24 C.F.R. § 883.106
§ 883.106 Applicability and relationships between HUD and State agencies. (24 CFR Part 883)
Operative Text
(a) Applicability. This subpart A applies to contract authority set aside for a State Agency. (b) General responsibilities and relationships. Subject to audit and review by HUD to assure compliance with Federal requirements and objectives, Housing Finance Agencies (HFAs) shall assume responsibility for project development and for supervision of the development, management and maintenance functions of owners. (c) Certifications and HUD monitoring. (1) Generally, when reviewing any of the certifications of an HFA required by this part, HUD shall accept the certification as correct. If HUD has substantial reason to question the correctness of any element in a certification, HUD shall promptly bring the matter to the attention of the HFA and ask it to provide documentation supporting the certifications. When the HFA provides such evidence, HUD will act in accordance with the HFA's judgment or evaluation unless HUD determines that the certification is clearly not supported by the documentation. (2) HUD will periodically monitor the activities of HFA's participating under this part only with respect to Section 8 or other HUD programs. This monitoring is intended primarily to ensure that certifications submitted and projects operated under this part reflect appropriate compliance with Federal law and requirements.
Under 24 CFR Part 883 § 883.106, when contract authority is set aside for a State Housing Finance Agency (HFA), the HFA takes on primary responsibility for overseeing project development, management, and maintenance—rather than HUD doing so directly. HUD retains the authority to audit and review HFA activities to ensure compliance with federal requirements. When an HFA submits certifications, HUD generally accepts them as accurate unless there is substantial reason to question a specific element, at which point HUD must raise the concern with the HFA and request supporting documentation before overriding the HFA's judgment.
Plain English — not legal advice.
Property owners and managers operating under 24 CFR Part 883 § 883.106 should understand that their primary regulatory relationship for day-to-day oversight runs through the State HFA, not directly through HUD. Compliant operators generally maintain thorough documentation of development, management, and maintenance activities so that the HFA can accurately certify compliance on their behalf. Because HUD periodically monitors HFA-administered programs for adherence to federal law, operators typically keep records that would support any certifications the HFA submits regarding their projects.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants living in housing covered by 24 CFR Part 883 § 883.106 should know that the State Housing Finance Agency holds primary responsibility for overseeing the management and maintenance of their building, with HUD serving as a federal backstop through audits and monitoring. If a tenant believes federal program requirements are not being met, one general path is to raise concerns directly with the relevant State HFA, which is accountable for certifying compliance under this provision. Tenant-rights organizations and HUD's regional offices can also be resources for understanding what federal standards apply and what complaint processes may be available.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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