PART 882—SECTION 8 MODERATE REHABILITATION PROGRAMS Authority: 42 U.S.C. 1437f and 3535(d). Source: 43 FR 61246, Dec. 29, 1978, unless otherwise noted. Subpart A—Applicability, Scope and Basic Policies § 882.101 Applicability. (a) The provisions of this part apply to the Section 8 Moderate Rehabilitation program. (b) This part states the policies and procedures to be used by a PHA in administering a Section 8 Moderate Rehabilitation program. The purpose of this program is to upgrade substandard rental housing and to provide rental subsidies for low-income families. (c) Subpart H of this part only applies to the Section 8 Moderate Rehabilitation Single Room Occupancy Program for Homeless Individuals. [63 FR 23853, Apr. 30, 1998] § 882.102 Definitions. (a) Terms found elsewhere. 1937 Act, covered person, drug, drug-related criminal activity, federally assisted housing, guest, household, HUD, MSA, other person under the tenant's control, public housing agency (PHA), Section 8, and violent criminal activity. (b) In addition, the following definitions apply to this part: ACC reserve account Agreement to enter into Housing Assistance Payments Contract (“Agreement”). Annual Contributions Contract Assisted lease Congregate housing. Contract. Contract rent. Covered housing provider. Decent, safe, and sanitary. Gross rent. Group home. Housing Assistance Payment. Housing Assistance Payments Contract Moderate rehabilitation. (1) Upgrade to decent, safe and sanitary condition to comply with the Housing Quality Standards or other standards approved by HUD, from a condition below these standards (improvements being of a modest nature and other than routine maintenance); or (2) Repair or replace major building systems or components in danger of failure. Owner. Single room occupancy housing Statement of Family responsibility. [63 FR 23853, Apr. 30, 1998, as amended at 63 FR 46578, Sept. 1, 1998; 66 FR 28797, May 24, 2001; 81 FR 80812, Nov. 16, 2016] §§ 882.103-882.122 [Reserved] § 882.123 Conversion of Section 23 Units to Section 8 and Section 23 monitoring. (a)-(d) [Reserved] (e) Section 23 policies for units planned for conversion on or before September 30, 1981. (2) Subject to the rights of families under existing leases, PHAs may continue to lease units to families under Section 23 only on a month-to-month basis. (3) PHAs shall conduct annual inspections of all units to determine whether the units are decent, safe and sanitary. (4) PHAs shall certify with their requisitions to HUD for payments under the ACC that the units are decent, safe and sanitary, or the PHA shall furnish HUD with a report of the nature of the deficiencies of the units which are not so certified. If an owner's units are not decent, safe and sanitary. (i) Where the owner is responsible under the terms of the lease for correcting the deficiencies, the PHA shall send the owner written notification requiring the owner to take specified corrective action within a specified time. The notification shall also state that, if the owner fails to comply, rent payments will be suspended. If the owner fails to comply with the first notification, he shall be notified by the PHA of the noncompliance and rent payments shall be suspended immediately. In the event of such suspension of rent payments, the PHA shall requisition a correspondingly lower ACC payment. (ii) Where the PHA is responsible under the terms of the lease for correcting the deficiencies, the Field Office shall send written notification requiring the PHA to take specified corrective action within a specified time. The notification shall also state that, if the PHA fails to comply, HUD will make reduced payments to the PHA only in the amount of the rent due the owner. If the PHA fails to comply with the first notification, the PHA shall be notified of the noncompliance, and the PHA shall not receive any fees for performing management functions until the PHA has complied with the Field Office request and has corrected the noted deficiencies. (f) [Reserved] (g) Section 23 policies for units not planned to be converted. (2) The provisions contained in paragraphs (e) (3) and (4) of this section shall apply. (h) Request for rent increases. (1) Subject to available contract authority and prior approval by the HUD Field Office, the PHA may grant an adjustment to the extent documented and justified for those items of expenses (excluding debt service) for which the owner is responsible under the lease. (2) The amount of the adjustment must be reasonable when compared with similar items under the Section 8 Existing Housing program. (3) The adjusted amount for expenses shall not exceed the result of applying the appropriate Section 8 Existing Housing Annual Adjustment Factor (24 CFR part 888) most recently published by HUD in the Federal Register (4) The adjustment shall not be retroactive to pay for costs that the owner had previously incurred. (5) The adjustment shall be effective for a period not to exceed one year. [44 FR 28276, Nov. 14, 1979, as amended at 60 FR 34694, July 3, 1995] § 882.124 Audit. PHAs receiving financial assistance under this part are subject to audit requirements in 2 CFR part 200, subpart F. [50 FR 39091, Sept. 27, 1985; 51 FR 30480, Aug. 27, 1986; 80 FR 75941, Dec. 7, 2015] Subparts B-C [Reserved] Subpart D—Special Procedures for Moderate Rehabilitation—Basic Policies Source: 47 FR 34379, Aug. 9, 1982, unless otherwise noted. § 882.401 Eligible properties. (a) Eligible properties. (b) Ineligible properties. (2) Housing owned by a State or unit of general local government is not eligible for assistance under this program. (3) High rise elevator projects for families with children may not be utilized unless HUD determines there is no practical alternative. (HUD may make this determination for a locality's Moderate Rehabilitation Program in whole or in part and need not review each building on a case-by-case basis.) (4) Single room occupancy (SRO) housing may not be utilized unless: (i) The property is located in an area in which there is a significant demand for such units as determined by the HUD Field Office; and (ii) The PHA and the unit of general local government in which the property is located approve of such units being utilized for such purpose. (5) No Section 8 assistance may be provided with respect to any unit occupied by an Owner; however, cooperatives will be considered as rental housing for purposes of the Moderate Rehabilitation Program. [63 FR 23854, Apr. 30, 1998, as amended at 64 FR 14832, Mar. 29, 1999] § 882.402 [Reserved] § 882.403 ACC, housing assistance payments contract, and lease. (a) Maximum Total ACC Commitments. (b) Project account. (2) When a HUD-approved estimate of required payments under the ACC for a fiscal year exceeds the maximum annual commitment, and would cause the amount in the project account to be less than 40 percent of the maximum, HUD will, within a reasonable period of time, take such additional steps authorized by Section 8(c)(6) of the U.S. Housing Act of 1937, as may be necessary, to assure that payments under the ACC will be adequate to cover increases in Contract Rents and decreases in Gross Family Contributions. (c) Term of Housing Assistance Payments Contract. (d) Term of Lease. (2) Any renewal or extension of the lease term for any unit must in no case extend beyond the remaining term of the HAP contract. [47 FR 34379, Aug. 9, 1982, as amended at 64 FR 53869, Oct. 4, 1999] § 882.404 Physical condition standards; physical inspection requirements. (a) Compliance with physical condition standards. (b) Space and security. (c) Special housing types. (1) 24 CFR 982.605(b) (for SRO housing). For the Section 8 moderate rehabilitation SRO program under subpart H of this part 882, see also § 882.803(b). (2) 24 CFR 982.609(b) (for