Dear bull2,
My research has turned up several sources for statutes and regulations
pertaining to the situation in which the general partner in the ownership
of a HUD property has carried out the sale of said property. Before I
list these sources, let me describe to you their provenance so that you
are assured of their authoritative character.
The two official sources of statutes and regulations governing the
disposition of HUD property are the Code of Federal Regulations and the
HUD Library. Both sources are accessible online through HUD's Client
Information and Policy System, or HUDclips.
HUDclips: HUD's Client Information and Policy System: Home
http://www.hudclips.org/cgi/index.cgi
The Code of Federal Regulations is "The codification of the general
and permanent rules published in the Federal Register by the executive
departments and agencies of the Federal Government. It is divided into
50 titles that represent broad areas subject to Federal regulation."
Office of the Federal Register: Executive Branch: Office of the Federal Register
http://www.gpoaccess.gov/nara/index.html
The Office of the Federal Register, an arm of the National Archives
and Records Administration, gathers U.S. Federal rules and regulations
into this handbook, which is disseminated online by the U.S. Government
Printing Office.
Office of the Federal Register: Mission
http://www.archives.gov/federal_register/about/mission.html
Government Printing Office: National Archives and Records
Administration: Code of Federal Regulations
http://www.access.gpo.gov/nara/cfr/cfr-table-search.html
The HUD Library, according to the HUDclips home page, is a "Directory
for all of HUD's official policies and directives including notices,
letters, handbooks, Code of Federal Regulations Title 24, U.S. Codes
Titles 12 and 42, and more."
"The following database categories can be searched in HUDCLIPS: (Click
on the category name to go directly to the section) Federal Register,
Codes, Congressional Record, Guidebooks, Handbooks and Notices, Inspector
General, Letters, Veterans Affairs, Travel Regulations, Housing Waivers,
OGC Documents, and Legal Opinions."
HUDclips: Library
http://www.hudclips.org/sub_nonhud/cgi/hudclips.cgi
The most useful sections of the Library are the Codes and Acts, Handbooks
and Notices, and Letters. I have examined every item under these
categories in search of statutes and regulations governing situations
in which the general partner in a HUD property sells the property. The
results of this perusal are given below, immediately after my findings
in the Code of Federal Regulations.
According to the U.S. Government Manual, the Code of Federal Regulations
covers the Department of Housing and Urban Development (HUD) in the
following sections.
"Housing and Urban Development, Department of 5, LXV; 24, Subtitle B
Community Planning and Development, Office
of Assistant Secretary for 24, V, VI
Equal Opportunity, Office of Assistant
Secretary for 24, I
Federal Acquisition Regulation 48, 24
Federal Housing Enterprise Oversight, Office
of 12, XVII
Government National Mortgage Association 24, III
HousingFederal Housing Commissioner,
Office of Assistant Secretary for 24, II, VIII, X, XX
Housing, Office of, and Multifamily Housing
Assistance Restructuring, Office of 24, IV
Inspector General, Office of 24, XII
Public and Indian Housing, Office of
Assistant Secretary for 24, IX
Secretary, Office of 24, Subtitle A, VII"
Government Printing Office: U.S. Government Manual: Appendix C
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=2004_government_manual&docid=198805tx_xxx-115
Government Printing Office: U.S. Government Manual: Browse
http://www.gpoaccess.gov/gmanual/browse-gm-04.html
Title 24 of the Code is devoted specifically to HUD.
Government Printing Office: Code of Federal Regulations: Title 24
http://www.access.gpo.gov/cgi-bin/cfrassemble.cgi?title=200424
The part you need to consult for regulations on the sale of HUD
property depends on whether the property concerned is a single-family or
multi-family project. Part 290 concerns the "Disposition of Multifamily
Projects and Sale of HUD-Held Multifamily Mortgages", while 291 is about
the "Disposition of HUD-Acquired Single Family Property".
