp double pole circuit breaker uses a # 3/0 wire. 43. Make sure any electrical splicing to be connected uses an electrical connector, not electrical tape. 44. Make sure to tighten all loose connections properly. 45. Provide 4” high concrete pad for mounting an electrical water heater equipment. Allow for 4” extra distance on the width and length of the water heater. 46. Exposed conduits in exposed areas shall be painted to match the adjacent wall finish. 47. All equipment and disconnect switch in weather shall be sealed waterproof. 48. All testing work shall be performed by the contractor and the contractor shall pay for all water, fuel, electricity, instrument, and personal. 49. The contractor shall submit a written guarantee certificate warranting all materials and workmanship free of defects for one year from the date of acceptance. 50. The contractor must submit As-Built drawings of the electrical system after project along with Certificate of Occupancy

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION ELECTRICAL MOUNTING HEIGHT REQUIREMENTS FOR ELECTRICAL:

1. Meter Box Height 5’-6” from finish grade to center of the meter box
2. Panel Box Height 5’-0” from finish floor to top of the panel box
3. Light Switches Height 48” from finish floor to center of the elect. Box
4. Outlet Height 12” from fin. floor, for ADA outlet height 15”- 48”
5. Fire Alarm Height 5’- 6” from finish floor to center of the pull box
6. Fire Alarm Horn/Bell Height 7’- 6” from finish floor to center of the box
7. Disconnect Switch 5’- 6” from finish floor to the center of the box ELECTRICAL GENERAL NOTES:
8. All electrical work shall be per the applicable sections of the National Electrical Code (NEC) latest edition, and the rules and regulations of the Dept. of Public Works and the Commonwealth Utilities Corporation.
9. All equipment and materials shall be UL listed where the listing is available for that type of equipment or conform to ANSI or NEMA standards.
10. Workmanship shall conform to the construction practices recommended by the American Electricians, Handbook by Croft, and shall be subject to the approval of the agency who has jurisdiction and the electrical engineer.
11. Conduit shall be EMT (indoor dry) locations concealed above ground, rigid aluminum (exposed installations, PVC (underfloor slab or grade, and inside concrete). Flexible conduit shall be jacketed type and per NEC 350.
12. Wiring shall be typed THWN, THW, XHHN, 600 volts. The conductor shall be copper.
13. Minimum size conduit shall be ½” inch diameter unless otherwise noted; minimum wire size shall be #12 AWG. Do Not Use #14 wires.
14. Electrical work shall be under the full supervision of a master electrician or a professional electrical engineer licensed to practice in the CNMI.
15. Panelboard shall be complete with bus bars, enclosure trim, molded case circuit breakers, bolt- on type branch circuit breakers, grounding, and neutral terminal lugs, panel board director, and keys. The laminated nameplate shall be provided on the front cover of the panel board or transformer.

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION 9. All electrical devices and equipment exposed to weather shall be weatherproof. 10. Any device may be relocated within 10’ of the location shown in the plans subject to the direction by the electrical engineer. Any such relocation shall be performed without additional cost to the homeowner. 11. The electrical contractor shall coordinate with a mechanical contractor for exact locations of water lines and waste lines before rough-in work. 12. Grounding: a. Metallic enclosures, raceways, and electrical shall be grounded per NEC 250. Provide green ground wire in every raceway per NEC Table 250-95. b. Grounding connection of the grounded circuit conductor (Neutral) shall be made only at the service disconnection means per NEC 250-23(a). Grounding on the neutral shall not be made on the load side of the service disconnect. The neutral shall not be made on the load side of the service disconnect. The neutral conductor shall be insulated from all equipment enclosures or any grounded parts. Bonding of the neutral bus to the ground bus in sub- panels shall be removed. 13. The electrical panel board and main switchboard, power meter box shall be furnished completely assembled from the factory. 14. Contractor to provide all labor, materials, equipment, tools, and all necessary materials including wire connectors, tapes, markers, etc. to accomplish the work shown in the plans. The cost of permits shall be the contractor’s responsibility. 15. Minimum service clearance in front of the main switchboard shall be 4’. 16. Testing: Operation, Insulation Resistance, Grounding Tests. FINISH MATERIAL STANDARDS: Flooring Standards: (a) For the living room, dining room, kitchen room, hallways, and bedrooms floor, the finish is to be plastered level with a vinyl tile or ceramic tile finish (depending on cost and durability). (b) For the standard restroom floor finishing, to be a ceramic finish with white cement grouted finish. The restroom floor ceramic must be approved nonslip type of ceramic finish. Note: Ceramic color should be the client’s choice of ceramic color on the contractor’s approved standard min. ceramic size. (c) For all concrete stoops, landings and sidewalks floor finish, to be plastered sweep finish and for the carport, floor finish to be plastered fine finish.

