24 C.F.R. § 882.412
§ 882.412 Subcontracting of owner services. (24 CFR Part 882)
Operative Text
(a) General. Any Owner may contract with any private or public entity to perform for a fee the services required by the Agreement, Contract or Lease, provided that such contract may not shift any of the Owner's responsibilities or obligations. (b) PHA management. If the Owner and a PHA wish to enter into a management contract, they may do so provided that: (1) The Housing Assistance Payments Contract with respect to the housing involved is administered by another PHA, or (2) Should another PHA not be available and willing to administer the Housing Assistance Payments Contract and no other management alternative exists, the HUD Field Office may authorize PHA management of units administered by the PHA in accordance with specified criteria. (3) Notwithstanding the provisions of § 882.408 (b) and (c), a PHA may not approve, without prior HUD approval, rents which exceed the appropriate Moderate Rehabilitation Fair Market Rent for a unit for which it provides the management functions under this section.
Under 24 CFR Part 882 § 882.412, a property owner participating in the Section 8 Moderate Rehabilitation program may hire a third party—including a Public Housing Authority (PHA)—to carry out the day-to-day services required by the program agreement, contract, or lease. However, that arrangement does not transfer the owner's legal responsibilities; the owner remains fully accountable under the program. When a PHA acts as the property manager, specific conditions apply, including restrictions on who may administer the Housing Assistance Payments Contract and a requirement for prior HUD approval before rents can be set above the applicable Moderate Rehabilitation Fair Market Rent.
Plain English — not legal advice.
Owners operating under 24 CFR Part 882 § 882.412 who choose to subcontract management services—whether to a private firm or a PHA—generally ensure that any management agreement explicitly preserves the owner's full obligations under the Housing Assistance Payments Contract. Compliant operators understand that delegating tasks does not delegate liability, so they maintain oversight of the contracted entity's performance. When a PHA is engaged as the manager, owners and PHAs typically confirm that the Housing Assistance Payments Contract is administered by a separate PHA, or that HUD Field Office authorization has been obtained if no other administrator is available, and they seek prior HUD approval before agreeing to any rents above the Moderate Rehabilitation Fair Market Rent threshold established under this section.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants living in units covered by 24 CFR Part 882 § 882.412 should be aware that even if a property is managed by a third party or a PHA, the owner of record remains responsible for fulfilling all obligations under the lease and the Housing Assistance Payments Contract. If a tenant experiences problems—such as unresolved maintenance issues or questions about rent levels—those concerns can generally be raised with the administering PHA, the HUD Field Office, or a local tenant-rights organization familiar with Section 8 Moderate Rehabilitation rules. Tenants who believe rents have been set above the applicable Moderate Rehabilitation Fair Market Rent without proper HUD approval, as required under this section, may have grounds to raise that issue as part of a complaint or administrative process.
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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