HUD Handbook 4350.3: Occupancy Requirements of Subsidized Multifamily Housing Programs
Examples – Eligible Applicants with Disabilities
HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs · 2026 edition · updated 2026-07-29 · United States
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
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
6/07
3-64
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.
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:
The owner can adequately serve the proposed disabled population based on past experience in serving the proposed population;
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;
The need for the original occupancy category no longer exists;
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
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.
The request and recommendation of the HUD field office is sent to the HUD Multifamily HUB Director for approval.
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Ask AI about this code▸ Contents — HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs
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▸ HUD Handbook 4350.3: Occupancy Requirements of Subsidized Mult…
Overview- 1. This Transmits
- 2. Implementation:
- 1. This Transmits
- H. Chapter 8. Termination
- L. Glossary
- 2. Implementation:
- C. Chapter 1, Introduction
- E. Chapter 3, Eligibility for Assistance and Occupancy
- F. Chapter 4, Waiting List and Tenant Selection
- G. Chapter 5, Determining Income and Calculating Rent
- H. Chapter 6, Lease Requirement and Leasing Activities
- I. Chapter 7, Recertification, Unit Transfers, and Gross Rent …
- K. Chapter 9, Required HUD-50059 and Subsidy Data Reporting
- L. Glossary
- M. Appendices
- N. Exhibits
- 4. Filing Instructions
- 1. This Transmits
- 2. Implementation
- 3. Explanation of Materials Transmitted
- C. Chapter 1, Introduction
- D. Chapter 2, Civil Rights and Nondiscrimination Requirements
- E. Chapter 3, Eligibility for Assistance and Occupancy
- F. Chapter 4, Waiting List and Tenant Selection
- I. Chapter 7, Recertification, Unit Transfers, and Gross Rent …
- J. Chapter 8, Termination
- K. Chapter 9, Required HUD-50059 and Subsidy Data Reporting
- L. Appendices:
- M.Glossary:
- 4. Filing Instructions
- Paperwork Reduction Act Certification Occupancy Requirements o…
- CHAPTER 1. INTRODUCTION
- CHAPTER 2. CIVIL RIGHTS AND NONDISCRIMINATION REQUIREMENTS
- SECTION 3: VERIFICATION OF ELIGIBILITY FACTORS................…
- CHAPTER 4. WAITING LIST AND TENANT SELECTION
- SECTION 3: WAITING LIST MANAGEMENT............................…
- CHAPTER 9. ENTERPRISE INCOME VERIFICATION (EIV)
- CHAPTER 1. INTRODUCTION
- 1-1 Purpose of This Handbook
- 1-2 Programs Subject to This Handbook
- State Agency Financed Properties
- Figure 1-1: Programs Subject to This Handbook
- C. How Applicability Varies
- A. Financing Subsidies: Mortgage Insurance and Mortgage Intere…
- B. Direct Loans and Capital Advances
- C. Project Rental Subsidies
- 1-4 Contract Administrators
- 1-5 Principles for Addressing Overlapping Federal, State, and …
- B. Statutory Program Eligibility Requirements
- C. Multiple Federal Laws
- D. Overlap Between Federal and State/Local Nondiscrimination L…
- A. Organization of Chapters
- B. Format
- Key Terms
- A. Relevant HUD Handbooks
- B. Other HUD Publications and Information
- HUDCLIPS Website.
