24 Cfr 880

[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2004]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR880.101]

[Page 46-47]

TITLE 24--HOUSING AND URBAN DEVELOPMENT

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

PART 880_SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR NEW

CONSTRUCTION--Table of Contents

Subpart A - Summary and Applicability

Sec. 880.101 General.

Subpart A - Summary and Applicability

Sec.

880.101 General.

880.104 Applicability of part 880.

880.105 Applicability to proposals and projects under 24 CFR part 811.

Subpart B -Definitions and Other Requirements

880.201 Definitions.

880.205 Limitation on distributions.

880.207 Property standards.

880.208 Financing.

880.211 Audit.

Subparts C-D [Reserved]

Subpart E -Housing Assistance Payments Contract

880.501 The contract.

880.502 Term of contract.

880.503 Maximum annual commitment and project account.

880.504 Leasing to eligible families.

880.505 Contract administration and conversions.

880.506 Default by owner (private-owner/HUD and PHA-owner/HUD projects).

880.507 Default by PHA and/or owner (private-owner/PHA projects).

880.508 Notice upon contract expiration.

Subpart F -Management

880.601 Responsibilities of owner.

880.602 Replacement reserve.

880.603 Selection and admission of assisted tenants.

880.604 Tenant rent.

880.605 Overcrowded and underoccupied units.

880.606 Lease requirements.

880.607 Termination of tenancy and modification of lease.

880.608 Security deposits.

880.609 Adjustment of contract rents.

880.610 Adjustment of utility allowances.

880.611 Conditions for receipt of vacancy payments.

880.612 Reviews during management period.

880.612a Preference for occupancy by elderly families.

Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), 12701, and 13611-

13619.

[[Page 47]]

Source: 44 FR 59410, Oct. 15, 1979, unless otherwise noted.

(a) The purpose of the Section 8 program is to provide low-income

families with decent, safe and sanitary rental housing through the use

of a system of housing assistance payments. This part contains the

policies and procedures applicable to the Section 8 new construction

program. The assistance may be provided to public housing agency owners

or to private owners either directly from HUD or through public housing

agencies.

(b) This part does not apply to projects developed under other

Section 8 program regulations, including 24 CFR parts 881, 882, 883,

884, and 885, except to the extent specifically stated in those parts.

Portions of subparts E and F of this part 880 have been cross-referenced

in 24 CFR parts 881 and 883.

[61 FR 13587, Mar. 27, 1996]

[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2004]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR880.601]

[Page 55-56]

TITLE 24--HOUSING AND URBAN DEVELOPMENT

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

PART 880_SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR NEW

CONSTRUCTION--Table of Contents

Subpart F -Management

Sec. 880.601 Responsibilities of owner.

(a) Marketing. (1) The owner must commence diligent marketing

activities in accordance with the Agreement not later than 90 days prior

to the anticipated date of availability for occupancy of the first unit

of the project.

(2) Marketing must be done in accordance with the HUD-approved

Affirmative Fair Housing Marketing Plan and all Fair Housing and Equal

Opportunity requirements. The purpose of the Plan and requirements is to

assure that eligible families of similar income in the same housing

market area have an equal opportunity to apply and be selected for a

unit in projects assisted under this part regardless of their race,

color, creed, religion, sex or national origin.

(3) With respect to non-elderly family units, the owner must

undertake marketing activities in advance of marketing to other

prospective tenants in order to provide opportunities to reside in the

project to non-elderly families who are least likely to apply, as

determined in the Affirmative Fair Housing Marketing Plan, and to non-

[[Page 56]]

elderly families expected to reside in the community by reason of

current or planned employment.

(4) At the time of Contract execution, the owner must submit a list

of leased and unleased units, with justification for the unleased units,

in order to qualify for vacancy payments for the unleased units.

(b) Management and maintenance. The owner is responsible for all

management functions, including determining eligibility of applicants,

selection of tenants, reexamination and verification of family income

and composition, determination of family rent (total tenant payment,

tenant rent and utility reimbursement), collection of rent, termination

of tenancy and eviction, and performance of all repair and maintenance

functions (including ordinary and extraordinary maintenance), and

replacement of capital items. (See part 5 of this title.) All functions

must be performed in accordance with applicable equal opportunity

requirements.

(c) Contracting for services. (1) For this part 880 and 24 CFR part

881 projects, with HUD approval, the owner may contract with a private

or public entity (except the contract administrator) for performance of

the services or duties required in paragraphs (a) and (b) of this

section.

(2) For 24 CFR part 883 projects, with approval of the Agency, the

owner may contract with a private or public entity (but not with the

Agency unless temporarily necessary for the Agency to protect its

financial interest and to uphold its program responsibilities where no

alternative management agent is immediately available) for performance

of the services or duties required in paragraphs (a) and (b) of this

section.

(3) However, such an arrangement does not relieve the owner of

responsibility for these services and duties.

(d) Submission of financial and operating statements. After

execution of the Contract, the owner must submit to the contract

adminstrator:

(1) Financial information in accordance with 24 CFR part 5, subpart

H; and

(2) Other statements as to project operation, financial conditions

and occupancy as HUD may require pertinent to administration of the

Contract and monitoring of project operations.

(e) Use of project funds. (1) Project funds must be used for the

benefit of the project, to make required deposits to the replacement

reserve in accordance with Sec. 880.602 and to provide distributions to

the owner as provided in Sec. 880.205, Sec. 881.205 of this chapter,

or Sec. 883.306 of this chapter, as appropriate.

(2) For this part 880 and 24 CFR part 881 projects:

(i) Any remaining project funds must be deposited with the mortgagee

or other HUD-approved depository in an interest-bearing residual

receipts account. Withdrawals from this account will be made only for

project purposes and with the approval of HUD.

(ii) Partially-assisted projects are exempt from the provisions of

this section.

(iii) In the case of HUD-insured projects, the provisions of this

paragraph (e) will apply instead of the otherwise applicable mortgage

insurance provisions.

(3) For 24 CFR part 883 projects:

(i) Any remaining project funds must be deposited with the Agency,

other mortgagee or other Agency-approved depository in an interest-

bearing account. Withdrawals from this account may be made only for

project purposes and with the approval of the Agency.

(ii) In the case of HUD-insured projects, the provisions of this

paragraph will apply instead of the otherwise applicable mortgage

insurance provisions, except in the case of partially-assisted projects

which are subject to the applicable mortgage insurance provisions.

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

2502-0204)

[44 FR 59410, Oct 15, 1979, as amended at 45 FR 18924, Mar. 24, 1980; 51

FR 11224, Apr. 1, 1986; 53 FR 846, Jan. 13, 1988; 53 FR 1145, Jan. 15,

1988; 53 FR 6601, Mar. 2, 1988; 54 FR 39702, Sept. 27, 1989; 56 FR 7536,

Feb. 22, 1991; 60 FR 14841, Mar. 20, 1995; 61 FR 13588, Mar. 27, 1996;

63 FR 46593, Sept. 1, 1998; 65 FR 16722, Mar. 29, 2000]