---
kind: "section"
citation: "24 C.F.R. § 245.405"
title: "24"
number: "245.405"
heading: "Applicability of subpart."
url: "https://uscodex.org/cfr/24/245.405"
---

# §245.405. Applicability of subpart.


The requirements of this subpart apply to any request by a mortgagor, as provided by [§ 245.10](/cfr/24/245.10.md), for HUD approval of one or more of the following covered actions:

- (a) Conversion of a project from project-paid utilities to tenant-paid utilities, or a reduction in tenant utility allowances.
- (b) Conversion of residential units in a multifamily housing project to a nonresidential use or to condominiums, or the transfer of the project to a cooperative housing mortgagor corporation or association. Conversion of a project to a cooperative or of a portion of a project to nonresidential use does not constitute a change of use requiring mortgagee approval.
- (c) **A partial release of mortgage security.** The requirements of this subpart, however, do not apply to any release of property from a mortgage lien with respect to a utility easement or a public taking of such property by condemnation or eminent domain.
- (d) **Making major capital additions to the project.** For the purposes of this subpart, the term “major capital additions” includes only those capital improvements that represent a substantial addition to the project. Upgrading or replacing existing capital components of the project does not constitute a major capital addition to the project.

## Notes

### Source

Source: 61 FR 57962, Nov. 8, 1996, unless otherwise noted.

### Authority

Authority: 12 U.S.C. 1715z-1b; 42 U.S.C. 3535(d).