24 C.F.R. § 888.420
§ 888.420 One-time Contract Rent determination. (24 CFR Part 888)
Operative Text
(a) Determining the amount of the new Contract Rent. Project owners eligible for retroactive payments, as described in § 888.401(c), may request a one-time Contract Rent determination, to be effective as described in paragraph (c) of this section. The request for a one-time rent determination must be made when submitting a request for retroactive payments, as described in § 888.415. If no claim for retroactive payments is made, an owner may submit only the request for a one-time rent determination, provided the owner is eligible for retroactive payments. The new Contract Rent under this provision will be the greater of: (1) The Contract Rent currently approved by the PHA; or (2) An amount equal to the Contract Rent as adjusted to May 31, 1991 under § 888.405(a). (b) Currently approved rent. The Contract Rent currently approved by the PHA is the Contract Rent stated in the most recent amendment to the HAP Contract signed by both the PHA and the owner. (c) Effective date of new Contract Rent. The new Contract Rent, determined under paragraph (a) of this section, will be effective on May 31, 1991.
Under 24 CFR Part 888 § 888.420, certain project owners who qualify for retroactive payments have a one-time opportunity to have their Contract Rent recalculated. The recalculated rent is set at whichever is higher: the rent most recently approved by the Public Housing Authority (PHA) as reflected in the latest signed HAP Contract amendment, or the rent that would have resulted from applying the adjustment formula under § 888.405(a) through May 31, 1991. Regardless of when the request is processed, the new Contract Rent takes effect as of May 31, 1991.
Plain English — not legal advice.
Project owners operating under 24 CFR Part 888 § 888.420 who are eligible for retroactive payments generally submit their one-time Contract Rent determination request alongside any retroactive payment claim filed under § 888.415. If an owner chooses not to pursue retroactive payments, the one-time rent determination request may still be submitted independently, as long as the owner meets the eligibility criteria for retroactive payments. Compliant operators typically ensure that the most recent PHA-signed HAP Contract amendment is on file and accurately reflects the currently approved Contract Rent, since that figure is one of the two values compared when calculating the new rent.
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 covered by 24 CFR Part 888 § 888.420, this provision governs how a project owner's Contract Rent may be recalculated through a one-time determination process tied to a May 31, 1991 effective date. Because Contract Rent levels can affect the overall financial structure of a subsidized housing project, tenants who have questions about how rent adjustments under this section may affect their housing situation can reach out to a local tenant-rights organization or HUD's regional office for general information. Tenants may also review their own HAP Contract-related notices and consult publicly available HUD resources to better understand how § 888.420 applies to their building.
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.
Effective Timeline
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