24 C.F.R. § 983.57
§ 983.57 PHA-owned units. (24 CFR Part 983)
Operative Text
(a) Selection of PHA-owned units. The selection of PHA-owned units must be done in accordance with § 983.51(h). (b) Independent entity functions. In connection with PHA-owned units: (1) The independent entity must determine rent to owner, including rent reasonableness and calculating any rent adjustments by an OCAF (where applicable), in accordance with §§ 983.301 through 983.305. (2) The independent entity must perform unit inspections in accordance with § 983.103(g). (3) When the owner carries out development activity under § 983.152 or substantial improvement under §§ 983.207(d) or 983.212, the independent entity must review the evidence and work completion certification submitted by the owner in accordance with § 983.155(b) and determine if the units are complete in accordance with § 983.156. (4) The independent entity must determine whether to approve substantial improvement to units under a HAP contract in accordance with § 983.212. (c) Payment to independent entity. The PHA may compensate the independent entity from PHA administrative fees (including fees credited to the administrative fee reserve) for the services performed by the independent entity. The PHA may not use other program receipts to compensate the independent entity for such services. The PHA and the independent entity may not charge the family any fee or charge for the services provided by the independent entity.
Under 24 CFR Part 983 § 983.57, when a public housing authority (PHA) owns units it wishes to include in a project-based voucher (PBV) program, certain oversight functions that the PHA would normally perform must instead be carried out by an independent entity. This independent entity handles rent determinations, unit inspections, and reviews of development or substantial improvement work to ensure an arm's-length check on the PHA's dual role as both program administrator and property owner. Families assisted under this arrangement cannot be charged any fee for the independent entity's services, and the PHA is limited to using administrative fees — not other program receipts — to pay for those services.
Plain English — not legal advice.
A PHA operating as an owner of PBV units under § 983.57 generally ensures that it has designated a qualified independent entity before those units enter or remain in the program. Compliant PHAs in this role submit rent documentation, cooperate with independent inspections, and provide required evidence and work-completion certifications for any development or substantial improvement activity — all so the independent entity can fulfill its statutory review obligations. Because § 983.57(c) restricts how the independent entity may be compensated, PHAs typically track that payments come solely from administrative fees and confirm that no costs are passed to assisted families.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under § 983.57, families living in PHA-owned units that participate in the project-based voucher program have the protection of an independent entity — separate from the PHA — conducting rent reviews and unit inspections on their behalf. Section 983.57(c) explicitly prohibits both the PHA and the independent entity from charging families any fee for these oversight services. Tenants who believe this protection is not being honored may raise the issue with their local HUD field office, consult a tenant-rights organization familiar with federal housing programs, or reference § 983.57 when seeking information about their rights under the program.
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.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.