CFR > 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 (parts 200 to 291) > SUBCHAPTER I—HUD-OWNED PROPERTIES (parts 290 to 291) > PART 290—DISPOSITION OF MULTIFAMILY PROJECTS AND SALE OF HUD-HELD MULTIFAMILY MORTGAGES > SUBPART B—Sale of HUD-Held Multifamily Mortgages (§290.30 to §290.39) > 290.31—Sale of current mortgages securing subsidized projects.

290.31—Sale of current mortgages securing subsidized projects.

HUD will sell current mortgages securing subsidized projects, as follows:
(a) Current mortgages with FHA mortgage insurance will be sold either:
(1) On a competitive basis to FHA-approved mortgagees; or
(2) On a negotiated basis, to State or local governments, or to a group of investors that includes an agency of a State or local government if, in addition to meeting the requirements of the Statute, the sales price is the best price that HUD can obtain from an agency of a State or local government while maintaining occupancy for the tenant group originally intended to be served by the subsidized housing program.
(b) Current mortgages without FHA mortgage insurance will be sold if HUD can offer protections equivalent to those listed for an insured sale in paragraph (a) of this section.