24 C.F.R. § 886.131
§ 886.131 Audit. (24 CFR Part 886)
Operative Text
Where a non-Federal entity (as defined in 2 CFR 200.69) is the eligible owner of a project, or is a contract administrator under § 886.120, receiving financial assistance under this part, the audit requirements in 2 CFR part 200, subpart F, shall apply.
Section 886.131 establishes that when a non-Federal entity—such as a state or local government, nonprofit organization, or other qualifying body—owns an assisted housing project or serves as a contract administrator under this program and receives federal financial assistance through 24 CFR Part 886, it becomes subject to the audit requirements set out in 2 CFR Part 200, Subpart F. Those audit requirements, commonly known as the 'Uniform Guidance' audit standards, generally mandate periodic independent audits to ensure federal funds are being used appropriately. The rule ties audit obligations directly to the receipt of federal assistance, meaning the trigger is financial participation in the program rather than organizational type alone.
Plain English — not legal advice.
Eligible owners who qualify as non-Federal entities under this program should be aware that receiving financial assistance under 24 CFR Part 886 activates the audit obligations described in § 886.131. Compliant operators typically maintain financial records in a manner consistent with 2 CFR Part 200, Subpart F, engage qualified independent auditors on the required schedule, and submit audit findings through the appropriate federal reporting channels. Organizations that also serve as contract administrators under § 886.120 face the same audit requirements and generally keep documentation that clearly separates program expenditures from other organizational finances.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For tenants living in housing assisted under 24 CFR Part 886, § 886.131 is a financial accountability provision rather than one that directly governs rents or tenancy rights. It ensures that the owners or administrators managing these federally assisted properties are subject to independent auditing, which is one mechanism designed to promote proper use of program funds. Tenants who have concerns about how program funds are being managed in their building may contact HUD's local field office or a tenant-rights organization to understand what oversight channels are available 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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