[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: 24CFR906.39]



[Page 361-363]

 

                 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 E_Program Submission and Approval

 

Sec.  906.39  Contents of a homeownership program.



    A homeownership program must include the following matters, as 

applicable to the particular factual situation:

    (a) Method of Sale: The PHA should indicate how units will be sold, 

including a description of the exact method of sale, such as, for 

example, fee simple conveyance, lease-purchase, or sale of a cooperative 

share. PHAs may sell units



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directly to a tenant or eligible family directly or via a bona fide 

lease-purchase arrangement. The PHA must indicate whether it, or a PRE 

will sell units to families directly or via such lease-purchase method. 

If the PHA or PRE will use a lease-purchase method the proposal should 

indicate the terms of the lease-purchase arrangement. The terms of the 

lease-purchase arrangement shall include, but are not limited to the 

periodic documentation to be provided to the family regarding the amount 

they have accrued toward the down payment, and the length of the lease 

period (with regard to PREs the sales must be completed within the 

statutory 5-year period.);

    (b) Property description. (1) If the program involves only financing 

assistance to the family purchasing the unit, the PHA need not specify 

property addresses, but it must describe the area(s) in which the 

assistance is to be used;

    (2) If the PHA is selling existing public housing, it must describe 

the property, including identification of the property by project 

number, or street address if there is no project number, and the 

specific dwellings to be sold, with bedroom distribution by size and 

type broken down by development;

    (3) If the PHA is acquiring units with 1937 Act funds to sell under 

the program, it must comply with the provisions of Sec.  906.40 

concerning this element of the program;

    (c) Repair or rehabilitation. If applicable, a plan for any repair 

or rehabilitation needed to meet the requirements of Sec.  906.7, based 

on the assessment of the physical condition of the property that is 

included in the supporting documentation. The restriction in 906.5(c) of 

this part applies to such repair or rehabilitation;

    (d) Purchaser eligibility and selection. The standards and 

procedures to be used for homeownership applications and the eligibility 

and selection of purchasers, consistent with the requirements of Sec.  

906.15. If the homeownership program allows application for purchase of 

units by families who are not presently public housing or Section 8 

residents and not already on the PHA's waiting lists for those programs, 

the program must include an affirmative fair housing marketing strategy 

for such families, including specific steps to inform them of their 

eligibility to apply, and to solicit applications from those in the 

housing market who are least likely to apply for the program without 

special outreach, including persons with disabilities;

    (e) Sale and financing. Terms and conditions of sale and financing, 

including any below-market financing under Sec.  906.29;

    (f) Consultation with residents and purchasers. A description of 

resident input obtained during the resident consultation process 

required by the PHA Plan under part 903 of this title. If the PHA is one 

whose Plan does not require information regarding homeownership under 

Sec.  903.11(b)(1) of this title, the PHA must consult with the Resident 

Advisory Board or Boards regarding the homeownership plan, and provide 

the information required in this paragraph;

    (g) Counseling. Counseling, training, and technical assistance to be 

provided to purchasers;

    (h) Sale via PRE. If the program contemplates sale to residents by 

an entity other than the PHA, a description of that entity's 

responsibilities and information demonstrating that the requirements of 

Sec.  906.19 have been met or will be met in a timely fashion;

    (i) Non-purchasing residents. If applicable, a plan for non-

purchasing residents, in accordance with Sec.  906.23;

    (j) Sale proceeds. An estimate of the sale proceeds and an 

explanation of how they will be used, in accordance with Sec.  906.31;

    (k) Records, accounts, and reports. A description of the 

recordkeeping, accounting, and reporting procedures to be used, 

including those required by Sec.  906.33;

    (l) Budget. A budget estimate, showing any rehabilitation or repair 

cost, any financing assistance, and the costs of implementing the 

program, and the sources of the funds that will be used;

    (m) Timetable. An estimated timetable for the major steps required 

to carry out the program;

    (n) Deed restrictions. A deed restriction or covenant running with 

the land that will assure to HUD's satisfaction



[[Page 363]]



that the requirements of Sec. Sec.  906.27 and 906.15(b) are met.