(a) Maintain housing free of health and safety hazards. The Owner shall maintain and operate the project so as to be compliant with 24 CFR part 5, subpart G, and the Owner shall provide all the services, maintenance, and utilities which the Owner agrees to provide under the contract and the lease. Failure to do so shall be considered a material default under the contract and Regulatory Agreement, if any.
(b) HUD inspection. Prior to execution of the contract, HUD shall inspect (or cause to be inspected) each proposed contract unit and related facilities to ensure that they comply with the requirements at 24 CFR part 5, subpart G.
(c) Owner and family inspection. Prior to occupancy of any vacant unit by a Family, the Owner and the Family shall inspect the unit. The Owner shall certify that they have inspected the unit, and the owner shall certify that the unit is compliant with 24 CFR part 5, subpart G. Copies of these reports shall be kept on file by the owner for at least 3 years.
(d) Periodic inspections. HUD will inspect the project (or cause it to be inspected) in accordance with the requirements in 24 CFR part 5, subpart G, and at such other times as HUD may determine to be necessary to assure that the owner is meeting the Owner's obligation to maintain the units and the related facilities in accordance with 24 CFR part 5, subpart G, and to provide the agreed-upon utilities and other services.
(e) Failure to maintain housing. If HUD notifies the Owner that he/she has failed to maintain a unit that is compliant with 24 CFR part 5, subpart G, and the Owner fails to take corrective action within the time prescribed in the notice, HUD may exercise any of its rights or remedies under the Contract, or Regulatory Agreement, if any, including abatement of housing assistance payments (even if the Family continues to occupy the unit) and rescission of the sale. If the Family wishes to be rehoused in another unit, HUD shall provide assistance in finding such a unit for the Family.
[88 FR 30500, May 11, 2023]
Notes of Decisions
Normandy Apts., Ltd. v. United States, 116 Fed. Cl. 431 (Fed. Cl. 2014).
· cites it 3× “See 24 C.F.R. § 886.323 (a) (2013). Under the HAP contract, HUD agreed that, “[f|or each contract unit occupied by an eligible family in accordance with this Contract, HUD will pay the Owner the difference between the HUD-approved gross rent and Gross Family Contribution…”
Normandy Apts., Ltd. v. United States, 100 Fed. Cl. 247 (Fed. Cl. 2011).
“See 24 C.F.R. § 886.323 . In November 2004, HUD’s Real Estate Assessment Center (REAC) inspected the Normandy Apartments and gave the physical condition of the property a failing score of 59c*.”
Englewood Terrace Ltd. P'ship v. United States, 79 Fed. Cl. 516 (Fed. Cl. 2007).
“See also 24 C.F.R. § 886.323 (e) (April 1, 2000) (“If HUD notifies the owner that he/she has failed to maintain a dwelling in decent, safe, and sanitary condition, and the owner fails to take corrective action within the time prescribed in the notice, HUD may exercise any of its…”
Marshall v. Cuomo, 192 F.3d 473 (4th Cir. 1999).
“1 If a property owner fails to maintain the subsidized units as required, HUD may abate further rental assistance payments, see 24 C.F.R. § 886.323 (e) (1999), and may pursue suspension and debarment proceedings against the owner, 24 C.”
Jackson v. HUD, 38 F.4th 463 (5th Cir. 2022).
“7 And the Hartford tenants likely received relocation assistance under 24 C.F.R. § 886.323 (e), a non-URA HUD regulation requiring HUD to “provide assistance in finding [another dwelling] unit for the family” if certain requirements are met.”
Sandpiper Residents Ass'n v. United States Dep't of Hous. & Urban Dev. (D.D.C. 2022).
· cites it 2× “Plaintiffs amended their complaint to eliminate their claim based on a regulation, 24 C.F.R. § 886.323 (e), which arguably imposed a mandatory requirement that HUD issue vouchers if an owner (1) fails to maintain a dwelling in a decent, safe, and condition; (2) the owner fails…”
Normandy Apts., Ltd. v. United States (Fed. Cl. 2014).
· cites it 3× “See 24 C.F.R. § 886.323 (a) (2013). Under the HAP contract, HUD agreed that, “[f]or each contract unit occupied by an eligible family in accordance with this Contract, HUD will pay the Owner the difference between the HUD-approved gross rent and Gross Family Contribution…”
Frisby v. United States Dep't of Hous. & Urban Dev., 755 F.2d 1044 (3rd Cir. 1985).
“315 ; and maintenance, operation and inspection, 24 C.F.R. § 886.323 . Under the regulations, the purchaser of the property is entitled to receive for each unit occupied by income eligible tenants an amount, denoted the Contract Rent, arrived at through negotiations with HUD.”
— 24 C.F.R. § 886.323(a) — 2 cases
Normandy Apts., Ltd. v. United States, 116 Fed. Cl. 431 (Fed. Cl. 2014).
“See 24 C.F.R. § 886.323 (a) (2013). Under the HAP contract, HUD agreed that, “[f|or each contract unit occupied by an eligible family in accordance with this Contract, HUD will pay the Owner the difference between the HUD-approved gross rent and Gross Family Contribution…”
Normandy Apts., Ltd. v. United States (Fed. Cl. 2014).
“See 24 C.F.R. § 886.323 (a) (2013). Under the HAP contract, HUD agreed that, “[f]or each contract unit occupied by an eligible family in accordance with this Contract, HUD will pay the Owner the difference between the HUD-approved gross rent and Gross Family Contribution…”
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