24 CFR § 880.506 - Default by owner (private-owner/HUD and PHA-owner/HUD projects).

---
identifier: "/us/cfr/t24/s880.506"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "24 CFR § 880.506 - Default by owner (private-owner/HUD and PHA-owner/HUD projects)."
title_number: 24
title_name: "Housing and Urban Development"
section_number: "880.506"
section_name: "Default by owner (private-owner/HUD and PHA-owner/HUD projects)."
chapter_name: "OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING-FEDERAL HOUSING COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (SECTION 8 HOUSING ASSISTANCE PROGRAMS, SECTION 202 DIRECT LOAN PROGRAM, SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY PROGRAM AND SECTION 811 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES PROGRAM)"
part_number: "880"
part_name: "SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR NEW CONSTRUCTION"
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. 1437a, 1437c, 1437f, 3535(d), 12701, and 13611-13619."
regulatory_source: "44 FR 59410, Oct. 15, 1979, unless otherwise noted."
cfr_part: "880"
---


# 880.506 Default by owner (private-owner/HUD and PHA-owner/HUD projects).

The Contract will provide:

(a) That if HUD determines that the owner is in default under the Contract, HUD will notify the owner and the lender of the actions required to be taken to cure the default and of the remedies to be applied by HUD including specific performance under the Contract, reduction or suspension of housing assistance payments and recovery of overpayments, where appropriate; and

(b) That if the owner fails to cure the default, HUD has the right to terminate the Contract or to take other corrective action.