[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: 24CFR811.105]



[Page 39-40]

 

                 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.  811.105  Approval of agency or instrumentality PHA.



    (a) An application to the field office for approval as an agency or 

instrumentality PHA for purposes of this subpart shall:

    (1) Identify the parent entity PHA.

    (2) Establish by evidence satisfactory to HUD that:

    (i) The parent entity PHA meets the requirements of Sec.  811.104.

    (ii) The applicant was properly created pursuant to state law as a 

not-for-profit entity; is an agency or instrumentality PHA, as defined 

in this subpart; has the legal authority to meet the requirements of 

this subpart and applicable Section 8 regulations, as described in its 

application; and the actions required to establish the legal 

relationship with the parent entity PHA prescribed by paragraph (c) of 

this section have been taken and are not prohibited by State law. This 

evidence shall be supported by the opinion of counsel for the applicant 

and counsel for the parent entity PHA.

    (iii) The applicant has, or will have, the administrative capability 

to carry out the responsibilities described in its application.

    (b) The charter or other organic document establishing the applicant 

shall limit the activities to be performed by the applicant, and funds 

and assets connected therewith, to carrying out or assisting in carrying 

out Section 8 projects and other low-income housing projects approved by 

the Secretary. Such organic documents shall provide that the applicant 

shall receive no compensation in connection with the financing of a 

project, except for its expenses. Such expenses shall be subject to 

approval by HUD in determining the development cost, cost of issuance 

and servicing fee, as appropriate. Should the applicant receive any 

compensation in excess of such expenses, the excess is to be placed in 

the debt service reserve.

    (c) The documents submitted by the applicant shall include the 

following with respect to the relationship between the parent entity PHA 

and the agency or instrumentality PHA:

    (1) Provisions requiring approval by the parent entity PHA of the 

charter or other organic instrument and of the bylaws of the applicant, 

which organic instrument and bylaws shall specify that any amendments 

are subject to approval by the parent entity PHA and by HUD.

    (2) Provisions requiring approval by the parent entity PHA of each 

project and of the program and expenditures of the applicant.

    (3) Provisions requiring approval by the parent entity PHA of each 

issue of obligations by the applicant not more than 60 days prior to the 

date of issue and approval of any substantive changes to the terms and 

conditions of the issuance prior to date of issue.

    (4) Provisions requiring the applicant to furnish an audit of all 

its books and records by an independent public accountant to the parent 

entity PHA within 90 days after execution of the contract or final 

endorsement and at



[[Page 40]]



least bennially thereafter; and provisions requiring the parent entity 

PHA to perform an annual review of the applicant's performance and to 

provide HUD with a copy of such review together with any audits 

performed during the reporting period.

    (5) Provisions giving the parent entity PHA right of access at any 

time to all books and records of the applicant.

    (6) Provisions that upon dissolution of the applicant, title to or 

other interest in any real or personal property that is owned by such 

applicant at the time of dissolution shall be transferred to the parent 

entity PHA or to another PHA or to another not-for-profit entity as 

determined by the parent entity PHA and approved by HUD, to be used only 

for purposes approved by HUD.

    (7) Evidence of agreement by the parent entity PHA, or other entity 

as may be provided for in alternative contractual arrangements pursuant 

to Sec.  811.103(b), to accept title to any real or personal property 

pursuant to paragraph (c)(6) of this section.

    (d) Any subsequent amendments to the documents submitted to HUD 

pursuant to this section must be approved by HUD.

    (e) Members, officers, or employees of the parent entity PHA may be 

directors or officers of the applicant unless this is contrary to state 

law.



[44 FR 12360, Mar. 6, 1979, as amended at 61 FR 14461, Apr. 1, 1996]