24 C.F.R. § 886.331
§ 886.331 Agreement to enter into housing assistance payments contract. (24 CFR Part 886)
Operative Text
(a) Execution of agreement. At the sales closing and prior to the Owner's commencement of any rehabilitation under this subpart, HUD will enter into an Agreement with the Owner which contains the following: (1) A statement that the Owner agrees to rehabilitate the project unit(s) to make the unit(s) decent, safe, and sanitary in accordance with the work write-up, cost estimates, and this subpart. (2) A date by which rehabilitation will have commenced and a deadline date by which the rehabilitated project unit(s) will be completed and ready for occupancy. The Agreement may provide for staged rehabilitation, occupancy, and payments under the contract. (3) The Contract Rent which will be paid to the Owner once rehabilitation is completed, the Contract is executed, and the unit(s) is/are occupied by an eligible family. (4) A date for final inspection of the unit(s) by HUD and the owner shall be specified. This date shall be as soon as possible after the deadline date specified pursuant to paragraph (a)(2) of this section. (5) The term of the contract. (b) Agreement part of sales contract. The Agreement will be prepared by HUD and incorporated into the Contract of Sale and Purchase. The Agreement shall include all required information in paragraph (a) of this section and a statement specifying the Owner's responsibility for making relocation payments to Families temporarily displaced.
Under 24 CFR Part 886 § 886.331, before any rehabilitation work begins on a property, HUD and the property owner must sign a formal Agreement at the time of the sales closing. This Agreement establishes the scope and timeline for bringing units up to decent, safe, and sanitary standards, the rent HUD will pay once work is complete and eligible families are housed, and the owner's responsibility for temporarily displaced families. The Agreement is incorporated directly into the sales contract and sets a date for HUD's final inspection of the rehabilitated units.
Plain English — not legal advice.
Under § 886.331, a compliant owner executing a sale under this subpart ensures the Agreement with HUD is signed at closing—before any rehabilitation begins—and that it reflects accurate timelines, cost estimates, and work write-ups. Operators generally track the rehabilitation start and completion deadlines specified in the Agreement, coordinate the final HUD inspection promptly after the completion deadline, and budget for any relocation payments owed to families temporarily displaced during the work. Because the Agreement is folded into the sales contract itself, owners typically review both documents together to confirm all required terms are consistent.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For families living in or seeking housing in properties subject to § 886.331, this provision establishes that rehabilitation commitments and relocation payment responsibilities are formalized in a binding Agreement before work ever starts, which can be relevant if displacement occurs during the rehabilitation process. Tenants who believe an owner has not honored relocation payment obligations or rehabilitation timelines described in the Agreement may have grounds to raise those concerns with their local HUD field office. Tenant-rights organizations familiar with Section 8 project-based programs can help individuals understand what protections apply under § 886.331 and what general enforcement paths 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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