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HUD Handbook 4350.3: Occupancy Requirements of Subsidized Multifamily Housing Programs

I. Change in Need for Accessible Features

HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs · 2026 edition · updated 2026-07-29 · United States

If a family is in an accessible unit but no longer needs the accessible features, the owner may request that the family move to another unit in the project. For such a request to be enforceable, this provision must be made in the lease.

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▸ Contents — HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs
HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs
  1. ▸ HUD Handbook 4350.3: Occupancy Requirements of Subsidized Mult…
    Overview
    1. 1. This Transmits
    2. 2. Implementation:
    3. 1. This Transmits
    4. H. Chapter 8. Termination
    5. L. Glossary
    6. 2. Implementation:
    7. C. Chapter 1, Introduction
    8. E. Chapter 3, Eligibility for Assistance and Occupancy
    9. F. Chapter 4, Waiting List and Tenant Selection
    10. G. Chapter 5, Determining Income and Calculating Rent
    11. H. Chapter 6, Lease Requirement and Leasing Activities
    12. I. Chapter 7, Recertification, Unit Transfers, and Gross Rent …
    13. K. Chapter 9, Required HUD-50059 and Subsidy Data Reporting
    14. L. Glossary
    15. M. Appendices
    16. N. Exhibits
    17. 4. Filing Instructions
    18. 1. This Transmits
    19. 2. Implementation
    20. 3. Explanation of Materials Transmitted
    21. C. Chapter 1, Introduction
    22. D. Chapter 2, Civil Rights and Nondiscrimination Requirements
    23. E. Chapter 3, Eligibility for Assistance and Occupancy
    24. F. Chapter 4, Waiting List and Tenant Selection
    25. I. Chapter 7, Recertification, Unit Transfers, and Gross Rent …
    26. J. Chapter 8, Termination
    27. K. Chapter 9, Required HUD-50059 and Subsidy Data Reporting
    28. L. Appendices:
    29. M.Glossary:
    30. 4. Filing Instructions
    31. Paperwork Reduction Act Certification Occupancy Requirements o…
    32. CHAPTER 1. INTRODUCTION
    33. CHAPTER 2. CIVIL RIGHTS AND NONDISCRIMINATION REQUIREMENTS
    34. SECTION 3: VERIFICATION OF ELIGIBILITY FACTORS................…
    35. CHAPTER 4. WAITING LIST AND TENANT SELECTION
    36. SECTION 3: WAITING LIST MANAGEMENT............................…
    37. CHAPTER 9. ENTERPRISE INCOME VERIFICATION (EIV)
    38. CHAPTER 1. INTRODUCTION
    39. 1-1 Purpose of This Handbook
    40. 1-2 Programs Subject to This Handbook
    41. State Agency Financed Properties
    42. Figure 1-1: Programs Subject to This Handbook
    43. C. How Applicability Varies
    44. A. Financing Subsidies: Mortgage Insurance and Mortgage Intere…
    45. B. Direct Loans and Capital Advances
    46. C. Project Rental Subsidies
    47. 1-4 Contract Administrators
    48. 1-5 Principles for Addressing Overlapping Federal, State, and …
    49. B. Statutory Program Eligibility Requirements
    50. C. Multiple Federal Laws
    51. D. Overlap Between Federal and State/Local Nondiscrimination L…
    52. A. Organization of Chapters
    53. B. Format
    54. Key Terms
    55. A. Relevant HUD Handbooks
    56. B. Other HUD Publications and Information
    57. HUDCLIPS Website.
    58. C. Ordering Publications
    59. Handbook Waivers, Key Statutes, and Regulations
    60. CHAPTER 2. CIVIL RIGHTS AND NONDISCRIMINATION REQUIREMENTS
    61. 2-1 Introduction
    62. 2-2 Key Terms
    63. Section 1: Applicable Laws
    64. 2-3 Key Regulations and Statute
    65. General Provisions
    66. 2-5 Fair Housing Act, Title VIII of the Civil Rights Act of l968
    67. Obligation to Affirmatively Further Fair Housing
    68. E. Fair Housing Poster
    69. Title VI of the Civil Rights Act of 1964
    70. 2-7 Age Discrimination Act of 1975
    71. 2-8 Section 504 of the Rehabilitation Act of 1973
    72. 2-9 Civil Rights Related Program Requirements
    73. 2-10 Title VI, Subtitle D of the Housing and Community Develop…
    74. 2-11 Required Data and Record-Keeping
    75. 2-12 Principles for Addressing Overlapping Federal, State, and…
    76. Section 2: Nondiscrimination Requirements Under the Fair Housi…
    77. 2-13 Key Regulation
    78. 2-14 General
    79. 2-15 Unlawful Refusal to Rent or Negotiate for Rental
    80. 2-16 Other Prohibited Rental Activities
    81. 2-17 Discrimination in the Representation of Available Dwellings
    82. 2-18 Discrimination in Terms, Conditions, Privileges, Services…
    83. 2-19 Discrimination in Marketing, Statements, and Notices
    84. 2-20 Retaliatory Occupancy Practices, Coercion, Intimidation, …
    85. Section 3: Additional Nondiscrimination and Accessibility Requ…
    86. 2-21 Key Regulations
    87. 2-22 Introduction
