24 C.F.R. § 886.318
§ 886.318 Responsibilities of the owner. (24 CFR Part 886)
Operative Text
(a) Management and maintenance. The owner shall be responsible for the management and maintenance of the project in accordance with requirements established by HUD. 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 24 CFR part 5 of this title; selection of families, including verification of income, 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) Preparation and furnishing of information required under the contract; (6) Reexamination of family income, composition, and extent of exceptional medical or other unusual expenses; redeterminations, as appropriate, of the amount of Tenant Rent and amount of housing assistance payment in accordance with part 5 of this title; obtaining and verifying Social Security Numbers submitted by participants, as provided by CFR part 750; 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. (7) Redeterminations of the amount of Tenant Rent and the 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; (8) Notifying families in writing when they are determined to be qualified for assistance under this subpart where they have not already been notified by HUD prior to sale; (9) Reviewing at least annually the allowance for utilities and other services; (10) Compliance with equal opportunity requirements; and (11) Compliance with Federal requirements set forth in § 886.313(c). (b) Contracting for Services. 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. (c) HUD review. The owner shall permit HUD to review and audit the management and maintenance of the project at any time. (d) Submission of financial and operating statements. After execution of the Contract, the owner must submit to HUD: (1) Financial information in accordance with 24 CFR part 5, subpart H; and (2) Other statements as to project operation, financial conditions and occupancy as HUD may require pertinent to administration of the Contract and monitoring of project operations.
Under 24 CFR Part 886 § 886.318, the owner of a HUD-assisted project bears full responsibility for the day-to-day management and maintenance of the property, including paying utilities and taxes, performing all repairs, screening and selecting tenants, collecting rents, and conducting periodic income reexaminations. The owner must also comply with equal opportunity requirements and submit financial and operating statements to HUD after the contract is executed. While an owner may hire a third-party management company to carry out these duties, that arrangement does not transfer the owner's legal obligations under the provision, and HUD retains the right to review or audit the project at any time.
Plain English — not legal advice.
Operators of HUD-assisted projects covered by 24 CFR Part 886 § 886.318 generally maintain documented systems for every function the provision enumerates—utility payments, maintenance work orders, applicant eligibility determinations, income verifications, Social Security Number collection, signed consent forms, and periodic rent reexaminations. Compliant operators also review utility allowances at least annually and ensure that any third-party management contract explicitly preserves the owner's accountability to HUD, since the provision makes clear that contracting out services does not relieve the owner of responsibility. Keeping thorough records and making them readily available supports the owner's ability to respond to HUD reviews or audits as required under § 886.318(c).
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 24 CFR Part 886 § 886.318, tenants in covered HUD-assisted projects have a right to expect that the owner—not a management agent—remains ultimately accountable for proper eligibility determinations, accurate rent calculations, timely income reexaminations, and written notification of assistance qualification. If an owner appears to be failing these obligations, tenants can document the issue and raise it with the local HUD field office, which holds audit authority over the project under § 886.318(c). Tenant-rights organizations and HUD's complaint intake processes are also general resources for understanding how these owner responsibilities apply to a particular situation.
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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