cfr_sections
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57 rows where part_number = 248 and title_number = 24 sorted by section_id
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| section_id ▼ | title_number | title_name | chapter | subchapter | part_number | part_name | subpart | subpart_name | section_number | section_heading | agency | authority | source_citation | amendment_citations | full_text |
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| 24:24:2.1.1.2.24.1.211.1 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | A | Subpart A—General | § 248.1 Purpose. | HUD | The purpose of this part is to— (a) Preserve and retain to the maximum extent practicable as housing affordable to low income families or persons those privately owned dwelling units that were produced for such purpose with Federal assistance, without unduly restricting the owners' prepayment rights; (b) Minimize the involuntary displacement of tenants currently residing in such housing; (c) Work in partnership with State and local government and the private sector in the provision and operation of housing that is affordable to very low, low and moderate income families; and (d) Facilitate the sale of housing to residents under a resident homeownership program. | ||||
| 24:24:2.1.1.2.24.1.211.2 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | A | Subpart A—General | § 248.3 Applicability. | HUD | The requirements of subparts B and C of this part apply to any project that is eligible low income housing, as defined in subparts B and C of this part respectively, on or after November 1, 1987, except that such requirements shall not apply to a project which receives assistance under title IV, subtitle B of the Cranston-Gonzalez National Affordable Housing Act in connection with a homeownership program approved by the Commissioner thereunder. | ||||
| 24:24:2.1.1.2.24.1.211.3 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | A | Subpart A—General | § 248.5 Election to proceed under subpart B or subpart C of this part. | HUD | [57 FR 12041, Apr. 8, 1992, as amended at 58 FR 37814, July 13, 1993] | (a) Any owner who has not submitted a notice of intent prior to January 1, 1991, pursuant to either § 248.211 or § 248.105, shall proceed under subpart B of this part. (b) Any owner who has filed a plan of action with the Commissioner on or before October 11, 1990 pursuant to subpart C of this part, regardless of whether or not the Commissioner has approved such plan of action or whether the owner has received incentives thereunder, may proceed under subpart B of this part by submitting a notice of intent to the Commissioner in accordance with § 248.105 within 30 days after publication of revised Appraisal Guidelines or within thirty days after the Commissioner notifies the owner of HUD's final approval of the plan of action, whichever is later. The notice of intent shall state that the owner is exercising its conversion right pursuant to this section. If the owner fails to file a notice of intent within that period, the owner forfeits its right of conversion. In awarding incentives to an owner who elects to proceed under subpart B of this part in accordance with this section, the Commissioner shall take into consideration any incentives which the owner has already received under subpart C of this part. (c) Any owner of housing that becomes eligible low income housing, as defined in subpart B of this part, before January 1, 1991, and who before such date, filed a notice of intent under § 248.211 of subpart C of this part, may, unless a plan of action was submitted after October 11, 1990, elect to proceed under subpart B or under subpart C of this part. An owner must indicate its election by submitting to the Commissioner, within 30 days of the effective date of this part, a notice of election to proceed indicating whether it wishes to proceed under subpart B or subpart C of this part, or proceed under subpart B of this part until completion of the appraisals and then elect either subpart B or subpart C of this part. An owner who chooses to retain its option until after the completion of the appraisals under § 2… | |||
| 24:24:2.1.1.2.24.2.211.1 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.101 Definitions. | HUD | [57 FR 12041, Apr. 8, 1992, as amended at 57 FR 57314, Dec. 3, 1992; 58 FR 37814, July 13, 1993; 59 FR 14369, Mar. 28, 1994; 64 FR 26639, May 14, 1999; 80 FR 75936, Dec. 7, 2015] | Acquisition Loan. A loan or advance of credit made to a qualified purchaser of eligible low income housing and insured by the Commissioner under part 241, subpart E of this chapter. Adjusted Income. Annual income, as specified in part 5 of this title, less allowances specified in the definition of “Adjusted Income” in part 5 of this title. Aggregate Preservation Rent. The extension preservation rent or transfer preservation rent, as defined under this section. Annual Authorized Return. That amount an owner of an eligible low income housing project may receive in distributions from the project each year, plus debt service payments payable each year attributable to the equity take-out portion of any loan approved under the plan of action, expressed as a percentage of the project's extension preservation equity. Bona Fide Offer. A certain and unambiguous offer to purchase an eligible low income housing project pursuant to subpart B of this part made in good faith by a qualified purchaser with the intent that such offer result in the execution of an enforceable, valid and binding contract. A bona fide offer shall include, for purposes of subpart B of this part, a contract of sale and an earnest money deposit, as set forth in § 248.157(g). For mandatory sales under § 248.161, the offer must include a contract of sale, an earnest money deposit and also be for a purchase price which equals the transfer preservation value. Capital Improvement Loan. A direct loan originated by the Commissioner under part 219, subpart C of this chapter. Community-Based Nonprofit Organization. A private nonprofit organization that— (1) Is organized under State or local laws; (2) Has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual; (3) Is neither controlled by, nor under the direction of, individuals or entities seeking to derive profit or gain from the organization. (4) Has applied for, or has a tax exemption ruling from the Internal Revenue Service under section 501(c) … | |||
| 24:24:2.1.1.2.24.2.211.10 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.135 Plans of action. | HUD | [57 FR 12041, Apr. 8, 1992, as amended at 58 FR 37814, July 13, 1993] | (a) Submission. An owner seeking to terminate the low income affordability restrictions through prepayment of the mortgage or voluntary termination under § 248.141, or to extend the low income affordability restrictions on the project under § 248.153, shall submit a plan of action to the Commissioner in the form and manner prescribed in paragraph (d) or (e) of this section respectively, within 6 months after receipt of the information from the Commissioner under § 248.131. (b) Joint Submission. An owner and purchaser seeking a transfer of the project under §§ 248.157 or 248.161 shall jointly submit a plan of action to the Commissioner in the form and manner prescribed in paragraph (e) of this section within six months after the owner's acceptance of a bona fide offer under § 248.157 or the purchaser's making of a bona fide offer under § 248.161. (c) Filing with the State or local government and tenants. The owner shall notify the tenants of the plan of action by posting in each occupied building a summary of the plan of action and by delivery of a copy of the plan of action to the tenant representative, if any. In addition, the summary must indicate that a copy of the plan of action shall be available from the tenant representatives, whose names, addresses and telephone numbers are indicated on the summary, the local HUD field office, and the on-site office for the project, or if one is not available, in the location where rents are collected, for inspection and copying, at a reasonable cost, during normal business hours. Simultaneously with the submission to the Commissioner, the owner shall submit the plan of action to that officer of State or local government to whom the owner submitted a notice of intent under § 248.105(c). The Commissioner shall submit a copy of the plan of action to the chief executive officer of the appropriate agency of such State or local government which shall review the plan of action and advise the tenants of the project of any programs that are available to assist the tenants… | |||
| 24:24:2.1.1.2.24.2.211.11 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.141 Criteria for approval of a plan of action involving prepayment and voluntary termination. | HUD | [57 FR 12041, Apr. 8, 1992, as amended at 58 FR 37815, July 13, 1993; 64 FR 26639, May 14, 1999] | (a) Approval. The Commissioner may approve a plan of action that provides for the termination of the low income affordability restrictions through prepayment of the mortgage or voluntary termination of the mortgage insurance contract only upon a written finding that— (1) Implementation of the plan of action will not— (i) Materially increase economic hardship for current tenants, and will not in any event result in a monthly rental payment by any current tenant that exceeds 30 percent of the monthly adjusted income of the tenant or an increase in the monthly rental payment in any year that exceeds 10 percent (whichever is lower); or in the case of a current tenant who already pays more than such percentage, an increase in the monthly rental payment in any year that exceeds the increase in the Consumer Price Index or 10 percent (whichever is lower); or (ii) Involuntarily displace current tenants (except for good cause) where comparable and affordable housing is not readily available, determined without regard to the availability of Federal housing assistance that would address any such hardship or involuntary displacement; and (2) The supply of vacant, comparable housing is sufficient to ensure that such prepayment will not materially affect— (i) The availability of decent, safe, and sanitary housing affordable to low income and very low income families or persons in the area that the housing could reasonably be expected to serve; (ii) The ability of low income and very low income families or persons to find affordable, decent, safe, and sanitary housing near employment opportunities; or (iii) The housing opportunities of minorities in the community within which the housing is located. (3) There are no open audit findings, open findings of noncompliance with title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d); the Fair Housing Act (42 U.S.C. 3601-3619); Executive Order 11063 (3 CFR 1959-1963 comp., p. 652); the Age Discrimination Act of 1975 (42 U.S.C. 6101-6107); section 504 of the Rehabilitation … | |||
