[Code of Federal Regulations]
[Title 24, Volume 3]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR572.135]

[Page 181]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 572_HOPE FOR HOMEOWNERSHIP OF SINGLE FAMILY HOMES PROGRAM (HOPE 3)--Table of Contents
 
   Subpart B_Homeownership Program Requirements_Implementation Grants
 
Sec. 572.135  Use of proceeds from sales to eligible families, resale 
proceeds, and program income.

    (a) Proceeds from sales. The recipient or another entity approved by 
HUD must use the proceeds, if any, from the initial sale for costs of 
their HOPE 3 program, including additional homeownership opportunities 
eligible under the HOPE 3 program, improvements to properties under the 
HOPE 3 program, business opportunities for low-income families 
participating in the HOPE 3 program, supportive services related to the 
HOPE 3 program, and other activities approved by HUD, either as part of 
the approved application or later on request. Such proceeds include the 
full consideration received by the recipient or other entity for the 
property, including principal and interest on purchase money loans from 
HOPE 3 funds or match.
    (b) Resale proceeds. Fifty percent of any portion of the net sales 
proceeds that may not be retained by the homeowner under Sec. 
572.130(c), (d), and (e) must be paid to the recipient, or another 
entity approved by HUD, for use for additional homeownership 
opportunities eligible under the HOPE 3 program, improvements to 
properties under the HOPE 3 program, business opportunities for 
homeowners under the HOPE 3 program, supportive services related to the 
HOPE 3 program, and other activities approved by HUD in the approved 
homeownership program or later on request. The remaining 50 percent must 
be collected by the recipient and returned to HUD within 15 days of the 
sale for use under the HOPE 3 program, subject to any limitations 
contained in appropriations Acts.
    (c) Requirements for use of sale and resale proceeds. Sale and 
resale proceeds must be committed for approved activities within one 
year of receipt. All sale and resale proceeds must be accounted for by 
the recipient, and 50 percent of all resale proceeds received by the 
recipient must be returned to HUD, as described in paragraph (b) of this 
section. Recipients may use up to 15 percent of their sale and resale 
proceeds for administrative expenses to expand their HOPE 3 program and 
provide additional homeownership opportunities. Recipients must retain 
records on the use of these funds to the same level of detail as 
required of grant funds under the HOPE 3 system or whatever records HUD 
otherwise prescribes. The recipient, and any other entity approved by 
HUD to administer the sale and resale proceeds, remain responsible to 
comply with the requirements of this part, or such other requirements as 
HUD may prescribe (consistent with then applicable law) in closeout 
procedures or agreements.
    (d) Program income. Any program income, as defined in Sec. 572.5, 
received by the recipient may be added to the funds committed to the 
grant agreement by HUD and the recipient, in accordance with the 
requirements of parts 84 and 85 of this title, as applicable.

[58 FR 36526, July 7, 1993, as amended at 60 FR 36018, July 12, 1995; 62 
FR 34145, June 24, 1997]