[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: 24CFR884.114]



[Page 118]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

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

 

PART 884_SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM, NEW CONSTRUCTION 

SET-ASIDE FOR SECTION 515 RURAL RENTAL HOUSING PROJECTS--Table of Contents

 

            Subpart A_Applicability, Scope and Basic Policies

 

Sec.  884.114  Financing.



    (a) Types. Eligible projects under this program shall be financed 

under Section 515, Title V of the Housing Act of 1949.

    (b) Use of contract as security for financing. (1) An Owner may 

pledge, or offer as security for any loan or obligation, an Agreement or 

Contract entered into pursuant to this part: Provided, however, That 

such security is in connection with a project constructed pursuant to 

this part, and the terms of the financing or any refinancing have been 

approved by HUD. It is the Owner's responsibility to request such 

approval in sufficient time before he needs the financing to permit 

review of the method and terms of the financing and the instrument of 

pledge, offer or other assignment that HUD is requested to approve.

    (2) Any pledge of the Agreement, Contract, or ACC, or payments 

thereunder, shall be limited to the amounts payable under the Contract 

or ACC in accordance with its terms.

    (3) In the event of foreclosure and in the event of assignment or 

sale agreed to by HUD, housing assistance payments shall continue in 

accordance with the Terms of the Contract.