[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: 24CFR888.315]



[Page 173]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

  CHAPTER VIII--OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING-FEDERAL 

 

PART 888_SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM_FAIR MARKET 

RENTS AND CONTRACT RENT ANNUAL ADJUSTMENT FACTORS--Table of Contents

 

Subpart C_Retroactive Housing Assistance Payments for New Construction, 

 

Sec.  888.315  Restrictions on retroactive payments.



    (a) Restrictions on distribution of surplus cash. Retroactive 

payments for HUD-insured projects and other projects subject to 

limitations on the distribution of surplus cash will be deposited, in 

the manner of Housing Assistance Payments, into the appropriate project 

account. The payments will be subject to HUD rules and procedures (or 

rules and procedures of other agencies, as appropriate), described in 

the applicable regulations and the HAP contracts, for distribution of 

surplus cash to project owners.

    (b) Replacement reserve. Projects required by HUD regulations to 

maintain a reserve for replacement account and to adjust the annual 

payment to the account each year by the amount of the annual rent 

adjustment must deposit into the account the proportionate share of any 

retroactive payment received, in accordance with HUD regulations and the 

HAP contract.

    (c) Physical condition of HUD-insured or State-financed projects. If 

the most recent physical inspection report of a HUD-insured project, 

completed by the mortgagee, or by HUD or the Contract Administrator if a 

mortgagee inspection is not present, shows significant deficiencies that 

have not been addressed to the satisfaction of HUD by the date the 

retroactive payment is deposited into the project account, the payment 

will not be made available for surplus cash distribution until the 

deficiencies are resolved or a plan for their resolution has been 

approved by HUD.