24 C.F.R. § 886.109
§ 886.109 Housing assistance payments to owners. (24 CFR Part 886)
Operative Text
(a) General. Housing Assistance Payments shall be paid to Owners for units under lease by eligible families, in accordance with the Contract and as provided in this section. These Housing Assistance Payments will cover the difference between the Contract Rent and the Tenant Rent. Where applicable, the Utility Reimbursement will be paid to the Family as an additional Housing Assistance Payment. The Contract will provide that the Owner will make this payment on behalf of HUD. Funds will be paid to the Owner in trust solely for the purpose of making this additional payment. If the Family and the utility company consent, the Owner may pay the Utility Reimbursement jointly to the Family and the utility company or directly to the utility company. (b) No Section 8 assistance may be provided for any unit occupied by an Owner; cooperatives are considered rental housing. (c) If an Eligible Family vacates its unit (other than as a result of action by the Owner which is in violation of the Lease or the Contract or any applicable law), the Owner shall receive housing assistance payments in the amount of 80 percent of the Contract Rent for a vacancy period not exceeding 60 days: Provided, however, That if the Owner collects any of the Family's share of the rent for this period, or applies security deposits for unpaid rent, in amounts which when added to the 80 percent payments, results in more than the Contract Rent, such excess shall be payable to HUD or as HUD may direct. (See also § 886.116.) The Owner shall not be entitled to any payment under this paragraph unless he: (1) Immediately upon learning of the vacancy, has notified HUD of the vacancy or prospective vacancy and the reasons for the vacancy, and (2) Has taken and continues to take all feasible actions to fill the vacancy including, but not limited to, contacting applicants on his waiting list (if any), and advising them of the availability of the unit, and (3) Has not rejected any eligible applicant except for good cause.
Under 24 CFR Part 886 § 886.109, Housing Assistance Payments (HAP) are made to property owners on behalf of eligible families, covering the gap between the Contract Rent and the amount the tenant is responsible for paying. When a family's utility costs qualify for reimbursement, that additional payment flows through the owner to the family, or in some cases directly to the utility company with the appropriate consents. If an eligible family vacates a unit on their own accord, the owner may receive a reduced HAP of 80 percent of the Contract Rent for up to 60 days of vacancy, provided the owner promptly notifies HUD, actively works to fill the unit, and does not improperly reject eligible applicants. Owners are not permitted to receive Section 8 assistance for any unit they personally occupy.
Plain English — not legal advice.
Under § 886.109, compliant operators generally ensure that HAP funds received for utility reimbursements are held in trust and passed through to the family or utility company as required, rather than retained as general revenue. When a family vacates voluntarily, operators typically notify HUD immediately upon learning of the vacancy, document outreach efforts to fill the unit from any waiting list, and avoid rejecting eligible applicants without documented good cause in order to qualify for the 80 percent vacancy payment for up to 60 days. Operators also track any amounts collected from the departing family's share of rent or applied from security deposits during the vacancy period, since § 886.109(c) requires that combined receipts exceeding the full Contract Rent be remitted to HUD.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section § 886.109 establishes that the Housing Assistance Payment is specifically calculated to cover the difference between the Contract Rent and what the tenant owes, meaning tenants generally should not be charged more than their designated Tenant Rent share. Families who qualify for a Utility Reimbursement have a right under this provision to receive that additional payment, either directly or through an arrangement with their utility company. Tenants who believe an owner has improperly retained HAP funds, miscalculated their rent share, or failed to follow the requirements of § 886.109 may consider contacting their local HUD field office, raising the issue with a tenant-rights organization, or exploring whether the violation can be raised as a defense in a relevant proceeding.
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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