42 U.S.C. § 1434
Records; contents; examination and audit (THE PUBLIC HEALTH AND WELFARE (42 U.S.C.))
Operative Text
Every contract between the Department of Housing and Urban Development and any person or local body (including any corporation or public or private agency or body) for a loan, advance, grant, or contribution under the United States Housing Act of 1937, as amended [ et seq.], the Housing Act of 1949, as amended [ et seq.], or any other Act shall provide that such person or local body shall keep such records as the Department of Housing and Urban Development shall from time to time prescribe, including records which permit a speedy and effective audit and will fully disclose the amount and the disposition by such person or local body of the proceeds of the loan, advance, grant, or contribution, or any supplement thereto, the capital cost of any construction project for which any such loan, advance, grant, or contribution is made, and the amount of any private or other non-Federal funds used or grants-in-aid made for or in connection with any such project. No mortgage covering new or rehabilitated multifamily housing (as defined in ) shall be insured unless the mortgagor certifies that he will keep such records as are prescribed by the Secretary of Housing and Urban Development at the time of the certification and that they will be kept in such form as to permit a speedy and effective audit. The Department of Housing and Urban Development and the Comptroller General of the United States shall have access to and the right to examine and audit such records. This section shall become effective on the first day after the first full calendar month following the date of approval of the Housing Act of 1961.
Under 42 U.S.C. § 1434, federal housing contracts and insured multifamily mortgage arrangements must include recordkeeping requirements set by the Department of Housing and Urban Development. These records must be detailed enough to allow swift and thorough audits, covering how federal funds were used, construction costs, and any non-federal contributions. Both HUD and the Comptroller General hold the authority to access and review those records at any time.
Plain English — not legal advice.
Property owners and managers who receive HUD loans, grants, advances, or contributions—or who hold insured multifamily mortgages under 42 U.S.C. § 1434—are generally expected to maintain organized financial and project records in the format HUD prescribes. Compliant operators typically document fund disbursements, construction costs, and any non-federal funding sources in a manner that supports rapid audit review. Mortgagors seeking HUD-insured financing on new or rehabilitated multifamily housing must also certify their commitment to these recordkeeping standards as a condition of insurance.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
While 42 U.S.C. § 1434 primarily governs the obligations of entities receiving federal housing funds rather than individual tenant rights, the transparency it creates can be relevant to residents in federally assisted housing. If tenants have concerns about how federal funds are being managed in their housing development, they may contact HUD directly or reach out to a local tenant-rights organization for guidance on available oversight mechanisms. Understanding that HUD and the Comptroller General have audit authority under this provision can help tenants identify appropriate channels for raising concerns about financial accountability in their 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 6, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
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