(b) Amount of payment. Tenants eligible under paragraph (a) of this section shall be paid an amount by HUD which may not exceed the average out-of-pocket moving costs per family or individual determined by the HUD field office from a survey of the local market.

§ 290.50 Method of sale.

(a) Competitive offering. Except as provided in paragraph (b) and (c) of this section, the disposition of HUDowner multifamily projects shall be by competitive offering.

(1) Interested bidders shall be invited to submit sealed bids in accordance with bidding instructions issued by HUD. Offerings shall be publicized by advertisement and distribution of a prospectus.

(2) Bids must be posted, or delivered by other means, so as to be received by the addressee not later than the return date specified in the advertisement. The bidding instructions shall govern the submission of mailed bids, late bids and modifications or withdrawal of bids. Bids shall be opened publicly.

(3) The contract shall be awarded to the highest responsive, responsible bidder: Provided, That HUD reserves the right, in its discretion, to reject all bids. No bids shall be considered which does not meet the terms established by HUD. In determining whether a bidder is responsible, HUD shall evaluate the bidder's experience, and financial ability requisite to reasonable assurance of satisfactory performance. In the case of sales other than cash sales, a bidder must be approved under the Previous Participation Review and Clearance procedures in 24 CFR 200.210 et seq. in order to qualify as responsible. The Previous Participation Review and Clearance procedures shall not be applicable to cash sales.

(b) Negotiated disposition. Disposition by negotiation with one or more selected purchasers, without resorting to competitive bidding, is permitted only in the following cases:

(1) Disposition to an agency of the Federal, state or local government.

(2) Sales to a nonprofit cooperative organization pursuant to a recommendation under § 290.30.

(3) Sales of individual condominium units and of individual homes pursuant to a program of conversion under § 290.30(b).

(4) Where disposition programs are pursuant to paragraphs (b)(2) and (3) of this section, the contracts for the legal and organizational work necessary for the conversion of the project to the new form of ownership, and the marketing costs of individual units or shares, shall be awarded by competitive bidding.

(c) Nursing homes and hospitals receiving Public Health Service Act grants. Whenever HUD acquires a nursing home or hospital which has received a grant under Title VI of the Public Health Service Act (42 U.S.C. 291 et seq.), the sale shall be limited to public or nonprofit entities which agree to operate the property as a health facility in accordance with the Public Health Service Act and the regulations adopted thereunder. If an acceptable bid is not received, requests shall then generally be made by HUD to the Secretary of Health, Education and Welfare to waive this condition pursuant to 42 U.S.C. 2911 and 42 CFR 53.135. If this waiver is issued, the property may then be offered a second time without the condition set forth in the first sentence of paragraph (c) of this section.

Subpart C-Projects Not Formerly Subsidized

$290.55 Applicability.

This subpart applies to all multifamily projects not formerly subsidized. § 290.60 Incorporation by reference.

The provisions of §§ 290.1, 290.5, 290.10, 290.25(a) and (b)(1), 290.30, 290.40(a), and 290.50 apply with full force and effect to multifamily projects described in § 290.55 and are hereby incorporated by reference.

The Government National Mortgage Association (hereafter in this chapter called the Association) purchases, services, and sells mortgages insured or guaranteed by the Federal Housing Administration (FHA) and the Veterans Administration (VA), furnishes fiduciary services to itself and other departments and agencies of the Government, and guarantees privately issued securities backed by trusts or pools of mortgages or loans which are insured or guaranteed by FHA and VA and certain loans insured by the Farmers Home Administration.

$ 300.5 Creation and status.

The Association is a Government corporation in the Department of Housing and Urban Development. The origin of the Association is in the creation on February 10, 1938, under title III of the National Housing Act, of the National Mortgage Association of Washington. On April 11, 1938, its name was changed to Federal National Mortgage Association. Effective November 1, 1954, it was rechartered by

the Congress as a mixed-ownership corporation. Effective September 1, 1968, it was partitioned by the Congress into two corporations, one of which is the Association. The operations of the Association are conducted under its statutory charter contained in title III of the National Housing Act, 12 U.S.C. 1716 et seq.

§ 300.7 Area of operations.

