_APPENDIX B

							Eligible and Ineligible Improvements




                                ATTACHMENT I

               LIST OF ELIGIBLE/INELIGIBLE IMPROVEMENTS

     Section 201.20 (b)(2) of the Title I regulations state that
the proceeds from a property improvement loan shall be used only
to finance renovations that substantially protect or improve the
basic livability and utility of the property. This list may be
amended by Notice in future Title I Letters. If a lender
questions the eligibility of any item or activity, it shall
request a specific ruling by the Secretary before making a loan.



                           ELIGIBLE IMPROVEMENTS

Abutments
Acoustical tile
Additions to structures
Air conditioning (central)
Alteration
Aluminum panels
Apartments, cooperatives           Interior improvements only
  and condominiums
Asphalt siding
Attic fans
Auditoriums
Awnings; aluminum, canvas, plastic, wood

Back bars
Barns
Basements
Bathrooms; Fixtures & connections
Bathtubs; enclosures
Bins; coal, grain, concrete
Black topping                              Single family loans only
Blinds; Venetian, vertical
Blowers; furnace
Boathouses                                 Not for common use
Boatslips                                  Not for common use
Boilers
Bookcases (built-in)
Brick shingles or siding
Built-in kitchen equipment                 Hard wire - Hard plumb
Bulkheads                                  Not for common use
Bunkhouses



                                   Attachment
Eligible and Ineligible Improvements




Burglar alarms                             Hard wire
Burglar bars/decorative bars               Permanent
Burners; furnace, oil, gas

Cabinets
Canopies
Carpet; wall-to-wall
Carports
Casements; window
Ceilings
Cellar, storm, wine
Cesspools
Chimneys
Choir lofts
Churches                           Structure only
Chutes; coal, grain, laundry
Cleaning, steam                    Before painting
Cold storage rooms
Coating; roofing
Commercial buildings
Composition; flooring paneling, shingles, siding
Condominium                        Single family - $25,000
                                   (inside of unit only)
                                   check ownership of individual
                                   unit plus ownership of portion
                                   of common area

                                           Multifamily - up to $60,000
                                           check ownership of entire
                                           building
Converting; structural
Co-op, cooperative                         Inside improvements only
                                           check for mutual ownership
                                           contract or perpetual use
                                           agreement - no lien can be
                                           placed - maximum loan $7,500
Cottages
Curbing                                    Single family only

Decks, Gazebos                             Not for hot tub use or
                                           around a swimming pool
Dishwasher                                 Hard wire, hard plumb
Docks                                      Not for common use
Door chimes                                Hard wire
Doors
      1.    Storm



                                   Attachment
Eligible and Ineligible Improvements




      2.    Fire
      3.    Screen
Downspouts
Drain fields - septic
Drilling; wells                    Must be a structure on
                                   property and previously had
                                   water supply
Drive-in                           Structure only, not trade
                                   fixtures or equipment
Driveways, private (Not for multifamily properties)
Ducts
Duplex                             lot and both homes owned by
                                   same person = multifamily loan
                                   limits, $24,000

                                           one individual owns house and
                                           lot - someone else owns the
                                           other house and lot = single
                                           family loan limit, $25,000

Electric Garage door opener        Hard wire
Electric light fixtures, lines, poles
Electric light systems
Elevators
Escalators
Exhaust Fans
Exterior finishing work

Fans                                       Permanently attached to
                                           structure, non window
Fences                                     Structure must be on property
       1.    Chain link
       2.    Brick
       3.    Wood
       4.    Iron
Finishing work
Fire escapes
Fireplaces (indoor)
Floodlight (non display)
Flooring
Flour mills, sheds
Flues
Foundations
Fronts, commercial buildings or residential structures
Furnaces; coal, floor, gas, oil




                                   Attachment
Eligible and Ineligible Improvements




Garages
Garbage disposal units
Gas heating systems
Gazebo, on permanent foundation
Generators, permanently installed
Glass Tinting
Grates, furnace
Guard rails
Guttering

Heat control devices

Incinerators
Insulation
Interior work
Ironing Board, permanently installed

Jacuzzi, inside bathroom
Jalousies

Lattice work
Laundry chutes
Laundry tubs
Lightning rods

Meters, electric and water, gas            (Replacement only)
Moulding

Painting
Paneling
Papering
Partitions
Patios
Paving
Piers                                      Not for common use
Pillars
Plastering
Plumbing
Pole barns, permanent foundation
Porches
Pumps

Radiators, permanently installed (covers not eligible)
Railings
Registers, heat
Reservoirs (not for irrigation)



