[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: 24CFR882.403]



[Page 76-77]

 

                 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 D_Special Procedures for Moderate Rehabilitation_Basic Policies

 

Sec.  882.403  ACC, housing assistance payments contract, and lease.



    (a) Maximum Total ACC Commitments. The maximum total annual 

contribution that may be contracted for is the total of the Moderate 

Rehabilitation Fair Market Rents for all the units. The fee for the 

costs of PHA administration is payable out of the annual contribution.

    (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 contain the sum of the amounts by 

which the maximum annual commitment exceeds the amount actually paid out 

for the project under the ACC each year. Payments will be made from this 

account when needed to cover increases in Contract Rents or decreases in 

Gross Family Contributions for (i) housing assistance (including 

vacancy) payments, (ii)



[[Page 77]]



the amount of the fee for PHA costs of administration, and (iii) other 

costs specifically approved by the Secretary.

    (2) When a HUD-approved estimate of required payments under the 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 ACC will 

be adequate to cover increases in Contract Rents and decreases in Gross 

Family Contributions.

    (c) Term of Housing Assistance Payments Contract. The Contract for 

any unit rehabilitated in accordance with the Program must be for a term 

of 15 years.

    (d) Term of Lease. (1) The initial lease between the family and the 

Owner must be for at least one year or the term of the HAP contract, 

whichever is shorter. In cases where there is less than one year 

remaining on the HAP contract, the owner and the PHA may mutually agree 

to terminate the unit from the HAP contract instead of leasing the unit 

to an eligible family.

    (2) Any renewal or extension of the lease term for any unit must in 

no case extend beyond the remaining term of the HAP contract.



[47 FR 34379, Aug. 9, 1982, as amended at 64 FR 53869, Oct. 4, 1999]