[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: 24CFR886.315]



[Page 152-153]

 

                 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.  886.315  Security and utility deposits.



    (a) Amount of deposits. If at the time of the initial execution of 

the Lease the Owner wishes to collect a security deposit, the maximum 

amount shall be the greater of one month's Gross Family Contribution or 

$50. However, this amount shall not exceed the maximum amount allowable 

under State or local law. For units leased in place, security deposits 

collected prior to the execution of a Contract which are in excess of 

this maximum amount do not have to be refunded until the Family is 

expected to pay security deposits and utility deposits from its 

resources and/or other public or private sources.



[[Page 153]]



    (b) When a Family vacates. If a Family vacates the unit, the Owner, 

subject to State and local law, may use the security deposit as 

reimbursement for any unpaid Family Contribution or other amount which 

the Family owes under the Lease. If a Family vacates the unit owing no 

rent or other amount under the Lease consistent with State or local law 

or if such amount is less than the amount of the security deposit, the 

Owner shall refund the full amount or the unused balance to the Family.

    (c) Interest payable on deposits. In those jurisdictions where 

interest is payable by the Owner on security deposits, the refunded 

amount shall include the amount of interest payable. The Owner shall 

comply with all State and local laws regarding interest payments on 

security deposits.

    (d) Insufficient deposits. If the security deposit is insufficient 

to reimburse the Owner for the unpaid Family Contribution or other 

amounts which the Family owes under the Lease, or if the Owner did not 

collect a security deposit, the Owner may claim reimbursement from HUD 

for an amount not to exceed the lesser of: (1) The amount owed the 

Owner, (2) two months' Contract Rent, minus, in either case, the greater 

of the security deposit actually collected or the amount of security 

deposit the owner could have collected under the program (pursuant to 

paragraph (a) of this section). Any reimbursement under this section 

must be applied first toward any unpaid Family Contribution due under 

the Lease and then to any other amounts owed. No reimbursement shall be 

claimed for unpaid rent for the period after the family vacates.