congregate housing). (3) 24 CFR 982.614(c) (for group homes). [63 FR 46579, Sept. 1, 1998; 64 FR 50227, Sept. 15, 1999; 88 FR 30499, May 11, 2023] § 882.405 Financing. (a) Types. (b) Use of Contract as security for financing. Provided § 882.406 [Reserved] § 882.407 Other Federal requirements. (a) The moderate rehabilitation program is subject to applicable Federal requirements in 24 CFR 5.105 and to the requirements for protection for victims of domestic violence, dating violence, sexual assault, or stalking in 24 CFR part 5, subpart L (Protection for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking). (b) In order to facilitate emergency transfers for victims of domestic violence, dating violence, sexual assault, or stalking, covered housing providers have discretion to adopt and modify any existing admission preferences or transfer waitlist priorities for victims of domestic violence, dating violence, sexual assault, or stalking. (c) Covered housing providers must develop and implement an emergency transfer plan that meets the requirements in 24 CFR 5.2005(e), and when a safe unit is not immediately available for a victim of domestic violence, dating violence, sexual assault, and stalking who qualifies for an emergency transfer, covered housing providers must, at a minimum: (1) Review the covered housing provider's existing inventory of units and determine when the next vacant unit may be available; and (2) Provide a listing of nearby HUD subsidized rental properties, with or without preference for persons of domestic violence, dating violence, sexual assault, or stalking, and contact information for the local HUD field office. (d) Each year, the covered housing provider must submit to HUD data on all emergency transfers requested under 24 CFR 5.2005(e), pertaining to victims of domestic violence, dating violence, sexual assault, or stalking, including data on the outcomes of such requests. [81 FR 80812, Nov. 16, 2016] § 882.408 Initial contract rents. (a) Fair Market Rent limitation. (b) Exception rents. (c) Determination Initial Contract Rents. (i) The Moderate Rehabilitation Fair Market Rent or exception rent applicable to the unit on the date that the Agreement is executed, minus (ii) Any applicable allowance for utilities and other services attributable to the unit. (2) When the initial Contract Rent is computed under this paragraph, the rent will be equal to the base rent plus the monthly cost of a rehabilitation loan (but not more than the maximum stated in paragraph (c)(1)). The base rent must be calculated using the rent charged for the unit or the estimated costs to the Owner of owning, managing and maintaining the rehabilitated unit. The monthly cost of a rehabilitation loan must be calculated using: (i) The actual interest rate on the portion of the rehabilitation costs borrowed by the Owner, (ii) The HUD-FHA maximum interest rate for multifamily housing (or another rate prescribed by HUD) for rehabilitation costs paid by the Owner out of nonborrowed funds, and (iii) At least a 15 year loan term, except that if the total amount of rehabilitation is less than $15,000, the actual loan term will be used for the portion of the rehabilitation costs borrowed by the Owner. (HUD Field Offices may authorize loan terms which differ from the above in accordance with HUD requirements.) (d) Changes in Initial Contract Rents during rehabilitation. (i) When, during rehabilitation, work items (including substantial and necessary design changes) which (A) could not reasonably have been anticipated or are necessitated by a change in local codes or ordinances, and (B) were not listed in the work write-up prepared or approved by the PHA, are subsequently required and approved by the PHA. (ii) When the actual cost of the rehabilitation performed is less than that estimated in the calculation of Contract Rents for the Agreement or the actual, certified costs are more than estimated due to unforeseen factors beyond the owner's control (e.g., strikes, weather delays or unexpected delays caused by local governments). (iii) When the PHA (or HUD) approves changes in financing. (iv) When the actual relocation payments made by the Owner to temporarily relocated Families varies from the cost estimated in the calculation of Contract Rents for the Agreement. (v) When necessary to correct errors in computation of the base and Contract Rents to comply with the HUD requirements. (2) Should changes occur as specified in paragraph (d)(1) (either an increase or decrease), the PHA will approve any necessary change in work and amendment of the work write-up and cost estimate, recalculate the initial Contract Rents in accordance with paragraph (d)(3) of this section, and amend the Contract or Agreement, as appropriate, to reflect the revised rents. (3) In establishing the revised Contract Rents, the PHA must determine that the resulting Gross Rents do not exceed the Moderate Rehabilitation Fair Market Rent or the exception rent in effect at the time of execution of the Agreement. The Fair Market Rent or exception rent, as appropriate, may only be exceeded when the PHA determines in accordance with paragraph (d)(1) of this section that it will be necessary for the revised Gross Rent to exceed the Moderate Rehabilitation Fair Market Rent or exception rent. Should this determination be made, the PHA may not execute a revised Agreement or Contract for Gross Rents exceeding the Fair Market Rents by more than 10 percent until it receives HUD Field Office approval. The HUD Field Office may approve revised Gross Rents which exceed the Fair Market Rents by up to 20 percent for reasons specified in paragraph (d)(1) of this section upon proper justification by the PHA of the necessity for the increase. [47 FR 34379, Aug. 9, 1982, as amended at 52 FR 19725, May 27, 1987] § 882.409 Contract rents at end of rehabilitation loan term. For a Contract where the initial Contract Rent was based upon a loan term shorter than 15 years, the Contract must provide for reduction of the Contract Rent effective with the rent for the month following the end of the term of the rehabilitation loan. The amount of the reduction will be the monthly cost of amortization of the rehabilitation loan. This reduction should result in a new Contract Rent equal to the base rent established pursuant to § 882.408(c) plus all subsequent adjustments. § 882.410 Rent adjustments. (a) Annual and special adjustments. (1) The Annual Adjustment Factors which are published annually by HUD (see Schedule C, 24 CFR part 888) will be utilized. On or after each annual anniversary date of the Contract, the Contract Rents may be adjusted in accordance with HUD procedures, effective for the month following the submittal by the Owner of a revised schedule of Contract Rents. The changes in rent as a result of the adjustment cannot exceed the amount established by multiplying the Annual Adjustment Factor by the base rents. However, if the amounts borrowed to finance the rehabilitation costs or to finance purchase of the property are subject to a variable rate or are otherwise renegotiable, Contract Rents may be adjusted in accordance with other procedures as prescribed by HUD, and specified in the Contract, provided that the adjusted Contract Rents cannot exceed the rents established by multiplying the Annual Adjustment Factor by the Contract Rents. Adjusted Contract Rents must then be examined in accordance with paragraph (b) of this section and may be adjusted accordingly. Contract Rents may be adjusted upward or downward, as may be appropriate. (2) Special Adjustments. (ii) The aforementioned special rent adjustments will only be approved if and to the extent the Owner clearly demonstrates that these general increases have caused increases in the owners operating costs