§401.600. Will a section 8 contract be extended if it would expire while an owner's request for a Restructuring Plan is pending?
24 C.F.R. § 401.600
If a section 8 contract for an eligible project would expire before a Restructuring Plan is implemented, the contract may be extended at rents not exceeding current rents:
For up to the earlier of one year or closing on the Restructuring Plan under § 401.407; or
For such period of time beyond one year as HUD may approve, up to the closing of the Restructuring Plan.
Any extension of the contract beyond one year for a pending Restructuring Plan, other than an extension approved under this section, must be at comparable market rents or exception rents. An extension at comparable market rents will not affect a project's eligibility for the Mark-to-Market program once it has been established under this part.
HUD may terminate the contract earlier if the PAE or HUD determines that an owner is not cooperative under § 401.402 or if the owner's request is rejected under § 401.403 or § 401.405.
Notes, amendments, and revision history
Amendments
[71 FR 2121, Jan. 12, 2006]
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
[71 FR 2121, Jan. 12, 2006]