[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: 24CFR886.109]



[Page 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.  886.109  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 HUD. 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.

    (b) No Section 8 assistance may be provided for any unit occupied by 

an Owner; cooperatives are considered rental housing.

    (c) 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, or 

applies security deposits for unpaid rent, in amounts 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.  

886.116.) The Owner shall not be entitled to any payment under this 

paragraph unless he:

    (1) Immediately upon learning of the vacancy, has notified HUD of 

the vacancy or prospective vacancy and the reasons for the vacancy, and

    (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), and advising them of the availability of the 

unit, and

    (3) Has not rejected any eligible applicant except for good cause.



[42 FR 5603, Jan. 28, 1977, as amended at 49 FR 19948, May 10, 1984]