PART 960—ADMISSION TO, AND OCCUPANCY OF, PUBLIC HOUSING Authority: 42 U.S.C. 1437a, 1437c, 1437d, 1437n, 1437z-3, and 3535(d). Source: 40 FR 33446, Aug. 8, 1975, unless otherwise noted. Redesignated at 49 FR 6714, Feb. 23, 1984. Subpart A—Applicability, Definitions, Equal Opportunity Requirements Source: 65 FR 16724, Mar. 29, 2000, unless otherwise noted. § 960.101 Applicability. This part is applicable to public housing. § 960.102 Definitions. (a) Definitions found elsewhere: (1) General definitions. (2) Definitions under the 1937 Act. (3) Definitions and explanations concerning income and rent. (b) Additional definitions. Alternative non-public housing rent. (i) The applicable fair market rent, as defined in 24 CFR part 888, subpart A, for the unit; or (ii) The amount of the monthly subsidy provided for the unit, which will be determined by adding the per unit assistance provided to a public housing property as calculated through the applicable formulas for the Public Housing Capital Fund and Public Housing Operating Fund. (A) For the Public Housing Capital Fund, the amount of Capital Funds provided to the unit will be calculated as the per unit Capital Fund assistance provided to a PHA for the development in which the family resides for the most recent funding year for which Capital Funds have been allocated; (B) For the Public Housing Operating Fund, the amount of Operating Funds provided to the unit will be calculated as the per unit amount provided to the public housing project where the unit is located for the most recent funding year for which a final funding obligation determination has been made; (C) HUD will publish such funding amounts no later than December 31 each year. Ceiling rent. Covered housing provider. Covered person. Designated housing. Disabled families. Eligible families. Flat rent. Income-based rent. Mixed population development. Non-public housing over-income family. Over-income family. Over-income limit. PHA plan. Residency preference. Tenant-based. [65 FR 16724, Mar. 29, 2000, as amended at 66 FR 28799, May 24, 2001; 81 FR 12372, Mar. 8, 2016; 81 FR 80815, Nov. 16, 2016; 88 FR 9669, Feb. 14, 2023] § 960.103 Equal opportunity requirements and protection for victims of domestic violence, dating violence, sexual assault, or stalking. (a) Applicable requirements. (b) PHA duty to affirmatively further fair housing. (c) Equal opportunity certification. (d) Protection for victims of domestic violence, dating violence, sexual assault, or stalking. [65 FR 16724, Mar. 29, 2000, as amended at 73 FR 72344, Nov. 28, 2008; 75 FR 66262, Oct. 27, 2010; 81 FR 80815, Nov. 16, 2016] Subpart B—Admission Source: 66 FR 28799, May 24, 2001, unless otherwise noted. § 960.200 Purpose. (a) This subpart states HUD eligibility and selection requirements for admission to public housing. (b) See also related HUD regulations in this title concerning these subjects: (1) 1937 Act definitions: part 5, subpart D; (2) Restrictions on assistance to noncitizens: part 5, subpart E; (3) Family income and family payment: part 5, subpart F; (4) Public housing agency plans: part 903; (5) Rent and reexamination: part 960, subpart C; (6) Mixed population developments: part 960, subpart D; (7) Occupancy by over-income families or police officers: part 960, subpart E. (8) Protection for victims of domestic violence, dating violence, sexual assault, or stalking, 24 CFR part 5, subpart L (Protection for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking). [66 FR 28799, May 24, 2001, as amended at 73 FR 72344, Nov. 28, 2008; 75 FR 66262, Oct. 27, 2010; 81 FR 80815, Nov. 16, 2016] § 960.201 Eligibility. (a) Who is eligible? Basic eligibility. (2) Low income limit. (b) Income used for eligibility and targeting. (c) Reporting. [66 FR 28799, May 24, 2001, as amended at 88 FR 9670, Feb. 14, 2023] § 960.202 Tenant selection policies. (a) Selection policies, generally. (2) These policies shall provide for and include the following: (i) Targeting admissions to extremely low income families as provided in paragraph (b) of this section. (ii) Deconcentration of poverty and income-mixing in accordance with the PHA Plan regulations (see 24 CFR part 903). (iii) Precluding admission of applicants whose habits and practices reasonably may be expected to have a detrimental effect on the residents or the project environment; (iv) Objective and reasonable policies for selection by the PHA among otherwise eligible applicants, including requirements for applications and waiting lists (see 24 CFR 1.4), and for verification and documentation of information relevant to acceptance or rejection of an applicant, including documentation and verification of citizenship and eligible immigration status under 24 CFR part 5; and (v) Policies of participant transfer between units, developments, and programs. For example, a PHA could adopt a criterion for voluntary transfer that the tenant had met all obligations under the current program, including payment of charges to the PHA. (b) Targeting admissions to extremely low income families Targeting requirement. (ii) To the extent provided in paragraph (b)(2) of this section, admission of extremely low income families to the PHA's Section 8 voucher program during the same PHA fiscal year is credited against the basic targeting requirement. (iii) A PHA must comply with both the targeting requirement found in this part and the deconcentration requirements found in part 903 of this chapter. (2) Credit for admissions to PHA voucher program. (ii) The fiscal year credit for voucher program admissions that exceed the minimum voucher program targeting requirement shall not exceed the lower of: (A) Ten percent of public housing waiting list admissions during the PHA fiscal year; (B) Ten percent of waiting list admission to the PHA's Section 8 tenant-based assistance program during the PHA fiscal year; or (C) The number of qualifying low income families who commence occupancy during the fiscal year of PHA public housing units located in census tracts with a poverty rate of 30 percent or more. For this purpose, qualifying low income family means a low income family other than an extremely low income family. (c) Priority for tenant-based and project-based voucher families displaced due to HQS non-compliance. (d) Adoption and availability of tenant selection policies. (1) Be duly adopted and implemented; (2) Be publicized by posting copies thereof in each office where applications are received and by furnishing copies to applicants or tenants upon request, free or at their expense, at the discretion of the PHA; and (3) Be consistent with the fair housing and equal opportunity provisions of § 5.105 of this title; and (4) Be submitted to the HUD field office upon request from that office. [66 FR 28799, May 24, 2001, as amended at 89 FR 38293, May 7, 2024] § 960.203 Standards for PHA tenant selection criteria. (a) The tenant selection criteria to be established and information to be considered shall be reasonably related to individual attributes and behavior of an applicant and shall not be related to those which may be imputed to a particular group or category of persons of which an applicant may be a member. The PHA may use local preferences, as provided in § 960.206. (b) Under the Public Housing Assessment System (PHAS), PHAs that have adopted policies, implemented procedures and can document that they successfully screen out and deny admission to certain applicants with unfavorable criminal histories receive points. (See 24 CFR 902.43(a)(5).) This policy takes into account the importance of screening to public housing communities and program integrity, and the demand for assisted housing by families who will adhere to lease responsibilities. (c) In selection of families for admission to its public housing program, or to occupy a public housing development or unit, the PHA is responsible for screening family behavior and suitability for tenancy. The PHA may consider all relevant information, which may include, but is not limited to: (1) An applicant's past performance in meeting financial obligations, especially rent; (2) A record of disturbance of neighbors, destruction of property, or living or housekeeping habits at prior