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PART 886—SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM—SPECIAL ALLOCATIONS›Subpart A—Additional Assistance Program for Projects With HUD-Insured and HUD-Held Mortgages

§ 886.109 Housing assistance payments to owners.

24 C.F.R. Parts 880, 881, 883, 886 — Section 8 Project-Based Programs (New Construction; Substantial Rehabilitation; State Housing Agencies; Loan Management/Property Disposition Set-Asides) · 2026 edition · updated 2026-07-29 · United States

(a) General. Housing Assistance Payments shall be paid to Owners for units under lease by eligible families, in accordance with the Contract and as provided in this section. These Housing Assistance Payments will cover the difference between the Contract Rent and the Tenant Rent. Where applicable, the Utility Reimbursement will be paid to the Family as an additional Housing Assistance Payment. The Contract will provide that the Owner will make this payment on behalf of HUD. Funds will be paid to the Owner in trust solely for the purpose of making this additional payment. If the Family and the utility company consent, the Owner may pay the Utility Reimbursement jointly to the Family and the utility company or directly to the utility company.

(b) No Section 8 assistance may be provided for any unit occupied by an Owner; cooperatives are considered rental housing.

(c) If an Eligible Family vacates its unit (other than as a result of action by the Owner which is in violation of the Lease or the Contract or any applicable law), the Owner shall receive housing assistance payments in the amount of 80 percent of the Contract Rent for a vacancy period not exceeding 60 days: Provided, however, That if the Owner collects any of the Family's share of the rent for this period, or applies security deposits for unpaid rent, in amounts which when added to the 80 percent payments, results in more than the Contract Rent, such excess shall be payable to HUD or as HUD may direct. (See also § 886.116.) The Owner shall not be entitled to any payment under this paragraph unless he:

(1) Immediately upon learning of the vacancy, has notified HUD of the vacancy or prospective vacancy and the reasons for the vacancy, and

(2) Has taken and continues to take all feasible actions to fill the vacancy including, but not limited to, contacting applicants on his waiting list (if any), and advising them of the availability of the unit, and

(3) Has not rejected any eligible applicant except for good cause.

[42 FR 5603, Jan. 28, 1977, as amended at 49 FR 19948, May 10, 1984]

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▸ Contents — 24 C.F.R. Parts 880, 881, 883, 886 — Section 8 Project-Based Programs (New Construction; Substantial Rehabilitation; State Housing Agencies; Loan Management/Property Disposition Set-Asides)
24 C.F.R. Parts 880, 881, 883, 886 — Section 8 Project-Based Programs (New Construction; Substantial Rehabilitation; State Housing Agencies; Loan Management/Property Disposition Set-Asides)
  1. 24 C.F.R. Parts 880, 881, 883, 886 — Section 8 Project-Based P…
  2. PART 880—SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR NEW…
  3. PART 881—SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR SUB…
  4. PART 883—SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM—STATE H…
  5. ▸ PART 886—SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM—SPECIAL…
    Overview
    1. ▸ Subpart A—Additional Assistance Program for Projects With HUD-…
      Overview
      1. § 886.101 Applicability.
      2. § 886.102 Definitions.
      3. § 886.103 Allocation of Section 8 contract authority.
      4. § 886.104 Invitations to participate.
      5. § 886.105 Content of application; Disclosure.
      6. § 886.106 Notices.
      7. § 886.107 Approval of applications.
      8. § 886.108 Maximum annual contract commitment.
      9. § 886.109 Housing assistance payments to owners.
      10. § 886.110 Contract rents.
      11. § 886.111 Term of contract.
      12. § 886.111a Notice upon contract expiration.
      13. § 886.112 Rent adjustments.
      14. § 886.113 Physical condition standard; physical inspection req…
      15. § 886.114 Equal opportunity requirements.
      16. § 886.115 [Reserved]
      17. § 886.116 Security and utility deposits.
      18. § 886.117 [Reserved]
      19. § 886.118 Amount of housing assistance payments in projects re…
      20. § 886.119 Responsibilities of the owner.
      21. § 886.120 Responsibility for contract administration.
      22. § 886.121 Marketing.
      23. § 886.122 [Reserved]
      24. § 886.123 Maintenance, operation, and inspections.
      25. § 886.124 Reexamination of family income and composition.
      26. § 886.125 Overcrowded and underoccupied units.
      27. § 886.126 Adjustment of utility allowances.
      28. § 886.127 Lease requirements.
      29. § 886.128 Termination of tenancy.
      30. § 886.129 Leasing to eligible families.
      31. § 886.130 Management and occupancy reviews.
      32. § 886.131 Audit.
      33. § 886.132 Tenant selection.
      34. § 886.138 Displacement, relocation, and acquisition.
      35. § 886.139 Emergency transfers for victims of domestic violence…
      36. § 886.140 Broadband infrastructure.
    2. Subpart B [Reserved]
    3. Subpart C—Section 8 Housing Assistance Program for the Disposi…

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