[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: 24CFR904.115]



[Page 319-320]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 904_LOW RENT HOUSING HOMEOWNERSHIP OPPORTUNITIES--Table of Contents

 

                Subpart B_Turnkey III Program Description

 

Sec.  904.115  Achievement of ownership by subsequent homebuyers.



    (a) Definition. In the event the initial homebuyer and his family 

vacate the home before having acquired ownership, a subsequent occupant 

who enters into a Homebuyer's Ownership Opportunity Agreement and who is 

not a successor pursuant to Sec.  904.107(l)(2) is herein called a 

``subsequent homebuyer.''

    (b) Determination of initial purchase price. The initial purchase 

price for a subsequent homebuyer shall be an amount equal to (1) the 

purchase price shown in the initial homebuyer's Purchase Price Schedule 

as of the date of this Agreement with the subsequent



[[Page 320]]



homebuyer plus (2) the amount, if any, by which the appraised fair 

market value of the home, determined or approved by HUD as of the same 

date, exceeds the purchase price specified in paragraph (b)(1) of this 

section.

    (c) Purchase price schedule. The subsequent homebuyer's Purchase 

Price Schedule shall be the same as the unexpired portion of the initial 

homebuyer's Purchase Price Schedule except that where his purchase price 

includes an additional amount as specified in paragraph (b)(2) of this 

section, the initial homebuyer's Purchase Price Schedule shall be 

followed by an Additional Purchase Price Schedule for such additional 

amount based upon the same monthly debt service and the same interest 

rate as applied to the initial homebuyer's Purchase Price Schedule.

    (d) Residual receipts. After payment in full of the LHA's debt, if 

there are any subsequent homebuyers who have not acquired ownership of 

their homes, the LHA shall continue to pay to HUD all residual receipts 

from the operation of the Project, including payments received on 

account of any Additional Purchase Price Schedules applicable to the 

homes, provided the aggregate amount of such payments of residual 

receipts does not exceed the aggregate amount of annual contributions 

paid by HUD with respect to the Project.