which are not adequately compensated for by annual adjustments. (iii) The Owner must submit financial information to the PHA which clearly supports the increase. For Contracts of more than twenty units, the Owner must submit audited financial information. (b) Overall limitation. (Approved by the Office of Management and Budget under OMB approval number 2577-0196) [47 FR 34379, Aug. 9, 1982, as amended at 59 FR 47773, Sept. 16, 1994] § 882.411 Payments for vacancies. (a) Vacancies from execution of Contract to initial occupancy. (b) Vacancies after initial occupancy. (i) Immediately upon learning of the vacancy, has notified the PHA of the vacancy or prospective vacancy, and (ii) has taken and continues to take all feasible actions specified in paragraphs (a) (2) and (3) of this section. (2) If the Owner evicts an Eligible Family, the Owner will not be entitled to any payment under paragraph (b)(1) of this section unless the PHA determines that the Owner complied with all requirements of the Contract. (c) Prohibition of double compensation for vacancies. [47 FR 34379, Aug. 9, 1982, as amended at 63 FR 23855, Apr. 30, 1998] § 882.412 Subcontracting of owner services. (a) General. (b) PHA management. (1) The Housing Assistance Payments Contract with respect to the housing involved is administered by another PHA, or (2) Should another PHA not be available and willing to administer the Housing Assistance Payments Contract and no other management alternative exists, the HUD Field Office may authorize PHA management of units administered by the PHA in accordance with specified criteria. (3) Notwithstanding the provisions of § 882.408 (b) and (c), a PHA may not approve, without prior HUD approval, rents which exceed the appropriate Moderate Rehabilitation Fair Market Rent for a unit for which it provides the management functions under this section. § 882.413 Responsibility of the Family. (a) A family receiving housing assistance under this Program must fulfill all of its obligations under the Lease and Statement of Family Responsibility. (b) No family member may engage in drug-related criminal activity or violent criminal activity. Failure of the Family to meet its responsibilities under the Lease, the Statement of Family Responsibility, or this section shall constitute rounds for termination of assistance by the PHA. Should the PHA determine to terminate assistance to the Family, the provisions of § 882.514(f) must be followed. [55 FR 28546, July 11, 1990, as amended at 63 FR 23855, Apr. 30, 1998] § 882.414 Security and utility deposits. (a) 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 Total Tenant Payment 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 vacates the unit subject to the lease terms. The Family is expected to pay security deposits and utility deposits from its resources and/or other public or private sources. (b) If a Family vacates the unit, the Owner, subject to State and local law, may use the security deposit as reimbursement for any unpaid Tenant Rent 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) 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) If the security deposit is insufficient to reimburse the Owner for the unpaid Tenant Rent 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 the PHA for an amount not to exceed the lesser of: (1) The amount owed the Owner, or (2) Two month's 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 Tenant Rent due under the Lease and then to any other amounts owed. No reimbursement may be claimed for unpaid rent for the period after the Family vacates. [43 FR 61246, Dec. 29, 1978, as amended at 44 FR 31176, May 31, 1979; 49 FR 19945, May 10, 1984. Redesignated at 63 FR 23854, Apr. 30, 1998] Subpart E—Special Procedures for Moderate Rehabilitation—Program Development and Operation Source: 47 FR 34383, Aug. 9, 1982, unless otherwise noted. §§ 882.501-882.506 [Reserved] § 882.507 Completion of rehabilitation. (a) Notification of completion. (b) Evidence of completion. (1) A certificate of occupancy and/or other official approvals as required by the locality. (2) A certification by the Owner that: (i) The unit(s) has been completed in accordance with the requirements of the Agreement; (ii) The unit(s) is in good and tenantable condition; (iii) The unit(s) has been rehabilitated in accordance with the applicable zoning, building, housing and other codes, ordinances or regulations, as modified by any waivers obtained from the appropriate officials; (iv) The unit(s) are in compliance with part 35, subparts A, B, H, and R of this title. (iv) Any unit(s) built prior to 1973 are in compliance with § 882.404(c)(3) and § 882.404(c)(4). (v) If applicable, the Owner has complied with the provisions of the Agreement relating to the payment of not less than prevailing wage rates and that to the best of the Owner's knowledge and belief there are no claims of underpayment concerning alleged violations of said provisions of the Agreement. In the event there are any such pending claims to the knowledge of the Owner, PHA or HUD, the Owner will be required to place sufficient amount in escrow, as determined by the PHA or HUD, to assure such payments. (c) Actual cost and rehabilitation loan certifications. The PHA must review for completeness and accuracy and accept these certifications subject to the right of post audit. The PHA must then establish the Contract Rents as provided in § 882.408 which will be subject to reduction based on a post audit. (d) Review and inspections. (e) Acceptance. (2) If there are any items of delayed completion which are minor items or which are incomplete because of weather conditions, and in any case which do not preclude or affect occupancy, and all other requirements of the Agreement have been met, the unit(s) must be accepted. An escrow fund determined by the PHA to be sufficient to assure completion for items of delayed completion must be required, as well as a written agreement between the PHA and the Owner, to be included as an exhibit to the Contract, specifying the schedule for completion. If the items are not completed within the agreed time period, the PHA may terminate the Contract or exercise other rights under the Contract. (3) If other deficiencies exist, the PHA must determine whether and to what extent the deficiencies are correctable, and whether the Contract Rents should be reduced. The Owner must be notified of the PHA's decision. If the corrections required by the PHA are possible, the PHA and the Owner must enter into an agreement for the correction of the deficiencies within a specified time. If the deficiencies are corrected within the agreed period of time, the PHA must accept the unit(s). (4) Otherwise, the unit(s) may not be accepted, and the Owner must be notified with a statement of the reasons for nonacceptance. [47 FR 34383, Aug. 9, 1982, as amended at 52 FR 1895, Jan. 15, 1987; 64 FR 50227, Sept. 15, 1999] § 882.508 [Reserved] § 882.509 Overcrowded and under occupied units. If the PHA determines that a Contract unit is not decent, safe, and sanitary by reason of increase in Family size, or that a Contract unit is larger than appropriate for the size of the Family in occupancy, housing assistance payments with respect to the unit will not be abated; However, § 882.510 Adjustment of utility allowance. The PHA must determine, at least annually, whether an adjustment is required in the Utility Allowance applicable to the dwelling units in the Program, on grounds of changes in utility rates or other change of general applicability to all units in the Program. The PHA may also establish a separate schedule of allowances for each building of 20 or more assisted units, based upon at least one year's actual utility consumption data following rehabilitation under the Program. If