[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: 24CFR886.308]



[Page 148]

 

                 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 C_Section 8 Housing Assistance Program for the Disposition of 

                           HUD-Owned Projects

 

Sec.  886.308  Maximum total annual contract commitment.



    (a) Number of units assisted. Based on the final disposition program 

developed in accordance with 24 CFR part 290, HUD shall determine the 

number of units to be assisted up to 100 percent of the units in the 

project.

    (b) Maximum assistance. The maximum total annual housing assistance 

payments that may be committed under the contract shall be the total of 

the gross rents for all the contract units in the project.

    (c) Changes in contract amounts. In order to assure that housing 

assistance payments will be increased on a timely basis to cover 

increases in contract rents, changes in family composition, or decreases 

in family incomes:

    (1) A project account shall be established and maintained, in an 

amount as determined by HUD consistent with 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 fiscal year. This 

account shall be established and maintained by HUD 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 HUD.

    (2) Whenever a HUD-approved estimate of required housing assistance 

payments for a fiscal year exceeds the maximum annual contract 

commitment, causing the amount in the project account to be less than an 

amount equal to 40 percent of the maximum annual contract commitment, 

HUD, within a reasonable period of time, shall 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 reservation of annual contributions authority for the purpose 

of amending housing assistance contracts or the allocation of a portion 

of new authorizations for the purpose of amending housing assistance 

contracts.''