[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: 24CFR886.110]



[Page 135-136]

 

                 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.  886.110  Contract rents.



    (a) The sum of the Contract Rents plus an Allowance for Utilities 

and Other Services shall not exceed the published Section 8 Fair Market 

Rents for Existing Housing, except that they may be exceeded by:

    (1) Up to 10 percent if the Field Office Director determines that 

special circumstances warrant such higher rents, or

    (2) By up to 20 percent where the Regional Administrator determines 

that special circumstances warrant such higher rents, and in either 

case, such higher rents meet the test of reasonableness in paragraph (c) 

of this section.

    (b) In the case of any project completed not more than six years 

prior to the application for assistance under that part, or in the case 

of units converted to Section 8 which were previously assisted under 

Section 101 of the Housing and Urban Development Act of 1965 or Section 

236(f)(2) of the National Housing Act, contract rents plus any allowance 

for utilities and other services may be as high as 75 percent of the 

published Section 8 Fair Market Rents for New Construction, which 

limitation may be increased: (1) By up to 10 percent if the Field Office



[[Page 136]]



Director determines that special circumstances warrant such higher 

rents, or (2) by up to 20 percent where the Regional Administrator 

determines that special circumstances warrant such higher rents, and in 

either case, such higher rents meet the test of reasonableness contained 

in paragraph (c) of this section. The project shall be converted using 

the current HUD approved rent level established pursuant to 24 CFR 

207.19(e)(2)(i).

    (c) In any case, HUD shall determine and so certify that the 

Contract Rents for the project do not exceed rents which are reasonable 

for the location, quality, amenities, facilities, and management and 

maintenance services in relation to the rents paid for comparable units 

in the private unassisted market, nor shall the Contract Rents exceed 

the rents charged by the Owner to unassisted Families for comparable 

units. HUD shall maintain for three years all certifications and 

relevant documentation under this paragraph (c).



[42 FR 5603, Jan. 28, 1977, as amended at 48 FR 36103, Aug. 9, 1983; 48 

FR 56949, Dec. 27, 1983]