[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: 24CFR880.506]



[Page 54]

 

                 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.  880.506  Default by owner (private-owner/HUD and PHA-owner/HUD 

projects).



    The Contract will provide:

    (a) That if HUD determines that the owner is in default under the 

Contract, HUD will notify the owner and the lender of the actions 

required to be taken to cure the default and of the remedies to be 

applied by HUD including specific performance under the Contract, 

reduction or suspension of housing assistance payments and recovery of 

overpayments, where appropriate; and

    (b) That if the owner fails to cure the default, HUD has the right 

to terminate the Contract or to take other corrective action.