24 C.F.R. § 880.611
§ 880.611 Conditions for receipt of vacancy payments. (24 CFR Part 880)
Operative Text
(a) General. Vacancy payments under the Contract will not be made unless the conditions for receipt of these housing assistance payments set forth in this section are fulfilled. (b) Vacancies during Rent-up. For each assisted unit that is not leased as of the effective date of the Contract, the owner is entitled to vacancy payments in the amount of 80 percent of the contract rent for the first 60 days of vacancy if the owner: (1) Conducted marketing in accordance with § 880.601(a) and otherwise complied with § 880.601; (2) Has taken and continues to take all feasible actions to fill the vacancy; and (3) Has not rejected any eligible applicant except for good cause acceptable to the contract administrator. (c) Vacancies after Rent-Up. If an eligible family vacates a unit, the owner is entitled to vacancy payments in the amount of 80 percent of the contract rent for the first 60 days of vacancy if the owner: (1) Certifies that he did not cause the vacancy by violating the lease, the Contract or any applicable law; (2) Notified the contract administrator of the vacancy or prospective vacancy and the reasons for the vacancy immediately upon learning of the vacancy or prospective vacancy; (3) Has fulfilled and continues to fulfill the requirements specified in § 880.601(a) (2) and (3) and paragraph (b) (2) and (3) of this section; and (4) For any vacancy resulting from the owner's eviction of an eligible family, certifies that he has complied with § 880.607. (d) Vacancies for longer than 60 days. If an assisted unit continues to be vacant after the 60-day period specified in paragraph (b) or (c) of this section, the owner may apply to receive additional vacancy payments in an amount equal to the principal and interest payments required to amortize that portion of the debt service attributable to the vacant unit for up to 12 additional months for the unit if: (1) The unit was in decent, safe and sanitary condition during the vacancy period for which payments are claimed; (2) The owner has fulfilled and continues to fulfill the requirements specified in paragraph (b) or (c) of this section, as appropriate; and (3) The owner has (for 24 CFR part 883 projects, the owner and the Agency have) demonstrated to the satisfaction of HUD that: (i) For the period of vacancy, the project is not providing the owner with revenues at least equal to project expenses (exclusive of depreciation), and the amount of payments requested is not more than the portion of the deficiency attributable to the vacant unit, and (ii) The project can achieve financial soundness within a reasonable time. (e) Prohibition of double compensation for vacancies. The owner is not entitled to vacancy payments for vacant units to the extent he can collect for the vacancy from other sources (such as security deposits, payments under § 880.608(f), and governmental payments under other programs).
Under 24 CFR Part 880 § 880.611, housing assistance vacancy payments are only available to owners who satisfy specific conditions tied to the timing and circumstances of the vacancy. During initial rent-up or after an eligible family moves out, an owner may receive 80 percent of the contract rent for up to the first 60 days of vacancy, provided the owner actively marketed the unit, worked to fill it, and did not wrongfully cause or contribute to the vacancy. For vacancies extending beyond 60 days, additional payments tied to debt-service costs may be available for up to 12 more months, but only if the unit remained in decent, safe, and sanitary condition and the project demonstrates financial need and a path to soundness. In all cases, vacancy payments are reduced to the extent the owner can recover losses from other sources, such as security deposits or other governmental programs.
Plain English — not legal advice.
Under § 880.611, compliant operators generally maintain thorough documentation of their marketing efforts in line with § 880.601, promptly notify the contract administrator whenever a unit becomes or is expected to become vacant, and record the reasons for each vacancy. Owners typically ensure that assisted units remain in decent, safe, and sanitary condition throughout any vacancy period and avoid rejecting eligible applicants without cause acceptable to the contract administrator. When seeking extended vacancy payments beyond the initial 60-day window, operators generally prepare financial documentation showing that project revenues fall short of expenses and that the project has a realistic path to financial stability, as required by § 880.611(d).
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under § 880.611, the rules governing vacancy payments include a provision that owners cannot receive these payments if they caused a vacancy by violating the lease, the housing assistance contract, or applicable law — meaning a wrongful eviction or lease violation by an owner can affect their eligibility for federal assistance payments. Tenants who believe an owner improperly evicted them or otherwise caused a vacancy in violation of § 880.611(c)(1) or § 880.607 may have grounds to raise that issue with the contract administrator or HUD. Tenant-rights organizations and legal aid offices can help individuals understand how these provisions interact with their specific housing situation and what complaint or defense options may be available.
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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