residences which may adversely affect the health, safety or welfare of other tenants; and (3) A history of criminal activity involving crimes of physical violence to persons or property and other criminal acts which would adversely affect the health, safety or welfare of other tenants. (See § 960.204.) With respect to criminal activity described in § 960.204: (i) The PHA may require an applicant to exclude a household member in order to be admitted to the housing program where that household member has participated in or been culpable for actions described in § 960.204 that warrants denial. (ii) The PHA may, where a statute requires that the PHA prohibit admission for a prescribed period of time after some disqualifying behavior or event, choose to continue that prohibition for a longer period of time. (4) PHA tenant selection criteria are subject to 24 CFR part 5, subpart L (Protection for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking). In cases of requests for emergency transfers under VAWA, with the written consent of the victim of domestic violence, dating violence, sexual assault, or stalking, the receiving PHA may accept and use the prior covered housing provider's determination of eligibility and tenant screening and all related verification information, including form HUD 50058 (Family Report). (d) In the event of the receipt of unfavorable information with respect to an applicant, consideration shall be given to the time, nature, and extent of the applicant's conduct (including the seriousness of the offense). (1) In a manner consistent with the PHA's policies, procedures and practices referenced in paragraph (b) of this section, consideration may be given to factors which might indicate a reasonable probability of favorable future conduct. For example: (i) Evidence of rehabilitation; and (ii) Evidence of the applicant family's participation in or willingness to participate in social service or other appropriate counseling service programs and the availability of such programs; (2) Consideration of rehabilitation. (ii) If rehabilitation is not an element of the eligibility determination (see § 960.204(a)(1)), the PHA may choose not to consider whether the person has been rehabilitated. [66 FR 28799, May 24, 2001, as amended at 73 FR 72344, Nov. 28, 2008; 75 FR 66262, Oct. 27, 2010; 81 FR 80815, Nov. 16, 2016] § 960.204 Denial of admission for criminal activity or drug abuse by household members. (a) Required denial of admission Persons evicted for drug-related criminal activity. (i) The evicted household member who engaged in drug-related criminal activity has successfully completed a supervised drug rehabilitation program approved by the PHA; or (ii) The circumstances leading to the eviction no longer exist (for example, the criminal household member has died or is imprisoned). (2) Persons engaging in illegal use of a drug. (i) The PHA determines that any household member is currently engaging in illegal use of a drug (For purposes of this section, a household member is “currently engaged in” the criminal activity if the person has engaged in the behavior recently enough to justify a reasonable belief that the behavior is current); or (ii) The PHA determines that it has reasonable cause to believe that a household member's illegal use or pattern of illegal use of a drug may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents. (3) Persons convicted of methamphetamine production. (4) Persons subject to sex offender registration requirement. (b) Persons that abuse or show a pattern of abuse of alcohol. (c) Use of criminal records. (d) Cost of obtaining criminal record. § 960.205 Drug use by applicants: Obtaining information from drug treatment facility. (a) Purpose. (b) Additional terms (1) Currently engaging in illegal use of a drug. (2) Drug abuse treatment facility. (i) That holds itself out as providing, and provides, diagnosis, treatment, or referral for treatment with respect to the illegal drug use; and (ii) That is either an identified unit within a general care facility; or an entity other than a general medical care facility. (c) Authorization by household member for PHA to receive information from a drug abuse treatment facility. (i) Requests any drug abuse treatment facility to inform the PHA only whether the drug abuse treatment facility has reasonable cause to believe that the household member is currently engaging in illegal drug use; (ii) Complies with the form of written consent required by 42 CFR 2.31; and (iii) Authorizes the PHA to receive such information from the drug abuse treatment facility, and to utilize such information in determining whether to prohibit admission of the household member to the PHA's public housing program in accordance with § 960.203. (See the Public Health Service Act, 42 U.S.C. 290dd-2, and implementing regulations at 42 CFR part 2, with respect to responsibilities of the drug abuse treatment facility.) (2) The consent form submitted for a proposed household member must expire automatically after the PHA has made a final decision to either approve or deny the admission of such person. (d) PHA request for information from drug use treatment facility. (2) The PHA's request to the drug abuse treatment facility must include a copy of the consent form signed by the proposed household member. (3) A drug abuse treatment facility is not liable for damages based on any information required to be disclosed under this section if such disclosure is consistent with section 543 of the Public Health Service Act (42 U.S.C. 290dd-2). (4) The PHA is not obligated to request information from a drug treatment facility under this section, and is not liable for damages for failing to request or receive such information. (5) A drug abuse treatment facility may charge the PHA a reasonable fee for information provided under this section. The PHA may not pass along to the applicant or tenant the costs of obtaining this information. (e) Prohibition of discriminatory treatment of applicants. (i) Policy A—Request for all families. (ii) Policy B—Request for certain household members. (A) Whose criminal record indicates prior arrest or conviction for any criminal activity that may be a basis for denial of admission under § 960.205; or (B) Whose prior tenancy records indicate that the proposed household member: (1) Engaged in the destruction of property; (2) Engaged in violent activity against another person; or (3) Interfered with the right of peaceful enjoyment of the premises of other residents. (4) The policy adopted by the PHA must be included in the PHA administrative plan and the PHA plan. (f) Records management and confidentiality. (1) Is maintained confidentially in accordance with section 543 of the Public Health Service Act (12 U.S.C. 290dd-2); (2) Is not misused or improperly disseminated; and (3) Is destroyed, as applicable: (i) Not later than 5 business days after the PHA makes a final decision to admit the person as a household member under the PHA's public housing program; or (ii) If the PHA denies the admission of such person as a household member, in a timely manner after the date on which the statute of limitations for the commencement of a civil action based upon that denial of admissions has expired without the filing of a civil action or until final disposition of any such litigation. § 960.206 Waiting list: Local preferences in admission to public housing program. (a) Establishment of PHA local preferences. (2) The PHA may limit the number of applicants that qualify for any local preference. (3) PHA adoption and implementation of local preferences is subject to HUD requirements concerning income-targeting (§ 960.202(b)), deconcentration and income-mixing (§ 903.7), and selection preferences for developments designated exclusively for elderly or disabled families or for mixed population developments (§ 960.407). (4) The PHA must inform all applicants about available preferences and must give applicants an opportunity to show that they qualify for available preferences. (b) Particular local preferences Residency requirements or preferences. (ii) A residency preference is a preference for admission of persons who reside in a specified geographic area (“residency