---
kind: "section"
citation: "24 C.F.R. § 983.304"
title: "24"
number: "983.304"
heading: "Other subsidy: effect on rent to owner."
url: "https://uscodex.org/cfr/24/983.304"
---

# §983.304. Other subsidy: effect on rent to owner.

- (a) **General.** In addition to the rent limits established in accordance with [§ 983.301](/cfr/24/983.301.md) and [24 CFR 982.302](/cfr/24/982.302.md), the following restrictions apply to certain units.
- (b) **HOME.** For units assisted under the HOME program, rents may not exceed rent limits as required by the HOME program ([24 CFR 92.252](/cfr/24/92.252.md)).
- (c) **Subsidized projects.**
  - (1) This [paragraph (c)](#c) applies to any contract units in any of the following types of federally subsidized project:
    - (i) An insured or non-insured [Section 236](/cfr/24/236.md) project;
    - (ii) A formerly insured or non-insured [Section 236](/cfr/24/236.md) project that continues to receive Interest Reduction Payment following a decoupling action;
    - (iii) A [Section 221(d)(3)](/cfr/24/221.md?p=d-3) below market interest rate (BMIR) project;
    - (iv) A [Section 515](/cfr/24/515.md) project of the Rural Housing Service;
    - (v) **Any other type of federally subsidized project specified by HUD.**
  - (2) The rent to owner may not exceed the subsidized rent (basic rent) as determined in accordance with requirements for the applicable federal program listed in [paragraph (c)(1)](#c-1) of this section.
- (d) **Combining subsidy.** Rent to owner may not exceed any limitation required to comply with HUD subsidy layering requirements. See [§ 983.55](/cfr/24/983.55.md).
- (e) **Other subsidy: rent reduction.** To comply with HUD subsidy layering requirements, at the direction of HUD or its designee, a PHA shall reduce the rent to owner because of other governmental subsidies, including tax credits or tax exemptions, grants, or other subsidized financing.
- (f) **Prohibition of other subsidy.** For provisions that prohibit PBV assistance to units in certain types of subsidized housing, see [§ 983.54](/cfr/24/983.54.md).

## Notes

### Amendments

[70 FR 59913, Oct. 13, 2005, as amended at 72 FR 65207, Nov. 19, 2007; 79 FR 36170, June 25, 2014]

### Authority

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

### Source

Source: 70 FR 59913, Oct. 13, 2005, unless otherwise noted.

### Amendments

[70 FR 59913, Oct. 13, 2005, as amended at 72 FR 65207, Nov. 19, 2007; 79 FR 36170, June 25, 2014]