[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: 24CFR884.106]



[Page 115-116]

 

                 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.  884.106  Housing assistance payments to owners.



    (a) General. Housing Assistance Payments shall be paid to Owners for 

units under lease by eligible families, in accordance with the Contract 

and as provided in this section. These Housing Assistance Payments will 

cover the difference between the Contract Rent and the Tenant Rent. 

Where applicable, the Utility Reimbursement will be paid to the Family 

as an additional Housing Assistance Payment. The Contract will provide 

that the Owner will make this payment on behalf of the contract 

administrator. Funds will be paid to the Owner in trust solely for the 

purpose of making this additional payment. If the Family and the utility 

company consent, the Owner may pay the utility reimbursement jointly to 

the Family and the utility company or directly to the utility company. 

No Section 8 assistance may be provided for any unit occupied by an 

Owner; however, cooperatives are considered rental housing, rather than 

Owner-occupied housing, for this purpose.

    (b) Vacancies during rent-up. If a Contract Unit is not leased as of 

the effective date of the Contract, the Owner shall be entitled to 

housing assistance payments in the amount of 80 percent of the Contract 

Rent for the unit for a vacancy period not exceeding 60 days from the 

effective date of the Contract, in accordance with the procedure set 

forth in Sec.  884.213(b): Provided, That the Owner: (1) Commenced 

marketing and otherwise complied with Sec.  884.211(e), (2) has taken 

and continues to take all feasible actions to fill the vacancy, 

including, but not limited to, contacting applicants on his waiting 

list, if any, requesting the PHA and other appropriate sources to refer 

eligible applicants, and advertising the availability of the unit, and 

(3) has not rejected any eligible applicant, except for good cause 

acceptable to HUD or the PHA, as the case may be.

    (c) Vacancies after rent-up. (1) If an Eligible Family vacates its 

unit (other than as a result of action by the Owner which is in 

violation of the Lease or the Contract or any applicable law), the Owner 

shall receive housing assistance payments in the amount of 80 percent of 

the Contract Rent for a vacancy period not exceeding 60 days; provided, 

however, That if the Owner collects any of the Family's share of the 

rent for this period in an amount which, when added to the 80 percent 

payments, results in more than the Contract Rent, such excess shall be 

payable to HUD or as HUD may direct. (See also Sec.  884.115). The Owner 

shall not be entitled to any payment under this paragraph (c)(1) unless 

he: (i) Immediately upon learning of the vacancy, has notified HUD or 

the PHA, as the case may be, of the vacancy or prospective vacancy and 

the reasons for the vacancy, and (ii) has taken and continues to take 

the actions specified in paragraphs (b) (2) and (3) of this section.

    (2) If the Owner evicts an Eligible Family, he shall not be entitled 

to any payment under paragraph (c)(1) of this section unless the request 

for such payment is supported by a certification that: (i) He gave such 

Family a written notice of the proposed eviction, stating the grounds 

and advising the Family that it had 10 days within which to present its 

objections to the Owner in writing or in person and (ii) the proposed 

eviction was not in violation of the Lease or the Contract or any 

applicable law.

    (d) Debt-service vacancy payments. (1) If a unit continues to be 

vacant after the 60-day period specified in paragraph (b) or (c) of this 

section, the owner may submit a claim to receive additional housing 

assistance payments on a semiannual basis with respect to the vacant 

unit in an amount equal to the principal and interest payments required 

to amortize the portion of the debt attributable to that unit for the 

period of the vacancy, whether the vacancy commenced during rent-up or 

after rent-up.



[[Page 116]]



    (2) Additional payments under this paragraph (d) for any unit shall 

not be for more than 12 months for any vacancy period, and shall be made 

only if:

    (i) The unit was in decent, safe and sanitary condition during the 

vacancy period for which payments are claimed.

    (ii) The Owner has taken and is continuing to take the actions 

specified in paragraphs (b) (1), (2) and (3) or paragraphs (c)(1) (i) 

and (ii) and (c)(2) of this section, as appropriate.

    (iii) The owner has demonstrated, in connection with the semiannual 

claim on a form and in accordance wih the standards prescribed by HUD 

with respect to the period of the vacancy, that the project is not 

providing the owner with revenues at least equal to the project costs 

incurred by the owner and that the amount of the payments requested is 

not in excess of the amount needed to make up the deficiency.

    (iv) The owner has submitted to HUD or the PHA, as appropriate, in 

connection with the semiannual claim, a statement with relevant 

supporting evidence that there is a reasonable prospect that the project 

can achieve financial soundness within a reasonable time. The statement 

shall indicate the causes of the deficiency; the corrective steps that 

have been and will be taken; and the time by which it is expected that 

the project revenues will at least equal project costs without the 

additional payments provided under this paragraph.

    (3) HUD or the PHA, as appropriate, may deny any claim for 

additional payments or suspend or terminate payments if it determines 

that, based on the owner's statement and other evidence, there is not a 

reasonable prospect that the project can achieve financial soundness 

within a reasonable time.

    (e) Prohibition of double compensation for vacancies. The Owner 

shall not be entitled to housing assistance payments with respect to 

vacant units under this section to the extent he is entitled to payments 

from other sources (for example, payments for losses of rental income 

incurred for holding units vacant for relocatees pursuant to Title I of 

the HCD Act or payments under Sec.  884.115).



[41 FR 47168, Oct. 27, 1976, as amended at 42 FR 12983, Mar. 7, 1977; 43 

FR 33880, Aug. 1, 1978. Redesignated at 45 FR 6909, Jan. 30, 1980; 49 FR 

19947, May 10, 1984]