[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: 24CFR884.104]



[Page 114]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

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

 

PART 884_SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM, NEW CONSTRUCTION 

SET-ASIDE FOR SECTION 515 RURAL RENTAL HOUSING PROJECTS--Table of Contents

 

            Subpart A_Applicability, Scope and Basic Policies

 

Sec.  884.104  Maximum total annual contract commitment and project 

account (private-owner or PHA-owner projects).



    (a) Maximum total annual contract commitment. The maximum total 

annual housing assistance payments that may be committed under the 

Contract shall be the total of the Gross Rents for all the Contract 

units in the project.

    (b) Project account. In order to assure that housing assistance 

payments will be increased on a timely basis to cover increases in 

Contract Rents or decreases in Family Incomes:

    (1) A Project Account shall be established and maintained in an 

amount as determined by the Secretary consistent with his 

responsibilities under Section 8(c)(6) of the Act, out of amounts by 

which the maximum annual Contract commitment per year exceeds amounts 

paid under the Contract for any year. This account shall be established 

and maintained by HUD as a specifically identified and segregated 

account, and payment shall be made therefrom only for the purposes of 

(i) housing assistance payments, and (ii) other costs specifically 

authorized or approved by the Secretary.

    (2) Whenever a HUD-approved estimate of required housing assistance 

payments for a fiscal year exceeds the maximum annual Contract 

commitment, and would cause the amount in the Project Account to be less 

than an amount equal to 40 percent of such maximum annual Contract 

commitment, HUD shall, within a reasonable period of time, take such 

additional steps authorized by Section 8(c)(6) of the Act as may be 

necessary to carry out this assurance, including (as provided in that 

section of the Act) ``the reservation of annual contributions authority 

for the purpose of amending housing assistance contracts or the 

allocation of a portion of new authorizations for the purpose of 

amending housing assistance contracts.''