preference area”). A county or municipality may be used as a residency preference area. An area smaller than a county or municipality may not be used as a residency preference area. (iii) Any PHA residency preferences must be included in the statement of PHA policies that govern eligibility, selection and admission to the program, which is included in the PHA annual plan (or supporting documents) pursuant to part 903 of this chapter. Such policies must specify that use of a residency preference will not have the purpose or effect of delaying or otherwise denying admission to the program based on the race, color, ethnic origin, gender, religion, disability, or age of any member of an applicant family. (iv) A residency preference must not be based on how long an applicant has resided or worked in a residency preference area. (v) Applicants who are working or who have been notified that they are hired to work in a residency preference area must be treated as residents of the residency preference area. The PHA may treat graduates of, or active participants in, education and training programs in a residency preference area as residents of the residency preference area if the education or training program is designed to prepare individuals for the job market. (2) Preference for working families. (3) Preference for person with disabilities. (4) Preference for victims of domestic violence, dating violence, sexual assault, or stalking. (5) Preference for single persons who are elderly, displaced, homeless or a person with disabilities. (6) Preference for non-public housing over-income families. (c) Selection for particular unit. (d) Housing assistance limitation for single persons. (e) Selection method. (i) Date and time of application; or (ii) A drawing or other random choice technique. (2) The method for selecting applicants must leave a clear audit trail that can be used to verify that each applicant has been selected in accordance with the method specified in the PHA plan. [66 FR 28799, May 24, 2001, as amended at 81 FR 80815, Nov. 16, 2016; 88 FR 9670, Feb. 14, 2023] § 960.208 Notification to applicants. (a) The PHA must promptly notify any applicant determined to be ineligible for admission to a project of the basis for such determination, and must provide the applicant upon request, within a reasonable time after the determination is made, with an opportunity for an informal hearing on such determination. (b) When a determination has been made that an applicant is eligible and satisfies all requirements for admission, including the tenant selection criteria, the applicant must be notified of the approximate date of occupancy insofar as that date can be reasonably determined. Subpart C—Rent and Reexamination Source: 65 FR 16726, Mar. 29, 2000, unless otherwise noted. § 960.253 Choice of rent. (a) Rent options Annual choice by family. (2) Relation to minimum rent. (3) Relation to non-public housing over-income families. (b) Flat rent (1) The PHA must establish a flat rent for each public housing unit that is no less than 80 percent of the applicable Fair Market Rent (FMR) as determined under 24 CFR part 888, subpart A; or (2) HUD may permit a flat rent of no less than 80 percent of an applicable small area FMR (SAFMR) or unadjusted rent, if applicable, as determined by HUD, or any successor determination, that more accurately reflects local market conditions and is based on an applicable market area that is geographically smaller than the applicable market area used in paragraph (b)(1) of this section. If HUD has not determined an applicable SAFMR or unadjusted rent, the PHA must rely on the applicable FMR under paragraph (b)(1) or may apply for an exception flat rent under paragraph (b)(3). (3) The PHA may request, and HUD may approve, on a case-by-case basis, a flat rent that is lower than the amounts in paragraphs (b)(1) and (2) of this section, subject to the following requirements: (i) The PHA must submit a market analysis of the applicable market. (ii) The PHA must demonstrate, based on the market analysis, that the proposed flat rent is a reasonable rent in comparison to rent for other comparable unassisted units, based on the location, quality, size, unit type, and age of the public housing unit and any amenities, housing services, maintenance, and utilities to be provided by the PHA in accordance with the lease. (iii) All requests for exception flat rents under this paragraph (b)(3) must be submitted to HUD. (4) For units where utilities are tenant-paid, the PHA must adjust the flat rent downward by the amount of a utility allowance for which the family might otherwise be eligible under 24 CFR part 965, subpart E. (5) The PHA must revise, if necessary, the flat rent amount for a unit no later than 90 days after HUD issues new FMRs. (6) If a new flat rent would cause a family's rent to increase by more than 35 percent, the family's rent increase must be phased in at 35 percent annually until such time that the family chooses to pay the income-based rent or the family is paying the flat rent established pursuant to this paragraph. (c) Income-based rent. (2) The PHA rent policies may specify that the PHA will use percentage of family income or some other reasonable system to determine income-based rents. The PHA rent policies may provide for depositing a portion of tenant rent in an escrow or savings account, for imposing a ceiling on tenant rents, for adoption of permissive income deductions (see § 5.611(b) of this title), or for another reasonable system to determining the amount of income-based tenant rent. (3) The income-based tenant rent must not exceed the total tenant payment (§ 5.628 of this title) for the family minus any applicable utility allowance for tenant-paid utilities. If the utility allowance exceeds the total tenant payment, the PHA shall pay such excess amount (the utility reimbursement) either to the family or directly to the utility supplier to pay the utility bill on behalf of the family. (4) The PHA may elect to establish policies regarding the frequency of utility reimbursement payments for payments made to the family. (i) The PHA will have the option of making utility reimbursement payments not less than once per calendar-year quarter, for reimbursements totaling $45 or less per quarter. In the event a family leaves the program in advance of its next quarterly reimbursement, the PHA must reimburse the family for a prorated share of the applicable reimbursement. PHAs exercising this option must have a hardship policy in place for tenants. (ii) If the PHA elects to pay the utility supplier, the PHA must notify the family of the amount of utility reimbursement paid to the utility supplier. (d) Ceiling rent. (e) Information for families. (1) The PHA's policies on switching type of rent in circumstances of financial hardship, and (2) The dollar amounts of tenant rent for the family under each option, following the procedures in paragraph (f) of this section. (f) Choice between flat and income-based rents. (1) For a family that chooses the flat rent option, the PHA must conduct a reexamination of family income and composition at least once every three years, except for families a PHA determines exceed the over-income limit described in § 960.507(b). Once a PHA determines that a family has an income exceeding the over-income limit, the PHA must follow the income examination and notification requirements under § 960.507(c). (2) At initial occupancy, or in any year in which a participating family is paying the income-based rent, the PHA must: (i) Conduct a full examination of family income and composition, following the provisions in § 960.257; (ii) Inform the family of the flat rental amount and the income-based rental amount determined by the examination of family income and composition; (iii) Inform the family of the PHA's policies on switching rent types in circumstances of financial hardship; and (iv) Apply the family's rent decision at the next lease renewal. (3) In any year in which a family chooses the flat rent option but the PHA chooses not to conduct a full examination of family income and composition for the annual rent option under the authority of paragraph (f)(1) of this section, the