[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR1007.30]

[Page 810-811]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 1007--SECTION 184A LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUSING--Table of Contents
 
Sec. 1007.30  Security for loan.

    (a) In general. A loan guaranteed under section 184A of the Housing 
and Community Development Act of 1992 and this part may be secured by 
any collateral authorized under and not prohibited by Federal or State 
law and determined by the lender and approved by HUD to be sufficient to 
cover the amount of the loan. Eligible collateral may include, but is 
not limited to, the following:
    (1) The property and/or improvements to be acquired, constructed, or 
rehabilitated, to the extent that an interest in such property is not 
subject to any restrictions against alienation applicable to Hawaiian 
Home Lands;
    (2) A security interest in non-Hawaiian Home Lands property;
    (3) Personal property; or
    (4) Cash, notes, an interest in securities, royalties, annuities, or 
any other property that is transferable and whose present value may be 
determined.

[[Page 811]]

    (b) Hawaiian Home Lands property interest as collateral. If a 
property interest in Hawaiian Home Lands is used as collateral or 
security for the loan, the following additional provisions apply:
    (1) Approved Lease. Any land lease for a unit financed under section 
184A of the Housing and Community Development Act of 1992 must be on a 
form approved by both the DHHL and HUD.
    (2) Assumption or sale of leasehold. The lease form must contain a 
provision requiring the DHHL's consent before any assumption of an 
existing lease, except where title to the leasehold interest is obtained 
by HUD through foreclosure of the guaranteed mortgage or a deed in lieu 
of foreclosure. A mortgagee other than HUD must obtain the DHHL's 
consent before obtaining title through a foreclosure sale. The DHHL's 
consent must be obtained on any subsequent transfer from the purchaser, 
including HUD, at foreclosure sale. The lease may not be terminated by 
the lessor without HUD's approval while the mortgage is guaranteed or 
held by HUD.
    (3) Liquidation. The lender or HUD shall only pursue liquidation 
after offering to transfer the account to another eligible Native 
Hawaiian family or the DHHL. The lender or HUD shall not sell, transfer, 
or otherwise dispose of or alienate the property except to another 
eligible Native Hawaiian family or the DHHL.
    (4) Eviction procedures. Before HUD will guarantee a loan secured by 
a Hawaiian Home Lands property, the DHHL must notify HUD that it has 
adopted and will enforce procedures for eviction of defaulted mortgagors 
where the guaranteed loan has been foreclosed.
    (i) Enforcement. If HUD determines that the DHHL has failed to 
enforce adequately its eviction procedures, HUD will cease issuing 
guarantees for loans under this part except pursuant to existing 
commitments. Adequate enforcement is demonstrated where prior evictions 
have been completed within 60 days after the date of the notice by HUD 
that foreclosure was completed.
    (ii) Review. If HUD ceases issuing guarantees for the DHHL's failure 
to enforce its eviction procedures, HUD shall notify the DHHL of such 
action and that the DHHL may, within 30 days after notification of HUD's 
action, file a written appeal with the Field Office of Native American 
Programs (FONAP) Administrator. Within 30 days after notification of an 
adverse decision of the appeal by the FONAP Administrator, the DHHL may 
file a written request for review with the Deputy Assistant Secretary, 
Office of Native American Programs (ONAP).
    Upon notification of an adverse decision by the Deputy Assistant 
Secretary, the DHHL has 30 additional days to file an appeal with the 
Assistant Secretary for Public and Indian Housing. The determination of 
the Assistant Secretary shall be final, but the DHHL may resubmit the 
issue to the Assistant Secretary for review at any subsequent time if 
new evidence or changed circumstances warrant reconsideration.