27048 Federal Register / Vol. 72, No. 91 / Friday, May 11, 2007 / Proposed Rules 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

24 CFR PART 203 

[Docket No. FR–5087–P–01] 

RIN 2502–AI52 

Standards for Mortgagor’s Investment 

in Mortgaged Property 

AGENCY: Office of the Assistant 

Secretary for Housing—Federal Housing 

Commissioner, HUD. 

ACTION: Proposed rule. 

SUMMARY: Through this proposed rule, 

HUD submits, for public comment, 

specific standards governing a 

mortgagor’s investment in property for 

which the mortgage is insured by the 

Federal Housing Administration (FHA). 

Specifically, this proposed rule would 

codify HUD’s longstanding practice, 

authorized by statute, of allowing a 

mortgagor’s investment to be derived 

from gifts by family members and 

certain organizations. 

The standards would address a 

situation in which the mortgagor’s 

investment is derived from a gift, loan, 

or other payment that is provided by 

any donor, including an individual or 

an organization, and would also specify 

prohibited sources for a mortgagor’s 

investment. The proposed rule would 

establish that a prohibited source of 

downpayment assistance is a payment 

that consists, in whole or in part, of 

funds provided by any of the following 

parties before, during, or after closing of 

the property sale: (1) The seller, or any 

other person or entity that financially 

benefits from the transaction; or (2) any 

third party or entity that is reimbursed 

directly or indirectly by any of the 

parties listed in clause (1). 

DATES: Comments Due Date: July 10, 

2007. 

ADDRESSES: Interested persons are 

invited to submit comments regarding 

this rule to the Regulations Division, 

Office of General Counsel, Department 

of Housing and Urban Development, 

451 Seventh Street, SW., Room 10276, 

Washington, DC 20410–0500. 

Communications should refer to the 

above docket number and title. 

Comment by Mail. Please note that 

due to security measures at all federal 

agencies, submission of comments by 

mail often results in delayed delivery. 

Electronic Submission of Comments. 

HUD now accepts comments 

electronically. Interested persons may 

now submit comments electronically 

through the Federal eRulemaking Portal 

at www.regulations.gov. HUD strongly 

encourages commenters to submit 

comments electronically. Electronic 

submission of comments allows the 

commenter maximum time to prepare 

and submit a comment, ensures timely 

receipt by HUD, and enables HUD to 

make them immediately available for 

public viewing. Commenters should 

follow the instructions provided at 

www.regulations.gov to submit 

comments electronically. 

No Facsimile Comments. Facsimile 

(Fax) comments are not acceptable. In 

all cases, communications must refer to 

the docket number and title. 

Public Inspection of Public 

Comments. All comments and 

communications submitted will be 

available, without revision, for 

inspection and downloading at 

www.regulations.gov. Comments are 

also available for public inspection and 

copying between 8 a.m. and 5 p.m. 

weekdays at the Office of Regulations. 

Due to security measures at the HUD 

Headquarters building, please schedule 

an appointment to review the comments 

by calling the Regulations Division at 

(202) 708–3055 (this is not a toll-free 

number). 

FOR FURTHER INFORMATION CONTACT: 

James Beavers, Acting Director, Office of 

Single Family Program Development, 

Department of Housing and Urban 

Development, 451 Seventh Street, SW., 

Washington, DC 20410; telephone (202) 

708–2121 (this is not a toll-free 

number). Persons with hearing or 

speech impairments may access this 

number through TTY by calling the tollfree Federal Information Relay Service 

at (800) 877–8339. 

SUPPLEMENTARY INFORMATION: 

Background 

In order for a mortgage to be eligible 

for insurance by the Federal Housing 

Administration (FHA), section 203(b)(9) 

of the National Housing Act (12 U.S.C. 

1709(b)(9)) requires the mortgagor (with 

narrow exceptions) to pay on account of 

the property at least 3 percent of the 

cost of acquisition. The statute and the 

implementing regulation at 24 CFR 

203.19 are silent about permissible or 

impermissible sources of the 

mortgagor’s investment, except that 

some loans are permitted sources under 

the statute. For example, section 

203(b)(9) of the National Housing Act 

permits family members to provide 

loans to other family members, and 

permits the mortgagor’s downpayment 

to be paid by a corporation or person 

other than the mortgagor in certain 

circumstances, such as when the 

mortgagor is 60 years of age or older, or 

when the mortgage covers a housing 

unit in a homeownership program 

under the Homeownership and 

Opportunity through HOPE Act (Title IV 

of Pub. L. 101–625, 104 Stat. 4148, 

approved November 28, 1990). 

