[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: 24CFR906.9]

[Page 363]
 
                 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. 906.9  Title restrictions and encumbrances on properties sold under 
a homeownership program.

    (a) If the property is subject to indebtedness under the Annual 
Contributions Contract (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.
    (b) Upon sale of a public housing unit to a public housing tenant or 
eligible family, or to a PRE operating the units as non-public housing, 
in accordance with the HUD-approved homeownership program, 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 public housing Operating Fund or Capital 
Fund payments.