---
kind: "section"
citation: "24 C.F.R. § 248.405"
title: "24"
number: "248.405"
heading: "Grants for building resident capacity and funding predevelopment costs."
url: "https://uscodex.org/cfr/24/248.405"
---

# §248.405. Grants for building resident capacity and funding predevelopment costs.

- (a) **General.** Assistance made available under this subpart shall be used for direct assistance grants to resident organizations and community-based nonprofit housing developers and resident councils to assist the acquisition of specific projects (including payment of reasonable administrative expense to participating intermediaries.) Assistance made available under [subpart E](/cfr/24/subpartE.md) of this part will be distributed on a noncompetitive basis. HUD will publish a Notice in the Federal Register announcing the availability of assistance, as well as the application requirements and procedures and selection criteria that HUD will use in making the assistance available.
- (b) **Allocation.** Thirty percent of the assistance made available under this subpart shall be used for resident capacity grants in accordance with [paragraph (d)](#d) of this section. The remainder shall be used for predevelopment grants in connection with specific projects in accordance with [paragraph (e)](#e) of this section.
- (c) **Limitation on grant amounts.** A resident capacity grant under [paragraph (d)](#d) of this section may not exceed $30,000 per project and a grant under [paragraph (e)](#e) of this section for predevelopment costs may not exceed $200,000 per project, exclusive of any fees paid to a participating intermediary by the Commissioner for administering grants under this subpart.
- (d) **Resident Capacity grants—**
  - (1) **Use.** Resident capacity grants under [paragraph (d)](#d) of this section shall be available to eligible applicants to cover expenses for resident outreach, incorporation of a resident organization or council, conducting democratic elections, training, leadership development, legal and other technical assistance to the board of directors, staff and members of the resident organization or council.
  - (2) **Eligible housing.** Grants under this [paragraph (d)](#d) of this section may be provided with respect to eligible low income housing for which the owner has filed a notice of intent under [subpart B](/cfr/24/subpartB.md) or [subpart C](/cfr/24/subpartC.md) of this part.
- (e) **Predevelopment grants—**
  - (1) **Use.** Predevelopment grants under [paragraph (e)](#e) of this section shall be made available to community-based nonprofit housing developers and resident councils to cover the cost of organizing a purchasing entity and pursuing an acquisition, including third party costs for training, development consulting, legal, appraisal, accounting, environmental, architectural and engineering, application fees, and sponsor's staff and overhead costs.
  - (2) **Eligible housing.** These grants may only be made available with respect to any eligible low income housing project for which the owner has filed a notice of intent to transfer the housing to a qualified purchaser in accordance with [§ 248.105](/cfr/24/248.105.md) or [§ 248.211](/cfr/24/248.211.md), or has filed a notice of intent and entered into a binding agreement to sell the housing to a resident organization or nonprofit organization.
  - (3) **Phase-in of grant payments.** Grant payments under [paragraph (e)](#e) of this section shall be made in phases, based on performance benchmarks established by the Commissioner in consultation with intermediaries selected under § [248](/cfr/24/248.md),[415](/cfr/24/415.md).
- (f) **Grant applications.** Grant applications for assistance under paragraphs [(d)](#d) and [(e)](#e) of this section shall be received monthly on a rolling basis and approved or rejected on at least a quarterly basis by intermediaries selected under [§ 248.415(b)](/cfr/24/248.415.md?p=b).
- (g) **Appeal.** If an application for assistance under paragraphs [(d)](#d) or [(e)](#e) of this section is denied, the applicant shall have the right to appeal the denial to the Commissioner and receive a binding determination within 30 days of the appeal.

## Notes

### Source

Source: 58 FR 37817, July 13, 1993, unless otherwise noted.

### Authority

Authority: 12 U.S.C. 17151 note, 4101 note, and 4101-4124; 42 U.S.C. 3535(d).