24 C.F.R. § 92.258
§ 92.258 Elder cottage housing opportunity (ECHO) units. (24 CFR Part 92)
Operative Text
(a) General. HOME funds may be used for the initial purchase and initial placement costs of elder cottage housing opportunity (ECHO) units that meet the requirements of this section, and that are small, free-standing, barrier-free, energy-efficient, removable, and designed to be installed adjacent to existing single family housing units. (b) Eligible owners. The owner of a HOME-assisted ECHO unit may be: (1) The owner-occupant of the single family host property on which the ECHO unit will be located; (2) A participating jurisdiction; or (3) A non-profit organization. (c) Eligible tenants. During the period of affordability, the tenant of a HOME-assisted ECHO unit must be an elderly or disabled family as defined in 24 CFR 5.403 and must also be a low-income family. (d) Applicable requirements. The requirements of § 92.252 apply to HOME-assisted ECHO units, with the following modifications: (1) Only one ECHO unit may be provided per host property. (2) The ECHO unit owner may choose whether or not to charge the tenant of the ECHO unit rent, but if a rent is charged, it must meet the requirements of § 92.252. (3) The ECHO housing must remain affordable for the period specified in § 92.252(d). If within the period of affordability the original occupant no longer occupies the unit, the ECHO unit owner must: (i) Rent the unit to another eligible occupant on site; (ii) Move the ECHO unit to another site for occupancy by an eligible occupant; or (iii) If the owner of the ECHO unit is the host property owner-occupant, the owner may repay the HOME funds in accordance with the recapture provisions imposed by the participating jurisdiction consistent with § 92.254(a)(5)(ii). The participating jurisdiction must use the recaptured HOME funds for additional HOME activities. (4) The participating jurisdiction has the responsibility to enforce the project requirements applicable to ECHO units.
Under 24 CFR Part 92 § 92.258, HOME funds can cover the initial purchase and placement of ECHO units—small, removable, barrier-free cottages installed next to existing single-family homes. These units must remain affordable throughout the required period, and occupancy is restricted to elderly or disabled low-income families as defined under federal regulations. Ownership may rest with the host property owner-occupant, a participating jurisdiction, or a non-profit organization, and only one ECHO unit is permitted per host property.
Plain English — not legal advice.
Under § 92.258, compliant operators of HOME-assisted ECHO units limit occupancy to elderly or disabled low-income families and restrict each host property to a single ECHO unit. If the original occupant vacates during the affordability period, the owner generally takes one of three steps: re-renting on-site to an eligible occupant, relocating the unit to another site for an eligible occupant, or—if the owner is the host property owner-occupant—repaying HOME funds under the participating jurisdiction's recapture provisions. Any rent charged must conform to the requirements of § 92.252.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 92.258 protects eligible tenants of HOME-assisted ECHO units by requiring that the unit remain affordable for a set period and that occupancy be limited to elderly or disabled low-income families. If a tenant believes these affordability or eligibility requirements are not being honored, they can raise a potential violation with the participating jurisdiction, which bears enforcement responsibility under this provision. Tenant-rights organizations can help residents understand what protections apply and what general options exist for addressing concerns.
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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