[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: 24CFR888.405]



[Page 174-175]

 

                 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 D_Retroactive Housing Assistance Payments for Moderate 

                         Rehabilitation Projects

 

Sec.  888.405  Amount of the retroactive Housing Assistance Payments.



    (a) Recalculating the total rent adjustment. To establish the amount 

of the retroactive HAP payment for which a project owner meeting the 

criteria in Sec.  888.401(c) is eligible, the total rent adjustment will 

be recalculated for the period from October 1, 1979 to May 31, 1991. 

Rents for that period will be recalculated, under the procedures set out 

in 24 CFR 882.410(a)(1), by applying the AAF for any affected year, and 

recalculating the rents for the remainder of the period as necessary. 

For each year thereafter, all rent adjustments made at the request of 

the owner at the time will be recalculated, under the procedures in 24 

CFR 882.410(a)(1), to account for the new adjustments.

    (b) Calculating the retroactive payment. HUD will pay, through the 

PHA, as a retroactive Housing Assistance Payment the amount, if any, by 

which the total rent adjustment, calculated under paragraph (a) of this 

section exceeds the rent adjustments actually approved for the same time 

period.

    (c) Occupancy rate. (1) Retroactive payments will be made only for 

units that were occupied, based on average occupancy rate, including 

units qualifying for vacancy payments under 24 CFR 882.411, during the 

time period from October 1, 1979 to May 31, 1991.

    (2) When requesting a retroactive payment, a project owner must, if 

the



[[Page 175]]



information is available, submit documentation of occupancy rates, on 

either an annual or monthly basis, for the same time period. The average 

occupancy rate will be based on these records. If records are 

unavailable for the full time period, the PHA will establish an average 

occupancy rate, to be used for the entire period, from the occupancy 

rate for the three years immediately preceding May 31, 1991.

    (d) Revised AAFs. For any year during the period from October 1, 

1979 to May 31, 1991, where a HUD field office published a revised 

Annual Adjustment Factor that replaced the applicable AAF for a specific 

locality under 24 CFR 888.204, the revised Annual Adjustment Factor, 

which applied to all projects in that area, will be used to recalculate 

the total rent adjustment under paragraph (a) of this section, and to 

establish the amount of the retroactive payments.

    (e) Special adjustments. When calculating the total rent adjustments 

and establishing the amount of the retroactive payments under paragraphs 

(a) and (b) of this section, any special adjustments granted under 24 

CFR 882.410(a)(2) during the period from October 1, 1979 to May 31, 

1991, to reflect substantial general increases in real property taxes, 

assessments, utility rates, utilities not covered by regulated rates, or 

for special adjustments for any other purpose authorized by a waiver of 

the regulations, will be deducted from the base rent before applying the 

AAF.

    (f) AAFs less than 1.0. For any area where an AAF of less than 1.0 

was published, a factor of 1.0 will be used to recalculate the total 

rent adjustments and to establish the amount of the retroactive payments 

under paragraphs (a) and (b) of this section.



(Approved by the Office of Management and Budget under control number 

2502-0042)