PHA must: (i) Use income information from the examination of family income and composition from the first annual rent option; (ii) Inform the family of the updated flat rental amount and the rental amount determined by the most recent examination of family income and composition; (iii) Inform the family of the PHA's policies on switching rent types in circumstances of financial hardship; and (iv) Apply the family's rent decision at the next lease renewal. (g) Switch from flat rent to income-based rent because of hardship. (2) If the PHA determines that the family is unable to pay the flat rent because of financial hardship, the PHA must immediately allow the requested switch to income-based rent. The PHA shall make the determination within a reasonable time after the family request. (3) The PHA policies for determining when payment of flat rent is a financial hardship must provide that financial hardship include the following situations: (i) The family has experienced a decrease in income because of changed circumstances, including loss or reduction of employment, death in the family, or reduction in or loss of earnings or other assistance; (ii) The family has experienced an increase in expenses, because of changed circumstances, for medical costs, child care, transportation, education, or similar items; and (iii) Such other situations determined by the PHA to be appropriate. [65 FR 16726, Mar. 29, 2000, as amended at 80 FR 53712, Sept. 8, 2015; 81 FR 12372, Mar. 8, 2016; 88 FR 9670, Feb. 14, 2023] § 960.255 Self-sufficiency incentives—Disallowance of increase in annual income. (a) Definitions. Baseline income. Disallowance. Previously unemployed Qualified family. (i) Whose annual income increases as a result of employment of a family member who was unemployed for one or more years previous to employment; (ii) Whose annual income increases as a result of increased earnings by a family member during participation in any economic self-sufficiency or other job training program; or (iii) Whose annual income increases, as a result of new employment or increased earnings of a family member, during or within six months after receiving assistance, benefits or services under any state program for temporary assistance for needy families funded under Part A of Title IV of the Social Security Act, as determined by the PHA in consultation with the local agencies administering temporary assistance for needy families (TANF) and Welfare-to-Work (WTW) programs. The TANF program is not limited to monthly income maintenance, but also includes such benefits and services as one-time payments, wage subsidies and transportation assistance—provided that the total amount over a six-month period is at least $500. (b) Disallowance of earned income Initial 12-month exclusion. (2) Phase-in of rent increase. (3) Maximum 2-year disallowance. (4) Effect of changes on currently participating families. Families eligible for and participating in the disallowance of earned income under this section prior to May 9, 2016 will continue to be governed by this section in effect as it existed immediately prior to that date. (c) Inapplicability to admission. (d) Individual Savings Accounts. (1) The PHA must advise the family that the savings account option is available; (2) At the option of the family, the PHA must deposit in the savings account the total amount that would have been included in tenant rent payable to the PHA as a result of increased income that is disallowed in accordance with paragraph (b) of this section; (3) Amounts deposited in a savings account may be withdrawn only for the purpose of: (i) Purchasing a home; (ii) Paying education costs of family members; (iii) Moving out of public or assisted housing; or (iv) Paying any other expense authorized by the PHA for the purpose of promoting the economic self-sufficiency of residents of public housing; (4) The PHA must maintain the account in an interest bearing investment and must credit the family with the net interest income, and the PHA may not charge a fee for maintaining the account; (5) At least annually the PHA must provide the family with a report on the status of the account; and (6) If the family moves out of public housing, the PHA shall pay the tenant any balance in the account, minus any amounts owed to the PHA. (e) Limitation. (1) Receiving the disallowance of earned income under this section on December 31, 2023 or (2) Eligible to receive the Jobs Plus program rent incentive pursuant to the Jobs Plus FY2023 notice of funding opportunity (NOFO) or earlier appropriations and distributed through prior Jobs Plus NOFOs. (f) Sunset. [65 FR 16726, Mar. 29, 2000, as amended at 81 FR 12373, Mar. 8, 2016; 88 FR 9670, Feb. 14, 2023] § 960.257 Family income and composition: Annual and interim reexaminations. (a) When PHA is required to conduct reexamination. (2) For families who choose flat rents, the PHA must conduct a reexamination of family composition at least annually, and must conduct a reexamination of family income at least once every three years in accordance with the procedures in § 960.253(f). (3) For all families who include nonexempt individuals, as defined in § 960.601, the PHA must determine compliance once each twelve months with community service and self-sufficiency requirements in subpart F of this part. (4) The PHA may use the results of these reexaminations to require the family to move to an appropriate size unit. (5) For all non-public housing over-income families, the PHA may not conduct an annual reexamination of family income. (b) Interim reexaminations. (2) The PHA may decline to conduct an interim reexamination of family income if the PHA estimates the family's adjusted income will decrease by an amount that is less than ten percent of the family's annual adjusted income (or a lower amount established by HUD by notice), or a lower threshold established by the PHA. (3) The PHA must conduct an interim reexamination of family income when the PHA becomes aware that the family's adjusted income (as defined in § 5.611 of this title) has changed by an amount that the PHA estimates will result in an increase of ten percent or more in annual adjusted income or such other amount established by HUD through notice, except: (i) The PHA may not consider any increase in the earned income of the family when estimating or calculating whether the family's adjusted income has increased, except that, based on the PHA's established written policy, the PHA may consider increases in earned income if the PHA has processed an interim reexamination for a decrease in the family's income under paragraph (b)(1) of this section within the same annual or biennial reexamination cycle; and (ii) The PHA may choose not to conduct an interim reexamination in the last three months of a family's certification period, in accordance with the PHA's established written policy. (4) For over-income families in the period of up to six months before their tenancy termination pursuant to § 960.507(d)(2), the PHA must conduct an interim reexamination of family income as otherwise required under this paragraph. However, the resulting income determination will not make the family eligible to remain in the public housing program beyond the period before termination as defined by PHA policy. (5) The PHA must adopt policies consistent with this section prescribing when and under what conditions the family must report a change in family income or composition. (6) Effective date of rent changes. (ii) If the family has failed to report a change in family income or composition in a timely manner according to the PHA's policies, PHAs must implement any resulting rent increases retroactively to the first of the month following the date of the change leading to the interim reexamination of family income. Any resulting rent decrease must be implemented no later than the first rent period following completion of the reexamination. However, a PHA may apply rent decreases retroactively at the discretion of the PHA, in accordance with the conditions established by the PHA in written policy and subject to paragraph (b)(6)(iii) of this section. (iii) A retroactive rent decrease may not be applied by the PHA prior to the