[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR1000.58]



[Page 742]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 1000_NATIVE AMERICAN HOUSING ACTIVITIES--Table of Contents

 

                            Subpart A_General

 

Sec.  1000.58  Are there limitations on the investment of IHBG funds?



    (a) A recipient may invest IHBG funds for the purposes of carrying 

out affordable housing activities in investment securities and other 

obligations as provided in this section.

    (b) The recipient may invest IHBG funds so long as it demonstrates 

to HUD:

    (1) That there are no unresolved significant and material audit 

findings or exceptions in the most recent annual audit completed under 

the Single Audit Act or in an independent financial audit prepared in 

accordance with generally accepted auditing principles; and

    (2) That it is a self-governance Indian tribe or that it has the 

administrative capacity and controls to responsibly manage the 

investment. For purposes of this section, a self-governance Indian tribe 

is an Indian tribe that participates in tribal self-governance as 

authorized under Public Law 93-638, as amended (25 U.S.C. 450 et seq.).

    (c) Recipients shall invest IHBG funds only in:

    (1) Obligations of the United States; obligations issued by 

Government sponsored agencies; securities that are guaranteed or insured 

by the United States; mutual (or other) funds registered with the 

Securities and Exchange Commission and which invest only in obligations 

of the United States or securities that are guaranteed or insured by the 

United States; or

    (2) Accounts that are insured by an agency or instrumentality of the 

United States or fully collateralized to ensure protection of the funds, 

even in the event of bank failure.

    (d) IHBG funds shall be held in one or more accounts separate from 

other funds of the recipient. Each of these accounts shall be subject to 

an agreement in a form prescribed by HUD sufficient to implement the 

regulations in this part and permit HUD to exercise its rights under 

Sec.  1000.60.

    (e) Expenditure of funds for affordable housing activities under 

section 204(a) of NAHASDA shall not be considered investment.

    (f) A recipient may invest its IHBG annual grant in an amount equal 

to the annual formula grant amount less any formula grant amounts 

allocated for the operating subsidy element of the Formula Current 

Assisted Housing Stock (FCAS) component of the formula (see Sec. Sec.  

1000.316(a) and 1000.320) multiplied by the following percentages, as 

appropriate:

    (1) 50% in Fiscal Years 1998 and 1999;

    (2) 75% in Fiscal Year 2000; and

    (3) 100% in Fiscal Years 2001 and thereafter.

    (g) Investments under this section may be for a period no longer 

than two years.