[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR880.503]



[Page 52]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

  CHAPTER VIII--OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING-FEDERAL 

 

PART 880_SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR NEW 

CONSTRUCTION--Table of Contents

 

             Subpart E_Housing Assistance Payments Contract

 

Sec.  880.503  Maximum annual commitment and project account.



    (a) Maximum Annual Commitment. Where HUD is the contract 

administrator, the maximum annual amount that may be committed under the 

Contract is the total of the contract rents and utility allowances for 

all assisted units in the project. Where the PHA is the contract 

administrator, the maximum annual contribution that may be contracted 

for in the ACC is the total of the contract rents and utility allowances 

for all assisted units plus an administrative fee for the PHA as 

approved by HUD.

    (b) Project Account. (1) A project account will be established and 

maintained by HUD as a specifically identified and segregated account 

for each project. The account will be established out of the amounts by 

which the maximum annual commitment exceeds the amount actually paid out 

under the Contract or ACC each year. Payments will be made from this 

account for housing assistance payments (and fees for PHA 

administration, if appropriate) when needed to cover increases in 

contract rents or decreases in tenant rents and for other cost 

specifically approved by the Secretary.

    (2) Whenever a HUD-approved estimate of required annual payments 

under the Contract or ACC for a fiscal year exceeds the maximum annual 

commitment and would cause the amount in the project account to be less 

than 40 percent of the maximum, HUD will, within a reasonable period of 

time, take such additional steps authorized by Section 8(c)(6) of the 

U.S. Housing Act of 1937, as may be necessary, to assure that payments 

under the Contract or ACC will be adequate to cover increases in 

Contract rents and decreases in tenant rents.



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