# 24 C.F.R. § 906.31 (2026): Requirements applicable to net proceeds resulting from sale

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T24_P906_S906_31

## Section

- **Citation:** 24 C.F.R. § 906.31 (2026)
- **Heading:** Requirements applicable to net proceeds resulting from sale
- **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 IX: OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT / Part 906: PUBLIC HOUSING HOMEOWNERSHIP PROGRAMS / Subpart D: Program Administration / § 906.31: § 906.31   Requirements applicable to net proceeds resulting from sale.

## Text

(a)
PHA use of net proceeds.
The PHA must use any net proceeds of any sales under a homeownership program remaining after payment of all costs of the sale for purposes relating to low-income housing and in accordance with its PHA plan.
(b)
PRE use of resale net proceeds.
The PHA may require the PRE to return the net proceeds from the resale of the units to the PHA. If the PHA permits the PRE to retain the net proceeds, the PRE must use these proceeds for low-income housing purposes.
(c)
Transfer of unsold unit to PHA.
In a situation where the PRE fails to sell a unit to an eligible family within 5 years, and the provision of § 906.19(d) requiring that the unit be transferred to the PHA applies:
(1) If the unit has not been operated by the PRE as a public housing unit at any time during the 5-year period, the PHA may resell the unit in accordance with this part or any successor homeownership program of the department, or apply to have the unit included in its public housing program, if it meets all statutory and regulatory requirements of the public housing program; or
(2) If the unit has been operated by the PRE as a public housing unit within such a 5-year period, the PHA must return the unit to operation in its regular public housing program.
(d)
Transfer of unsold unit operated as public housing to PHA.
Where the PRE operates the unit as public housing during the 5-year interim period under § 960.40, and fails to sell the unit to an eligible family within such 5-year period and the provision of § 906.19(d) applies, the PHA must return the unit to operation in its regular public housing program.

## Nearby sections

- [24 C.F.R. § 906.23 (2026) § 906.23   Protections available to non-purchasing public housing residents.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P906_S906_23.md)
- [24 C.F.R. § 906.24 (2026) § 906.24   Protections available to non-purchasing residents of housing other than public housing.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P906_S906_24.md)
- [24 C.F.R. § 906.25 (2026) § 906.25   Ownership interests that may be conveyed to a purchaser.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P906_S906_25.md)
- [24 C.F.R. § 906.27 (2026) § 906.27   Limitations applicable to net proceeds on the sale of a property acquired through a homeownership program.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P906_S906_27.md)
- [24 C.F.R. § 906.29 (2026) § 906.29   Below-Market sales and financing.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P906_S906_29.md)
- [24 C.F.R. § 906.31 (2026) § 906.31   Requirements applicable to net proceeds resulting from sale.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P906_S906_31.md)
- [24 C.F.R. § 906.33 (2026) § 906.33   Reporting and recordkeeping requirements.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P906_S906_33.md)
- [24 C.F.R. § 906.35 (2026) § 906.35   Inapplicability of section 18 of the United States Housing Act of 1937.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P906_S906_35.md)
- [24 C.F.R. § 906.37 (2026) § 906.37   Davis-Bacon and HUD wage rate requirements.](https://www.frixlaw.com/law-library/statutes/CFR_T24_P906_S906_37.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T24_P906_S906_31. Check the current official text before relying on it. Not legal advice.