| 24:24:2.1.1.2.24.2.211.12 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.145 Criteria for approval of a plan of action involving incentives. | HUD | [57 FR 12041, Apr. 8, 1992, as amended at 57 FR 57314, Dec. 3, 1992; 58 FR 37815, July 13, 1993] | (a) Approval. The Commissioner may approve a plan of action for extension of the low income affordability restrictions on an eligible low income housing project or for transfer of the housing to a qualified purchaser, other than a resident council acquiring the project under a resident homeownership plan, only upon a finding that— (1) Due diligence has been given to ensuring that the package of incentives set forth in the plan of action is, for the Federal Government, the least costly alternative that is consistent with the full achievement of the purposes of this subpart. (2) The project will be retained as housing affordable for very low, low and moderate income families and persons, as determined under paragraph (a)(8) of this section, for the remaining useful life of the project; (3) Throughout the remaining useful life of the project, adequate expenditures will be made for maintenance and operation of the project and the project meets the housing standards established in § 248.147 as determined by inspections conducted by the Commissioner; (4) Current tenants will not be involuntarily displaced, except for good cause; (5) Any increase in rent contributions for current tenants will be to a level that does not exceed 30 percent of the adjusted income of the tenant or the fair market rent, whichever is lower. However, the rent contributions of any tenants occupying the project at the time of any increase may not be reduced by reason of this paragraph, except with respect to tenants receiving section 8 assistance in accordance with paragraph (a)(7) of this section; (6) Any resulting increase in rents for current tenants (except for increases made necessary by increased operating costs) shall be phased in as follows: (i) If such increase is 30 percent or more, the increase shall be phased in equally over a period of not less than three years, with the first increase occurring upon the effective date of the plan of action, and the subsequent two increases occurring annually thereafter; (ii) If such incre… | |||
| 24:24:2.1.1.2.24.2.211.13 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.147 Housing standards. | HUD | [57 FR 12041, Apr. 8, 1992, as amended at 64 FR 26639, May 14, 1999] | (a) Standards. As a condition to receiving incentives under subpart B of this part, the owner shall agree to maintain the project in accordance with local housing codes and the housing quality standards set forth in § 886.307 of this title. Where a housing quality standard conflicts with local housing codes, the owner shall maintain the project in compliance with the standard that is stricter. (b) Annual inspections. The Commissioner shall inspect each project at least annually in order to determine compliance with the housing quality standards. At least 30 days prior to the inspection, the Commissioner shall notify any tenant representatives, or if none exist, the Commissioner shall provide the owner with a notice to be posted in each affected building, stating the time and date of the inspection and advising any interested tenants that they may accompany HUD personnel on the inspection and/or submit any comments they may have on the physical condition of the project. The Commissioner shall notify the owner of any deficiencies within 30 days following the inspection. The owner shall have 90 days from the date of such notification to correct any deficiencies cited by the Commissioner and shall promptly notify the Commissioner when such deficiencies have been corrected. The Commissioner shall reinspect the project upon such notification or, if the owner does not notify the Commissioner, upon the expiration of the 90-day period. (c) Sanctions for noncompliance. If the Commissioner determines, upon reinspection of the project, that the project is still not in compliance with the standards set forth in paragraph (a) of this section, the Commissioner shall take any action appropriate to bring the project into compliance, including— (1) Directing the mortgagee, with respect to an equity take-out loan provided under part 241 of this chapter, to withhold the disbursement to the owner of any escrowed loan proceeds and requiring that such proceeds be used for repair of the project; and (2) Reduce the amount of th… | |||
| 24:24:2.1.1.2.24.2.211.14 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.149 Timetable for approval of a plan of action. | HUD | (a) Notification of deficiencies. Not later than 60 days after receipt of a plan of action, the Commissioner shall notify the owner in writing of any deficiencies that prevent the plan of action from being approved. Such notice shall describe alternative ways in which the plan may be revised to meet the criteria for approval set forth in § 248.145. (b) Notification of approval. Not later than 180 days after receipt of a plan of action, or such longer period as the owner requests, but not more than 365 days, the Commissioner shall notify the owner in writing whether the plan of action, including any revisions, is approved. If approval is withheld, the notice shall describe— (1) The reasons for withholding approval; and (2) Suggestions to the owner for meeting the criteria for approval. (c) Opportunity to revise. The Commissioner shall give the owner a reasonable opportunity of not more than 60 days to revise the plan of action when approval is denied. If the owner fails to comply with this time period, it shall not be eligible for relief under paragraph (d) of this section. (d) Delayed approval. If the Commissioner fails to approve a plan of action within the time set forth in paragraph (b) of this section, the Commissioner shall provide incentives and assistance under subpart B of this part, to an owner who is entitled to receive such incentives and assistance, in the amount that the owner would have received if the Commissioner had complied with such time limitations. Paragraph (d) of this section does not apply to plans of action that are not approved because of deficiencies. | ||||
| 24:24:2.1.1.2.24.2.211.15 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.153 Incentives to extend low income use. | HUD | [57 FR 12041, Apr. 8, 1992, as amended at 58 FR 37815, July 13, 1993] | (a) Agreements by the Commissioner. After approving a plan of action filed pursuant to § 248.145, from an owner of eligible low income housing that includes the owner's plan to extend the low income affordability restrictions of the project, the Commissioner shall, subject to the availability of appropriations for such purpose, enter into such agreements as are necessary to enable the owner to— (1) Receive the annual authorized return for the project as determined under § 248.121 for each year after the approval of the plan of action; (2) Pay debt service on the federally-assisted mortgage(s) covering the project; (3) Pay debt service on any loan for rehabilitation of the project; (4) Meet project operating expenses; and (5) Establish adequate reserves. (b) Permissible incentives. Such agreements may include one or more of the following incentives, as determined necessary by the Commissioner: (1) Increased access to residual receipts accounts as necessary to enable the owner to realize the annual authorized return; (2) An increase in the rents permitted under an existing project-based section 8 contract; (3) Additional project-based section 8 assistance or an extension of any project-based assistance attached to the housing; (4) An increase in the rents on non-section 8 units occupied by current tenants up to the maximum allowable rents; (5) Financing of capital improvements under part 219 of this chapter; (6) Financing of rehabilitation through provision of insurance for a second mortgage under part 241 of this chapter; (7) Redirection of the Interest Reduction Payment subsidies to a second mortgage for projects which are insured, assisted, or held by the Commissioner or a State or State agency under part 236 of this chapter; (8) Access by the owner to a portion of the preservation equity in the project through provision of insurance for an acquisition or equity loan insured under part 241, subpart E of this chapter or through a non-insured mortgage loan approved by the Commissioner and the mor… | |||
| 24:24:2.1.1.2.24.2.211.16 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.157 Voluntary sale of housing not in excess of Federal cost limit. | HUD | [57 FR 12041, Apr. 8, 1992, as amended at 58 FR 37816, July 13, 1993] | (a) Offer to sell. Where an owner has submitted a second notice of intent under § 248.133 for the purpose of transferring the project to a qualified purchaser, and the transfer preservation rent does not exceed the Federal cost limit, the owner shall offer the housing for transfer as provided in this section. The owner shall not be obligated to accept any offer made under this section, but may instead elect to retain the project and receive incentives under § 248.145. (b) Notification of qualified purchasers. Upon receipt of a second notice of intent to transfer the project to a qualified purchaser, the Commissioner shall notify potential qualified purchasers of the availability of the project for sale, and of the names and addresses of the owner, or of a person representing the owner in the sale of the project, by— (1) Mailing notices to non-profit organizations; (2) Placing notices in the major local newspaper(s) in the jurisdiction in which the project is located; (3) Mailing notices to clearinghouse networks; and (4) Using any other means of notification which the Commissioner determines would be effective to notify potential qualified purchasers of the sale of the project. (c) Right of first offer to priority purchasers. (1) For the 6-month period beginning on the date of receipt by the Commissioner of a second notice of intent under § 248.133, the owner may accept a bona fide offer only from: (i) A resident council intending to purchase the project under §§ 248.173 or 248.175, which has met the requirements for tenant support, pursuant to those sections; (ii) A resident council intending to purchase the project and retain it as rental housing, which has the support of a majority of the tenants; or (iii) A community-based nonprofit organization which has the support of a majority of the tenants. (2) If no bona fide offer to purchase the project is made and accepted during or at the end of the 6-month period specified in paragraph (c)(1) of this section, the owner may offer to sell the project… | |||
| 24:24:2.1.1.2.24.2.211.17 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.161 Mandatory sale of housing in excess of the Federal cost limit. | HUD | (a) In general. With respect to any eligible low income housing for which the transfer preservation rent determined under § 248.121 exceeds the Federal cost limit, the owner shall offer the housing for transfer to qualified purchasers as provided in this section. (b) Applicability of voluntary sale provisions. The provisions of § 248.157, other than paragraphs (a) and (p) of this section thereof, shall be applicable to any sale conducted under this section. If the owner receives an offer to purchase the project for a sale price equal to the transfer preservation value of the project, as determined under § 248.111, the owner shall be obligated to accept the offer upon its receipt and sell the project to the purchaser. If the owner receives an offer to purchase the project for a sale price less than the transfer preservation value of the project, the owner may accept the offer, but is not obligated to do so. Any offer to purchase a project under this section for less than the transfer preservation value must comply with the requirements of a bona fide offer in § 248.101, except for the requirement that the sale price equal the transfer preservation value. At the time of submission of the offer, the potential purchaser must also submit the documentation required in § 248.157(g). (c) Section 8 assistance. Subject to the availability of amounts approved in appropriation acts, the Commissioner shall, for approvable plans of action, provide assistance to qualified purchasers under part 886, subpart A of this title sufficient to produce a gross potential income equal to the amount determined by multiplying 120 percent of the prevailing rents in the relevant local market in which the project is located by the number of units in the project, according to appropriate unit size, and any other incentives authorized under § 248.153 that would have been provided to a qualified purchaser under § 248.157. (d) Grants to qualified purchasers. From amounts made available by Congress, the Commissioner may make grants to as… | ||||
