# 24 C.F.R. § 401.201 (2026): How does HUD select PAEs?

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T24_P401_S401_201

## Section

- **Citation:** 24 C.F.R. § 401.201 (2026)
- **Heading:** How does HUD select PAEs?
- **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 IV: OFFICE OF HOUSING AND OFFICE OF MULTIFAMILY HOUSING ASSISTANCE RESTRUCTURING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT / Part 401: MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET) / Subpart B: Participating Administrative Entity (PAE) and Portfolio Restructuring Agreement (PRA) / § 401.201: § 401.201   How does HUD select PAEs?

## Text

(a)
Selection of PAE.
HUD will select qualified PAEs in accordance with the criteria established in 513(b) of MAHRA and criteria established by HUD. The selection method is within HUD's discretion, including but not limited to a request for qualifications.
(b)
Priority for public agencies.
HUD will provide a one-time priority period for State housing finance agencies and local housing agencies to qualify as the PAEs for their jurisdictions. If more than one agency qualifies for the same jurisdiction, HUD will provide an opportunity for the agencies to allocate responsibility for projects in the jurisdiction. If the agencies are unable to agree, HUD will choose a PAE in accordance with section 513(b)(2) of MAHRA.
(c)
Qualification for PAE by nonprofit and for-profit entities.
After the priority period expires, HUD will consider other eligible entities as PAEs for jurisdictions in which no public agency has qualified as the PAE, or for projects that have not been assigned to a qualified public agency.
(d)
No PAE for project.
If HUD does not select a PAE for a project, HUD may perform the functions of the PAE, or contract with other qualified entities to perform those functions.

## Nearby sections

- [24 C.F.R. § 401.200 (2026) § 401.200   Who may be a PAE?](https://www.frixlaw.com/law-library/statutes/CFR_T24_P401_S401_200.md)
- [24 C.F.R. § 401.201 (2026) § 401.201   How does HUD select PAEs?](https://www.frixlaw.com/law-library/statutes/CFR_T24_P401_S401_201.md)
- [24 C.F.R. § 401.300 (2026) § 401.300   What is a PRA?](https://www.frixlaw.com/law-library/statutes/CFR_T24_P401_S401_300.md)
- [24 C.F.R. § 401.301 (2026) § 401.301   Partnership arrangements.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P401_S401_301.md)
- [24 C.F.R. § 401.302 (2026) § 401.302   PRA administrative requirements.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P401_S401_302.md)
- [24 C.F.R. § 401.303 (2026) § 401.303   PRA indemnity provisions for SHFAs and HAs.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P401_S401_303.md)
- [24 C.F.R. § 401.304 (2026) § 401.304   PRA provisions on PAE compensation.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P401_S401_304.md)
- [24 C.F.R. § 401.309 (2026) § 401.309   PRA term and termination provisions; other provisions.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P401_S401_309.md)
- [24 C.F.R. § 401.310 (2026) § 401.310   Conflicts of interest.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P401_S401_310.md)
- [24 C.F.R. § 401.311 (2026) § 401.311   Standards of conduct.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P401_S401_311.md)
- [24 C.F.R. § 401.312 (2026) § 401.312   Confidentiality of information.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P401_S401_312.md)
- [24 C.F.R. § 401.313 (2026) § 401.313   Consequences of PAE violations; finality of HUD determination.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P401_S401_313.md)
- [24 C.F.R. § 401.314 (2026) § 401.314   Environmental review responsibilities.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P401_S401_314.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T24_P401_S401_201. Check the current official text before relying on it. Not legal advice.