[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: 24CFR906.11]

[Page 352]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 906--SECTION 5(h) HOMEOWNERSHIP PROGRAM (Eff. until 4-10-03)--Table of Contents
 
Sec. 906.11  Nonroutine maintenance reserve.

    (a) When reserve is required. A nonroutine maintenance reserve shall 
be established for all multifamily properties sold under a homeownership 
plan. For single-family dwellings, such a reserve shall not be required 
if the availability of the funds needed for nonroutine maintenance is 
adequately addressed under the affordability standard prescribed by the 
plan.
    (b) Purpose of reserve. The purpose of this reserve shall be to 
provide a source of reserve funds for nonroutine maintenance (including 
replacement), as necessary to ensure the long-term success of the plan, 
including protection of the interests of the homeowners and the PHA. The 
amounts to be set aside, and other terms of this reserve, shall be as 
necessary and appropriate for the particular homeownership plan, taking 
into account such factors as prospective needs for nonroutine 
maintenance, the homeowners' financial resources, and any special 
factors that may aggravate or mitigate the need for such a reserve.