---
kind: "section"
citation: "24 C.F.R. § 891.860"
title: "24"
number: "891.860"
heading: "Operating reserves."
url: "https://uscodex.org/cfr/24/891.860"
---

# §891.860. Operating reserves.

- (a) The mixed-finance owner shall maintain an operating reserve account in an amount sufficient to cover the operating expenses of the development for at least a three-month period.
- (b) Project income, project rental assistance, tenant rents, and tax credit equity may be used to fund the operating reserve account.
- (c) Amounts derived from Section [202](/cfr/24/202.md) or [811](/cfr/24/811.md) (e.g., project income, project rental assistance, and tenant rents) in operating reserve accounts may only be used for the operating expenses of the 202 or 811 units.

## Notes

### Source

Source: 70 FR 54210, Sept. 13, 2005, unless otherwise noted.

### Authority

Authority: 12 U.S.C. 1701q; 42 U.S.C. 1437f, 3535(d), and 8013.

### Source

Source: 61 FR 11956, Mar. 22, 1996, unless otherwise noted.