    88. 2-23 Definition of Persons with Disabilities for Civil Rights …
    89. Definitions for Program Eligibility Purposes
    90. 2-24 Applicability
    91. 2-25 Overview of Key Requirements
    92. B. Projects with Multiple Contracts
    93. C. Allowable Methods of Compliance
    94. D. Prioritizing Methods
    95. Accessible Unit Requirements
    96. 2-26 Technical Resources
    97. 2-27 Nondiscrimination in Owner Policies
    98. Example – Discriminatory Policies and Practices
    99. Example – Neutral Discrimination Policies
    100. 2-28 Coordinating Efforts to Comply with Section 504 Requireme…
    101. 2-29 Communications with Persons with Disabilities
    102. B. Providing Auxiliary Aids to Ensure Effective Communication …
    103. Example - Reasonable Requests for Auxiliary Aids
    104. Example - Auxiliary Aids that Owners Are Not Required to Provide
    105. C. Written Communications
    106. Example - Communicating Accessibility Features
    107. Telecommunications
    108. 2-30 Information about Availability of Accessible Units
    109. 2-31 Determining Eligibility of Applicants for Admission and A…
    110. Example – What Owners May Ask or Must Not Ask Applicants Apply…
    111. A. Applicability
    112. Eligibility for Accessible Units
    113. 2-33 Moving Tenants Who Require Special Features into Accessib…
    114. Example – When Owners Should Move Tenants to Accessible Units
    115. 2-34 Owner Self-Evaluation
    116. A. General
    117. B. Federally Assisted Multifamily Properties Built after July …
    118. Accessible Routes
    119. D. Common Use Facilities
    120. E. Physical Alterations to Existing Housing
    121. 2-36 Building Standards
    122. 2-37 Limitations on Owners’ Obligations to Make Their Housing …
    123. 2-38 General
    124. 2-39 What Are Reasonable Accommodations?
    125. 2-40 Key Principles Regarding Reasonable Accommodations
    126. 2-41 Reasonable Accommodations – Property Operations
    127. 2-42 Reasonable Accommodations – Physical Alterations
    128. Example – When Owners Must Make Reasonable Accommodations
    129. Example – Requests for Reasonable Accommodations or Housing Ad…
    130. 2-43 Limits on Obligations to Provide Reasonable Accommodations
    131. Example – Reasonable Accommodation that Creates an Undue Finan…
    132. Example – Reasonable Accommodation that Does Not Create an Und…
    133. 2-44 Assistance Animals as a Reasonable Accommodation
    134. 2-45 Fair Housing Act Basic Accessibility Requirements
    135. 2-46 Additional Fair Housing Act Requirement to Allow Tenant M…
    136. 2-47 Owner and Tenant Responsibilities When Tenant Modifies Un…
    137. Example – Owners Requiring Tenants to Restore Units to Their O…
    138. Section 4: Housing Discrimination Complaints and Compliance Re…
    139. 2-48 Housing Discrimination Complaints
    140. 2-49 Compliance Reviews
    141. Chapter 2 Exhibits
    142. Exhibit 2-1: Distribution of Accessible Units
    143. OR
    144. OR
    145. NOTES:
    146. Exhibit 2-3: Sample Notification of Nondiscrimination on the B…
    147. INSTRUCTIONS:
    148. Exhibit 2-4: Suggested Checklist to Determine Whether a Commun…
    149. Exhibit 2-5: Examples of Fundamental Alterations
    150. EXHIBIT 2-6: EXAMPLES OF UNDUE FINANCIAL AND ADMINISTRATIVE BU…
    151. CHAPTER 3. ELIGIBILITY FOR ASSISTANCE AND OCCUPANCY
    152. 3-1 Introduction
    153. 3-2 Key Terms
    154. Section 1: Program Eligibility
    155. 3-3 Key Regulations
    156. 3-4 Eligibility Determinations – General
    157. 3-5 Key Program Eligibility Requirements
    158. Income Limits
    159. A. Income Eligibility
    160. B. Establishing Income Limits
    161. Timing of Income Eligibility Determinations
    162. Program Income Limits
    163. Figure 3-2: Income Limits
    164. Figure 3-3: Income Limits by Program
    165. E. Income Limits and Family Size
    166. A. Post-1981 Universe
    167. B. Pre-1981 Universe
    168. C. Eligible In-Place Tenants (Exceptions to the income limits …
    169. D. Exceptions to the Income Limits for Post-1981 Properties Re…
    170. E. Procedures for Requesting and Using Exceptions to the Very …
    171. F. Exceptions to Section 8 Income Targeting Requirements
    172. 3-8 Admitting Over-Income Applicants
    173. A. Section 8, Section 202/8, Section 202 PAC, Section 202 PRAC…
    174. B. BMIR Units
    175. C. Section 236, Rent Supplement, and RAP Units
    176. Example – Admission of Market Rent Applicants
    177. D. Admission of Police Officers or Security Personnel in Secti…
    178. 3-9 Disclosure of Social Security Numbers
    179. B. Required Documentation
    180. C. Provisions for Applicants Disclosure and/or Documentation o…
    181. b. Under the Age of Six Without an Assigned SSN.
