24 C.F.R. § 884.104
§ 884.104 Maximum total annual contract commitment and project account (private-owner or PHA-owner projects). (24 CFR Part 884)
Operative Text
(a) Maximum total annual contract commitment. The maximum total annual housing assistance payments that may be committed under the Contract shall be the total of the Gross Rents for all the Contract units in the project. (b) Project account. In order to assure that housing assistance payments will be increased on a timely basis to cover increases in Contract Rents or decreases in Family Incomes: (1) A Project Account shall be established and maintained in an amount as determined by the Secretary consistent with his responsibilities under Section 8(c)(6) of the Act, out of amounts by which the maximum annual Contract commitment per year exceeds amounts paid under the Contract for any year. This account shall be established and maintained by HUD as a specifically identified and segregated account, and payment shall be made therefrom only for the purposes of (i) housing assistance payments, and (ii) other costs specifically authorized or approved by the Secretary. (2) Whenever a HUD-approved estimate of required housing assistance payments for a fiscal year exceeds the maximum annual Contract commitment, and would cause the amount in the Project Account to be less than an amount equal to 40 percent of such maximum annual Contract commitment, HUD shall, within a reasonable period of time, take such additional steps authorized by Section 8(c)(6) of the Act as may be necessary to carry out this assurance, including (as provided in that section of the Act) “the reservation of annual contributions authority for the purpose of amending housing assistance contracts or the allocation of a portion of new authorizations for the purpose of amending housing assistance contracts.”
Section 884.104 establishes two financial guardrails for Section 8 housing assistance contracts covering private-owner or PHA-owner projects. First, it caps the total annual housing assistance payments that can be committed under a contract at the sum of all gross rents for the covered units. Second, it requires HUD to maintain a dedicated, segregated "Project Account" funded by any surplus between the annual contract ceiling and actual payments made, ensuring that future increases in contract rents or decreases in family incomes can be covered promptly. If HUD's own estimates show that projected payments would draw the Project Account below 40 percent of the maximum annual contract commitment, HUD is obligated to take additional steps — including seeking new authorization or amending existing contracts — to restore that financial cushion.
Plain English — not legal advice.
Under 24 CFR Part 884 § 884.104, the total housing assistance payments available under a Section 8 contract are bounded by the aggregate gross rents for all contract units, so compliant operators generally ensure their rent schedules and contract documentation accurately reflect those gross rents. Operators also benefit from the Project Account mechanism, which HUD administers separately to cover timely adjustments when contract rents rise or tenant incomes fall. Property owners and managers typically maintain current and accurate rent and occupancy records so that HUD's annual estimates under § 884.104 can be calculated correctly and any necessary contract amendments can be processed without delay.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For tenants living in units covered by a Section 8 contract governed by 24 CFR Part 884 § 884.104, this provision is relevant because it requires HUD to maintain a financial reserve — the Project Account — specifically to ensure that housing assistance payments keep pace with rent increases or income decreases affecting your household. If you believe assistance payments have not been adjusted in a timely way as your income changed, § 884.104's Project Account requirements may be relevant to that concern. Tenants can explore these issues by contacting their local HUD field office, reaching out to a tenant-rights organization, or consulting a housing attorney familiar with Section 8 contract regulations.
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.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.