---
kind: "section"
citation: "24 C.F.R. § 401.600"
title: "24"
number: "401.600"
heading: "Will a section 8 contract be extended if it would expire while an owner's request for a Restructuring Plan is pending?"
url: "https://uscodex.org/cfr/24/401.600"
---

# §401.600. Will a section 8 contract be extended if it would expire while an owner's request for a Restructuring Plan is pending?

- (a) If a [section 8](/cfr/24/8.md) contract for an eligible project would expire before a Restructuring Plan is implemented, the contract may be extended at rents not exceeding current rents:
  - (1) For up to the earlier of one year or closing on the Restructuring Plan under [§ 401.407](/cfr/24/401.407.md); or
  - (2) For such period of time beyond one year as HUD may approve, up to the closing of the Restructuring Plan.
- (b) 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.
- (c) HUD may terminate the contract earlier if the PAE or HUD determines that an owner is not cooperative under [§ 401.402](/cfr/24/401.402.md) or if the owner's request is rejected under [§ 401.403](/cfr/24/401.403.md) or [§ 401.405](/cfr/24/401.405.md).

## Notes

### 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]