Laws and Regulations

[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
880.205
880.207
880.208
880.211

Definitions.
Limitation on distributions.
Property standards.
Financing.
Audit.

Subparts C-D [Reserved]
Subpart E -Housing Assistance Payments Contract
880.501
880.502
880.503
880.504
880.505
880.506
880.507
880.508

The contract.
Term of contract.
Maximum annual commitment and project account.
Leasing to eligible families.
Contract administration and conversions.
Default by owner (private-owner/HUD and PHA-owner/HUD projects).
Default by PHA and/or owner (private-owner/PHA projects).
Notice upon contract expiration.
Subpart F -Management

880.601
880.602
880.603
880.604

Responsibilities of owner.
Replacement reserve.
Selection and admission of assisted tenants.
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 1361113619.
[[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 interestbearing 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]

[Code of Federal Regulations]
[Title 24, Volume 2]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR200.105]
[Page 23]
TITLE 24--HOUSING AND URBAN DEVELOPMENT
CHAPTER II--OFFICE OF ASSISTANT SECRETARY FOR HOUSING--FEDERAL HOUSING
COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
PART 200--INTRODUCTION TO FHA PROGRAMS--Table of Contents
Subpart A--Requirements for Application, Commitment, and Endorsement
Generally Applicable to Multifamily and Health Care Facility Mortgage
Insurance Programs; and Continuing Eligibility Requirements for Existing
Projects
Sec. 200.105

Mortgagor supervision.

(a) As long as the Commissioner is the insurer or holder of the
mortgage, the Commissioner shall regulate the mortgagor by means of a
regulatory agreement providing terms, conditions and standards
established by the Commissioner, or by such other means as the
Commissioner may prescribe.
(b) The Commissioner may delegate to the mortgagee or other party
the Commissioner's authority, in whole or in part, in accordance with
the terms, conditions and standards established by the Commissioner in
any executed Regulatory Agreement or other instrument granting the
Commissioner supervision of the mortgagor.
[61 FR 14399, Apr. 1, 1996, as amended at 65 FR 61074, Oct. 13, 2000]

§ 200.105 Mortgagor supervision.
(a) As long as the Commissioner is the insurer or holder of the mortgage, the
Commissioner shall regulate the mortgagor by means of a regulatory agreement
providing terms, conditions and standards established by the Commissioner, or by such
other means as the Commissioner may prescribe.
(b) The Commissioner may delegate to the mortgagee or other party the
Commissioner's authority, in whole or in part, in accordance with the terms, conditions
and standards established by the Commissioner in any executed Regulatory Agreement
or other instrument granting the Commissioner supervision of the mortgagor.
[61 FR 14399, Apr. 1, 1996, as amended at 65 FR 61074, Oct. 13, 2000]

2.9 OWNER/MANAGEMENT ENTITY APPROVAL SUBMISSION REQUIREMENTS
To request approval of the management entity, the owner/agent must submit the following
information to the HUD Area Office at least 60 days before the date the owner wishes the new
agent to assume responsibility. In the case of emergency replacements of management agents
(see paragraph 2.7) the owner/agent must submit the information needed for HUD to review and
approve the new management agent as soon as the new agent is identified.
a.Previous Participation Certification. Form HUD-2530 (see Appendix 1) reports the names of
all principals and affiliates of the management agent and any previous housing projects in which
they have participated. It further certifies that they currently are eligible to participate in the
management of the HUD-insured, financed or assisted multifamily project.
b.Management Entity Profile. Form HUD-9832 (see Appendix 2) provides HUD with
information on the management entity's organization and procedures, including treatment of
identity-of-interest relationships. It also shows the types of projects the agent has managed and
what skills or professional certificates the agent's staff hold. It does not provide information on
how the agent has operated individual projects.
(1)If the management entity has already submitted a profile in the format of the HUD-9832 and
the profile is still accurate, the owner/agent should state in the cover letter requesting approval of
the management entity that an accurate and up-to-date profile is on file. The cover letter should
also include the date that this document was submitted. A new submission is not required.
(2)If a previously-submitted profile is not current, or if the management entity has never
submitted a profile that conforms with the HUD-9832 format, the owner or agent must submit a
new profile of the management entity.
(3)An updated profile must be submitted whenever there are changes in the management entity's
organization or operations. The owner and/or agent should not wait until the management fee
changes to submit a revised profile.
c.Management Certification. Using Form HUD-9839a, b, or c, as appropriate, (see Appendix 3)
the owner and management agent together certify that they will comply with HUD requirements
and contract obligations, execute an acceptable management agent agreement, and that no
payments have been made to the owner in return for awarding the management contract to the
agent and such payments will not be made in the future (projects not managed by the owner).
Owners and agents must fill out the appropriate Certification Form as follows:
(1)Owner-Managed Projects submit Form HUD-9839a
(2)Identity-of-Interest Agents submit Form HUD-9839b
(3)Independent Fee Agents submit Form HUD-9839b
(4)Project Administrators submit Form HUD 9839c.