In a 1999 proposed rule, HUD 

addressed the subject of prohibited 

sources of downpayment assistance. At 

that time, downpayment assistance from 

seller-funded or reimbursed charitable 

organizations was a matter of concern to 

HUD. (See HUD’s proposed rule 

published on September 14, 1999, 64 FR 

49956.) In 2001, HUD withdrew the 

1999 proposed rule. (See January 12, 

2001, notice of withdrawal of proposed 

rule at 66 FR 2851.) The matter, 

however, remains of concern to HUD. 

Gifts for homeowners’ downpayments 

from charitable organizations have 

continued to raise concerns in those 

cases in which the seller, or any party 

that financially benefits from the 

transaction, contributes funds to the 

mortgagor’s downpayment. A party that 

might benefit from the transaction may 

be a family member of the seller, a real 

estate agent, or a broker. 

Although FHA has attempted to 

preclude downpayment funding derived 

from contributions of the seller of the 

property, some charitable organizations 

have been able to circumvent these 

restrictions in various ways, including 

the establishment of a fund that 

provides the so-called ‘‘gift’’ to the 

homebuyer. The situations that cause 

FHA concern are primarily those in 

which the fund is replenished after loan 

closing by the seller who provides a 

‘‘charitable donation’’ and, in some 

cases, pays a ‘‘service fee’’ to the 

organization from the proceeds of the 

sale of the house and does so only if the 

homebuyer is using the charitable 

organization’s downpayment assistance 

program. In these cases, there is a clear 

quid pro quo between the homebuyer’s 

purchase of the property and the seller’s 

‘‘contribution’’ or payment to the 

charitable organization. This is also true 

if the contribution to the charitable 

organization comes from an entity other 

than the seller that has an expectation 

of being reimbursed by the seller. Often, 

these contributions function as an 

inducement to purchase the home. 

FHA’s primary concern with these 

transactions is that the sales price is 

often increased to ensure that the 

seller’s net proceeds are not diminished, 

and such increase in sales price is often 

to the detriment of the borrower and 

FHA. A Government Accountability 

Office (GAO) report released in 2005 

entitled ‘‘Mortgage Financing Actions 

Need to Help FHA Manage Risks from 

New Loan Products’’ (GAO Mortgage 

Financing Report) stated that Fannie 

Mae and Freddie Mac do not allow 


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Federal Register / Vol. 72, No. 91 / Friday, May 11, 2007 / Proposed Rules 27049 

seller-related contributions to the 

downpayment, and that seller-related 

contributions could contribute to an 

overvaluation of the price of the 

property (GAO Mortgage Financing 

Report at page 16). 

In May 2006, the Internal Revenue 

Service (IRS) addressed these same 

concerns by issuing Revenue Ruling 

2006–27, which provides guidelines on 

organizations that may provide 

downpayment assistance to homebuyers 

and qualify as tax-exempt charitable or 

educational organizations under 

Internal Revenue Code (IRC) section 

501(c)(3), and those that do not qualify 

for this tax-exempt status. The IRS, in 

its press announcement of the ruling, 

stated that funneling downpayment 

assistance from sellers to buyers through 

‘‘self-serving, circular-financing 

arrangements’’ is inconsistent with 

operation as a section 501(c)(3) 

charitable organization. The IRS stated 

that, in a typical scheme, there is a 

direct correlation between the amount 

of the downpayment assistance 

provided to the buyer and the payment 

received from the seller, the seller pays 

the organization only if the sale closes, 

and the organization usually charges an 

additional fee for its services. The IRS 

noted that so-called charities that 

manipulate the system do more than 

mislead honest homebuyers; these 

organizations ultimately cause an 

increase in the cost of the home and 

damage the image of honest, legitimate 

charities. (See IRS News Release of May 

4, 2006, at http://www.irs.gov/ 

newsroom/article/0,id=156675,00.html.) 

