---
kind: "section"
citation: "24 C.F.R. § 401.100"
title: "24"
number: "401.100"
heading: "Which projects are eligible for a Restructuring Plan under this part?"
url: "https://uscodex.org/cfr/24/401.100"
---

# §401.100. Which projects are eligible for a Restructuring Plan under this part?

- (a) **What are the requirements for eligibility?** To be eligible for a Restructuring Plan under this part, a project must:
  - (1) Have a mortgage insured or held by HUD;
  - (2) **Be covered in whole or in part by a contract for project-based assistance under—**
    - (i) The new construction or substantial rehabilitation program under section 8(b)(2) of the U.S. Housing Act of 1937 as in effect before October 1, 1983;
    - (ii) The property disposition program under section 8(b) of the U.S. Housing Act of 1937;
    - (iii) The moderate rehabilitation program under section 8(e)(2) of the United States Housing Act of 1937;
    - (iv) The loan management assistance program under section 8 of the United States Housing Act of 1937;
    - (v) Section 23 of the United States Housing Act of 1937 as in effect before January 1, 1975;
    - (vi) The rent supplement program under [section 101](/cfr/24/101.md) of the Housing and Urban Development Act of 1965;
    - (vii) Section 8 of the United States Housing Act of 1937, following conversion from assistance under [Section 101](/cfr/24/101.md) of the Housing and Urban Development Act of 1965; or
    - (viii) Section 8 of the U.S. Housing Act of 1937 as renewed under [section 524](/cfr/24/524.md) of MAHRA;
  - (3) Have current gross potential rent for the project-based assisted units that exceeds the gross potential rent for the project-based assisted units using comparable market rents;
  - (4) Have a first mortgage that has not previously been restructured under this part or under HUD's Portfolio Reengineering demonstration authority as defined in [§ 402.2(c)](/cfr/24/402.2.md?p=c) of this chapter;
  - (5) Not be a project that is described in [section 514(h)](/cfr/24/514.md?p=h) of MAHRA; and
  - (6) Otherwise meet the definition of “eligible multifamily housing project” in [section 512(2)](/cfr/24/512.md?p=2) of MAHRA or meet the following three criteria:
    - (i) The project is assisted pursuant to a contract for [Section 8](/cfr/24/8.md) assistance renewed under [section 524](/cfr/24/524.md) of MAHRA;
    - (ii) It has an owner that consents for the project to be treated as eligible; and
    - (iii) At the time of its initial renewal under [section 524](/cfr/24/524.md), it met the requirements of section [512(2)(A)](/cfr/24/512.md?p=2-A), [(B)](/cfr/24/512.md?p=2-B), and [(C)](/cfr/24/512.md?p=2-C) of MAHRA.
- (b) **When is eligibility determined?** Eligibility for a Restructuring Plan under [paragraph (a)](#a) of this section is determined by the status of a project on the earlier of the termination or expiration date of the project-based assistance contract, which includes a contract renewed under [section 524](/cfr/24/524.md) of MAHRA, or the date of the owner's request to HUD for a Restructuring Plan. Eligibility is not affected by a subsequent change in status, such as contract extension under [§ 401.600](/cfr/24/401.600.md) or [part 402](/cfr/24/part402.md) of this chapter.

## Notes

### Amendments

[71 FR 2121, Jan. 12, 2006]

### Authority

Authority: 12 U.S.C. 1715z-1 and 1735f-19(b); 42 U.S.C. 1437(c)(8), 1437f(t), 1437f note, and 3535(d).

### Source

Source: 65 FR 15485, Mar. 22, 2000, unless otherwise noted.

### Amendments

[71 FR 2121, Jan. 12, 2006]