24 C.F.R. § 891.445
§ 891.445 Conditions for receipt of vacancy payments for assisted units. (24 CFR Part 891)
Operative Text
(a) General. Vacancy payments under the PRAC will not be made unless the conditions for receipt of these project rental assistance payments set forth in this section are fulfilled. (b) Vacancies during rent-up. For each unit (or residential space in a group home) that is not leased as of the effective date of the PRAC, the Owner is entitled to vacancy payments in the amount of 50 percent of the per unit operating cost (or pro rata share of the group home operating cost) for the first 60 days of vacancy, if the Owner: (1) Conducted marketing in accordance with § 891.400(a) and otherwise complied with § 891.400; (2) Has taken and continues to take all feasible actions to fill the vacancy; and (3) Has not rejected any eligible applicant except for good cause acceptable to HUD. (c) Vacancies after rent-up. If an eligible household vacates an assisted unit (or residential space in a group home) the Owner is entitled to vacancy payments in the amount of 50 percent of the approved per unit operating cost (or pro rata share of the group home operating cost) for the first 60 days of vacancy if the Owner: (1) Certifies that it did not cause the vacancy by violating the lease, the PRAC, or any applicable law; (2) Notified HUD of the vacancy or prospective vacancy and the reasons for the vacancy upon learning of the vacancy or prospective vacancy; (3) Has fulfilled and continues to fulfill the requirements specified in § 891.400(a) (2) and (3) and § 891.445(b) (2) and (3); and (4) For any vacancy resulting from the Owner's eviction of an eligible household, certifies that it has complied with § 891.430. (d) Prohibition of double compensation for vacancies. If the Owner collects payments for vacancies from other sources (tenant rent, security deposits, payments under § 891.435(c), or governmental payments under other programs), the Owner shall not be entitled to collect vacancy payments to the extent these collections from other sources plus the vacancy payment exceed the approved per unit operating cost.
Under 24 CFR Part 891 § 891.445, vacancy payments through a Project Rental Assistance Contract (PRAC) are available to owners of assisted units only when specific conditions are met. During initial rent-up and after a tenant vacates, an owner may receive up to 50 percent of the per-unit operating cost for the first 60 days of vacancy, provided marketing, outreach, and applicant-screening requirements were followed. Owners cannot collect vacancy payments that, combined with other compensation sources, exceed the approved per-unit operating cost.
Plain English — not legal advice.
Under § 891.445, compliant operators document their marketing efforts in accordance with § 891.400, promptly notify HUD when a vacancy occurs or is anticipated, and avoid rejecting eligible applicants without cause acceptable to HUD. Owners also certify that vacancies were not caused by their own lease or legal violations, and track all other compensation received for vacant units to ensure total collections do not exceed the approved per-unit operating cost.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section § 891.445 establishes conditions that owners must satisfy before receiving federal vacancy payments, which means owners are expected to actively market units, avoid improper rejections, and follow proper eviction procedures under § 891.430. Tenants who believe an owner improperly rejected their application or caused a vacancy through a lease violation may have grounds to raise those facts with HUD or a tenant-rights organization familiar with PRAC-assisted housing.
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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