Vacancy payments of 80 percent of contract rent for the first 60 days are payable only if the owner met the notification, marketing and non-rejection conditions

pbra.subsidy_calculation.vacancy_payment_conditions · v1.0.0

Vacancy payments under the Housing Assistance Payments contract are not made unless the conditions in 24 CFR 880.611 are fulfilled. Where an eligible family vacates a unit the owner is entitled to vacancy payments of 80 percent of the contract rent for the first 60 days of vacancy only if the owner certifies it did not cause the vacancy by violating the lease, the contract or any applicable law; notified the contract administrator of the vacancy or prospective vacancy and its reasons immediately on learning of it; has taken and continues to take all feasible actions to fill the vacancy and has not rejected any eligible applicant except for good cause acceptable to the contract administrator; and, where the vacancy followed an eviction, certifies that it complied with the termination-of-tenancy requirements of 24 CFR 880.607. If the unit is still vacant after 60 days the owner may apply for additional payments equal to the debt-service principal and interest attributable to the unit for up to 12 further months, but only if the unit was in decent, safe and sanitary condition throughout, the owner continues to meet the same conditions, and it demonstrates to HUD that project revenues are below expenses for the period and that the project can achieve financial soundness within a reasonable time. The owner is not entitled to vacancy payments to the extent it can collect for the vacancy from other sources such as security deposits or other governmental payments. Two handbook qualifications attach. The owner is NOT entitled to a vacancy payment for the period following occupancy of a unit by authorised police or security personnel. And where a security deposit was collected under the HUD rules in force at the time, the HUD Field Office or Contract Administrator may not reduce a Section 8 special claim on the ground that the deposit does not meet current rules.

Confidence

high

Effective from

1979-10-15

Consequence model

contract remedy

Last reviewed

2026-09-02