later of the first of the month following: (A) The date of the change leading to the interim reexamination of family income; or (B) The effective date of the family's most recent previous interim or annual reexamination (or initial examination if that was the family's last examination). (c) Streamlined income determination General. (2) Definition of “fixed income”. (i) Social Security, Supplemental Security Income, Supplemental Disability Insurance. (ii) Federal, state, local, or private pension plans. (iii) Annuities or other retirement benefit programs, insurance policies, disability or death benefits, or other similar types of periodic receipts. (iv) Any other source of income subject to adjustment by a verifiable COLA or current rate of interest. (3) Method of streamlined income determination. (i) When 90 percent or more of a family's unadjusted income consists of fixed income, PHAs using streamlined income determinations must apply a COLA or COLAs to the family's sources of fixed income, provided that the family certifies both that 90 percent or more of their unadjusted income is fixed income and that their sources of fixed income have not changed from the previous year. For non-fixed income, the PHA is not required to make adjustments pursuant to paragraph (a) of this section. (ii) When less than 90 percent of a family's unadjusted income consists of fixed income, PHAs using streamlined income determinations must apply a COLA to each of the family's sources of fixed income individually. The PHA must determine all other income pursuant to paragraph (a) of this section. (4) COLA rate applied by PHAs. (5) Triennial verification. (d) PHA reexamination policies. (e) Reviews of family income under this section are subject to the provisions in section 904 of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988, as amended (42 U.S.C. 3544). (f) De minimis errors. (i) The PHA must take any corrective action necessary to credit or repay a family if the family has been overcharged for their rent as a result of an error (including a de minimis error) in the income determination. Families will not be required to repay the PHA in instances where the PHA has miscalculated income resulting in a family being undercharged for rent or family share. (ii) HUD may revise the amount of de minimis error in this paragraph (f) through a rulemaking published in the Federal Register [65 FR 16726, Mar. 29, 2000, as amended at 81 FR 12373, Mar. 8, 2016; 82 FR 58340, Dec. 12, 2017; 85 FR 27139, May 7, 2020; 88 FR 9670, Feb. 14, 2023; 88 FR 9670, Feb. 14, 2023] § 960.259 Family information and verification. (a) Family obligation to supply information. (2) The family must supply any information requested by the PHA or HUD for use in a regularly scheduled reexamination or an interim reexamination of family income and composition in accordance with HUD requirements. (3) For requirements concerning the following, see part 5, subpart B of this title: (i) Family verification and disclosure of social security numbers; (ii) Family execution and submission of consent forms for obtaining wage and claim information from State Wage Information Collection Agencies (SWICAs). (4) Any information supplied by the family must be true and complete. (b) Family release and consent. (2) The use or disclosure of information obtained from a family or from another source pursuant to this release and consent shall be limited to purposes directly connected with administration of the program. (c) PHA responsibility for reexamination and verification. (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income or income-based rent. (2) For a family with net family assets (as the term is defined in § 5.603 of this title) equal to or less than $50,000, which amount will be adjusted annually by HUD in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers, a PHA may accept, for purposes of recertification of income, a family's declaration under § 5.618(b) of this title, except that the PHA must obtain third-party verification of all family assets every 3 years. [65 FR 16726, Mar. 29, 2000, as amended at 81 FR 12373, Mar. 8, 2016; 88 FR 9671, Feb. 14, 2023] Subpart D—Preference for Elderly Families and Disabled Families in Mixed Population Projects Source: 59 FR 17667, Apr. 13, 1994, unless otherwise noted. § 960.401 Purpose. This subpart establishes a preference for elderly families and disabled families for admission to mixed population public housing projects, as defined in § 960.405. § 960.403 Applicability. (a) This subpart applies to all dwelling units in mixed population projects (as defined in § 960.405), or portions of mixed population projects, assisted under the U.S. Housing Act of 1937. These projects formerly were known as elderly projects. (b) This subpart does not apply to section 23 and section 10(c) leased housing projects or the section 23 Housing Assistance Payments Program where the owners enter into leases directly with the tenants, or to the Section 8 Housing Assistance Payments Program, the Low-Rent Housing Homeownership Opportunities Program (Turnkey III), the Mutual Help Homeownership Opportunities Program, or to Indian Housing Authorities. (For applicability to Indian Housing Authorities, see part 905 of this chapter.) Additionally, this subpart is not applicable to projects designated for elderly families or designated for disabled families in accordance with 24 CFR part 945. § 960.407 Selection preference for mixed population developments. (a) The PHA must give preference to elderly families and disabled families equally in determining priority for admission to mixed population developments. The PHA may not establish a limit on the number of elderly families or disabled families who may be accepted for occupancy in a mixed population development. (b) In selecting elderly families and disabled families to occupy units in mixed population developments, the PHA must first offer units that have special accessibility features for persons with disabilities to families who include persons with disabilities who require the accessibility features of such units (see §§ 8.27 and 100.202 of this title). [65 FR 16729, Mar. 29, 2000] Subpart E—Occupancy by Over-Income Families or Police Officers Source: 65 FR 16729, Mar. 29, 2000, unless otherwise noted. § 960.503 Occupancy by over-income families. A PHA that owns or operates fewer than two hundred fifty (250) public housing units, may lease a unit in a public housing development to an over-income family (a family whose annual income exceeds the limit for a low income family at the time of initial occupancy), in accordance with its PHA annual plan (or supporting documents), if all the following conditions are satisfied: (a) There are no eligible low income families on the PHA waiting list or applying for public housing assistance when the unit is leased to an over-income family; (b) The PHA has publicized availability of the unit for rental to eligible low income families, including publishing public notice of such availability in a newspaper of general circulation in the jurisdiction at least thirty days before offering the unit to an over-income family; (c) The over-income family rents the unit on a month-to-month basis for a rent that is not less than the PHA's cost to operate the unit; (d) The lease to the over-income family provides that the family agrees to vacate the unit when needed for rental to an eligible family; and (e) The PHA gives the over-income family at least thirty days notice to vacate the unit when the unit is needed for rental to an eligible family. § 960.505 Occupancy by police officers to provide security for public housing residents. (a) Police officer. (b) Occupancy in public housing. § 960.507 Families exceeding the income limit. (a) In general. (1) This provision applies to all families in the public housing program, including FSS families and all families receiving EID. (i) Mixed families (as defined in § 5.504 of this title) who are non-public housing over-income families pay the alternative non-public housing rent (as defined in § 960.102), as applicable. (ii) All non-public housing over-income families are precluded from participating in a public housing resident