24 C.F.R. § 886.111
§ 886.111 Term of contract. (24 CFR Part 886)
Operative Text
A Contract may be for an initial term of not more than 5 years, renewable for successive 5 year terms by agreement between HUD and the Owner: Provided, That the total Contract term, including renewals, shall not exceed 15 years.
Under 24 CFR Part 886 § 886.111, a housing assistance payments contract entered into under this program may initially run for up to five years. The parties may renew the contract in successive five-year increments by mutual agreement, but the combined length of the original term and all renewals is capped at fifteen years total. Once that ceiling is reached, no further extensions are permitted under this provision.
Plain English — not legal advice.
Owners participating under 24 CFR Part 886 § 886.111 generally structure their contracts with HUD with an awareness of the five-year initial term and the fifteen-year lifetime maximum. Compliant operators typically track contract expiration dates well in advance so that renewal discussions with HUD can be initiated in a timely manner. Because renewals require mutual agreement, owners commonly maintain open communication with HUD throughout the contract period to facilitate any continuation of assistance.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants living in housing covered by 24 CFR Part 886 § 886.111 should be aware that the housing assistance payments contract governing their building has a defined lifespan, with a maximum of fifteen years including all renewals. As a contract approaches its expiration, tenants may wish to inquire with their local HUD field office or a tenant-rights organization about what protections or transition options may apply. Understanding the contract's remaining term can help tenants anticipate changes in their housing situation and explore available resources through HUD or local advocacy groups.
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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