[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: 24CFR884.109]



[Page 117]

 

                 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.  884.109  Rent adjustments.



    (a) Funding of adjustments. Housing assistance payments will be made 

in increased amounts commensurate with Contract Rent adjustments under 

this paragraph, up to the maximum amount authorized under the Contract. 

(See Sec. Sec.  884.104 and 884.105).

    (b) Automatic annual adjustments. (1) Automatic Annual Adjustment 

Factors will be determined by HUD at least annually; interim revisions 

may be made as market conditions warrant. Such Factors and the basis for 

their determination will be published in the Federal Register. These 

published Factors will be reduced appropriately by HUD where utilities 

are paid directly by Families.

    (2) On each anniversary date of the Contract, the Contract Rents 

shall be adjusted by applying the applicable Automatic Annual Adjustment 

Factor most recently published by HUD. Contract Rents may be adjusted 

upward or downward, as may be appropriate; however, in no case shall the 

adjusted rents be less than the Contract Rents on the effective date of 

the Contract.

    (c) Special additional adjustments. Special additional adjustments 

shall be granted, when approved by HUD, to reflect increases in the 

actual and necessary expenses of owning and maintaining the Contract 

Units which have resulted from substantial general increases in real 

property taxes, utility rates, or similar costs (i.e., assessments, and 

utilities not covered by regulated rates), but only if and to the extent 

that the Owner clearly demonstrates that such general increases have 

caused increases in the Owner's operating costs which are not adequately 

compensated for by automatic annual adjustments. The Owner shall submit 

to HUD financial statements which clearly support the increase.

    (d) Overall limitation. Notwithstanding any other provisions of this 

part, adjustments as provided in this section shall not result in 

material differences between the rents charged for assisted and 

comparable unassisted units, as determined by HUD: Provided, however, 

That this limitation shall not be construed to prohibit differences in 

rents between assisted and comparable unassisted units to the extent 

that such differences may have existed with respect to the initial 

Contract Rents.



[[Page 118]]