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION Note: Plaster the sides of the concrete sidewalks, landings, ramps, and garage floorings. Door Standards: (a) For the exterior front entry door, use a 1¾” thick x 36”x 6’-8” solid core decorative door with heavy-duty door hinges, regular doorknob, deadbolt with keys, painted varnish finish, and door bottom with threshold and a door stopper on the back. Note: Use a lever-type doorknob for a disability or elderly rehab home project. (b) For any exterior exit door, use a 1¾” thick x 32”x 6’-8” min. regular solid core door with heavy-duty door hinges, regular doorknob with a deadbolt, painted varnish finish, and door bottom with threshold and a door stopper on the back. Note: For disability or elderly rehab home project, use a lever type door knob with keys and a 36” size regular solid core door. (c) For bedroom doors, use a 1½” thick x 36”, 34”, 32”, or 30”x 6’-8” min. regular hollow-core door with light-duty door hinges and regular doorknob w/no key type and door painted with a varnish finish and a door stopper installed on the back. (d) Aluminum Typhoon Shutters. Homeowners may include if the rehabilitation budget is sufficient, the installation of aluminum typhoon shutters on the exterior main entrance and rear exit doors of the housing unit All aluminum typhoon shutters shall exceed the wind rating outlined in the 2018 International Building Code (IBC. • Typhoon shutters must be accordion-type with lock and key. • Use 3”x1/4” screws to bolt the typhoon shutters to the concrete wall. The minimum number of screws is 3 per side. Note: For a disability rehab home project, use a lever type door knob with keys only on 36” door size. Window Standards: (a) Living room window min. size 4’x4’ sliding glass window with a ¼” thick safety tempered glass with aluminum frame. 4 screws on each side. (b) Kitchen window min. size 3’x3’ sliding glass window with a ¼” thick safety tempered glass window with aluminum frame. 3 screws on each side. (c) Dining room window min. size 3’x4’ Height with a ¼” thick safety tempered sliding glass window with aluminum frame. 3 screws on each side and 4 screws each on top and bottom. (d) Bedroom window must have at least one set 4’x4’ sliding glass window (For egress, in case of fire) with a ¼” thick safety tempered glass window with aluminum frame. 4 screws on each side.

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION (e) Restroom window min. standard size. 2’x2’ sliding glass window with a ¼” thick safety tempered glass window with aluminum frame. 2 screws on each side. (f) Seal all window edgings inside and outside (g) All windows shall also include window screens (h) Frame Color to be Clients choice of color (i) Install new typhoon metal brackets at the outside walls for all windows w/painted finish (j) Use 3”x1/4” screws to bolt the sliding windows to the concrete wall. The minimum number of screws per window is mentioned above. (k) Aluminum Typhoon Shutters. Homeowners may include if the rehabilitation budget is sufficient, the installation of aluminum typhoon shutters on all housing unit windows. • Typhoon shutters must be accordion-type with lock and key. • Use 3”x1/4” screws to bolt the typhoon shutters to the concrete wall. The minimum number of screws is 3 per side. Note: All aluminum typhoon shutters shall meet or exceed the wind rating outlined in the 2018 International Building Code (IBC). Faucet Standards: (a) Kitchen Sink Faucet to be a regular faucet type. Note: For disability or elderly Rehab Home Project to be a lever faucet set type. (b) Restroom Lavatory Sink Faucet to be a regular faucet type. Note: For disability or elderly Rehab Home Project to be a lever faucet set type. Regular and Disability Rehab Home Projects Standard Finishes: (a) For disability, concrete sidewalk & landing size requirements. Concrete sidewalk width 36” min. and for landing size 5’ sq. no less. Note: Sidewalks and landings that are higher than 7” above existing grade during rehab work, requires all sides to be backfilled at 4” finish grade at 1’ level and slope out at 4’ on both sides to existing grade elevation, otherwise install new aluminum hand railings within 33” to 36” height along the hazard sidewalk, ramps and landings pathway. Note: For regular rehab home projects sidewalks, same at 36” and for landing 36” sq. is allowable. (b) For the front entry and exit doors outside, construct a 5’ sq. concrete stoop floor landing at ½” lower from the finished house floor elevation.

