TITLE 24 - HOUSING AND URBAN DEVELOPMENT

SUBTITLE B - REGULATIONS RELATING TO HOUSING AND URBAN DEVELOPMENT

CHAPTER II - OFFICE OF ASSISTANT SECRETARY FOR HOUSING - FEDERAL HOUSING COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

SUBCHAPTER A - GENERAL

PART 200 - INTRODUCTION TO FHA PROGRAMS

subpart a - REQUIREMENTS FOR APPLICATION, COMMITMENT, AND ENDORSEMENT GENERALLY APPLICABLE TO MULTIFAMILY AND HEALTH CARE FACILITY MORTGAGE INSURANCE PROGRAMS; AND CONTINUING ELIGIBILITY REQUIREMENTS FOR EXISTING PROJECTS

200.106 - Projects with limited distribution mortgagors and program assistance.

  (a) Regulation as limited distribution mortgagors. In addition to regulation under 200.105, limited distribution mortgagors for projects receiving assistance within the jurisdiction of the Department (as defined in 4.3 of this title) may be regulated by the Commissioner as to additional matters, by regulation or otherwise, including as to the amount of the permissible distribution to the mortgagor.

  (b) Increased distributions. The Commissioner may permit increased distributions of surplus cash, in excess of the amounts the Commissioner otherwise permits for limited distribution mortgagors, to a limited distribution mortgagor who participates in a HUD-approved initiative or program to preserve housing stock with below-market rents as affordable housing. The increased distribution will be limited to a maximum amount based on market rents and calculated according to HUD instructions.

Funds that the mortgagor is authorized to retain under section 236(g)(2) of the National Housing Act are not considered distributions to the mortgagor.

  (c) Pre-emption. Any State or local law or regulation that restricts distributions to an amount lower than permitted by the Commissioner under authority of this section is preempted to the extent provided in section 524(f) of the Multifamily Assisted Housing Reform and Affordability Act of 1997.

[65 FR 61074, Oct. 13, 2000]