24 CFR § 904.108 - Break-even amount.
---
identifier: "/us/cfr/t24/s904.108"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "24 CFR § 904.108 - Break-even amount."
title_number: 24
title_name: "Housing and Urban Development"
section_number: "904.108"
section_name: "Break-even amount."
chapter_name: "OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT"
part_number: "904"
part_name: "LOW RENT HOUSING HOMEOWNERSHIP OPPORTUNITIES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 1437-1437ee and 3535(d)."
regulatory_source: "39 FR 10966, Mar. 22, 1974, unless otherwise noted. Redesignated at 40 FR 15580, Apr. 7, 1975, and further redesignated at 49 FR 6714, Feb. 23, 1984."
cfr_part: "904"
---
# 904.108 Break-even amount.
(a) *Definition.* The term “break-even amount” as used herein means the minimum average monthly amount required to provide funds for the items listed in the illustration below. A separate break-even amount shall be established for each size and type of dwelling unit, as well as for the Project as a whole. The break-even amount for EHPA and NRMR will vary by size and type of dwelling unit; similar variations as to other line items may be made if the LHA deems this equitable.
| | | |
| --- | --- | --- |
| (1) Operating Expense (see § 904.109): | | |
| Administration | $8.50 | |
| Homebuyer services | 2.00 | |
| Project supplied utilities | 3.00 | |
| Routine maintenance—common property | 3.00 | |
| Protective services | 2.00 | |
| General expense | 6.50 | |
| Nonroutine maintenance—common property (Contribution to operating reserve) | 2.00 | $27.00 |
| (2) Earned Home Payments Account (see § 904.110) | | 12.00 |
| (3) Nonroutine Maintenance Reserve (see § 904.111) | | 7.50 |
| Break-Even Amount | | 46.50 |
The break-even amount does not include the monthly allowance for utilities which the homebuyer pays for directly, nor does it include any amount for debt service on the Project notes.
(b) *Excess over break-even.* When the homebuyer's required monthly payment (see § 904.107(j)) exceeds the applicable break-even amount, the excess shall constitute additional Project income and shall be deposited and used in the same manner as other Project income.
(c) *Deficit in monthly payment.* When the homebuyer's required monthly payment is less than the applicable break-even amount, the deficit shall be applied as a reduction of that portion of the monthly payment designated for operating expense (i. e., as a reduction of Project income). In all such cases, the EHPA and the NRMR shall be credited with the amount included in the break-even amount for these accounts.