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION (c) The restroom floor elevation should be ½” lower from the inside house flooring. Also, for the shower room flooring is ½” lower than the restroom flooring as required. (d) Install hand railings along any sidewalks or pathways and landings that are higher than 7” above finish grade. (e) Construct a new concrete ramp at a ratio of 1” drop = 1’ slope. (f) Install smoke alarms in bedrooms and hallways as required by Building Safety Code. Smoke alarms must be hard-wired smoke alarms and that the smoke alarms are interconnected. (g) Install water sprinklers with warning fire light signals for impairment of client individuals only. (h) In designing a new rehab disability home layout extension or for reconstructed disability house floor plan design, consider a 3’ clear passage for a wheelchair to maneuver from the entry of the house to the inside of the house. Ensure that in your design layout, take into consideration the furniture space in planning for wheelchair accessibility, through bedrooms, restroom(s), living room, kitchen, dining, and for exiting the exit door to the outside of the house with no hazards along for emergency purposes as required. (i) Disability lavatory height should be set at 34” maximum. (j) disability water closet height from the finished floor to the toilet seat is within 17” to 19”. Note: For regular standard toilet height is 15” from the finished floor to the toilet seat. (k) Install a new 2’ ADA grab bars on the back of ADA toilet centered, 2’ length on shower faucet wall and 42” on the side shower wall at height within 33” to 36”. (l) Install ADA medicine cabinet at 40” from the finished floor to the bottom of the medicine cabinet. Note: For regular standard medicine cabinet height is 64” from the finished floor to center of the medicine cabinet. (m) Install a towel hanging bar within 36” to 48” for disability or regular restroom. (n) Install a toilet paper holder to the nearest wall at 19” above the finished floor and a maximum of 36” from the rear wall. (o) Rehab finishing projects paint colors to be the home client’s choice of paint color for all paint finishing work. All technical reference information applies to all building systems standard needs for new house construction, rehabilitation project, renovation project and house conversion to disability home compliance project that meet all current CNMI local building code regulations and meet Housing Quality Standards (HQS) and Uniform Physical Condition Standards (UPCS) requirements. The HUD CPD Green Building Retrofit Checklist will also be included in the rehabilitation standards (Attachment A). “CPD recognizes that not all elements of the checklist will be applicable in all climates and geographies. Because of this, CPD will consider exceptions to these standards based on climate or geography, if a grantee identifies the specific standards that aren’t applicable, including offering alternatives if available, and CPD’s Office of Environment and Energy accepts the grantee’s request.”

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION Other building systems may be accepted provided that they meet or exceed the standards mentioned above. Third-party certifications or specific standard testing methods are required to substantiate or validate the claims. Attachment A: HUD CPD Green Building Retrofit Checklist The CPD Green Retrofit Checklist promotes energy efficiency and green building practices for residential retrofit projects. Grantees must follow the checklist in its entirety and apply all measures within the Checklist to the extent applicable to the particular building type being retrofitted. The phrase “when replacing” in the Checklist refers to the mandatory replacement with specified green improvements, products, and fixtures only when replacing those systems during the normal course of the retrofit. Note: CPD recognizes that not all elements of the checklist will be applicable in all climates and geographies. Because of this, CPD will consider exceptions to these standards based on climate or geography, if a grantee identifies the specific standards that aren’t applicable, including offering alternatives if available, and CPD’s Office of Environment and Energy accepts the grantee’s request. WATER AND ENERGY CONSERVATION MEASURES Water-Conserving Fixtures Install or retrofit water conserving fixtures in any unit and common facility, use the following specifications: Toilets— 1.28 gpf; Urinals— 0.5 gpf; Showerheads— 2.0 gpm; Kitchen faucets— 2.0 gpm; and Bathroom faucets— 1.5gpm. [gpf = gallons per flush; gpm = gallons per minute] ENERGY STAR Appliances Install ENERGY STAR-labeled clothes washers, dishwashers, and refrigerators, if these appliance categories are provided in units or common areas. Air Sealing: Building Envelope Seal all accessible gaps and penetrations in the building envelope. If applicable, use low VOC caulk or foam. . Insulation: Attic (if applicable to building type) For attics with closed floor cavities directly above the conditioned space, blow in insulation per manufacturer’s specifications to a minimum density of 3.5 Lbs. per cubic foot (CF). For attics with open floor cavities directly above the conditioned space, install insulation to meet or exceed IECC levels. Insulation: Flooring (if applicable to building type) Install ≥ R-19 insulation in contact with the subfloor in buildings with floor systems over vented crawl spaces. Install a 6-mil vapor barrier in contact with 100% of the floor of the crawl space (the ground), o verlapping seams and piers at least 6 inches.

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION Duct Sealing (if applicable to building type) In buildings with ducted forced-air heating and cooling systems, seal all penetrations of the air distribution system to reduce leakage in order to meet or exceed ENERGY STAR for Homes’ duct leakage standard. Air Barrier System Ensure continuous unbroken air barrier surrounding all conditioned space and dwelling units. Align insulation completely and continuously with the air barrier. Radiant Barriers: Roofing When replacing or making a substantial repair to the roof, use radiant barrier sheathing or other radiant barrier material; if economically feasible, also use cool roofing materials. Windows When replacing windows, install geographically appropriate ENERGY STAR rated windows. Sizing of Heating and Cooling Equipment When replacing, size heating and cooling equipment in accordance with the Air Conditioning Contractors of America (ACCA) Manuals, Parts J and S, or 2012 ASHRAE Handbook—HVAC Systems and Equipment or most recent edition. Domestic Hot Water Systems When replacing domestic water heating system(s), ensure the system(s) meet or exceed the efficiency requirements of ENERGY STAR for Homes’ Reference Design. Insulate pipes by at least R-4. Efficient Lighting: Interior Units Follow the guidance appropriate for the project type: install the ENERGY STAR Advanced Lighting Package (ALP); OR follow the ENERGY STAR MFHR program guidelines, which require that 80% of installed lighting fixtures within units must be ENERGY STAR-qualified or have ENERGY STAR-qualified lamps installed; OR when replacing, new fixtures and ceiling fans must meet or exceed ENERGY STAR efficiency levels. Efficient Lighting: Common Areas and Emergency Lighting (if applicable to building type) Follow the guidance appropriate for the project type: use ENERGY STAR-labeled fixtures or any equivalent high-performance lighting fixtures and bulbs in all common areas; OR when replacing, new common space and emergency lighting fixtures must meet or exceed ENERGY STAR efficiency levels. For emergency lighting, if installing new or replacing, all exist signs shall meet or exceed LED efficiency levels and conform to local building codes. Efficient Lighting: Exterior Follow the guidance appropriate for the project type: install ENERGY STAR-qualified fixtures or LEDs with a minimum efficacy of 45 lumens/watt; OR follow the ENERGY STAR MFHR program guidelines, which require that 80% of outdoor lighting fixtures must be ENERGY STAR-qualified or have ENERGY STAR-qualified lamps installed; OR when replacing, install ENERGY STAR compact fluorescents or LEDs with a minimum efficacy of 45 lumens/watt.

