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Subpart B Sec. 899.201 Purpose. 899.202 Effective date of certain additional

provisions of the Act respecting annual

contributions contracts. 899.203 Effective date of all other provi

sions of the Act. AUTHORITY: Section 201(b) Housing and Community Development isct of 1974, 42 U.S.C. 1437; Section 7(d) Department of Housing and Urban Development Act, 42 U.S.C. 3535(d).

Subpart A-Miscellaneous Provisions

A-Dwelling Leases, Procedures and Requirements (40 FR 33402-33406). Subpart B-Grievance Procedures and Requirements (40 FR 33406-33408).

24 CFR Part 880 Section 8 Housing Assistance Payments Program-New Construction (40 FR 18682-18724).

24 CFR Part 881 Section 8 Housing Assistance Payments Program-Substantial Rehabilitation (40 FR 18902-18944).

24 CFR Part 882 Section 8 Housing Asssistance Payments Program-Existing Housing (40 FR 19612-19631).

24 CFR Part 883 Section 8 Housing Assistance Payments Program-Housing Finance and Development Agencies (40 FR 1693416965).

24 CFR Part 888 Section 8 Housing Assistance Payments Program-Fair Market Rents-Contract Rent Automatic Annual Adjustment Factors. New Construction (40 FR 14502-14564). Existing Housing (40 FR 15580-15860).

24 CFR Part 899 Section 8 Housing Assistance Payments Program-Determination of Income for Eligibility and Gross Family Contribution (40 FR 15542-15543).

24 CFR Part 890 Annual Contributions for Operating Subsidy (40 FR 17008-17015). (41 FR 8056, Feb. 24, 1976. Redesignated at 41 FR 22814, June 7, 1976)

8 899.101 Waivers.

(a) Basic Provision. Upon determination of good cause, the Secretary of Housing and Urban Development may, subject to statutory limitations, waive any provision of this Chapter. Each such waiver shall be in writing and shall be supported by documentation of the pertinent facts and grounds.

(b) Reservation of authority by the Secretary. The authority under Subsection A is reserved to the Secretary and no delegation of this waiver authority shall be effective unless executed subsequent to the June publication date.

(41 FR 22814, June 7, 1976)

Subpart B

$ 899.201 Purpose.

The purpose of this Subpart is to prescribe February 22, 1976, as the effective date for all provisions of the United States Housing Act of 1937, as amended by the Housing and Community Development Act of 1974, (the Act) unless other effective dates are contained in the following regulations:

24 CFR Part 811 Financing. Subpart ATax Exemption of Obligations of Public Housing Agencies (40 FR 50531-50532).

24 CFR Part 860 Income Limits with Respect to, Admission to, and Occupancy of, Low-Income Housing Owned by Public Housing Agencies or Leased by Public Housing Agencies from Private Owners. Subpart B-Admission (40 FR 33445). Subpart DMinimum and Maximum Rent-Income Ratics, and Minimum Rent Requirements (40 FR 44323-44326).

24 CFR Part 866 FHA Owned ProjectsLease and Grievance Procedures. Subpart

8 899.202 Effective date of certain provi.

sions of the Act respecting annual con

tributions contracts. (a) From and after February 22, 1976, whenever (1) additional dwelling units are to be included in a Public Housing Agency's (PHAS) low-income housing program, (2) a commitment of additional annual contributions is requested or required by a PHA, or (3) a modification or amendment of the annual contributions contract is requested or required by a PHA, the annual contributions contract(s) with the PHA shall be amended to incorporate the following provisions which shall supersede any contractual provi. sions in conflict therewith:

At least 20 percentum of the dwelling units in any project placed under annual contributions contract in any year after (September 26, 1975, shall be occupied by very low-income families.)

(1) Under section 3(1) of the Act: (2) Under section 4(a) of the Act:

(a) • such loans (i.e., loans to public housing agencies to help finance or refi. nance the development, acquisition, or operation of low-income housing projects by

such agencies shall bear interest at a rate specified by the Secretary which shall not be less than a rate determined by the Secrotary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans, plus one-eighth of per centum. *. *)

(3) Under section 6(a) of the Act:

(a): except in the case of housing predominantly for the elderly, high-rise elevator projects shall not be provided for families with children unless the Secretary makes a determination that there is no practical alternative.

