[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: 24CFR968.210]

[Page 516-517]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 968_PUBLIC HOUSING MODERNIZATION--Table of Contents
 
 Subpart B_Comprehensive Improvement Assistance Program (For PHAs That 
                  Own or Operate Fewer Than 250 Units)
 
Sec. 968.210  Procedures for obtaining approval of a modernization program.

    (a) HUD notification. After modernization funds for a particular FFY 
become available, HUD will notify PHAs of the time frame for submission 
of the CIAP application and other pertinent information.
    (b) Distribution of funding. HUD will distribute the available 
funding under this subpart to every eligible PHA that responds to the 
notice issued pursuant to paragraph (a) of this section based on two 
equally-weighted factors: a PHA's share of the total number of units 
eligible for CIAP; and a PHA's share of the total number of bedrooms in 
units eligible for CIAP (with studio units counted as one-bedroom 
units). HUD will also provide a vacancy preference, consisting of an 
additional increment of funding, to PHAs that have modernization 
capability and demonstrate that at least 25% of their units are vacant, 
substandard units (where vacancies are not due to insufficient demand). 
A PHA has modernization capability if it has previously received CIAP 
funding and meets the requirements of Modernization capability as 
defined at Sec. 968.205.
    (c) ACC amendment. HUD and the PHA shall enter into an ACC amendment 
in order for the PHA to draw down modernization funds. The ACC amendment 
shall require low-income use of the housing for not less than 20 years 
from the date of the ACC amendment (subject to sale of homeownership 
units in accordance with the terms of the ACC). The PHA Executive 
Director, where authorized by the Board of Commissioners and permitted 
by State law, may sign the ACC amendment on behalf of the PHA. HUD has 
the authority to condition an ACC amendment (e.g., to require a PHA to 
hire a modernization coordinator or contract administrator to administer 
its modernization program).
    (d) Declaration of trust. As HUD may require, the PHA shall execute 
and file for record a Declaration of Trust, as

[[Page 517]]

provided under the ACC, to protect the rights and interests of HUD 
throughout the 20-year period during which the PHA is obligated to 
operate its developments in accordance with the ACC, the Act, and HUD 
regulations and requirements.

[64 FR 33637, June 23, 1999]