---
kind: "section"
citation: "24 C.F.R. § 904.108"
title: "24"
number: "904.108"
heading: "Break-even amount."
url: "https://uscodex.org/cfr/24/904.108"
---

# §904.108. Break-even amount.

- (a) **Definition.** The term “break-even amount” as used herein means the minimum average monthly amount required to provide funds for the items listed in the illustration below. A separate break-even amount shall be established for each size and type of dwelling unit, as well as for the Project as a whole. The break-even amount for EHPA and NRMR will vary by size and type of dwelling unit; similar variations as to other line items may be made if the LHA deems this equitable.
- (b) **Excess over break-even.** When the homebuyer's required monthly payment (see [§ 904.107(j)](/cfr/24/904.107.md?p=j)) exceeds the applicable break-even amount, the excess shall constitute additional Project income and shall be deposited and used in the same manner as other Project income.
- (c) **Deficit in monthly payment.** When the homebuyer's required monthly payment is less than the applicable break-even amount, the deficit shall be applied as a reduction of that portion of the monthly payment designated for operating expense (i. e., as a reduction of Project income). In all such cases, the EHPA and the NRMR shall be credited with the amount included in the break-even amount for these accounts.

## Notes

### Authority

Authority: 42 U.S.C. 1437-1437ee and 3535(d).

### Source

Source: 39 FR 10966, Mar. 22, 1974, unless otherwise noted. Redesignated at 40 FR 15580, Apr. 7, 1975, and further redesignated at 49 FR 6714, Feb. 23, 1984.