24 CFR Part 982 — Section 8 Tenant-Based Assistance: Housing Choice Voucher Program

PART 982—SECTION 8 TENANT-BASED ASSISTANCE: HOUSING CHOICE VOUCHER PROGRAM Authority: 42 U.S.C. 1437f and 3535(d). Source: 59 FR 36682, July 18, 1994, unless otherwise noted. Editorial Note: Nomenclature changes to part 982 appear at 64 FR 26640, May 14, 1999, and at 89 FR 38293, May 7, 2024. Subpart A—General Information Source: 60 FR 34695, July 3, 1995, unless otherwise noted. § 982.1 Programs: purpose and structure. (a) General description. (2) Families select and rent units that meet program housing quality standards. If the PHA approves a family's unit and tenancy, the PHA contracts with the owner to make rent subsidy payments on behalf of the family. A PHA may not approve a tenancy unless the rent is reasonable. (3) Subsidy in the HCV program is based on a local “payment standard” that reflects the cost to lease a unit in the local housing market. If the rent is less than the payment standard, the family generally pays 30 percent of adjusted monthly income for rent. If the rent is more than the payment standard, the family pays a larger share of the rent. (b) Tenant-based and project-based assistance. (2) To receive tenant-based assistance, the family selects a suitable unit. After approving the tenancy, the PHA enters into a contract to make rental subsidy payments to the owner to subsidize occupancy by the family. The PHA contract with the owner only covers a single unit and a specific assisted family. If the family moves out of the leased unit, the contract with the owner terminates. The family may move to another unit with continued assistance so long as the family is complying with program requirements. [60 FR 34695, July 3, 1995, as amended at 64 FR 26640, May 14, 1999; 80 FR 8245, Feb. 17, 2015] § 982.2 Applicability. Part 982 contains the program requirements for the tenant-based housing assistance program under Section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f). The tenant-based program is the HCV program. [80 FR 8245, Feb. 17, 2015] § 982.3 HUD. The HUD field offices have been delegated responsibility for day-to-day administration of the program by HUD. In exercising these functions, the field offices are subject to HUD regulations and other HUD requirements issued by HUD headquarters. Some functions are specifically reserved to HUD headquarters. § 982.4 Definitions. (a) Definitions found elsewhere. (2) The following terms are defined in 24 CFR part 5, subpart D: Disabled family, Elderly family, Near-elderly family, and Person with disabilities. (3) The following terms are defined in 24 CFR part 5, subpart F: Adjusted income, Annual income, Extremely low income family, Total tenant payment, Utility allowance, and Welfare assistance. (b) In addition to the terms listed in paragraph (a) of this section, the following definitions apply: Abatement. Absorption. Administrative fee. Administrative fee reserve Administrative Plan. Admission. Applicant Authorized voucher units. Budget authority. Building. Common space. Congregate housing. Continuously assisted. Cooperative. Cooperative member. Domicile. Downpayment assistance grant. Fair market rent (FMR). Family. Family rent to owner. Family self-sufficiency program Family share. Family unit size. First-time homeowner. Foster adult. Foster child. e.g., Funding increment. Gross rent. Group home. HAP contract. Home. Homeowner. Homeownership assistance. Homeownership expenses. Homeownership option. Housing assistance payment. (1) A payment to the owner for rent to the owner under the family's lease; and (2) An additional payment to the family if the total assistance payment exceeds the rent to owner. Housing quality standards (HQS). Independent entity. (ii) A HUD-approved entity that is autonomous and recognized under State law as a separate legal entity from the PHA. The entity must not be connected financially (except regarding compensation for services performed for PHA-owned units) or in any other manner that could result in the PHA improperly influencing the entity. Initial PHA. (1) a PHA that originally selected a family that later decides to move out of the jurisdiction of the selecting PHA; and (2) a PHA that absorbed a family that later decides to move out of the jurisdiction of the absorbing PHA. Initial payment standard. Initial rent to owner. Interest in the home. (1) In the case of assistance for a homeowner, “interest in the home” includes title to the home, any lease or other right to occupy the home, or any other present interest in the home. (2) In the case of assistance for a cooperative member, “interest in the home” includes ownership of membership shares in the cooperative, any lease or other right to occupy the home, or any other present interest in the home. Jurisdiction. Lease. (2) In cooperative housing, a written agreement between a cooperative and a member of the cooperative. The agreement establishes the conditions for occupancy of the member's cooperative dwelling unit by the member's family with housing assistance payments to the cooperative under a HAP contract between the cooperative and the PHA. For purposes of this part 982, the cooperative is the Section 8 “owner” of the unit, and the cooperative member is the Section 8 “tenant.” Manufactured home. Manufactured home space. Membership shares. Merger date. Notice of Funding Availability Federal Register Owner. Participant Payment standard. PHA plan. PHA-owned unit. (A) Owned by the PHA (including having a controlling interest in the entity that owns the project); (B) Owned by an entity wholly controlled by the PHA; or (C) Owned by a limited liability company or limited partnership in which the PHA (or an entity wholly controlled by the PHA) holds a controlling interest in the managing member or general partner. (ii) A controlling interest is: (A) Holding more than 50 percent of the stock of any corporation; (B) Having the power to appoint more than 50 percent of the members of the board of directors of a non-stock corporation (such as a nonprofit corporation); (C) Where more than 50 percent of the members of the board of directors of any corporation also serve as directors, officers, or employees of the PHA; (D) Holding more than 50 percent of all managing member interests in an LLC; (E) Holding more than 50 percent of all general partner interests in a partnership; or (F) Equivalent levels of control in other ownership structures. Portability. Premises. Present homeownership interest. Private space. Program. Program receipts. Public housing agency (PHA). (1) Any State, county, municipality, or other governmental entity or public body which is authorized to administer the program (or an agency or instrumentality of such an entity), and (2) Any of the following: (i) A consortium of housing agencies, each of which meets the qualifications in paragraph (1) of this definition, that HUD determines has the capacity and capability to efficiently administer the program (in which case, HUD may enter into a consolidated ACC with any legal entity authorized to act as the legal representative of the consortium members); (ii) Any other public or private non-profit entity that was administering a Section 8 tenant-based assistance program pursuant to a contract with the contract administrator of such program (HUD or a PHA) on October 21, 1998; or (iii) For any area outside the jurisdiction of a PHA that is administering a tenant-based program, or where HUD determines that such PHA is not administering the program effectively, a private non-profit entity or a governmental entity or public body that would otherwise lack jurisdiction to administer the program in such area. Reasonable rent. (1) For comparable units in the private unassisted market; and (2) For comparable unassisted units in the premises. Receiving PHA. Renewal units. Rent to owner. Request for Tenancy Approval (RFTA). Residency preference. Residency preference area. Section 8 Management Assessment Program (SEMAP). Shared housing. Single room occupancy housing Small Area Fair Market Rents (SAFMRs or Small Area FMRs). Special admission. Special housing types. Statement of homeowner obligations. In the homeownership option: Subsidy standards. Suspension. Tenant. Tenant-paid utilities. Federal Register Utility reimbursement. Voucher holder. Voucher (rental voucher). Waiting list admission. Welfare-to-work (WTW) families. Withholding. [63 FR 23857, Apr. 30, 1998; 63 FR 31625, June 10, 1998, as amended at 64 FR 26641, May 14, 1999; 64 FR 49658, Sept. 14, 1999; 64 FR 56887, 56911, Oct. 21, 1999; 65 FR 16821, Mar. 30, 2000; 65 FR 55161, Sept. 12, 2000; 66 FR 28804, May 24, 2001; 66 FR 33613, June 22, 2001; 67 FR 64492, Oct. 18, 2002; 77 FR 5675, Feb. 3, 2012; 80 FR 8245, Feb. 17, 2015; 80 FR 50572, Aug. 20, 2015; 88 FR 30503, May 11, 2023; 89 FR 38293, May 7, 2024] § 982.5 Notices required by this part. Where part 982 requires any notice to be given by the PHA, the family or the owner, the notice must be in writing. Subpart B—HUD Requirements and PHA Plan for Administration of Program Source: 60 FR 34695, July 3, 1995, unless otherwise noted. § 982.51 PHA authority to administer program. (a) The PHA must have authority to administer the program. The PHA must provide evidence, satisfactory to HUD, of its status as a PHA, of its authority to administer the program, and of the PHA jurisdiction. (b) The evidence submitted by the PHA to HUD must include enabling legislation and a supporting legal opinion satisfactory to HUD. The PHA must submit additional evidence when there is a change that affects its status as a PHA, its authority to administer the program, or its jurisdiction. [60 FR 34695, July 3, 1995, as amended at 64 FR 26641, May 14, 1999; 80 FR 8245, Feb. 17, 2015] § 982.52 HUD requirements. (a) The PHA must comply with HUD regulations and other HUD requirements for the program. HUD requirements are issued by HUD headquarters, as regulations, Federal Register (b) The PHA must comply with the consolidated ACC and the PHA's HUD-approved applications for program funding. