24 C.F.R. § 888.301
§ 888.301 Purpose and scope. (24 CFR Part 888)
Operative Text
(a) Purpose. This subpart describes the basic policies and procedures for the retroactive payment of Housing Assistance Payments to eligible project owners for the period from October 1, 1979 to May 31, 1991 and for one-time Contract Rent determinations for such eligible project owners. (b) Applicability. This subpart applies to all project-based Section 8 Housing Assistance Payments Contracts under New Construction (Part 880); Substantial Rehabilitation (Part 881); State Finance Agencies (Part 883); and Section 515 Farmers Home Administration (Part 884). It also applies to those projects under Section 202 Elderly or Handicapped (Part 885) and Special Allocations (Part 886, Subparts A and C) whose Contract Rents are adjusted by use of the Annual Adjustment Factors (AAFs), as described in subpart B of this part. (c) Eligible project owners. Project owners may be eligible for retroactive payments if, during the period from October 1, 1979 to May 31, 1991: (1) The use of a comparability study by HUD (or the Contract Administrator), which was conducted as an independent limitation on the amount of rent adjustment that would have resulted from use of the applicable AAF, resulted in the reduction of the maximum monthly Contract Rents for units covered by a Housing Assistance Payments (HAP) contract or resulted in less than the maximum increase for those units than would otherwise be permitted by the AAF; or (2) The HAP contract required a project owner to request annual rent adjustments, and the project owner certifies that a request was not made because of an anticipated reduction of the maximum monthly Contract Rents resulting from a comparability study.
Section 888.301 establishes the framework for a retroactive Housing Assistance Payments (HAP) program covering a specific historical window—October 1, 1979 through May 31, 1991. During that period, HUD or a Contract Administrator sometimes used comparability studies to cap rent adjustments below what the Annual Adjustment Factors (AAFs) would have otherwise allowed; this subpart creates a mechanism to address those reductions. The provision also covers situations where a project owner did not request an annual rent adjustment because they anticipated that a comparability study would reduce it anyway. Eligibility is limited to project-based Section 8 contracts under several specific federal housing programs, including New Construction, Substantial Rehabilitation, State Finance Agencies, Section 515 Farmers Home Administration, and certain Section 202 and Special Allocation projects.
Plain English — not legal advice.
Under 24 CFR § 888.301, property owners operating project-based Section 8 contracts during the 1979–1991 period may have a basis to seek retroactive HAP payments if comparability studies suppressed their Contract Rents below AAF-permitted levels. Compliant operators in this context typically document the relevant HAP contract terms, identify the specific periods when comparability studies were applied, and verify that their project type falls within the enumerated programs—Parts 880, 881, 883, 884, 885, or 886 Subparts A and C. Owners who did not submit rent adjustment requests during that window due to anticipated comparability reductions should also review whether the certification pathway described in § 888.301(c)(2) applies to their contracts.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 888.301 governs a retroactive payment program directed at project owners, not individual tenants, for a historical period ending in 1991—so its direct effect on current tenant rights is limited. However, tenants living in project-based Section 8 housing covered by the programs listed in § 888.301(b) may find it useful to understand how Contract Rents in their building were historically set, particularly if questions arise about rent histories or HAP contract terms. Tenants with concerns about how their building's rent structure has been administered can consult a local tenant-rights organization or HUD's regional office for guidance on accessing relevant contract records.
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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