24 C.F.R. § 93.403
§ 93.403 Program income and repayments. (24 CFR Part 93)
Operative Text
(a) Program income. Program income must be treated as HTF funds and must be used in accordance with the requirements of this part. Program income must be deposited in the grantee's HTF local account unless the grantee permits a subgrantee to retain the program income for additional HTF projects pursuant to the written agreement required by § 93.404(b). The grantee must report the program income received as well as the use of the program income in the disbursement and information system that HUD designates for the HTF. (b) Repayments. (1) Any HTF funds invested in housing that does not meet the affordability requirements for the period specified in § 93.302 or § 93.304, as applicable, must be repaid by the grantee in accordance with paragraph (b)(3) of this section. (2) Any HTF funds invested in a project that is terminated before completion, either voluntarily or otherwise, must be repaid by the grantee, in accordance with paragraph (b)(3) of this section. (3) HUD will instruct the grantee to either repay the funds to the HTF Treasury account or the local account. Generally, if the HTF funds were disbursed from the grantee's HTF Treasury account, they must be repaid to the HTF Treasury account. If the HTF funds were disbursed from the grantee's HTF local account, they must be repaid to the local account. (4) If the grantee is no longer a grantee in the HTF program when the repayment is made, the funds must be remitted to HUD and reallocated in accordance with § 93.54 of this part.
Under 24 CFR Part 93 § 93.403, money generated from Housing Trust Fund (HTF) investments—called program income—must continue to be treated as HTF funds and used according to HTF rules, with earnings deposited into the grantee's HTF local account unless a subgrantee is authorized to retain them for additional HTF projects. If HTF-funded housing fails to maintain required affordability for the designated period, or if a funded project is terminated before completion, the grantee must repay those funds to either the HTF Treasury account or the local account, depending on where the original disbursement came from. Grantees that have since left the HTF program must remit any required repayments directly to HUD for reallocation.
Plain English — not legal advice.
Property owners and developers participating in HTF-funded projects should be aware that under 24 CFR Part 93 § 93.403, the grantee overseeing their project bears repayment obligations if affordability requirements are not maintained or if a project is terminated early. Compliant operators generally ensure that any income generated by HTF-assisted properties is tracked and reported through HUD's designated disbursement and information system, and that project agreements clearly address how program income will be handled. Understanding these repayment triggers can inform how operators structure project timelines and affordability commitments.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants living in HTF-assisted housing may find it useful to know that 24 CFR Part 93 § 93.403 establishes repayment obligations when HTF-funded properties fail to meet affordability requirements for the required period. This means the affordability commitments attached to HTF housing are backed by financial accountability mechanisms at the grantee level, which can support the continued availability of affordable units. Tenants who believe their housing is no longer meeting HTF affordability standards may consider contacting their local HUD office or a tenant-rights organization to learn about available options.
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.
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