Common use of Project Account Clause in Contracts

Project Account. In order to assure that housing assistance payments will be increased on a timely basis to cover increases in Contract Rents or de- creases in Family Incomes: (1) A Project Account shall be estab- lished and maintained in an amount as determined by the Secretary consistent with his responsibilities under Section 8(c)(6) of the Act, out of amounts by which the maximum annual Contract commitment per year exceeds amounts paid under the Contract for any year. This account shall be established and maintained by HUD as a specifically identified and segregated account, and payment shall be made therefrom only for the purposes of (i) housing assist- ance payments, and (ii) other costs spe- cifically authorized or approved by the Secretary. (2) Whenever a HUD-approved esti- mate of required housing assistance payments for a fiscal year exceeds the maximum annual Contract commit- ment, and would cause the amount in the Project Account to be less than an amount equal to 40 percent of such maximum annual Contract commit- ment, HUD shall, within a reasonable period of time, take such additional steps authorized by Section 8(c)(6) of the Act as may be necessary to carry out this assurance, including (as pro- vided in that section of the Act) ‘‘the reservation of annual contributions au- thority for the purpose of amending housing assistance contracts or the al- location of a portion of new authoriza- tions for the purpose of amending hous- ing assistance contracts.’’ (a) Maximum total ACC commitment. The maximum total annual contribu- tion that may be contracted for in the ACC for a project shall be the total of the Contract Rents plus any utility al- lowances for all the Contract units in the project, plus a fee for the regular costs of PHA administration. HUD-ap- proved preliminary costs for adminis- tration (including administrative costs in connection with PHA activities re- lated to relocation of occupants) shall be payable out of this total.

Project Account. In order to assure that housing assistance payments will be increased on a timely basis to cover increases in Contract Rents or de- creases in Family Incomes: (1) A Project Account shall be estab- lished and maintained in an amount as determined by the Secretary consistent with his responsibilities under Section 8(c)(6) of the Act, out of amounts by which the maximum annual Contract commitment per year exceeds amounts paid under the Contract for any year. This account shall be established and maintained by HUD as a specifically identified and segregated account, and payment shall be made therefrom only for the purposes of (i) housing assist- ance payments, and (ii) other costs spe- cifically authorized or approved by the Secretary. (2) Whenever a HUD-approved esti- mate of required housing assistance payments for a fiscal year exceeds the maximum annual Contract commit- ment, and would cause the amount in the Project Account to be less than an amount equal to 40 percent of such maximum annual Contract commit- ment, HUD shall, within a reasonable period of time, take such additional steps authorized by Section 8(c)(6) of the Act as may be necessary to carry out this assurance, including (as pro- vided in that section of the Act) ‘‘the reservation of annual contributions au- thority for the purpose of amending housing assistance contracts or the al- location of a portion of new authoriza- tions for the purpose of amending hous- ing assistance contracts.’’ (a) Maximum total ACC commitment. The maximum total annual contribu- tion that may be contracted for in the ACC for a project shall be the total of the Contract Rents plus any utility al- lowances for all the Contract units in the project, plus a fee for the regular costs of PHA administration. HUD-ap- proved preliminary costs for adminis- tration (including administrative costs in connection with PHA activities re- lated to relocation of occupants) shall be payable out of this total.the