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995] § 982.53 Equal opportunity requirements and protection for victims of domestic violence, dating violence, sexual assault, or stalking. (a) The tenant-based program requires compliance with all equal opportunity requirements imposed by contract or federal law, including the authorities cited at 24 CFR 5.105(a) and title II of the Americans with Disabilities Act, 42 U.S.C. 12101 et seq. (b) Civil rights certification. (1) The PHA will administer the program in conformity with the Fair Housing Act, Title VI of the Civil Rights Act of 1964, section 504 of the Rehabilitation Act of 1973, and Title II of the Americans with Disabilities Act. (2) The PHA will affirmatively further fair housing in the administration of the program. (c) Obligation to affirmatively further fair housing. (d) State and local law. (e) Protection for victims of domestic violence, dating violence, sexual assault, or stalking. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 63 FR 23859, Apr. 30, 1998; 64 FR 26641, May 14, 1999; 64 FR 56911, Oct. 21, 1999; 73 FR 72344, Nov. 28, 2008; 75 FR 66263, Oct. 27, 2010; 80 FR 8245, Feb. 17, 2015; 81 FR 80816, Nov. 16, 2016] § 982.54 Administrative Plan. (a) The PHA must adopt a written Administrative Plan that establishes local policies for administration of the program in accordance with HUD requirements. The Administrative Plan and any revisions of the plan must be formally adopted by the PHA Board of Commissioners or other authorized PHA officials. The Administrative Plan states PHA policy on matters for which the PHA has discretion to establish local policies. (b) The Administrative Plan must be in accordance with HUD regulations and requirements. The Administrative Plan is a supporting document to the PHA Plan (part 903 of this title) and must be available for public review. The PHA must revise the Administrative Plan if needed to comply with HUD requirements. (c) The PHA must administer the program in accordance with the PHA Administrative Plan. (d) The PHA Administrative Plan must cover all the PHA's local policies for administration of the program, including the PHA's policies on the following subjects (see 24 CFR 983.10 for a list of subjects specific to the project-based voucher (PBV) program that also must be included in the Administrative Plan of a PHA that operates a PBV program): (1) Selection and admission of applicants from the PHA waiting list, including any PHA admission preferences, procedures for removing applicant names from the waiting list, and procedures for closing and reopening the PHA waiting list; (2) Issuing or denying vouchers, including PHA policy governing the voucher term and any extensions of the voucher term. If the PHA decides to allow extensions of the voucher term, the PHA Administrative Plan must describe how the PHA determines whether to grant extensions, and how the PHA determines the length of any extension. (3) Any special rules for use of available funds when HUD provides funding to the PHA for a special purpose (e.g., desegregation), including funding for specified families or a specified category of families; (4) Occupancy policies, including: (i) Definition of what group of persons may qualify as a “family”; (ii) Definition of when a family is considered to be “continuously assisted”; (iii) Standards for denying admission or terminating assistance based on criminal activity or alcohol abuse in accordance with § 982.553, or other factors in accordance with §§ 982.552, 982.554, and 982.555; and (iv) Policies concerning residency by a foster child, foster adult, or live-in aide, including defining when PHA consent for occupancy by a foster child, foster adult, or live-in aide must be given or may be denied; (5) Encouraging participation by owners of suitable units located outside areas of low income or minority concentration; (6) Assisting a family that claims that illegal discrimination has prevented the family from leasing a suitable unit; (7) Providing information about a family to prospective owners; (8) Disapproval of owners; (9) Subsidy standards; (10) Family absence from the dwelling unit; (11) How to determine who remains in the program if a family breaks up; (12) Informal review procedures for applicants; (13) Informal hearing procedures for participants; (14) Payment standard policies, including: (i) The process for establishing and revising payment standards, including whether the PHA has voluntarily adopted the use of Small Area Fair Market Rents (SAFMRs); (ii) A description of how the PHA will administer decreases in the payment standard amount for a family continuing to reside in a unit for which the family is receiving assistance (see § 982.505(c)(3)); and (iii) If the PHA establishes different payment standard amounts for designated areas within its jurisdiction, including exception areas, the criteria used to determine the designated areas and the payment standard amounts for those designated areas. (See § 982.503(a)(2)). All such areas must be described in the PHA's Administrative Plan or payment standard schedule; (15) The method of determining that rent to owner is a reasonable rent (initially and during the term of a HAP contract); (16) Special policies concerning special housing types in the program (e.g., use of shared housing); (17) Policies concerning payment by a family to the PHA of amounts the family owes the PHA; (18) Policies concerning interim redeterminations of family income and composition, the frequency of determinations of family income, and income-determination practices, including whether the PHA will accept a family declaration of assets; (19) Restrictions, if any, on the number of moves by a participant family (see § 982.354(c)); (20) Approval by the Board of Commissioners or other authorized officials to charge the administrative fee reserve; (21) Procedural guidelines and performance standards for conducting required HQS inspections, including: (i) Any deficiency that the PHA has adopted as a life-threatening deficiency that is not a HUD-required life-threatening deficiency. (ii) For PHAs that adopt the initial inspection non-life-threatening deficiency option: (A) The PHA's policy on whether the provision will apply to all initial inspections or a portion of initial inspections. (B) The PHA's policy on whether the provision will be applied to only some inspections and how the units will be selected. (C) The PHA's policy on using withheld HAP funds to repay an owner once the unit is in compliance with HQS. (iii) For PHAs that adopt the alternative inspection provision: (A) The PHA's policy on how it will apply the provision to initial and periodic inspections. (B) The specific alternative inspection method used by the PHA. (C) The specific properties or types of properties where the alternative inspection method will be employed. (D) For initial inspections, the maximum amount of time the PHA will withhold HAP if the owner does not correct the HQS deficiencies within the cure period, and the period of time after which the PHA will terminate the HAP contract for the owner's failure to correct the deficiencies, which may not exceed 180 days from the effective date of the HAP contract. (iv) The PHA's policy on charging a reinspection fee to owners. (22) The PHA's policy on withholding HAP for units that do not meet HQS (see § 982.404(d)(1)); (23) The PHA's policy on assisting families with relocating and finding a new unit (see § 982.404(e)(3)); (24) The PHA's policy on screening of applicants for family behavior or suitability for tenancy; (25) Whether the PHA will permit a family to submit more than one Request for Tenancy Approval at a time (see § 982.302(b)); and (26) In the event of insufficient funding, taking into account any cost-savings measures taken by the PHA, a description of the factors the PHA will consider when determining which HAP contracts to terminate first ( e.g., (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 61 FR 27163, May 30, 1996; 63 FR 23859, Apr. 30, 1998; 64 FR 26641, May 14, 1999; 64 FR 49658, Sept. 14, 1999; 64 FR 56911, Oct. 21, 1999; 66 FR 28804, May 24, 2001; 80 FR 8245, Feb. 17, 2015; 80 FR 50572, Aug. 20, 2015; 81 FR 80582, Nov. 16, 2016; 89 FR 38294, May 7, 2024] Subpart C—Funding and PHA Application for Funding Source: 60 FR 34695, July 3, 1995, unless otherwise noted. § 982.101 Allocation of funding. (a) Allocation of funding. (b) Section 213(d) allocation. (2) Budget authority subject to allocation under section 213(d) is allocated in accordance with 24 CFR part 791, subpart D. There are three categories of section 213(d) funding allocations under part 791 of this title: (i) Funding retained in a headquarters reserve for purposes specified by law; (ii) funding incapable of geographic formula allocation (e.g., for renewal of expiring funding increments); or (iii) funding allocated by an objective fair share formula. Funding allocated by fair share formula is distributed by a competitive process. (c) Competitive process. Federal Register. [60 FR 34695, July 3, 1995, as amended at 64 FR 26642, May 14, 1999; 80 FR 8246, Feb. 17, 2015] § 982.102 Allocation of budget authority for renewal of expiring consolidated ACC funding increments. (a) Applicability. (b) Renewal Methodology. (c) Determining the amount of budget authority allocated for renewal of an expiring funding increment. (1) Number of renewal units. (2) Adjusted annual per unit cost. (d) Determining the number of renewal units Number of renewal units. (i) Step 1: Establishing the initial baseline. (ii) Step 2: Establishing the adjusted baseline. (A) Additional units. (B) Units removed. (iii) Step 3: Determining the number of renewal units. (2) Funding increments. (3) Correction of errors. (e) Determining the adjusted per unit cost. (1) Step 1: Determining monthly program expenditure Use of most recent HUD-approved year end statement. (ii) Monthly program expenditure. (A) Total program expenditure. (B) Total unit months leased. (2) Step 2: Determining annual per unit cost. (3) Step 3: Determining adjusted annual per unit cost. (ii) Use of annual adjustment factor applicable to PHA jurisdiction. Federal Register (iii) Use of annual adjustment factors in effect subsequent to most recent Year End Statement. (iv) Special circumstances. (4) Correction of errors. (f) Consolidated ACC amendment to add renewal funding. (g) Modification of allocation of budget authority HUD authority to conform PHA program costs with PHA program finances through Federal Register notice. Federal Register (2) HUD authority to limit increases of per unit cost through Federal Register notice. Federal Register (3) HUD authority to limit decreases to per unit costs through Federal Register notice. Federal Register (4) Contents of Federal Register notice. Federal Register (i) Deconcentration of poverty and expanding housing opportunities; (ii) Reasonable rent burden; (iii) Income targeting; (iv) Consistency with applicable consolidated plan(s); (v) Rent reasonableness; (vi) Program efficiency and economy; (vii) Service to additional households within budgetary limitations; and (viii) Service to the adjusted baseline number of families. (5) Public consultation before issuance of Federal Register notice. Federal Register (h) Ability to prorate and synchronize contract funding increments. (i) Reallocation of budget authority. Federal Register [64 FR 56887, Oct. 21, 1999; 65 FR 16818, Mar. 30, 2000; 80 FR 8246, Feb. 17, 2015] § 982.103 PHA application for funding. (a) A PHA must submit an application for program funding to HUD at the time and place and in the form required by HUD. (b) For competitive funding under a NOFA, the application must be submitted by a PHA in accordance with the requirements of the NOFA. (c) The application must include all information required by HUD. HUD requirements may be stated in the HUD-required form of application, the NOFA, or other HUD instructions. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 63 FR 23859, Apr. 30, 1998. Redesignated at 64 FR 56887, Oct. 21, 1999; 80 FR 8246, Feb. 17, 2015] § 982.104 HUD review of application. (a) Competitive funding under NOFA. (b) Approval or disapproval of PHA funding application. (2) When HUD approves an application, HUD must notify the PHA of the amount of approved funding. (3) For budget authority that is distributed to PHAs by competitive process, documentation of the basis for provision or denial of assistance is available for public inspection in accordance with 24 CFR 12.14(b). (c) PHA disqualification. [60 FR 34695, July 3, 1995, as amended at 64 FR 26642, May 14, 1999. Redesignated at 64 FR 56887, Oct. 21, 1999] Subpart D—Annual Contributions Contract and PHA Administration of Program Source: 60 FR 34695, July 3, 1995, unless otherwise noted. § 982.151 Annual contributions contract. (a) Nature of ACC. (2) HUD's commitment to make payments for each funding increment in the PHA program constitutes a separate ACC. However, commitments for all the funding increments in a PHA program are listed in one consolidated contractual document called the consolidated annual contributions contract (consolidated ACC). A single consolidated ACC covers funding for the PHA's HCV program. (b) Budget authority. (2) For each funding increment, the ACC specifies the term over which HUD will make payments for the PHA program, and the amount of available budget authority for each funding increment. The amount to be paid to the PHA during each PHA fiscal year (including payment from the ACC reserve account described in § 982.154) must be approved by HUD. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 64 FR 26642, May 14, 1999; 80 FR 8246, Feb. 17, 2015] § 982.152 Administrative fee. (a) Purposes of administrative fee. (i) Ongoing administrative fee; (ii) Costs to help families who experience difficulty finding or renting appropriate housing under the program; (iii) The following types of extraordinary costs approved by HUD: (A) Costs to cover necessary additional expenses incurred by the PHA to provide reasonable accommodation for persons with disabilities in accordance with part 8 of this title (e.g., additional counselling costs), where the PHA is unable to cover such additional expenses from ongoing administrative fee income or the PHA administrative fee reserve; (B) Costs of audit by an independent public accountant; (C) Other extraordinary costs determined necessary by HUD Headquarters; (iv) Preliminary fee (in accordance with paragraph (c) of this section); (v) Costs to coordinate supportive services for families participating in the family self-sufficiency (FSS) program. (2) For each PHA fiscal year, administrative fees are specified in the PHA budget. The budget is submitted for HUD approval. Fees are paid in the amounts approved by HUD. Administrative fees may only be approved or paid from amounts appropriated by the Congress. (3) PHA administrative fees may only be used to cover costs incurred to perform PHA administrative responsibilities for the program in accordance with HUD regulations and requirements. (b) Ongoing administrative fee. (2) If appropriations are available, HUD may pay a higher ongoing administrative fee for a small program or a program operating over a large geographic area. This higher fee level will not be approved unless the PHA demonstrates that it is efficiently administering its HCV program, and that the higher ongoing administrative fee is reasonable and necessary for administration of the program in accordance with HUD requirements. (3) HUD may pay a lower ongoing administrative fee for PHA-owned units. (c) Preliminary fee. (2) The preliminary fee is used to cover expenses the PHA incurs to help families who inquire about or apply for the program, and to lease up new program units. (d) Reducing PHA administrative fee. [60 FR 23695, July 3, 1995, as amended at 63 FR 23860, Apr. 30, 1998; 64 FR 26642, May 14, 1999; 80 FR 8246, Feb. 17, 2015] § 982.153 PHA responsibilities. The PHA must comply with the consolidated ACC, the application, HUD regulations and other requirements, and the PHA Administrative Plan. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 61 FR 13627, Mar. 27, 1996; 63 FR 23860, Apr. 30, 1998] § 982.154 ACC reserve account. (a) HUD may establish and maintain an unfunded reserve account for the PHA program from available budget authority under the consolidated ACC. This reserve is called the “ACC reserve account” (formerly “project reserve”). There is a single ACC reserve account for the PHA program. (b) The amount in the ACC reserve account is determined by HUD. HUD may approve payments for the PHA program, in accordance with the PHA's HUD-approved budget, from available amounts in the ACC reserve account. [64 FR 26642, May 14, 1999] § 982.155 Administrative fee reserve. (a) The PHA must maintain an administrative fee reserve (formerly “operating reserve”) for the program. There is a single administrative fee reserve for the PHA program. The PHA must credit to the administrative fee reserve the total of: (1) The amount by which program administrative fees paid by HUD for a PHA fiscal year exceed the PHA program administrative expenses for the fiscal year; plus (2) Interest earned on the administrative fee reserve. (b)(1) The PHA must use funds in the administrative fee reserve to pay program administrative expenses in excess of administrative fees paid by HUD for a PHA fiscal year. If funds in the administrative fee reserve are not needed to cover PHA administrative expenses (to the end of the last expiring funding increment under the consolidated ACC), the PHA may use these funds for other housing purposes permitted by State and local law. However, HUD may prohibit use of the funds for certain purposes. (2) The PHA Board of Commissioners or other authorized officials must establish the maximum amount that may be charged against the administrative fee reserve without specific approval. (3) If the PHA has not adequately administered any Section 8 program, HUD may prohibit use of funds in the administrative fee reserve, and may direct the PHA to use funds in the reserve to improve administration of the program or to reimburse ineligible expenses. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 64 FR 26642, May 14, 1999] § 982.156 Depositary for program funds. (a) Unless otherwise required or permitted by HUD, all program receipts must be promptly deposited with a financial institution selected as depositary by the PHA in accordance with HUD requirements. (b) The PHA may only withdraw deposited program receipts for use in connection with the program in accordance with HUD requirements. (c) The PHA must enter into an agreement with the depositary in the form required by HUD. (d)(1) If required under a written freeze notice from HUD to the depositary: (i) The depositary may not permit any withdrawal by the PHA of funds held under the depositary agreement unless expressly authorized by written notice from HUD to the depositary; and (ii) The depositary must permit withdrawals of such funds by HUD. (2) HUD must send the PHA a copy of the freeze notice from HUD to the depositary. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995] § 982.157 Budget and expenditure. (a) Budget submission. (b) PHA use of program receipts. (i) Housing assistance payments; and (ii) PHA administrative fees. (2) The PHA must maintain a system to ensure that the PHA will be able to make housing assistance payments for all participants within the amounts contracted under the consolidated ACC. (c) Intellectual property rights. