[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: 24CFR882.512]



[Page 84-85]

 

                 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 E_Special Procedures for Moderate Rehabilitation_Program 

                        Development and Operation

 

Sec.  882.512  Reduction of number of units covered by contract.



    (a) Limitation on leasing to ineligible Families. Owners must lease 

all assisted units under Contract to Eligible Families. Leasing of 

vacant, assisted units to ineligible tenants is a violation of the 

Contract and grounds for all available legal remedies, including 

suspension or debarment from HUD programs and reduction of the number of 

units under the Contract, as set forth in paragraph (b) of this section. 

Once the PHA has determined that a violation exists, the PHA must notify 

HUD of its determination and the suggested remedies. At the direction of 

HUD, the PHA must take the appropriate action.

    (b) Reduction for failure to lease to Eligible Families. If, at any 

time beginning six months after the effective date of the Contract, the 

Owner fails for a period of six continuous months to have at least 90 

percent of the assisted units leased or available for leasing by 

Eligible Families (because families initially eligible have become 

ineligible), the PHA may, on at least 30 days' notice, reduce the number 

of units covered by the Contract. The PHA may reduce the number of units 

to the number of units actually leased or available for leasing by 

Eligible Families plus 10 percent (rounded up). If the Owner has only 

one unit under Contract and if one year has



[[Page 85]]



elapsed since the date of the last housing assistance payment, the 

Contract may be terminated with the consent of the Owner.

    (c) Restoration. The PHA will agree to an amendment of the Contract, 

to provide for subsequent restoration of any reduction made pursuant to 

paragraph (b) if:

    (1) The PHA determines that the restoration is justified by demand,

    (2) The Owner otherwise has a record of compliance with obligations 

under the Contract, and

    (3) Contract authority is available.