Skip to content

PART 886—SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM—SPECIAL ALLOCATIONS›Subpart C—Section 8 Housing Assistance Program for the Disposition of HUD-Owned Projects

§ 886.315 Security and utility deposits.

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) Amount of deposits. If at the time of the initial execution of the Lease the Owner wishes to collect a security deposit, the maximum amount shall be the greater of one month's Gross Family Contribution or $50. However, this amount shall not exceed the maximum amount allowable under State or local law. For units leased in place, security deposits collected prior to the execution of a Contract which are in excess of this maximum amount do not have to be refunded until the Family is expected to pay security deposits and utility deposits from its resources and/or other public or private sources.

(b) When a Family vacates. If a Family vacates the unit, the Owner, subject to State and local law, may use the security deposit as reimbursement for any unpaid Family Contribution or other amount which the Family owes under the Lease. If a Family vacates the unit owing no rent or other amount under the Lease consistent with State or local law or if such amount is less than the amount of the security deposit, the Owner shall refund the full amount or the unused balance to the Family.

(c) Interest payable on deposits. In those jurisdictions where interest is payable by the Owner on security deposits, the refunded amount shall include the amount of interest payable. The Owner shall comply with all State and local laws regarding interest payments on security deposits.

(d) Insufficient deposits. If the security deposit is insufficient to reimburse the Owner for the unpaid Family Contribution or other amounts which the Family owes under the Lease, or if the Owner did not collect a security deposit, the Owner may claim reimbursement from HUD for an amount not to exceed the lesser of: (1) The amount owed the Owner, (2) two months' Contract Rent, minus, in either case, the greater of the security deposit actually collected or the amount of security deposit the owner could have collected under the program (pursuant to paragraph (a) of this section). Any reimbursement under this section must be applied first toward any unpaid Family Contribution due under the Lease and then to any other amounts owed. No reimbursement shall be claimed for unpaid rent for the period after the family vacates.

Get a plain-English answer with a citation back to this text.

Ask AI about this code
▸ 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-…
    2. Subpart B [Reserved]
    3. ▸ Subpart C—Section 8 Housing Assistance Program for the Disposi…
      Overview
      1. § 886.301 Purpose.
      2. § 886.302 Definitions.
      3. § 886.303 Allocation and reservation of Section 8 contract aut…
      4. § 886.304 Project eligibility criteria.
      5. § 886.305 Disclosure and verification of Social Security and E…
      6. § 886.306 Notices.
      7. § 886.307 Physical condition standards; physical inspection re…
      8. § 886.308 Maximum total annual contract commitment.
      9. § 886.309 Housing assistance payment to owners.
      10. § 886.310 Initial contract rents.
      11. § 886.311 Term of contract.
      12. § 886.311a Notice upon contract expiration.
      13. § 886.312 Rent adjustments.
      14. § 886.313 Other Federal requirements.
      15. § 886.314 Financial default.
      16. § 886.315 Security and utility deposits.
      17. §§ 886.316-886.317 [Reserved]
      18. § 886.318 Responsibilities of the owner.
      19. § 886.319 Responsibility for contract administration.
      20. § 886.320 Default under the contract.
      21. § 886.321 Marketing.
      22. § 886.322 [Reserved]
      23. § 886.323 Maintenance, operation, and inspections.
      24. § 886.324 Reexamination of family income and composition.
      25. § 886.325 Overcrowded and underoccupied units.
      26. § 886.326 Adjustment of utility allowances.
      27. § 886.327 Lease requirements.
      28. § 886.328 Termination of tenancy.
      29. § 886.329 Leasing to eligible families.
      30. § 886.329a Preferences for occupancy by elderly families.
      31. § 886.330 Work write-ups and cost estimates.
      32. § 886.331 Agreement to enter into housing assistance payments …
      33. § 886.332 Rehabilitation period.
      34. § 886.333 Completion of rehabilitation.
      35. § 886.334 Execution of housing assistance payments contract.
      36. § 886.335 Management and occupancy reviews.
      37. § 886.336 Audit.
      38. § 886.337 Selection preferences.
      39. § 886.338 Displacement, relocation, and acquisition.
      40. § 886.339 Emergency transfers for victims of domestic violence…
      41. § 886.340 Broadband infrastructure.

GoCodebook provides public access, search, citation, multilingual explanation, and practical interpretation of legally adopted building regulations. It is not a substitute for the official ICC or California code publications.