| 24:24:2.1.1.2.24.2.211.18 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.165 Assistance for displaced tenants. | HUD | [57 FR 12041, Apr. 8, 1992, as amended at 64 FR 26639, May 14, 1999] | (a) Section 8 assistance. Each low income family that is displaced as a result of the prepayment of the mortgage, or voluntary termination of an insurance contract, on eligible low income housing shall, subject to the availability of funds, be offered the opportunity to receive tenant-based assistance under the Housing Choice Voucher Program in accordance with part 982 of this title. (b) Notification of Commissioner. The owner of any eligible low income housing project who prepays the mortgage or voluntarily terminates the mortgage insurance contract pursuant to subpart B of this part, shall notify the Commissioner of: (1) The names and addresses of all of the tenants in the project who will be displaced; (2) The size of the unit in which each of the displaced tenants is currently dwelling; and (3) The names of all of the displaced tenants who are special needs tenants, as that term is defined in § 248.101, as well as a statement as to the nature of their special need. The owner shall provide the Commissioner with this information within 30 days of identifying such tenants for displacement, but in no event less than 30 days prior to the date when the tenants must vacate the premises. (c) Relocation of displaced tenants. The Commissioner shall coordinate with public housing agencies to ensure that any very low or low income family displaced from eligible low income housing as the result of prepayment of the mortgage or termination of the mortgage insurance contract on such project is able to acquire a suitable, affordable dwelling unit in the area where the project from which the displaced family is located. The Commissioner, upon receiving information from the owner under paragraph (b) of this section stating that certain tenants will be displaced, shall request from the public housing agencies located in the same area as the affected project, notices of vacancies in other affordable projects which would be suitable for the displaced tenants. The Commissioner shall convey the notices of vacancies to t… | |||
| 24:24:2.1.1.2.24.2.211.19 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.169 Permissible prepayment or voluntary termination and modification of commitments. | HUD | (a) In general. Notwithstanding any limitations on prepayment or voluntary termination under subpart B of this part, an owner may terminate the low income affordability restrictions through prepayment or voluntary termination, subject to compliance with the provisions of § 248.165, under one of the following circumstances: (1) The Commissioner approves a plan of action under § 248.153(a), but does not provide the assistance approved in such plan and contained in an executed use agreement between the Commissioner and the owner, including section 8 assistance or a loan provided under part 219 of this chapter, but not including insurance of a rehabilitation or equity take-out loan under part 241 of this chapter, during the 15-month period beginning on the date of final approval of the plan of action; (2) After the date that the project would have been eligible for prepayment pursuant to the terms of the mortgage, notwithstanding this part, the Commissioner approves a plan of action under § 248.157 or § 248.161, but does not provide the assistance approved in such plan, including section 8 assistance, a loan provided under part 219 of this chapter, a grant provided under § 248.157(o), or a grant under § 248.161(d), before the earlier of: (i) The expiration of the 2-month period beginning on the commencement of the first fiscal year beginning after such final approval; or (ii) The expiration of the 6-month period beginning on the date of final approval. (3) The Commissioner approves a plan of action under §§ 248.157 or 248.161 for any eligible low income housing not covered by paragraph (a)(2) of this section, but does not provide the assistance approved in such plan before the earlier of: (i) The expiration of the 2-month period beginning on the commencement of the first fiscal year beginning after such final approval; or (ii) The expiration of the 9-month period beginning on the date of final approval. (4) An owner who intended to transfer the project to a qualified purchaser under § 248.157 or § 248.161, … | ||||
| 24:24:2.1.1.2.24.2.211.2 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.103 General prepayment limitation. | HUD | (a) Prepayment. An owner of eligible low income housing may prepay, and a mortgagee may accept prepayment of, a mortgage on such project only in accordance with a plan of action approved by the Commissioner. (b) Termination. A mortgage insurance contract with respect to eligible low income housing may be terminated pursuant to § 207.253 of this chapter only in accordance with a plan of action approved by the Commissioner. (c) Foreclosure. A mortgagee of a mortgage insured by the Commissioner may foreclose the mortgage on, or acquire by deed in lieu of foreclosure, any eligible low income housing only if the mortgagee also conveys title to the project to the Commissioner in connection with a claim for insurance benefits. (d) Effect of unauthorized prepayment. A mortgagee's acceptance of a prepayment in violation of paragraph (a) of this section, or the voluntary termination of a mortgage insurance contract in violation of paragraph (b) of this section, shall be null and void and any low income affordability restrictions on the project shall continue to apply to the project. (e) Remedies for unauthorized prepayment. A mortgagee's acceptance of a prepayment in violation of paragraph (a) of this section, or attempt to obtain voluntary termination of a mortgage insurance contract in violation of paragraph (b) of this section, is grounds for administrative action under parts 24 and 25 of this title, in addition to any other remedies available by law, including rescission of the prepayment or reinstatement of the insurance contract. | ||||
| 24:24:2.1.1.2.24.2.211.20 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.173 Resident homeownership program. | HUD | [57 FR 12041, Apr. 8, 1992, as amended at 58 FR 37816, July 13, 1993; 64 FR 26639, May 14, 1999; 80 FR 75936, Dec. 7, 2015] | (a) Formation of resident council. Tenants seeking to purchase eligible low income housing in accordance with §§ 248.157 and 248.161 shall organize a resident council for the purpose of developing a resident homeownership program in accordance with standards established by the Commissioner. In order to fulfill the purposes of this section, the resident council shall work with a public or private nonprofit organization or a public body, including an agency or instrumentality thereof. Such organization shall have sufficient experience to enable it to help the tenants to consider their options and to develop the capacity necessary to own and manage the project, where appropriate, and shall be approved by the Commissioner. (b) Submission of expression of interest. A resident council shall identify itself as such in an expression of interest submitted pursuant to § 248.157 or § 248.161 and shall state that, it is interested in purchasing the project pursuant to a homeownership program. (c) Bona fide offer. When submitting an offer to purchase the project pursuant to this section, the resident council must simultaneously submit a certified list of project tenants representing at least 75 percent of the occupied units in the project, and representing at least 50 percent of all of the units in the project, who have expressed an interest in participating in the homeownership program developed by the resident council. An offer made without this certified list will not be considered a bona fide offer for the purposes of subpart B of this part. (d) Submission of a homeownership program. (1) The resident council shall prepare a homeownership program acceptable to the Commissioner for giving all residents of the project an opportunity to become homeowners. The plan shall describe the major elements of, and schedules for, the homeownership program and demonstrate how the program complies with all applicable requirements of this section. The plan shall also describe the resident council's current abilities and propose… | |||
| 24:24:2.1.1.2.24.2.211.21 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.175 Resident homeownership program—limited equity cooperative. | HUD | [57 FR 12041, Apr. 8, 1992, as amended at 58 FR 37816, July 13, 1993] | (a) Tenants may carry out a resident homeownership program through the purchase of eligible low income housing by a limited equity cooperative and the operation of the project as a limited equity cooperative. (b) The purchase of a project by a limited equity cooperative and the operation of the project by the limited equity cooperative shall be carried out in accordance with the provisions of § 248.173 (a), (b), (c), (d), (except that paragraph (d)(1)(i) of this section shall include a statement of the amount and type of incentives requested, rather than only the amount of grant funds requested), (e), (g)(3), (i) (except paragraphs (i)(1) and (3)), (m) and (n). (c) The purchase and operation of eligible low income housing by a limited equity cooperative under this section shall be carried out in accordance with all provisions of subpart B of this part otherwise, applicable to the transfer and operation of a project with continued low income affordability restrictions, except as provided in this section. | |||
| 24:24:2.1.1.2.24.2.211.22 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.177 Delegated responsibility to State agencies. | HUD | [57 FR 12041, Apr. 8, 1994, as amended at 60 FR 16379, Mar. 30, 1995] | (a) In general. The Commissioner shall delegate some or all responsibility for implementing subpart B of this part to a State housing agency if such agency submits a preservation plan acceptable to the Commissioner. (b) Approval. State preservation plans shall be submitted in such a form and in accordance with such procedures as the Commissioner shall establish. The Commissioner may approve plans that contain: (1) An inventory of low income housing located within the State that is or will be eligible low income housing under subpart B of this part within five years; (2) A description of the agency's experience in the area of multifamily financing and restructuring; (3) A description of the administrative resources that the agency will commit to the processing of plans of action in accordance with subpart B of this part; (4) A description of the administrative resources that the agency will commit to the monitoring of approved plans of action in accordance with subpart B of this part; (5) An independent analysis of the performance of the multifamily housing inventory financed or otherwise monitored by the agency; (6) A certification by the public official responsible for submitting the consolidated plan under 24 CFR part 91 that the proposed activities are consistent with the approved consolidated plan of the State within which the eligible low income housing is located; and (7) Such other certifications or information that the Commissioner determines to be necessary to implement an approved State preservation plan, which may include incentives that are authorized under other provisions of subpart B of this part. (c) Implementation agreements. The Commissioner may enter into any agreements necessary to implement an approved State preservation plan, which may include incentives that are authorized under other provisions of subpart B of this part. (d) Fees. Any State agency with responsibility so delegated under subpart B of this part may not charge any owner of eligible low income housing any fee … | |||
| 24:24:2.1.1.2.24.2.211.23 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.179 Consultation with other interested parties. | HUD | The Commissioner shall confer with any appropriate State or local government agency to confirm any State or local assistance that is available to achieve the purposes of subpart B of this part and shall give consideration to the views of any such agency when making determinations under subpart B of this part. The Commissioner shall also confer with appropriate interested parties that the Commissioner believes could assist in the development of a plan of action that best achieves the purposes of subpart B of this part. | ||||
