[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: 24CFR904.305]



[Page 341]

 

                 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 D_Homebuyers Association (HBA)

 

Sec.  904.305  Funding of HBA.



    (a) In addition to providing the HBA with noncash contributions such 

as office space and duplicating services, the LHA shall make cash 

contributions for operating expenses of the HBA, in the amount provided 

for in paragraph (b) of this section. Until the project goes into 

management, these contributions shall be made from the development funds 

budgeted for the counseling and training program (see Sec.  904.206). 

Thereafter, these contributions shall be provided for in the annual 

operating budgets of the LHA.

    (b) The cash contributions pursuant to paragraph (a) of this section 

shall be in the amount provided for in the LHA budget (development cost 

budget or annual operating budget, as the case may be) and approved by 

HUD. Such contributions shall be subject to whatever restrictions are 

applied by HUD to the funding of tenant councils generally, but they 

shall not exceed $3 per year per dwelling unit; provided that as an 

incentive to the HBA to provide additional funds from other sources such 

as homebuyer's dues, contributions, revenues from special projects or 

activities, etc., the LHA shall, to the extent approved by HUD in the 

LHA budget, match such additional funds beyond the $3 up to a maximum of 

$4.50, for a total LHA share of $7.50 where the total funding for the 

HBA is $12 or more. The HBA shall not be precluded from seeking to 

achieve total funding in excess of $12 per unit where this can be done 

with additional funds from sources other than the LHA. Furthermore, 

funding by the LHA for the normal expenses of the HBA is not to be 

confused with fees paid pursuant to management services contracts as 

described in Sec.  904.306.