[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: 24CFR811.103]



[Page 38]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

  CHAPTER VIII--OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING-FEDERAL 

 

PART 811_TAX EXEMPTION OF OBLIGATIONS OF PUBLIC HOUSING AGENCIES AND 

RELATED AMENDMENTS--Table of Contents

 

Sec.  811.103  General.



    (a) In order for obligations to be tax-exempt under this subpart the 

obligations must be issued by a PHA in connection with a low-income 

housing project approved by HUD under the Act and the applicable Section 

8 regulations.

    (1) Except as needed for a resident manager or similar requirement, 

all dwelling units in a low-income housing project that is to be 

financed with obligations issued pursuant to this subpart must be 

Section 8 contract units.

    (2) A low-income housing project that is to be financed with 

obligations issued pursuant to this subpart may include necessary 

appurtenances. Such appurtenances may include commerical space not to 

exceed 10% of the total net rentable area.

    (b) Where the parent entity PHA is not the owner of the project, the 

parent entity PHA or other PHA approvable under Sec.  811.104 must agree 

to administer the contract pursuant to an ACC with HUD, and such a PHA 

must agree that in the event there is a default under the contract it 

will pursue all available remedies to achieve correction of the default, 

including operation and possession of the project, if called upon by HUD 

to do so. If the field office finds that the PHA does not have the 

capacity to perform these functions, the Assistant Secretary may approve 

alternative contractual arrangements for performing these functions.