| 24:24:2.1.1.2.24.2.211.24 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.181 Notice to tenants. | HUD | Except as provided in §§ 248.105 and 248.133, with respect to the first and second notices of intent, with regard to all provisions of subpart B of this part which mandate that information or material be given to the tenants, by the Commissioner, the owner, or a qualified purchaser, or other party, this requirement shall be satisfied where the notifying entity: (a) Posts a copy of the information or material in readily accessible locations within each affected building, or posts notices in each location describing the information or material and specifying a location, as convenient to the tenants as is reasonably practical, where a copy may be examined and copied during reasonable hours; and (b) Supplies a copy of the information or material to a tenant representative, if any. | ||||
| 24:24:2.1.1.2.24.2.211.25 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.183 Preemption of State and local laws. | HUD | [57 FR 12041, Apr. 8, 1992, as amended at 57 FR 57314, Dec. 3, 1992] | (a) In general. No State or political subdivision of a State may establish, continue in effect, or enforce any law or regulation that: (1) Restricts or inhibits the prepayment of any mortgage described in § 248.101 or the voluntary termination of any insurance contract pursuant to § 207.253 of this chapter on eligible low income housing projects; (2) Restricts or inhibits an owner of such projects from receiving the authorized annual return provided under § 248.121; (3) Is inconsistent with any provision of subpart B of this part, including any law, regulation, or other restriction that limits or impairs the ability of any owner of eligible low income housing to receive incentives authorized under subpart B of this part, including authorization to increase rental rates, transfer the project, obtain secondary financing, or use the proceeds of any such incentives; or (4) In its applicability to low income housing is limited only to eligible low income housing for which the owner has prepaid the mortgage or terminated the insurance contract. (b) Effect. Any law, regulation or restriction described in paragraph (a) of this section shall be ineffective and any eligible low income housing exempt from the law, regulation, or restriction, only to the extent that it violates the provisions of this section. (c) Laws of general applicability: contractual restrictions. This section shall not prevent the establishment, continuing in effect, or enforcement of any law or regulation of any State or political subdivision of a State not inconsistent with the provision of this subpart, such as any law or regulation relating to building standards, zoning limitations, health, safety, or habitability standards for housing, rent control, or conversion of rental housing to condominium or cooperative ownership, to the extent such law or regulation is of general applicability to both projects receiving Federal assistance and nonassisted projects. This section shall not preempt, annul or alter any contractual restrictions or ob… | |||
| 24:24:2.1.1.2.24.2.211.3 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.105 Notice of intent. | HUD | (a) Eligibility for filing. An owner of eligible low income housing intending to prepay the mortgage or voluntarily terminate the mortgage insurance contract pursuant to § 248.141, extend the low income affordability restrictions of the housing in accordance with § 248.153, or transfer the housing to a qualified purchaser under § 248.157, may file a notice of intent unless the mortgage covering the project— (1) Continued in default or fell into default on or after the November 28, 1990, and the mortgage has been assigned to the Commissioner as a result of such default; (2) Continued in default or fell into default on or after November 28, 1990, while the mortgage was held by the Commissioner; (3) Fell into default prior to November 28, 1990, if the owner entered into a workout agreement prior to that date, and on or after that date, the owner has defaulted under the workout agreement (and, if the agreement was with an insured mortgagee, the mortgage has been assigned to the Commissioner as a result of the default under the workout agreement); or (4) Fell into default prior to November 28, 1990, but has been current since that date and the owner has not agreed to recompense the appropriate insurance fund for losses sustained by the fund as a result of any work-out or other arrangement agreed to by the Commissioner and the owner with respect to the defaulted mortgage. (b) Filing with the Commissioner. The notice of intent shall be filed with the HUD Field Office in whose jurisdiction the project is located. The notice of intent shall identify the project by name, project number and location. It shall contain a statement indicating whether the owner intends to extend the affordability restrictions on the project by retaining ownership of the project or transferring it to a qualified purchaser, or whether the owner intends to terminate the affordability restrictions on the project through prepayment of the mortgage or termination of the mortgage insurance contract. The notice of intent shall also request the… | ||||
| 24:24:2.1.1.2.24.2.211.4 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.111 Appraisal and preservation value of eligible low income housing. | HUD | [57 FR 12041, Apr. 8, 1992, as amended at 58 FR 4871, Jan. 15, 1993] | (a) Appraisal. Upon receiving a notice of intent indicating an intent to extend the low income affordability restrictions under § 248.153 or transfer the project under § 248.157, the Commissioner shall provide for determination of the preservation values of the project pursuant to this section. (b) Notice. Within 30 days after the filing of a notice of intent to extend the income restrictions or to transfer the project, the Commissioner shall provide the owner with written notice of— (1) The need for, and the rules and guidelines governing, an appraisal of the project; (2) The filing deadline for submission of the appraisal; (3) The need for an appraiser retained by the Commissioner to inspect the project and the project's financial records; and (4) Any delegation to an appropriate State agency, if any, by the Commissioner of responsibilities regarding the performance of an appraisal pursuant to this section. (c) Appraisers. The Commissioner and the owner shall each select and compensate an appraiser who shall: (1) Neither be an employee of the Federal Government nor an employee or officer of any entity that is affiliated with the owner or the mortgagee of record; (2) Be certified by the appropriate State agency under the standards established by the Federal Financial Institutions Reform, Recovery and Enforcement Act of 1989 (12 U.S.C. 1451-1459); and (3) Have six years of experience in the appraisal profession and at least three years experience in the practice of appraising multifamily residential properties; (4) Is not the subject of a charge issued following a reasonable cause determination under the Fair Housing Act (42 U.S.C. 3601-3619). (d) Guidelines. The Commissioner shall provide to the owner and the appraiser retained by the Commissioner guidelines for conducting the appraisal. The guidelines established by the Commissioner shall be consistent with customary appraisal standards. The guidelines shall assume repayment of the existing federally-assisted mortgage(s), termination of the e… | |||
| 24:24:2.1.1.2.24.2.211.5 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.121 Annual authorized return and aggregate preservation rents. | HUD | (a) Annual authorized return. For each eligible low income housing project appraised under § 248.111, the Commissioner shall set an annual authorized return on the project equal to 8 percent of the extension preservation equity. (b) Aggregate preservation rents. For each eligible low income housing project appraised under § 248.111, the Commissioner shall also determine the aggregate preservation rents. The aggregate preservation rents shall be used solely for the purposes of comparison with the Federal cost limit under § 248.123. Actual rents received by the owner (or a qualified purchaser) shall be determined pursuant to §§ 248.153, 248.157, and 248.161. (c) Extension preservation rent. The extension preservation rent shall be the gross potential income for the project, as determined by the Commissioner, that would be required to support— (1) The annual authorized return determined under paragraph (a) of this section; (2) Debt service on any rehabilitation loan for the project, assuming a market rate of interest and customary terms; (3) Debt service on the federally-assisted mortgage(s) for the project; (4) Project operating expenses as determined by the Commissioner; and (5) Adequate reserves. (d) Transfer preservation rent. The transfer preservation rent shall be the gross potential income for the project, as determined by the Commissioner, that would be required to support— (1) Debt service on the loan for acquisition of the project; (2) Debt service on any rehabilitation loan for the project, assuming a market rate of interest and customary terms; (3) Debt service on the federally-assisted mortgage(s) for the project; (4) Project operating expenses as determined by the Commissioner; and (5) Adequate reserves. (e) Adequate reserves and operating expenses. For purposes of this section— (1) Adequate reserves are the amount of funds which, when added to existing reserves, are sufficient to maintain the project, including needed deferred maintenance, at a level that meets the standards s… | ||||
| 24:24:2.1.1.2.24.2.211.6 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.123 Determination of Federal cost limit. | HUD | (a) Initial determination. For each eligible low income housing project appraised under § 248.111, the Commissioner shall determine whether the aggregate preservation rents for the project exceed the amount determined by multiplying the number of dwelling units in the project, according to appropriate unit sizes, by 120 percent of the section 8 existing fair market rent for the appropriate unit sizes. (b) Relevant local markets. If either the extension or transfer preservation rent for a project exceeds the amount determined under paragraph (a) of this section, the Commissioner shall determine whether such extension or transfer preservation rent exceeds the amount determined by multiplying the number of units in the project, according to the appropriate unit sizes, by 120 percent of the prevailing rents in the local market area. The relevant local market, and the prevailing rents in such relevant local market, shall be determined on the basis of the appraisal conducted by the appraiser selected by the Commissioner pursuant to § 248.111 and any other information that the Commissioner determines is appropriate. If there are no comparables in the relevant local market and it is not otherwise possible to determine prevailing rents in that area, the section 8 existing fair market rent shall be the sole measure for determining the Federal cost limit. (c) Effect. The extension or transfer preservation rent for an eligible low income housing project appraised under § 248.111 shall be considered to exceed the Federal cost limit only if the extension or transfer preservation rent exceeds the amount determined under paragraphs (a) and (b) of this section. | ||||
