From HUD Financial Assistance Document: http://www.hhs.state.ne.us/fia/nhap/docs/HPRP_Eligible_Activities/FinancialAssistance.pdf
An assisted property may not be owned by the grantee, subgrantee, or the parent, subsidiary or affiliated organization of the subgrantee.
It appears that it is acceptable cross-regionally unless the requesting program has any connection as stated above. By that statement, it also appears acceptable within region as long as there is no connection as stated above.
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