24 CFR § 891.585 - Default by Borrower.

---
identifier: "/us/cfr/t24/s891.585"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "24 CFR § 891.585 - Default by Borrower."
title_number: 24
title_name: "Housing and Urban Development"
section_number: "891.585"
section_name: "Default by Borrower."
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: "891"
part_name: "SUPPORTIVE HOUSING FOR THE ELDERLY AND PERSONS WITH DISABILITIES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1701q; 42 U.S.C. 1437f, 3535(d), and 8013."
regulatory_source: "61 FR 11956, Mar. 22, 1996, unless otherwise noted."
cfr_part: "891"
---


# 891.585 Default by Borrower.

(a) *HAP contract provisions.* The HAP contract will provide:

(1) That if HUD determines that the Borrower is in default under the HAP contract, HUD will notify the Borrower of the actions required to be taken to cure the default and of the remedies to be applied by HUD including an action for specific performance under the HAP contract, reduction or suspension of housing assistance payments and recovery of overpayments, where appropriate; and

(2) That if the Borrower fails to cure the default, HUD has the right to terminate the HAP contract or to take other corrective action.

(b) *Loan provisions.* Additional provisions governing default under the section 202 loan are included in the regulatory agreement and other loan documents.