[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: 24CFR906.9]



[Page 356-357]

 

                 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.  906.9  Title restrictions and encumbrances on properties sold under 

a homeownership program.



    (a) If the property is subject to indebtedness under the Annual 

Contributions Contract (ACC), HUD will continue to make any debt service 

contributions for which it is obligated under the ACC, and the property 

sold will not be subject to the encumbrance of that indebtedness.

    (b) Upon sale of a public housing unit to a public housing tenant or 

eligible family, or to a PRE operating the units as non-public housing, 

in accordance with the HUD-approved homeownership program, HUD will 

execute a release of the title restrictions prescribed by the



[[Page 357]]



ACC. Because the property will no longer be subject to the ACC after 

sale, it will cease to be eligible for public housing Operating Fund or 

Capital Fund payments.