24 C.F.R. § 245.325

Notification of action on request for increase

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(a) When processing a request for an increase in maximum permissible rents, HUD shall take into consideration reasonably anticipated increases in project operating costs that will occur (1) within 12 months of the date of submission of materials to HUD under § 245.315(a) (profit and loss approach) or (2) within 12 months of the anticipated effective date of the proposed rent increase for submissions under § 245.315(b) (forward-budget approach).

(b) After HUD has considered the request for an increase in rents, has found that it meets the requirements of § 245.320, and has made its determination to approve, adjust upward or downward, or disapprove the request, it will furnish the mortgagor with a written statement of the reasons for approval, adjustment upward or downward, or disapproval. The mortgagor must make the reasons for approval, adjustment, or disapproval known to the tenants, by service of notice on them as provided in § 245.15.

Notes of Decisions
Cited in 6 cases, 1994–2018 · leading case: St. Christopher Assocs., L.P. v. United States, 511 F.3d 1376 (Fed. Cir. 2008).
St. Christopher Assocs., L.P. v. United States, 511 F.3d 1376 (Fed. Cir. 2008). · cites it 4× “While we agree that an express obligation may be found in 24 C.F.R. § 245.325 (b) and HUD Handbook § 7-25, we find no such obligation in any of the other provisions.”
St. Christopher Assocs., L.P. v. United States, 75 Fed. Cl. 1 (Fed. Cl. 2006). · cites it 6× “1(b)(1997)); 4 24 C.F.R. § 245.325 (b); 5 and HUD Handbook 4350.”
Crest A Apts. Ltd. II v. United States, 52 Fed. Cl. 607 (Fed. Cl. 2002). · cites it 2× “24 C.F.R. § 245.325 (a). After HUD has considered a rent increase request, it “will furnish the mortgagor with a written statement the reasons for approval, adjustment upward or downward, or disapproval.”
Christopher Vill., Ltd. P'ship v. Retsinas, 190 F.3d 310 (5th Cir. 1999). “See 24 C.F.R. § 245.325 . Since most tenants of low income housing are on welfare and cannot afford to pay the full contract rental price, Congress created the Section 8 housing program to subsidize their rent.”
Reynolds Assocs. v. United States, 31 Fed. Cl. 335 (Fed. Cl. 1994). “24 CFR § 245.325 (b). This section references the method of notice required, but no time period is set forth.”
Peterson Indus. Depot, Inc. v. United States (Fed. Cl. 2018). “3d at 1384 (holding that the court “cannot conclude that the Regulatory Agreement incorporates 24 C.F.R. § 245.325 (b) or HUD Handbook section 7–25 by implication” because “there is no reference whatsoever in the Regulatory Agreement to the implementing regulations or to the HUD…”
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