24 CFR § 401.600 - Will a section 8 contract be extended if it would expire while an owner's request for a Restructuring Plan is pending?

---
identifier: "/us/cfr/t24/s401.600"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "24 CFR § 401.600 - Will a section 8 contract be extended if it would expire while an owner's request for a Restructuring Plan is pending?"
title_number: 24
title_name: "Housing and Urban Development"
section_number: "401.600"
section_name: "Will a section 8 contract be extended if it would expire while an owner's request for a Restructuring Plan is pending?"
chapter_name: "OFFICE OF HOUSING AND OFFICE OF MULTIFAMILY HOUSING ASSISTANCE RESTRUCTURING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT"
part_number: "401"
part_name: "MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE RESTRUCTURING PROGRAM (MARK-TO-MARKET)"
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. 1715z-1 and 1735f-19(b); 42 U.S.C. 1437(c)(8), 1437f(t), 1437f note, and 3535(d)."
regulatory_source: "65 FR 15485, Mar. 22, 2000, unless otherwise noted."
cfr_part: "401"
---


# 401.600 Will a section 8 contract be extended if it would expire while an owner's request for a Restructuring Plan is pending?

(a) If a section 8 contract for an eligible project would expire before a Restructuring Plan is implemented, the contract may be extended at rents not exceeding current rents:

(1) For up to the earlier of one year or closing on the Restructuring Plan under § 401.407; or

(2) For such period of time beyond one year as HUD may approve, up to the closing of the Restructuring Plan.

(b) Any extension of the contract beyond one year for a pending Restructuring Plan, other than an extension approved under this section, must be at comparable market rents or exception rents. An extension at comparable market rents will not affect a project's eligibility for the Mark-to-Market program once it has been established under this part.

(c) HUD may terminate the contract earlier if the PAE or HUD determines that an owner is not cooperative under § 401.402 or if the owner's request is rejected under § 401.403 or § 401.405.

[71 FR 2121, Jan. 12, 2006]