- C. Ordering Publications
- Handbook Waivers, Key Statutes, and Regulations
- CHAPTER 2. CIVIL RIGHTS AND NONDISCRIMINATION REQUIREMENTS
- 2-1 Introduction
- 2-2 Key Terms
- Section 1: Applicable Laws
- 2-3 Key Regulations and Statute
- General Provisions
- 2-5 Fair Housing Act, Title VIII of the Civil Rights Act of l968
- Obligation to Affirmatively Further Fair Housing
- E. Fair Housing Poster
- Title VI of the Civil Rights Act of 1964
- 2-7 Age Discrimination Act of 1975
- 2-8 Section 504 of the Rehabilitation Act of 1973
- 2-9 Civil Rights Related Program Requirements
- 2-10 Title VI, Subtitle D of the Housing and Community Develop…
- 2-11 Required Data and Record-Keeping
- 2-12 Principles for Addressing Overlapping Federal, State, and…
- Section 2: Nondiscrimination Requirements Under the Fair Housi…
- 2-13 Key Regulation
- 2-14 General
- 2-15 Unlawful Refusal to Rent or Negotiate for Rental
- 2-16 Other Prohibited Rental Activities
- 2-17 Discrimination in the Representation of Available Dwellings
- 2-18 Discrimination in Terms, Conditions, Privileges, Services…
- 2-19 Discrimination in Marketing, Statements, and Notices
- 2-20 Retaliatory Occupancy Practices, Coercion, Intimidation, …
- Section 3: Additional Nondiscrimination and Accessibility Requ…
- 2-21 Key Regulations
- 2-22 Introduction
- 2-23 Definition of Persons with Disabilities for Civil Rights …
- Definitions for Program Eligibility Purposes
- 2-24 Applicability
- 2-25 Overview of Key Requirements
- B. Projects with Multiple Contracts
- C. Allowable Methods of Compliance
- D. Prioritizing Methods
- Accessible Unit Requirements
- 2-26 Technical Resources
- 2-27 Nondiscrimination in Owner Policies
- Example – Discriminatory Policies and Practices
- Example – Neutral Discrimination Policies
- 2-28 Coordinating Efforts to Comply with Section 504 Requireme…
- 2-29 Communications with Persons with Disabilities
- B. Providing Auxiliary Aids to Ensure Effective Communication …
- Example - Reasonable Requests for Auxiliary Aids
- Example - Auxiliary Aids that Owners Are Not Required to Provide
- C. Written Communications
- Example - Communicating Accessibility Features
- Telecommunications
- 2-30 Information about Availability of Accessible Units
- 2-31 Determining Eligibility of Applicants for Admission and A…
- Example – What Owners May Ask or Must Not Ask Applicants Apply…
- A. Applicability
- Eligibility for Accessible Units
- 2-33 Moving Tenants Who Require Special Features into Accessib…
- Example – When Owners Should Move Tenants to Accessible Units
- 2-34 Owner Self-Evaluation
- A. General
- B. Federally Assisted Multifamily Properties Built after July …
- Accessible Routes
- D. Common Use Facilities
- E. Physical Alterations to Existing Housing
- 2-36 Building Standards
- 2-37 Limitations on Owners’ Obligations to Make Their Housing …
- 2-38 General
- 2-39 What Are Reasonable Accommodations?
- 2-40 Key Principles Regarding Reasonable Accommodations
- 2-41 Reasonable Accommodations – Property Operations
- 2-42 Reasonable Accommodations – Physical Alterations
- Example – When Owners Must Make Reasonable Accommodations
- Example – Requests for Reasonable Accommodations or Housing Ad…
- 2-43 Limits on Obligations to Provide Reasonable Accommodations
- Example – Reasonable Accommodation that Creates an Undue Finan…
- Example – Reasonable Accommodation that Does Not Create an Und…
- 2-44 Assistance Animals as a Reasonable Accommodation
- 2-45 Fair Housing Act Basic Accessibility Requirements
- 2-46 Additional Fair Housing Act Requirement to Allow Tenant M…
- 2-47 Owner and Tenant Responsibilities When Tenant Modifies Un…
- Example – Owners Requiring Tenants to Restore Units to Their O…
- Section 4: Housing Discrimination Complaints and Compliance Re…
- 2-48 Housing Discrimination Complaints
- 2-49 Compliance Reviews
- Chapter 2 Exhibits
- Exhibit 2-1: Distribution of Accessible Units
- OR
- OR
- NOTES:
- Exhibit 2-3: Sample Notification of Nondiscrimination on the B…
- INSTRUCTIONS:
- Exhibit 2-4: Suggested Checklist to Determine Whether a Commun…
- Exhibit 2-5: Examples of Fundamental Alterations
- EXHIBIT 2-6: EXAMPLES OF UNDUE FINANCIAL AND ADMINISTRATIVE BU…
- CHAPTER 3. ELIGIBILITY FOR ASSISTANCE AND OCCUPANCY
- 3-1 Introduction
- 3-2 Key Terms
- Section 1: Program Eligibility
- 3-3 Key Regulations
- 3-4 Eligibility Determinations – General
- 3-5 Key Program Eligibility Requirements
- Income Limits
- A. Income Eligibility
- B. Establishing Income Limits
- Timing of Income Eligibility Determinations
- Program Income Limits
- Figure 3-2: Income Limits
- Figure 3-3: Income Limits by Program
- E. Income Limits and Family Size
- A. Post-1981 Universe
- B. Pre-1981 Universe
- C. Eligible In-Place Tenants (Exceptions to the income limits …
- D. Exceptions to the Income Limits for Post-1981 Properties Re…
- E. Procedures for Requesting and Using Exceptions to the Very …
- F. Exceptions to Section 8 Income Targeting Requirements
- 3-8 Admitting Over-Income Applicants
- A. Section 8, Section 202/8, Section 202 PAC, Section 202 PRAC…
- B. BMIR Units
- C. Section 236, Rent Supplement, and RAP Units
- Example – Admission of Market Rent Applicants
- D. Admission of Police Officers or Security Personnel in Secti…
- 3-9 Disclosure of Social Security Numbers
- B. Required Documentation
- C. Provisions for Applicants Disclosure and/or Documentation o…
- b. Under the Age of Six Without an Assigned SSN.
