24 C.F.R. § 884.108
§ 884.108 Term of housing assistance payments contract. (24 CFR Part 884)
Operative Text
(a) Except in the case of a Contract described in paragraph (b) of this section, the Contract shall be for an initial term of 20 years: Provided, That at the end of such Contract term and at the request of RHCDS, HUD may, subject to the availability of contract and budget authority, authorize the execution of a new Contract providing for a total Contract term of an additional 20 years. (b) In the case of a Contract under which housing assistance payments are made with respect to a project owned by a State or local agency, the total Contract term may be equal to the term of such financing but may not exceed 40 years for any dwelling unit. (c) If the project is completed in stages, the dates for the initial and the renewal terms shall be separately related to the units in each stage: Provided, however, That the total Contract term for the units in all the stages, beginning with the effective date of the Contract with respect to the first stage, may not exceed the overall maximum term allowable for any one unit, plus two years.
Under 24 CFR Part 884 § 884.108, housing assistance payments contracts generally run for an initial term of 20 years, with the possibility of a renewal for an additional 20 years if requested by RHCDS and authorized by HUD, subject to available funding. When a project is owned by a state or local agency, the contract term may instead match the financing term, but cannot exceed 40 years for any single dwelling unit. For projects built in stages, each stage carries its own term dates, though the total contract duration—measured from the first stage's effective date—cannot exceed the maximum allowable term for any one unit plus two years.
Plain English — not legal advice.
Property owners and managers operating under § 884.108 generally structure their long-term planning around the 20-year initial contract term and remain attentive to renewal procedures that require RHCDS to request and HUD to authorize any extension. Operators whose projects are owned by a state or local agency should ensure their contract terms are aligned with the applicable financing term while confirming that no individual dwelling unit exceeds the 40-year ceiling established by § 884.108(b). For phased developments, compliant operators typically track separate term dates for each stage while monitoring the aggregate contract duration to ensure it stays within the overall limit set by § 884.108(c).
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Residents living in housing covered by § 884.108 benefit from a framework that sets defined limits on how long housing assistance payments contracts can run, providing a degree of structural continuity for the assisted units. If a contract is approaching its term limit or a renewal is in question, tenants may want to contact their local HUD field office or a tenant-rights organization to understand how § 884.108 applies to their building. Tenants in phased projects should be aware that § 884.108(c) governs the overall contract duration across all stages, and any concerns about contract continuity can be raised with a housing counselor or brought to the attention of the relevant housing authority.
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.