[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: 24CFR983.9]

[Page 643]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 983--SECTION 8 PROJECT-BASED CERTIFICATE PROGRAM--Table of Contents
 
                     Subpart A--General Information
 
Sec. 983.9  Prohibition against new construction or rehabilitation with U.S. Housing Act of 1937 assistance and use of flexible subsidy; pledge of Agreement or 
          HAP contract.

    (a) Assistance may not be attached to any unit which was in the five 
years before execution of the Agreement, or will be, constructed or 
rehabilitated with other assistance under the U.S. Housing Act of 1937 
(e.g., public housing (development or modernization), rental 
rehabilitation grants under 24 CFR part 511, housing development grants 
under 24 CFR part 850, or other Section 8 programs). In addition, a unit 
to which assistance is to be attached under this part 983 may not be 
rehabilitated with flexible subsidy assistance under part 219 of this 
title. HUD may approve attachment of assistance to a unit that was 
rehabilitated with public housing modernization funds before conveyance 
to a resident management corporation under section 21 of the U.S. 
Housing Act of 1937 (42 U.S.C. 1437s) if attachment of project-based 
assistance would further the purposes of the sale of the public housing 
project to the corporation.
    (b) If an owner is proposing to pledge the Agreement or HAP contract 
as security for financing, the owner must submit the financing documents 
to the HA. In determining the approvability of a pledge arrangement, the 
HA must review the documents submitted by the owner to ensure that the 
financing documents do not modify the Agreement or HAP contract, and do 
not contain any requirements inconsistent with the Agreement or HAP 
contract. Any pledge of the Agreement or HAP contract must be limited to 
amounts payable under the HAP contract in accordance with the terms of 
the HAP contract.