---
kind: "section"
citation: "24 C.F.R. § 401.421"
title: "24"
number: "401.421"
heading: "Rental Assistance Assessment Plan."
url: "https://uscodex.org/cfr/24/401.421"
---

# §401.421. Rental Assistance Assessment Plan.

- (a) **Plan required.** For any project not subject to mandatory project-based assistance under [§ 401.420](/cfr/24/401.420.md), the PAE must develop a Rental Assistance Assessment Plan in accordance with [section 515(c)(2)](/cfr/24/515.md?p=c-2) of MAHRA to determine whether assistance should be renewed as project-based assistance or whether some or all of the assisted units should be converted to tenant-based assistance.
- (b) **Matters to be assessed.** The PAE must include an assessment of the impact of converting to tenant-based assistance and the impact of renewing project-based assistance on:
  - (1) The ability of the tenants to find adequate, available, decent, comparable, and affordable housing in the local market;
  - (2) The types of tenants residing in the project (such as elderly families, disabled families, large families, and cooperative homeowners);
  - (3) The local housing needs identified in the applicable Consolidated Plan developed under [part 91 of this title](/cfr/24/part91.md);
  - (4) The cost of providing assistance, comparing the applicable payment standard to the rent levels permitted by §§ [401.410](/cfr/24/401.410.md) and [401.411](/cfr/24/401.411.md);
  - (5) The long-term financial stability of the project;
  - (6) The ability of residents to make reasonable choices about their individual living situations;
  - (7) The quality of the neighborhood in which the tenants would reside; and
  - (8) **The project's ability to compete in the marketplace.**
- (c) **Conversion may be phased in.** Any conversion from project-based assistance to tenant-based assistance may occur over a period of not more than 5 years if the PAE decides the transition period is needed for the financial viability of the project.
- (d) **Reports to HUD.** The PAE must report to HUD on the matters specified in [section 515(c)(2)(C)](/cfr/24/515.md?p=c-2-C) of MAHRA at least semi-annually.

## Notes

### Amendments

[65 FR 15485, Mar. 22, 2000, as amended at 65 FR 53900, Sept. 6, 2000]

### Authority

Authority: 12 U.S.C. 1715z-1 and 1735f-19(b); 42 U.S.C. 1437(c)(8), 1437f(t), 1437f note, and 3535(d).

### Source

Source: 65 FR 15485, Mar. 22, 2000, unless otherwise noted.

### Amendments

[65 FR 15485, Mar. 22, 2000, as amended at 65 FR 53900, Sept. 6, 2000]