[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: 24CFR941.608]



[Page 386-387]

 

                 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 F_Public/Private Partnerships for the Mixed Finance Development 

                         of Public Housing Units

 

Sec.  941.608  Technical processing and approval.



    (a) Initial screening. HUD shall perform an initial screening to 

determine that all documentation required as part of the proposal under 

Sec.  941.606 has been submitted. HUD will advise the



[[Page 387]]



PHA of any deficiencies in the proposal and indicate that additional 

information will be accepted if it is received by a specified date.

    (b) Technical processing. Upon determining that a proposal is 

acceptable for technical processing, HUD will evaluate the proposal to 

determine:

    (1) Whether the PHA has the legal authority necessary to develop 

public housing units through the establishment of an owner entity and 

the use of mixed-finance strategies in accordance with this subpart;

    (2) Whether the proposed sources and uses of funds set forth in the 

proposal are eligible and reasonable, and whether HUD's preliminary 

assessment of the financing and other documentation establishes to HUD's 

satisfaction that the mixed-finance development is viable and is 

structured so as to adequately protect the Federal investment of funds 

in the development. For this purpose, HUD will consider (among other 

factors) the PHA's proposed methodology for allocating operating 

subsidies on behalf of the public housing units; the projected revenues 

to be generated by any non-public housing units in a mixed-finance 

development; and the l0-year operating pro forma and other information 

contained in the proposal;

    (3) If applicable, whether the public housing units in the proposed 

development will be comparable in size, location, external appearance 

and distribution within the development to the non-public housing units;

    (4) If public housing development funds are to be used to pay for 

more than the pro rata cost of common area improvements, whether the 

proposal ensures that:

    (i) On a per unit basis (taking into consideration the number of 

public housing units for which funds have been reserved) the PHA will 

not exceed TDC limits; and

    (ii) Any common area improvements will benefit all residents of the 

development;

    (5) Whether the proposal complies with all program requirements 

including, if applicable, any comments received from the unit of general 

local government pursuant to section 213 of the Housing and Community 

Development Act of 1974 (42 U.S.C. 1439) (see 24 CFR part 791, subpart 

C); and

    (6) Whether the proposal is approvable following completion by HUD 

of an environmental review in accordance with the requirements of 24 CFR 

part 50.

    (c) Proposal approval. HUD shall send a notification letter to the 

PHA stating that the proposal has been approved or disapproved. For 

approved proposals, the letter shall indicate the approved total 

development cost of the public housing units in the development. HUD 

will also send to the PHA for execution an ACC amendment and/or a grant 

agreement. If the PHA has already executed a front-end ACC amendment, 

HUD will send to the PHA for execution a special ACC amendment for the 

mixed-finance development (and/or a grant agreement). The PHA shall 

execute these documents and return them to HUD for execution.