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 64 FR 26642, May 14, 1999] § 982.158 Program accounts and records. (a) The PHA must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. The records must be in the form required by HUD, including requirements governing computerized or electronic forms of record-keeping. The PHA must comply with the financial reporting requirements in 24 CFR part 5, subpart H. (b) The PHA must furnish to HUD accounts and other records, reports, documents and information, as required by HUD. For provisions on electronic transmission of required family data, see 24 CFR part 908. (c) HUD and the Comptroller General of the United States shall have full and free access to all PHA offices and facilities, and to all accounts and other records of the PHA that are pertinent to administration of the program, including the right to examine or audit the records, and to make copies. The PHA must grant such access to computerized or other electronic records, and to any computers, equipment or facilities containing such records, and shall provide any information or assistance needed to access the records. (d) The PHA must prepare a unit inspection report. (e) During the term of each assisted lease, and for at least three years thereafter, the PHA must keep: (1) A copy of the executed lease; (2) The HAP contract; and (3) The application from the family. (f) The PHA must keep the following records for at least three years: (1) Records that provide income, racial, ethnic, gender, and disability status data on program applicants and participants; (2) An application from each ineligible family and notice that the applicant is not eligible; (3) HUD-required reports; (4) Unit inspection reports; (5) Lead-based paint records as required by part 35, subpart B of this title. (6) Accounts and other records supporting PHA budget and financial statements for the program; (7) Records to document the basis for PHA determination that rent to owner is a reasonable rent (initially and during the term of a HAP contract); and (8) Other records specified by HUD. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 61 FR 27163, May 30, 1996; 63 FR 23860, Apr. 30, 1998; 63 FR 46593, Sept. 1, 1998; 64 FR 50229, Sept. 15, 1999; 80 FR 8246, Feb. 17, 2015] § 982.159 Audit requirements. (a) The PHA must engage and pay an independent public accountant to conduct audits in accordance with HUD requirements. (b) The PHA is subject to the audit requirements in 2 CFR part 200, subpart F. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 80 FR 75943, Dec. 7, 2015] § 982.160 HUD determination to administer a local program. If the Assistant Secretary for Public and Indian Housing determines that there is no PHA organized, or that there is no PHA able and willing to implement the provisions of this part for an area, HUD (or an entity acting on behalf of HUD) may enter into HAP contracts with owners and perform the functions otherwise assigned to PHAs under this part with respect to the area. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995] § 982.161 Conflict of interest. (a) Neither the PHA nor any of its contractors or subcontractors may enter into any contract or arrangement in connection with the HCV program in which any of the following classes of persons has any interest, direct or indirect, during tenure or for one year thereafter: (1) Any present or former member or officer of the PHA (except a participant commissioner); (2) Any employee of the PHA, or any contractor, subcontractor or agent of the PHA, who formulates policy or who influences decisions with respect to the programs; (3) Any public official, member of a governing body, or State or local legislator, who exercises functions or responsibilities with respect to the programs; or (4) Any member of the Congress of the United States. (b) Any member of the classes described in paragraph (a) of this section must disclose their interest or prospective interest to the PHA and HUD. (c) The conflict of interest prohibition under this section may be waived by the HUD field office for good cause. [60 FR 34695, July 3, 1995, as amended at 80 FR 8246, Feb. 17, 2015] § 982.162 Use of HUD-required contracts and other forms. (a) The PHA must use program contracts and other forms required by HUD headquarters, including: (1) The consolidated ACC between HUD and the PHA; (2) The HAP contract between the PHA and the owner; and (3) The tenancy addendum required by HUD (which is included both in the HAP contract and in the lease between the owner and the tenant). (b) Required program contracts and other forms must be word-for-word in the form required by HUD headquarters. Any additions to or modifications of required program contracts or other forms must be approved by HUD headquarters. [60 FR 34695, July 3, 1995, as amended at 64 FR 26642, May 14, 1999] § 982.163 Fraud recoveries. Under 24 CFR part 792, the PHA may retain a portion of program fraud losses that the PHA recovers from a family or owner by litigation, court-order or a repayment agreement. [60 FR 34695, July 3, 1995; 60 FR 43840, Aug. 23, 1995] Subpart E—Admission to Tenant-Based Program § 982.201 Eligibility and targeting. (a) When applicant is eligible: General. (b) Income Income-eligibility. (i) A “very low income” family; (ii) A low-income family that is “continuously assisted” under the 1937 Housing Act; (iii) A low-income family that meets additional eligibility criteria specified in the PHA Administrative Plan. Such additional PHA criteria must be consistent with the PHA plan and with the consolidated plans for local governments in the PHA jurisdiction; (iv) A low-income family that qualifies for voucher assistance as a non-purchasing family residing in a HOPE 1 (HOPE for public housing homeownership) or HOPE 2 (HOPE for homeownership of multifamily units) project. (Section 8(o)(4)(D) of the 1937 Act (42 U.S.C. 1437f(o)(4)(D)); (v) A low-income or moderate-income family that is displaced as a result of the prepayment of the mortgage or voluntary termination of an insurance contract on eligible low-income housing as defined in § 248.101 of this title; (vi) A low-income family that qualifies for voucher assistance as a non-purchasing family residing in a project subject to a resident homeownership program under § 248.173 of this title. (2) Income-targeting. (ii) A PHA may admit a lower percent of extremely low income families during a PHA fiscal year (than otherwise required under paragraph (b)(2)(i) of this section) if HUD approves the use of such lower percent by the PHA, in accordance with the PHA plan, based on HUD's determination that the following circumstances necessitate use of such lower percent by the PHA: (A) The PHA has opened its waiting list for a reasonable time for admission of extremely low income families residing in the same metropolitan statistical area (MSA) or non-metropolitan county, both inside and outside the PHA jurisdiction; (B) The PHA has provided full public notice of such opening to such families, and has conducted outreach and marketing to such families, including outreach and marketing to extremely low income families on the Section 8 and public housing waiting lists of other PHAs with jurisdiction in the same MSA or non-metropolitan county; (C) Notwithstanding such actions by the PHA (in accordance with paragraphs (b)(2)(ii)(A) and (B) of this section), there are not enough extremely low income families on the PHA's waiting list to fill available slots in the program during any fiscal year for which use of a lower percent is approved by HUD; and (D) Admission of the additional very low income families other than extremely low income families to the PHA's tenant-based voucher program will substantially address worst case housing needs as determined by HUD. (iii) If approved by HUD, the admission of a portion of very low income welfare-to-work (WTW) families that are not extremely low income families may be disregarded in determining compliance with the PHA's income-targeting obligations under paragraph (b)(2)(i) of this section. HUD will grant such approval only if and to the extent that the PHA has demonstrated to HUD's satisfaction that compliance with such targeting obligations with respect to such portion of WTW families would interfere with the objectives of the welfare-to-work voucher program. If HUD grants such approval, admission of that portion of WTW families is not counted in the base number of families admitted to a PHA's tenant-based voucher program during the fiscal year for purposes of income targeting. (iv) Admission of families as described in paragraphs (b)(1)(ii) or (b)(1)(v) of this section is not subject to targeting under paragraph (b)(2)(i) of this section. (v) If the jurisdictions of two or more PHAs that administer the HCV program cover an identical geographic area, such PHAs may elect to be treated as a single PHA for purposes of targeting under paragraph (b)(2)(i) of this section. In such a case, the PHAs shall cooperate to assure that aggregate admissions by such PHAs comply with the targeting requirement. If such PHAs do not have a single fiscal year, HUD will determine which PHA's fiscal year is used for this purpose. (vi) If a family initially leases a unit outside the PHA jurisdiction under portability procedures at admission to the HCV program, such admission shall be counted against the targeting obligation of the initial PHA (unless the receiving PHA absorbs the portable family into the receiving PHA's HCV program from the point of admission). (3) The annual income (gross income) of an applicant family is used both for determination of income-eligibility under paragraph (b)(1) of this section and for targeting under paragraph (b)(2)(i) of this section. In determining annual income of an applicant family that includes a person with disabilities, the determination must include the disallowance of increase in annual income as provided in 24 CFR 5.617, if applicable. (4) The applicable income limit for issuance of a voucher when a family is selected for the program is the highest income limit (for the family size) for areas in the PHA jurisdiction. The applicable income limit for admission to the program is the income limit for the area where the family is initially assisted in the program. At admission, the family may only use the voucher to rent a unit in an area where the family is income eligible. (c) Family composition. (d) Continuously assisted. (2) The PHA must establish policies concerning whether and to what extent a brief interruption between assistance under one of these programs and admission to the voucher program will be considered to break continuity of assistance under the 1937 Housing Act. (e) When PHA verifies that applicant is eligible. (f) Decision to deny assistance Notice to applicant. (2) For description of the grounds for denying assistance