[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: 24CFR886.108]



[Page 134-135]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

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

 

PART 886_SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM_SPECIAL ALLOCATIONS

--Table of Contents

 

 Subpart A_Additional Assistance Program for Projects With HUD-Insured 

                         and HUD-Held Mortgages

 

Sec.  886.108  Maximum annual contract commitment.



    (a) Number of units assisted. Based on analysis of housing 

assistance needs of families residing or expected to reside in the 

project, HUD shall determine the number of units to be assisted up to 

100 percent of the units in the project. All units currently assisted 

under section 23 or section 8 shall be converted and included under the 

Contract pursuant to this subpart, unless the parties to the Lease or 

Contract object to such conversion. Units assisted under section 101 of 

the Housing and Urban Development Act of 1965 or under section 236(f)(2) 

of the National Housing Act shall not be included under the Contract 

pursuant to this subpart unless the Owner proposes and HUD approves such 

conversion.

    (b) Maximum annual Contract commitment. The maximum annual housing 

assistance payments that may be committed under the Contract shall be 

that amount which, when paid annually over the term of the Contract, is 

determined by HUD to be sufficient to provide for all housing assistance 

payments and fees under the Contract.

    (c) 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



[[Page 135]]



maintained by HUD for each project 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 allocation of a portion of new authorizations 

for the purpose of amending housing assistance contracts.''