24 C.F.R. § 886.304
§ 886.304 Project eligibility criteria. (24 CFR Part 886)
Operative Text
(a) Selection of projects. HUD shall select projects for sale with assistance under this subpart on the basis of the final disposition programs developed and approved in accordance with part 290 and the requirements of this subpart. In the evaluation of projects, consideration shall be given to whether there are site occupants who would have to be displaced, whether the relocation of site occupants is feasible, and the degree of hardship which displacement might cause. (b) Projects needing rehabilitation. A project, which is sold subject to the condition that following sale the project will be rehabilitated by the owner so as to become decent, safe and sanitary, will be sold with an Agreement that Section 8 assistance will be provided after the repairs are completed by the owner and the project is inspected and accepted by HUD. In these projects, Section 8 payments may be made only for project units which are determined to be decent, safe and sanitary. (c) High-rise elevator projects. High-rise elevator projects for families with children will not be assisted under this subpart unless the final disposition program, prepared in accordance with 24 CFR part 290 indicates that there is a need for assisted housing for families and there is no other practical alternative for providing the needed housing.
Under 24 CFR Part 886 § 886.304, HUD evaluates and selects projects for sale with housing assistance based on approved disposition programs and specific eligibility criteria. When site occupants could be displaced, the rule requires consideration of whether relocation is feasible and how much hardship displacement might cause. Projects requiring rehabilitation must meet decent, safe, and sanitary standards before Section 8 payments can flow to individual units, and high-rise elevator buildings serving families with children face additional scrutiny before qualifying for assistance.
Plain English — not legal advice.
Under § 886.304, operators of projects sold through this HUD program generally ensure that rehabilitation work is fully completed and that units pass HUD inspection before expecting Section 8 assistance payments to begin. Compliant owners of projects with site occupants typically document relocation feasibility and hardship considerations as part of the disposition process. Owners of high-rise elevator properties seeking assistance for families with children should be aware that eligibility under this subpart depends on demonstrated need and the absence of practical housing alternatives, as reflected in the approved disposition program.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 886.304 establishes protections relevant to people living in or seeking housing in HUD-assisted projects, including a requirement that displacement hardship and relocation feasibility be weighed before a project is selected for sale. Tenants in projects undergoing rehabilitation have a right to Section 8 assistance only in units that have been inspected and accepted as decent, safe, and sanitary by HUD. Residents who believe these criteria are not being followed may raise concerns with their local HUD field office, consult a tenant-rights organization familiar with federal housing programs, or explore whether a violation of § 886.304 is relevant to their situation.
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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