| 24:24:2.1.1.2.24.2.211.7 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.127 Limitations on action pursuant to Federal cost limit. | HUD | (a) Retention of the project. With respect to owners who seek to retain the project, the owner may file a plan of action to receive incentives under § 248.153, except that if the extension preservation rent exceeds the Federal cost limit, the amount of the incentives may not exceed an amount that can be supported by a projected income stream equal to the Federal cost limit. (b) Transfer of the project. With respect to owners who seek to transfer the project— (1) If the transfer preservation rent does not exceed the Federal cost limit, or if the transfer preservation rent exceeds the Federal cost limit and the owner is willing to transfer the project at a price which will result in project rents that, on an aggregate level, do not exceed the Federal cost limit, the owner may file a second notice of intent indicating an intention to transfer the project under § 248.157; or (2) If the transfer preservation rent exceeds the Federal cost limit, the owner may file a second notice of intent to transfer the project under § 248.161 or, if no bona fide offers are received, to prepay the mortgage or terminate the mortgage insurance. | ||||
| 24:24:2.1.1.2.24.2.211.8 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.131 Information from the Commissioner. | HUD | (a) Information to owners terminating affordability restrictions. Within six months after receipt of a notice of intent to terminate the low income affordability restrictions under § 248.141, the Commissioner shall provide the owner with a description of the criteria for such termination and with information that the owner needs to prepare a plan of action. This shall include information concerning the standards under § 248.141 regarding the approval of a plan of action and a list of the Federal incentives authorized under § 248.153 and available to those projects for which a plan of action involving termination of low income affordability restrictions, through prepayment of the mortgage or termination of the mortgage insurance contract, would not be approvable. The Commissioner shall also provide the owner with any other relevant information which the Commissioner may possess. (b) Information to owners extending affordability restrictions. Within nine months of receipt of a notice of intent to extend the low income affordability restrictions under § 248.153 or to transfer the project under § 248.157, the Commissioner shall provide the owner who submitted the notice with— (1) A statement of the preservation values of the project as determined under § 248.111; (2) A statement of the aggregate preservation rents for the project as calculated under § 248.121; (3) A statement of the applicable Federal cost limit for the market area (or relevant local market, if applicable) in which the project is located, and an explanation of the limitations under § 248.127 on the amount of assistance the Commissioner may provide based on such cost limits; (4) A statement of whether either of the aggregate preservation rents exceeds the Federal cost limit; and (5) A direction to file a plan of action and the information necessary to file a plan of action; or (6) A direction to submit a second notice of intent under § 248.133. (c) Information to tenants and State or local governments. The Commissioner shall provide any … | ||||
| 24:24:2.1.1.2.24.2.211.9 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | B | Subpart B—Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 | § 248.133 Second notice of intent. | HUD | (a) Filing. A second notice of intent must be filed by all owners who, after receiving the information provided by the Commissioner in § 248.131, elect to transfer the project under §§ 248.157 or 248.161. (b) Timeliness. A second notice of intent must be submitted not later than 30 days after receipt of the information provided by the Commissioner under § 248.131. If an owner who is required to submit a second notice of intent fails to do so within this time period, the original notice of intent submitted under § 248.105 shall be void and ineffective for purposes of subpart B of this part. (c) Filing with the State or local government and tenants. The owner simultaneously shall file the second notice of intent with that officer of State and local government to whom the owner submitted a notice of intent under § 248.105(c) and with the mortgagee. In addition, the owner shall deliver a copy of the second notice of intent to each tenant representative known to the owner, and if none is known, then to each occupied unit in the project. | ||||
| 24:24:2.1.1.2.24.3.211.1 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | C | Subpart C—Prepayment and Plans of Action Under the Emergency Low Income Preservation Act of 1987 | § 248.201 Definitions. | HUD | [55 FR 38952, Sept. 21, 1990. Redesignated at 57 FR 12041, Apr. 8, 1992, and amended at 57 FR 57314, Dec. 3, 1992; 58 FR 37816, July 13, 1993; 61 FR 5207, Feb. 9, 1996; 64 FR 26639, May 14, 1999] | The terms Fair Market Rent (FMR) and Section 8 are defined in 24 CFR part 5. Adjusted Income. Annual income, as specified in § 251.21 of this chapter, less allowances specified in the definition of Adjusted Income in § 215.1 of this chapter. Allowable Distributions. The amount of cash or other assets that the owner may withdraw from the project under the terms of the regulatory agreement, applicable regulations, and administrative instructions, including the segregation of cash or assets for subsequent withdrawal, and excluding repayment of advances made for reasonable and necessary expenses incident to the operation and maintenance of the project. Capital Improvement Loan. A direct loan originated by the Commissioner under part 219, subpart C of this chapter. Eligible Low Income Housing. Any housing financed by a mortgage— (a) That is— (1) Insured or held by the Commissioner under section 221(d)(3) of the National Housing Act and assisted under part 886, subpart A of this title because of a conversion from assistance under part 215 of this chapter; (2) Insured or held by the Commissioner under part 221 of this chapter and bearing a below market interest rate as provided under § 221.518(b) of this chapter; (3) Insured, assisted, or held by the Commissioner or a State or State agency under part 236 of this chapter; or (4) A purchase money mortgage held by the Commissioner with respect to a project which, immediately prior to HUD's acquisition, would have been classified under paragraph (a) (1), (2), or (3) of this definition; and (b) That, under regulation or contract in effect before November 1, 1987, is, or within one year from the date of the notice of intent would become, eligible for prepayment without the prior approval of the Commissioner. Equity. The Owner's investment in the housing project, as approved or determined by the Commissioner. Equity Loan. A loan insured by the Commissioner under part 241, subpart E of this chapter. Flexible Subsidy Assistance. Assistance provided by t… | |||
| 24:24:2.1.1.2.24.3.211.10 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | C | Subpart C—Prepayment and Plans of Action Under the Emergency Low Income Preservation Act of 1987 | § 248.223 Alternative State strategy. | HUD | (a) The Commissioner may approve a State strategy providing for State approval of plans of action that involve termination of low income affordability restrictions only upon finding that it is a practicable statewide strategy that ensures at a minimum that— (1) Current tenants will not be involuntarily displaced (except for good cause); (2) Housing opportunities for minorities will not be adversely affected in the communities in which the housing is located; (3) Any increase in rent for current tenants will be to a level that does not exceed 30 percent of the adjusted income of the tenants or fair market rent, whichever is lower, and any increase not necessitated by increased operating costs shall be phased in equally over not less than 3 years if the increase exceeds 10 percent; (4) Housing approved under the State strategy will remain affordable to very low income, low income and moderate income families for not less than the remaining term of the mortgage, if the housing is to be made available for rental use, or for not less than 40 years, if the housing is to be made available for homeownership; (5)(i) Not less than 80 percent of all units in eligible low income housing approved under the State strategy will be retained as affordable to families or persons meeting the income eligibility standards for initial occupancy that applied to housing on January 1, 1987; and (ii) Not less than 60 percent of the units in any one project will remain available to and affordable by such families or persons, within which not less than 20 percent of the units will remain available to and affordable by very low income families; (6) Expenditures for rehabilitation, maintenance and operation will be at a level necessary to maintain the housing as decent, safe and sanitary and for the period specified in paragraph (a)(4) of this section; (7) Not less than 25 percent of new assistance required to maintain the housing as available to and affordable by low income families in accordance with this section shall be provided t… | ||||
| 24:24:2.1.1.2.24.3.211.11 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | C | Subpart C—Prepayment and Plans of Action Under the Emergency Low Income Preservation Act of 1987 | § 248.231 Incentives to extend low income use. | HUD | The Commissioner may agree to provide one or more of the following incentives to induce the project owner to extend the low income use of the project, if the Commissioner determines that such incentives are warranted under the standards in § 248.233 of this part: (a) An increase in the allowable distribution, or other measures to increase the rate of return; (b) Revisions to the method of calculating equity; (c) Increased access to residual receipts funds or excess reserve for replacements funds; (d) Provision of insurance for an equity loan; (e) An increase in the rents permitted under an existing section 8 contract, within statutory and regulatory limits otherwise applicable, or (subject to the availability of amounts provided in appropriations Acts) additional assistance under section 8 or an extension of any project-based assistance attached to the housing; (f) Provision of a capital improvement loan; (g) Other actions to facilitate a transfer or sale of the housing to a qualified nonprofit organization, limited equity tenant cooperative, public agency, or other entity acceptable to the Commissioner, such as expedited review of a request for approval of a transfer of physical assets; (h) Provision of flexible subsidy assistance; (i) Termination of HUD's limitations on distributions, and release of residual receipts and reserve for replacements funds, through prepayment of the mortgage; and (j) Any other incentives for which the owner is eligible. | ||||
| 24:24:2.1.1.2.24.3.211.12 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | C | Subpart C—Prepayment and Plans of Action Under the Emergency Low Income Preservation Act of 1987 | § 248.233 Approval of a plan of action that includes incentives. | HUD | [55 FR 38952, Sept. 21, 1990. Redesignated and amended at 57 FR 12041, 12060, Apr. 8, 1992] | The Commissioner may approve a plan of action that includes incentives, whether or not the plan of action allows for the prepayment of the mortgage, only upon a finding that— (a) After taking into account local market conditions, the incentives are necessary to achieve the purposes of this part; (b) The incentives are necessary to provide a fair rate of return to the owner. Incentives will only be provided in cases where the project's current use does not represent its highest and best use; (c) The incentives are the least costly alternative for the Federal government to achieve the purposes of this part with respect to the housing; (d) Binding commitments have been made to ensure that— (1) The housing will be retained as housing affordable for very low income families, low-income families, and moderate income families for the remaining term of the mortgage; (2) Throughout the remaining term of the mortgage, adequate expenditures will be made for the proper maintenance and operation of the housing; (3) Current tenants will not be involuntarily displaced (except for good cause); (4) Any increase in rent contributions for current tenants will be to a level that does not exceed 30 percent of the adjusted income of the tenant or the fair market rent, whichever is lower; (5) Any resulting increase in rents for current tenants (except for increases made necessary by increased operating costs) will be phased in equally over a period of not less than 3 years, if the increase is 30 percent or more, and will be limited to not more than 10 percent per year, if the increase is more than 10 percent but less than 30 percent; (6) Subject to the availability of funds, the Commissioner shall provide, and the owner shall accept, assistance under section 8 if the Commissioner determines that such assistance is necessary to mitigate any adverse effect of the rent increases on current tenants eligible for section 8 assistance; and (7) Rents for units becoming available to new tenants will be at levels approved by the Commi… | |||
