# 24 CFR § 248.127: Limitations on action pursuant to Federal cost limit

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-24-248.127

## Section

- **Citation:** 24 CFR § 248.127
- **Heading:** Limitations on action pursuant to Federal cost limit
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** 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 > SUBCHAPTER B—MORTGAGE AND LOAN INSURANCE PROGRAMS UNDER NATIONAL HOUSING ACT AND OTHER AUTHORITIES > 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

## 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 CFR § 248.1 § 248.1 Purpose.](https://www.frixlaw.com/law-library/statutes/ecfr-24-248.1.md)
- [24 CFR § 248.3 § 248.3 Applicability.](https://www.frixlaw.com/law-library/statutes/ecfr-24-248.3.md)
- [24 CFR § 248.5 § 248.5 Election to proceed under subpart B or subpart C of this part.](https://www.frixlaw.com/law-library/statutes/ecfr-24-248.5.md)
- [24 CFR § 248.101 § 248.101 Definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-24-248.101.md)
- [24 CFR § 248.103 § 248.103 General prepayment limitation.](https://www.frixlaw.com/law-library/statutes/ecfr-24-248.103.md)
- [24 CFR § 248.105 § 248.105 Notice of intent.](https://www.frixlaw.com/law-library/statutes/ecfr-24-248.105.md)
- [24 CFR § 248.111 § 248.111 Appraisal and preservation value of eligible low income housing.](https://www.frixlaw.com/law-library/statutes/ecfr-24-248.111.md)
- [24 CFR § 248.121 § 248.121 Annual authorized return and aggregate preservation rents.](https://www.frixlaw.com/law-library/statutes/ecfr-24-248.121.md)
- [24 CFR § 248.123 § 248.123 Determination of Federal cost limit.](https://www.frixlaw.com/law-library/statutes/ecfr-24-248.123.md)
- [24 CFR § 248.127 § 248.127 Limitations on action pursuant to Federal cost limit.](https://www.frixlaw.com/law-library/statutes/ecfr-24-248.127.md)
- [24 CFR § 248.131 § 248.131 Information from the Commissioner.](https://www.frixlaw.com/law-library/statutes/ecfr-24-248.131.md)
- [24 CFR § 248.133 § 248.133 Second notice of intent.](https://www.frixlaw.com/law-library/statutes/ecfr-24-248.133.md)
- [24 CFR § 248.135 § 248.135 Plans of action.](https://www.frixlaw.com/law-library/statutes/ecfr-24-248.135.md)
- [24 CFR § 248.141 § 248.141 Criteria for approval of a plan of action involving prepayment and voluntary termination.](https://www.frixlaw.com/law-library/statutes/ecfr-24-248.141.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-24-248.127. Check the current official text before relying on it. Not legal advice.