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

§ 886.332 Rehabilitation period.

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) Immediate start of rehabilitation after sales closing. After the execution of the Agreement and the sales closing, the owner shall immediately proceed with the rehabilitation work as provided in the Agreement. In the event the work is not immediately commenced, diligently continued, and/or completed by the deadline date stated on the Agreement, HUD will have the right, upon written notification to the owner, to rescind the Agreement and the sale, or take other appropriate action.

(b) Extensions. Although extensions of time may be granted by HUD upon a written request from the owner stating the grounds for the extension, no increases in Contract Rents shall be granted for delays.

(c) Changes. (1) The Owner must submit to HUD for approval any changes from the work specified in the Agreement which would materially reduce or alter the Owner's obligations or the quality or amenities of the project. HUD may condition its approval of such changes on a reduction of the Contract Rents. If changes are made without prior HUD approval, HUD will have the right to take action consistent with the purpose of this subpart, including action intended to preclude the owner from benefiting from a change in the work specified without HUD approval. HUD action shall include but is not limited to reducing the Contract Rents, requiring the owner to remedy the deficiency, or rescission of the Contract of Sale with reimbursement to the owner for the HUD determined reasonable cost of work items completed by the Owner and acceptable to HUD.

(2) Contract Rents for project units being rehabilitated shall not be increased except in accordance with this subpart. Should an increase in Contract Rents be necessitated by changes in local codes or ordinances or other unanticipated changes in work items which could not have been anticipated by HUD, an increase will only be approved if HUD approval is obtained prior to incorporation of any changes in the project.

[44 FR 70365, Dec. 6, 1979, as amended at 58 FR 43722, Aug. 17, 1993]

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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-…
    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.

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