    182. 3-10 Residence Criteria
    183. Sole Residence Requirement
    184. Prohibition Against Double Subsidies
    185. 3-11 Consent and Verification Forms
    186. B. Who Must Sign Consent and Verification Forms
    187. Provisions for Refusal to Sign
    188. 3-12 Restriction on Assistance to Noncitizens
    189. Key Requirements
    190. C. Administration of Restriction on Assistance to Noncitizen
    191. Protection from Liability for Project Owners
    192. Reviewing a Family’s Citizenship/Immigration Status
    193. Applicability
    194. Notification to Applicants
    195. H. Owner Preparation to Collect Documentation of Citizenship/I…
    196. Required Documentation of Citizenship/Immigration Status
    197. J. Timeframes for Submitting Evidence of Citizenship/Immigrati…
    198. Example – DHS Verification Process Delayed
    199. L. Verifying Information on Immigration Status
    200. Appealing Determinations of Ineligibility
    201. Mixed Families
    202. O. Continued Assistance
    203. Prorated Assistance
    204. Example – Section 8 or Rent Supplement Prorated Rent
    205. Example – Section 8 Prorated Rent (with utility allowance)
    206. Example – Project-Based Subsidy (Section 236) Programs
    207. Q. Temporary Deferral of Termination of Assistance
    208. Example – Project-Based and Individual Tenant Subsidy Programs…
    209. R. Prohibition of Assistance to Noncitizen Students
    210. 3-13 Determining Eligibility of Students for Assistance
    211. Example:
    212. B. Eligibility of Students for Other Assistance Programs
    213. Section 2: Project Eligibility
    214. 3-14 Key Regulations
    215. B. Eligibility for Admission to Individual Section 202, Sectio…
    216. Occupancy Standards
    217. 3-15 Program versus Project Eligibility
    218. 3-16 Determining the Eligibility of a Remaining Member of a Te…
    219. 3-17 Definitions of Elderly and Disability Used to Determine P…
    220. Figure 3-5: Applicable Definitions for Elderly and Disability …
    221. Figure 3-5: Applicable Definitions for Elderly and Disability …
    222. Figure 3-6: Applicable Definitions of Elderly and Disability -…
    223. Definition A – Elderly Family. [24 CFR 5.403]
    224. Definition B – Elderly Family. [24 CFR 891.505] Elderly famili…
    225. Disability Definitions
    226. Figure 3-6: Applicable Definitions of Elderly and Disability -…
    227. Figure 3-6: Applicable Definitions of Elderly and Disability -…
    228. Definition E – Person with Disabilities (continued)
    229. (Continued)
    230. Figure 3-6: Applicable Definitions of Elderly and Disability -…
    231. Figure 3-6: Applicable Definitions of Elderly and Disability -…
    232. 3-18 Eligibility Requirements for Admission to Elderly Project…
    233. A. Owner-Adopted Preferences for Elderly, Disabled, Nonelderly…
    234. Sources in conflict.
    235. Example – Establishing the Number of Units for Nonelderly Pers…
    236. B. Owner-Adopted Elderly Restrictions in Certain Federally Ass…
    237. Sources in conflict
    238. 3-19 Eligibility Requirements for Admission to Elderly Project…
    239. Section 221(d)(3) with a Rent Supplement Contract;
    240. C. Prepaid Projects with Formerly HUD-Insured Mortgages Under …
    241. 3-20 Eligibility for Admission to Individual Section 202, Sect…
    242. Examples – Eligible Applicants with Disabilities
    243. 3-21 Applicants with Housing Choice Vouchers
    244. Partially Assisted Properties
    245. C. Section 236, Section 221(d)(3) BMIR, and Section 202 Units …
    246. D. Previously HUD-Owned Projects
    247. 3-22 Eligibility of Single Persons
    248. 3-23 Occupancy Standards
    249. Key Requirements
    250. C. Timeframe for Applying Occupancy Standards
    251. Prohibition of Occupancy Standards that Exclude Children
    252. F. Assigning a Smaller Unit Than Required
    253. Assigning Units Larger Than Required
    254. H. Change in Family Size After Initial Occupancy
    255. Example - Change in Family Size
    256. b. Subsidized housing cooperatives.
