24 C.F.R. § 891.853
§ 891.853 Development cost limits. (24 CFR Part 891)
Operative Text
The Development Cost Limits for development activities, as established at § 891.140, apply to Section 202 or 811 supportive housing units in mixed-finance developments under this subpart.
Under 24 CFR Part 891 § 891.853, the federal cost ceilings that govern how much can be spent on developing supportive housing units are not waived simply because a project uses a mixed-finance structure. The Development Cost Limits established elsewhere in the regulations (at § 891.140) continue to apply to any Section 202 or Section 811 units that are part of a mixed-finance development. In other words, the inclusion of private or other financing sources does not exempt those federally assisted units from the standard cost caps.
Plain English — not legal advice.
Owners and developers pursuing mixed-finance projects that include Section 202 or Section 811 supportive housing units should be aware that § 891.853 keeps the Development Cost Limits of § 891.140 fully in effect for those units. Compliant operators typically track and document development costs attributable to the federally assisted units separately, ensuring those figures remain within the applicable limits throughout the project's development phase. Familiarity with both the mixed-finance subpart and the cost-limit provisions at § 891.140 is a standard part of due diligence in structuring these transactions.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For residents living in Section 202 or Section 811 supportive housing units within a mixed-finance development, § 891.853 means that federal cost protections built into the program were not bypassed during the project's development. If there are concerns about whether a project was developed in compliance with federal requirements, tenants can raise questions with the local HUD field office, which oversees compliance with these provisions. Tenant-rights organizations familiar with HUD-assisted housing can also help residents understand how § 891.853 and the broader Section 202 or 811 framework may be relevant to their housing 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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