24 C.F.R. § 891.805
§ 891.805 Definitions. (24 CFR Part 891)
Operative Text
In addition to the definitions at §§ 891.105, 891.205, and 891.305, the following definitions apply to this subpart: Mixed-finance owner, for the purpose of the mixed-finance development of housing under this part, means a single-asset, for-profit limited partnership of which a private nonprofit organization is the sole general partner. The purpose of the mixed-finance owner must include the promotion of the welfare of the elderly or persons with disabilities, as appropriate. Private nonprofit organization, for the purpose of this subpart, means: (1) In the case of supportive housing for the elderly: (i) An organization that meets the requirements of the definition of “private nonprofit organization” in § 891.205; and (ii) A for-profit limited partnership, the sole general partner of which owns at least one-hundredth of one percent of the partnership assets, whereby the sole general partner is either: an organization meeting the requirements of § 891.205 or a for-profit corporation wholly owned and controlled by one or more organizations meeting the requirements of § 891.205 or a limited liability company wholly owned and controlled by one or more organizations meeting the requirements of § 891.205. If the project will include units financed with the use of federal Low-Income Housing Tax Credits and the organization is a limited partnership, the requirements of section 42 of the IRS code, including the requirements of section 42(h)(5), apply. The general partner may also be the sponsor, so long as it meets the requirements of this part for sponsors and general partners. (2) In the case of supportive housing for persons with disabilities: (i) An organization that meets the requirements of the definition of “private nonprofit organization” in § 891.305; and (ii) A for-profit limited partnership, the sole general partner of which owns at least one-hundredth of one percent of the partnership assets, whereby the sole general partner is either: an organization meeting the requirements of § 891.305 or a corporation owned and controlled by an organization meeting the requirements of § 891.305. If the project will include units financed with the use of federal Low-Income Housing Tax Credits and the organization is a limited partnership, the requirements of section 42 of the IRS code, including the requirements of section 42(h)(5), apply. The general partner may also be the sponsor, so long as it meets the requirements of this part for sponsors and general partners.
Section 891.805 establishes the specific definitions that govern mixed-finance development of supportive housing for elderly persons and persons with disabilities under 24 CFR Part 891. A 'mixed-finance owner' must be a single-asset, for-profit limited partnership with a private nonprofit organization as its sole general partner, and that partnership's stated purpose must include promoting the welfare of the intended resident population. The definition of 'private nonprofit organization' is expanded here beyond §§ 891.205 and 891.305 to include certain for-profit limited partnerships structured with qualifying nonprofit general partners, and projects using federal Low-Income Housing Tax Credits must also satisfy the requirements of IRS Code section 42.
Plain English — not legal advice.
Operators and developers pursuing mixed-finance projects under 24 CFR Part 891 § 891.805 generally structure their ownership entities carefully to meet the dual requirements for both the general partner's nonprofit status and the partnership's stated welfare purpose. When Low-Income Housing Tax Credits are involved, compliant owners also ensure their organizational structure satisfies IRS Code section 42, including section 42(h)(5). Reviewing the cross-referenced definitions at §§ 891.205 and 891.305 is a standard part of confirming that a proposed ownership structure qualifies under this subpart.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For residents of supportive housing developed under the mixed-finance framework, § 891.805 establishes that the ownership structure behind their housing must meet specific nonprofit-purpose requirements tied to elderly or disability-focused welfare. If questions arise about whether a project's ownership legitimately qualifies under this subpart, tenant-rights organizations familiar with HUD-assisted housing can help residents understand the significance of these structural requirements. Residents may also raise concerns about ownership eligibility with HUD directly or through a housing counselor approved under HUD programs.
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.
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