Examples – Eligible Applicants with Disabilities

• An owner of a project with accessible units cannot exclude an otherwise eligible person with a disability requiring an accessible unit, who also has another disability such as chronic mentally illness.

  • An owner of a project for the chronically mentally ill cannot exclude an otherwise eligible person from the project because of his or her physical disability.

• G. Leasing Units to Non-Eligible Families

  1. If the owner is temporarily unable to lease all units to eligible families, he may request HUD approval to lease one or more units to families that do not meet the income eligibility requirements of 24 CFR Part 5 as follows:

     • a. Section 202/8 or Section 202 PAC

       • (1) A written request for a waiver must be submitted to the HUD Field Office in accordance with Exhibit 3-1.

       • (2) The request must provide documentation of the owner’s continuing marketing efforts to attract eligible applicants and that an increased level of occupancy will prevent financial default and foreclosure.

       • (3) HUD’s approval of a request must be for a limited time – initially one year. HUD may impose other terms and conditions to the approval that are consistent with program objectives and necessary to protect the loan.

       • (4) HUD may reduce the number of units covered by either a HAP or PAC contract if the owner does not comply with the requirements for leasing to families that do not meet the eligibility requirements; or, if HUD determines that the owner’s inability to lease to families that do not meet the eligibility requirements is not a temporary problem.

HUD Occupancy Handbook Chapter 3: Eligibility for Assistance and Occupancy

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Section 2: Project Eligibility

4350.3 REV-1

• b. Section 202 PRAC or Section 811 PRAC

The owner’s written request providing the information specified in Situation 6 of Exhibit 3-1 must be submitted to HUD Headquarters with the recommendation of the HUD Field Office.

2. If permitting over-income families to lease one or more units is not sufficient to solve the vacancy problem, in order to protect the financial viability of the project, an owner may request approval to serve a population other than the one(s) it was approved to serve.

   • a. A request to waive the age requirement for a Section 202 project for the elderly must provide documentation of the owner’s continuing marketing efforts to attract eligible applicants and that an increased level of occupancy will prevent financial default and foreclosure. The request with the recommendation of the HUD Field Office is sent to the Multifamily Hub for approval except that in the case of a Section 202 PRAC project, the request and recommendation must be sent by the Multifamily Hub to Headquarters for approval.

• H. For projects serving persons with disabilities, the owner must apply to the HUD Field Office for permission to serve a different disabled population. The owner must demonstrate a plan to the HUD Field Office that shows the following:

1. The owner can adequately serve the proposed disabled population based on past experience in serving the proposed population;

   2. Funds are available from the state or local government or from other outside sources to pay for any necessary supportive services and a written commitment for funding is provided by the source or the owner;

   3. The need for the original occupancy category no longer exists;

   4. The current tenants can choose to remain in the project or move. If the tenants remain, the owner can begin housing persons in the newly approved category only as vacancies occur; and

   5. There are sufficient subsidized units available in the area to house current tenants who are willing to move, as well as to house individuals who no longer qualify for the housing because of the changed category.

   6. The request and recommendation of the HUD field office is sent to the HUD Multifamily HUB Director for approval.