[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR983.255]

[Page 675-676]
 
                 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 F_Rent and Housing Assistance Payment
 
Sec. 983.255  Special adjustment of rent to owner.

    (a) HUD discretion. (1) At HUD's sole discretion, HUD may approve a 
special adjustment of the rent to owner. An HA may only make a special 
adjustment of the rent to owner if the adjustment has been approved by 
HUD.
    (2) The owner does not have any right to receive a special 
adjustment.
    (b) Purpose of special adjustment. A special adjustment may only be 
approved to reflect increases in the actual and necessary costs of 
owning and maintaining the contract units because of substantial and 
general increases in:
    (1) Real property taxes;
    (2) Special governmental assessments;
    (3) Utility rates; or
    (4) Costs of utilities not covered by regulated rates.
    (c) Limits on special adjustment. (1) A special adjustment may only 
be approved if and to the extent the owner demonstrates that cost 
increases are not adequately compensated by application of the published 
annual adjustment factor at the contract anniversary (see Sec. 
983.254). The owner must demonstrate that the rent to owner is not 
sufficient for proper operation of the housing.
    (2) The adjusted rent may not exceed the reasonable rent as 
determined by a comparability study in accordance with Sec. 983.256.
    (d) Financial information. The owner must submit financial 
information, as requested by the HA, that supports the grant or 
continuance of a special adjustment. For HAP contracts of more than 
twenty units, such financial information must be audited.
    (e) Term of special adjustment. (1) The HA may withdraw or limit the 
term of any special adjustment.

[[Page 676]]

    (2) If a special adjustment is approved to cover temporary or one-
time costs, the special adjustment is only a temporary or one-time 
increase of the rent to owner.

(Information collection requirements in this section have been approved 
by the Office of Management and Budget under control number 2577-0169.)