[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: 24CFR941.102]



[Page 368-369]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 941_PUBLIC HOUSING DEVELOPMENT--Table of Contents

 

                            Subpart A_General

 

Sec.  941.102  Development methods and funding.



    (a) Methods. A PHA may use any generally accepted method of 

development including, but not limited to, conventional, turnkey, 

acquisition with or without rehabilitation, mixed-finance, and force 

account.

    (1) Conventional. Under this method, the PHA is responsible for 

selecting a site or property and designing the project. The PHA 

advertises for competitive bids to build or rehabilitate the development 

on the PHA-owned site. The PHA awards a construction contract in 

accordance with 24 CFR part 85. The contractor receives progress 

payments from the PHA during construction or rehabilitation and a final 

payment upon completion of the project in accordance with the 

construction contract. The conventional method may be used for either 

new construction or rehabilitation.

    (2) Turnkey. The turnkey method involves the advertisement and 

selection of a turnkey developer by the PHA, based on the best housing 

package for a site or property owned or to be purchased by the 

developer. Following HUD approval of the PHA's full proposal, the 

developer prepares the design and construction documents. The PHA and 

the developer execute the contract of sale to implement the PHA's full 

proposal. The developer is responsible for providing a completed housing 

project, which includes obtaining construction financing. Upon 

completion of project construction or rehabilitation in accordance with 

the contract of sale, the PHA purchases the development from the 

developer. This method may be used for either new construction or 

rehabilitation.

    (3) Acquisition. The acquisition method involves a purchase of 

existing property that requires little or no repair work. Any needed 

repair work is completed after acquisition, either by the PHA 

contracting to have the work done or by having the staff of the PHA 

perform the work.

    (4) Mixed-finance. This method involves financing from both public 

and private sources and may involve ownership of the public housing 

units by an entity other than the PHA. This method of development may be 

carried out by a PHA only in accordance with the requirements set forth 

in subpart F.

    (5) Force account. The force account method involves use of PHA 

staff to carry out new construction or rehabilitation. A PHA may only 

develop a full proposal based on the force account method if HUD has 

determined that the PHA has the capability to develop successfully the 

public housing units using this method.

    (b) Funding. A PHA may develop public housing with:

    (1) Development funds reserved by HUD for that purpose;

    (2) Modernization funds under section 14 of the Act (42 U.S.C. 

1437l), to the extent authorized by law and under procedures approved by 

HUD; and/or

    (3) Funds available to it from any other source, consistent with 

Sec.  941.306(e), or as may be otherwise approved by HUD.



[[Page 369]]



    (c) Limit on number of units--(1) General. A PHA may not develop 

public housing pursuant to this part beyond the lesser of the number of 

units that the PHA had under ACC on August 21, 1996, or the number of 

units for which it was receiving operating subsidy on that date, unless 

authorized by HUD. HUD may condition such authorization on the PHA's 

agreement that such incremental units, once developed, will be 

ineligible for capital and/or operating subsidies from HUD.

    (2) Replacement housing units. With respect to units constructed to 

replace public housing units that were demolished or disposed of, a PHA 

may use (in whole or in part) funding from non-HUD sources or from HUD 

funding not provided under the Act. However, development of such units 

must be approved by HUD in advance for them to be eligible for inclusion 

under the ACC.



[61 FR 38016, July 22, 1996, as amended at 67 FR 76101, Dec. 10, 2002]