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION INDOOR AIR QUALITY Air Ventilation: Single Family and Multifamily (three stories or fewer) Install an in-unit ventilation system capable of providing adequate fresh air per ASHRAE 62.2 requirements. Air Ventilation: Multifamily (four stories or more) Install apartment ventilation systems that satisfy ASHRAE 62.2 for all dwelling units and common area ventilation systems that satisfy ASHRAE 62.1 requirements. If economically feasible, consider heat/energy recovery for 100% of corridor air supply. Composite Wood Products that Emit Low/No Formaldehyde Composite wood products must be certified compliant with California 93120. If using a composite wood product that does not comply with California 93120, all exposed edges and sides must be sealed with low-VOC sealants. Environmentally Preferable Flooring When replacing flooring, use environmentally preferable flooring, including the FloorScore certification. Any carpet products used must meet the Carpet and Rug Institute’s Green Label or Green Label Plus certification for carpet, pad, and carpet adhesives. Low/No VOC Paints and Primers All interior paints and primers must be less than or equal to the following VOC levels: Flats—50 g/L; Non-flats—50 g/L; Floor—100 g/L. [g/L = grams per liter; levels are based on a combination of the Master Painters Institute (MPI) and GreenSeal standards.] Low/No VOC Adhesives and Sealants All adhesives must comply with Rule 1168 of the South Coast Air Quality Management District. All caulks and sealants must comply with regulation 8, rule 51, of the Bay Area Air Quality Management District. Clothes Dryer Exhaust Vent clothes dryers directly to the outdoors using rigid-type duct work. Mold Inspection and Remediation Inspect the interior and exterior of the building for evidence of moisture problems. Document the extent and location of the problems, and implement the proposed repairs according to the Moisture section of the EPA Healthy Indoor Environment Protocols for Home Energy Upgrades. Combustion Equipment When installing new space and water-heating equipment, specify power-vented or direct vent c ombustion equipment.

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION Mold Prevention: Water Heaters Provide adequate drainage for water heaters that includes drains or catch pans with drains piped to the exterior of the dwelling. Mold Prevention: Surfaces When replacing or repairing bathrooms, kitchens, and laundry rooms, use materials that have durable, cleanable surfaces. Mold Prevention: Tub and Shower Enclosures When replacing or repairing tub and/or shower enclosures, use non-paper-faced backing materials such as cement board, fiber cement board, or equivalent in bathrooms. Integrated Pest Management Seal all wall, floor, and joint penetrations with low-VOC caulking or other appropriate sealing methods to prevent pest entry. [If applicable, provide training to multifamily buildings staff.] Lead-Safe Work Practices For properties built before 1978, if the project will involve disturbing painted surfaces or cleaning up lead contaminated dust or soil, use certified renovation or lead abatement contractors and workers using lead-safe work practices and clearance examinations consistent with the more stringent of EPA’s Renovation, Repair, and Painting Rule and HUD’s Lead Safe Housing Rule. Radon Testing and Mitigation (if applicable based on building location) For buildings in EPA Radon Zone 1 or 2, test for radon using the current edition of American Association of Radon Scientists and Technologists (AARST)’s Protocols for Radon Measurement in Homes Standard for Single-Family Housing or Duplexes, or AARST’s Protocol for Conducting Radon and Radon Decay Product Measurements in Multifamily Buildings. To install radon mitigation systems in buildings with radon level of 4 pCi/L or more, use ASTM E 2121 for single-family housing or duplexes, or AARST’s Radon Mitigation Standards for Multifamily Buildings. For new construction, use AARST’s Reducing Radon in New Construction of 1 & 2 Family Dwellings and Townhouses, or ASTM E 1465. Attachment B: Uniform Physical Condition Standards for Single Family Housing Rehabilitation – Requirements for Site Inspectable Item Observable Deficiency Type and Degree of Deficiency That Must Be Addressed Fencing and Gates Damaged/Failing/Leaning Holes Missing Sections

