A 202 owner gets 50 percent of per-unit operating cost for the first 60 days of a vacancy, but only on four conditions and never so as to be paid twice

s202prac.unit_vacancy.vacancy_payments_are_conditional_and_may_not_double_compensate · v1.0.0

Vacancy payments under a PRAC are conditional, and 24 CFR 891.445(a) says flatly that they will not be made unless the conditions are fulfilled. After rent-up, an owner whose eligible household vacates is entitled to 50 percent of the approved per-unit operating cost - or the pro rata share of the group home operating cost - for the FIRST 60 DAYS of vacancy, and only if it (1) certifies it did not cause the vacancy by violating the lease, the PRAC or any law, (2) notified HUD of the vacancy or prospective vacancy and its reasons on learning of it, (3) continues to market affirmatively, take all feasible action to fill the unit and reject no eligible applicant except for good cause acceptable to HUD, and (4) where the vacancy came from an eviction, certifies it complied with 24 CFR 891.430. During rent-up the same 50 percent for 60 days is available on the parallel conditions in 891.445(b). The anti-double-compensation rule at 891.445(d) is the one most often missed: collections from tenant rent, security deposits, the 891.435(c) unpaid-rent reimbursement, or governmental payments under other programmes are netted, and the owner may not collect vacancy payments to the extent those collections plus the vacancy payment exceed the approved per-unit operating cost.

Confidence

high

Effective from

1996-03-22

Consequence model

contract remedy

Last reviewed

2026-08-22