---
kind: "section"
citation: "24 C.F.R. § 402.7"
title: "24"
number: "402.7"
heading: "Refusal to consider an owner's request for a Section 8 contract renewal because of actions or omissions of owner or affiliate."
url: "https://uscodex.org/cfr/24/402.7"
---

# §402.7. Refusal to consider an owner's request for a Section 8 contract renewal because of actions or omissions of owner or affiliate.

- (a) **Determination of eligibility.** Notwithstanding [2 CFR part 2424](/cfr/2/part2424.md), HUD may elect to not consider a request for renewal of project-based assistance, if at any time before contract renewal:
  - (1) The owner or an affiliate is debarred or suspended under [part 2 CFR](/cfr/24/part2.md) [part 2424](/cfr/24/part2424.md);
  - (2) HUD determines that the owner or an affiliate has engaged in material adverse financial or managerial actions or omissions as described in [section 516](/cfr/24/516.md) of MAHRA, including any outstanding violations of civil rights laws, or has failed to certify to compliance with the nondiscrimination requirements of [24 CFR 5.105(a)](/cfr/24/5.105.md?p=a), in connection with any project of the owner or an affiliate; or
  - (3) The project does not meet the physical condition standards in [24 CFR 5.703](/cfr/24/5.703.md) of this title, unless HUD determines that the project will meet the standards within a reasonable time after renewal.
- (b) **Dispute and appeal.** An owner may dispute a rejection under this section and seek administrative review under the procedures in [subpart F of part 401](/cfr/24/part401-subpartF.md) of this chapter.

## Notes

### Amendments

[71 FR 2122, Jan. 12, 2006, as amended at 72 FR 73496, Dec. 27, 2007]

### Authority

Authority: 42 U.S.C. 1437(c)(8), 1437f note, and 3535(d).

### Source

Source: 63 FR 48953, Sept. 11, 1998, unless otherwise noted.

### Amendments

[71 FR 2122, Jan. 12, 2006, as amended at 72 FR 73496, Dec. 27, 2007]