24 C.F.R. § 884.120
§ 884.120 Responsibility for contract administration and defaults (private-owner/PHA projects). (24 CFR Part 884)
Operative Text
(a) Contract administration. The PHA is primarily responsible for administration of the Contract, subject to review and audit by HUD. (b) Defaults by PHA and/or owner. (1) The ACC and the Contract shall contain a provision to the effect that in the event of failure of the PHA to comply with the Contract with the Owner, the Owner shall have the right, if he is not in default, to demand that HUD determine, after notice to the PHA giving it a reasonable opportunity to take corrective action, whether a substantial default exists, and if HUD determines that such a default exists, that HUD assure that the obligations of the PHA to the Owner are carried out. (2) The ACC shall contain a provision to the effect that if the PHA fails to comply with any of its obligations (including specifically failure to enforce its rights under the Contract, in the event of any default by the Owner, to achieve compliance to the satisfaction of HUD or to terminate the Contract in whole or in part, as directed by HUD), HUD may, after notice to the PHA giving it a reasonable opportunity to take corrective action, determine that there is a substantial default and require the PHA to assign to HUD all of the PHA's rights and interests under the Contract. In such case, HUD will continue to pay annual contributions in accordance with the terms of the ACC and the Contract. (3) The Contract shall contain a provision to the effect (i) that if the PHA determines that the Owner is in default under the Contract, the PHA shall notify the Owner, with a copy to HUD and RHCDS, of the actions required to be taken to cure the default and of the remedies to be applied by the PHA including abatement of housing assistance payments and recovery of overpayments, where appropriate; and (ii) that if he fails to cure the default, the PHA has the right to terminate the Contract or to take other corrective action, in its discretion or as directed by HUD.
Section 884.120 establishes a layered accountability structure for contracts between private owners and Public Housing Authorities (PHAs) under HUD's Section 8 program. The PHA bears primary responsibility for day-to-day contract administration, but HUD retains oversight authority through review and audit. When either party—the PHA or the private owner—fails to meet its contractual obligations, the regulation sets out a formal escalation process: notice must be given, a reasonable opportunity to correct the problem must be provided, and HUD can ultimately step in to enforce obligations or require the PHA to assign its contract rights directly to HUD.
Plain English — not legal advice.
Under 24 CFR Part 884 § 884.120, private owners participating in PHA-administered Section 8 contracts should be aware that the PHA is their primary point of contact for contract compliance, but HUD serves as a backstop authority. A compliant owner generally maintains records demonstrating adherence to contract terms, responds promptly to any PHA notices of default, and takes corrective action within the timeframes specified in such notices. Owners who are not themselves in default have a defined right under this provision to request that HUD assess whether the PHA has substantially failed to meet its obligations and to seek assurance that those obligations will be fulfilled.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
While 24 CFR Part 884 § 884.120 primarily governs the relationship between PHAs, private owners, and HUD rather than directly addressing tenant rights, the oversight and enforcement mechanisms it establishes are relevant to tenants living in affected properties. When a private owner is found to be in default, the PHA is required to notify the owner of required corrective actions, which can include abatement of housing assistance payments—a process that can affect housing conditions and assistance continuity. Tenants who believe their housing conditions reflect a breakdown in contract compliance may find it useful to contact their local PHA, reach out to a HUD field office, or connect with a tenant-rights organization familiar with Section 8 program rules under this part.
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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