[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: 24CFR886.320]



[Page 154]

 

                 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.  886.320  Default under the contract.



    The contract shall contain a provision to the effect that if HUD 

determines that the owner is in default under the contract, HUD shall 

notify the owner of the actions required to be taken to cure the default 

and of the remedies to be applied by HUD including recovery of 

overpayments, where appropriate, and that if the owner fails to cure the 

default within a reasonable time as determined by HUD, HUD has the right 

to terminate the contract or to take other corrective action, including 

recission of the sale. When contract termination is under consideration 

by HUD, HUD shall give eligible families an opportunity to submit 

written and other comments. Where the project is sold under the 

arrangement that involves a regulatory agreement between HUD and the 

owner, a default under the regulatory agreement shall be treated as 

default under the contract.