| 24:24:2.1.1.2.24.3.211.13 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | C | Subpart C—Prepayment and Plans of Action Under the Emergency Low Income Preservation Act of 1987 | § 248.234 Section 8 rental assistance. | HUD | [55 FR 38952, Sept. 21, 1990. Redesignated and amended at 57 FR 12041, 12060, Apr. 8, 1992] | (a) When providing rental assistance under section 8, the Commissioner may enter into a contract with an owner, contingent upon the future availability of appropriations for the purpose of renewing expiring contracts for rental assistance as provided in appropriations Acts, to extend the term of such rental assistance for such additional period or periods as is necessary to carry out an approved plan of action. (b) The contract and the approved plan of action shall provide that, if the Commissioner is unable to develop a revised package of incentives providing benefits to the owner comparable to those received under the original approved plan of action, the Commissioner, upon the request of the owner, shall take the following actions (subject to the limitations under the following paragraphs): (1) Modification of the binding commitments made pursuant to § 248.233(d) that are dependent on such rental assistance. (2) If action under paragraph (b)(1) is not feasible, release of an owner from the binding commitments made pursuant to § 248.233(d) that are dependent on such rental assistance. (3) If actions under paragraphs (b)(1) and (2) would, in the determination of the Commissioner, result in the default of the insured loan, approval of the revised plan of action, notwithstanding § 248.221, that involves the termination of low-income affordability restrictions. (c) The approved plan of action shall specify actions that the Commissioner and the owner shall take to ensure that any tenants displaced as a result of actions taken under paragraph (b) of this section are relocated to affordable housing. (d) At least 30 days prior to making a request under the preceding sentence, an owner shall notify the Commissioner of the owner's intention to submit the request. The Commissioner shall have a period of 90 days following receipt of such notice to take action to extend the rental assistance contract and to continue the binding commitments under paragraph (b). | |||
| 24:24:2.1.1.2.24.3.211.14 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | C | Subpart C—Prepayment and Plans of Action Under the Emergency Low Income Preservation Act of 1987 | § 248.241 Modification of existing regulatory agreements. | HUD | (a) If a plan of action is not approved within 300 days after initial submission, the Commissioner may, upon request of the owner and upon making a determination that the project's current use does not represent its highest and best use, modify existing regulatory agreements to— (1) Prevent involuntary displacement of current tenants (except for good cause); (2) Ensure that adequate expenditures will be made for maintenance and operation of the housing; (3) Extend (subject to the availability of funds) any expiring project-based assistance on the housing for the term of the agreement; (4) Permit an increase in the allowable distribution that could be accommodated by an increase in the rents on occupied units to a level no higher than 30 percent of the adjusted income of the tenants, as determined by the Commissioner, except that rents shall not exceed the fair market rent, and any resulting increase in rents for current tenants shall be phased in equally over a period of no less than 3 years, unless such increase is less than 10 percent; and (5) Ensure that units becoming vacant during the term of the agreement are made available in accordance with § 248.233(d)(7) of this part. (b) Expiration. Agreements entered into under this section shall expire on February 5, 1992, unless earlier superseded by an agreement implementing a HUD-approved plan of action. Upon such expiration of the agreement on February 5, 1992, the housing covered by the agreement shall be subject to any law then affecting low income affordability restrictions. | ||||
| 24:24:2.1.1.2.24.3.211.15 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | C | Subpart C—Prepayment and Plans of Action Under the Emergency Low Income Preservation Act of 1987 | § 248.251 Consultation with other interested parties. | HUD | The Commissioner will confer with any appropriate State or local government agency to confirm any State or local assistance that is available to achieve the purposes of this part and will give consideration to the views of the State or local agency when making the determinations under §§ 248.221 and 248.233 of this part. The Commissioner also will confer with other interested parties that the Commissioner believes could assist in the development of a plan of action that best achieves the purposes of this part. | ||||
| 24:24:2.1.1.2.24.3.211.16 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | C | Subpart C—Prepayment and Plans of Action Under the Emergency Low Income Preservation Act of 1987 | § 248.261 Agreements implementing plans of action and State strategies. | HUD | The Commissioner is authorized to enter into agreements, including those for the provision of incentives, necessary to implement any plan of action or State strategy approved by the Commissioner under this part. | ||||
| 24:24:2.1.1.2.24.3.211.2 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | C | Subpart C—Prepayment and Plans of Action Under the Emergency Low Income Preservation Act of 1987 | § 248.203 General prepayment limitation. | HUD | (a) An owner of eligible low income housing may prepay, and a mortgagee may accept prepayment of, a mortgage on such housing only in accordance with a plan of action approved by the Commissioner. (b) A mortgage insurance contract with respect to eligible low income housing may be terminated pursuant to section 229 of the National Housing Act only in accordance with a plan of action approved by the Commissioner. (c) A mortgagee's acceptance of a prepayment in violation of paragraph (a) or termination of a mortgage insurance contract in violation of paragraph (b) of this section is grounds for administrative action under parts 24 and 25 of this title, in addition to any other remedies available by law, including rescission of the prepayment or reinstatement on the insurance contract. | ||||
| 24:24:2.1.1.2.24.3.211.3 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | C | Subpart C—Prepayment and Plans of Action Under the Emergency Low Income Preservation Act of 1987 | § 248.211 Notice of intent to prepay. | HUD | [55 FR 38952, Sept. 21, 1990. Redesignated at 57 FR 12041, Apr. 8, 1992, and amended at 58 FR 37816, July 13, 1993] | (a) An owner of eligible low-income housing seeking to prepay its mortgage or to negotiate changes in the terms of the mortgage or regulatory agreement in accordance with this part, including termination of the insurance contract pursuant to section 229 of the National Housing Act, shall file a notice of intent with the HUD field office in whose jurisdiction the project is located, and shall file a duplicate copy with the HUD Headquarters Office of Multifamily Housing Management, 451-7th Street, SW., Washington, DC 20410. The notice of intent shall identify the project by name, project number and location, briefly describe the owner's plans for the project, including any timetables or deadlines for actions to be taken, and the reason the owner seeks to prepay the mortgage or change the terms of the mortgage or regulatory agreement, and briefly describe any contacts that the owner has made or is making with other governmental agencies or other interested parties in connection with the notice of intent. (b) An owner simultaneously shall file the notice of intent with: (1) The chief executive officer of the appropriate State or local government in which the project is located, or any officer designated by executive order or State or local law to receive such information; (2) Each tenant in the project; and (3) The mortgagee. In addition, the owner shall post a copy of the notice of intent in each occupied building in the project. (c) Upon receipt of a notice of intent, the Commissioner will provide the owner with information that the owner needs to prepare a plan of action. This information shall include information regarding the Commissioner's standards under § 248.221 of this part regarding the approval of a plan of action involving termination of low income affordability restrictions, and any relevant market area and demographic information that the Secretary has custody of and that the owner may use in preparing the plan of action; in addition, it shall include at a minimum a list of the Federal incentives… | |||
| 24:24:2.1.1.2.24.3.211.4 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | C | Subpart C—Prepayment and Plans of Action Under the Emergency Low Income Preservation Act of 1987 | § 248.213 Plan of action. | HUD | [55 FR 38952, Sept. 21, 1990. Redesignated and amended at 57 FR 12041, 12060, Apr. 8, 1992; 58 FR 37816, July 13, 1993] | (a) Preparation and submission. The owner shall submit the plan of action to the Commissioner in such form and manner as the Commissioner shall prescribe. The owner may submit the plan of action simultaneously to any appropriate State or local government agency, which shall, in reviewing the plan, consult with representatives of the tenants of the housing. An owner shall submit the plan of action to the Commissioner in such form and manner as the Commissioner shall prescribe. The owner shall notify the tenants of the plan of action by posting in each occupied building a summary of the plan of action and by delivery of a copy of the plan of action to the tenant representative, if any. In addition, the summary must indicate that a copy of the plan of action shall be available from the tenant representatives, whose names, addresses and telephone numbers are indicated on the summary, the local HUD field office, and the on-site office for the project, or if one is not available, in the location where rents are collected, for inspection and copying, at a reasonable cost, during normal business hours. Simultaneously with the submission to the Commissioner, the owner shall submit the plan of action to that officer of State or local government to whom the owner submitted a notice of intent under § 248.211(b). The summary of the plan of action posted by the owner and the copies of the plan of action submitted to the tenant representative and the officer of State or local government shall all state that, upon request, the tenants and the State or local government, may obtain from the owner or from the local HUD field office a copy of all documentation supporting the plan of action except for that documentation deemed “proprietary information” under § 248.101. (b) Contents. The plan of action shall include: (1) A description of any proposed changes in the status or terms of the mortgage or regulatory agreement, which may include a request for incentives to extend the low income use of the housing, as authorized under §… | |||
