24 C.F.R. § 880.505
§ 880.505 Contract administration and conversions. (24 CFR Part 880)
Operative Text
(a) Contract administration. For private-owner/PHA projects, the PHA is primarily responsible for administration of the Contract, subject to review and audit by HUD. For private-owner/HUD and PHA-owner/HUD projects, HUD is responsible for administration of the Contract. The PHA or HUD may contract with another entity for the performance of some or all of its contract administration functions. (b) PHA fee for Contract administration. A PHA will be entitled to a reasonable fee, determined by HUD, for administering a Contract except under certain circumstances (see 24 CFR part 883) where a state housing finance agency is the PHA and finances the project. (c) Conversion of Projects from one Ownership/Contractual arrangement to another. Any project may be converted from one ownership/contractual arrangement to another (for example, from a private-owner/HUD to a private-owner/PHA project) if: (1) The owner, the PHA and HUD agree, (2) HUD determines that conversion would be in the best interest of the project, and (3) In the case of conversion from a private-owner/HUD to a private-owner/PHA project, contract authority is available to cover the PHA fee for administering the Contract.
Under 24 CFR Part 880 § 880.505, the entity responsible for overseeing a Section 8 housing assistance payments contract depends on how the project is structured: a public housing authority (PHA) takes the lead administrative role for private-owner/PHA projects, while HUD directly administers contracts for private-owner/HUD and PHA-owner/HUD projects. Either HUD or a PHA may delegate some or all of those administrative duties to a third party. A project's ownership and contractual arrangement can be converted from one structure to another, but only when the owner, the PHA, and HUD all agree, HUD finds the change serves the project's best interests, and—where applicable—sufficient contract authority exists to fund any resulting PHA administrative fee.
Plain English — not legal advice.
Property owners participating in Section 8 programs governed by 24 CFR Part 880 § 880.505 generally direct contract-related communications and compliance matters to whichever entity—HUD or the PHA—holds administrative responsibility for their specific project type. Owners who wish to pursue a conversion of their project's ownership or contractual arrangement typically initiate discussions with both the PHA and HUD, since all three parties must reach agreement and HUD must affirmatively determine the conversion serves the project's best interests. Staying informed about which entity administers the contract helps owners route maintenance, inspection, and payment questions to the correct office and avoid administrative delays.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Residents living in projects covered by 24 CFR Part 880 § 880.505 benefit from an oversight structure in which either a PHA or HUD monitors compliance with the housing assistance payments contract, providing a formal channel for concerns about contract performance. If a project undergoes a conversion to a different ownership or contractual arrangement, that change requires multilateral agreement and a HUD best-interest determination, which offers a layer of procedural protection for the project's continued operation. Tenants who have questions about who administers their project's contract, or who believe contract obligations are not being met, can contact their local HUD field office, reach out to the administering PHA if one is involved, or seek guidance from a tenant-rights organization familiar with federally assisted housing.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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