24 C.F.R. § 884.119
§ 884.119 Responsibility for contract administration and defaults (private-owner and PHA-owner projects). (24 CFR Part 884)
Operative Text
(a) Contract administration. HUD is responsible for administration of the Contract. HUD may contract with another entity for the performance of some or all of its Contract administration functions. (b) Defaults by owner. The Contract shall contain a provision to the effect (1) that if HUD determines that the Owner is in default under the Contract, HUD shall notify the Owner (with a copy to RHCDS) of the actions required to be taken to cure the default and of the remedies to be applied by HUD including abatement of housing assistance payments and recovery of overpayments, where appropriate; and (2) that if he fails to cure the default, HUD has the right to terminate the Contract or to take other corrective action.
Under 24 CFR Part 884 § 884.119, HUD holds primary responsibility for overseeing the housing assistance payment contract, though it may delegate some or all of those administrative duties to another entity. When HUD finds that an owner has failed to meet contract obligations, the contract must include a process by which HUD notifies the owner of what steps are needed to fix the problem and what consequences may follow, including the suspension of housing assistance payments or recovery of funds already paid. If the owner does not correct the identified deficiencies, HUD retains the authority to terminate the contract or pursue other corrective measures.
Plain English — not legal advice.
Owners participating under 24 CFR Part 884 § 884.119 should be aware that HUD—or a designated entity acting on its behalf—actively monitors compliance with the housing assistance payment contract. A compliant operator generally maintains ongoing adherence to all contract terms so that no default determination is triggered, keeps records sufficient to demonstrate compliance, and responds promptly and thoroughly to any HUD notice identifying deficiencies. Operators also account for the possibility that unresolved defaults can result in abatement of assistance payments, recovery of prior payments, or outright contract termination.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants living in projects covered by 24 CFR Part 884 § 884.119 benefit from a federal oversight structure in which HUD monitors whether owners are meeting their contractual obligations. If an owner is found in default and housing assistance payments are abated or a contract is terminated, those actions can affect the availability and continuity of subsidized housing. Tenants who believe an owner is not meeting program requirements may contact their local HUD field office, reach out to a HUD-approved housing counseling agency, or connect with a tenant-rights organization to learn about available options under this provision.
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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