[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: 24CFR904.119]



[Page 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.  904.119  Homeowners association--condominium.



    If the development is organized as a condominium:

    (a) The LHA at the outset shall own each condominium unit and its 

undivided interest in the common areas;

    (b) All the land, including that land under the housing units, shall 

be a part of the common areas;

    (c) The homeowners association shall own no property but shall 

maintain and operate the common areas for the individual owners of the 

condominium units except that the LHA shall be responsible for 

maintenance until such time as the homeowners association assumes such 

responsibility (see Sec.  904.112(d));

    (d) The percentage of undivided interest attached to each 

condominium unit shall be based on the ratio of the value of the units 

to the value of all units and shall be fixed when the development is 

completed. This percentage shall determine the homeowner's liability for 

the maintenance of the common areas and facilities;

    (e) Each homeowner's vote in the homeowners association shall be 

identical with the percentage of undivided interest attached to his 

unit; and

    (f) The LHA shall not lose its majority voting interest in the 

association as soon as units representing 50 percent of the value of all 

units have been conveyed, unless the law of the state requires control 

to be transferred at a particular time or the LHA so desires. For voting 

purposes, until units representing 75 percent of the value of all units 

have been acquired by homeowners, the total undivided interest 

attributable to the homes owned by the LHA shall be multiplied by three, 

if such weighted voting plan is permitted by state law. Under this plan, 

the LHA shall continue to maintain 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 units 

representing at least 50 percent of the value of all units have been 

acquired by the homeowners.