F. Exceptions to Section 8 Income Targeting Requirements

As discussed in paragraph 4-5, owners with Section 8 units are required to ensure that during a fiscal year at least 40% of the units that become available, together with initial certifications of in-place tenants, serve extremely low-income families. If an owner has actively marketed available units to extremely low-income families and has been unable to achieve the 40% target for admissions and initial certifications, the owner is permitted to rent to other eligible families after a reasonable marketing period has expired.

The owner must maintain complete records of the marketing efforts targeted to extremely low-income families, and must demonstrate that reasonable efforts were made to fill available units with extremely lowincome families. The owner must also demonstrate that an ongoing effort to meet the 40% requirement is being made.

HUD and/or the Contract Administrator will monitor compliance with this requirement.