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24 CFR § 290.21 - Computing annual number of units eligible for substitution of tenant-based assistance or alternative uses. 

---
identifier: "/us/cfr/t24/s290.21"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "24 CFR § 290.21 - Computing annual number of units eligible for substitution of tenant-based assistance or alternative uses."
title_number: 24
title_name: "Housing and Urban Development"
section_number: "290.21"
section_name: "Computing annual number of units eligible for substitution of tenant-based assistance or alternative uses."
chapter_name: "OFFICE OF ASSISTANT SECRETARY FOR HOUSING—FEDERAL HOUSING COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT"
subchapter_number: "I"
subchapter_name: "HUD-OWNED PROPERTIES"
part_number: "290"
part_name: "DISPOSITION OF MULTIFAMILY PROJECTS AND SALE OF HUD-HELD MULTIFAMILY MORTGAGES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1701z-11, 1701z-12, 1713, 1715b, 1715z-1b, 1715z-11a; 42 U.S.C. 3535(d) and 3535(i)."
regulatory_source: "61 FR 11685, Mar. 21, 1996, unless otherwise noted."
cfr_part: "290"
---

# 290.21 Computing annual number of units eligible for substitution of tenant-based assistance or alternative uses.

(a) *Substitution of tenant-based Section 8 assistance to low-income families instead of project-based assistance to units.* The number of units eligible, as permitted by the Statute, for this form of substitution within the 10 percent limit will be estimated at the beginning of each fiscal year, taking into consideration the aggregate number of subsidized project units disposed of by HUD in the immediately preceding fiscal year and the disposition activity planned for the current fiscal year.

(b) *Alternate uses.* The number of units eligible for alternate uses in any fiscal year, as permitted by the Statute, will be determined at the beginning of the fiscal year as the applicable percentages (*i.e.,* either 10 percent or 5 percent) of the estimated total number of units to be disposed of in the fiscal year, taking into consideration the total number of units in multifamily housing projects disposed of by the Department in the immediately preceding fiscal year, and the extent of the disposition activity planned in the current fiscal year.