(4) Under section 6(b) of the Act: (b)

the cost of construction and equipment of the project (excluding land, demolition, and nondwelling facilities) on which the computation of any annual contributions under this Act may be based shall not exceed by more than 20 per centum the appropriate prototype cost for the area.

(5) Under section 6(c) of the Act:

(c)(1) the Secretary may require the public housing agency to review and revise its maximum income limits if the Secretary determines that changed conditions in the locality makes such revision necessary in achieving the purpose of this Act;

(2) the public housing agency shall determine, and so certify to the Secretary, that each family in the project was admitted in accordance with duly adopted regulations and approved income limits; and the public housing agency shall review the incomes of families living in the project at intervals of two years (or at shorter intervals where the Secretary deem it desirable);

(3) the public housing agency shall promptly notify (i) any applicant determined to be ineligible for admission to the project of the basis for such determination and provide the applicant upon request, within a reasonable time after the determination, is made, with an opportunity for an informal hearing on such determination, and (ii) any applicant determined to be eligible for admission to the project of the approximate date of occupancy insofar as such date can be reasonably determined; and

(4) the public housing agency shall comply with such procedures and requirements as the Secretary may prescribe to assure that sound management practices will be followed in the operation of the projcct, including requirements pertaining to

(A) the establishment of tenant selection criteria designed to assure that, within a reasonable period of time, the project will include families with a broad range of incomes and will avoid concentrations of lowincome and deprived families with serious

social problems, but this shall not permit maintenance of vacancies to await higher income tenants where lower income tenants are available;

(B) the establishment of satisfactory procedures designed to assure the prompt payment and collection of rents and the prompt processing of evictions in the case of nonpayment of rent;

(C) the establishment of effective tenantmanagement relationships designed to assure that satisfactory standards of tenant security and project maintenance are formulated and that the public housing agency (together with tenant councils where they exist) enforces those standards fully and effectively; and

(D) the development by local housing authority managements of viable homeownership opportunity programs for low-income families capable of assuming the responsibilities of homeownership."

(6) Under section 6(d) of the Act:

(d) no annual contributions by the Secretary shall be made available for such project (i.e., low-income housing project unless such project (exclusive of any portion there of which is not assisted by annual contributions under this Act) is exempt from all real and personal property taxes levied or imposed by the State, city, county, or other political subdivision; and such contract shall require the public housing agency to make payments in lieu of taxes equal to 10 per centum of the sum of the annual shelter rents charged in such project, or such lesser amount as (i) is prescribed by State law, or (ii) is agreed to by the local governing body in its agreement for local cooperation with the public housing agency required under section 5(e)(2) of this Act, or (iii) is due to failure of a local public body or bodies other than the public housing agency to perform any obligation under such agreement. If any such projects is not exempt from all real and personal property taxes levied, or imposed by the State, city, county, or other political subdi

no annual contributions by the Secretary shall be made available for such project unless and until the State, city, county, or other political subdivision in which such project is situated shall contribute, in the form of cash or tax remission, the amount by which the taxes paid with respect to the project exceed 10 per centum of the annual shelter rents harged in such project."

(7) Under section 6(e) of the Act:

(e). * whenever in any year the receipts of a public housing agency in connection with a low-income housing project exceed its expenditures (including debt service, operation, maintenance, establishment of reserves, and other costs and charges), an amount equal to such excess shall be ap

vision,

plied, or set aside for application, to purposes which, in the determination of the Secretary, will effect a reduction in the amount of subsequent annual contributions."

(8) Under section 6(f) of the Act:

(f) when the public housing agency and the Secretary mutually agree that a housing project is obsolete as to physical condition, or location, or other factors, making it unusable for housing purposes, a program of modifications or closeout shall be prepared. * . (9) Under section 12 of the Act:

• • not less than the wages prevailing in the locality, as determined or adopted (subsequent to a determination under applicable State or local law) by the Secretary, shall be paid to all architects, technical engineers, draftsmen, and technicians employed in the development, and all maintenance laborers and mechanics employed in the operation, of the low-income housing project involved; and * • • not less then the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant to the DavisBacon Act (49 Stat. 1011), shall be paid to all laborers and mechanics employed in the development of the project involved (including a project with nine or more units assisted under section 8 of this Act, where the public housing agency or the Secretary and

the building or sponsor enter into an agreement for such use before construction or rehabilitation is commenced),

