C. Eligible In-Place Tenants (Exceptions to the income limits that do not require HUD…

In Section 8 properties where fewer than 100% of the units have Section 8 subsidy, some in-place, low-income tenants not receiving Section 8 may be eligible for assistance without HUD approval for an exception to the very lowincome limit. This policy is permitted so that families will not be displaced when the circumstances are not the fault of the tenant. Owners may allocate Section 8 assistance to in-place, low-income families only under any of these conditions:

1. The tenant is being converted from RAP or Rent Supplement to Section 8. 2. The tenant is eligible to receive Section 8 in conjunction with the sale of a HUD-owned project,

2. The tenant is paying more than 30% of income toward rent, and is at or below the low-income limit (80% of median income).