council. (iii) Furthermore, non-public housing over-income families cannot participate in programs that are only for public housing or low-income families. (iv) PHAs cannot provide any Federal assistance, including a utility allowance, to non-public housing over-income families. (2) PHAs must implement the requirements of this section by amending all applicable admission and continued occupancy policies according to the provisions in 24 CFR part 903. All PHAs must have effective over-income policies, consistent with the requirements of this section, no later than June 14, 2023. (b) Determination of over-income limit. (c) Notifying over-income families. (2) The PHA must conduct an income examination 12 months after the initial over-income determination described in paragraph (c)(1) of this section, unless the PHA determined the family's income fell below the over-income limit since the initial over-income determination. If the PHA determines the family has exceeded the over-income limit for 12 consecutive months, the PHA must provide written notification of this 12-month over-income determination no later than 30 days after the income examination that led to the 12-month over-income determination. The notice must state that the family has exceeded the over-income limit for 12 consecutive months and continuing to exceed the over-income limit for a total of 24 consecutive months will result in the PHA following its continued occupancy policy for over-income families in accordance with paragraph (d) of this section. Additionally, if applicable under PHA policy, the notice must include an estimate (based on current data) of the alternative non-public housing rent for the family's unit. Pursuant to 24 CFR part 966, subpart B, the PHA must afford the family an opportunity for a hearing if the family disputes within a reasonable time the PHA's determination that the family has exceeded the over-income limit. (3) The PHA must conduct an income examination 24 months after the initial over-income determination described in paragraph (c)(1) of this section, unless the PHA determined the family's income fell below the over-income limit since the second over-income determination. If the PHA determines the family has exceeded the over-income limit for 24 consecutive months, then the PHA must provide written notification of this 24-month over-income determination no later than 30 days after the income examination that led to the 24-month over-income determination. The notice must state: (i) That the family has exceeded the over-income limit for 24 consecutive months. (ii) That the PHA must either terminate the family's tenancy or charge the family the alternative non-public housing rent, in accordance with it continued occupancy policy for over-income families in accordance with paragraph (d) of this section. (A) If the PHA determines that under its policy the family's tenancy must be terminated in accordance with paragraph (d)(2) of this section, then the notice must inform the family of this determination and state the period of time before tenancy termination. (B) If the PHA determines that under its policy the family must be charged the alternative non-public housing rent in accordance with paragraph (d)(1) of this section, then the notice must inform the family of this determination and state that the family be charged the alternative non-public housing rent in accordance with paragraph (d)(1) of this section. The PHA must also present the family with a new lease, in accordance with the requirements at § 960.509, and inform the family that the lease must be executed no later than 60 days of the date of the notice or at the next lease renewal, whichever is sooner. (iii) Pursuant to 24 CFR part 966, subpart B, the PHA must afford the family an opportunity for a hearing if the family disputes within a reasonable time the PHA's determination that the family has exceeded the over-income limit. (4) If, at any time during the consecutive 24-month period following the initial over-income determination described in paragraph (c)(1) of this section, a PHA determines that the family's income is below the over-income limit, the family is entitled to a new 24 consecutive month period of being over-income and new notices under paragraphs (c)(1), (c)(2), and (c)(3) of this section if the PHA later determines that the family income exceeds the over-income limit. (d) End of the 24 consecutive month grace period. (1) Require the family to execute a new lease consistent with § 960.509 and charge the family the alternative non-public housing rent, as defined in § 960.102, no later than 60-days after the notice is provided pursuant to paragraph (c)(3) of this section or at the next lease renewal, whichever is sooner; or (2) Terminate the tenancy of the family no more than 6 months after the notification under paragraph (c)(3) of this section as determined by the PHA's continued occupancy policy. PHAs must continue to charge these families the family's choice of income-based, flat rent, or prorated rent for mixed families during the period before termination. The PHA must give appropriate notice of lease tenancy termination (notice to vacate) in accordance with State and local laws. (e) Status of families. (f) Reporting. [88 FR 9671, Feb. 14, 2023] § 960.509 Lease requirements for non-public housing over-income families. (a) In general. (b) Lease provisions. (1) Parties, dwelling unit, and term. (i) The name of the PHA and names of the tenants. (ii) The unit rented (address, apartment number, and any other information needed to identify the dwelling unit). (iii) The term of the lease (lease term and renewal in accordance with paragraph (b)(2) of this section). (iv) A statement of the utilities, services, and equipment to be supplied by the PHA without additional cost, and the utilities and appliances to be paid for by the tenant. (v) The composition of the household as approved by the PHA (family members, foster children and adults, and any PHA-approved live-in aides). The family must promptly inform the PHA of the birth, adoption, or court-awarded custody of a child. The family must request PHA approval to add any other family member as an occupant of the unit. (2) Lease term and renewal. (ii) At any time, the PHA may terminate the tenancy in accordance with paragraph (b)(11) of this section. (3) Payments due under the lease. Tenant rent. (B) The lease must specify the initial amount of the tenant rent at the beginning of the initial lease term. The PHA must comply with State or local law in giving the tenant written notice stating any change in the amount of tenant rent. (ii) PHA charges. e.g., (iii) Late payment penalties. (iv) When charges are due. (v) Security deposits. (4) Tenant's right to use and occupancy. guest (5) The PHA's obligations. (i) To maintain the dwelling unit and the project in decent, safe, and sanitary condition. (ii) To comply with requirements of applicable State and local building codes, housing codes, and HUD regulations materially affecting health and safety. (iii) To make necessary repairs to the dwelling unit. (iv) To keep project buildings, facilities, and common areas, not otherwise assigned to the tenant for maintenance and upkeep, in a clean and safe condition. (v) To maintain in good and safe working order and condition electrical, plumbing, sanitary, heating, ventilating, and other facilities, and appliances, including elevators, supplied, or required to be supplied by the PHA. (vi) To provide and maintain appropriate receptacles and facilities (except containers for the exclusive use of an individual tenant family) for the deposit of ashes, garbage, rubbish, and other waste removed from the dwelling unit by the tenant in accordance with paragraph (b)(6)(vii) of this section. (vii) To supply running water, including an adequate source of potable water, and reasonable amounts of hot water and reasonable amounts of heat at appropriate times of the year (according to local custom and usage), except where the building that includes the dwelling unit is not required by law to be equipped for that purpose, or where heat or hot water is generated by an installation within the exclusive control of the tenant and supplied by a