HUD Handbook 4350.3: Occupancy Requirements of Subsidized Multifamily Housing Programs
SITUATION 6: Insufficient Number of Very Low-Income Applicants
HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs · 2026 edition · updated 2026-10-05 · United States
- A. Submit a chart showing total occupancy and occupancy of assisted units by unit type (e.g., 2-bedroom, 1-bath; 2-bedroom, 2-bath).
| Unit Type | Total Units in the Project | Total Units in the Project | Contract Units | Number of Families on Waiting List |
Number of Families on Waiting List |
|---|---|---|---|---|---|
| Total Number |
Number Vacant |
Total Number Number Vacant |
Very Low-Income |
Low- Income But Not Very Low- Income |
form HUD-90104 12/2007
3 of 6
U.S. Department of Housing OMB Approval No. 2502-0204 (exp. 03/31/2014) and Urban Development Office of Housing Federal Housing Commissioner
Exception to Limitations on Admission of Families
B. Submit the following data:
Average number of days units were vacant during the last six months. Divide the total days vacant by the number of units that were vacant. (If this is a new project, use the period since the project has been occupied.)
a. For Section 8 units _______
b. For PRAC units ________
c. For all other units _______
State the vacancy factor used in development processing.
a. Number of assisted families admitted in last two years. (For new projects, state date of initial occupancy and period the data covers.) _____
b. Number of families in 3.a who were very low-income at admission ______
c. Line 3.b divided by line 3.a: 3.b / 3.a ______
Number of current tenants who are:
a. Low-income but not very low-income _____
b. Very low-income ______
c. Paying market rent ______
Describe what you have done to attract very low-income applicants. Specify dates, methods, and whom you contacted. Marketing must include contacting the local Housing Authority to verify if there is anyone on the Housing Authority waiting list that is income/age eligible. Include copies of recent advertisements. The text of each advertisement must mention the availability of the subsidy to reduce tenant rent to 30% of income and give an example of income eligibility.
Describe what more you will do to attract qualified very low-income applicants and indicate how many you expect to attract during each of the next four quarters.
form HUD-90104 12/2007
4 of 6
U.S. Department of Housing OMB Approval No. 2502-0204 (exp. 03/31/2014) and Urban Development Office of Housing Federal Housing Commissioner
Exception to Limitations on Admission of Families
- C. Submit the following only if you are requesting an exception because the very lowincome population is too small to provide sustaining occupancy.
List all market studies and surveys of which you are aware.
Include studies you, State agencies, the Rural Housing Service, or anyone else has done. Briefly summarize those studies' conclusions as to the income levels of potential applicants in your project's market area and any nearby market area.
- D. Submit the following additional information if you are requesting an exception because a default is likely.
Explain why vacancy payments will not provide adequate protection while you seek very low-income applicants.
State the cause of any vacancy payments or cash-flow problems. State which types of units, if any, are particularly hard to rent.
For each of the last six months, provide the financial and vacancy information listed below. If some of this information is available on monthly accounting reports already sent to the Field Office, the Field Office may authorize you to submit only the information those reports don't cover.
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