[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: 24CFR983.152]

[Page 653]
 
                 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 D--Housing Assistance Payments Contract
 
Sec. 983.152  Reduction of number of units covered by HAP contract.

    (a) Limitation on leasing to ineligible families. Owners must lease 
all assisted units under HAP contract to eligible families. Leasing of 
vacant, assisted units to ineligible tenants is a violation of the HAP 
contract and grounds for all available legal remedies, including 
suspension or debarment from HUD programs and reduction of the number of 
units under the HAP contract, as set forth in paragraph (b) of this 
section. Once the HA has determined that a violation exists, the HA must 
notify the HUD field office of its determination and the suggested 
remedies. At the direction of the HUD field office, the HA must take the 
appropriate action.
    (b) Reduction for failure to lease to eligible families. If, at any 
time beginning 180 calendar days after the effective date of the HAP 
contract, the owner fails for a period of 180 continuous calendar days 
to have the assisted units leased to families receiving housing 
assistance or to families who were eligible when they initially leased 
the unit but are no longer receiving housing assistance, the HA may, on 
at least 30 calendar days notice, reduce the number of units covered by 
the HAP contract. The HA may reduce the number of units to the number of 
units actually leased or available for leasing by eligible families plus 
10 percent (rounded up). If the owner has only one unit under HAP 
contract and if one year has elapsed since the date of the last housing 
assistance payment, the HAP contract may be terminated with the consent 
of the owner.
    (c) Restoration. The HA will agree to an amendment of the HAP 
contract to provide for subsequent restoration of any reduction made 
pursuant to paragraph (b) of this section if:
    (1) The HA determines that the restoration is justified by demand,
    (2) The owner otherwise has a record of compliance with obligations 
under the HAP contract; and
    (3) Contract authority is available.