24 C.F.R. § 888.401
§ 888.401 Purpose and scope. (24 CFR Part 888)
Operative Text
(a) Purpose. This subpart describes the basic policies and procedures for the retroactive payment of Housing Assistance Payments to eligible project owners for the period from October 1, 1979 to May 31, 1991 and a one-time Contract Rent determination for such eligible project owners. (b) Applicability. This subpart applies to all Moderate Rehabilitation projects under 24 CFR part 882, subparts D, E, and H. (c) Eligible project owners. Project owners may be eligible for retroactive payments if, during the period from October 1, 1979 to May 31, 1991: (1) The use of a comparability study by the Public Housing Agency (PHA) as contract administrator, which was conducted as an independent limitation on the amount of rent adjustment that would have resulted from use of the applicable AAF, resulted in the reduction of the maximum monthly Contract Rents for units covered by a Housing Assistance Payments (HAP) contract or resulted in less than the maximum increase for those units than would otherwise be permitted by the AAF; or (2) The project owner certifies that a request for an annual rent adjustment was not made because of an anticipated reduction of the maximum monthly Contract Rents resulting from a comparability study.
Section 888.401 establishes the purpose and boundaries of a federal program that authorized retroactive Housing Assistance Payments to certain owners of Moderate Rehabilitation projects covered under 24 CFR Part 882. The program addressed a specific historical window—October 1, 1979 through May 31, 1991—during which comparability studies used by Public Housing Agencies may have held Contract Rents below what annual adjustment factors would otherwise have allowed. The provision also established a one-time Contract Rent determination process for qualifying owners. Eligibility turns on whether a comparability study actually reduced rents during that period, or whether an owner skipped requesting an adjustment because such a reduction was anticipated.
Plain English — not legal advice.
Under § 888.401, property owners who operated Moderate Rehabilitation projects during the 1979–1991 period may have qualified for retroactive Housing Assistance Payments if a PHA-administered comparability study suppressed their Contract Rents below the level that annual adjustment factors would have produced. Compliant and informed operators in that era generally documented rent adjustment requests—or the reasons for forgoing them—to preserve eligibility for programs like this one. Owners with questions about whether past projects fell within the scope of 24 CFR Part 882, subparts D, E, or H, and whether any retroactive claims remain open, would typically consult HUD directly or review agency guidance specific to this subpart.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 888.401 governs payments made to project owners, not directly to tenants, but it is part of the broader Moderate Rehabilitation program framework under 24 CFR Part 882 that affects the housing assistance structure of covered units. Tenants living in Moderate Rehabilitation projects during the 1979–1991 period may find this provision relevant background when researching how Contract Rents in their building were historically set or adjusted. Tenants seeking to understand how this history might relate to their current housing situation can consult a local tenant-rights organization or HUD's public records for information about their specific project's HAP contract history.
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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