[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: 24CFR906.5]



[Page 355-356]

 

                 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 B_Basic Program Requirements

 

Sec.  906.5  Dwelling units and types of assistance that a PHA may make 

available under a homeownership program under this part.





    (a) A homeownership program under this part may provide for sale of:

    (1) Units that are public housing units; and

    (2) Other units owned, operated, assisted, or acquired for 

homeownership sale and that have received the benefit of 1937 Act funds 

or are to be sold with



[[Page 356]]



the benefit of 1937 Act funds (non-public housing units). In selecting 

such units to be sold in a homeownership program under this part, the 

PHA shall not select units such that it could not comply with Sec.  

906.7(a).

    (b) A homeownership program under this part may provide for 

financing to eligible families (see Sec.  905.15 of this title) 

purchasing dwelling units eligible under paragraph (a) of this section 

under the program, or for acquisition of housing units or developments 

by the PHA for sale under the program.

    (1) Under this part, a PHA may use assistance from amounts it 

receives under the Capital Fund under section 9(d) of the 1937 Act or 

from other income earned from its 1937 Act programs to provide 

assistance to public housing residents only to facilitate the purchase 

of homes (e.g., counseling, closing costs, that portion of the down 

payment not required to be supplied from the purchaser's funds under the 

provisions of Sec.  906.15(c), financing, and moving assistance). Public 

housing residents may use such assistance to purchase the unit in which 

they reside, another public housing unit, or a residence not located in 

a public housing development.

    (2) A PHA may provide financing assistance for other eligible 

purchasers from other income, i.e., funds not from 1937 Act programs, 

such as proceeds from selling public housing units, loan repayments, and 

public housing debt forgiveness funding not already committed to another 

purpose.

    (3) In accordance with the rules and regulations governing the 

Section 8(y) Homeownership Option, found in 24 CFR part 982 subpart M, a 

PHA may make its housing choice voucher funds available to provide 

assistance to a family purchasing a unit under this part. A family 

receiving assistance under the Section 8(y) program and participating in 

a homeownership program under this part must meet the requirements of 

both programs.

    (c) A PHA must not use 1937 Act funds to rehabilitate units that are 

not public housing units.