[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: 24CFR906.31]



[Page 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.  906.31  Requirements applicable to net proceeds resulting from sale.



    (a) PHA use of net proceeds. The PHA must use any net proceeds of 

any sales under a homeownership program remaining after payment of all 

costs of the sale for purposes relating to low-income housing and in 

accordance with its PHA plan.

    (b) PRE use of resale net proceeds. The PHA may require the PRE to 

return the net proceeds from the resale of the units to the PHA. If the 

PHA permits the PRE to retain the net proceeds, the PRE must use these 

proceeds for low-income housing purposes.

    (c) Transfer of unsold unit to PHA. In a situation where the PRE 

fails to sell a unit to an eligible family within 5 years, and the 

provision of Sec.  906.19(d) requiring that the unit be transferred to 

the PHA applies:

    (1) If the unit has not been operated by the PRE as a public housing 

unit at any time during the 5-year period, the PHA may resell the unit 

in accordance with this part or any successor homeownership program of 

the department, or apply to have the unit included in its public housing 

program, if it meets all statutory and regulatory requirements of the 

public housing program; or

    (2) If the unit has been operated by the PRE as a public housing 

unit within such a 5-year period, the PHA must return the unit to 

operation in its regular public housing program.

    (d) Transfer of unsold unit operated as public housing to PHA. Where 

the PRE operates the unit as public housing during the 5-year interim 

period under Sec.  960.40, and fails to sell the unit to an eligible 

family within such 5-year period and the provision of Sec.  906.19(d) 

applies, the PHA must return the unit to operation in its regular public 

housing program.