---
kind: "section"
citation: "24 C.F.R. § 290.25"
title: "24"
number: "290.25"
heading: "Determination not to preserve a project or a part of a project."
url: "https://uscodex.org/cfr/24/290.25"
---

# §290.25. Determination not to preserve a project or a part of a project.


HUD may determine to demolish, or otherwise dispose of, a HUD-owned multifamily housing project, or any portion of such a project, or to foreclose a HUD-held mortgage on a multifamily housing project, without ensuring its continued availability as affordable rental or cooperative housing for low- and very low-income families under appropriate circumstances which may include one or more those listed in [paragraphs (a) through (g)](#a..g) of this section. If HUD decides not to preserve an occupied multifamily housing project at a foreclosure sale or sale of a HUD-owned project, tenants must be provided relocation assistance as described in [§ 290.17](/cfr/24/290.17.md).

- (a) The costs to HUD of rehabilitation are such that the monthly debt service needed to amortize the cost of rehabilitation, operating expenses, and a reasonable return to the purchaser cannot be provided with rents that are, for subsidized and formerly subsidized projects, within 120 percent of the most recently published [Section 8](/cfr/24/8.md) Fair Market Rents for Existing Housing ([24 CFR part 888](/cfr/24/part888.md), [subpart A](/cfr/24/subpartA.md)) or, for unsubsidized and formerly unsubsidized projects, within rents obtainable in the market.
- (b) **Construction is substantially incomplete.**
- (c) Preservation is not feasible because of environmental factors that cannot be mitigated by HUD or the purchaser. For example, when the project is located on a site that cannot be made to comply with the [Section 8](/cfr/24/8.md) Site and Neighborhood standards in [24 CFR 886.307(k)](/cfr/24/886.307.md?p=k) because of factors that adversely affect the health, safety and general welfare of residents such as air pollution; smoke; mud slides; fire or explosion hazards. Preservation may also be infeasible because of significantly deteriorated surrounding neighborhood conditions with inadequate police or fire protection; high crime rates; drug infestation; or lack of public community services needed to support a safe and healthy living environment for residents.
- (d) **HUD determines the project is unfit for rehabilitation.**
- (e) **Rehabilitation would cost more than constructing comparable new housing.**
- (f) A reduction in the number of units in the project will enhance long-term project viability, for example, demolition of a building to provide space for a playground, open space, or combining one-bedroom units to create larger units for families.
- (g) Continued preservation of the project as rental or cooperative housing is not compatible with State or local land use plans for the area in which the project is located.

## Notes

### Authority

Authority: 12 U.S.C. 1701z-11, 1701z-12, 1713, 1715b, 1715z-1b, 1715z-11a; 42 U.S.C. 3535(d) and 3535(i).

### Source

Source: 61 FR 11685, Mar. 21, 1996, unless otherwise noted.