the PHA determines that an adjustment should be made in its Schedule of Allowances or if it establishes a separate schedule for a building which will change the allowance, the PHA must then determine the amounts of adjustments to be made in the amount of rent to be paid by affected Families and the amount of housing assistance payments and must notify the Owners and Families accordingly. Any adjustment to the Allowance must be implemented no later than at the Family's next reexamination or at lease renewal, whichever is earlier. [47 FR 34383, Aug. 9, 1982, as amended at 49 FR 19946, May 10, 1984] § 882.511 Lease and termination of tenancy. Link to an amendment published at 91 FR 9453, Feb. 26, 2026. Link to a delay of the above amendment published at 91 FR 12301, Mar. 13, 2026. (a) Lease. (2) The lease must provide that drug-related criminal activity engaged in on or near the premises by any tenant, household member, or guest, and any such activity engaged in on the premises by any other person under the tenant's control is grounds for the owner to terminate tenancy. In addition, the lease must provide that the owner may terminate the tenancy of a family when the owner determines that a household member is illegally using a drug or when the owner determines that a pattern of illegal use of a drug interferes with the health, safety, or right to peaceful enjoyment of the premises by other residents. (b) Applicability. (c) Grounds for termination of or refusal to renew the lease. (1) Serious or repeated violation of the terms and conditions of the lease. (2) Violation of applicable Federal, State or local law. (3) Other good cause. (d) Notice of termination of tenancy. (i) When termination is based on failure to pay rent, the date of termination must be not less than five working days after the Family's receipt of the notice; or, if the Secretary determines that tenants must be provided with adequate notice to secure Federal funding that is available due to a Presidential declaration of a national emergency, the date of termination must be not less than 30 days after the Family's receipt of the notice. (ii) When termination is based on serious or repeated violation of the terms and conditions of the lease or on violation of applicable Federal, State or local law, the date of termination must be in accordance with State and local law. (iii) When termination is based on other good cause, the date of termination must be no earlier than 30 days after the notice is served on the Family. (2) The notice of termination must: (i) State the reasons for such termination with enough specificity to enable the Family to prepare a defense. (ii) Advise the Family that if a judicial proceeding for eviction is instituted, the tenant may present a defense in that proceeding. (iii) Be served on the Family by sending a prepaid first class properly addressed letter (return receipt requested) to the tenant at the dwelling unit or by delivering a copy of the notice to the dwelling unit. (iv) Include such information to tenants during a national emergency, as required by the Secretary. (3) Substitution of State and local requirements. (e) Eviction. (f) Lease. (g) In actions or potential actions to terminate tenancy, the owner shall follow 24 CFR part 5, subpart L (Protection for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking). [47 FR 34383, Aug. 9, 1982, as amended at 63 FR 23855, Apr. 30, 1998; 66 FR 28797, May 24, 2001; 73 FR 72342, Nov. 28, 2008; 75 FR 66261, Oct. 27, 2010; 81 FR 80812, Nov. 16, 2016; 86 FR 55701, Oct. 7, 2021] § 882.512 Reduction of number of units covered by contract. (a) Limitation on leasing to ineligible Families. (b) Reduction for failure to lease to Eligible Families. (c) Restoration. (1) The PHA determines that the restoration is justified by demand, (2) The Owner otherwise has a record of compliance with obligations under the Contract, and (3) Contract authority is available. § 882.513 Public notice to low-income families; waiting list. (a) Public notice to low-income Families. (i) The notice must state that assistance under this Program will be available only in specified units which have been rehabilitated under the Program. (ii) The notice must be made in accordance with the PHA's HUD-approved application and with the HUD guidelines for fair housing requiring the use of the equal housing opportunity logotype, statement and slogan. (b) Waiting list. § 882.514 Family participation. (a) Initial determination of family eligibility. (2) PHA records on applicants and Families selected to participate must be maintained so as to provide HUD with racial, gender, and ethnic data. (b) Selection of Families for participation. (1) There is an adequate pool of applicants who are likely to qualify for a Federal preference and (2) It is unlikely that, on the basis of the PHA's system for applying the Federal preferences, the preference or preferences that the applicant claims, and the preferences claimed by applicants on the waiting list, the applicant would qualify for assistance before other applicants on the waiting list. (c) Owner selection of Families. (d) Briefing of Families. (i) Family and Owner responsibilities under the Lease and Contract; (ii) Significant aspects of the applicable State and local laws; (iii) Significant aspects of Federal, State and local fair housing laws; (iv) The fact that the subsidy is tied to the unit and the Family must occupy a unit rehabilitated under the Program; (v) The Family's options under the Program should the Family be required to move due to an increase or decrease in Family size; and (vi) The advisability and availability of blood lead level screening for children under 6 years of age and HUD's lead-based paint requirements in part 35, subparts A, B, H, and R of this title. (2) For all Families to be temporarily relocated, the briefing must include a discussion of the relocation policies. (e) Continued participation of Family when Contract is terminated. (f) Families determined by the PHA to be ineligible. (Approved by the Office of Management and Budget under control number 2502-0123) [47 FR 34383, Aug. 9, 1982] Editorial Note: For Federal Register www.govinfo.gov. § 882.515 Reexamination of family income and composition. (a) Regular reexaminations. (b) Interim reexaminations. (2) The PHA may decline to conduct an interim reexamination of family income if the PHA estimates the family's adjusted income will decrease by an amount that is less than ten percent of the family's annual adjusted income (or a lower amount established by HUD through notice), or a lower threshold established by the PHA. (3) The PHA must conduct an interim reexamination of family income when the PHA becomes aware that the family's adjusted income (§ 5.611 of this title) has changed by an amount that the PHA estimates will result in an increase of ten percent or more in annual adjusted income or such other amount established by HUD through notice, except: (i) The PHA may not consider any increase in the earned income of the family when estimating or calculating whether the family's adjusted income has increased, unless the family has previously received an interim reduction under paragraph (c)(1) of this section during the certification period; and (ii) The PHA may choose not to conduct an interim reexamination in the last three months of a certification period. (4)(i) If the family has reported a change in family income or composition in a timely manner according to the PHA's policies, the PHA must provide the family with 30 days advance notice of any increase in the Total Tenant Payment and Tenant Rent, and such increases will be effective the first day of the month beginning after the end of that 30-day period. Total Tenant Payment and Tenant Rent decreases will be effective