24 C.F.R. § 881.211
§ 881.211 Audit. (24 CFR Part 881)
Operative Text
(a) Where a non-Federal entity (as defined in 2 CFR 200.69) is the eligible owner of a project or a contract administrator under § 881.505 receiving financial assistance under this part, the audit requirements in 2 CFR part 200, subpart F, shall apply.
Section 881.211 establishes that when a non-Federal entity—such as a nonprofit organization or state or local government—owns a project or serves as a contract administrator under this part and receives federal financial assistance, it becomes subject to the audit requirements set out in 2 CFR Part 200, Subpart F (commonly known as the Uniform Guidance audit standards). These standards generally require covered entities to undergo periodic independent audits to ensure federal funds are being used appropriately. The rule ties audit obligations directly to the receipt of federal assistance, meaning the trigger is financial participation, not organizational type alone.
Plain English — not legal advice.
Property owners or managers who qualify as non-Federal entities under 24 CFR Part 881 § 881.211 and receive federal financial assistance through this program are generally expected to maintain financial records and engage independent auditors in accordance with 2 CFR Part 200, Subpart F. Compliant operators typically track expenditures carefully, retain supporting documentation, and coordinate with auditors on the schedule and scope required under the Uniform Guidance framework. Organizations that also serve as contract administrators under § 881.505 should be aware that this dual role does not change the audit obligation—it remains tied to the receipt of federal funds.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For tenants living in projects covered by 24 CFR Part 881 § 881.211, this provision reflects a layer of federal financial oversight designed to ensure that assistance funds reach their intended purpose. While the audit requirements are directed at owners and contract administrators rather than tenants directly, the existence of these audits means there is a formal accountability mechanism for how federal housing funds are managed. Tenants who have concerns about financial mismanagement in their housing program may find it useful to contact their local HUD field office or a tenant-rights organization familiar with federally assisted housing programs.
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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