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION Grounds Erosion/Rutting Areas Overgrown/Penetrating Vegetation Ponding/Site Drainage (affecting unit) Health and Safety Air Quality – Sewer Odor Detected Air Quality – Propane/Natural Gas/Methane Gas Detected Electrical Hazards – Exposed Wires/Open Panels Electrical Hazards – Water Leaks on/near Electrical Equipment Flammable Materials – Improperly Stored Garbage and Debris – Outdoors Play Equipment – Broken or Damaged Hazards – Other (e.g., outbuildings) Hazards – Sharp Edges Hazards – Tripping Infestation – Insects Infestation – Rats/Mice/Vermin Mailboxes/Project Mailbox Missing/Damaged Signs Signs Damaged Driveways Cracks Potholes/Loose Material Settlement/Heaving Retaining Walls Damaged/Falling/Leaning Storm Drainage Damaged/Obstructed Walkways/Steps Broken/Missing Hand Railing Cracks/Settlement/Heaving Spalling Attachment B: Uniform Physical Condition Standards for Single Family Housing Rehabilitation – Requirements for Site

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION Inspectable Item Observable Deficiency Type and Degree of Deficiency That Must Be Addressed Doors Damaged Frames/Threshold/Lintels/ Trim Damaged Hardware/Locks Damaged Surface (Holes/Paint/Rusting/Glass) Damaged/Missing Screen/Storm/Security Door Deteriorated/Missing Caulking/Seals Missing Door Foundations Cracks/Gaps Spalling/Exposed Rebar Cracks/Gaps Spalling/Exposed Rebar Health and Safety Electrical Hazards – Exposed Wires/Open Panels Electrical Hazards – Water Leaks on/near Electrical Equipment Flammable/Combustible Materials – Improperly Stored Garbage and Debris – Outdoors Hazards – Other Hazards – Sharp Edges Hazards – Tripping Infestation – Insects Infestation – Rats/Mice Vermin Lighting Broken Fixtures/Bulbs Roofs Damaged Soffits/Fascia Damaged Vents Damaged/Clogged Drains Damaged/Torn Membrane/Missing Ballast Missing/Damaged Components from Downspout/Gutter Ponding Walls Cracks/Gaps

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION Damaged Chimneys Missing/Damaged Caulking/Mortar Missing Pieces/Holes/Spalling Stained/Peeling/Needs Paint Windows Broken/Missing/Cracked Panes Damaged Sills/Frames/Lintels/Trim Damaged/Missing Screens Missing/Deteriorated Caulking/Seals/Glazing Compound Peeling/Needs Paint Security Bars Prevent Egress Attachment B: Uniform Physical Condition Standards for Single Family Housing Rehabilitation – Requirements for Site Inspectable Observable Deficiency Type and Degree of Item Deficiency That Must Be Addressed Bathroom Bathroom Cabinets - Damaged/Missing Lavatory Sink - Damaged/Missing Plumbing - Clogged Drains Plumbing - Leaking Faucet/Pipes Shower/Tub - Damaged/Missing Ventilation/Exhaust System – Inoperable (if applicable Water Closet/Toilet - Damaged/Clogged/Missing Ceiling Bulging/Buckling Holes/Missing Tiles/Panels/Cracks Peeling/Needs Paint Water Stains/Water Damage/Mold/Mildew Doors Damaged Frames/Threshold/Lintels/Trim Damaged Hardware/Locks Damaged/Missing Screen/Storm/Security Door Damaged Surface - Holes/Paint/Rusting/Glass Deteriorated/Missing Seals (Entry Only) Missing Door Electrical Blocked Access to Electrical Panel System

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION Burnt Breakers Evidence of Leaks/Corrosion Frayed Wiring GFI - Inoperable Missing Breakers/Fuses Missing Covers Floors Bulging/Buckling Floor Covering Damage Missing Flooring Tiles Peeling/Needs Paint Rot/Deteriorated Subfloor Water Stains/Water Damage/Mold/Mildew Health and Air Quality - Mold and/or Mildew Observed Safety Air Quality - Sewer Odor Detected Air Quality - Propane/Natural Gas/Methane Gas Detected Electrical Hazards - Exposed Wires/Open Panels Electrical Hazards - Water Leaks on/near Electrical Equipment Flammable Materials - Improperly Stored Garbage and Debris - Indoors Garbage and Debris - Outdoors Hazards - Other Hazards - Sharp Edges Hazards – Tripping Infestation - Insects Infestation – Rats/Mice/Vermin Hot Water Inoperable Unit/Components Heater Leaking Valves/Tanks/Pipes Pressure Relief Valve Missing Rust/Corrosion Attachment B: Uniform Physical Condition Standards for Single Family Housing Rehabilitation – Requirements for Site

