[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR906.31]

[Page 366-367]
 
                 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_PUBLIC HOUSING HOMEOWNERSHIP PROGRAMS--Table of Contents
 
                    Subpart D_Program Administration
 
Sec. 906.31  Requirements applicable to net proceeds resulting from sale.

    (a) PHA use of net proceeds. The PHA must use any net proceeds of 
any sales under a homeownership program remaining after payment of all 
costs of the sale for purposes relating to low-income housing and in 
accordance with its PHA plan.
    (b) PRE use of resale net proceeds. The PHA may require the PRE to 
return the net proceeds from the resale of the units to the PHA. If the 
PHA permits the PRE to retain the net proceeds, the PRE must use these 
proceeds for low-income housing purposes.
    (c) Transfer of unsold unit to PHA. In a situation where the PRE 
fails to sell a unit to an eligible family within 5 years, and the 
provision of Sec. 906.19(d) requiring that the unit be transferred to 
the PHA applies:
    (1) If the unit has not been operated by the PRE as a public housing 
unit at any time during the 5-year period, the PHA may resell the unit 
in accordance with this part or any successor homeownership program of 
the department, or apply to have the unit included in its public housing 
program, if it meets all statutory and regulatory requirements of the 
public housing program; or
    (2) If the unit has been operated by the PRE as a public housing 
unit within such a 5-year period, the PHA must

[[Page 367]]

return the unit to operation in its regular public housing program.
    (d) Transfer of unsold unit operated as public housing to PHA. Where 
the PRE operates the unit as public housing during the 5-year interim 
period under Sec. 960.40, and fails to sell the unit to an eligible 
family within such 5-year period and the provision of Sec. 906.19(d) 
applies, the PHA must return the unit to operation in its regular public 
housing program.