[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: 24CFR884.115]



[Page 118-119]

 

                 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.  884.115  Security and utility deposits.



    (a) An Owner may require Families to pay a security deposit in an 

amount equal to one month's Gross Family Contribution. If a Family 

vacates its unit, the Owner, subject to State and local laws, may 

utilize the deposit as reimbursement for any unpaid rent or other amount 

owed under the Lease. If the Family has provided a security deposit, and 

it is insufficient for such reimbursement, the Owner may claim 

reimbursement from HUD or the PHA, as appropriate, not to exceed an 

amount equal to the remainder of one month's Contract Rent. Any 

reimbursement under this section shall be applied first toward any 

unpaid rent. If a Family vacates the unit owing no rent or other amount 

under the Lease or if such



[[Page 119]]



amount is less than the amount of the security deposit, the Owner shall 

refund the full amount or the unused balance, as the case may be, to the 

Family.

    (b) In those jurisdictions where interest is payable by the Owner on 

security deposits, the refunded amount shall include the amount of 

interest payable. All security deposit funds shall be deposited by the 

Owner in a segregated bank account, and the balance of this account, at 

all times, shall be equal to the total amount collected from tenants 

then in occupancy, plus any accrued interest. The Owner shall comply 

with all State and local laws regarding interest payments on security 

deposits.

    (c) Families shall be expected to obtain the funds to pay security 

and utility deposits, if required, from their own resources and/or other 

private or public sources.