As the IRS also noted in its press 

release, inflated sales prices are often 

found on properties purchased with 

downpayment assistance from sellerfunded nonprofit programs. Unlike true 

gifts that reduce the amount of the 

purchase price financed by the 

homeowner, such seller contributions 

increase the sales price of the home and 

result in higher mortgage payments. As 

noted by the revenue ruling, inflated 

sales prices result in inflated mortgage 

amounts, which increase the severity of 

individual claims on the FHA Insurance 

Fund and FHA losses on claims paid on 

such mortgages. Given that sellerfunded gift programs thrive in stagnant 

or depreciating housing markets, the 

risk to FHA increases if FHA cannot 

recover the full amount owed when 

FHA acquires and resells a home that 

had been purchased by a participating 

borrower who had defaulted on the 

FHA-insured loan. 

This Proposed Rule 

This proposed rule would codify 

standards regarding the use of gifts as a 

source of the mortgagor’s investment in 

the mortgaged property, and would also 

specify prohibited sources for a 

mortgagor’s investment. Permissible 

sources of gifts as a source of the 

mortgagor’s investment include a family 

member, a governmental or public 

agency, the borrower’s employer or 

labor union, and a charitable 

organization that qualifies as a taxexempt charitable or educational 

organization under section 501(c)(3) of 

the IRC of 1986. The proposed rule 

would establish that a prohibited source 

of downpayment assistance is a 

payment that consists, in whole or in 

part, of funds provided by any of the 

following parties before, during, or after 

closing of the property sale: (1) The 

seller, or any other person or entity that 

financially benefits from the transaction; 

or (2) any third party or entity (referred 

to as a ‘‘donor’’) that is reimbursed 

directly or indirectly by any of the 

parties listed in clause (1). The use of 

the term ‘‘indirectly’’ in this proposed 

rule precludes the seller from providing 

the donor with funds through an 

individual or organization other than 

the seller, such as a family member of 

the seller. The use of the term 

‘‘financially benefits’’ in this proposed 

rule is intended to capture, for example, 

real estate agents or real estate brokers 

who would benefit from the sale of the 

home to the mortgagor. The concern is 

that the problems with seller-funded 

contributions, as described earlier in 

this preamble, exist regardless of the 

route by which the funds are provided 

to the mortgagor. 

A prohibited source of downpayment 

assistance, as defined in this rule, 

would apply to sales of existing homes 

by private sellers as well as sales by 

builders, developers, and others 

involved in new construction, or any 

party that financially benefits from the 

transaction. HUD would not allow any 

form of downpayment assistance, in any 

of its programs, if the downpayment 

assistance is derived, in whole or in 

part, directly or indirectly, from 

prohibited funds as described in this 

rule. 

While the proposed rule is intended 

to prevent sellers from funding 

downpayments in their own home sales 

transactions, the proposed rule is not 

intended to preclude sellers from 

contributing to charitable organizations, 

which are often sources of donor 

downpayment assistance, that provide 

downpayment assistance that is 

unrelated in any manner to any 

properties sold by the seller. In 

addition, the rule is not intended to 

preclude reasonable assistance with 

closing costs not related to the 

minimum investment, which may be 

permitted under local practice. Nothing 

in this rule proposes to change HUD’s 

policy of allowing builders and other 

sellers to offer cash incentives to 

homebuyers, provided that any cash or 

cash equivalent given to a homebuyer 

before, at, or after closing results in a 

proportionate reduction to the mortgage; 

an amount which the homebuyer then 

would have to provide as additional 

funds at closing. The primary focus of 

this rule is to establish appropriate 

standards for downpayment assistance 

to a homebuyer that is categorized as a 

gift. 

HUD currently requires that the gift to 

the borrower that is to serve as an 

investment in the property to be 

purchased must be documented in 

writing. The lender must document the 

gift funds through a letter signed by the 

donor and the borrower specifying, 

among other things, information about 

the donor, that no repayment by the 

borrower is required, and describing the 

relationship between the donor and the 

borrower. This proposed rule does not 

propose to change these current 

practices. Therefore, given the 

continued concerns about gifts based on 

seller-funded contributions, this rule 

proposes the following regulatory 

changes to 24 CFR 203.19. 

HUD’s current regulation of the 

mortgagor’s minimum payment 

requirement is found at 24 CFR 203.19. 

As proposed to be revised by this rule, 

§ 203.19 would have the following 

organization: 

Paragraph (a) would require a 

mortgagor to have the funds needed to 

complete the transaction (payment of 

purchase price and settlement costs) in 

addition to the funds provided by the 

insured mortgage. This basic policy was 

previously stated only in a handbook 

rather than a regulation, but it is a basic 

requirement of mortgage lending and 

does not represent a new substantive 

policy. 