- 3-10 Residence Criteria
- Sole Residence Requirement
- Prohibition Against Double Subsidies
- 3-11 Consent and Verification Forms
- B. Who Must Sign Consent and Verification Forms
- Provisions for Refusal to Sign
- 3-12 Restriction on Assistance to Noncitizens
- Key Requirements
- C. Administration of Restriction on Assistance to Noncitizen
- Protection from Liability for Project Owners
- Reviewing a Family’s Citizenship/Immigration Status
- Applicability
- Notification to Applicants
- H. Owner Preparation to Collect Documentation of Citizenship/I…
- Required Documentation of Citizenship/Immigration Status
- J. Timeframes for Submitting Evidence of Citizenship/Immigrati…
- Example – DHS Verification Process Delayed
- L. Verifying Information on Immigration Status
- Appealing Determinations of Ineligibility
- Mixed Families
- O. Continued Assistance
- Prorated Assistance
- Example – Section 8 or Rent Supplement Prorated Rent
- Example – Section 8 Prorated Rent (with utility allowance)
- Example – Project-Based Subsidy (Section 236) Programs
- Q. Temporary Deferral of Termination of Assistance
- Example – Project-Based and Individual Tenant Subsidy Programs…
- R. Prohibition of Assistance to Noncitizen Students
- 3-13 Determining Eligibility of Students for Assistance
- Example:
- B. Eligibility of Students for Other Assistance Programs
- Section 2: Project Eligibility
- 3-14 Key Regulations
- B. Eligibility for Admission to Individual Section 202, Sectio…
- Occupancy Standards
- 3-15 Program versus Project Eligibility
- 3-16 Determining the Eligibility of a Remaining Member of a Te…
- 3-17 Definitions of Elderly and Disability Used to Determine P…
- Figure 3-5: Applicable Definitions for Elderly and Disability …
- Figure 3-5: Applicable Definitions for Elderly and Disability …
- Figure 3-6: Applicable Definitions of Elderly and Disability -…
- Definition A – Elderly Family. [24 CFR 5.403]
- Definition B – Elderly Family. [24 CFR 891.505] Elderly famili…
- Disability Definitions
- Figure 3-6: Applicable Definitions of Elderly and Disability -…
- Figure 3-6: Applicable Definitions of Elderly and Disability -…
- Definition E – Person with Disabilities (continued)
- (Continued)
- Figure 3-6: Applicable Definitions of Elderly and Disability -…
- Figure 3-6: Applicable Definitions of Elderly and Disability -…
- 3-18 Eligibility Requirements for Admission to Elderly Project…
- A. Owner-Adopted Preferences for Elderly, Disabled, Nonelderly…
- Sources in conflict.
- Example – Establishing the Number of Units for Nonelderly Pers…
- B. Owner-Adopted Elderly Restrictions in Certain Federally Ass…
- Sources in conflict
- 3-19 Eligibility Requirements for Admission to Elderly Project…
- Section 221(d)(3) with a Rent Supplement Contract;
- C. Prepaid Projects with Formerly HUD-Insured Mortgages Under …
- 3-20 Eligibility for Admission to Individual Section 202, Sect…
- Examples – Eligible Applicants with Disabilities
- 3-21 Applicants with Housing Choice Vouchers
- Partially Assisted Properties
- C. Section 236, Section 221(d)(3) BMIR, and Section 202 Units …
- D. Previously HUD-Owned Projects
- 3-22 Eligibility of Single Persons
- 3-23 Occupancy Standards
- Key Requirements
- C. Timeframe for Applying Occupancy Standards
- Prohibition of Occupancy Standards that Exclude Children
- F. Assigning a Smaller Unit Than Required
- Assigning Units Larger Than Required
- H. Change in Family Size After Initial Occupancy
- Example - Change in Family Size
- b. Subsidized housing cooperatives.