on the first day of the first month after the date of the actual change leading to the interim reexamination of family income. (ii) If the family has failed to report a change in family income or composition in a timely manner according to the PHA's policies, PHAs must implement any resulting Total Tenant Payment and Tenant Rent increases retroactively to the first of the month following the date of the change leading to the interim reexamination of family income. Any resulting Total Tenant Payment and Tenant Rent decrease must be implemented no later than the first rent period following completion of the reexamination. However, a PHA may apply a Total Tenant Payment and Tenant Rent decrease retroactively at the discretion of the PHA, in accordance with the conditions established by the PHA in the administrative plan and subject to paragraph (c)(4)(iii) of this section. (iii) A retroactive Total Tenant Payment and Tenant Rent decrease may not be applied prior to the later of the first of the month following: (A) The date of the change leading to the interim reexamination of family income; or (B) The effective date of the family's most recent previous interim or annual reexamination (or initial examination if that was the family's last examination). (5) The PHA must adopt policies consistent with this section prescribing how to determine the effective date of a change in the housing assistance payment resulting from an interim redetermination. (c) Obligation to supply information. (d) Continuation of housing assistance payments. (e) Family reporting of change. (f) Accuracy of family income data. (1) The PHA must take any corrective action necessary to credit or repay a family if the family has been overcharged for their Tenant Rent or Total Tenant Payment as a result of an error (including a de minimis error) in the income determination. Families will not be required to repay the PHA in instances where the PHA has miscalculated income resulting in a family being undercharged for Tenant Rent or Total Tenant Payment. (2) HUD may revise the amount of de minimis error in this paragraph (f) through a notice published in the Federal Register [56 FR 7539, Feb. 22, 1991, as amended at 60 FR 14844, Mar. 20, 1995; 61 FR 11118, Mar. 18, 1996; 61 FR 13625, Mar. 27, 1996; 63 FR 23855, Apr. 30, 1998; 88 FR 9667, Feb. 14, 2023] § 882.516 Maintenance, operation, and inspections. (a) Maintenance and operation. (b) Periodic inspection. (c) Units with health and safety hazards. (d) PHA management. (e) Periodic reviews. [47 FR 34383, Aug. 9, 1982, as amended at 53 FR 8065, Mar. 11, 1988; 80 FR 75941, Dec. 7, 2015; 88 FR 30499, May 11, 2023] § 882.517 HUD review of contract compliance. HUD will review program operations at such intervals as it deems necessary to ensure that the Owner and the PHA are in full compliance with the terms and conditions of the Contract and the ACC. Equal Opportunity review may be conducted with the scheduled HUD review or at any time deemed appropriate by HUD. [43 FR 61246, Dec. 29, 1978. Redesignated at 63 FR 23854, Apr. 30, 1998] § 882.518 Denial of admission and termination of assistance for criminals and alcohol abusers. (a) Requirement to deny admission Prohibiting admission of drug criminals. (A) The household member who engaged in drug-related criminal activity and whose tenancy was terminated has successfully completed an approved supervised drug rehabilitation program, or (B) The circumstances leading to the termination of tenancy no longer exist (for example, the criminal household member has died or is imprisoned). (ii) The PHA must establish standards that permanently prohibit admission to the program if any household member has ever been convicted of drug-related criminal activity for manufacture or production of methamphetamine on the premises of federally assisted housing. (iii) The PHA must establish standards that prohibit admission of a household to the program if the PHA determines that any household member is currently engaging in illegal use of a drug or that it has reasonable cause to believe that a household member's pattern of illegal use of a drug, as defined in § 5.100 of this title, may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents. (2) Prohibiting admission of sex offenders. (b) Authority to deny admission Prohibiting admission of other criminals. (i) Drug-related criminal activity; (ii) Violent criminal activity; (iii) Other criminal activity which may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents; (iv) Other criminal activity which may threaten the health or safety of the owner or any employee, contractor, subcontractor or agent of the owner who is involved in the owner's housing operations. (2) Reasonable time. (3) Sufficient evidence. (i) The PHA would have “ sufficient evidence (ii) For purposes of this section, a household member is “currently engaged in” criminal activity if the person has engaged in the behavior recently enough to justify a reasonable belief that the behavior is current. (4) Prohibiting admission of alcohol abusers. (c) Terminating assistance Terminating assistance for drug criminals. (ii) The PHA must immediately terminate assistance for a family under the program if the PHA determines that any member of the household has ever been convicted of drug-related criminal activity for manufacture or production of methamphetamine on the premises of federally assisted housing. (2) Terminating assistance for other criminals. (ii) The PHA may terminate assistance for a family if the PHA determines that a member of the household is: (A) Fleeing to avoid prosecution, or custody or confinement after conviction, for a crime, or attempt to commit a crime, that is a felony under the laws of the place from which the individual flees, or that, in the case of the State of New Jersey, is a high misdemeanor; or (B) Violating a condition of probation or parole imposed under Federal or State law. (3) Evidence of criminal activity. (ii) See part 5, subpart J, of this title for provisions concerning access to criminal records. (4) Terminating assistance for alcohol abusers. [66 FR 28797, May 24, 2001] Subparts F-G [Reserved] Subpart H—Section 8 Moderate Rehabilitation Single Room Occupancy Program for Homeless Individuals Source: 61 FR 48057, Sept. 11, 1996, unless otherwise noted. § 882.801 Purpose. The purpose of the Section 8 Moderate Rehabilitation Program for Single Room Occupancy (SRO) Dwellings for Homeless Individuals is to provide rental assistance for homeless individuals in rehabilitated SRO housing. The Section 8 assistance is in the form of rental assistance payments. These payments equal the rent for the unit, including utilities, minus the portion of the rent payable by the tenant under the U.S. Housing Act of 1937 (42 U.S.C. 1437 et seq. § 882.802 Definitions. In addition to the definitions set forth in 24 CFR part 5 and § 882.102 (except for the definition of “ Single Room Occupancy (SRO) Housing Agreement to enter into housing assistance payments contract (Agreement). Applicant. Covered housing provider. Eligible individual (“individual”). Homeless individual. McKinney Act. et seq. Moderate rehabilitation. Private nonprofit organization. (1) Have a voluntary board; (2) Have a functioning accounting system that is operated in accordance with generally accepted accounting principles, or designate an entity that will maintain a functioning accounting system for the organization in accordance with generally accepted accounting principles; and (3) Practice nondiscrimination in the provision of assistance. Single room occupancy (SRO) housing. Statement of individual responsibility. [61 FR 48057, Sept. 11, 1996, as amended at 63 FR 23855, Apr. 30, 1998; 81 FR 80812, Nov. 16, 2016] § 882.803 Project eligibility and other