[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: 24CFR906.3]

[Page 347]
 
                 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. 906.3  General authority for sale.

    A PHA may sell all or a portion of a public housing development to 
eligible residents, as defined under Sec. 906.8, for purposes of 
homeownership, according to a homeownership plan approved by HUD under 
this part. If the development is subject to indebtedness under the ACC, 
HUD will continue to make any debt service contributions for which it is 
obligated under the ACC, and the property sold will not be subject to 
the encumbrance of that indebtedness. (In the case of a development with 
financing restrictions (such as a bond-financed development), however, 
sale is subject to the terms and conditions of the applicable 
restrictions.) Upon sale in accordance with the HUD-approved 
homeownership plan, HUD will execute a release of the title restrictions 
prescribed by the ACC. Because the property will no longer be subject to 
the ACC after sale, it will cease to be eligible for further HUD funding 
for public housing operating subsidies or modernization under the Act 
upon conveyance of title by the PHA. (That does not preclude any other 
types of post-sale subsidies that may be available, under other Federal, 
State, or local programs, such as the possibility of available 
assistance under Section 8 of the Act, in connection with a plan for 
cooperative homeownership, if authorized by the Section 8 regulations.)