[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: 24CFR983.55]

[Page 666-667]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 983_SECTION 8 PROJECT-BASED CERTIFICATE PROGRAM--Table of Contents
 
           Subpart B_Owner Application Submission to Agreement
 
Sec. 983.55  New construction: HA evaluation and technical processing.

    (a) Before selecting a unit or executing an Agreement, the HA must 
determine that the application is responsive to and in compliance with 
the HA's written selection criteria and procedures, and is otherwise in 
conformity with HUD program regulations and requirements. For example, 
the owner must submit with the application evidence of site control and 
the certification required by Sec. 983.51(d)(5)(v). The HA must 
determine that construction (foundation work) has not begun. The HA must 
determine that the proposed initial gross rents are within the fair 
market rent limitation under Sec. 983.202. The HA must also consider 
whether the

[[Page 667]]

property is eligible housing within the meaning of Sec. 983.7; meets 
the other Federal requirements in Sec. 983.11 and the site and 
neighborhood standards in Sec. 983.6; will be constructed with other 
than assistance under the U.S. Housing Act of 1937 in accordance with 
Sec. 983.9; and, in the case of projects of four or more units, whether 
any work items necessary to meet the accessibility requirements of 
Section 504 of the Rehabilitation Act of 1973 and the Fair Housing 
Amendments Act of 1988 will be completed.
    (b) Before executing an Agreement, the HA must contract with a State 
certified general appraiser and establish the rents in accordance with 
Sec. 983.202 or seek and obtain the HUD-determined initial contract 
rents for any HA owned or controlled units or projects financed with a 
HUD insured or coinsured multifamily mortgage; seek and obtain subsidy 
layering contract rent reviews from HUD or a Housing Credit Agency; seek 
and obtain environmental clearance in accordance with Sec. 983.11; and 
receive approval from the HUD field office to execute an Agreement 
pursuant to the reviews required in Sec. 983.56.
    (c) If the HA administering the ACC or an entity substantially 
controlled by the HA administering the ACC has submitted an application, 
the HA must submit to the HUD field office all owner applications in 
response to the advertisement. The HUD field office will select the 
owner applications to be funded from the applications received in 
response to the HA advertisement.
    (d) If there are no HA-owned or controlled applicants, the HA must 
submit to the HUD field office for the site and neighborhood review only 
those applications determined by the HA to be eligible for further 
processing pursuant to paragraph (a) of this section, and must submit a 
certification to the HUD field office stating that the unit or units 
were selected in accordance with the HA's approved unit selection 
policy. The HA's submission must not exceed the number of uncommitted 
units for which the HA is authorized to project-base assistance in 
connection with new construction. If the number of units contained in 
applications the HA has determined to be eligible for further processing 
exceeds the number for which the HA is authorized to project-base 
assistance, the HA may submit only the top-ranked applications.
    (e) The HUD field office may terminate the Agreement or HAP contract 
upon at least 30 days written notice to the owner by HUD if the HUD 
field office determines that the units were not selected in accordance 
with the HA's approved written selection policy or that the units did 
not initially meet the HUD eligibility requirements.

(Approved by the Office of Management and Budget under control number 
2577-0169)

[60 FR 34717, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 63 
FR 23871, Apr. 30, 1998]