[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR983.101]

[Page 650]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 983--SECTION 8 PROJECT-BASED CERTIFICATE PROGRAM--Table of Contents
 
   Subpart C--Agreement and New Construction or Rehabilitation Period
 
Sec. 983.101  Agreement to enter into HAP contract, and contract rents in Agreement.


    (a) Agreement. The HA must enter into an Agreement with the owner in 
the form prescribed by HUD for assistance provided under this part 983. 
The Agreement must be executed before the start of any new construction 
or rehabilitation. Under the Agreement, the owner agrees to construct 
the units in accordance with the HA-approved working drawings and 
specifications or to rehabilitate the units in accordance with the HA-
approved work write-ups.
    (b) Contract rents in Agreement. The Agreement must list the initial 
contract rents that will apply to the units after they are constructed 
or rehabilitated. The amounts of the contract rents that are listed in 
the Agreement or, if applicable, as lowered under Sec. 983.103(c), must 
be the initial contract rents upon execution of the HAP contract. These 
initial contract rents may only be increased if:
    (1) The project is financed with a HUD insured or coinsured 
multifamily mortgage;
    (2) The initial contract rents listed in the Agreement were based on 
the amount determined by HUD to be necessary to amortize the insured or 
coinsured mortgage; and
    (3) The HUD field office approves a cost increase prior to closing. 
In such a case, the HUD field office may redetermine the initial 
contract rents in accordance with Sec. 983.202 except that the field 
office may use the comparable rents originally used in processing the 
insured or coinsured mortgage in lieu of the amount determined in 
accordance with Sec. 983.202.

[60 FR 34717, July 3, 1995, as amended at 63 FR 23871, Apr. 30, 1998]