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<br /> Federal Register / Vol. 61, No. 57 / Friday, March 22, 1996 / Rules and Regulations 11967
<br /> (or family,as applicable)occupying an amount of the household's(or family's) addition,when utility rate changes
<br /> assisted unit or residential space in a security deposit balance. would result in a cumulative increase of
<br /> group home to pay a security deposit In (4)Disagreements.If a disagreement 10 percent or more in the most recently
<br /> an amount equal to one month's tenant arises concerning reimbursement of the approved utility allowances,the Owner
<br /> payment or$50,whichever is greater. security deposit, the household (or (or Borrower)must advise HUD and
<br /> The household (or family)Is expected to family, if applicable)will have the right request approval of new utility
<br /> pay the security deposit from its own to present objections to the Owner(or allowances.Whenever a utility
<br /> resources and other available public or Borrower,if applicable) in an informal allowance for an assisted unit is
<br /> private resources.The Owner(or meeting.The Owner(or Borrower)must adjusted,the Owner(or Borrower)will
<br /> Borrower)may collect the security keep a record of any disagreements and promptly notify affected households(or
<br /> deposit on an installment basis. meetings in a tenant file for inspection families,as applicable) and make a
<br /> (b) Security deposit provisions by HUD.The procedures of this corresponding adjustment of the tenant
<br /> applicable to units.(1)Administration paragraph do not preclude the payment(or rent,as applicable)and the
<br /> ofsecurity deposit.The Owner(or household (or family)from exercising amount of the project rental assistance
<br /> Borrower,as applicable)must place the its rights under State or local law. payment(or housing or project
<br /> security deposits in a segregated (5) Decedent's interest in security assistance payment,as applicable).
<br /> interest-bearing account.The amount of deposit.Upon the death of a member of (Approved by the Oti7ce of Management and
<br /> the segregated,interest-bearing account a household(or family,as applicable), Budget under control number Management a
<br /> maintained by the Owner(or Borrower) the decedent's interest,If any,in the
<br /> must at all times equal the total amount security deposit will be governed by 9 891 A45 Conditions for receipt of
<br /> collected from the households(or State or local law. vacancy payments for assisted units.
<br /> families,as applicable)then in (c)Reimbursement by HUD for (a) General.Vacancy payments under
<br /> occupancy plus any accrued interest assisted units.If the household's(or the PRAC will not be made unless the
<br /> and less allowable administrative cost family's,if applicable)security deposit conditions for receipt of these project
<br /> adjustments.The Owner(or Borrower) balance is insufficient to reimburse the rental assistance payments set forth in
<br /> must comply with any applicable State Owner(or Borrower, if applicable)for this section are fulfilled.
<br /> and local laws concerning interest any amount that the household (or (b) Vacancies during rent-up.For each
<br /> payments on security deposits. family)owes under the lease for an unit(or residential space in a group
<br /> 2)Household(or family,as assisted unit or residential space,and home)that is not leased as of the
<br /> applicable)notification requirement.In the Owner(or Borrower)has provided effective date of the PRAC,the Owner
<br /> order to be considered for the refund of the household (or family)with the list is entitled to vacancy payments In the
<br /> the security deposit,a household (or required by paragraph(b)(3)(ii) of this amount of 50 percent of the per unit
<br /> family) must provide the Owner(or section,the Owner(or Borrower)may operating cost(or pro rata share of the
<br /> Borrower,as applicable)with a claim reimbursement from HUD for an group home operating cost)for the first
<br /> forwarding address or arrange to pick up amount not to exceed the lesser of:
<br /> the refund. (1)The amount owed the Owner(or 60 days of vacancy,if the Owner:
<br /> (1)Conducted marketing in
<br /> (3) Use ofsecurity deposit.The Owner Borrower);or
<br /> accordance with§891.400(a)and
<br /> (or Borrower,as applicable),subject to (2)One month's per unit operating otherwise complied with§$91.400;
<br /> State and local law and the cost(or contract rent. if applicable), (2) Has taken and continues to take all
<br /> requirements of paragraphs(b)(1)and minus the amount of the household's(or feasible actions to fill the vacancy;and
<br /> (b)(3)of this section,may use the family's)security deposit balance.Any (3)Has not rejected any eligible
<br /> household's(or family's,as applicable) reimbursement under this section will applicant except for good cause
<br /> security deposit balance as be applied first toward any unpaid acceptable to HUD.
<br /> reimbursement for any unpaid amounts tenant payment(or rent, If applicable) (c) Vacancies after rent-up.If an
<br /> that the household(or family)owes due under the lease.No reimbursement eligible household vacates an assisted
<br /> under the lease.Within 30 days(or may be claimed for any unpaid tenant unit(or residential space in a group
<br /> shorter time if required by State or local payment(or rent)for the period after home)the Owner is entitled to vacancy
<br /> law)after receiving notification under termination of the tenancy.The Owner payments in the amount of 50 percent
<br /> paragraph(b)(2)of this section,the (or Borrower) may be eligible for of the approved per unit operating cost
<br /> Owner(or Borrower)must: vacancy payments following a vacancy (or pro rata share of the group home
<br /> (i)Refund to a household(or family) in accordance with the requirements of operating cost)for the first 60 days of
<br /> that does not owe any amount under the §891.445(or§§891.650 or 891.790,as vacancy if the Owner:
<br /> lease the full amount of the household's applicable). (1)Certifies that it did not cause the
<br /> (or family's)security deposit balance; vacancy by violating the lease,the
<br /> (ii)Provide to a household(or family) §891.440 Adjustment of utility allowances. PRAC,or any applicable law;
<br /> owing amounts under the lease a list This section shall apply to projects (2)Notified HUD of the vacancy or
<br /> Itemizing each amount,along with a funded under the Section 202 Program, prospective vacancy and the reasons for
<br /> statement of the household's(or to independent living complexes funded the vacancy upon learning of the
<br /> family's)rights under State and local under Section 811 Program,and to vacancy or prospective vacancy;
<br /> law.If the amount that the Owner(or projects financed with loans under (3) Has fulfilled and continues to
<br /> Borrower)claims is owed by the subpart E of this part.The Owner(or fulfill the requirements specified in
<br /> household (or family)is less than the Borrower,as applicable)must submit an §891.400(a) (2) and(3)and§891.445(b)
<br /> amount of the household's (or family's) analysis of any utility allowances (2)and (3)•and
<br /> security deposit balance,the Owner(or applicable.Such data as changes in (4)For any vacancy resulting from the
<br /> Borrower) must refund the excess utility rates and other facts affecting Owner's eviction of an eligible
<br /> balance to the household(or family).If utility consumption should be provided household,certifies that it has complied
<br /> the Owner(or Borrower)fails to provide as part of this analysis to permit with 1891.430.
<br /> the list,the household (or family)will appropriate adjustments in the utility (d) Prohibition of double
<br /> be entitled to the refund of the full allowances for assisted units.In compensation for vacancies.If the
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