[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: 24CFR906.40]



[Page 363-364]

 

                 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.  906.40  Supporting documentation.



    The following supporting documentation must be submitted to HUD with 

the proposed homeownership program, as appropriate for the particular 

program:

    (a) Supporting documentation--PREs. In approving homeownership 

programs in which the PHA contemplates selling public housing units to a 

PRE for operation as public housing during the 5 year interim period the 

department will require evidentiary materials including but not limited 

to:

    (1) Organizational documents of the PRE;

    (2) Regulatory and operating agreement between the PHA and PRE 

regarding the provision of operating subsidy and the operation of the 

public housing units in accordance with all applicable public housing 

requirements;

    (3) Management agreement and plan;

    (4) Financing documents, if any;

    (5) A description of the use of operating subsidy during the PRE's 

period of ownership, in the form of an operating pro forma;

    (6) A mixed-finance ACC amendment governing these units;

    (7) A deed restriction or covenant running with the land that will 

assure to HUD's satisfaction that the PRE will operate the units in 

accordance with public housing laws and regulations, including Sec.  

906.19.

    (8) A bond for repairs or proof of insurance to cover any damage to 

the property during the period of PRE ownership and operation;

    (9) Such other materials as may be required by HUD.

    (b) Physical assessment. An assessment of the physical condition of 

the properties, based on the standards specified in Sec.  906.7;

    (c) Feasibility. A statement demonstrating the practical feasibility 

of the program, based on analysis of data on such elements as purchase 

prices, costs of repair or rehabilitation, accessibility costs, if 

applicable, homeownership costs, family incomes, availability of 

financing, and the extent to which there are eligible residents who are 

expected to be interested in purchase (See Sec.  906.45(a));

    (d) PHA performance in homeownership. A statement of the commitment 

and capability of the PHA (and any other entity with substantial 

responsibility for implementing the homeownership program) to 

successfully carry out the homeownership program. The statement must 

describe the PHA's (and other entity's) past experience in carrying out 

homeownership programs for low-income families, and (if applicable) its 

reasons for considering such programs to have been successful. A PHA 

that has not previously implemented a homeownership program for low-

income families instead must submit a statement describing its 

experience in carrying out public housing modernization and development 

projects under part 905 of this title, respectively;

    (e) Nondiscrimination certification. The PHA's or PRE's 

certification that it will administer the plan on a nondiscriminatory 

basis, in accordance with the Fair Housing Act, Title VI of the Civil 

Rights Act of 1964, Executive Order 11063, other authorities cited in 

Sec.  5.105(a) of this title, and the implementing regulations, and will 

assure compliance with those requirements by any other entity that may 

assume substantial responsibilities for implementing the program;

    (f) Legal opinion. An opinion by legal counsel to the PHA, stating 

that counsel has reviewed the program and finds it consistent with all 

applicable requirements of federal, state, and local law, including 

regulations as well as statutes. At a minimum, the attorney must certify 

that the documents to be used will ensure sales only to eligible 

families under Sec.  906.15, compliance with the 5-year PRE sale 

guarantee in Sec.  906.19(d), and compliance with the restriction of use 

of resale proceeds of Sec.  906.27;

    (g) Board resolution. A resolution by the PHA's Board of 

Commissioners, evidencing its approval of the program;

    (h) Section 8(y). In any case where the PHA plans to provide 

families with assistance under the Section 8(y) homeownership option in 

connection with homeownership under this part, a certification that the 

PHA will comply



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with the requirements of the Section 8(y) statute and implementing 

regulations;

    (i) Other information. Any other information that may reasonably be 

required for HUD review of the program. Except for the PHA-HUD 

implementing agreement under Sec.  906.49 and the deed restriction 

required by Sec.  906.39(n), HUD approval is not required for documents 

to be prepared and used by the PHA in implementing the program (such as 

contracts, applications, deeds, mortgages, promissory notes, and 

cooperative or condominium documents), if their essential terms and 

conditions are described in the program. Consequently, those documents 

need not be submitted as part of the program or the supporting 

documentation.