24 C.F.R. § 886.119
§ 886.119 Responsibilities of the owner. (24 CFR Part 886)
Operative Text
(a) The Owner shall be responsible for management and maintenance of the project in conformance with requirements of the Regulatory Agreement. 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, in accordance with part 5 of this title, obtaining and verifying Social Security Numbers submitted by applicants (as provided by part 5, subpart B, of this title), obtaining signed consent forms from applicants for the obtaining of wage and claim information from State Wage Information Collection Agencies (as provided in part 5, subpart B, of this title), 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; collection of rent; obtaining and verifying participant Social Security Numbers, as provided by part 5, subpart B, of this title; and obtaining signed consent forms from participants for the obtaining of wage and claim information from State Wage Information Collection Agencies, as provided by part 5, subpart B, of this title. (8) Redeterminations 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 HUD of any applicable Utility Allowance; and (9) Compliance with equal opportunity requirements. (b) In the event of a financial default under the project mortgage, HUD shall have the right to make subsequent Housing Assistance Payments to the mortgagee until such time as the default is cured, or, at the option of the mortgagee and subject to HUD approval, until some other agreed-upon time. (c) 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 shift any of the Owner's responsibilities or obligations.
Under 24 CFR Part 886 § 886.119, the owner of a federally assisted housing project bears broad responsibility for keeping the property managed and maintained in line with the Regulatory Agreement. This covers a wide range of duties—from paying utilities, taxes, and insurance, to screening and selecting tenants, collecting rent, conducting periodic income reexaminations, and complying with equal opportunity rules. If the project mortgage goes into default, HUD gains the right to redirect housing assistance payments to the mortgage lender until the default is resolved. An owner may hire a third-party management company to carry out these functions, but doing so does not transfer the owner's underlying legal obligations.
Plain English — not legal advice.
Owners operating under 24 CFR Part 886 § 886.119 are generally expected to maintain active oversight of every core management function—tenant eligibility screening, income verification, Social Security Number collection, rent calculation, lease enforcement, and periodic reexaminations—even when a third-party property manager is engaged under contract. Compliant operators keep documentation current for all HUD-required processes, including signed consent forms for wage and claim information, and promptly adjust tenant rent and housing assistance payment amounts whenever HUD revises applicable Utility Allowances. Because § 886.119(c) makes clear that contracting out services does not relieve the owner of responsibility, owners typically build strong oversight and audit mechanisms into any management agreements they execute.
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 886 § 886.119 have a right to expect that the owner—not just any hired management company—remains accountable for proper eligibility determinations, accurate rent calculations, timely income reexaminations, and equal opportunity compliance. If a tenant believes these obligations are not being met, general enforcement paths include raising the issue directly with the property owner in writing, filing a complaint with the relevant HUD field office, or reaching out to a local tenant-rights organization for guidance on available remedies. Because § 886.119 ties these duties to the Regulatory Agreement and HUD oversight, tenants may also find it useful to review their lease and any project-specific documents to understand how these federal requirements are incorporated.
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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