24 C.F.R. § 883.606
§ 883.606 Administration fee. (24 CFR Part 883)
Operative Text
(a) The State Agency is responsible for administration of the Contract subject to periodic review and audit by HUD. (b) The Agency is entitled to a reasonable fee, determined by HUD, for administering a Contract on newly constructed or substantially rehabilitated units provided there is no override on the permanent loan granted by the Agency to the owner for a project containing assisted units.
Under 24 CFR Part 883 § 883.606, the State Agency bears primary responsibility for overseeing the Housing Assistance Payments Contract, while HUD retains oversight authority through periodic reviews and audits. Separately, the rule establishes that a State Agency may collect a reasonable administration fee—set by HUD—for managing a Contract covering newly constructed or substantially rehabilitated units. This fee entitlement applies only when the Agency has not collected an override on the permanent loan it made to the owner of a project that includes assisted units.
Plain English — not legal advice.
Owners and managers of projects subject to 24 CFR Part 883 § 883.606 should be aware that the State Agency administering their Housing Assistance Payments Contract may charge an administration fee on newly constructed or substantially rehabilitated units, with the fee amount determined by HUD rather than the Agency itself. Compliant operators generally account for this fee structure when reviewing their loan and contract terms, particularly noting that the fee applies only in the absence of a loan override granted by the Agency. Keeping clear records of loan terms and any Agency communications helps operators understand which fee conditions apply to their project.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For tenants living in housing covered by 24 CFR Part 883 § 883.606, this provision primarily governs the financial and administrative relationship between the State Agency and HUD, rather than directly regulating tenant rights or rent amounts. However, understanding that HUD conducts periodic reviews and audits of the Contract administration may be relevant context if concerns arise about how the program is being managed. Tenants who believe the Contract governing their unit is not being properly administered can contact their local HUD field office, reach out to a tenant-rights organization, or inquire with the State Agency directly for information about oversight processes.
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.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.