| 24:24:2.1.1.2.24.3.211.5 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | C | Subpart C—Prepayment and Plans of Action Under the Emergency Low Income Preservation Act of 1987 | § 248.215 Notification of deficiencies. | HUD | Not later than 60 days after receipt of a plan of action, the Commissioner will notify the owner in writing of any deficiencies that prevent the plan of action from being approved. If deficiencies are found, the notice shall describe ways, if any, in which the plan of action could be revised to meet the criteria for approval. | ||||
| 24:24:2.1.1.2.24.3.211.6 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | C | Subpart C—Prepayment and Plans of Action Under the Emergency Low Income Preservation Act of 1987 | § 248.217 Revisions to plan of action. | HUD | [58 FR 37817, July 13, 1993] | The owner may from time to time revise the plan of action before its approval as may be necessary to obtain the commissioner's approval thereof. An owner shall submit any revision to the Commissioner, and provide a copy of the revision and all documentation supporting the revision except for that documentation deemed “proprietary information” under § 248.101, to the parties, and in the manner, specified in § 248.213(a). | |||
| 24:24:2.1.1.2.24.3.211.7 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | C | Subpart C—Prepayment and Plans of Action Under the Emergency Low Income Preservation Act of 1987 | § 248.218 Tenant notice and opportunity to comment. | HUD | When the owner and the Commissioner have reached preliminary agreement on the terms of a plan of action, the Commissioner shall prepare a summary of such terms and the anticipated impact of the plan of action on the current tenants. The owner shall send a copy of the summary to each tenant in the project, and shall post a copy of the summary in each occupied building in the project. The summary shall notify tenants that they have sixty calendar days in which to submit any comments to the Commissioner, who shall take any such comments into account before giving final approval to the plan of action. | ||||
| 24:24:2.1.1.2.24.3.211.8 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | C | Subpart C—Prepayment and Plans of Action Under the Emergency Low Income Preservation Act of 1987 | § 248.219 Notification of approval. | HUD | (a) Not later than 180 days after initial receipt of a plan of action, or within such longer period as the owner requests, the Commissioner shall notify the owner in writing whether the plan of action, including any revisions, is approved. (b) If approval is withheld, the notice will— (1) Describe the reasons for withholding approval, including prolonged delay by the owner in submitting a revised plan of action; (2) Describe the actions that could be taken to meet the criteria for approval; and (3) Afford the owner a reasonable opportunity to revise the plan of action and seek approval. | ||||
| 24:24:2.1.1.2.24.3.211.9 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | C | Subpart C—Prepayment and Plans of Action Under the Emergency Low Income Preservation Act of 1987 | § 248.221 Approval of a plan of action that involves termination of low income affordability restrictions. | HUD | [55 FR 38952, Sept. 21, 1990. Redesignated and amended at 57 FR 12041, 12060, Apr. 8, 1992] | The Commissioner may approve a plan of action that involves termination of the low income affordability restrictions only upon a written finding that— (a) Implementation of the plan of action will not materially increase economic hardship for current tenants (and will not in any event result in: (1) A monthly rental payment by a current tenant that exceeds 30 percent of the monthly adjusted income of the tenant or an increase in the monthly rental payment in any year that exceeds 10 percent, whichever is lower, or (2) in the case of a current tenant who already pays more than such percentage, an increase in the monthly rental payment in any year that exceeds the increase in the Consumer Price Index or 10 percent, whichever is lower) or involuntarily displace current tenants (except for good cause) where comparable and affordable housing is not readily available, determined without regard to the availability of Federal housing assistance that would address any such hardship or involuntary displacement. Notwithstanding this limitation, the Commissioner may provide housing assistance to tenants if such assistance is not essential to the Commissioner's determination that the requirements of this paragraph have been met. The owner will agree to execute and allow the recordation of use agreements, where such agreements are necessary to safeguard current tenants against such adverse effects. Such use agreements will include a requirement that the owner comply with those provisions of part 247 of this chapter which relate to evictions; and (b)(1) The supply of vacant, comparable housing is sufficient to ensure that the prepayment will not materially affect— (i) The availability of decent, safe and sanitary housing affordable to low-income and very low income families in the area that the housing could reasonably be expected to serve; (ii) The ability of low-income and very low income families to find decent, safe and sanitary housing near employment opportunities; or (iii) The housing opportunities of minorities in … | |||
| 24:24:2.1.1.2.24.4.211.1 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | D | Subpart D—State Preservation Project Assistance | § 248.300 General. | HUD | Upon application by a State agency or a local public housing agency, the Commissioner may make available assistance for use in preventing the loss of housing affordable for low and moderate income families that is assisted under a State program under the terms of which the owner may prepay a State assisted or subsidized mortgage on such housing. | ||||
| 24:24:2.1.1.2.24.4.211.2 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | D | Subpart D—State Preservation Project Assistance | § 248.301 Initial application. | HUD | A State agency shall make an initial application to the Commissioner which: (a) Describes the manner by which the State housing program provides mortgage assistance or subsidy to private mortgagors to provide housing opportunities for low and moderate income families; (b) Includes copies of the authorizing legislation, any implementing regulations and any administrative guidance provided to owners; (c) Includes a comprehensive description of the terms and conditions under which a private owner may prepay the assisted or subsidized mortgage without the prior consent of the State agency; (d) Includes a complete set of pro forma mortgage and/or regulatory documents which evidence an owner's ability to prepay the assisted or subsidized mortgage without the consent of the State agency; (e) Includes a list of all properties assisted under the State or local housing program whose owners are eligible to prepay the assisted or subsidized mortgages without the consent of the State agency. | ||||
| 24:24:2.1.1.2.24.4.211.3 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | D | Subpart D—State Preservation Project Assistance | § 248.303 Approval of a State agency's initial application. | HUD | (a) The Commissioner will evaluate the State agency's application and will notify the State agency within 90 days of receipt that the program and properties qualify under subpart D of this part or that the program and properties do not qualify under subpart D of this part. (b) If the Commissioner determines that the program and projects do not qualify under subpart D of this part, it will state the reasons why the program and properties do not qualify and will give the State agency an opportunity to provide additional information, as the Commissioner determines, which would assist the Commissioner in qualifying the program and properties. | ||||
| 24:24:2.1.1.2.24.4.211.4 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | D | Subpart D—State Preservation Project Assistance | § 248.305 Applicability of subpart B of this part. | HUD | The provisions of subpart B of this part shall be applicable to any application of a State agency or local housing authority for assistance under subpart D of this part, except the following provisions: Sec. 248.103 General prepayment limitation. 248.105 Notice of intent. 248.131 Information from the Commissioner: Only paragraph (a). 248.141 Criteria for approval of a plan of action involving prepayment and voluntary termination. 248.153 Incentives to extend low income use: Only paragraphs (a)(7), (d) and (e). 248.165 Assistance for displaced tenants. 248.169 Permissible prepayment or voluntary termination and modification of commitments. 248.173 Resident homeownership program: Only paragraph (s). 248.177 Delegated responsibility to State agencies. Sec. 248.103 General prepayment limitation. 248.105 Notice of intent. 248.131 Information from the Commissioner: Only paragraph (a). 248.141 Criteria for approval of a plan of action involving prepayment and voluntary termination. 248.153 Incentives to extend low income use: Only paragraphs (a)(7), (d) and (e). 248.165 Assistance for displaced tenants. 248.169 Permissible prepayment or voluntary termination and modification of commitments. 248.173 Resident homeownership program: Only paragraph (s). 248.177 Delegated responsibility to State agencies. | ||||
| 24:24:2.1.1.2.24.4.211.5 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | D | Subpart D—State Preservation Project Assistance | § 248.307 Authority to process and approve notices of intent and plans of action. | HUD | (a) Delegation of authority. State agencies which regulate or otherwise supervise owners of projects with State assisted or subsidized mortgages shall have the authority, reserved to the Commissioner under subpart B of this part, to process and approve all notices of intent and plans of action submitted to the State agency or local housing authority under subpart D of this part. State agencies may redelegate such authority to local housing authorities at their discretion. (b) Designation of processing agency. The Executive Director of the State agency whose State assisted or subsidized mortgage program has been approved under § 248.303 shall inform all owners of projects with State assisted or subsidized mortgages that the State agency or a designated local housing authority shall accept and process notices of intent and plans of action. | ||||
| 24:24:2.1.1.2.24.4.211.6 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | D | Subpart D—State Preservation Project Assistance | § 248.311 Notice of intent. | HUD | (a) Eligibility for filing. An owner of a project with a State assisted or subsidized mortgage intending to extend the low income affordability restrictions of the housing in accordance with § 248.153 or transfer the housing to a qualified purchaser under § 248.157 may file a notice of intent. (b) Filing with the State agency. The notice of intent shall be filed with the agency specified in § 248.307(b) or the agency which regulates or otherwise supervises the State assisted or subsidized mortgage. The notice of intent shall also request the tenants to notify the owner and the State agency of any individual or organization that has been designated or retained by the tenants to represent the tenants with respect to the actions to be taken under subpart B and subpart D of this part. (c) Filing with HUD, mortgagee and tenants. The owner simultaneously shall file the notice of intent with the local HUD field office having jurisdiction over the area in which the project is located and with the mortgagee, if any. In addition, the owner shall deliver a copy of the notice of intent to each tenant in the project and to any tenant representative, if any, known to the owner, and shall post a copy of the notice of intent in readily accessible locations within each affected building of the project. The copies of the notice of intent delivered to the tenants and the tenant representative shall include a summary of possible outcomes of the filing which shall be furnished by the State agency. Upon the request of any non-English speaking tenants residing in the affected project, the owner shall tabulate the number and type of translations needed by the tenants and request the State agency to provide the appropriate translations. The owner shall deliver a copy of the translated notice of intent to all of the tenants who requested such a translation. The failure of an owner to comply with any non-federal notice requirements shall not invalidate the notice of intent. | ||||
