[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: 24CFR906.5]

[Page 362]
 
                 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 B_Basic Program Requirements
 
Sec. 906.5  Dwelling units and types of assistance that a PHA may make 
available under a homeownership program under this part.


    (a) A homeownership program under this part may provide for sale of:
    (1) Units that are public housing units; and
    (2) Other units owned, operated, assisted, or acquired for 
homeownership sale and that have received the benefit of 1937 Act funds 
or are to be sold with the benefit of 1937 Act funds (non-public housing 
units). In selecting such units to be sold in a homeownership program 
under this part, the PHA shall not select units such that it could not 
comply with Sec. 906.7(a).
    (b) A homeownership program under this part may provide for 
financing to eligible families (see Sec. 905.15 of this title) 
purchasing dwelling units eligible under paragraph (a) of this section 
under the program, or for acquisition of housing units or developments 
by the PHA for sale under the program.
    (1) Under this part, a PHA may use assistance from amounts it 
receives under the Capital Fund under section 9(d) of the 1937 Act or 
from other income earned from its 1937 Act programs to provide 
assistance to public housing residents only to facilitate the purchase 
of homes (e.g., counseling, closing costs, that portion of the down 
payment not required to be supplied from the purchaser's funds under the 
provisions of Sec. 906.15(c), financing, and moving assistance). Public 
housing residents may use such assistance to purchase the unit in which 
they reside, another public housing unit, or a residence not located in 
a public housing development.
    (2) A PHA may provide financing assistance for other eligible 
purchasers from other income, i.e., funds not from 1937 Act programs, 
such as proceeds from selling public housing units, loan repayments, and 
public housing debt forgiveness funding not already committed to another 
purpose.
    (3) In accordance with the rules and regulations governing the 
Section 8(y) Homeownership Option, found in 24 CFR part 982 subpart M, a 
PHA may make its housing choice voucher funds available to provide 
assistance to a family purchasing a unit under this part. A family 
receiving assistance under the Section 8(y) program and participating in 
a homeownership program under this part must meet the requirements of 
both programs.
    (c) A PHA must not use 1937 Act funds to rehabilitate units that are 
not public housing units.