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION Inspectable Item Observable Deficiency Type and Degree of Deficiency That Must Be Addressed HVAC System Inoperable Misaligned Chimney/Ventilation System Noisy/Vibrating/Leaking Rust/Corrosion Kitchen Cabinets - Missing/Damaged Countertops - Missing/Damaged Dishwasher/Garbage Disposal – Leaking/Inoperable Plumbing - Clogged Drains Plumbing - Leaking Faucet/Pipes Range Hood/Exhaust Fans - Excessive Grease/Inoperable Range/Stove - Missing/Damaged/Inoperable Refrigerator- Missing/Damaged/Inoperable Sink – Damaged/Missing Laundry Area (Room) Dryer Vent – Missing/Damaged/Inoperable Lighting Missing/Inoperable Fixture Outlets/Switches Missing Missing/Broken Cover Plates Patio/Porch/Balcony Baluster/Side Railings Damaged Smoke Detector Missing/Inoperable Stairs Broken/Damaged/Missing Steps Broken/Missing Hand Railing Walls Bulging/Buckling Damaged Damaged/Deteriorated Trim Peeling/Needs Paint Water Stains/Water Damage/Mold/Mildew Windows Cracked/Broken/Missing Panes Damaged/Rotting Window Sill Missing/Deteriorated Caulking/Seals/Glazing Compound Inoperable/Not Lockable Peeling/Needs Paint Security Bars Prevent Egress

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION APPENDIX A.3: Environmental Review ENVIRONMENTAL REVIEW Policy and Procedures CDBG-DR requires that an environmental review be completed for every activity before funds (even non-CDBG-DR funds associated with the activity) are committed or expended. Such environmental reviews must comply with the National Environmental Policy Act of 1969 (NEPA) and the related authorities listed at 24 CFR Part 58. An environmental review must be conducted considering federal laws, authorities, and regulations which address noise, air quality, historic properties, floodplains, wetlands, water quality, solid waste disposal, manmade hazards, farmlands protection, wild and scenic rivers, coastal areas, endangered species and others. In accordance with 24 CFR Part 58, recipients, owners, developers, sponsors or any other third- party partners cannot take any physical actions on a site, begin construction, commit, expend, or enter into any legally binding agreements that constitute choice limiting actions for any HUD or non-HUD funds before the environmental review process has been completed and the jurisdiction has received a Release of Funds approval. Tier I Review: Target Area Assessment The Northern Marianas Housing Corporation (NMHC) may conduct a tiered environmental review under 24 CFR 58.15 for its CDBG-DR Action Plan. A tiered environmental review allows for a general assessment of the impacts of an activity on the environment prior to identification of a specific site. The Tier 1 review addresses and analyzes those environmental impacts related to the proposed activities that might occur on a typical site within the geographic area. The Tier 1 review also assesses project effects related to a longer list of environmental factors (e.g., compatibility with surrounding land uses, conformance with zoning plans, nuisances that affect site safety, displacement of people or businesses, solid waste management, etc.). All environment compliance requirements satisfactorily resolved in this first level of review, meaning findings of no significant impact or impact requiring mitigation, are excluded from any additional examination or consideration once the Tier 1 review is completed. The Tier 1 review identifies those compliance requirements that cannot be resolved until specific project

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION locations become known. Site specific issues that cannot be resolved in a Tier 1 review may include: aboveground storage tanks that present a safety hazard to buildings and occupants of buildings; new residential units located in close proximity to the airport which generates high levels of noise; soils that are not suitable for multifamily structures; asbestos removal that may be necessary; or other potential impacts. The Tier 2 Site Specific Review will address such issues. Tier II: Site Specific Project Review A review for each individual property is required once sites are selected. The Tier 2 review focuses only on the environmental compliance requirements that could not be resolved in the Tier 1 Target Area Assessment. The NMHC or Implementing Partners (recipients of DR funds) performs the Tier 2 review. When NMHC identifies specific properties or sites within the target area and is ready to obligate funds (e.g. to buy a property, finance repairs, demolish a structure, etc.) it will use the written standards, checklists and narratives set forth in the Tier 1 review process to determine if there are any environmental issues associated with the site. This Site- Specific Project Review documents in writing that compliance standards for the specific project are met, and that required mitigation measures, if any, will be incorporated into the project. The Tier 2 review must be completed before funds (including non-CDBG-DR funds) are committed or expended on the project. The Tier 2 Site Specific Project Review will be maintained in the project files. Environmental Procedures STEP 1: Environmental Review Determination In accordance with above internal review procedures, the Project Manager and/or Housing Administrator will review the program/project scope of work and determine at what level of environmental review needs to be conducted. The environmental consultant will provide technical assistance and support on complex environmental issues. The NEPA classifications that will be determined are listed below:

1. Exempt – Subject to Related Laws at 24 CFR 58.34 Activities that by their very nature will have no physical impact upon the environment are exempt from NEPA requirements as well as Part 58.5. In these cases, NMHC does not need to check for compliance with the requirements or perform an environmental review, consultation, or other action under NEPA. Some examples from NEPA requirements include: • Environmental studies, plans & strategies • Administrative & management expenses • Inspections & testing properties • Engineering or design costs • Technical assistance & training • Any of the CEST activities at §58.35(a) if Federal laws and authorities at §58.5 are not triggered

