Code of Federal Regulations Title 24. Housing and Urban Development § 24.906.31 Requirements applicable to net proceeds resulting from sale

(a) PHA use of net proceeds. The PHA must use any net proceeds of any sales under a homeownership program remaining after payment of all costs of the sale for purposes relating to low-income housing and in accordance with its PHA plan.

(b) PRE use of resale net proceeds. The PHA may require the PRE to return the net proceeds from the resale of the units to the PHA. If the PHA permits the PRE to retain the net proceeds, the PRE must use these proceeds for low-income housing purposes.

(c) Transfer of unsold unit to PHA. In a situation where the PRE fails to sell a unit to an eligible family within 5 years, and the provision of § 906.19(d) requiring that the unit be transferred to the PHA applies:

(d) Transfer of unsold unit operated as public housing to PHA. Where the PRE operates the unit as public housing during the 5–year interim period under § 960.40, and fails to sell the unit to an eligible family within such 5–year period and the provision of § 906.19(d) applies, the PHA must return the unit to operation in its regular public housing program.