1、624 24 CFR Ch. IV (4111 Edition) 401.652 decision to terminate, modify, or af-firm the original decision. HUD will act, as necessary, to implement the de-cision, for example, by offering a re-vised Restructuring Commitment to the owner. (c) Who is responsible for reviewing ap-peals? HUD will designa
2、te an official to review any appeal, conduct the con-ference, and issue the written decision. The official designated must be one who was neither directly involved in, nor reports to another directly in-volved in, making the decision being appealed. 65 FR 15485, Mar. 22, 2000, as amended at 72 FR 66
3、040, Nov. 26, 2007 401.652 No judicial review. The reviewing officials decision under 401.651 is a final determination for purposes of section 516(c) of MAHRA and is not subject to judicial review. PART 402SECTION 8 PROJECT- BASED CONTRACT RENEWAL UNDER SECTION 524 OF MAHRA Sec. 402.1 What is the pu
4、rpose of part 402? 402.2 Definitions. 402.3 Contract provisions. 402.4 Contract renewals under section 524(a)(1) of MAHRA. 402.5 Contract renewals under section 524(b) or (e) of MAHRA . 402.6 What actions must an owner take to request section 8 contract renewal under this part? 402.7 Refusal to cons
5、ider an owners request for a Section 8 contract renewal because of actions or omissions of owner or affil-iate. 402.8 Tenant protections if a contract is not renewed. 402.9 Waivers and delegations of waiver au-thority. AUTHORITY: 42 U.S.C. 1437(c)(8), 1437f note, and 3535(d). SOURCE: 63 FR 48953, Se
6、pt. 11, 1998, unless otherwise noted. 402.1 What is the purpose of part 402? This part sets out the terms and con-ditions under which HUD will renew project-based assistance contracts under the authority provided in section 524 of MAHRA. 71 FR 2121, Jan. 12, 2006 402.2 Definitions. (a) Terms defined
7、 in part 401. In this part, the following terms have the meanings given in 401.2 of this chap-ter: affiliate, disabled family, elderly family, eligible project, HUD, MAHRA, owner, PAE, Restructuring Plan, and section 8. (b) Terms defined in MAHRA. In this part, the following terms have the meanings
8、given in section 512 of MAHRA: expiration date, fair market rent, renewal, and tenant-based assist-ance. (c) Other defined terms. In this part, the term Comparable market rents means rents determined in accordance with section 524(a)(5) of MAHRA and HUDs instruc-tions. Large family means a family of
9、 five or more persons. OCAF means an operating cost ad-justment factor established by HUD, which may not be negative, that is ap-plied to the existing contract rent (less the portion of that rent paid for debt service). Portfolio Reengineering demonstration authority means the authority specified in
10、 section 524(e)(2)(B) of MAHRA. Project-based assistance means the types of assistance listed in section 512(2)(B) of MAHRA, or a project-based assistance contract under the Section 8 program renewed under section 524 of MAHRA. Project eligible for exception rents means a project described in sectio
11、n 524(b) of MAHRA. SRO contract and SRO project mean, respectively, a project-based assistance contract for single-room occupancy dwellings under section 441 of the Stewart B. McKinney Homeless Assist-ance Act (42 U.S.C. 11401), and a project with units covered by such a contract. 71 FR 2121, Jan. 1
12、2, 2006 402.3 Contract provisions. The renewal HAP contract shall be construed and administered in accord-ance with all statutory requirements, and with all HUD regulations and other VerDate Mar2010 10:21 May 10, 2011 Jkt 223078 PO 00000 Frm 00634 Fmt 8010 Sfmt 8010 Y:SGML223078.XXX 223078WReier-Avi
13、les on DSKGBLS3C1PROD with CFRProvided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-625 Housing and Multifamily Housing Assistance Restructuring, HUD 402.5 requirements, including changes in HUD regulations and other require-ments during the term of the re
14、newal HAP contract, unless the contract pro-vides otherwise. 71 FR 2121, Jan. 12, 2006 402.4 Contract renewals under sec-tion 524(a)(1) of MAHRA. (a) Initial renewal. (1) HUD may renew any expiring section 8 project-based as-sistance contract at initial rents that do not exceed comparable market ren
