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 1937 Act, out of amounts by which the maximum ACC commit- ment per year exceeds amounts paid under the ACC for any year. This ac- count shall be established and main- tained by HUD as a specifically identi- fied and segregated account, and pay- ment shall be made therefrom only for the purposes of (i) housing assistance payments and (ii) other costs specifi- cally authorized or approved by the Secretary. (2) Whenever a HUD-approved esti- mate of required Annual Contribution exceeds the maximum ACC commit- ment then in effect, and would cause the amount in the Project Account to be less than an amount equal to 40 per- cent of such maximum ACC commit- ment, HUD shall, within a reasonable period of time, take such additional steps authorized by Section 8(c)(6) of the 1937 Act as may be necessary to carry out this assurance, including (as provided in that section of the Act) ‘‘the reservation of annual contribu- tions authority for the purpose of amending housing assistance contracts or the allocation of a portion of new authorizations for the purpose of amending housing assistance con- tracts.’’ [41 FR 47168, Oct. 27, 1976, as amended at 61 FR 13593, Mar. 27, 1996; 65 FR 16723, Mar. 29, 2000] (a) General. Housing Assistance Pay- ments shall be paid to Owners for units under lease by eligible families, in ac- cordance with the Contract and as pro- vided in this section. These Housing Assistance Payments will cover the dif- xxxxxxx between the Contract Rent and the Tenant Rent. Where applicable, the Utility Reimbursement will be paid to the Family as an additional Housing Assistance Payment. The Contract will provide that the Owner will make this payment on behalf of the contract ad- ministrator. Funds will be paid to the Owner in trust solely for the purpose of making this additional payment. If the Family and the utility company con- sent, the Owner may pay the utility re- imbursement jointly to the Family and the utility company or directly to the utility company. No Section 8 assist- ance may be provided for any unit oc- cupied by an Owner; however, coopera- tives are considered rental housing, rather than Owner-occupied housing, for this purpose.