[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: 24CFR850.155]



[Page 46]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

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

 

PART 850_HOUSING DEVELOPMENT GRANTS--Table of Contents

 

                      Subpart F_Project Management

 

Sec.  850.155  Securing owner's responsibilities.



    Assistance provided under this part shall constitute a debt of the 

owner (including its successors in interest) to the grantee, and shall 

be secured by a mortgage or other security instrument. The debt shall be 

repayable in the event of a substantive, uncorrected violation by an 

owner of the obligations contained in paragraphs (b), (c), (d) and (e) 

of Sec.  850.151. The instruments securing this debt shall provide for 

repayment to the grantee in an amount equal to the total amount of 

housing development grant assistance outstanding, plus interest which is 

determined by the Secretary by adding two percent to the average yield 

on outstanding marketable long-term obligations of the United States 

during the month preceding the date on which assistance was made 

available. The amount to be repaid shall be reduced by 10 percent for 

each full year in excess of 10 years that intervened between the 

beginning of the term of the owner-grantee agreement and the violation.