1. (1) Vacancies from Execution of Contract to Initial Occupancy. If a Contract unit which has been rehabilitated in accordance with the Program is not leased within 15 days of the effective date of the Contract, the Owner will be entitled to housing assistance payments in the amount of 80 percent of the Contract Rent for the unit for a period not exceeding 60 days from the effective date of the Contract, provided that the Owner.

   1. (a) has complied with these regulations;
   2. (b) has taken and continues to take all feasible actions to fill the vacancy; and
   3. (c) has not rejected any eligible applicant except for good cause acceptable to the Agency.

2. (2) Vacancies after Initial Occupancy.

   1. (a) If an Eligible Family vacates its unit (other than as a result of action by the Owner which is in violation of the Lease or the Contract or any applicable law), the Owner may receive the housing assistance payments due under the Contract for so much of the month in which the Family vacates the unit as the unit remains vacant. Should the unit continue to remain vacant, the Owner may receive from the Agency a housing assistance payment in the amount of 80 percent of the Contract Rent for a vacancy period not exceeding an additional month. However, if the Owner collects any of the Family’s share of the rent for this period, the payment must be reduced to an amount which, when added to the Family’s payments, does not exceed 80 percent of the Contract Rent. Any such excess must be reimbursed by the Owner to the Agency. The Owner will not be entitled to any payment under this rule unless the Owner:

      1. 1. immediately upon learning of the vacancy, has notified the Agency of the vacancy or prospective vacancy, and
      2. 2. has taken and continues to take all feasible actions specified in sections (1) (b) and (c) of this rule.
   2. (b) If the Owner evicts an Eligible Family, the Owner will not be entitled to any payment under this rule unless the Agency determines that the Owner complied with all requirements of these rules, the Contract, and all applicable State and local laws.
3. (3) Prohibition of Double Compensation for Vacancies.
4. (1) The Owner will not be entitled to housing assistance payments with respect to vacant units under this section if the Owner is entitled to payments from other sources (for example, payments for losses of rental income incurred for holding units vacant for relocatees pursuant to Title I of the HCD Act of 1974 or payments for unpaid rent under 24 CFR 882.112 (Security and Utility Deposits) ).

Authority: T.C.A. §13-23-115 (18). Administrative History: Original rule filed July 13, 1982; effective August 12, 1982.