[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: 24CFR904.118]



[Page 320-321]

 

                 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.  904.118  Homeowners association--planned unit development (PUD).



    If the development is organized as a planned unit development:

    (a) Ownership and maintenance of common property. The common areas, 

sidewalks, parking lots, and other common property in the development 

shall be owned and maintained as provided for in the approved planned 

unit development (PUD) program except that the LHA shall be responsible 

for maintenance until such time as the homeowners association assumes 

such responsibility (see Sec.  904.112(d)).

    (b) Title restrictions. The title ultimately conveyed to each 

homebuyer shall be subject to restrictions and encumbrances to protect 

the rights and property of all other owners. The homeowners association 

shall have the right and obligation to enforce such restrictions and 

encumbrances and to assess owners for the costs incurred in connection 

with common areas and property and other responsibilities.

    (c) Votes in association. There shall be as many votes in the 

association as there are homes in the development, and, at the outset, 

all the voting rights shall be held by the LHA. As each home is conveyed 

to the homebuyer, one vote shall automatically go to the homeowner so 

that, when all the homes have been conveyed, the LHA shall no longer 

have any interest in the homeowners association.

    (d) Voting control. The LHA shall not lose its majority voting 

interest in the association as soon as a majority of the homes have been 

conveyed, unless the law of the state requires control to be transferred 

at a particular time, or the LHA so desires. If permitted by state law, 

provision shall be made for each home owned by the LHA to carry three 

votes, while each home owned by a



[[Page 321]]



homeowner shall carry one vote. Under this weighted voting plan, the LHA 

shall continue to have voting control until 75 percent of the homes have 

been acquired by homeowners. However, at its discretion, the LHA may 

transfer voting control to the homeowners when at least 50 percent of 

the homes have been acquired by the homeowners.