Box 5, Folder 11, Document 55

Box 5, Folder 11, Document 55

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
RENEWAL ASSISTANCE ADMINISTRATION
WASHINGTON, D.C. 20410

January 15, 1968

LOCAL PUBLIC AGENCY LETTER NO. 4h6

SUBJECT: Utilizing Section 107(a) of the Housing Act
of 1949 for Low-Income Purchasers under
FHA Section 221(h)

FHA recently determined that units rehabilitated under
Section 221(h) of the National Housing Act, as amended, may be
made available to low-income families utilizing a rental agreement
with an option to buy. eT an

Therefore Section 107(a) of the Housing Act of 1949, as
amended, applies to any sale of project land to an eligible non-
profit organization which has obtained from FHA a commitment to
insure under Section 221(h) and which has agreed to rent all
units it will construct to low-income tenants under a rental agreement
with an option to purchase meeting the applicable requirements of

7 a

Acting Deptt ‘hostaten ny seOretary
for Renewal Assistance

HUD-Wash., D. C.,