direct utility connection. (viii) To notify the tenant of the specific grounds for any proposed adverse action by the PHA as required by State and local law. (ix) To comply with Federal, State, and local nondiscrimination and fair housing requirements, including Federal accessibility requirements and providing reasonable accommodations for persons with disabilities. (x) To establish necessary and reasonable policies for the benefit and well-being of the housing project and the tenants, post the policies in the project office, and incorporate the regulations by reference in the lease. (6) Tenant's obligations. (i) Not assign the lease or sublease the dwelling unit. (ii) Not provide accommodations for boarders or lodgers. (iii) Use the dwelling unit solely as a private dwelling for the tenant and the tenant's household as identified in the lease, and not use or permit its use for any other purpose. (iv) Abide by necessary and reasonable policies established by the PHA for the benefit and well-being of the housing project and the tenants, which must be posted in the project office and incorporated by reference in the lease. (v) Comply with all applicable State and local building and housing codes materially affecting health and safety. (vi) Keep the dwelling unit and such other areas as may be assigned to the tenant for the tenant's exclusive use in a clean and safe condition. (vii) Dispose of all waste from the dwelling unit in a sanitary and safe manner. (viii) Use in a reasonable manner all electrical, plumbing, sanitary, heating, ventilating, air-conditioning and other facilities, including elevators. (ix) Refrain from, and cause members of the household and guests to refrain from destroying, defacing, damaging, or removing any part of the dwelling unit or housing project. (x) Pay reasonable charges (other than for wear and tear) for the repair of damages to the dwelling unit, or to the housing project (including damages to buildings, facilities, or common areas) caused by the tenant, a member of the household or a guest. (xi) Act, and cause household members and guests to act, in a manner which will not disturb other residents' peaceful enjoyment of their accommodations and will be conducive to maintaining the project in a decent, safe, and sanitary condition. (xii) Assure that no tenant, member of the tenant's household, guest, or any other person under the tenant's control engages in: (A) Criminal activity. 1 ( 2 (B) Civil activity. (xiii) To assure that no member of the household engages in an abuse or pattern of abuse of alcohol that affects the health, safety, or right to peaceful enjoyment of the premises by other residents. (7) Tenant maintenance. (8) Defects hazardous to life, health, or safety. (i) The tenant must immediately notify project management of the damage. (ii) The PHA must repair the unit within a reasonable time. The PHA must charge the tenant the reasonable cost of the repairs if the damage was caused by the tenant, the tenant's household, or the tenant's guests. (iii) The PHA must offer standard alternative accommodations, if available, where necessary repairs cannot be made within a reasonable time, subject to paragraph (b)(5)(ix) of this section; and (iv) The lease must allow for abatement of rent in proportion to the seriousness of the damage and loss in value as a dwelling if repairs are not made in accordance with paragraph (b)(8)(ii) of this section or alternative accommodations not provided in accordance with paragraph (b)(8)(iii) of this section, except that no abatement of rent may occur if the tenant rejects the alternative accommodation or if the damage was caused by the tenant, tenant's household or guests. (9) Entry of dwelling unit during tenancy. (i) The PHA is, upon reasonable advance notification to the tenant, permitted to enter the dwelling unit during reasonable hours for the purpose of performing routine inspections and maintenance, for making improvement or repairs, or to show the dwelling unit for re-leasing. A written statement specifying the purpose of the PHA entry delivered to the dwelling unit at least two days before such entry is reasonable advance notification. (ii) The PHA may enter the dwelling unit at any time without advance notification when there is reasonable cause to believe that an emergency exists; and (iii) If the tenant and all adult members of the household are absent from the dwelling unit at the time of entry, the PHA must leave in the dwelling unit a written statement specifying the date, time, and purpose of entry prior to leaving the dwelling unit. (10) Notice procedures. (i) Except as provided in paragraph (b)(9) of this section, notice to a tenant must be provided in a form to allow meaningful access for persons who are limited English proficient and, in a form, to ensure effective communication with individuals with disabilities; and (ii) Notice to the PHA can be in writing, hand delivered, or sent by prepaid first-class mail to PHA address provided in the lease, orally, or submitted electronically through a communications system established by the PHA for that purpose. (11) Termination of tenancy and eviction. Procedures. (ii) Grounds for termination of tenancy. (A) Criminal activity or alcohol abuse as provided in paragraph (b)(11)(iv) of this section. (B) Failure to accept the PHA's offer of a lease revision to an existing lease: with written notice of the offer of the revision at least 60 calendar days before the lease revision is scheduled to take effect; and with the offer specifying a reasonable time limit within that period for acceptance by the family. (iii) Lease termination notice. (iv) PHA termination of tenancy for criminal activity or alcohol abuse. Evicting drug criminals. 1 Methamphetamine conviction. ( 2 Drug crime on or off the premises. (B) Evicting other criminals. 1 Threat to other residents. ( 2 Fugitive felon or parole violator. (C) Eviction for criminal activity. 1 Evidence. ( 2 Notice to Post Office. (D) Use of criminal record. (E) Cost of obtaining criminal record. (F) Evicting alcohol abusers. ( 1 ( 2 (G) PHA action, generally. 1 Consideration of circumstances. ( 2 Exclusion of culpable household member. ( 3 Consideration of rehabilitation. ( 4 Nondiscrimination limitation. (12) No automatic lease renewal. (13) Grievance procedures. (14) Provision for modifications. (15) Signature clause. [88 FR 9671, Feb. 14, 2023; 88 FR 12560, Feb. 28, 2023] Subpart F—When Resident Must Perform Community Service Activities or Self-Sufficiency Work Activities Source: 65 FR 16729, Mar. 29, 2000, unless otherwise noted. § 960.600 Implementation. PHAs and residents must comply with the requirements of this subpart beginning with PHA fiscal years that commence on or after October 1, 2000. Unless otherwise provided by § 903.11 of this chapter, Annual Plans submitted for those fiscal years are required to contain information regarding the PHA's compliance with the community service requirement, as described in § 903.7 of this chapter. Non-public housing over-income families are not required to comply with the requirements of this subpart. [88 FR 9675, Feb. 14, 2023] § 960.601 Definitions. (a) Definitions found elsewhere General definitions. public housing, public housing agency (2) Definitions concerning income and rent. economic self-sufficiency program, work activities. (b) Other definitions. Community service. Exempt individual. (1) Is 62 years or older; (2)(i) Is a blind or disabled individual, as defined under Section 216(i)(1) or Section 1614 of the Social Security Act (42 U.S.C. 416(i)(1); 1382c), and who certifies that because of this disability she or he is unable to comply with the service provisions of this subpart, or (ii) Is a primary caretaker of such individual; (3) Is engaged in work activities; (4) Meets the requirements for being exempted from having to engage in a work activity under the State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq. (5) Is a member of a family receiving assistance, benefits or services under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq. (6) is a member of a non-public housing over-income family. Service requirement. [65 FR 16729, Mar. 29, 2000, as amended at 88 FR 9675, Feb. 