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION 2. Categorically Excluded, not Subject to 58.5. (24 CFR 58.35) Activities in this section are categorically excluded from the requirements at 58.5, due to HUD’s determination that such activities will not alter any conditions that would require a NEPA review or a compliance determination under 58.5. When performing a categorically excluded activity not subject to 58.5, NMHC does not need to publish a Notice of Intent/Request for Release of Funds (NOI/RROF). Following the award of program funds, no further approval from HUD will be needed with respect to environmental requirements. Examples of categorically excluded, not subject to NEPA requirements are: • Tenant-based rental assistance • Supportive services • Operating costs including maintenance, security, operation, utilities, furnishings, equipment, supplies, staff training and recruitment and other incidental costs • Economic development activities not associated with construction or expansion of existing operations • Activities to assist homebuyer • Affordable housing pre-development costs • Supplemental assistance of previously-approved project 3. Categorically Excluded Subject to 58.5 Any of the categorically excluded activities in 58.35 are exempt from NEPA, provided that there are no circumstances that require compliance with any other federal law and authorities cited in 58.5. Using the statutory checklist, and after consulting with applicable agencies and organizations, NMHC can designate an activity as exempt if it can show that none of the federal laws and authorities are triggered through funding this activity. The statutory checklist deals with non-NEPA regulation which grantees must adhere to such as historic and wildlife preservation, floodplain management, noise control, etc. Examples of categorically excluded, subject to NEPA requirements are: • Acquisition, repair, improvement, reconstruction or rehabilitation of public facilities and improvements when: o Facilities and improvements are in place o No more than 20% change in size or capacity o No change in land use • Removal of architectural barriers that restrict accessibility • Rehabilitation of buildings and improvements: o Residential Structures of 1 – 4 units: no more than 4 units; no change in land use; cannot increase into floodplain or wetland o Multifamily Residential Structures: unit density does not change more than 20%; no change in land use; cost of rehab is less than 75% of replacement cost after rehabilitation o Commercial, Industrial and Public Buildings: size and capacity does not increase by more than 20%; no change in land use • Individual action on up to four dwelling units (One 4-unit structure or four 1- unit structures or any combination in between):

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION • Individual action on a project of five or more housing units when sites are more than 2000 feet apart and no more than four units on any one site. • Acquisition, disposition or finance of existing structure or vacant land if retained for same use. • Combination of any of the above activities. 4. Subject to an Environmental Assessment (24 CFR 58.36) If a project is not exempt or categorically excluded under the above sections, NMHC must prepare an Environmental Assessment (EA). An EA is a concise public document that includes all the evidence and analysis supporting the NMHC’s decision as to whether an environmental impact statement is warranted or if an activity will result in no significant impact to the environment. Examples when environmental assessments are needed are: • New Construction (more than five (5) units); • Construction of Public Facilities; • Infrastructure Development; • New construction, demolition and/or reconstruction of five or more single family units on scattered sites that are less than 2,000 feet apart; • Extending the footprint of a single-family unit into the floodplain or wetland area or expanding the footprint of a structure that is already in a floodplain or wetland area; • Major rehabilitation or reconstruction of multifamily residential units that increases or decreases the unit density more than 20 percent; • Conversion of a non-residential structure to create a residential use; • Acquisition of land for development of a housing subdivision; • Activities that are normally exempt or categorically excluded but have an extraordinary circumstance that requires further review. NMHC must file the completed checklist and a statement in the Environmental Review Record. 5. Subject to an environmental impact statement (24 CFR 58.37) If a project is subject to a full EA and is determined to have a potentially significant impact on the human environment, then an Environmental Impact Statement (EIS) is required. An EIS is also required if the project fits at least one of the following criteria: • It would provide a site or sites for or result in the construction of hospitals or nursing homes containing more than 2,500 or more beds; • It would remove, demolish, convert or substantially rehabilitate 2,500 or more existing housing units or would result in the construction or installation of 2,500 or more housing units; • It would provide enough additional water and sewer capacity to support 2,500 or more additional housing units. The Loan/Grant Supervisor or Project Supervisor must concur on the final environmental review determination (such as “Conversion to Exempt” or issuance of a “FONSI”). Depending on the

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION type of project, the grant specialist, construction inspector, or administrative assistant receives the environmental review document log, scan, and digitally file in the NMHC shared drive to ensure all environmental records are maintained together.

