[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: 24CFR882.123]



[Page 75-76]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

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

 

PART 882_SECTION 8 MODERATE REHABILITATION PROGRAMS--Table of Contents

 

            Subpart A_Applicability, Scope and Basic Policies

 

Sec.  882.123  Conversion of Section 23 Units to Section 8 and Section 23 

monitoring.



    (a)-(d) [Reserved]

    (e) Section 23 policies for units planned for conversion on or 

before September 30, 1981. (1) PHAs shall not enter into new leases with 

owners for additional units nor shall they renew or extend leases with 

owners except consistent with the conversion schedules.

    (2) Subject to the rights of families under existing leases, PHAs 

may continue to lease units to families under Section 23 only on a 

month-to-month basis.

    (3) PHAs shall conduct annual inspections of all units to determine 

whether the units are decent, safe and sanitary.

    (4) PHAs shall certify with their requisitions to HUD for payments 

under the ACC that the units are decent, safe and sanitary, or the PHA 

shall furnish HUD with a report of the nature of the deficiencies of the 

units which are not so certified. If an owner's units are not decent, 

safe and sanitary.

    (i) Where the owner is responsible under the terms of the lease for 

correcting the deficiencies, the PHA shall send the owner written 

notification requiring the owner to take specified corrective action 

within a specified time. The notification shall also state that, if the 

owner fails to comply, rent payments will be suspended. If the owner 

fails to comply with the first notification, he shall be notified by the 

PHA of the noncompliance and rent payments shall be suspended 

immediately. In the event of such suspension of rent payments, the PHA 

shall requisition a correspondingly lower ACC payment.

    (ii) Where the PHA is responsible under the terms of the lease for 

correcting the deficiencies, the Field Office shall send written 

notification requiring the PHA to take specified corrective action 

within a specified time. The notification shall also state that, if the 

PHA fails to comply, HUD will make reduced payments to the PHA only in 

the amount of the rent due the owner. If the PHA fails to comply with 

the first notification, the PHA shall be notified of the noncompliance, 

and the PHA shall not receive any fees for performing management 

functions until the PHA has complied with the Field Office request and 

has corrected the noted deficiencies.

    (f) [Reserved]

    (g) Section 23 policies for units not planned to be converted. (1) 

PHAs shall not enter into new leases with owners for additional units 

nor shall they renew or extend leases with owners for more than one 

year.

    (2) The provisions contained in paragraphs (e) (3) and (4) of this 

section shall apply.

    (h) Request for rent increases. An owner may submit to the PHA a 

request for rent increase because of increases in operating cost, when 

the rents to the owner, after adjustments based on provisions in the 

lease, are insufficient to provide decent, safe and sanitary housing. 

Such a request shall be supported by an audited financial statement, and 

the data shall clearly show that failure to obtain additional revenue 

will result in deterioriation of units and loss of decent, safe and 

sanitary housing for low-income families. The PHA shall inspect the 

units to determine whether the units are decent, safe and sanitary. 

Where the need for an adjustment under this paragraph is shown:

    (1) Subject to available contract authority and prior approval by 

the HUD Field Office, the PHA may grant an adjustment to the extent 

documented and



[[Page 76]]



justified for those items of expenses (excluding debt service) for which 

the owner is responsible under the lease.

    (2) The amount of the adjustment must be reasonable when compared 

with similar items under the Section 8 Existing Housing program.

    (3) The adjusted amount for expenses shall not exceed the result of 

applying the appropriate Section 8 Existing Housing Annual Adjustment 

Factor (24 CFR part 888) most recently published by HUD in the Federal 

Register to the appropriate expense base in effect under the lease prior 

to this adjustment.

    (4) The adjustment shall not be retroactive to pay for costs that 

the owner had previously incurred.

    (5) The adjustment shall be effective for a period not to exceed one 

year.



[44 FR 28276, Nov. 14, 1979, as amended at 60 FR 34694, July 3, 1995]