24 CFR § 907.3 - Bases for substantial default.

---
identifier: "/us/cfr/t24/s907.3"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "24 CFR § 907.3 - Bases for substantial default."
title_number: 24
title_name: "Housing and Urban Development"
section_number: "907.3"
section_name: "Bases for substantial default."
chapter_name: "OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT"
part_number: "907"
part_name: "SUBSTANTIAL DEFAULT BY A PUBLIC HOUSING AGENCY"
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. 1437d(j), 42 U.S.C. 3535(d)."
regulatory_source: "76 FR 10162, Feb. 23, 2011, unless otherwise noted."
cfr_part: "907"
---


# 907.3 Bases for substantial default.

(a) *Violations of laws and agreements.* A PHA may be declared in substantial default when the PHA:

(1) Violates a federal statute;

(2) Violates a federal regulation; or

(3) Violates one or more terms of an ACC, or other covenants or conditions to which the PHA is subject.

(b) *Failure to act.* In addition to the violations listed in paragraph (a) of this section, in the case where a PHA is designated as a troubled performer under PHAS, the PHA shall be in substantial default if the PHA:

(1) Fails to execute an MOA;

(2) Fails to comply with the terms of an MOA; or

(3) Fails to show substantial improvement, as provided in § 902.75(d) of this chapter.