---
kind: "section"
citation: "7 C.F.R. § 3560.259"
title: "7"
number: "3560.259"
heading: "Transferring rental assistance."
url: "https://uscodex.org/cfr/7/3560.259"
---

# §3560.259. Transferring rental assistance.

- (a) **Agency authority.** The Agency may transfer rental assistance in the following instances:
  - (1) To accompany the transfer of a housing project to a different borrower;
  - (2) After a voluntary conveyance or a foreclosure sale;
  - (3) After a liquidation, prepayment, or natural maturity;
  - (4) To the extent permitted by law, when any rental assistance units have not been used for a 6-month period ([Section 515](/cfr/7/515.md)) or a 12-month period (Section [514](/cfr/7/514.md) or [516](/cfr/7/516.md)); or
  - (5) **When the loan cannot be closed.**
- (b) **Agency review before transferring rental assistance.** The Agency must perform a review to determine if all eligible tenants in the project are receiving rental assistance before the Agency transfers it to another project.
- (c) **Transferring rental assistance for displaced tenants.** The Agency may transfer rental assistance from one housing project to another eligible housing project for a tenant who is moving due to displacement as a result of prepayment, liquidation, or a natural disaster. The tenant must begin using the rental assistance within 4 months of the transfer or the RA will become available for use by the next rental assistance eligible tenant in the housing project.
- (d) **Agency use of obligation balances.** In lieu of transferring rental assistance units, the Agency may elect to utilize the remaining obligation balances of units identified in paragraphs [(a)(2)](#a-2) and [(3)](#a-3) of this section for renewal purposes.

## Notes

### Amendments

[69 FR 69106, Nov. 26, 2004, as amended at 87 FR 11283, Mar. 1, 2022]

### Authority

Authority: 42 U.S.C. 1480.

### Source

Source: 69 FR 69106, Nov. 26, 2004, unless otherwise noted.

### Amendments

[69 FR 69106, Nov. 26, 2004, as amended at 87 FR 11283, Mar. 1, 2022]