requirements. (a) Eligible and ineligible properties. (2) Housing is not eligible for assistance under this program if it is receiving Federal funding for rental assistance or operating costs under other HUD programs. (3) Nursing homes and related facilities such as intermediate care or board and care homes; units within the grounds of penal, reformatory, medical, mental, and similar public or private institutions; and facilities providing continual psychiatric, medical, or nursing services are not eligible for assistance under this program. (4) No Section 8 assistance may be provided with respect to any unit occupied by an owner. (5) Housing located in the Coastal Barrier Resources System designated under the Coastal Barriers Resources Act is not eligible. (6) Single-sex facilities are allowable under this program, provided that the HA determines that because of the physical limitations or configuration of the facility, considerations of personal privacy require that the facility (or parts of the facility) be available only to members of a single sex. (b)(1) Physical condition standards. (2) Site standards. (ii) The site must be suitable from the standpoint of facilitating and furthering full compliance with the applicable provisions of title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d-2000d-4), title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601-19), E.O. 11063 (as amended by E.O. 12259; 3 CFR, 1959-1963 Comp., p. 652 and 3 CFR, 1980 Comp., p. 307), and HUD regulations issued pursuant thereto. (iii) The site must be accessible to social, recreational, educational, commercial, and health facilities, and other appropriate municipal facilities and services. (c) Financing. (d) Relocation. (e) HA-owned housing. (i) The unit is not ineligible under § 882.803(a); and (ii) HUD approves the base and contract rent calculations prior to execution of the Agreement and prior to execution of the HAP contract. (2) The HA as owner is subject to the same program requirements that apply to other owners in the program. [61 FR 48057, Sept. 11, 1996, as amended at 63 FR 46579, Sept. 1, 1998; 64 FR 50227, Sept. 15, 1999] § 882.804 Other Federal requirements. (a) Participation in this program requires compliance with the Federal requirements set forth in 24 CFR 5.105, with the Americans with Disabilities Act (42 U.S.C. 12101 et seq. (b) In order to facilitate emergency transfers for victims of domestic violence, dating violence, sexual assault, or stalking, covered housing providers have discretion to adopt and modify any existing admission preferences or transfer waitlist priorities for victims of domestic violence, dating violence, sexual assault, or stalking. (c) Covered housing providers must develop and implement an emergency transfer plan that meets the requirements in 24 CFR 5.2005(e), and when a safe unit is not immediately available for a victim of domestic violence, dating violence, sexual assault, and stalking who qualifies for an emergency transfer, covered housing providers must, at a minimum: (1) Review the covered housing provider's existing inventory of units and determine when the next vacant unit may be available; and (2) Provide a listing of nearby HUD subsidized rental properties, with or without preference for persons of domestic violence, dating violence, sexual assault, or stalking, and contact information for the local HUD field office. (d) Each year, the covered housing provider must submit to HUD data on all emergency transfers requested under 24 CFR 5.2005(e), pertaining to victims of domestic violence, dating violence, sexual assault, or stalking, including data on the outcomes of such requests. (e) For agreements covering nine or more assisted units, the following requirements for labor standards apply: (1) Not less than the wages prevailing in the locality, as determined by the Secretary of Labor under the Davis-Bacon Act (40 U.S.C. 276a through 276a-5), must be paid to all laborers and mechanics employed in the development of the project, other than volunteers under the conditions set out in 24 CFR part 70; (2) The employment of laborers and mechanics is subject to the provisions of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333); and (3) HAs, owners, contractors, and subcontractors must comply with all related rules, regulations, and requirements. (f) The environmental review requirements of 24 CFR part 58, implementing the National Environmental Policy Act and related environmental laws and authorities, apply to this program. [61 FR 48057, Sept. 11, 1996, as amended at 81 FR 80812, Nov. 16, 2016] § 882.805 HA application process, ACC execution, and pre-rehabilitation activities. (a) Review. Federal Register (b) ACC Execution. (i) Estimates of Required Annual Contributions, Forms HUD-52672 and HUD-52673; (ii) Administrative Plan, which should include: (A) Procedures for tenant outreach; (B) A policy governing temporary relocation; and (C) A mechanism to monitor the provision of supportive services. (iii) Proposed Schedule of Allowances for Tenant-Furnished Utilities and Other Services, Form HUD-52667, with a justification of the amounts proposed; (iv) If applicable, proposed variations to the acceptability criteria of the Housing Quality Standards (see § 882.803(b)); and (v) The fire and building code applicable to each structure. (2) After HUD has approved the HA's application, the review and comment requirements of 24 CFR part 791 have been complied with, and the HA has submitted (and HUD has approved) the items required by paragraph (b)(1) of this section, HUD and the HA must execute the ACC in the form prescribed by HUD. The initial term of the ACC must be 11 years. This term allows one year to rehabilitate the units and place them under a 10-year HAP contract. The ACC must give HUD the option to renew the ACC for an additional 10 years. (3) Section 882.403(a) (Maximum Total ACC Commitments) applies to this program. (4) Section 882.403(b) (Project account) applies to this program. (c)(1) If an owner is proposing to accomplish at least $3000 per unit of rehabilitation by including work to make the unit(s) accessible to a person with disabilities occupying the unit(s) or expected to occupy the unit(s), the PHA may approve such units not to exceed 5 percent of the units under its Program, provided that accessible units are necessary to meet the requirements of 24 CFR part 8, which implements section 504 of the Rehabilitation Act of 1973. The rehabilitation must make the unit(s), and access and egress to the unit(s), barrier-free with respect to the disability of the individual in residence or expected to be in residence. (2) The PHA must take the applications and determine the eligibility of all tenants residing in the approved units who wish to apply for the Program. After eligibility of all the tenants has been determined, the Owner must be informed of any adjustment in the number of units to be assisted. In order to make the most efficient use of housing assistance funds, an Agreement may not be entered into covering any unit occupied by a family which is not eligible to receive housing assistance payments. Therefore, the number of units approved by the PHA for a particular proposal must be adjusted to exclude any unit(s) determined by the PHA to be occupied by a family not eligible to receive housing assistance payments. Eligible Families must also be briefed at this stage as to their rights and responsibilities under the Program. (3) Should the Owner agree with the assessment of the PHA as to the work that must be accomplished, the preliminary feasibility of the proposal, and the number of units to be assisted, the Owner, with the assistance of the PHA where necessary, must prepare detailed work write-ups including specifications and plans (where