The final rule for Section 32 Homeownership was published March 11, 2003, and became effective April 10, 2003. Previously approved homeownership programs will continue to operate under the existing Section 5(h) rule. Please note that both regulations have the same number, 24 CFR 906, and are accessible from this site.
The Quality Housing and Work Responsibility Act (QHWRA) permits PHAs, through Section 32 of the U.S. Housing Act of 1937, to make public housing dwelling units available for purchase by low-income families as their principal residence. Under Section 32, a PHA may:
Sell all or a portion of a public housing development to eligible public or non-public housing residents;
Provide Capital Fund assistance to public housing families to purchase homes; or,
Provide Capital Fund assistance to acquire homes that will be sold to low-income families. Section
32 generates an exception, allowing the Public Housing Capital Fund to be used to acquire units for sale that will not be put under public housing ACC contracts. This does not apply to the useof the Capital Fund by the PHA to build or substantially rehabilitate units that are not public housing for sale under Section 32. Although public housing units that are newly constructed or substantially rehabilitated may be sold under Section 32, such construction and rehabilitation by the PHA is not covered under this section, but rather is governed by the public housing development and modernization regulations. Nonetheless, the final Section 32 rule replaces the Section 5(h) rule.
Section 32 Homeownership Plans
The specific requirements for preparing a homeownership plan under Section 32 are set out in the Section 32 Desk Guide, the Inventory Removals Application (HUD-52860), the Homeownership Addendum (or Homeownership Term Sheet) to that Application (HUD-52860-C), and the tools available for download below. The Homeownership Addendum/Term Sheet must be completed to show program compliance and due diligence and must be attached to a PHA's application for homeownership. After HUD approval, the Homeownership Addendum/Term Sheet becomes a part of the PHA's approved Homeownership Plan. All other documents are optional and should be used at discretion of the PHA.
In order to assist PHAs in completing a Homeownership Addendum/Term Sheet that meets HUD's requirements, a sample term sheet is also attached. Note that this term sheet is being provided as a sample only and PHAs should modify it in accordance with the specific conditions of each application.s.sTROPP
The final rule for Section 32 Homeownership was published March 11, 2003, and became effective April 10, 2003. Previously approved homeownership programs will continue to operate under the existing Section 5(h) rule. Please note that both regulations have the same number, 24 CFR 906, and are accessible from this site.
The Quality Housing and Work Responsibility Act (QHWRA) permits PHAs, through Section 32 of the U.S. Housing Act of 1937, to make public housing dwelling units available for purchase by low-income families as their principal residence. Under Section 32, a PHA may:
Sell all or a portion of a public housing development to eligible public or non-public housing residents;
Provide Capital Fund assistance to public housing families to purchase homes; or,
Provide Capital Fund assistance to acquire homes that will be sold to low-income families. Section
32 generates an exception, allowing the Public Housing Capital Fund to be used to acquire units for sale that will not be put under public housing ACC contracts. This does not apply to the useof the Capital Fund by the PHA to build or substantially rehabilitate units that are not public housing for sale under Section 32. Although public housing units that are newly constructed or substantially rehabilitated may be sold under Section 32, such construction and rehabilitation by the PHA is not covered under this section, but rather is governed by the public housing development and modernization regulations. Nonetheless, the final Section 32 rule replaces the Section 5(h) rule.
Section 32 Homeownership Plans
The specific requirements for preparing a homeownership plan under Section 32 are set out in the Section 32 Desk Guide, the Inventory Removals Application (HUD-52860), the Homeownership Addendum (or Homeownership Term Sheet) to that Application (HUD-52860-C), and the tools available for download below. The Homeownership Addendum/Term Sheet must be completed to show program compliance and due diligence and must be attached to a PHA's application for homeownership. After HUD approval, the Homeownership Addendum/Term Sheet becomes a part of the PHA's approved Homeownership Plan. All other documents are optional and should be used at discretion of the PHA.
In order to assist PHAs in completing a Homeownership Addendum/Term Sheet that meets HUD's requirements, a sample term sheet is also attached. Note that this term sheet is being provided as a sample only and PHAs should modify it in accordance with the specific conditions of each application.s.sTROPP