---
kind: "section"
citation: "24 C.F.R. § 401.560"
title: "24"
number: "401.560"
heading: "Property management standards."
url: "https://uscodex.org/cfr/24/401.560"
---

# §401.560. Property management standards.

- (a) **General.** Each PAE is required by [section 518](/cfr/24/518.md) of MAHRA to establish management standards consistent with industry standards and HUD guidelines. The management standards must be included or referenced in the Restructuring Plan.
- (b) **HUD guidelines.** At a minimum, the PAE's management standards must require the project management to:
  - (1) Protect the physical integrity of the property over the long term through preventative maintenance, repair, or replacement;
  - (2) Ensure that the building and grounds are routinely cleaned;
  - (3) Maintain good relations with the tenants;
  - (4) Protect the financial integrity of the project by operating the property with competitive and reasonable costs and maintaining appropriate property and liability insurance at all times;
  - (5) Take all necessary measures to ensure the tenants' physical safety; and
  - (6) Comply with other provisions that are required by HUD, including termination of the management agent for cause.
- (c) **Conflicts of interest.** The PAE management standards must also conform to any guidelines established by HUD, and industry standards, governing conflicts of interest between owners, managers, and contractors.

## Notes

### 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.