d.Proposed Staffing to be Charged Against the Project Operating Account. (See paragraph 6.38
for a discussion of which positions can be charged against the operating account.)
(1)Owners/agents must provide a listing of the staff whose salaries will be paid from the project's
operating account. The list must include:
(a)Job titles and approximate salary, including hourly rate;
(b)A statement of each position's duties, if not obvious by title and whether the position is full or
part-time;
(c)If the employee will be working for more than one project and/or working part-time for the
agent in a non-supervisory capacity, a statement of how that person's time and salary will be
allocated.
Note:Salaries of management agent supervisory staff not assigned to the project must be paid
from the management fee. Only full-time, front-line supervisors may be paid from the project
account (see exceptions to this rule in paragraph 6.39(c)).
(2)Any changes in staffing structure described in the listing above or additions in staff, which
would require submitting a rent increase request to HUD, should be documented as part of the
budgeted rent increase request process.
e.Resident Complaints and Their Resolution. Owners must provide a description of the system
employed by the agent for resolving resident complaints and actual examples of the agent's
implementation of the system.
f.Additional Information Required by the HUD Area Office. The Loan/Asset Management staff
may require owners to submit additional information to clarify materials already submitted.
Materials requested may address:
(1)Determining the management agent's acceptability.
(2)Monitoring the agent's compliance with HUD requirements.
(3)Resolving project operating problems.
Figure 2-4 lists the types of additional information that may be needed to assess the acceptability
of a proposed agent. Loan/Asset Management staff should not require owners to submit this type
of information on a specific form.

[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: 24CFR881.101]
[Page 67]
TITLE 24--HOUSING AND URBAN DEVELOPMENT
CHAPTER VIII--OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING-FEDERAL
PART 881_SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR SUBSTANTIAL
REHABILITATION--Table of Contents
Subpart A -Summary and Applicability
Sec. 881.101

General.

Subpart A -Summary and Applicability
Sec.
881.101 General.
881.104 Applicability of part 881.
881.105 Applicability to proposals and projects under 24 CFR part 811.
Subpart B -Definitions and Other Requirements
881.201
881.205
881.207
881.208
881.211

Definitions.
Limitation on distributions.
Property standards.
Financing.
Audit.

Subparts C-D [Reserved]
Subpart E -Housing Assistance Payments Contract
881.501 The contract.
881.502 Term of contract.
881.503 Cross-reference.
Subpart F -Management
881.601 Cross-reference.
Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), 12701, and 1361113619.
Source: 45 FR 7085, Jan. 31, 1980, 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 substantial
rehabilitation 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 880, 882, 883,
884, and 885, except to the extent specifically stated in those parts.
[61 FR 13591, 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: 24CFR881.601]
[Page 73]
TITLE 24--HOUSING AND URBAN DEVELOPMENT
CHAPTER VIII--OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING-FEDERAL
PART 881_SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR SUBSTANTIAL
REHABILITATION--Table of Contents
Subpart F -Management
Sec. 881.601

Cross-reference.

All of the provisions of part 880, subpart F, of this chapter apply
to projects assisted under this part, subject to the requirements of
Sec. 881.104.
[61 FR 13592, Mar. 27, 1996]