24 C.F.R. § 886.306
§ 886.306 Notices. (24 CFR Part 886)
Operative Text
Before a project is approved for sale in accordance with this subpart, and as a part of the process of preparing a disposition recommendation in accordance with 24 CFR part 290, the field office manager must notify in writing the chief executive officer of the unit of general local government in which the project is located (or the designee of that officer) of the proposed sale with housing assistance, and must afford the unit of local government an opportunity to review and comment upon the proposed sale in accordance with 24 CFR part 791. Local government review should address consistency with the housing needs and strategy of the community, rather than strict conformance to the limitations on variations from housing assistance plan goals which are contained in part 791.
Under § 886.306, before any federally assisted housing project covered by this subpart can be approved for sale, the relevant HUD field office manager is required to send written notice to the top elected or appointed official of the local government where the project sits—or that official's designee. That local government then receives a formal opportunity to review and comment on the proposed sale, with the review focused on whether the transaction aligns with the community's broader housing needs and strategy rather than on narrow technical compliance with housing assistance plan targets.
Plain English — not legal advice.
Owners and operators involved in a proposed sale under § 886.306 should be aware that HUD's field office manager—not the property owner—carries the obligation to issue written notice to the local government chief executive. A compliant disposition process under this provision includes documentation showing that local government notification occurred and that a comment period was afforded before sale approval was finalized. Operators preparing disposition recommendations under 24 CFR part 290 generally coordinate with the field office to confirm that the § 886.306 notice requirement has been satisfied as part of the overall approval timeline.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 886.306 establishes a procedural protection that brings local government into the review process before a federally assisted project in your area can be sold with housing assistance attached. Tenants living in projects subject to a proposed sale may find it useful to engage their local government representatives during the comment period, since that review is meant to address community housing needs and strategy. Tenant-rights organizations and local housing advocacy groups can be valuable resources for understanding how the § 886.306 notice and comment process is unfolding for a specific project.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
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