(b) To the extent that the substance of the provisions in paragraph (a) of this section have been found to be consistent with the provisions of section 8 of the Act, the substance of the provisions have been included in the section 8 Housing Assistance Payments Program contracts and regulations. Accordingly, the provisions of paragraph (a) do not apply to the section 8 Housing Assistance Payments Program. (41 FR 8056, Feb. 24, 1976. Redesignated at 41 FR 22814, June 7, 1976) $ 899.203 Effective date of all other provi

sions of the Act. In addition to the provisions of the Act made effective by the prior regulations cited in 8 899.101 and those made effective by 899.102, all other provi. sions of the Act are hereby made effective on February 22, 1976, in accordance with their terms. (41 FR 8056, Feb. 24, 1976. Redesignated at 41 FR 22814, June 7, 1976)

CHAPTER IX-OFFICE OF INTERSTATE LAND SALES REGISTRATION, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Part 1700 1710 1715

Page 808 811

Introduction .......
Land registration ...........
Advertising, sales practices, posting of notices of

suspension
Formal procedures and rules of practice

860 865

1720

807

PART 1700—INTRODUCTION

the signing of an agreement for sale or lease.

Subpart A-Authority and Organization

Sec. 1700.1 Scope of authority and purpose. 1700.5 Authority of Secretary. 1700.10 Delegation of authority. 1700.15 Establishment of office. 1700.20 Administrator. 1700.25 Principal divisions. 1700.30 Public information. 1700.35 Separability of provisions.

$ 1700.5 Authority of Secretary.

Section 1416(a) of the Act vests authority and responsibility for its administration in the Secretary of Housing and Urban Development (hereafter in this part referred to as the Secretary), and authorizes the Secretary to delegate any of his functions, duties and powers thereunder to employees of the Department of Housing and Urban Development.

Subpart B-Delegations of Basic Authority and

Functions

1700.80 Director of the Examination Divi

sion, Office of Interstate Land Sales

Registration, and Deputy. 1700.85 Director of the Land Sales En

forcement Division, Office of Interstate

Land Sales Registration, and Deputy. 1700.90 Director of the Policy Develop

ment and Control Division, Office of In.

terstate Land Sales Registration. 1700.91 Director of the Field Review Divi

sion, Office of Interstate Land Sales

Registration. 1700.95 Acting Administrator. 1700.100 Assistant Deputy Administrator.

AUTHORITY: Sec. 1419, 82 Stat. 598 (15 USC 1718).

SOURCE: 39 FR 19778, June 4, 1974, unless otherwise noted.

$ 1700.10 Delegation of authority.

(a) The Secretary has delegated to the Interstate Land Sales Administrator and the Deputy Administrator all of the authority to exercise the power and authority vested in him under the Act except the authority to:

(1) Conduct hearings in accordance with 5 USC 556 and 557.

(2) Issue orders or determinations after such hearings.

(3) Issue rules and regulations under section 1416(a) of the Interstate Land Sales Full Disclosure Act 15 USC 1701-1720, Title XIV of the Housing and Urban Development Act of 1968 prescribing rights of appeal from the decisions of hearing examiners.

(4) Transmit evidence of apparent violations of the Act to the Attorney General of the United States for the institution of any appropriate criminal proceedings under section 1415(a) of the Act.

(5) Sue and be sued.

(b) The Secretary has further authorized the Administrator to redelegate any of the delegated authority to employees of the Department.

Subpart A-Authority and

Organization

$ 1700.1 Scope of authority and purpose.

A land developer is required by the Interstate Land Sales Full Disclosure Act, Title XIV of Public Law 90-448, 82 Stat. 590, 15 USC 1701, enacted on August 1, 1968 (hereafter sometimes referred to as the Act) to make full disclosure in the sale or lease of certain undeveloped, subdivided land. The Act makes it unlawful (except with respect to certain exempted transactions) for any developer to sell or lease, by use of the mail or by any means in interstate commerce, any such land offered as part of a common promotional plan unless the land is registered with the Secretary of Housing and Urban Development and a printed property report is furnished to the purchaser or lessee in advance of

$ 1700.15 Establishment of office.

There is established, as an organizational unit of the Department of Housing and Urban Development, the Office of Interstate Land Sales Registration.

$ 1700.20 Administrator.

The Office of Interstate Land Sales Registration is headed by the Interstate Land Sales Administrator who shall be designated by the Secretary.

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