[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR906.39]

[Page 368-369]
 
                 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 E_Program Submission and Approval
 
Sec. 906.39  Contents of a homeownership program.

    A homeownership program must include the following matters, as 
applicable to the particular factual situation:
    (a) Method of Sale: The PHA should indicate how units will be sold, 
including a description of the exact method of sale, such as, for 
example, fee simple conveyance, lease-purchase, or sale of a cooperative 
share. PHAs may sell units directly to a tenant or eligible family 
directly or via a bona fide lease-purchase arrangement. The PHA must 
indicate whether it, or a PRE will sell units to families directly or 
via such lease-purchase method. If the PHA or PRE will use a lease-
purchase method the proposal should indicate the terms of the lease-
purchase arrangement. The terms of the lease-purchase arrangement shall 
include, but are not limited to the periodic documentation to be 
provided to the family regarding the amount they have accrued toward the 
down payment, and the length of the lease period (with regard to PREs 
the sales must be completed within the statutory 5-year period.);
    (b) Property description. (1) If the program involves only financing 
assistance to the family purchasing the unit, the PHA need not specify 
property addresses, but it must describe the area(s) in which the 
assistance is to be used;
    (2) If the PHA is selling existing public housing, it must describe 
the property, including identification of the property by project 
number, or street address if there is no project number, and the 
specific dwellings to be sold, with bedroom distribution by size and 
type broken down by development;
    (3) If the PHA is acquiring units with 1937 Act funds to sell under 
the program, it must comply with the provisions of Sec. 906.40 
concerning this element of the program;
    (c) Repair or rehabilitation. If applicable, a plan for any repair 
or rehabilitation needed to meet the requirements of Sec. 906.7, based 
on the assessment of the physical condition of the property that is 
included in the supporting documentation. The restriction in 906.5(c) of 
this part applies to such repair or rehabilitation;
    (d) Purchaser eligibility and selection. The standards and 
procedures to be used for homeownership applications and the eligibility 
and selection of purchasers, consistent with the requirements of Sec. 
906.15. If the homeownership program allows application for purchase of 
units by families who are not presently public housing or Section 8 
residents and not already on the PHA's waiting lists for those programs, 
the program must include an affirmative fair housing marketing strategy 
for such families, including specific steps to inform them of their 
eligibility to apply, and to solicit applications from those in the 
housing market who are least likely to apply for the program without 
special outreach, including persons with disabilities;
    (e) Sale and financing. Terms and conditions of sale and financing, 
including any below-market financing under Sec. 906.29;
    (f) Consultation with residents and purchasers. A description of 
resident input obtained during the resident consultation process 
required by the PHA Plan under part 903 of this title. If the PHA is one 
whose Plan does not require information regarding homeownership under 
Sec. 903.11(b)(1) of this title, the PHA must consult with the Resident 
Advisory Board or Boards regarding the homeownership plan, and provide 
the information required in this paragraph;

[[Page 369]]

    (g) Counseling. Counseling, training, and technical assistance to be 
provided to purchasers;
    (h) Sale via PRE. If the program contemplates sale to residents by 
an entity other than the PHA, a description of that entity's 
responsibilities and information demonstrating that the requirements of 
Sec. 906.19 have been met or will be met in a timely fashion;
    (i) Non-purchasing residents. If applicable, a plan for non-
purchasing residents, in accordance with Sec. 906.23;
    (j) Sale proceeds. An estimate of the sale proceeds and an 
explanation of how they will be used, in accordance with Sec. 906.31;
    (k) Records, accounts, and reports. A description of the 
recordkeeping, accounting, and reporting procedures to be used, 
including those required by Sec. 906.33;
    (l) Budget. A budget estimate, showing any rehabilitation or repair 
cost, any financing assistance, and the costs of implementing the 
program, and the sources of the funds that will be used;
    (m) Timetable. An estimated timetable for the major steps required 
to carry out the program;
    (n) Deed restrictions. A deed restriction or covenant running with 
the land that will assure to HUD's satisfaction that the requirements of 
Sec. Sec. 906.27 and 906.15(b) are met.