| 24:24:2.1.1.2.24.4.211.7 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | D | Subpart D—State Preservation Project Assistance | § 248.315 Preservation agreements. | HUD | (a) Agreements required. Owners of projects with State assisted or subsidized mortgages whose plans of action have been approved under § 248.307 shall enter into agreements, contracts and/or mortgage modifications with the State agency or local housing authority to maintain the housing as affordable to tenants in accordance with § 248.145. Such agreements may provide for the renewal of any assistance made available under § 248.319(c). (b) Term of agreement. Preservation agreements shall be coterminous with the expiration of any assistance provided under § 248.153 and made available in accordance with § 248.319(c). | ||||
| 24:24:2.1.1.2.24.4.211.8 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | D | Subpart D—State Preservation Project Assistance | § 248.319 Application for assistance. | HUD | (a) Application for assistance. State agencies or local housing authorities shall submit an application for assistance in a form prescribed by the Commissioner with the local HUD field office having jurisdiction over the project. The application shall include: (1) A copy of the approved plan of action, including all applicable notices of intent; (2) A copy of any worksheet or other document which demonstrates the extension and transfer preservation values of the project, the Federal cost limits (including the determination of relevant local market rents if applicable), and the preservation rents; (3) A request for each incentive required as part of the approved plan of action and the amount thereof; (4) A demonstration and certification by the Executive Director of the State agency or local housing authority that the assistance and incentives requested as part of the approved plan of action do not exceed the level of incentives required for a similarly situated project which is eligible low income housing as defined in subpart B of this part; (5) Copies of proposed agreements, contracts and mortgage modifications proposed pursuant to § 248.315. (b) Notification of approval. Not later than 90 days after receipt of the application for assistance, the local HUD field office shall notify the Executive Director of the State agency or local housing authority of the approval or disapproval of the application. If the application is disapproved, the notification shall state the reasons therefor and afford the State agency or local housing authority the opportunity to revise the application to make it approvable. (c) Funding. After approving the State agency's or local housing authority's application for assistance, the HUD field office shall make the assistance in the approved application available to the State agency or local housing authority within the time frames specified in § 248.169. (d) Agreements. The State agency or local housing authority shall provide the local HUD field office with a copy of a… | ||||
| 24:24:2.1.1.2.24.5.211.1 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | E | Subpart E—Technical Assistance and Capacity Building | § 248.401 Purposes. | HUD | The purposes of this subpart are: (a) To promote the ability of residents of eligible low income housing to participate meaningfully in the preservation process established by this part and affect decisions about the future of their housing; (b) To promote the ability of community-based nonprofit organizations and resident councils to acquire, rehabilitate, and competently own and manage eligible housing as rental or cooperative housing for low and moderate income people; and (c) To assist the Commissioner in discharging the obligation under § 248.157(b) to notify potential qualified purchasers of the availability of projects for sale and to otherwise facilitate the coordination and oversight of the preservation program established under this part. | ||||
| 24:24:2.1.1.2.24.5.211.2 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | E | Subpart E—Technical Assistance and Capacity Building | § 248.405 Grants for building resident capacity and funding predevelopment costs. | HUD | (a) General. Assistance made available under this subpart shall be used for direct assistance grants to resident organizations and community-based nonprofit housing developers and resident councils to assist the acquisition of specific projects (including payment of reasonable administrative expense to participating intermediaries.) Assistance made available under subpart E of this part will be distributed on a noncompetitive basis. HUD will publish a Notice in the Federal Register announcing the availability of assistance, as well as the application requirements and procedures and selection criteria that HUD will use in making the assistance available. (b) Allocation. Thirty percent of the assistance made available under this subpart shall be used for resident capacity grants in accordance with paragraph (d) of this section. The remainder shall be used for predevelopment grants in connection with specific projects in accordance with paragraph (e) of this section. (c) Limitation on grant amounts. A resident capacity grant under paragraph (d) of this section may not exceed $30,000 per project and a grant under paragraph (e) of this section for predevelopment costs may not exceed $200,000 per project, exclusive of any fees paid to a participating intermediary by the Commissioner for administering grants under this subpart. (d) Resident Capacity grants —(1) Use. Resident capacity grants under paragraph (d) of this section shall be available to eligible applicants to cover expenses for resident outreach, incorporation of a resident organization or council, conducting democratic elections, training, leadership development, legal and other technical assistance to the board of directors, staff and members of the resident organization or council. (2) Eligible housing. Grants under this paragraph (d) of this section may be provided with respect to eligible low income housing for which the owner has filed a notice of intent under subpart B or subpart C of this part. (e) Predevelopment grants —(1) Use. … | ||||
| 24:24:2.1.1.2.24.5.211.3 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | E | Subpart E—Technical Assistance and Capacity Building | § 248.410 Grants for other purposes. | HUD | The Commissioner may provide grants under this subpart E: (a) To resident-controlled or community-based nonprofit organizations with experience in resident education and organizing for the purpose of conducting community, city or countywide outreach and training programs to identify and organize residents of eligible low income housing; and (b) To State and local government agencies and nonprofit intermediaries for the purpose of carrying out such activities as the Commissioner deems appropriate to further the purposes of this part. | ||||
| 24:24:2.1.1.2.24.5.211.4 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | E | Subpart E—Technical Assistance and Capacity Building | § 248.415 Delivery of assistance through intermediaries. | HUD | (a) General. The Commissioner shall approve and disburse assistance under § 248.405 and § 248.410 through eligible intermediaries selected by the Commissioner under paragraph (b) of this section. If the Commissioner does not receive an acceptable proposal from an intermediary offering to administer assistance under this section in a given State, the Commissioner shall administer the program in such State directly. (b) Selection of eligible intermediaries —(1) In General. The Commission shall invite applications from and shall select eligible intermediaries to administer assistance under subpart E of this part through Notices of Funding Availability published in the Federal Register. The process shall include provision for a reasonable administrative fee. (2) Priority. With respect to all forms of grants available under § 248.405, the criteria for selecting eligible intermediaries shall give priority to applications from eligible intermediaries with demonstrated expertise under subpart B or subpart C of this part. (3) Criteria. The criteria developed under this section shall: (i) Not assign any preference or priority to applications from eligible intermediaries based on their previous participation in administering or receiving Federal grants or loans (but may exclude applicants who have failed to perform under prior contracts of a similar nature); (ii) Require an applicant to prepare a proposal that demonstrates adequate staffing, qualifications, prior experience, and a plan for participation; and (iii) Permit an applicant to serve as the administrator of assistance made available under § 248.405(d) and (e), based on the applicant's suitability and interest. (4) Geographic coverage. The Commissioner may select more than one State or regional intermediary for a single State or region. The number of intermediaries chosen for each State or region may be based on the number of eligible low income housing projects in the State or region, provided there is no duplication of geographic coverage by in… | ||||
| 24:24:2.1.1.2.24.5.211.5 | 24 | Housing and Urban Development | II | B | 248 | PART 248—PREPAYMENT OF LOW INCOME HOUSING MORTGAGES | E | Subpart E—Technical Assistance and Capacity Building | § 248.420 Definitions. | HUD | Community-based nonprofit housing developer means a nonprofit community development corporation that: (1) Has been classified by the Internal Revenue Service as an exempt organization under section 501(c)(3) of the Internal Revenue Code of 1986; (2) Has been in existence for at least two years prior to the date of the grant application; (3) Has a record of service to low and moderate income people in the community in which the project is located; (4) Is organized at the neighborhood, city, county, or multi-county level; and (5) In the case of a corporation acquiring eligible low income housing under subpart B of this part, agrees to form a purchaser entity that conforms to the definition of a community-based nonprofit organization under such subpart and agrees to use its best efforts to secure majority tenant consent to the acquisition of the project for which grant assistance is requested. Eligible intermediaries. For purposes of this subpart, the term “eligible intermediary” means a State, regional, or national nonprofit organization (including a quasi-public organization) or a State or local housing agency that: (1) Has as a central purpose the preservation of existing affordable housing and the prevention of displacement; (2) Does not receive direct Federal appropriations for operating support; (3) In the case of a national nonprofit organization, has been in existence for at least five years prior to the date of application and has been classified by the Internal Revenue Service as an exempt organization under section 501(c)(3) of the Internal Revenue Code of 1986; (4) In the case of a regional or State nonprofit organization, has been in existence for at least three years prior to the date of application and has been classified by the Internal Revenue Service as an exempt organization under section 501(c)(3) of the Internal Revenue Code of 1986 or is otherwise a tax-exempt entity; (5) Has a record of service to low income individuals or community-based nonprofit housing development in multiple … |
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