2-43 Limits on Obligations to Provide Reasonable Accommodations

A. Fundamental Alteration. Owners are not required to take any action that would result in a fundamental alteration in the nature of the program. A fundamental

HUD Occupancy Handbook Chapter 2: Civil Rights and Nondiscrimination Requirements

6/07

2-39

Section 3: Additional Nondiscrimination and Accessibility Requirements for Persons with Disabilities

4350.3 REV-1

Subsection 4: Reasonable Accomodations

alteration is a change so significant that it alters the essential nature of a provider’s operations. For a detailed explanation of fundamental alteration, see Exhibit 2-5.

• B. Undue Financial and Administrative Burden. The determination of undue financial and administrative burden must be made on a case-by-case basis, involving various factors, such as the cost of the reasonable accommodation, the financial resources of the provider, the benefits the accommodation would provide to the requester, and the availability of alternative accommodations that would adequately meet the requester’s disability–related needs. For examples of undue financial and administrative burden, see Exhibit 2-6.

• C. Owners are not required to make structural changes that would impose an undue financial and administrative burden, even if alternatives to making housing programs or activities readily accessible to and usable by persons with disabilities are not effective.

  1. HUD Field Offices will consider a request to use the residual receipts account to pay for alterations under Section 504.

  2. Under HUD requirements, the reserve for replacement account is to be used for replacing existing items. (See Handbook 4350.1, Multifamily Asset Management and Project Servicing .) If HUD approval is received for using the reserve for replacement account for any other purpose (e.g., Section 504 alterations), then the account must be replenished through property rental income, generally within one year.

• D. When a request for a reasonable accommodation will result in an undue financial and administrative burden, the owner must provide all other needed accommodations up to the point at which further accommodations would result in an undue financial and administrative burden.