"Title 24--Housing and Urban Development
"CHAPTER II--OFFICE OF ASSISTANT SECRETARY FOR HOUSING--FEDERAL HOUSING
COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
"PART 290--DISPOSITION OF MULTIFAMILY PROJECTS AND SALE OF HUD-HELD
MULTIFAMILY MORTGAGES"
Government Printing Office: Code of Federal Regulations: Title 24: Part 290
http://www.access.gpo.gov/nara/cfr/waisidx_04/24cfr290_04.html
"Title 24--Housing and Urban Development
"CHAPTER II--OFFICE OF ASSISTANT SECRETARY FOR HOUSING--FEDERAL HOUSING
COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
"PART 291--DISPOSITION OF HUD-ACQUIRED SINGLE FAMILY PROPERTY"
Government Printing Office: Code of Federal Regulations: Title 24: Part 291
http://www.access.gpo.gov/nara/cfr/waisidx_04/24cfr291_04.html
One component of the Codes and Acts section in the HUD Library is Title
24, which I have already covered. The HUD Library includes three other
Titles in the Code of Federal Regulations: Title 5, devoted to hiring
practices and non-discrimination; Title 41, on working conditions and
safety; Title 48, on contracting and business practices. None of these
are applicable to your situation. The only two parts of the Code of
Federal that are relevant to you are Parts 290 and 291 of Title 24.
The HUD Library contains 4855 Handbooks and Guidebooks, starting on
this page.
HUDclips: Browse All HUD Handbooks and Guidebooks
http://www.hudclips.org/sub_nonhud/cgi/nph-brs.cgi?d=HBKS&s1=@docn&l=100&SECT1=TXTHLB&SECT5=HBKS&u=./hudclips.cgi&p=1&r=0&f=S#h0
The official handbook on selling HUD property is number 4310.5, the
"Property Disposition Handbook - One to Four Family". Its contents
are listed at the bottom of the following page. You will want to pay
especially close attention to Chapter 11, on the subject of Sales Closings.
HUDclips: Handbook Database: 4310.5 Property Disposition Handbook -
One to Four Family
http://www.hudclips.org/sub_nonhud/cgi/nph-brs.cgi?d=HBKS&s1=disposition&op1=AND&l=100&SECT1=TXT_HITS&SECT5=HBKS&u=./hudclips.cgi&p=4&r=0&f=S
HUDclips: Disposition Hanbook - One to Four Family: Chapter 11. Sales Closings
http://www.hudclips.org/sub_nonhud/cgi/nph-brs.cgi?d=HBKS&s1=disposition&op1=AND&l=100&SECT1=TXT_HITS&SECT5=HBKS&u=./hudclips.cgi&p=4&r=391&f=G
Among the Letters of the HUD, which are notices and reminders of
regulatory or policy changes, I have found none that are of interest
to one involved in the disposition of HUD property. In any event, the
Letters only make reference to rules and regulations found in the HUD
Handbooks or the Code of Federal Regulations, without introducing new
content themselves.
Finally, you did say that you weren't looking for interpretations, but I
thought you might be interested nonetheless in a Legal Opinion from the
HUD Library related to matters of HUD property disposition. This official
opinion, delivered by the Deputy General Counsel of HUD, mentions that
the purpose of a sale is to remove liens on the property and thereby to
annul any further responsibility for expenses incurred in the operation
of the property.
"With respect to the contract in general, the Model Contract should be
utilized with the changes approved in this memorandum. Paragraphs 1-26
of the Model Contract are necessary for most sales because they provide a
consistent and uniform method of selling and closing sales of multifamily
properties. It is important that HUD be consistent in the sales contracts
that it offers to prevent purchasers from lobbying different Regions
for different terms of sales. Additionally, the standard provisions
of the Model Contract have been written because of past problems or
lawsuits involving the sales and closing of multifamily projects.
Also, it is important to keep in mind that the contract was concurred
on by Housing. [...] It is generally the policy of Multifamily to draft
a contract between HUD and the City, and require the City to draft the
contract between it and the entity purchasing the project. However, as
this is a simultaneous closing and the sale to the City is for the express
purpose of removing liens, the contract may reflect both transactions."
HUDclips: Legal Opinions Database: Contract of Sale--Security
Deposits; Contract Changes
http://www.hudclips.org/sub_nonhud/cgi/nph-brs.cgi?d=LOPS&s1=disposition&op1=AND&l=100&SECT1=TXT_HITS&SECT5=LOPS&u=./hudclips.cgi&p=1&r=29&f=G
That is the spirit of the law, but to consult the letter of the law,
you will want to refer to Title 24 of the Code of Federal Regulations,
as above.
I have enjoyed addressing this matter on your behalf. If you feel that
any part of my answer is unclear or incorrect, do let me know through
a Clarification Request so that I have a chance to fully meet your needs.
Regards,
leapinglizard |
