24 C.F.R. § 886.101
§ 886.101 Applicability. (24 CFR Part 886)
Operative Text
(a) The policies and procedures of this subpart apply to Housing Assistance Payments under Section 8 of the United States Housing Act of 1937 on behalf of Eligible Families in Eligible Projects (see definitions in § 886.102). (b) The primary goal of the Section 8 Loan Management Set-Aside Program is to reduce claims on the Department's insurance fund by aiding those FHA-insured or Secretary-Held projects with immediately or potentially serious financial difficulties. A first priority should be given to projects with presently serious financial problems, which are likely to result in a claim on the insurance fund in the near future. To the extent resources remain available, assistance also may be provided to projects with potentially serious financial problems which, on the basis of financial and/or management analysis, appear to have a high probability of producing a claim on the insurance fund within approximately the next five years.
Section 886.101 establishes the scope of the rules contained in this subpart, tying them specifically to Housing Assistance Payments made under Section 8 of the United States Housing Act of 1937 for eligible families living in eligible projects. The provision also describes the overarching purpose of the Section 8 Loan Management Set-Aside Program: to protect HUD's insurance fund by directing rental assistance toward FHA-insured or Secretary-Held housing projects that are experiencing or are at risk of serious financial distress. Projects facing immediate financial crises receive first priority, while those with potential near-term difficulties may receive assistance if program resources allow.
Plain English — not legal advice.
Property owners and managers of FHA-insured or Secretary-Held multifamily projects should be aware that under § 886.101, eligibility for Loan Management Set-Aside assistance is tied directly to a project's financial condition and its potential impact on HUD's insurance fund. Compliant operators generally maintain thorough and current financial records that accurately reflect the project's fiscal health, since demonstrated financial difficulty is a threshold consideration for program participation. Familiarity with the definitions referenced in § 886.102 helps operators understand whether their project and its residents qualify under this subpart.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under § 886.101, the Section 8 Loan Management Set-Aside Program is designed to stabilize housing projects in financial trouble, which can directly affect the availability and continuity of rental assistance for residents living in those properties. Tenants in FHA-insured or Secretary-Held projects may have rights tied to this program if their building qualifies as an eligible project under the definitions found in § 886.102. Residents who have questions about whether their building participates in this program or how a project's financial difficulties might affect their housing assistance can reach out to their local HUD field office or a tenant-rights organization for general information.
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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