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION STEP 2: Preparation of Environmental Review Once the level of environmental review is determined, the loan/grant supervisor or project supervisor will include the determination in the Environmental Assessment file. The loan/grant supervisor or project supervisor will prepare environmental records. The estimated timeframe, depending on consultations require for completing Environmental Process is as follows: Environmental Determination Estimated Timeline for Preparation Exempt 1 Day Categorically Excluded not Subject to 58.5 1 Day Categorically Excluded Subject to 58.5 30-75 Days Environmental Assessment 45-100 Days Environmental Impact Statement 1-2 Years Tiered Environmental Review Environmental Reviews may be tiered to avoid repetition. Tiered reviews are used to identify and evaluate issues ripe for decision, excluding issues not relevant to the program, policy or project. They are appropriate when: • Evaluating a policy or proposal • Early Stages of Development • When site-specific analysis is not feasible and more narrowed and focused review is better done at a later date • Tiered environmental reviews are not appropriate for projects requiring an Environmental Assessment. This review is conducted to achieve both compliance and speed because it does not require upfront identification of assisted properties. In short, a tiered review focuses on a specific geographical area to address and analyze environmental impacts related to the proposed activities that might occur on the typical project site within that area. The specific addresses/locations of the individual properties are not known at this time. However, once individual project sites are located, any remaining environmental compliance issues that could not be resolved until project locations became known are completed according to standards for approval previously established for the target area. NMHC’s tiered review focuses on scattered sites located throughout a particular targeted area. The Tier 1 addresses all laws and authorities possible and establishes a plan (narrative) for the site-specific or subsequent review. NMHC must publish a public notice of intent to request a release of funds (NOI/RROF) and submit RROF as described in Step 3.

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION The Tier 2 site-specific review does not require a public notice or RROF required unless there are unanticipated impacts or impacts that are not adequately addressed in the Tier 1 review. 8-Step Decision Making Process for Projects in the Floodplain

1. Determine whether the action is located in a 100-year floodplain (or a 500-year floodplain for critical actions).
2. Notify the public for early review of the proposal and involve the affected and interested public in the decision-making process.
3. Identify and evaluate practicable alternatives. Identify the project site selection criteria and consider several alternative sites and actions: A. Locate the project within the floodplain B. Consider modifying the project C. Obtain a Letter of Map Amendment (LOMA) or Letter of Map Revision (LOMR) or A. Locate the Project Outside of the Floodplain B. Consider other sites C. Consider no action or alternative actions that serve the same purpose
4. Identify Potential Direct and Indirect Impacts of Associated with Floodplain Development.
5. Where practicable, design or modify the proposed action to minimize the potential adverse impacts to lives, property, and natural values within the floodplain and to restore, and preserve the values of the floodplain.
6. Re-evaluate the Alternatives.
7. Determination of No Practicable Alternative
8. Implement the Proposed Action STEP 3: Publication of Notice of Intent (NOI) Request for Release of Funds (RROF) and Finding of No Significant Impact (FONSI) Categorical Exclusions NMHC will publish a Notice of Intent to Request a Release of Funds (NOI/RROF) for projects that are Categorically Excluded Subject to §58.5 and projects requiring EAs, using the HUD recommended format. At a minimum, NMHC staff shall publish the NOI/RROF notice in a newspaper of general circulation and on the CDBG-DR website. Additionally, the following shall be notified:
9. Individuals and groups known to be interested in the activities
10. Appropriate tribal, local, State and Federal agencies

TITLE 100: NORTHERN MARIANAS HOUSING CORPORATION NMHC must consider the comments and make modifications, if appropriate, in response to the comments, before it certifies and submits the RROF to HUD. The public comment period is 7 days when published, counting from the day after the publication. Environmental Assessments (EA) If NMHC makes a Finding of No Significant Impact from an EA, it must prepare a Finding of No Significant Impact (FONSI) notice, using the HUD recommended format. At a minimum, NMHC staff shall publish the FONSI/NOI/RROF combined notice in a newspaper of general circulation and on the CDBG-DR website. Additionally, the following shall be notified:

1. Individuals and groups known to be interested in the activities
2. Appropriate tribal, local, State and Federal agencies The FONSI public comment period is 15 days when published, counting from the day after the publication. NMHC typically publishes a FONSI notice at the same time it publishes the NOI/RROF. If the notices are released as a combined notice, the combined notice shall clearly indicate that it is intended to meet two separate procedural requirements; and, advise the public to specify in their comments which “notice” their comments address. The public comment period is 15 days when published, counting from the day after the publication. History: Adopted 47 Com. Reg. 52772 (Aug. 15, 2025); Proposed 47 Com. Reg. 52545 (July 15, 2025); Adopted 47 Com. Reg. 52029 (Apr. 15, 2025); Proposed 47 Com. Reg. 51840 (Mar. 15, 2025); Adopted 46 Com. Reg. 51076 (May 15, 2024); Proposed 46 Com. Reg. 50914 (Apr. 15, 2024); Adopted 46 Com. Reg. 050364 (Sept. 28, 2023); Proposed 46 Com. Reg. 050091 (July 28, 2023); Adopted 43 Com. Reg. 45935 (May 28, 2021); Proposed 43 Com. Reg. 45071 (Feb. 28, 2021).

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Source: CNMI Law Revision Commission