necessary) so that a cost estimate may be prepared. The work write-up will describe how the deficiencies eligible for amortization through the Contract Rents are to be corrected including minimum acceptable levels of workmanship and materials. From this work write-up, the Owner, with the assistance of the PHA, must prepare a cost estimate for the accomplishment of all specified items. (4) The owner is responsible for selecting a competent contractor to undertake the rehabilitation. The PHA must propose opportunities for minority contractors to participate in the program. (5) The PHA must discuss with the Owner the various financing options available. The terms of the financing must be approved by the PHA in accordance with standards prescribed by HUD. (6) Before execution of the Agreement, the HA must: (i)(A) Inspect the structure to determine the specific work items that need to be accomplished to bring the units to be assisted up to the Housing Quality Standards (see § 882.803(b)) or other standards approved by HUD; (B) Conduct a feasibility analysis, and determine whether cost-effective energy conserving improvements can be added; (C) Ensure that the owner prepares the work write-ups and cost estimates required by paragraph (c)(3) of this section; (D) Determine initial base rents and contract rents; (ii) Assure that the owner has selected a contractor in accordance with paragraph (c)(4) of this section; (iii) After the financing and a contractor are obtained, determine whether the costs can be covered by initial contract rents, computed in accordance with paragraph (d) of this section; and, if a structure contains more than 50 units to be assisted, submit the base rent and contract rent calculations to the appropriate HUD field office for review and approval in sufficient time for execution of the Agreement in a timely manner; (iv) Obtain firm commitments to provide necessary supportive services; (v) Obtain firm commitments for other resources to be provided; (vi) Determine that the $3,000 minimum amount of work requirement and other requirements in paragraph (c)(1) of this section are met; (vii) Determine eligibility of current tenants, and select the units to be assisted, in accordance with paragraph (c)(2) of this section; (viii) Comply with the financing requirements in paragraph (c)(5) of this section; (ix) Assure compliance with all other applicable requirements of this subpart; and (x) If the HA determines that any structure proposed in its application is infeasible, or the HA proposes to select a different structure for any other reason, the HA must submit information for the proposed alternative structure to HUD for review and approval. HUD will rate the proposed structure in accordance with procedures in the applicable notice of funding availability. The HA may not proceed with processing for the proposed structure or execute an Agreement until HUD notifies the HA that HUD has approved the proposed alternative structure and that all requirements have been met. (d) Initial contract rents. (1)(i) In determining the monthly cost of a rehabilitation loan, in accordance with § 882.408(c)(2), a loan term of a least 10 years (instead of 15 years) may be used. The exception in § 882.408(c)(2)(iii) for using the actual loan term if the total amount of the rehabilitation is less than $15,000 continues to apply. In addition, the cost of the rehabilitation that may be included for the purpose of calculating the amount of the initial contract rent for any unit must not exceed the lower of: (A) The projected cost of rehabilitation; or (B) The per unit cost limitation that is established by Federal Register Federal Register (ii) If the Federal Housing Administration (FHA) believes that high construction costs warrant an increase in the per unit cost limitation in paragraph (d)(1)(i)(B) of this section, the HA must demonstrate to HUD's satisfaction that a higher average per unit amount is necessary to conduct this program, and that every appropriate step has been taken to contain the amount of the rehabilitation within the published per unit cost limitation established at that time, plus the cost of the required fire and safety improvements. These higher amounts will be determined as follows: (A) HUD may approve a higher per unit amount up to, but not to exceed, an amount computed by multiplying the HUD-approved High Cost Percentage for Base Cities (used for computing FHA high cost area adjustments) for the area, by the current published cost limitation plus the cost of the required fire and safety improvements. (B) HUD may, on a structure-by-structure basis, increase the level approved in paragraph (d)(1)(i) of this section to up to an amount computed by multiplying 2.4 by the current published cost limitation plus the cost of the required fire and safety improvements. (2) In approving changes to initial contract rents during rehabilitation in accordance with § 882.408(d), the revised initial contract rents may not reflect an average per unit rehabilitation cost that exceeds the limitation specified in paragraph (d)(1) of this section. (3) If the structure contains four or fewer SRO units, the Fair Market Rent for that size structure (the Fair Market Rent for a 1-, 2-, 3-, or 4-bedroom unit, as applicable) must be used to determine the Fair Market Rent limitation instead of using the separate Fair Market Rent for each SRO unit. To determine the Fair Market Rent limitation for each SRO unit, the Fair Market Rent for the structure must be apportioned equally to each SRO unit. (4) Contract rents must not include the costs of providing supportive services, transportation, furniture, or other nonhousing costs, as determined by HUD. SRO program assistance may be used for efficiency units selected for rehabilitation under this program, but the gross rent (contract rent plus any Utility Allowance) for these units will be no higher than for SRO units (i.e., 75 percent of the 0-bedroom Moderate Rehabilitation Fair Market Rent). (Approved by the Office of Management and Budget under control number 2506-0131) [61 FR 48057, Sept. 11, 1996, as amended at 63 FR 23855, Apr. 30, 1998] § 882.806 Agreement to enter into housing assistance payments contract. (a) Rehabilitation period Agreement. (2) Timely performance of work. (ii) The Agreement must provide that the work must be completed and the contract executed within 12 months of execution of the ACC. HUD may reduce the number of units or the amount of the annual contribution commitment if, in HUD's determination, the HA fails to demonstrate a good faith effort to adhere to this schedule or if other reasons justify reducing the number of units. (3) Inspections. (4) Changes. (ii) Contract rents may not be increased except in accordance with §§ 882.408(d) and 882.805(d)(2). (b) Completion of rehabilitation Notification of completion. (2) Evidence of completion. (3) Actual cost and rehabilitation loan certifications. (4) Review and inspections. (5) Acceptance. (Approved by the Office of Management and Budget under control number 2502-0367) [61 FR 48057, Sept. 11, 1996, as amended at 63 FR 23856, Apr. 30, 1998] § 882.807 Housing assistance payments contract. (a) Time of execution. (b) Term of contract. (c) Changes in contract rents from agreement. (d) Unleased unit(s). (e) Contract rents at end of rehabilitation loan term. (Approved by the Office of Management and Budget under control number 2502-0367) [61 FR 48057, Sept. 11, 1996, as amended at 63 FR 23856, Apr. 30, 1998] § 882.808 Management. (a) Outreach to homeless individuals and appropriate organizations. (2) Additional outreach concerns. (3) First priority for homeless individuals. (b) Individual participation Initial determination of individual eligibility. (2) Owner selection of individuals. (3) Briefing of