15、ts. (2) Procedure for projects eligible for Re-structuring Plan. (i) If an owner re-quests renewal of a contract under this section for a project that is eligible for a Restructuring Plan under the Mark- to-Market program under part 401 and that has not been rejected under that part, HUD or a PAE wi
16、ll determine whether renewal under this section, in-stead of through a Restructuring Plan under part 401 of this chapter, would be sufficient. Renewal without a Restruc-turing Plan will be considered suffi-cient if the rents after renewal would be sufficient to maintain both adequate debt service co
17、verage on the HUD-in-sured or HUD-held mortgage and nec-essary replacement reserves to ensure the long-term physical integrity of the project, taking into account any com-ments received under 401.502(c) of this chapter. (ii) If HUD or the PAE determines that renewal under this section would be suffi
18、cient, HUD will not require a Restructuring Plan. (iii) If HUD or the PAE determines that renewal under this section would not be sufficient, HUD or the PAE may require a Restructuring Plan before the owners request for contract renewal will be given further consideration. If the owner does not coop
19、erate in the de-velopment of an acceptable Restruc-turing Plan, HUD will pursue whatever administrative actions it considers necessary. (b) Reserved 65 FR 15498, Mar. 22, 2000, as amended at 71 FR 2121, Jan. 12, 2006 402.5 Contract renewals under sec-tion 524(b) or (e) of MAHRA. (a) Renewal of proje
20、cts eligible for ex-ception rents at owners request. HUD will offer to renew project-based assist-ance for a project eligible for exception rents under section 524(b) of MAHRA at rent levels determined under this sec-tion instead of 402.4, except as pro-vided in 402.7, but the owner of a project oth
21、er than a project with as-sistance under the Section 8 moderate rehabilitation program may request re-newal under 402.4. (b) Rent levels for projects eligible for exception rents. HUD will renew the contract with rent levels at the least of: (1) Existing rents adjusted by an OCAF; (2) A budget-based
22、 rent determined in accordance with instructions issued by HUD, subject to a determination by HUD that such a rent level is appro-priate; or (3) In the case of a contract under the Section 8 moderate rehabilitation pro-gram (other than an SRO contract), the lesser of existing rents adjusted by an OC
23、AF, fair market rents (less any amounts for tenant-purchased utili-ties), or comparable market rents, as provided in section 524(b)(3) of MAHRA. (c) Rent adjustments. (1) After rents have been established under this sec-tion, rent adjustments will comply with section 524(c) of MAHRA except as otherw
24、ise required by paragraph (d)(1) of this section for preservation projects. (2) Rent adjustments for projects as-sisted under the Section 8 moderate re-habilitation program, other than projects assisted under the moderate rehabilitation single-room occupancy program, shall be determined in ac-cordan
25、ce with section 524(b)(3) of MAHRA. (d) Preservation projects and dem-onstration projects. (1) Notwithstanding any other provision of this part except 402.7, upon expiration of a section 8 contract for a project subject to an ap-proved plan of action under the Emer-gency Low-Income Housing Preserva-
26、tion Act of 1987 (ELIHPA) or the Low- Income Housing Preservation and Resi-dent Homeownership Act of 1990 (LIHPRHA), the Secretary will provide VerDate Mar2010 10:21 May 10, 2011 Jkt 223078 PO 00000 Frm 00635 Fmt 8010 Sfmt 8010 Y:SGML223078.XXX 223078WReier-Aviles on DSKGBLS3C1PROD with CFRProvided
27、by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-626 24 CFR Ch. IV (4111 Edition) 402.6 benefits that are comparable to those provided under such plan of action. This paragraph (d)(1) applies only to the extent amounts are specifically made available in approp
28、riations acts. (2) Notwithstanding any other provi-sion of this part except 402.7, upon ex-piration of a Section 8 contract entered into pursuant to a Portfolio Re-engineering demonstration authority for which HUD made a determination that debt restructuring is inappro-priate, and the owner of the p