because of action or inaction by the applicant, see § 982.552(b) and (c) (requirement and authority to deny admission) and § 982.553(a) (crime by family members). [59 FR 36682, July 18, 1994, as amended at 60 FR 34717, July 3, 1995; 61 FR 13627, Mar. 27, 1996; 64 FR 26642, May 14, 1999; 64 FR 49658, Sept. 14, 1999; 64 FR 56911, Oct. 21, 1999; 66 FR 6226, Jan. 19, 2001; 66 FR 8174, Jan. 30, 2001; 67 FR 6820, Feb. 13, 2002; 70 FR 77744, Dec. 30, 2005; 73 FR 72344, Nov. 28, 2008; 75 FR 66263, Oct. 27, 2010; 77 FR 5676, Feb. 3, 2012; 80 FR 8246, Feb. 17, 2015; 81 FR 80816, Nov. 16, 2016] § 982.202 How applicants are selected: General requirements. (a) Waiting list admissions and special admissions. (1) As a special admission (see § 982.203). (2) As a waiting list admission (see § 982.204 through § 982.210). (b) Prohibited admission criteria Where family lives. (2) Where family will live. (3) Family characteristics. (i) Discrimination because members of the family are unwed parents, recipients of public assistance, or children born out of wedlock; (ii) Discrimination because a family includes children (familial status discrimination); (iii) Discrimination because of age, race, color, religion, sex, or national origin; (iv) Discrimination because of disability; or (v) Whether a family decides to participate in a family self-sufficiency program. (c) Applicant status. (d) Admission policy. [59 FR 36682, July 18, 1994, as amended at 60 FR 34717, July 3, 1995; 61 FR 9048, Mar. 6, 1996; 61 FR 27163, May 30, 1996; 64 FR 26643, May 14, 1999; 65 FR 16821, Mar. 30, 2000; 73 FR 72344, Nov. 28, 2008; 75 FR 66263, Oct. 27, 2010; 81 FR 80816, Nov. 16, 2016] § 982.203 Special admission (non-waiting list): Assistance targeted by HUD. (a) If HUD awards a PHA program funding that is targeted for families living in specified units: (1) The PHA must use the assistance for the families living in these units. (2) The PHA may admit a family that is not on the PHA waiting list, or without considering the family's waiting list position. The PHA must maintain records showing that the family was admitted with HUD-targeted assistance. (b) The following are examples of types of program funding that may be targeted for a family living in a specified unit: (1) A family displaced because of demolition or disposition of a public housing project; (2) A family residing in a multifamily rental housing project when HUD sells, forecloses or demolishes the project; (3) For housing covered by the Low Income Housing Preservation and Resident Homeownership Act of 1990 (41 U.S.C. 4101 et seq. (i) A non-purchasing family residing in a project subject to a homeownership program (under 24 CFR 248.173); or (ii) A family displaced because of mortgage prepayment or voluntary termination of a mortgage insurance contract (as provided in 24 CFR 248.165); (4) A family residing in a project covered by a project-based Section 8 HAP contract at or near the end of the HAP contract term; and (5) A non-purchasing family residing in a HOPE 1 or HOPE 2 project. [59 FR 36682, July 18, 1994, as amended at 64 FR 26643, May 14, 1999] § 982.204 Waiting list: Administration of waiting list. (a) Admission from waiting list. (b) Organization of waiting list. (1) Applicant name; (2) Family unit size (number of bedrooms for which family qualifies under PHA occupancy standards); (3) Date and time of application; (4) Qualification for any local preference; (5) Racial or ethnic designation of the head of household. (c) Removing applicant names from the waiting list. (2) An PHA decision to withdraw from the waiting list the name of an applicant family that includes a person with disabilities is subject to reasonable accommodation in accordance with 24 CFR part 8. If the applicant did not respond to the PHA request for information or updates because of the family member's disability, the PHA must reinstate the applicant in the family's former position on the waiting list. (d) Family size. (2) If the PHA does not have sufficient funds to subsidize the family unit size of the family at the top of the waiting list, the PHA may not skip the top family to admit an applicant with a smaller family unit size. Instead, the family at the top of the waiting list will be admitted when sufficient funds are available. (e) Funding for specified category of waiting list families. (f) Number of waiting lists. (Approved by the Office of Management and Budget under OMB control number 2577-0169) [59 FR 36682, July 18, 1994, as amended at 60 FR 34717, July 3, 1995; 63 FR 23860, Apr. 30, 1998; 64 FR 26643, May 14, 1999; 65 FR 16821, Mar. 30, 2000] § 982.205 Waiting list: Different programs. (a) Merger and cross-listing Merged waiting list. (2) Non-merged waiting list: Cross-listing. (i) If the PHA's waiting list for tenant-based assistance is open when an applicant is placed on the waiting list for the PHA's public housing program, project-based voucher program (including any owner-maintained waiting list), or moderate rehabilitation program, the PHA must offer to place the applicant on its waiting list for tenant-based assistance. (ii) If the PHA's waiting list for its public housing program, project-based voucher program (including any owner-maintained waiting list), or moderate rehabilitationis open when an applicant is placed on the waiting list for its tenant-based program, and if the other program includes units suitable for the applicant, the PHA must offer to place the applicant on its waiting list for the other program. (b) Other housing assistance: Effect of application for, receipt or refusal. (2) The PHA may not take any of the following actions because an applicant has applied for, received, or refused other housing assistance: (i) Refuse to list the applicant on the PHA waiting list for tenant-based assistance; (ii) Deny any admission preference for which the applicant is currently qualified; (iii) Change the applicant's place on the waiting list based on preference, date and time of application, or other factors affecting selection under the PHA selection policy; or (iv) Remove the applicant from the waiting list. [59 FR 36682, July 18, 1994, as amended at 61 FR 27163, May 30, 1996; 63 FR 23860, Apr. 30, 1998; 64 FR 26643, May 14, 1999; 65 FR 16821, Mar. 30, 2000; 80 FR 8246, Feb. 17, 2015; 90 FR 56687, Dec. 8, 2025] § 982.206 Waiting list: Opening and closing; public notice. (a) Public notice. (2) The PHA must give the public notice by publication in a local newspaper of general circulation, and also by minority media and other suitable means. The notice must comply with HUD fair housing requirements. (3) The public notice must state any limitations on who may apply for available slots in the program. (b) Criteria defining what families may apply. (2) If the waiting list is open, the PHA must accept applications from families for whom the list is open unless there is good cause for not accepting the application (such as denial of assistance because of action or inaction by members of the family) for the grounds stated in §§ 982.552 and 982.553. (c) Closing waiting list. (Approved by the Office of Management and Budget under control number 2577-0169) [59 FR 36682, July 18, 1994, as amended at 60 FR 34717, July 3, 1995; 60 FR 45661, Sept. 1, 1995; 63 FR 23860, Apr. 30, 1998; 64 FR 26643, May 14, 1999] § 982.207 Waiting list: Local preferences in admission to program. (a) Establishment of PHA local preferences. (2) The PHA system of local preferences must be based on local housing needs and priorities, as determined by the PHA. In determining such needs and priorities, the PHA shall use generally accepted data sources. The PHA shall consider public comment on the proposed public housing agency plan (as received pursuant to § 903.17 of this chapter) and on the consolidated plan for the relevant jurisdiction (as received pursuant to part 91 of this title). (3) The PHA may limit the number of applicants that may qualify for any local preference. (4) The PHA shall not deny a local preference, nor otherwise exclude or penalize a family in admission to the program, solely because the family resides in a public housing project. The PHA may establish a preference for families residing in public housing who are victims of a crime of violence (as defined in 18 U.S.C. 16). (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 title. 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 persons with disabilities. (c) Selection among families with preference. (1) Date and time of application; or (2) A drawing or other random choice technique. (d) Preference for higher-income families. (e) Verification of selection method. [64 FR 26643, May 14, 1999, as amended at 64 FR 56912, Oct. 21, 1999; 65 FR 16821, Mar. 30, 2000; 81 FR 80816, Nov. 16, 2016] Subpart F [Reserved] Subpart G—Leasing a Unit Source: 60 FR 34695, July 3, 1995, unless otherwise noted. § 982.301 Information when family is selected. (a) Oral briefing. (1) The briefing must include information on the following subjects: (i) A description of how the program works; (ii) Family and owner responsibilities; (iii) Where the family may lease a unit, including renting a dwelling unit inside or outside the PHA jurisdiction, and any information on selecting a unit that HUD provides; (iv) An explanation of how portability works; and (v) An explanation of the advantages of areas that do not have a high concentration of low-income families. (2) The PHA may not discourage the family from choosing to live anywhere in the PHA jurisdiction, or outside the PHA jurisdiction under portability procedures, unless otherwise expressly authorized by statute, regulation, PIH Notice, or court order. The family must be informed of how portability may affect the family's assistance through screening, subsidy standards, payment standards, and any other elements of the portability process which may affect the family's assistance. (3) The PHA must take appropriate steps to ensure effective communication in accordance with 24 CFR 8.6 and 28 CFR part 35, subpart E, and must provide information on the reasonable accommodation process. (b) Information packet. (1) The term of the