                                   Attachment
Eligible and Ineligible Improvements




Resurfacing
Retaining walls
Roof coating
Roofing

Safes/vaults (permanently affixed)
Sandblasting
Sanding
Sashes
Screening
Seawalls (non floating)            Not for common use
Security System, hardwired into electric system
Sewerage systems                   Septic tank - replacement of
                                   existing
Shingles
Shower doors
Shutters
Sidewalks (private)
Siding                             Cement, ceramic tile, brick,
                                     wood, aluminum
Sills
Silo
Sinks
Slating
Smokestack
Solar Room Sunspace/solarium       Permanently installed for use
                                     as a sun room, family room
Solar water heating systems
Spa                                Permanently installed inside
                                   the structure
Sprinkler systems, fire
Stairs
Stalls
Steam Cleaning
Steeples
Stokers
Stone Siding
Storm cellars
Storm panels
Stuccoing
Studding
Structural changes

Tanks
        1.    Fuel (residential property only, not commercial)
        2.    Milk



                                   Attachment
Eligible and Ineligible Improvements




        3.    Septic
        4.    Storage
        5.    Water
Tiles
      1.    Ceiling
      2.    Ceramic
      3.    Cement
      4.    Floor (permanently affixed)
      5.    Plastic
      6.    Acoustical
Termite control, with replacement of damage
Trees                              diseased or damaged and hazard
                                   to structure on property
Trestles
Troughs

Utility Building (sheds)                   Permanent masonry /concrete
                                           foundation

Vaults
Venetian/Mini blinds
Ventilation hoods
Ventilation systems
Vents
Verandas

Wall heaters
Wallboards
Walls
Warehouses
Washtubs
Water Conditioners                         Permanently installed in
                                           plumbing system
      1.    Purifiers
      2.    Softeners
      3.    Sterilizers
Water coolers                      Permanent
Water heaters
Water systems
Water tower
Water wells, must have structure on property & previously had
            water supply
Waterproofing
Weatherstripping
Wells                              Together with pumping and
                                   piping equipment



                                   Attachment
Eligible and Ineligible Improvements




Windmills                                  Eligible only for furnishing
                                           power to residential
                                           structure
Windows
      1.    Screen
      2.    Storm
      3.    Thermal
Wiring; electric
Wood shingles
      1.    Siding
      2.    Paneling


                          ELIGIBLE NEW STRUCTURES

Animal houses
Auditoriums
Canneries
Churches                                   Structure only
                                           Required interest in the
                                           property must be met -
                                           Structure must be completed
                                           with a distinctive function to
                                           be eligible for financing.
                                           The note must be signed by the
                                           duly authorized officers of
                                           the church and a copy of the
                                           resolution granting such
                                           authority should be included
                                           in the loan file. It is
                                           advisable to also obtain the
                                           signature of the officers as
                                           individuals as well as in the
                                           official capacities.
Creameries
Feed mills
Feed sheds                                 Permanently installed
Flour mills
Foundries
Fodder sheds/bins
Garages
Granaries
Greenhouses                                Farm related
Gymnasium
Hatcheries
Icehouses



                                   Attachment
Eligible and Ineligible Improvements




Implement sheds                            Permanently installed
Industrial buildings                       Structure only
Locker plants
Manufacturing buildings                    Structure only
Meeting halls
Milkhouse
Office buildings                           Structure only
Service buildings
Silos
Smokehouse
Stables
Steel buildings                            Permanent foundation
Schools
Storehouse
Warehouse
                          INELIGIBLE IMPROVEMENTS

     Under 201.20 (b)(2), the Secretary finds that the following
categories of products and improvements may not be financed with
a Title I property improvement loan. These ineligible
improvements fall under two categories:

      1.     Products or improvements that do not become a
             permanent part of the real property.

      2.     Products or improvements that are considered luxury
             items.

Air conditioner                            Placed in a window, and not
                                           permanently affixed to the
                                           property.
Asbestos siding
Barbecue pits
Barn cleaners
Bath houses
Cabana room
Clothes lines and poles
Debt Consolidation
Deck around Swimming Pool
Demolition                                 Structure must be replaced at
                                           the same time.
Dishwashers (portable)                     Must be part of the sink
Docks, floating
Drills,                                    Equipment type
Dumbwaiters



                                   Attachment
Eligible and Ineligible Improvements




Equipment                                  Used commercially or
                                           industrially; farm or dairy
Exterior hot tubs,
  saunas, spas, or whirpools baths
Fire extinguishers
Flower boxes
Food mixers
Freezer                            Only built-in freezers are
                                   eligible
Kitchen appliances                 Designed or manufactured not
                                   to be built into or
                                   permanently affixed to the
                                   structure.
Grandstands
Greenhouses                        Except commercial
Hangars                            Airplane
Hay dryers
Irrigations systems
Kennels
Landscaping
Lathes
Moving Structures                  Eligible if move is on the
                                   same lot.
Orchards
Outdoor fireplaces
Ovens                              Must be built in.
Penthouses                         Must be an existing penthouse
                                   for improvements to be
                                   eligible.
Photomurals
Satellite dishes
Swimming Pools
Swimming Pool enclosures
Tree Surgery/Removal               Eligible if tree is diseased
                                   and hazard to structure.
Television Antennae
Valance boards
Waterproofing                      Pumping or injecting any
                                   substance in the earth
                                   adjacent to or beneath the
                                   foundation or basement
                                   floor.




                                   Attachment