24 C.F.R. § 886.120

Responsibility for contract administration

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(a) HUD is responsible for administration of the Contract. HUD may contract with another entity for the performance of some or all of its Contract administration functions.

(b) The Contract shall contain a provision to the effect (1) that if HUD determines that the Owner is not in compliance under the Contract, HUD shall notify the Owner of the actions required to be taken to restore compliance and of the remedies to be applied by HUD including abatement of Housing Assistance Payments and recovery of overpayments, where appropriate; and (2) that if he fails to comply, HUD has the right to terminate the Contract or to take other corrective action. A default under the Regulatory Agreement shall be treated as non-compliance under the Contract.

Notes of Decisions
Cited in 5 cases, 1980–2014 · leading case: Doris Holbrook v. Henry C. Pitt, & Third-Party v. Sec'y, United States Dep't of Hous. & Urban Dev., Third- Party, 643 F.2d 1261 (3rd Cir. 1981).
Doris Holbrook v. Henry C. Pitt, & Third-Party v. Sec'y, United States Dep't of Hous. & Urban Dev., Third- Party, 643 F.2d 1261 (3rd Cir. 1981). “30 Therefore, by accepting deficient computations from the owners, we believe HUD breached its obligation to properly administer the Contracts, see 24 C.F.R. § 886.120 (a) (1980), and its coordinate responsibility to third-party beneficiaries to fulfill the purposes of the…”
Multi-Fam. Mgmt., Inc. v. Hancock, 664 A.2d 1210 (D.C. 1995). · cites it 2× “See 24 CFR 886.120, 886.123. Allowing HUD to be impleaded without its consent into every local landlord-tenant dispute, however, would dissipate the agency's enforcement resources, divesting the agency of the authority to set priorities for determining whether and when to…”
Normandy Apts., Ltd. v. United States, 116 Fed. Cl. 431 (Fed. Cl. 2014). “320; see 24 C.F.R. § 886.120 . 8 . We posed the following questions: 1.”
Ressler v. Landrieu, 502 F. Supp. 324 (D. Alaska 1980). “The court rejected the argument that the statutory power of tenant selection given to the project owner was inconsistent with the existence of a “legal entitlement” on the part of the applicant, noting that project owners were vested with limited discretion in selecting tenants,…”
Normandy Apts., Ltd. v. United States (Fed. Cl. 2014). “320 ; see 24 C.F.R. § 886.120 . 6 the assistance payments made by HUD to Normandy on behalf of those low income tenants would stop on November 1, 2007.”
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