[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: 24CFR886.311]



[Page 150]

 

                 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.  886.311  Term of contract.



    The contract term for any unit shall not exceed 15 years, except 

that the term may be less than 15 years as provided under either 

paragraph (a) or (b) of this section.

    (a) The contract term may be less than 15 years if HUD finds that, 

based on the rental charges and financing for the multifamily housing 

project to which the contract relates, the financial viability of the 

project can be maintained under a contract having a term less than 15 

years. Where a contract of less than 15 years is provided under this 

paragraph, the amount of rent payable by tenants of the project for 

units assisted under such a contract shall not exceed the amount payable 

for rent under section 3(a) of the United States Housing Act of 1937 for 

a period of at least 15 years.

    (b) The contract term may be less than 15 years if the assistance is 

provided under a contract authorized under section 6 of the HUD 

Demonstration Act of 1993, and pursuant to a disposition plan under this 

part for a project that is determined by the HUD to be otherwise in 

compliance with this part.



[60 FR 11859, Mar. 2, 1995]