Exhibit 3-14: Section 236 With Benefit of Additional Assistance – Special Instructions for Determining Prorated Assistance Payment and Prorated Total Tenant Payment/Tenant Rent for Families Subject to Proration Procedures Regarding the Restriction on Assistance to Noncitizens

Example 2 – Income-Targeting Method

HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs · 2026 edition · updated 2026-10-05 · United States

Methodology: Admit extremely low-income families to the first 40% of expected vacancies and then admit eligible applicants from the top of the list regardless of income. Friendship Heights: 80 units - contains both efficiencies and 1-bedroom units Section 8 New Construction Property HAP Effective Date: 3/27/80 Anticipated annual turnover: 10%, or 8 units Waiting List Efficiency 1-Bedroom Alice Johnson (VLI) Phil Jones (VLI) Aiko Kihara (ELI) Maria Rodriguez (ELI) James Johnson (VLI) Elsa Anderson (ELI) Rita White (VLI) Aretha Samuels (ELI) Betty Harvey (VLI) Uja Gupta (VLI) Jean Miller (ELI) Robert Johnson (VLI) Randy Lopez (ELI) Sam Sorenson (ELI)

Analysis to determine whether a method other than following the waiting list in chronological order is needed: In this property, following the waiting list may not achieve the required results, depending on where the vacancies occur.

	Four admissions must be extremely low-income applicants to achieve the
	targeting goal.
	If there are five vacancies in the efficiencies and three in the 1-bedrooms,
	and the list is followed in chronological order, the owner will not achieve 40%
	ELI admissions. In order to comply, the owner will have to skip some of the
	applicants with higher incomes.

Owner policy on admissions: The owner chooses to meet the target based on expected vacancies first, and then use the waiting list in chronological order. The Tenant Selection plan states that: "Extremely low-income applicants will be selected from the waiting list first to occupy 40% of the number of units expected to be filled during the year. Subsequently, families will be selected from the top of the waiting list, regardless of income." (I.e., if 6 vacant units are projected, the owner selects 3 extremely low-income families from the list first, then goes to the top of the list for eligible families regardless of income).

HUD Occupancy Handbook Chapter 4: Waiting List and Tenant Selection

6/07

4-54

Section 4: Selecting Tenants from the Waiting List

4350.3 REV-1

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▸Contents — HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs

HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs

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