- I. Change in Need for Accessible Features
- Section 3: Verification of Eligibility Factors
- 3-24 Key Regulations
- 3-25 Introduction
- 3-26 Key Requirements
- 3-27 Verification of Family Composition
- 3-28 Verification of Family Type and Individual Status
- B. Disability
- C. Age
- 3-29 Verification of the Need for an Assistance Animal
- 3-30 Verification of Income Eligibility
- 3-31 Verification of Social Security Numbers
- 3-32 Verification of Citizenship and Immigration Status
- 3-33 Verifying Eligibility of a Student for Assistance
- B. Verification of Eligibility of Students for Other Assistanc…
- Chapter 3 Exhibits
- Exhibit 3-1: Request for Exception to Limitations on Admission…
- Signed by:
- SITUATION 1: Displaced Tenant
- SITUATION 2: Project Financed Under Section 11(b) or Section 103
- SITUATION 3: Project Supervised by a State Agency
- SITUATION 4: Project Approved Based on Agreement to Comply wit…
- SITUATION 5: Units Designed for a Specific Occupant Group
- SITUATION 6: Insufficient Number of Very Low-Income Applicants
- Financial and Vacancy Data Required for Exceptions Under Situa…
- Month-End Accounts
- Month-End Accounts
- ==============================================================…
- Part IV
- Fair Housing Enforcement— Occupancy Standards Notice of Statem…
- FOR FURTHER INFORMATION CONTACT:
- Statutory and Regulatory Background
- This Notice
- Eva M. Plaza,
- Size of bedrooms and unit
- Age of children
- Configuration of unit
- Other physical limitations of housing
- State and local law
- Other relevant factors
- Exhibit 3-3: Sample Owners Notice No. 1
- Exhibit 3-5: Sample Citizenship Declaration
- DECLARATION
- AND
- Exhibit 3-6: Sample Verification Consent Form
- CONSENT
- NOTIFICATION TO FAMILY:
- Exhibit 3-7: Sample Owner’s Summary of Family
- Exhibit 3-8: Sample Owner’s Notice No. 2 for a Tenant Family
- Prorated assistance
- Temporary deferral of termination of assistance
- OPTION SHEET
- Exhibit 3-9: Sample Owner’s Notice No. 2 for an Applicant Family
- OPTION SHEET
- Exhibit 3-10: Sample Owner’s Notice No. 3 for a Tenant Family …
- [USE THE FOLLOWING FOR AN ELIGIBLE TENANT FAMILY]
- [USE THE FOLLOWING FOR A MIXED TENANT FAMILY]
- Prorated Assistance
- Temporary deferral of termination of assistance
- [USE THE FOLLOWING FOR AN INELIGIBLE TENANT FAMILY]
- Exhibit 3-11: Sample Owner’s Notice No. 3 for an Applicant Fam…
- [USE THE FOLLOWING FOR AN ELIGIBLE APPLICANT FAMILY]
- [USE THE FOLLOWING FOR A MIXED APPLICANT FAMILY]
- [USE THE FOLLOWING FOR AN INELIGIBLE APPLICANT FAMILY]
- Exhibit 3-12: Section 8, RAP, and Rent Supplement Programs – S…
- Exhibit 3-13: Section 236 Without Additional Assistance – Spec…
- Exhibit 3-14: Section 236 With Benefit of Additional Assistanc…
- Document Package for Applicant's/Tenant's Consent to the Relea…
- Exhibit 7-2: Sample Annual Recertification First Reminder Notice
- Exhibit 7-4: Sample Annual Recertification Third Reminder Noti…
- SAMPLE TENANT CONSENT TO DISCLOSE EIV INCOME INFORMATION
- Applying the Model Lease for Subsidized Programs to Individual…
- Applying the Model Leases for Section 202 PRAC and Section 811…
- Sample Move-In/Move-Out Inspection Form
- Memorandum February 5, 2002: Fact Sheets for Project-Based Ass…