[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: 24CFR884.120]



[Page 120]

 

                 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.  884.120  Responsibility for contract administration and defaults 

(private-owner/PHA projects).



    (a) Contract administration. The PHA is primarily responsible for 

administration of the Contract, subject to review and audit by HUD.

    (b) Defaults by PHA and/or owner. (1) The ACC and the Contract shall 

contain a provision to the effect that in the event of failure of the 

PHA to comply with the Contract with the Owner, the Owner shall have the 

right, if he is not in default, to demand that HUD determine, after 

notice to the PHA giving it a reasonable opportunity to take corrective 

action, whether a substantial default exists, and if HUD determines that 

such a default exists, that HUD assure that the obligations of the PHA 

to the Owner are carried out.

    (2) The ACC shall contain a provision to the effect that if the PHA 

fails to comply with any of its obligations (including specifically 

failure to enforce its rights under the Contract, in the event of any 

default by the Owner, to achieve compliance to the satisfaction of HUD 

or to terminate the Contract in whole or in part, as directed by HUD), 

HUD may, after notice to the PHA giving it a reasonable opportunity to 

take corrective action, determine that there is a substantial default 

and require the PHA to assign to HUD all of the PHA's rights and 

interests under the Contract. In such case, HUD will continue to pay 

annual contributions in accordance with the terms of the ACC and the 

Contract.

    (3) The Contract shall contain a provision to the effect (i) that if 

the PHA determines that the Owner is in default under the Contract, the 

PHA shall notify the Owner, with a copy to HUD and RHCDS, of the actions 

required to be taken to cure the default and of the remedies to be 

applied by the PHA including abatement of housing assistance payments 

and recovery of overpayments, where appropriate; and (ii) that if he 

fails to cure the default, the PHA has the right to terminate the 

Contract or to take other corrective action, in its discretion or as 

directed by HUD.



[41 FR 47168, Oct. 27, 1976, as amended at 61 FR 13593, Mar. 27, 1996]



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