    257. I. Change in Need for Accessible Features
    258. Section 3: Verification of Eligibility Factors
    259. 3-24 Key Regulations
    260. 3-25 Introduction
    261. 3-26 Key Requirements
    262. 3-27 Verification of Family Composition
    263. 3-28 Verification of Family Type and Individual Status
    264. B. Disability
    265. C. Age
    266. 3-29 Verification of the Need for an Assistance Animal
    267. 3-30 Verification of Income Eligibility
    268. 3-31 Verification of Social Security Numbers
    269. 3-32 Verification of Citizenship and Immigration Status
    270. 3-33 Verifying Eligibility of a Student for Assistance
    271. B. Verification of Eligibility of Students for Other Assistanc…
    272. Chapter 3 Exhibits
    273. Exhibit 3-1: Request for Exception to Limitations on Admission…
    274. Signed by:
    275. SITUATION 1: Displaced Tenant
    276. SITUATION 2: Project Financed Under Section 11(b) or Section 103
    277. SITUATION 3: Project Supervised by a State Agency
    278. SITUATION 4: Project Approved Based on Agreement to Comply wit…
    279. SITUATION 5: Units Designed for a Specific Occupant Group
    280. SITUATION 6: Insufficient Number of Very Low-Income Applicants
    281. Financial and Vacancy Data Required for Exceptions Under Situa…
    282. Month-End Accounts
    283. Month-End Accounts
    284. ==============================================================…
    285. Part IV
    286. Fair Housing Enforcement— Occupancy Standards Notice of Statem…
    287. FOR FURTHER INFORMATION CONTACT:
    288. Statutory and Regulatory Background
    289. This Notice
    290. Eva M. Plaza,
    291. Size of bedrooms and unit
    292. Age of children
    293. Configuration of unit
    294. Other physical limitations of housing
    295. State and local law
    296. Other relevant factors
    297. Exhibit 3-3: Sample Owners Notice No. 1
    298. Exhibit 3-5: Sample Citizenship Declaration
    299. DECLARATION
    300. AND
    301. Exhibit 3-6: Sample Verification Consent Form
    302. CONSENT
    303. NOTIFICATION TO FAMILY:
    304. Exhibit 3-7: Sample Owner’s Summary of Family
    305. Exhibit 3-8: Sample Owner’s Notice No. 2 for a Tenant Family
    306. Prorated assistance
    307. Temporary deferral of termination of assistance
    308. OPTION SHEET
    309. Exhibit 3-9: Sample Owner’s Notice No. 2 for an Applicant Family
    310. OPTION SHEET
    311. Exhibit 3-10: Sample Owner’s Notice No. 3 for a Tenant Family …
    312. [USE THE FOLLOWING FOR AN ELIGIBLE TENANT FAMILY]
    313. [USE THE FOLLOWING FOR A MIXED TENANT FAMILY]
    314. Prorated Assistance
    315. Temporary deferral of termination of assistance
    316. [USE THE FOLLOWING FOR AN INELIGIBLE TENANT FAMILY]
    317. Exhibit 3-11: Sample Owner’s Notice No. 3 for an Applicant Fam…
    318. [USE THE FOLLOWING FOR AN ELIGIBLE APPLICANT FAMILY]
    319. [USE THE FOLLOWING FOR A MIXED APPLICANT FAMILY]
    320. [USE THE FOLLOWING FOR AN INELIGIBLE APPLICANT FAMILY]
  2. Exhibit 3-12: Section 8, RAP, and Rent Supplement Programs – S…
  3. Exhibit 3-13: Section 236 Without Additional Assistance – Spec…
  4. Exhibit 3-14: Section 236 With Benefit of Additional Assistanc…
  5. Document Package for Applicant's/Tenant's Consent to the Relea…
  6. Exhibit 7-2: Sample Annual Recertification First Reminder Notice
  7. Exhibit 7-4: Sample Annual Recertification Third Reminder Noti…
  8. SAMPLE TENANT CONSENT TO DISCLOSE EIV INCOME INFORMATION
  9. Applying the Model Lease for Subsidized Programs to Individual…
  10. Applying the Model Leases for Section 202 PRAC and Section 811…
  11. Sample Move-In/Move-Out Inspection Form
  12. Memorandum February 5, 2002: Fact Sheets for Project-Based Ass…

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