[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: 24CFR880.608]



[Page 62]

 

                 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 F_Management

 

Sec.  880.608  Security deposits.



    (a) At the time of the initial execution of the lease, the owner 

will require each family to pay a security deposit in an amount equal to 

one month's Total Tenant Payment or $50, whichever is greater. The 

family is expected to pay the security deposit from its own resources 

and/or other public sources. The owner may collect the security deposit 

on an installment basis.

    (b) The owner must place the security deposits in a segregated, 

interest-bearing account. The balance of this account must at all times 

be equal to the total amount collected from the families then in 

occupancy, plus any accrued interest. The owner must comply with any 

applicable State and local laws concerning interest payments on security 

deposits.

    (c) In order to be considered for the return of the security 

deposit, a family which vacates its unit will provide the owner with its 

forwarding address or arrange to pick up the refund.

    (d) The owner, subject to State and local law and the requirements 

of this paragraph, may use the security deposit, plus any accrued 

interest, as reimbursement for any unpaid family contribution or other 

amount which the family owes under the lease. Within 30 days (or shorter 

time if required by State, or local law) after receiving notification of 

the family's forwarding address, the owner must:

    (1) Refund to a family owing no rent or other amount under the lease 

the full amount of the security deposit, plus accrued interest;

    (2) Provide to a family owing rent or other amount under the lease a 

list itemizing any unpaid rent, damages to the unit, and estimated costs 

for repair, along with a statement of the family's rights under State 

and local law. If the amount which the owner claims is owed by the 

family is less than the amount of the security deposit, plus accrued 

interest, the owner must refund the unused balance to the family. If the 

owner fails to provide the list, the family will be entitled to the 

refund of the full amount of the security deposit plus accrued interest.

    (e) In the event a disagreement arises concerning reimbursement of 

the security deposit, the family will have the right to present 

objections to the owner in an informal meeting. The owner must keep a 

record of any disagreements and meetings in a tenant file for inspection 

by the contract administrator. The procedures of this paragraph do not 

preclude the family from exercising its rights under State and local 

law.

    (f) If the security deposit, including any accrued interest, is 

insufficient to reimburse the owner for any unpaid tenant rent or other 

amount which the family owes under the lease, and the owner has provided 

the family with the list required by paragraph (d)(2) of this section, 

the owner may claim reimbursement from the contract administrator, as 

appropriate, for an amount not to exceed the lesser of:

    (1) The amount owed the owner, or

    (2) One month's contract rent, minus the amount of the security 

deposit plus accrued interest. Any reimbursement under this section will 

be applied first toward any unpaid tenant rent due under the lease. No 

reimbursement may be claimed for unpaid rent for the period after 

termination of the tenancy.



[44 FR 59410, Oct. 15, 1979, as amended at 49 FR 19943, May 10, 1984; 61 

FR 13591, Mar. 27, 1996]