individuals. (4) Continued participation of individual when contract is terminated. (5) Individuals determined by the HA to be ineligible. (c) Lease. (d) Security and utility deposits. (e) Rent adjustments. (f) Payments for vacancies. (g) Subcontracting of owner services. (h) Responsibility of the individual. (i) Reexamination of individual income Regular reexaminations. (2) Interim reexaminations. (3) Continuation of Housing Assistance Payments. (4) Individual reporting of change. (5) Accuracy of family income data. (A) The PHA must take any corrective action necessary to credit or repay an individual if the individual has been overcharged for their Tenant Rent or Total Tenant Payment as a result of an error (including a de minimis error) in the income determination. Individuals will not be required to repay the PHA in instances where the PHA has miscalculated income resulting in an individual being undercharged for Tenant Rent or Total Tenant Payment. (B) HUD may revise the amount of de minimis error in this paragraph (i)(5) through a rulemaking published in the Federal Register (j) Overcrowded units. (k) Adjustment of utility allowance. (l) Termination of tenancy. (m) Reduction of number of units covered by contract. (n) Maintenance, operation, and inspections. (o) HUD review of contract compliance. (p) Records and reports. (q) Participation of homeless individuals. (2) To the maximum extent practicable, each approved applicant must involve homeless individuals and families, through employment, volunteer services, or otherwise, in rehabilitating and operating facilities assisted under this subpart, and in providing services for occupants of such facilities. (Approved by the Office of Management and Budget under control number 2506-0131) [61 FR 48057, Sept. 11, 1996, as amended at 63 FR 23857, Apr. 30, 1998; 88 FR 9668, Feb. 14, 2023] § 882.809 Waivers. Section 5.405(b) of this title does not apply to this program. § 882.810 Displacement, relocation, and acquisition. (a) Minimizing displacement. (2) Whenever a building/complex is rehabilitated, and some but not all of the rehabilitated units will be assisted upon completion of the rehabilitation, the relocation requirements described in this section apply to the occupants of each rehabilitated unit, whether or not Section 8 assistance will be provided for the unit. (b) Temporary relocation. (1) Reimbursement for all reasonable out-of-pocket expenses incurred in connection with the temporary relocation; (2) Appropriate advisory services, including reasonable advance written notice of: (i) The date and approximate duration of the temporary relocation; (ii) The location of the suitable, decent, safe, and sanitary dwelling to be made available for the temporary period; (iii) The terms and conditions under which the tenant may lease and occupy a suitable, decent, safe, and sanitary dwelling in the project upon completion; and (iv) The assistance required under paragraph (b)(1) of this section. (c) Relocation assistance for displaced persons. (d) Real property acquisition requirements. (e) Appeals. (f) Responsibility of HA. (2) The cost of required relocation assistance is an eligible project cost in the same manner and to the same extent as other project costs. Such costs may be paid for with local public funds or funds available from other sources. The cost of HA advisory services for temporary relocation of tenants to be assisted under the program also may be paid from preliminary administrative funds. (3) The HA must maintain records in sufficient detail to demonstrate compliance with the provisions of this section. The HA must maintain data on the racial, ethnic, gender, and disability status of displaced persons. (g) Definition of displaced person. displaced person displaced person (i) A person who moves permanently from the real property after receiving notice requiring such move, if the move occurs on or after the date the owner submits to the HA the owner proposal that is later approved; (ii) A person, including a person who moves from the property before the date the owner submits the proposal to the HA, if the HA or HUD determines that the displacement resulted directly from acquisition, rehabilitation, or demolition for the assisted project; or (iii) A tenant-occupant of a dwelling unit who moves from the building/complex permanently after the execution of the Agreement between the owner and the HA (or, for projects assisted under subpart H of this part, after the “initiation of negotiations” (see paragraph (h) of this section)), if the move occurs before the tenant is provided a written notice offering him or her the opportunity to lease and occupy a suitable, decent, safe, and sanitary dwelling in the same building/complex, under reasonable terms and conditions, upon its completion. Such reasonable terms and conditions must include a monthly rent and estimated average monthly utility costs that do not exceed the greater of: (A) The tenant's monthly rent before the execution of the agreement and estimated average monthly utility costs; or (B) Thirty percent of gross household income. (C) For projects assisted under subpart H of this part, the amount cannot exceed the greater of the tenant's monthly rent before the “initiation of negotiations” and estimated average monthly utility costs; or (if the tenant is low-income) the total tenant payment, as determined under 24 CFR 5.613, or (if the tenant is not low-income) 30 percent of gross household income; or (iv) A tenant-occupant of a dwelling, who is required to relocate temporarily, but does not return to the building/complex, if either: (A) The tenant is not offered payment for all reasonable out-of-pocket expenses incurred in connection with the temporary relocation; or (B) Other conditions of the temporary relocation are not reasonable; or (v) A tenant-occupant of a dwelling who moves from the building/complex permanently after he or she has been required to move to another dwelling unit in the building/complex, if either: (A) The tenant is not offered reimbursement for all reasonable out-of-pocket expenses incurred in connection with the move; or (B) Other conditions of the move are not reasonable. (2) Notwithstanding the provisions of paragraph (g)(1) of this section, a person does not qualify as a displaced person (and is not eligible for relocation assistance under the URA or this section), if: (i) The person has been evicted for serious or repeated violation of the terms and conditions of the lease or occupancy agreement, violation of applicable Federal, State, or local law, or other good cause, and the HA determines that the eviction was not undertaken for the purpose of evading the obligation to provide relocation assistance; (ii) The person moved into the property after the submission of the preliminary proposal (or application, if there is no preliminary proposal), and before signing a lease and commencing occupancy, received written notice of the project and its possible impact on the person (e.g., the person may be displaced, temporarily relocated, or suffer a rent increase) and the fact that the person would not qualify as a displaced person (or for any assistance provided under this section) as a result of the project; (iii) The person is ineligible under 49 CFR 24.2(g)(2); or (iv) HUD determines that the person was not displaced as a direct result of acquisition, rehabilitation, or demolition for the project. (3) The HA may request, at any time, HUD's determination of whether a displacement is or would be covered by this section. (h) Definition of initiation of negotiations. initiation of negotiations (Approved by the Office of Management and Budget under OMB control number 2506-0121) [61 FR 48056, Sept. 11, 1996. Redesignated and amended at 63 FR 23857, Apr. 30, 1998]