[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: 24CFR906.27]



[Page 359-360]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

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

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 906_PUBLIC HOUSING HOMEOWNERSHIP PROGRAMS--Table of Contents

 

                    Subpart D_Program Administration

 

Sec.  906.27  Limitations applicable to net proceeds on the sale of a 

property acquired through a homeownership program.



    (a) Where the family has owned a unit under this part, the following 

rules apply:

    (1) In this section, the term gain from appreciation means the 

financial gain on resale attributable solely to the home's appreciation 

in value over time, and not attributable to government-provided 

assistance or any below-market financing provided under Sec.  906.29.

    (2) In this section, the term net proceeds means the financial gain 

on resale received by the seller after satisfying all amounts owing 

under mortgages, paying closing costs, and receiving an amount equal to 

the down payment (made from the seller's own funds) and principal 

payments on the mortgage(s).

    (3) A PHA must have a policy that provides for the recapture of net 

proceeds in an amount that the PHA considers appropriate under the 

guidelines in this section.

    (4) A PHA must have a policy that provides the recapture of the 

following amounts, if a family resells a homeownership unit it purchased 

under this part during the 5-year period beginning upon purchase of the 

dwelling unit:

    (i) All or a portion of the gain from appreciation; and

    (ii) All or a portion of the assistance provided (which includes 

below-market financing, but which does not include Section 8(y) 

assistance used for mortgage payments under this part) under



[[Page 360]]



the homeownership program to the family to the extent there are net 

proceeds, considering the factors the PHA establishes under paragraphs 

(b)(1)-(7) of this section.

    (b) The PHA's program under this part may provide for consideration 

of any factors the PHA considers appropriate in determining how much of 

the gain from appreciation and assistance to recapture, including but 

not limited to the following:

    (1) The aggregate amount of assistance provided under the 

homeownership program to the family;

    (2) The contribution of equity by the purchasing family;

    (3) The period of time elapsed between purchase by the homebuyer 

under the homeownership program and resale by the homebuyer;

    (4) The reason for resale;

    (5) Any improvements made by the family purchasing under the 

homeownership program;

    (6) Any appreciation in the value of the property; and

    (7) Any other factors that the PHA considers appropriate in making 

the recapture determination under this section.

    (c) After the expiration of the 5-year period in paragraph (a)(4) of 

this section, the PHA must recapture all or a portion of the assistance 

provided under the homeownership program to the family to the extent 

there are net proceeds.

    (d) The PHA must enforce its recapture policy through an appropriate 

form of title restriction.