Paragraph (b) would correspond with 

the first part of section 203(b)(9) of the 

National Housing Act by stating the 

basic rule for a 3 percent mortgagor cash 

investment. The statute and the current 

regulation give HUD the discretion to 

require more than 3 percent, but it is no 

longer necessary to reserve this 

discretion in regulations. In practice, 

HUD has not required more than 3 

percent, except as needed to satisfy the 

basic requirement for cash sufficient to 

close the transaction (as stated in 

proposed new paragraph (a)). Both the 

statute and the current regulation 

exempt the following from the 3 percent 

requirement: (1) Veterans who can 

qualify under section 203(b)(2) of the 


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27050 Federal Register / Vol. 72, No. 91 / Friday, May 11, 2007 / Proposed Rules 

National Housing Act and (2) disaster 

victims who can qualify for 100 percent 

mortgage financing under section 203(h) 

of the National Housing Act. However, 

HUD’s current regulation in 

§ 203.19(a)(2) imposes a $200 minimum 

cash investment requirement for those 

mortgagors. That $200 requirement is no 

longer meaningful in relation to vast 

increases in home values and mortgage 

amounts since the $200 requirement 

was adopted, and HUD proposes to 

delete it from the regulations in the 

interest of simplifying mortgage 

processing. 

Paragraph (c) of the proposed rule 

would establish prohibited sources of 

downpayment assistance, as discussed 

in this preamble. HUD, however, has 

recognized local market practices in 

which sellers customarily agree to pay 

some of the buyer’s closing costs. 

Beginning in the mid-1980’s, HUD’s 

administrative policies reflected in 

mortgagee letters and handbooks have 

permitted some seller contributions, 

consistent with local market practices 

that would be reflected in local 

appraisal practices, but never more than 

6 percent of the purchase price. 

Proposed paragraph (c) will not prohibit 

reasonable seller contributions to 

closing costs. 

Paragraph (d) would state the general 

policy that funds from loans or gifts may 

not be used for any part of the 

mortgagor’s minimum investment, 

unless otherwise permitted by the rule. 

Paragraph (e), like current § 203.19(b), 

would identify certain loan sources 

authorized by statute. The paragraph 

would clearly state HUD’s historical 

understanding of the congressional 

intent behind section 203(b)(9) of the 

National Housing Act, which is that 

loans are a forbidden source of the 3 

percent minimum investment unless a 

statute provides otherwise. 

Paragraph (e) would also include 

certain statutory authorizations on 

which HUD relies, but which are 

currently not stated or referenced in 

regulations (family loans and 

government loan programs). Although 

paragraph (e) would restrict only the use 

of loans for the 3 percent minimum cash 

investment and would not apply to the 

rest of the required investment, it is 

important to note that 24 CFR 203.32 

contains restrictions on secondary 

financing that is unsecured or secured 

by the home. Paragraph (e) would not 

supersede § 203.32. 

Finally, paragraph (f) would list the 

limited permissible sources of gifts. 

Findings and Certifications 

Regulatory Planning and Review 

The Office of Management and Budget 

(OMB) reviewed this rule under 

Executive Order 12866, Regulatory 

Planning and Review. OMB determined 

that this rule is a ‘‘significant regulatory 

action,’’ as defined in section 3(f) of the 

Order (although not an economically 

significant regulatory action under the 

Order). The docket file is available for 

public inspection in the Regulations 

Division, Office of General Counsel, 

Room 10276, 451 Seventh Street, SW., 

Washington, DC 20410–0500. Due to 

security measures at the HUD 

Headquarters building, please schedule 

an appointment to review the docket file 

by calling the Regulations Division at 

(202) 708–3055 (this is not a toll-free 

number). 

Environmental Review 

A Finding of No Significant Impact is 

not required for this proposed rule. 

Under 24 CFR 50.19(b)(6), this proposed 

rule is categorically excluded from the 

requirements of the National 

Environmental Policy Act (42 U.S.C. 

4332 et seq.). 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

(5 U.S.C. 601 et seq.) generally requires 

an agency to conduct a regulatory 

flexibility analysis of any rule subject to 

notice and comment rulemaking 

requirements, unless the agency certifies 

that the rule will not have a significant 

economic impact on a substantial 

number of small entities. 

