24 C.F.R. § 905.700 Other security interests.
(a) The PHA may not pledge, mortgage, enter into a transaction that provides recourse to public housing assets, or otherwise grant a security interest in any public housing project, portion thereof, or other property of the PHA without the written approval of HUD.
(b) The PHA shall submit the request in the form and manner prescribed by HUD.
(c) HUD shall consider:
(1) The ability of the PHA to complete the financing, the improvements, and repay the financing;
(2) The reasonableness of the provisions in the proposal; or
(3) Any other factors HUD deems appropriate.