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Federal Register / Vol. 86, No. 8 / Wednesday, January 13, 2021 / Proposed Rules
determine to be necessary to assure that the Owner is meeting his obligation to maintain the units in accordance with part 5, subpart G of this title and to provide the agreed upon utilities and other services.
d Units with health and safety hazards. If HUD or the PHA, as appropriate notifies the Owner that the Owner has failed to maintain a unit that in accordance with part 5, subpart G of this title and the Owner fails to take corrective action within the time prescribed by notice, HUD or the PHA
may exercise any of its rights or remedies under the Contract, including abatement of housing assistance payments, even if the Family continues to occupy the unit. If, however, the Family wishes to be rehoused in another unit with Section 8 assistance and HUD
or the PHA does not have other Section 8 funds for such purposes, HUD
or the PHA may use the abated housing assistance payments for the purpose of rehousing the Family in another unit. Where this is done, the Owner shall be notified that the Owner will be entitled to resumption of housing assistance payments for the vacated unit if:
1 The unit is restored to in accordance with part 5, subpart G of this title;
2 The Family is willing to and does move back to the restored dwelling unit;
and 3 A deduction is made for the expenses incurred by the Family for both moves.
PART 886SECTION 8 HOUSING
ASSISTANCE PAYMENTS
PROGRAMSPECIAL ALLOCATIONS
26. The authority for 24 CFR part 886
continues to read as follows:

Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535d, and 1361113619.
886.113

Amended
27. In 886.113, remove and reserve paragraphs b and i.
28. Revise 886.123 to read as follows:

886.123 Maintenance, operation, and inspections.

a Maintenance and operation. The Owner shall maintain and operate the project so as to provide housing that is compliant with part 5, subpart G of this title, and the Owner shall provide all the services, maintenance and utilities which the Owner agrees to provide under the Contract, subject to abatement of housing assistance payments or other applicable remedies if the Owner fails to meet these obligations.

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b Inspection prior to occupancy.
Prior to occupancy of any unit by a Family, the Owner and the Family shall inspect the unit and both shall certify, on forms prescribed by HUD that they have inspected the unit and have determined it to be compliant with part 5, subpart G of this title and with the criteria provided in the prescribed forms. Copies of these reports shall be kept on file by the Owner for at least three years.
c Periodic inspections. HUD will inspect or cause to be inspected a reasonable sample of contract units according to the requirements in part 5, subpart G of this title and at such other times as may be necessary to assure that the owner is meeting contractual obligations.
d Units not free of health and safety hazards. If HUD notifies the Owner that the Owner has failed to maintain a unit that is compliant with the requirements in part 5, subpart G of this title and the Owner fails to take corrective action within the time prescribed by notice, HUD may exercise any of its rights or remedies under the Contract, including abatement of housing assistance payments, even if the Family continues to occupy the unit.
886.307

Amended.

29. In 886.307, remove and reserve paragraphs b, i, and m.
30. Revise 886.323 to read as follows:

d Periodic inspections. HUD will inspect the project or cause it to be inspected in accordance with the requirements in part 5, subpart G of this title and at such other times as HUD
may determine to be necessary to assure that the owner is meeting the Owners obligation to maintain the units and the related facilities in accordance with part 5, subpart G of this title and to provide the agreed-upon utilities and other services.
e Failure to maintain housing. If HUD notifies the owner that he/she has failed to maintain a unit that is compliant with part 5, subpart G of this title, and the owner fails to take corrective action within the time prescribed in the notice, HUD may exercise any of its rights or remedies under the contract, or Regulatory Agreement, if any, including abatement of housing assistance payments even if the family continues to occupy the unit and rescission of the sale. If the family wishes to be rehoused in another unit, HUD shall provide assistance in finding such a unit for the family.
PART 902PUBLIC HOUSING
ASSESSMENT SYSTEM
31. The authority for 24 CFR part 902
is revised to read as follows:

Authority: 42 U.S.C. 1437dj, 42 U.S.C.
3535d, 1437z10.

32. Amend 902.3 by:
a. Removing the definition of Criticality;
b. Revising the definitions of Dictionary of Deficiency Definitions and Inspectable areas or area; and c. Removing the definitions of Item Weights and Criticality Levels document, Normalized weights, Score, Severity, Statistically valid sample, and Unit-weighted average.
The revisions read as follows:

886.323 Maintenance, operation, and inspections.

a Maintain housing free of health and safety hazards. The owner shall maintain and operate the project so as to be compliant with part 5, subpart G
of this title, and the owner shall provide all the services, maintenance, and utilities which the Owner agrees to provide under the contract and the lease. Failure to do so shall be considered a material default under the contract and Regulatory Agreement, if any.
b HUD inspection. Prior to execution of the contract, HUD shall inspect or cause to be inspected each proposed contract unit and related facilities to ensure that they comply with the requirements at part 5, subpart G of this title.
c Owner and family inspection. Prior to occupancy of any vacant unit by a family, the owner and the family shall inspect the unit, and both shall certify that they have inspected the unit and have determined it to be compliant with part 5, subpart G of this title. Copies of these reports shall be kept on file by the owner for at least 3 years.

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902.3

Definitions.

Dictionary of Deficiency Definitions means the document published in the Federal Register that contains the inspection standards and scoring values pursuant to part 5, subpart G of this title.

Inspectable areas or area mean any of the three major components of public housing that are inspected, which are:
Inside, outside, unit.

902.20

Removed and Reserved
33. Remove and reserve 902.20.
34. Revise 902.21 to read as follows:

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