voucher, voucher suspensions, and PHA policy on any extensions of the term. If the PHA allows extensions, the packet must explain how the family can request an extension; (2) How the PHA determines the amount of the housing assistance payment for a family, including: (i) How the PHA determines the payment standard for a family; and (ii) How the PHA determines the total tenant payment for a family. (3) How the PHA determines the maximum rent for an assisted unit; (4) Where the family may lease a unit and an explanation of how portability works, including information on how portability may affect the family's assistance through screening, subsidy standards, payment standards, and any other elements of the portability process which may affect the family's assistance. (5) The HUD-required “tenancy addendum” that must be included in the lease; (6) The form that the family uses to request PHA approval of the assisted tenancy, and an explanation of how to request such approval; (7) A statement of the PHA policy on providing information about a family to prospective owners; (8) PHA subsidy standards, including when the PHA will consider granting exceptions to the standards as allowed by 24 CFR 982.402(b)(8), and when exceptions are required as a reasonable accommodation for persons with disabilities under Section 504, the Fair Housing Act, or the Americans with Disabilities Act; (9) Materials ( e.g. (10) Information on Federal, State, and local equal opportunity laws, the contact information for the Section 504 coordinator, a copy of the housing discrimination complaint form, and information on how to request a reasonable accommodation or modification (including information on requesting exception payment standards as a reasonable accommodation) under Section 504, the Fair Housing Act, and the Americans with Disabilities Act; (11) A list of landlords known to the PHA who may be willing to lease a unit to the family or other resources ( e.g. (12) Notice that if the family includes a person with disabilities, the PHA is subject to the requirement under 24 CFR 8.28(a)(3) to provide a current listing of accessible units known to the PHA and, if necessary, other assistance in locating an available accessible dwelling unit; (13) Family obligations under the program; (14) The advantages of areas that do not have a high concentration of low-income families which may include, access to accessible and high-quality housing, transit, employment opportunities, educational opportunities, recreational facilities, public safety stations, retail services, and health services; and (15) A description of when the PHA is required to give a participant family the opportunity for an informal hearing and how to request a hearing. (c) Providing information for persons with limited English proficiency (LEP). (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 61 FR 27163, May 30, 1996; 64 FR 26644, May 14, 1999; 64 FR 50229, Sept. 15, 1999; 64 FR 56912, Oct. 21, 1999; 80 FR 50572, Aug. 20, 2015; 80 FR 52619, Sept. 1, 2015; 89 FR 38295, May 7, 2024] § 982.302 Issuance of voucher; Requesting PHA approval of assisted tenancy. (a) When a family is selected, or when a participant family wants to move to another unit, the PHA issues a voucher to the family. The family may search for a unit. (b) If the family finds a unit, and the owner is willing to lease the unit under the program, the family may request PHA approval of the tenancy. The PHA has the discretion whether to permit the family to submit more than one request at a time. (c) The family must submit to the PHA a request for approval of the tenancy and a copy of the lease, including the HUD-prescribed tenancy addendum. The request must be submitted during the term of the voucher. (d) The PHA specifies the procedure for requesting approval of the tenancy. The family must submit the request for approval of the tenancy in the form and manner required by the PHA. [64 FR 26644, May 14, 1999] § 982.303 Term of voucher. (a) Initial term. (b) Extensions of term. (2) If the family needs and requests an extension of the initial voucher term as a reasonable accommodation, in accordance with part 8 of this title, to make the program accessible to a family member who is a person with disabilities, the PHA must extend the voucher term up to the term reasonably required for that purpose. (c) Suspension of term. (d) Progress report by family to the PHA. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 63 FR 23860, Apr. 30, 1998; 64 FR 26644, May 14, 1999; 64 FR 56913, Oct. 21, 1999; 80 FR 50573, Aug. 20, 2015] § 982.304 Illegal discrimination: PHA assistance to family. A family may claim that illegal discrimination because of race, color, religion, sex, national origin, age, familial status or disability prevents the family from finding or leasing a suitable unit with assistance under the program. The PHA must give the family information on how to fill out and file a housing discrimination complaint. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995] § 982.305 PHA approval of assisted tenancy. (a) Program requirements. (1) The unit is eligible; (2) The unit has been inspected by the PHA and passes HQS; (3) The lease includes the tenancy addendum; (4) The rent to owner is reasonable; and (5) At the time a family initially receives tenant-based assistance for occupancy of a dwelling unit, and where the gross rent of the unit exceeds the applicable payment standard for the family, the family share does not exceed 40 percent of the family's monthly adjusted income. (b) Actions before lease term. (i) The PHA has inspected the unit and has determined that the unit satisfies the HQS; (ii) The landlord and the tenant have executed the lease (including the HUD-prescribed tenancy addendum, and the lead-based paint disclosure information as required in § 35.92(b) of this title); and (iii) The PHA has approved leasing of the unit in accordance with program requirements. (2) The timeframes for inspection: (A) In the case of a PHA with up to 1250 budgeted units in its tenant-based program, within fifteen days after the family and the owner submit a request for approval of the tenancy. (B) In the case of a PHA with more than 1250 budgeted units in its tenant-based program, within a reasonable time after the family submits a request for approval of the tenancy. To the extent practicable, such inspection and determination must be completed within fifteen days after the family and the owner submit a request for approval of the tenancy. (ii) The 15-day clock (under paragraph (b)(2)(i) of this section) is suspended during any period when the unit is not available for inspection. (3) If the PHA has implemented, and the unit is covered by, the alternative inspection option for initial inspections under § 982.406(e), the PHA is not subject to paragraphs (a)(2), (b)(1)(i), and (b)(2) of this section. (4) In the case of a unit subject to a lease-purchase agreement, the PHA must provide written notice to the family of the environmental requirements that must be met before commencing homeownership assistance for the family (see § 982.626(c)). (c) When HAP contract is executed. (2) The PHA may not pay any housing assistance payment to the owner until the HAP contract has been executed. (3) If the HAP contract is executed during the period of 60 calendar days from the beginning of the lease term, the PHA will pay housing assistance payments after execution of the HAP contract (in accordance with the terms of the HAP contract), to cover the portion of the lease term before execution of the HAP contract (a maximum of 60 days). (4) Any HAP contract executed after the 60-day period is void, and the PHA may not pay any housing assistance payment to the owner, unless there are extenuating circumstances that prevent or prevented the PHA from meeting the 60-day deadline, then the PHA may submit to the HUD field office a request for an extension. The request, which must be submitted no later than two weeks after the 60-day deadline, must include an explanation of the extenuating circumstances and any supporting documentation. HUD at its sole discretion will determine if the extension request is approved. (d) Notice to family and owner. (e) Procedure after PHA approval. (f) Initial HQS inspection requirements. (i) The PHA may approve the assisted tenancy and execute the HAP contract, and (ii) The beginning of the initial lease term. (2) If the PHA has implemented, and determines that the unit is covered by, the non-life-threatening deficiencies option at § 982.405(j), the unit must be inspected by the PHA and must have no life-threatening deficiencies before: (i) The PHA may approve the assisted tenancy and execute the HAP contract; and (ii) The beginning of the initial lease term. (3) If the PHA has implemented and determines that the unit is covered by the alternative inspection option at § 982.406(e), then the PHA must determine that the unit was inspected in the previous 24 months by an inspection that meets the requirements of § 982.406 before: (i) The PHA may approve the assisted tenancy and execute the HAP contract; and (ii) The beginning of the initial lease term. (4) If the PHA has implemented and determines that the unit is covered by both the no life-threatening deficiencies option and the alternative inspection option, the unit is subject only to paragraph (f)(3) of this section, not paragraph (f)(2) of this section. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 64 FR 26644, May 14, 1999; 64 FR 56913, Oct. 21, 1999; 64 FR 59622, Nov. 3, 1999; 65 FR 16818, Mar. 30, 2000; 65 FR 55161, Sept. 12, 2000; 69 FR 34276, June 21, 2004; 80 FR 8246, Feb. 17, 2015; 89 FR 38295, May 7, 2024] § 982.306 PHA disapproval of owner. (a) The PHA must not approve an assisted tenancy if the PHA has been informed (by HUD or otherwise) that the owner is debarred, suspended, or subject to a limited denial of participation under 2 CFR part 2424. (b) When directed by HUD, the PHA must not approve an assisted tenancy if: (1) The federal government has instituted an administrative or judicial action against the owner for violation of the Fair Housing Act or other federal equal opportunity requirements, and such action is pending; or (2) A court or administrative agency has determined that the owner violated the Fair Housing Act or other federal equal opportunity requirements. (c) In its administrative discretion, the PHA may deny approval of an assisted tenancy for any of the following reasons: (1) The owner has violated obligations under a HAP contract under Section 8 of the 1937 Act (42 U.S.C. 1437f); (2) The owner has committed fraud, bribery or any other corrupt or criminal act in connection with any federal housing program; (3) The owner has engaged in any drug-related criminal activity or any violent criminal activity; (4) The owner has a history or practice of non-compliance with the HQS for units leased under the tenant-based programs, or with applicable housing standards for units leased with project-based Section 8 assistance or leased under any other federal housing program; (5) The owner has a history or practice of failing to terminate tenancy of tenants of units assisted under Section 8 or any other federally assisted housing program for activity engaged in by the tenant, any member of the household, a guest or another person under the control of any member of the household that: (i) Threatens the right to peaceful enjoyment of the premises by other residents; (ii) Threatens the health or safety of other residents, of employees of the PHA, or of owner employees or other persons engaged in management of the housing; (iii) Threatens the health or safety of, or the right to peaceful enjoyment of their residences, by persons residing in the immediate vicinity of the premises; or (iv) Is drug-related criminal activity or violent criminal activity; or (6) The owner has a history or practice of renting units that fail to meet State or local housing codes; or (7) The owner has not paid State or local real estate taxes, fines or assessments. (d) The PHA must not approve a unit if the owner is the parent, child, grandparent, grandchild, sister, or brother of any member of the family, unless the PHA determines that approving the unit would provide reasonable accommodation for a family member who is a person with disabilities. This restriction against PHA approval of a unit only applies at the time a family initially receives tenant-based assistance for occupancy of a particular unit, but does not apply to PHA approval of a new tenancy with continued tenant-based assistance in the same unit. (e) Nothing in this rule is intended to give any owner any right to participate in the program. (f) For purposes of this section, “owner” includes a principal or other interested party. [60 FR 34695, July 3, 1995, as amended at 63 FR 27437, May 18, 1998; 64 FR 26644, May 14, 1999; 64 FR 56913, Oct. 21, 1999; 65 FR 16821, Mar. 30, 2000; 72 FR 73496, Dec. 27, 2007] § 982.307 Tenant screening. (a) PHA option and owner responsibility. (2) The owner is responsible for screening and selection of the family to occupy the owner's unit. At or before PHA approval of the tenancy, the PHA must inform the owner that screening and selection for tenancy is the responsibility of the owner. (3) The owner is responsible for screening of families on the basis of their tenancy histories. An owner may consider a family's background with respect to such factors as: (i) Payment of rent and utility bills; (ii) Caring for a unit and premises; (iii) Respecting the rights of other residents to the peaceful enjoyment of their housing; (iv) Drug-related criminal activity or other criminal activity that is a threat to the health, safety or property of others; and (v) Compliance with other essential conditions of tenancy. (b) PHA information about tenant. (i) The family's current and prior address (as shown in the PHA records); and (ii) The name and address (if known to the PHA) of the landlord at the family's current and prior address. (2) When a family wants to lease a dwelling unit, the PHA may offer the owner other information in the PHA possession, about the family, including information about the tenancy history of family members, or about drug-trafficking by family members. (3) The PHA must give the family a statement of the PHA policy on providing information to owners. The statement must be included in the information packet that is given to a family selected to participate in the program. The PHA policy must provide that the PHA will give the same types of information to all families and to all owners. (4) In cases involving a victim 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) applies. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 61 FR 27163, May 30, 1996; 64 FR 26645, May 14, 1999; 64 FR 49658, Sept. 14, 1999; 73 FR 72344, Nov. 28, 2008; 75 FR 66263, Oct. 27, 2010; 81 FR 80816, Nov. 16, 2016] § 982.308 Lease and tenancy. (a) Tenant's legal capacity. (b) Form of lease. (2) If the owner uses a standard lease form for rental to unassisted tenants in the locality or the premises, the lease must be in such standard form (plus the HUD-prescribed tenancy addendum). If the owner does not use a standard lease form for rental to unassisted tenants, the owner may use another form of lease, such as a PHA model lease (including the HUD-prescribed tenancy addendum). The HAP contract prescribed by HUD will contain the owner's certification that if the owner uses a standard lease form for rental to unassisted tenants, the lease is in such standard form. (c) State and local law. (d) Required information. (1) The names of the owner and the tenant; (2) The unit rented (address, apartment number, and any other information needed to identify the contract unit); (3) The term of the lease (initial term and any provisions for renewal); (4) The amount of the monthly rent to owner; and (5) A specification of what utilities and appliances are to be supplied by the owner, and what utilities and appliances are to be supplied by the family. (e) Reasonable rent. (f) Tenancy addendum. (i) The tenancy requirements for the program (in accordance with this section and §§ 982.309 and 982.310); and (ii) The composition of the household as approved by the PHA (family members and any PHA-approved live-in aide). (2) All provisions in the HUD-required tenancy addendum must be added word-for-word to the owner's standard form lease that is used by the owner for unassisted tenants. The tenant shall have the right to enforce the tenancy addendum against the owner, and the terms of the tenancy addendum shall prevail over any other provisions of the lease. (g) Changes in lease or rent. (2) In the following cases, tenant-based assistance shall not be continued unless the PHA has approved a new tenancy in accordance with program requirements and has executed a new HAP contract with the owner: (i) If there are any changes in lease requirements governing tenant or owner responsibilities for utilities or appliances; (ii) If there are any changes in lease provisions governing the term of the lease; (iii) If the family moves to a new unit, even if the unit is in the same building or complex. (3) PHA approval of the tenancy, and execution of a new HAP contract, are not required for changes in the lease other than as specified in paragraph (g)(2) of this section. (4) The owner must notify the PHA of any changes in the amount of the rent to owner at least sixty days before any such changes go into effect, and any such changes shall be subject to rent reasonableness requirements (see § 982.503). [64 FR 26645, May 14, 1999, as amended at 64 FR 56913, Oct. 21, 1999] § 982.309 Term of assisted tenancy. (a) Initial term of lease. (2) The PHA may approve a shorter initial lease term if the PHA determines that: (i) Such shorter term would improve housing opportunities for the tenant; and (ii) Such shorter term is the prevailing local market practice. (3) During the initial term of the lease, the owner may not raise the rent to owner. (4) The PHA may execute the HAP contract even if there is less than one year remaining from the beginning of the initial lease term to the end of the last expiring funding increment under the consolidated ACC. (b) Term of HAP contract. (2) The HAP contract terminates if any of the following occurs: (i) The lease is terminated by the owner or the tenant; (ii) The PHA terminates the HAP contract; or (iii) The PHA terminates assistance for the family. (c) Family responsibility. (2) The family must notify the PHA and the owner before the family moves out of the unit. Failure to do this is a breach of family obligations under the program. [64 FR 26645, May 14, 1999] § 982.310 Owner termination of tenancy. (a) Grounds. (1) Serious violation (including but not limited to failure to pay rent or other amounts due under the lease) or repeated violation of the terms and conditions of the lease; (2) Violation of federal, State, or local law that imposes obligations on the tenant in connection with the occupancy or use of the premises; or (3) Other good cause. (b) Nonpayment by PHA: Not grounds for termination of tenancy. (2) The PHA failure to pay the housing assistance payment to the owner is not a violation of the lease between the tenant and the owner. During the term of the lease the owner may not terminate the tenancy of the family for nonpayment of the PHA housing assistance payment. (c) Criminal activity Evicting drug criminals due to drug crime on or near the premises. (2) Evicting other criminals. Threat to other residents. (A) Any criminal activity that threatens the health, safety, or right to peaceful enjoyment of the premises by other residents (including property management staff residing on the premises); (B) Any criminal activity that threatens the health, safety, or right to peaceful enjoyment of their residences by persons residing in the immediate vicinity of the premises; or (C) Any violent criminal activity on or near the premises by a tenant, household member, or guest, or any such activity on the premises by any other person under the tenant's control. (ii) Fugitive felon or parole violator. (A) Fleeing to avoid prosecution, or custody or confinement after conviction, for a