# 24 C.F.R. § 248.127 (2026): Limitations on action pursuant to Federal cost limit

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_127

## Section

- **Citation:** 24 C.F.R. § 248.127 (2026)
- **Heading:** Limitations on action pursuant to Federal cost limit
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 24 CFR: Housing and Urban Development / Chapter II: OFFICE OF ASSISTANT SECRETARY FOR HOUSING—FEDERAL HOUSING COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT / Part 248: PREPAYMENT OF LOW INCOME HOUSING MORTGAGES / Subpart B: Prepayments and Plans of Action Under the Low Income Housing Preservation and Resident Homeownership Act of 1990 / § 248.127: § 248.127   Limitations on action pursuant to Federal cost limit.

## Text

(a)
Retention of the project.
With respect to owners who seek to retain the project, the owner may file a plan of action to receive incentives under § 248.153, except that if the extension preservation rent exceeds the Federal cost limit, the amount of the incentives may not exceed an amount that can be supported by a projected income stream equal to the Federal cost limit.
(b)
Transfer of the project.
With respect to owners who seek to transfer the project—
(1) If the transfer preservation rent does not exceed the Federal cost limit, or if the transfer preservation rent exceeds the Federal cost limit and the owner is willing to transfer the project at a price which will result in project rents that, on an aggregate level, do not exceed the Federal cost limit, the owner may file a second notice of intent indicating an intention to transfer the project under § 248.157; or
(2) If the transfer preservation rent exceeds the Federal cost limit, the owner may file a second notice of intent to transfer the project under § 248.161 or, if no bona fide offers are received, to prepay the mortgage or terminate the mortgage insurance.

## Nearby sections

- [24 C.F.R. § 248.101 (2026) § 248.101   Definitions.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_101.md)
- [24 C.F.R. § 248.103 (2026) § 248.103   General prepayment limitation.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_103.md)
- [24 C.F.R. § 248.105 (2026) § 248.105   Notice of intent.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_105.md)
- [24 C.F.R. § 248.111 (2026) § 248.111   Appraisal and preservation value of eligible low income housing.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_111.md)
- [24 C.F.R. § 248.121 (2026) § 248.121   Annual authorized return and aggregate preservation rents.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_121.md)
- [24 C.F.R. § 248.123 (2026) § 248.123   Determination of Federal cost limit.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_123.md)
- [24 C.F.R. § 248.127 (2026) § 248.127   Limitations on action pursuant to Federal cost limit.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_127.md)
- [24 C.F.R. § 248.131 (2026) § 248.131   Information from the Commissioner.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_131.md)
- [24 C.F.R. § 248.133 (2026) § 248.133   Second notice of intent.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_133.md)
- [24 C.F.R. § 248.135 (2026) § 248.135   Plans of action.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_135.md)
- [24 C.F.R. § 248.141 (2026) § 248.141   Criteria for approval of a plan of action involving prepayment and voluntary termination.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_141.md)
- [24 C.F.R. § 248.145 (2026) § 248.145   Criteria for approval of a plan of action involving incentives.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_145.md)
- [24 C.F.R. § 248.147 (2026) § 248.147   Housing standards.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_147.md)
- [24 C.F.R. § 248.149 (2026) § 248.149   Timetable for approval of a plan of action.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_149.md)

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T24_P248_S248_127. Check the current official text before relying on it. Not legal advice.