24 CFR 291.415 - Lease with option to purchase properties for use by the homeless.

§ 291.415 Lease with option to purchase properties for use by the homeless.
(a) Certification. Eligible properties are available for lease to applicants, approved by HUD, that certify that the property will be utilized only for the purpose of providing transitional housing for the homeless during the lease term, and that the intended use of the property will be consistent with all local laws and regulations. The lease agreement will be in a form prescribed by the Secretary. Lessees must execute a sublease with occupants in a form prescribed by the Secretary limiting an occupant's tenancy to no longer than two years.
(b) Term of lease.
(1) A lease of an eligible property may be negotiated for such time as the lessee requires, not to exceed one year. Leases are renewable, at the option of the lessee and with the approval of HUD, at the end of the first lease term for up to four additional one-year terms, on a year-to-year basis, provided the lessee has met the requirements under this program.
(2) Approvals for lease renewals will be denied if HUD determines that the lessee has not complied with the requirements of this part of the lease.
(3) A property will not be leased to a lessee for a period longer than five years. At the end of the five-year period, if the lessee has not exercised the option to purchase, HUD will notify the lessee to vacate the property and, if necessary, will take appropriate action under the eviction laws of the jurisdiction in which the property is located. All property returned to HUD must be vacant, and will be placed on the market for sale to the general public.
(4) Within 30 days of leasing a property from HUD or within 30 days after a property is vacated, a lessee must sublease the property to the homeless, unless a longer period is approved by HUD.
(c) Rent.
(1) The lessee must pay HUD a nominal rent of $1 for each one-year lease period.
(2) A lessee may charge rent, including utilities, to an occupant at a rate appropriate to the financial means of the occupant. Unless HUD approves after consideration of such factors as the cost of operating housing in the area and the amount of the lessee's contributions to the program, such rent may not exceed the highest of:
(i) Thirty percent of the family's monthly adjusted income (adjustment factors include the number of people in the family, age of family members, medical expenses, and child care expenses);
(ii) Ten percent of the family's monthly income; or
(iii) If the family is receiving payments for welfare assistance from a public agency and a part of the payments, adjusted in accordance with the family's actual housing costs, is specifically designated by the agency to meet the family's housing costs, the portion of the payments that is designated.
(3) In no event may the rent charged an occupant exceed the occupant's pro rata share of the lessee's costs of operating the property.
(d) Damage to leased properties. Any damage to leased property caused by the intentional or negligent acts of the lessee or occupants must be repaired by the lessee at its own expense. If the lessee does not make the necessary repairs within a reasonable time after the damage occurs, HUD may, at its option, make the repairs and charge the cost to the lessee. Failure by the lessee to make the necessary repairs or to reimburse HUD for the cost of repairs will constitute grounds for termination of the lease and may result in termination from the program.
(e) Purchase of leased properties.
(1) Lessees that desire to purchase leased properties during the lease term will be offered the properties at the lower of the fair market value established at the time of the initiation of the lease or at the time of the sale, less a discount determined appropriate by the Secretary but not less than 10 percent, provided lessees agree to use the properties either to house low-income tenants for a period of not less than 10 years or to resell the properties to low-income buyers. If the lessee does not agree to such conditions, the lessee must purchase the properties at the higher of the fair market value at the time of the initiation of the lease or at the time of the sale, less 10 percent. Any repairs to or rehabilitation of a property done by a lessee during the lease term will not be reflected in the purchase price.
(2) Sales of leased properties will be on as-is, all-cash basis. HUD will not pay a fee for a selling broker. HUD will pay the closing agent's fee. The purchaser must pay all other closing costs.
[61 FR 55715, Oct. 28, 1996]

Title 24 published on 2014-04-01

no entries appear in the Federal Register after this date.

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.


United States Code
U.S. Code: Title 12 - BANKS AND BANKING

§ 1701 - Short title

§ 1701a - Short title of amendment of 1938

§ 1701b - Short title of amendment of 1942

§ 1701c - Secretary of Housing and Urban Development

12 U.S. Code § 1439, 1439–1 - Repealed.

§ 1701d - Repealed.

12 U.S. Code § 1439, 1439–1 - Repealed.

12 U.S. Code § 1701d–1, 1701d–2 - Repealed.

12 U.S. Code § 1701d–1, 1701d–2 - Repealed.

§ 1701e, 1701f - Repealed.

12 U.S. Code § 1701e, 1701f - Repealed.

§ 1701g to 1701g–3 - Omitted

12 U.S. Code § 1701g to 1701g–3 - Omitted

12 U.S. Code § 1701g to 1701g–3 - Omitted

12 U.S. Code § 1701g–5a - Transfer of New Communities Fund assets and liabilities

12 U.S. Code § 1701g–5b - Liquidation of New Communities Program; cancellation of debt

12 U.S. Code § 1701g–5c - Transfer of rehabilitation loan fund assets and liabilities

§ 1701h - Advisory committees; payment of transportation and other expenses

12 U.S. Code § 1701g to 1701g–3 - Omitted

§ 1701i, 1701i–1 - Omitted

§ 1701j - Repealed. Aug. 2, 1954, ch. 649, title VIII,

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

§ 1701k - Right to redeem property on which United States has lien

12 U.S. Code § -

12 U.S. Code § 1701i, 1701i–1 - Omitted

§ 1701m - Credit and cancellation of notes transferred from Reconstruction Finance Corporation; net loss computation

§ 1701n - Reduction of vulnerability of congested urban areas to enemy attack

12 U.S. Code § -

§ 1701p - Contents of report to President and Congress

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

§ 1701q - Supportive housing for the elderly

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

§ 1701r - Congressional findings respecting housing for senior citizens

12 U.S. Code § 1701i, 1701i–1 - Omitted

§ 1701s - Rent supplement payments for qualified lower income families

§ 1701t - Congressional affirmation of national goal of decent homes and suitable living environment for American families

§ 1701u - Economic opportunities for low- and very low-income persons

§ 1701v - Congressional findings and declaration for improved architectural design in Government housing programs

§ 1701w - Budget, debt management, and related counseling services for mortgagors; authorization of appropriations

§ 1701x - Assistance with respect to housing for low- and moderate-income families

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

§ 1701y - National Homeownership Foundation

§ 1701z - New technologies in the development of housing for lower income families

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701z–10a - Biennial survey of economic and housing market conditions

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

§ 1709 - Insurance of mortgages

§ 1715b - Rules and regulations

12 U.S. Code § 1750aa to 1750jj - Omitted

U.S. Code: Title 42 - THE PUBLIC HEALTH AND WELFARE