[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: 24CFR886.116]



[Page 138]

 

                 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.  886.116  Security and utility deposits.



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

amount up to, but not more than, 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, 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 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.