The Association is authorized to conduct its business in any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and the territories and possessions of the United States.

§ 300.9 Offices.

The Association directs its operations from its office located at 451 Seventh Street SW., Washington, D.C. 20414. It has made provisions for the carrying on of such operations through the Federal National Mortgage Association (FNMA). The regional offices of FNMA are listed below:

Atlanta, Ga. 30303, 34 Peachtree Street NE.: Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee.

Chicago, Ill. 60603, 1112 CommonwealthEdison Building, 72 West Adams Street: Illinois, Indiana, Iowa, Michigan, Minnesota, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin.

Dallas, Tex. 75201, 411 North Akard Street: Arkansas, Colorado, Kansas, Louisiana, Missouri, New Mexico, Oklahoma, Texas.

Los Angeles, Calif. 90005, 3540 Wilshire Boulevard: Alaska, Arizona, California, Guam, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington, Wyoming.

Philadelphia, Pa. 19103, 5 Penn Center Plaza: Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Puerto Rico, Rhode Island, Vermont, Virgin Islands, Virginia, and West Virginia.

§ 300.11 Power of attorney.

(a) The Association does hereby make, constitute, and appoint each of the persons named in paragraphs (c) and (d) of this section its true and

lawful attorney-in-fact, for the Association and in its name and stead:

(1) To purchase or contract to purchase any note, bond, or other evidence of indebtedness and any accompanying real estate mortgage, deed to trust, security deed, chattel mortgage, or collateral or security of whatsoever kind or nature, to modify or consent to the modification of any such contract, and to act or authorize action to enforce any such contract;

(2) To endorse, assign, sell, exchange, amend, modify, extend, release, cancel, or renew any note, bond, check, or other evidence of indebtedness now or hereafter held by the Association, and to release from liability any maker, obligor, or guarantor on any such note, bond, check, or other evidence of indebtedness;

(3) To satisfy, discharge, release, amend, assign, modify, extend, renew, subordinate, foreclose, or liquidate in any legal manner, in whole or in part, any chattel mortgage, real estate mortgage, deed of trust, security deed, or collateral or security of whatsoever kind or nature, securing any note, bond, check, or other evidence of indebtedness now or hereafter held by the Association, and to exercise any right or authority which the Association has or may have pursuant to the terms of any such security instrument or evidence of indebtedness, including any power of appointment contained therein;

(4) To assign, convey, sell, lease, or sublease and to contract for the assignment, conveyance, sale, lease, or sublease of any real estate, chattel, security, or property of any sort or nature, or any interest therein, now held or hereafter acquired by the Association;

(5) To discharge, satisfy, release, waive, enforce, compromise, subordinate, or assign, in whole or in part, any judgment now or hereafter entered in favor of, or assigned to, the Association;

(6) To assign, surrender, release, or modify, or consent to the assignment, surrender, release, or modification of, any policy of insurance, or any right arising therefrom, of which the Association now is or hereafter shall become

the assignee, beneficiary, or the insured, or in which the Association now has or hereafter may have any interest of any kind or nature; and to execute proof of loss, proof of death, statement of claimant, and any other instrument in connection with any such policy of insurance and any right arising therefrom;

(7) To execute, acknowledge, deliver, file for record, and record any such instrument, and to perform such other act or acts as may be necessary and proper to effectuate the foregoing; and

(8) To designate and appoint in behalf of the Association such other attorneys-in-fact for the Association as he may deem appropriate for the purpose of releasing or satisfying of record any specific mortgage, deed of trust, security deed, or other security instrument now or hereafter held by the Association.

(b) The Association does further grant unto each of such attorneys-infact, and any other attorney-in-fact designated and appointed pursuant to this section, full power and authority to do and perform all and every act and thing requisite, necessary, and proper to carry into effect the power or powers granted by or under this section as fully, to all intents and purposes, as the Association might or could do, and hereby does ratify and confirm all that each of such attorneys-in-fact, and any other attorneyin-fact designated and appointed pursuant to this section, shall lawfully do or cause to be done by virtue of the power or powers granted by or under this section.

(c) The persons appointed attorneysin-fact by paragraph (a) of this section