[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: 24CFR883.604]



[Page 110]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

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

 

PART 883_SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM_STATE HOUSING 

AGENCIES--Table of Contents

 

             Subpart F_Housing Assistance Payments Contract

 

Sec.  883.604  Maximum annual commitment and project account.



    (a) Maximum annual commitment. The maximum annual contribution that 

may be contracted for in the ACC is the total of the contract rents and 

utility allowances for all assisted units in the project, plus the HUD-

approved fees, if any, for State Agency administration of the Contract. 

(See Sec.  883.606)

    (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 be established out of the amounts by 

which the maximum annual commitment exceeds the amount actually paid out 

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

housing assistance payments (and fees for Agency admininstration, if 

appropriate) when needed to cover increases in contract rents or 

decreases in tenant rents and for other costs specifically approved by 

the Secretary.

    (2) Whenever 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 1937 Act, as may 

be necessary, to assure that payments under the ACC will be adequate to 

cover increases in contract rents and decreases in tenant rents.



[45 FR 6889, Jan. 30, 1980, as amended at 61 FR 13593, Mar. 27, 1996]