24 C.F.R. § 982.504
§ 982.504 Payment standard for family in restructured subsidized multifamily project. (24 CFR Part 982)
Operative Text
(a) This section applies to HCV assistance if all the following conditions are applicable: (1) Such HCV assistance is provided to a family pursuant to 24 CFR 401.421 when HUD has approved a restructuring plan, and the participating administrative entity has approved the use of tenant-based assistance to provide continued assistance for such families. Such tenant-based voucher assistance is provided for a family previously receiving project-based assistance in an eligible project (as defined in § 401.2 of this title) at the time when the project-based assistance terminates. (2) The family chooses to remain in the restructured project with HCV assistance under the program and leases a unit that does not exceed the family unit size; (3) The lease for such assisted tenancy commences during the first year after the project-based assistance terminates. (b) The initial payment standard for the family under such initial lease is the sum of the reasonable rent to owner for the unit plus the utility allowance for tenant-paid utilities. (Determination of such initial payment standard for the family is not subject to paragraphs (c)(1) and (c)(2) of § 982.505. Except for determination of the initial payment standard as specifically provided in paragraph (b) of this section, the payment standard and housing assistance payment for the family during the HAP contract term shall be determined in accordance with § 982.505.)
Section 982.504 establishes a special payment standard calculation that applies when a family transitions from project-based assistance to a Housing Choice Voucher (HCV) after HUD approves a restructuring plan for a subsidized multifamily project. To qualify, the family must choose to stay in the restructured project, occupy a unit no larger than their designated family unit size, and begin their assisted lease within the first year after the project-based assistance ends. Under this rule, the initial payment standard is set by adding the reasonable rent for the unit to the utility allowance for tenant-paid utilities — bypassing the usual caps described in § 982.505(c)(1) and (c)(2) — though subsequent payment standard determinations revert to the standard § 982.505 methodology.
Plain English — not legal advice.
Property owners and managers overseeing projects subject to a HUD-approved restructuring plan under 24 CFR Part 401 should be aware that § 982.504 governs how the initial payment standard is calculated for families who remain in the project after project-based assistance terminates and transition to tenant-based vouchers. Compliant operators generally work with the participating administrative entity to document the reasonable rent for each unit and the applicable utility allowance, since those two figures together form the initial payment standard under this provision. After the initial lease term, payment standard determinations follow the ordinary rules of § 982.505, so operators typically track when the transition year ends to ensure proper HAP contract administration going forward.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under § 982.504, if you were receiving project-based assistance in an eligible restructured multifamily project and your project-based assistance has ended, you may have the right to continue receiving housing assistance through a Housing Choice Voucher if you choose to stay in the same project and sign a new lease within the first year of the transition. This provision sets your initial payment standard using the reasonable rent plus your utility allowance, which can differ from the standard payment standard limits that would otherwise apply under § 982.505. If you believe this provision applies to your situation and you have questions about how your payment standard was calculated, you can contact your local Public Housing Authority, reach out to a HUD-approved housing counseling agency, or connect with a tenant-rights organization for general guidance.
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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