The purpose of this rule, as noted in 

the preamble, is to establish standards 

regarding the use of gifts by borrowers 

with an FHA-insured mortgage—

primarily standards that would address 

gifts by charitable organizations—as a 

source of an FHA mortgagor’s 

investment in the mortgaged property. 

To date, HUD’s practice has been to 

limit permissible sources of gifts to 

family members, governmental agencies, 

employer of the mortgagor, labor union 

of the mortgagor, or charitable 

organizations. HUD is not narrowing the 

sources of gifts through this rulemaking 

but rather striving to ensure that gifts 

are gifts and that especially in the 

situation of gifts from charitable 

organizations, the gift is not a quid pro 

quo between the homebuyer’s purchase 

of the property and the seller’s 

‘‘contribution’’ or payment to the 

charitable organization. 

The prohibited sources of 

downpayment assistance, as structured 

in this proposed rule, are narrow and 

should not encompass a substantial 

number of small entities that are 

engaged in downpayment assistance to 

homebuyers, which, to date, have 

primarily been charitable organizations 

with tax-exempt status. 

As noted earlier in this preamble, the 

IRS, in Revenue Ruling 2006–27, has 

ruled that an organization that relies 

‘‘on sellers and other real-estate related 

businesses that stand to benefit from the 

transaction’’ to finance downpayment 

assistance provided as part of the same 

transaction does not qualify as 

charitable organizations described in 

section 501(c)(3) of the IRC. 

Organizations that meet the criteria of 

section 501(c)(3) qualify for exemption 

from federal income taxation pursuant 

to IRC section 501(a). HUD’s proposed 

rulemaking will not have any significant 

economic impact on small entities that 

qualify as charitable organizations 

described in section 501(c)(3) of the IRC 

and are exempt from tax under section 

501(a) of the IRC because existing law 

prevents those organizations from 

providing seller-financed downpayment 

assistance while maintaining their taxexempt status. 

The IRS ruling also describes two 

organizations that provide 

downpayment assistance and qualify as 

charitable organizations described in 

section 501(c)(3) of the IRC and are 

exempt from tax under section 501(a) of 

the IRC. These organizations do not 

accept contributions from sellers that 

are contingent upon the sale of the 

seller’s property. They follow additional 

policies and procedures that ensure that 

any benefit to sellers or other parties 

with an interest in selling homes is 

incidental to any transaction in which 

the charitable organization provides 

downpayment assistance. The 

organizations will accept contributions 

from property sellers, but only if the 

contributions are not contingent on the 

sale of the seller’s property or a quid pro 

quo for the sale of the property. HUD’s 

proposed rule permits downpayment 

assistance to be provided by section 

501(c)(3) organizations in a manner 

consistent with the IRS ruling. 

Charitable organizations, large or 

small, remain eligible to provide 

downpayment assistance to FHA 

mortgagors, subject to meeting the 

requirements of § 203.19, as proposed to 

be revised by this rule. HUD’s proposed 

rule does not preclude gifts from 

charitable organizations that provide 

housing assistance in a manner that is 

consistent with operation for 

exclusively charitable purposes. 

Accordingly, the undersigned certifies 

that this rule will not have a significant 

economic impact on a substantial 

number of small entities. 


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Notwithstanding this determination, 

small entities are specifically invited to 

comment on whether this proposed rule 

will significantly affect them, and to 

make any recommendations on 

alternatives for compliance with the 

requirements of this rule. Comments 

should be submitted in accordance with 

the instructions in the DATES and 

ADDRESSES sections in the preamble of 

this proposed rule. 

Executive Order 12612, Federalism 

The General Counsel, as the 

Designated Official under section 6(a) of 

Executive Order 12612, Federalism, has 

determined that this proposed rule 

would not have ‘‘federalism 

implications’’ because it does not have 

substantial direct effects on the states 

(including their political subdivisions), 

or on the distribution of power and 

responsibilities among the various 

levels of government. This proposed 

rule solely addresses requirements 

under HUD’s FHA mortgage insurance 

programs. 

Unfunded Mandates Reform Act 

Title II of the Unfunded Mandates 

Reform Act of 1995 (Pub. L. 104–4, 

approved March 22, 1995) established 

requirements for federal agencies to 

assess the effects of their regulatory 

actions on state, local, and tribal 

governments, and the private sector. 

