[Code of Federal Regulations]

[Title 24, Volume 1]

[Revised as of April 1, 2006]

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

[CITE: 24CFR4.13]



[Page 34]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

PART 4_HUD REFORM ACT--Table of Contents

 

       Subpart A_Accountability in the Provision of HUD Assistance

 

Sec.  4.13  Limitation of assistance subject to section 102(d).



    (a) In making the certification for assistance subject to Section 

102(d), the Secretary will consider the aggregate amount of assistance 

from the Department and from other sources that is necessary to ensure 

the feasibility of the assisted activity. The Secretary will take into 

account all factors relevant to feasibility, which may include, but are 

not limited to, past rates of returns for owners, sponsors, and 

investors; the long-term needs of the project and its tenants; and the 

usual and customary fees charged in carrying out the assisted activity.

    (b) If the Department determines that the aggregate of assistance 

within the jurisdiction of the Department to a housing project from the 

Department and from other governmental sources exceeds the amount that 

the Secretary determines is necessary to make the assisted activity 

feasible, the Department will consider all options available to enable 

it to make the required certification, including reductions in the 

amount of Section 8 subsidies. The Department also may impose a dollar-

for-dollar, or equivalent, reduction in the amount of HUD assistance to 

offset the amount of other government assistance. In grant programs, 

this could result in a reduction of any grant amounts not yet drawn 

down. The Department may make these adjustments immediately, or in 

conjunction with servicing actions anticipated to occur in the near 

future (e.g., in conjunction with the next annual adjustment of Section 

8 rents).

    (c) If an applicant does not meet the $200,000 disclosure 

requirement in Sec.  4.7(b), an applicant must certify whether there is, 

or is expected to be made, available with respect to the housing project 

any other governmental assistance. The Department may also require any 

applicant subject to this subpart A to submit such a certification in 

conjunction with the Department's processing of any subsequent servicing 

action on that project. If there is other government assistance for 

purposes of the two preceding sentences, the applicant must submit such 

information as the Department deems necessary to make the certification 

and subsequent adjustments under Section 102(d).

    (d) The certification under Section 102(d) shall be retained in the 

official file for the housing project.