29、roject ex-ecuted a Portfolio Reengineering Dem-onstration Program Use Agreement, the Secretary will provide the owner, at the request of the owner, with bene-fits comparable to those provided under the contract that is expiring. This paragraph (d)(2) applies only to the extent amounts are made avail
30、able in appropriations acts. 71 FR 2122, Jan. 12, 2006 402.6 What actions must an owner take to request section 8 contract renewal under this part? (a) In general. An owner requesting contract renewal under this part must submit to HUD or HUDs designee, at least 120 days before the termination or ex
31、piration date of any project-based as-sistance contract, all documents or in-formation prescribed by HUD. (b) Subsequent renewals. A contract that was initially renewed under MAHRA will be renewed at the owners request under any renewal option for which the project is eligible. However, in the case
32、of a project that is eligible for a Restructuring Plan under 401.100, HUD or a PAE will determine whether renewal with a Restructuring Plan under part 401, or without a Restruc-turing Plan under this part, is nec-essary. 71 FR 2122, Jan. 12, 2006 402.7 Refusal to consider an owners request for a Sec
33、tion 8 contract re-newal because of actions or omis-sions of owner or affiliate. (a) Determination of eligibility. Not-withstanding 2 CFR part 2424, HUD may elect to not consider a request for renewal of project-based assistance, if at any time before contract renewal: (1) The owner or an affiliate
34、is debarred or suspended under part 2 CFR part 2424; (2) HUD determines that the owner or an affiliate has engaged in material ad-verse financial or managerial actions or omissions as described in section 516 of MAHRA, including any outstanding violations of civil rights laws, or has failed to certi
35、fy to compliance with the nondiscrimination requirements of 24 CFR 5.105(a), in connection with any project of the owner or an affiliate; or (3) The project does not meet the physical condition standards in 24 CFR 5.703 of this title, unless HUD deter-mines that the project will meet the standards w
36、ithin a reasonable time after renewal. (b) Dispute and appeal. An owner may dispute a rejection under this section and seek administrative review under the procedures in subpart F of part 401 of this chapter. 71 FR 2122, Jan. 12, 2006, as amended at 72 FR 73496, Dec. 27, 2007 402.8 Tenant protection
37、s if a contract is not renewed. (a) Notice of termination. An owner who is not eligible for a Restructuring Plan under part 401 of this chapter, or who is eligible but does not request re-structuring, and who does not renew a contract, must provide one years no-tice to tenants, to HUD, and to the co
38、ntract administrator as provided in section 8(c)(8)(A) of the United States Housing Act of 1937. (b) If an owner does not give timely no-tice. If an owner does not give one years notice of termination as de-scribed in paragraph (a) of this section, the owner must permit the tenants in assisted units
39、 to remain in their units at a rental rate no higher than the ten-ant rent payable for the tenants last month of assisted occupancy under the terminated HAP contract until one year after notice is given, even if HUD does not continue to make housing as-sistance payments with respect to such units. (
40、c) If an owner opts out or fails to renew. In the case where a contract for Section 8 rental assistance for a project is terminated or expires, an as-sisted family may elect to remain in VerDate Mar2010 10:21 May 10, 2011 Jkt 223078 PO 00000 Frm 00636 Fmt 8010 Sfmt 8010 Y:SGML223078.XXX 223078WReier
41、-Aviles on DSKGBLS3C1PROD with CFRProvided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-627 Housing and Multifamily Housing Assistance Restructuring, HUD 402.9 the project and, if eligible, receive ten-ant-based Section 8 assistance under Section 8(t) of t
42、he United States Hous-ing Act of 1937. 71 FR 2122, Jan. 12, 2006 402.9 Waivers and delegations of waiver authority. All waivers of provisions of this part, and delegations of the authority to waive provisions of this part, are gov-erned by 5.110 of this title. 71 FR 2123, Jan. 12, 2006 PARTS 403499 RESERVED VerDate Mar2010 10:21 May 10, 2011 Jkt 223078 PO 00000 Frm 00637 Fmt 8010 Sfmt 8006 Y:SGML223078.XXX 223078WReier-Aviles on DSKGBLS3C1PROD with CFRProvided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-