This proposed rule does not impose any 

federal mandates on any state, local, or 

tribal governments or the private sector 

within the meaning of the Unfunded 

Mandates Reform Act of 1995. 

Catalog of Federal Domestic Assistance 

The Catalog of Federal Domestic 

Assistance Number for the principal 

FHA single-family mortgage insurance 

program is 14.117. This proposed rule 

would also apply through crossreferencing to FHA mortgage insurance 

for condominium units (14.133), and 

other smaller single-family programs. 

List of Subjects in 24 CFR Part 203 

Loan programs—housing and 

community development, Mortgage 

insurance, Reporting and recordkeeping 

requirements. 

Accordingly, the Department 

proposes to amend 24 CFR part 203, as 

follows: 

PART 203—SINGLE FAMILY 

MORTGAGE INSURANCE 

1. The authority citation for part 203 

continues to read: 

Authority: 12 U.S.C. 1709, 1710, 1715b, 

1715z–16, and 1715u; 42 U.S.C. 3535(d). 

2. Section 203.19 is revised to read as 

follows: 

§ 203.19 Mortgagor’s investment in the 

property. 

(a) Required funds. The mortgagor 

must have available funds equal to the 

difference between: 

(1) The cost of acquisition, which is 

the sum of the purchase price of the 

home and settlement costs acceptable to 

the Secretary; and 

(2) The amount of the insured 

mortgage. 

(b) Mortgagor’s minimum cash 

investment. The required funds under 

paragraph (a) of this section must 

include an investment in the property 

by the mortgagor, in cash or cash 

equivalent, equal to at least 3 percent of 

the cost of acquisition as determined by 

the Secretary, unless the mortgagor is: 

(1) A veteran meeting the 

requirements of § 203.18(b); or 

(2) A disaster victim meeting the 

requirements of § 203.18(e). 

(c) Restrictions on seller funding. 

Notwithstanding paragraphs (e) and (f) 

of this section, the funds required by 

paragraph (a) of this section shall not 

consist, in whole or in part, of funds 

provided by any of the following parties 

before, during, or after closing of the 

property sale: 

(1) The seller or any other person or 

entity that financially benefits from the 

transaction; or 

(2) Any third party or entity that is 

reimbursed, directly or indirectly, by 

any of the parties described in 

paragraph (c)(1) of this section. 

(d) Gifts and loans usually prohibited 

for minimum cash investment. A 

mortgagor may not use funds for any 

part of the minimum cash investment 

under paragraph (b) of this section if the 

funds were obtained through a loan or 

a gift from any person, except as 

provided in paragraphs (e) and (f) of this 

section, respectively. 

(e) Permissible sources of loans. 

(1) Statutory authorization needed. A 

statute must authorize a loan as a source 

of the mortgagor’s minimum cash 

investment under paragraph (b) of this 

section. 

(2) Examples. The following loans are 

authorized by statute as a source for the 

minimum investment: 

(i) A loan from a family member, a 

loan to a mortgagor who is at least 60 

years old when the mortgage is accepted 

for insurance, or a loan that is otherwise 

expressly authorized by section 

203(b)(9) of the National Housing Act; 

(ii) A loan made or held by, or insured 

by, a federal, state, or local government 

agency or instrumentality under terms 

and conditions approved by the 

Secretary; and 

(iii) A federal disaster relief loan. 

(f) Permissible sources of gifts. The 

following are permissible sources of 

gifts or grants used for the mortgagor’s 

minimum investment under paragraph 

(b) of this section: 

(1) Family members and 

governmental agencies and 

instrumentalities eligible under 

paragraphs (e)(2)(i) and (ii) of this 

section; 

(2) An employer or labor union of the 

mortgagor; 

(3) Charitable organizations exempt 

from taxation under section 501(a), 

pursuant to section 501(c)(3) of the 

Internal Revenue Code of 1986, subject 

to paragraph (c) of this section; 

(4) Disaster relief grants; and 

(5) Other sources as may be approved 

by the Secretary on a case-by-case basis. 

Dated: April 13, 2007. 

Brian D. Montgomery, 

Assistant Secretary for Housing-Federal 

Housing Commissioner. 

[FR Doc. E7–9067 Filed 5–10–07; 8:45 am] 

BILLING CODE 4210–67–P 


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