24 C.F.R. § 93.400
§ 93.400 Housing Trust Fund (HTF) accounts. (24 CFR Part 93)
Operative Text
(a) General. HUD will establish an HTF United States Treasury account (HTF Treasury account) for each grantee. Each grantee may use either a separate HTF local account or a subsidiary account within its general fund (or other appropriate fund) as the HTF local account. (b) HTF Treasury account. The HTF Treasury account includes the annual grant and funds reallocated to the State by formula. (c) HTF local account. (1) The HTF local account includes deposits of HTF funds disbursed from the HTF Treasury account, any program income, and any repayments as required by § 93.403. (2) The HTF local account must be interest-bearing. (d) Reductions. HUD will reduce or recapture funds in the HTF account by the amount of: (1) Any fiscal year grant funds in the HTF Treasury account that are not committed within 24 months after the date of HUD's execution of the HTF grant agreement; (2) Any fiscal year grant funds in the HTF local account that are not expended within 5 years after the date of HUD's execution of the HTF grant agreement; (3) Any amounts pursuant to § 93.453; and (4) Amounts that the grantee fails to obtain and that were required to be reimbursed or returned under § 93.450.
Under 24 CFR Part 93 § 93.400, HUD establishes a federal Treasury account for each Housing Trust Fund grantee, while grantees maintain a separate local account—either standalone or embedded in a broader fund—that must earn interest. HTF funds flow from the Treasury account into the local account, which also captures program income and required repayments. HUD is authorized to reduce or recapture funds when grant dollars are not committed within 24 months or not fully expended within 5 years of the grant agreement's execution, or when other reimbursement obligations under related sections go unmet.
Plain English — not legal advice.
Property owners and developers seeking HTF financing should understand that under § 93.400, the grantee administering HTF funds operates under strict federal account management and timeline requirements. Compliant grantees generally track commitment and expenditure deadlines carefully—24 months to commit and 5 years to expend—because HUD can recapture unused funds, which could affect the availability of financing for projects in the pipeline. Operators working with HTF-funded programs benefit from staying in close communication with their state or local grantee to understand how these account rules may affect project funding timelines.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants living in or applying for housing supported by HTF funds should know that § 93.400 governs how grantees must hold and manage those federal dollars, including requirements that local accounts bear interest and that funds be committed and spent within defined timeframes. If HTF funds are recaptured due to a grantee's failure to meet these deadlines, it can affect the availability of affordable housing resources in a community. Tenants who have concerns about how HTF funds are being managed in their area may consider reaching out to their state housing finance agency, a local tenant-rights organization, or HUD directly to learn more about grantee compliance.
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 3, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
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