HUD Handbook 4350.3: Occupancy Requirements of Subsidized Multifamily Housing Programs
E. Chapter 3, Eligibility for Assistance and Occupancy
HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs · 2026 edition · updated 2026-10-05 · United States
Corrected references or typos: Paragraph 3-6.F.5, 3-10.C.2, 3-11.A.3, 3-12.B.3 and 4, 3-12.E, 3-12.L.1.c, 3-16 B.3, 3-17, Exhibit 3-1 Situation 6.B.5
Additional clarification on existing text:
Paragraph 3-3.E - Added as a key regulation the CFR reference on restrictions on eligibility of students for Section 8 assistance.
Paragraph 3-4 - Added reference to paragraphs 3-13 on Determining Eligbility of Students for Assistance and 3-16 on Determining the Eligibility of a Remaining Family Member.
Paragraph 3-6.D.3 - Added Section 202 projects without assistance use the Section 236 low income limits. Figure 3-3 - Clarified income limits to use for pre-1981 and post-1981 Section 202/8 projects.
Paragraph 3-9.C.2 - Removed paragraph relative to disclosure of social security numbers for individuals who have applied for legalization under the Immigration and Reform Control Act of 1986 as it no longer applies and renumbered remaining paragraphs.
Paragraph 3-12.H.4 - Paragraph removed, the DHS SAVE system manual was removed from Appendix 2 as it is no longer current.
Paragraph 3-12.K.1 - Clarified that the family member determined eligible and family members who have turned in their required documentation in a timely manner are eligible for assistance until final eligibility is determined. If there are family members who did not turn in the required documentation in a timely manner they are not eligible for assistance and assistance must be prorated.
Paragraph 3-12.K Example - Clarified that one family member was eligible at admission. Expanded the example to include what happens after DHS verification is received and there is a change in the immigration status of family members.
Paragraph 3-12.L.2.a - Added instructions for completing and mailing the DHS Form G 845S are found in Appendix 2-B of the handbook. This information is taken from DHS' current Systematic Alien Verification for Entitlements (SAVE) Program Instruction Manual and should be used until such time as the instruction manual is updated by DHS and included in its entirety in Appendix 2-A.
Paragraph 3-12.Q and Exhibits 3-8 and 3-10 - Clarified if the family receiving assistance on June 19,1995 includes a refugee under section 207 of the Immigration and Nationality Act, or an individual seeking asylum under section 208 of that Act, a deferral can be given to the family and there is no limitation on the deferral period. The 18 month deferral limitation does not apply.
Paragraph 3-13 - Added the requirements for determining eligibility of college students for assistance. Figure 3-6 - For clarification purposes, removed the family definition.
Paragraph 3-18.A.1 - Added clarification that Section 651 of Title VI, Subtitle D of the Community Development Act of 1992 applies to both insured and non-insured projects that are eligible to implement the elderly preference. Paragraph 3-18.A.12 - Added that age waivers cannot be issued for Section 515/8 elderly projects. If owners of these projects are experiencing vacancy problems and want to admit underage applicants, they must request RHS reclassify their project from elderly to family.
Paragraph 3-18.B.1.a - Added clarification that Section 658 of Title VI of Subtitle D of the Community Development Act of 1992 applies to both insured and non-insured Section 236 projects.
Paragraph 3-20.H.5 - Revised paragraph to read: There are sufficient subsidized units available in the area to house current project tenants who are willing to move, as well as to house individuals who no longer qualify for the housing because of the changed category.
Form HUD-23 (9/81)
Paragraph 3-23.B.2 - Clarified that owners must have written occupancy standards. Also, removed the word "some" in the second sentence. Changed to read "Owners have discretion..." Paragraph 3-23.E.6.c Note - Added that owners should not count children who are away at school who have established residency at another address as evidenced by a lease agreement. Paragraph 3-23.G.1 - Added "(see exception for assigning a larger unit to a single person in G.2 below.)" Paragraph 3-27.C - Added that owners may accept a signed affidavit from the remaining head of household when reasonable efforts to obtain verification have been exhausted.
Paragraph 3-32 - Added a new B to include text on access to services for persons with LEP. Paragraph 3-33 - Added the requirements for verifying the eligibility of a student for assistance. Exhibits 3-3 through 3-11 - Changed title of documents to reflect they are sample letters and forms and corrected text in letters and forms and chapter to reflect that all of the documents in the exhibits are samples. Exhibit 3-5 - Changed the name of the exhibit to "Sample Citizenship Declaration". Exhibits 3-12, 3-13, 3-14 - Removed MAT field number references.
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