24 C.F.R. § 884.118

§ 884.118 Responsibilities of the owner. (24 CFR Part 884)

In Force
Verified 8/21/2026 · Next check 9/20/2026
effective 8/21/2026FederalAffordable Housing Programs

Operative Text

24 C.F.R. § 884.118
(a) The Owner shall be responsible (subject to post-review or audit by HUD or the PHA, as the case may be) for management and maintenance of the project. These responsibilities shall include but not be limited to:

(1) Payment for utilities and services (unless paid directly by the Family), insurance and taxes;

(2) Performance of all ordinary and extraordinary maintenance;

(3) Performance of all management functions, including the taking of applications; determining eligibility of applicants in accordance with part 5 of this title; selection of families, including verification of income, provision of Federal selection preferences in accordance with 24 CFR part 5, obtaining and verifying Social Security Numbers submitted by applicants (as provided by 24 CFR part 5), obtaining signed consent forms from applicants for the obtaining of wage and claim information from State Wage Information Collection Agencies (as provided in 24 CFR part 5), and other pertinent requirements; and determination of the amount of tenant rent in accordance with HUD established schedules and criteria;

(4) Collection of Tenant Rents;

(5) Termination of tenancies, including evictions;

(6) Preparation and furnishing of information required under the Contract;

(7) Reexamination of family income and composition; redetermination, as appropriate, of the amount of Tenant Rent and the amount of housing assistance payment in accordance with part 5 of this title; obtaining and verifying Social Security Numbers submitted by participants, as provided by 24 CFR part 5; and obtaining signed consent forms from participants for the obtaining of wage and claim information from State Wage Information Collection Agencies, as provided by 24 CFR part 5;

(8) Redetermination of amount of Tenant Rent and amount of housing assistance payment in accordance with part 5 of this title as a result of an adjustment by the PHA or HUD, as appropriate, of any applicable Utility Allowance; and

(9) Compliance with equal opportunity requirements issued by RHCDS and HUD with respect to project operation.

(b) Subject to HUD approval, any Owner may contract with any private or public entity to perform for a fee the services required by paragraph (a) of this section: Provided, That such contract shall not relieve the Owner of his responsibilities or obligations. However, no entity which is responsible for administration of the Contract (for example, a PHA in the case of a Private-Owner/PHA Project) may contract to perform management and maintenance of the project: Provided, however, That this prohibition shall not preclude management by the PHA in the event it takes possession as the result of foreclosure or assignment in lieu of foreclosure. (See, however, § 884.123(b), which permits conversion of a Private-Owner/PHA Project to a Private-Owner Project.)
Source: Legislative text reproduced verbatim
Plain English

Under 24 CFR Part 884 § 884.118, the owner of a Section 884 housing project bears primary responsibility for the full range of property management and maintenance duties, including paying utilities and taxes, performing repairs, screening and selecting applicants, collecting rent, conducting income reexaminations, and complying with equal opportunity requirements. HUD or the relevant Public Housing Authority (PHA) retains the right to review or audit how these duties are carried out. While an owner may hire a third-party management company to handle these functions, that arrangement does not transfer the owner's legal accountability — and the entity administering the housing assistance contract generally cannot serve as the project's management agent.

Written by anthropic/claude-sonnet-4.6 · Reviewed on September 4, 2026

Plain English — not legal advice.

For Property Managers

Owners operating under 24 CFR Part 884 § 884.118 are expected to maintain documented systems covering every function listed in the provision — from routine maintenance and utility payments to applicant eligibility screening, income verification, Social Security Number collection, and periodic reexaminations of tenant income and rent levels. When a third-party property management firm is engaged, HUD approval is required, and the owner remains the accountable party for all contractual and regulatory obligations. Compliant operators typically keep clear records of management contracts, consent forms, income determinations, and equal opportunity compliance activities so that any post-review or audit by HUD or the PHA can be addressed efficiently.

General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.

For Tenants

Under 24 CFR Part 884 § 884.118, residents of Section 884 projects have a right to expect that the owner — not just any hired management company — is ultimately responsible for proper maintenance, accurate rent calculations, lawful applicant selection, and timely income reexaminations. If a tenant believes these obligations are not being met, options generally include raising the owner's non-compliance as a relevant issue in any formal proceeding, filing a complaint with HUD or the applicable PHA, or reaching out to a local tenant-rights organization familiar with federal housing assistance programs. Because HUD and the PHA hold audit and review authority over the owner's performance under § 884.118, those agencies can be a meaningful point of contact when management failures are documented.

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

Current
Aug 21, 2026
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Related Rules

§ 1437
Declaration of policy and public housing agency organization
§ 5.100
§ 5.100 Definitions.
§ 5.107
§ 5.107 Audit requirements for non-profit organizations.

Source Information

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