14, 2023] § 960.603 General requirements. (a) Service requirement. (1) Contribute 8 hours per month of community service (not including political activities); or (2) Participate in an economic self-sufficiency program for 8 hours per month; or (3) Perform 8 hours per month of combined activities as described in paragraphs (a)(1) and (a)(2) of this section. (b) Family violation of service requirement. § 960.605 How PHA administers service requirements. (a) PHA policy. (b) Administration of qualifying community service or self-sufficiency activities for residents. (c) PHA responsibilities. (2) The PHA must give the family a written description of the service requirement, and of the process for claiming status as an exempt person and for PHA verification of such status. The PHA must also notify the family of its determination identifying the family members who are subject to the service requirement, and the family members who are exempt persons. The PHA must also notify the family that it will be validating a sample of self-certifications of completion of the service requirement accepted by the PHA under § 960.607(a)(1)(ii). (3) The PHA must review family compliance with service requirements and must verify such compliance annually at least 30 days before the end of the 12-month lease term. If qualifying activities are administered by an organization other than the PHA, the PHA may obtain verification of family compliance from such third parties or may accept a signed certification from the family member that he or she has performed such qualifying activities. (4) The PHA must retain reasonable documentation of service requirement performance or exemption in a participant family's files. (5) The PHA must comply with non-discrimination and equal opportunity requirements listed at § 5.105(a) of this title and affirmatively further fair housing in all their activities in accordance with the AFFH Certification as described in § 903.7(o) of this chapter. [65 FR 16729, Mar. 29, 2000, as amended at 81 FR 12373, Mar. 8, 2016] § 960.607 Assuring resident compliance. (a) Acceptable documentation demonstrating compliance. (i) A signed certification to the PHA by such other organization that the family member has performed such qualifying activities; or (ii) A signed self-certification to the PHA by the family member that he or she has performed such qualifying activities. (2) The signed self-certification must include the following: (i) A statement that the tenant contributed at least 8 hours per month of community service not including political activities within the community in which the adult resides; or participated in an economic self-sufficiency program (as that term is defined in 24 CFR 5.603(b)) for at least 8 hours per month; (ii) The name, address, and a contact person at the community service provider; or the name, address, and contact person for the economic self-sufficiency program; (iii) The date(s) during which the tenant completed the community service activity, or participated in the economic self-sufficiency program; (iv) A description of the activity completed; and (v) A certification that the tenant's statement is true. (3) If a PHA accepts self-certifications under paragraph (a)(1)(ii) of this section, the PHA must validate a sample of such self-certifications using third-party certification described in paragraph (a)(1)(i) of this section. (b) PHA notice of noncompliance. (2) The PHA notice to the tenant must: (i) Briefly describe the noncompliance; (ii) State that the PHA will not renew the lease at the end of the twelve month lease term unless: (A) The tenant, and any other noncompliant resident, enter into a written agreement with the PHA, in the form and manner required by the PHA, to cure such noncompliance, and in fact cure such noncompliance in accordance with such agreement; or (B) The family provides written assurance satisfactory to the PHA that the tenant or other noncompliant resident no longer resides in the unit. (iii) State that the tenant may request a grievance hearing on the PHA determination, in accordance with part 966, subpart B of this chapter, and that the tenant may exercise any available judicial remedy to seek timely redress for the PHA's nonrenewal of the lease because of such determination. (c) Tenant agreement to comply with service requirement. (1) The tenant, and any other noncompliant resident, enter into a written agreement with the PHA, in the form and manner required by the PHA, to cure such noncompliance by completing the additional hours of community service or economic self-sufficiency activity needed to make up the total number of hours required over the twelve-month term of the new lease, and (2) All other members of the family who are subject to the service requirement are currently complying with the service requirement or are no longer residing in the unit. [65 FR 16729, Mar. 29, 2000, as amended at 81 FR 12374, Mar. 8, 2016] § 960.609 Prohibition against replacement of PHA employees. In implementing the service requirement under this subpart, the PHA may not substitute community service or self-sufficiency activities performed by residents for work ordinarily performed by PHA employees, or replace a job at any location where residents perform activities to satisfy the service requirement. Subpart G—Pet Ownership in Public Housing Source: 65 FR 42522, July 10, 2000, unless otherwise noted. § 960.701 Purpose. The purpose of this subpart is, in accordance with section 31 of the United States Housing Act of 1937 (42 U.S.C. 1437z-3), to permit pet ownership by residents of public housing, subject to compliance with reasonable requirements established by the public housing agency (PHA) for pet ownership. § 960.703 Applicability. This subpart applies to public housing as that term is defined in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)), except that such term does not include public housing developments for the elderly or persons with disabilities. Regulations that apply to pet ownership in such developments are located in part 5, subpart C, of this title. § 960.705 Animals that assist, support, or provide service to persons with disabilities. (a) This subpart G does not apply to animals that assist, support or provide service to persons with disabilities. PHAs may not apply or enforce any policies established under this subpart against animals that are necessary as a reasonable accommodation to assist, support or provide service to persons with disabilities. This exclusion applies to such animals that reside in public housing, as that term is used in § 960.703, and such animals that visit these developments. (b) Nothing in this subpart G: (1) Limits or impairs the rights of persons with disabilities; (2) Authorizes PHAs to limit or impair the rights of persons with disabilities; or (3) Affects any authority that PHAs may have to regulate service animals that assist, support or provide service to persons with disabilities, under Federal, State, or local law. § 960.707 Pet ownership. (a) Ownership Conditions. (1) Responsibly; (2) In accordance with applicable State and local public health, animal control, and animal anti-cruelty laws and regulations; and (3) In accordance with the policies established in the PHA Annual Plan for the agency as provided in part 903 of this chapter. (b) Reasonable requirements. (1) Requiring payment of a non-refundable nominal fee to cover the reasonable operating costs to the development relating to the presence of pets, a refundable pet deposit to cover additional costs attributable to the pet and not otherwise covered, or both; (2) Limitations on the number of animals in a unit, based on unit size; (3) Prohibitions on types of animals that the PHA classifies as dangerous, provided that such classifications are consistent with applicable State and local law, and prohibitions on individual animals, based on certain factors, including the size and weight of animals; (4) Restrictions or prohibitions based on size and type of building or project, or other relevant conditions; (5) Registration of the pet with the PHA; and (6) Requiring pet owners to have their pets spayed or neutered. (c) Restriction. (d) Pet deposit. (e) PHA Plan.