# 24 CFR § 891.140: Development cost limits

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-24-891.140

## Section

- **Citation:** 24 CFR § 891.140
- **Heading:** Development cost limits
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 24—Housing and Urban Development > Subtitle B—Regulations Relating to Housing and Urban Development > CHAPTER VIII—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 891—SUPPORTIVE HOUSING FOR THE ELDERLY AND PERSONS WITH DISABILITIES > Subpart A—General Program Requirements

## Text

(a) HUD shall use the development cost limits, established by Notice in the Federal Register and adjusted by locality, to calculate the fund reservation amount of the capital advance to be made available to individual Owners. Owners that incur actual development costs that are less than the amount of the initial fund reservation shall be entitled to retain 50 percent of the savings in a Replacement Reserve Account. Such percentage shall be increased to 75 percent for Owners that add energy efficiency features.
(b) The Replacement Reserve Account established under paragraph (a) of this section may only be used for repairs, replacements, and capital improvements to the project.

## Nearby sections

- [24 CFR § 891.100 § 891.100 Purpose and policy.](https://www.frixlaw.com/law-library/statutes/ecfr-24-891.100.md)
- [24 CFR § 891.105 § 891.105 Definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-24-891.105.md)
- [24 CFR § 891.110 § 891.110 Allocation of authority.](https://www.frixlaw.com/law-library/statutes/ecfr-24-891.110.md)
- [24 CFR § 891.115 § 891.115 Notice of funding availability.](https://www.frixlaw.com/law-library/statutes/ecfr-24-891.115.md)
- [24 CFR § 891.120 § 891.120 Project design and cost standards.](https://www.frixlaw.com/law-library/statutes/ecfr-24-891.120.md)
- [24 CFR § 891.125 § 891.125 Site and neighborhood standards.](https://www.frixlaw.com/law-library/statutes/ecfr-24-891.125.md)
- [24 CFR § 891.130 § 891.130 Prohibited relationships.](https://www.frixlaw.com/law-library/statutes/ecfr-24-891.130.md)
- [24 CFR § 891.135 § 891.135 Amount and terms of capital advances.](https://www.frixlaw.com/law-library/statutes/ecfr-24-891.135.md)
- [24 CFR § 891.140 § 891.140 Development cost limits.](https://www.frixlaw.com/law-library/statutes/ecfr-24-891.140.md)
- [24 CFR § 891.145 § 891.145 Owner deposit (Minimum Capital Investment).](https://www.frixlaw.com/law-library/statutes/ecfr-24-891.145.md)
- [24 CFR § 891.150 § 891.150 Operating cost standards.](https://www.frixlaw.com/law-library/statutes/ecfr-24-891.150.md)
- [24 CFR § 891.155 § 891.155 Other Federal requirements.](https://www.frixlaw.com/law-library/statutes/ecfr-24-891.155.md)
- [24 CFR § 891.160 § 891.160 Audit requirements.](https://www.frixlaw.com/law-library/statutes/ecfr-24-891.160.md)
- [24 CFR § 891.165 § 891.165 Duration of capital advance.](https://www.frixlaw.com/law-library/statutes/ecfr-24-891.165.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-24-891.140. Check the current official text before relying on it. Not legal advice.