Code of Federal Regulations (Last Updated: July 5, 2024) |
Title 24 - Housing and Urban Development |
Subtitle B - Regulations Relating to Housing and Urban Development |
Chapter IV - Office of Housing and Office of Multifamily Housing Assistance Restructuring, Department of Housing and Urban Development |
Part 401 - Multifamily Housing Mortgage and Housing Assistance Restructuring Program (Mark-to-Market) |
Subpart E - Section 8 Requirements for Restructured Projects |
§ 401.600 - Will a section 8 contract be extended if it would expire while an owner's request for a Restructuring Plan is pending?
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§ 401.600 Will a section 8 contract be extended if it would expire while an owner's request for a Restructuring Plan is pending?
(a) If a section 8 contract for an eligible project would expire before a Restructuring Plan is implemented, the contract may be extended at rents not exceeding current rents:
(1) For up to the earlier of one year or closing on the Restructuring Plan under § 401.407; or
(2) For such period of time beyond one year as HUD may approve, up to the closing of the Restructuring Plan.
(b) Any extension of the contract beyond one year for a pending Restructuring Plan, other than an extension approved under this section, must be at comparable market rents or exception rents. An extension at comparable market rents will not affect a project's eligibility for the Mark-to-Market program once it has been established under this part.
(c) HUD may terminate the contract earlier if the PAE or HUD determines that an owner is not cooperative under § 401.402 or if the owner's request is rejected under § 401.403 or § 401.405.
[71 FR 2121, Jan. 12, 2006]