crime, or attempt to commit a crime, that is a felony under the laws of the place from which the individual flees, or that, in the case of the State of New Jersey, is a high misdemeanor; or (B) Violating a condition of probation or parole imposed under Federal or State law. (3) Evidence of criminal activity. (d) Other good cause. (i) Failure by the family to accept the offer of a new lease or revision; (ii) A family history of disturbance of neighbors or destruction of property, or of living or housekeeping habits resulting in damage to the unit or premises; (iii) The owner's desire to use the unit for personal or family use, or for a purpose other than as a residential rental unit; or (iv) A business or economic reason for termination of the tenancy (such as sale of the property, renovation of the unit, or desire to lease the unit at a higher rental). (2) During the initial lease term, the owner may not terminate the tenancy for “other good cause”, unless the owner is terminating the tenancy because of something the family did or failed to do. For example, during this period, the owner may not terminate the tenancy for “other good cause” based on any of the following grounds: failure by the family to accept the offer of a new lease or revision; the owner's desire to use the unit for personal or family use, or for a purpose other than as a residential rental unit; or a business or economic reason for termination of the tenancy (see paragraph (d)(1)(iv) of this section). (e) Owner notice Notice of grounds. (ii) The notice of grounds may be included in, or may be combined with, any owner eviction notice to the tenant. (2) Eviction notice. (ii) The owner must give the PHA a copy of any owner eviction notice to the tenant. (f) Eviction by court action. (g) Regulations not applicable. (h) Termination of tenancy decisions General. (i) The seriousness of the offending action; (ii) The effect on the community of denial or termination or the failure of the owner to take such action; (iii) The extent of participation by the leaseholder in the offending action; (iv) The effect of denial of admission or termination of tenancy on household members not involved in the offending activity; (v) The demand for assisted housing by families who will adhere to lease responsibilities; (vi) The extent to which the leaseholder has shown personal responsibility and taken all reasonable steps to prevent or mitigate the offending action; (vii) The effect of the owner's action on the integrity of the program. (2) Exclusion of culpable household member. (3) Consideration of rehabilitation. (4) Nondiscrimination limitation and protection for victims of domestic violence, dating violence, sexual assault, or stalking. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 64 FR 26645, May 14, 1999; 64 FR 56913, Oct. 21, 1999; 66 FR 28804, May 24, 2001; 73 FR 72344, Nov. 28, 2008; 75 FR 66263, Oct. 27, 2010; 81 FR 80816, Nov. 16, 2016] § 982.311 When assistance is paid. (a) Payments under HAP contract. (b) Termination of payment: When owner terminates the lease. (c) Termination of payment: Other reasons for termination. (1) The lease terminates; (2) The HAP contract terminates; or (3) The PHA terminates assistance for the family. (d) Family move-out. (2) If a participant family moves from an assisted unit with continued tenant-based assistance, the term of the assisted lease for the new assisted unit may begin during the month the family moves out of the first assisted unit. Overlap of the last housing assistance payment (for the month when the family moves out of the old unit) and the first assistance payment for the new unit, is not considered to constitute a duplicative housing subsidy. [60 FR 34695, July 3, 1995, as amended at 80 FR 8246, Feb. 17, 2015] § 982.312 Absence from unit. (a) The family may be absent from the unit for brief periods. For longer absences, the PHA Administrative Plan establishes the PHA policy on how long the family may be absent from the assisted unit. However, the family may not be absent from the unit for a period of more than 180 consecutive calendar days in any circumstance, or for any reason. At its discretion, the PHA may allow absence for a lesser period in accordance with PHA policy. (b) Housing assistance payments terminate if the family is absent for longer than the maximum period permitted. The term of the HAP contract and assisted lease also terminate. (The owner must reimburse the PHA for any housing assistance payment for the period after the termination.) (c) Absence means that no member of the family is residing in the unit. (d)(1) The family must supply any information or certification requested by the PHA to verify that the family is residing in the unit, or relating to family absence from the unit. The family must cooperate with the PHA for this purpose. The family must promptly notify the PHA of absence from the unit, including any information requested on the purposes of family absences. (2) The PHA may adopt appropriate techniques to verify family occupancy or absence, including letters to the family at the unit, phone calls, visits or questions to the landlord or neighbors. (e) The PHA Administrative Plan must state the PHA policies on family absence from the dwelling unit. The PHA absence policy includes: (1) How the PHA determines whether or when the family may be absent, and for how long. For example, the PHA may establish policies on absences because of vacation, hospitalization or imprisonment; and (2) Any provision for resumption of assistance after an absence, including readmission or resumption of assistance to the family. § 982.313 Security deposit: Amounts owed by tenant. (a) The owner may collect a security deposit from the tenant. (b) The PHA may prohibit security deposits in excess of private market practice, or in excess of amounts charged by the owner to unassisted tenants. (c) When the tenant moves out of the dwelling unit, the owner, subject to State or local law, may use the security deposit, including any interest on the deposit, in accordance with the lease, as reimbursement for any unpaid rent payable by the tenant, damages to the unit or for other amounts the tenant owes under the lease. (d) The owner must give the tenant a written list of all items charged against the security deposit, and the amount of each item. After deducting the amount, if any, used to reimburse the owner, the owner must refund promptly the full amount of the unused balance to the tenant. (e) If the security deposit is not sufficient to cover amounts the tenant owes under the lease, the owner may seek to collect the balance from the tenant. § 982.315 Family break-up. (a)(1) The PHA has discretion to determine which members of an assisted family continue to receive assistance in the program if the family breaks up. The PHA Administrative Plan must state PHA policies on how to decide who remains in the program if the family breaks up. (2) If the family break-up results from an occurrence of domestic violence, dating violence, sexual assault, or stalking as provided in 24 CFR part 5, subpart L (Protection for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking), the PHA must ensure that the victim retains assistance. (b) The factors to be considered in making this decision under the PHA policy may include: (1) Whether the assistance should remain with family members remaining in the original assisted unit. (2) The interest of minor children or of ill, elderly, or disabled family members. (3) Whether family members are forced to leave the unit as a result of actual or threatened domestic violence, dating violence, sexual assault, or stalking. (4) Whether any of the family members are receiving protection as victims of domestic violence, dating violence, sexual assault, or stalking, as provided in 24 CFR part 5, subpart L, and whether the abuser is still in the household. (5) Other factors specified by the PHA. (c) If a court determines the disposition of property between members of the assisted family in a divorce or separation under a settlement or judicial decree, the PHA is bound by the court's determination of which family members continue to receive assistance in the program. [60 FR 34695, July 3, 1995, as amended at 75 FR 66264, Oct. 27, 2010; 80 FR 8246, Feb. 17, 2015; 81 FR 80816, Nov. 16, 2016] § 982.316 Live-in aide. (a) A family that consists of one or more elderly, near-elderly or disabled persons may request that the PHA approve a live-in aide to reside in the unit and provide necessary supportive services for a family member who is a person with disabilities. The PHA must approve a live-in aide if needed as a reasonable accommodation in accordance with 24 CFR part 8 to make the program accessible to and usable by the family member with a disability. (See § 982.402(b)(6) concerning effect of live-in aide on family unit size.) (b) At any time, the PHA may refuse to approve a particular person as a live-in aide, or may withdraw such approval, if: (1) The person commits fraud, bribery or any other corrupt or criminal act in connection with any federal housing program; (2) The person commits drug-related criminal activity or violent criminal activity; or (3) The person currently owes rent or other amounts to the PHA or to another PHA in connection with Section 8 or public housing assistance under the 1937 Act. [63 FR 23860, Apr. 30, 1998; 63 FR 31625, June 10, 1998] § 982.317 Lease-purchase agreements. (a) A family leasing a unit with assistance under the program may enter into an agreement with an owner to purchase the unit. So long as the family is receiving such rental assistance, all requirements applicable to families otherwise leasing units under the tenant-based program apply. Any homeownership premium (e.g., increment of value attributable to the value of the lease-purchase right or agreement such as an extra monthly payment to accumulate a downpayment or reduce the purchase price) included in the rent to the owner that would result in a higher subsidy amount than would otherwise be paid by the PHA must be absorbed by the family. (b) In determining whether the rent to owner for a unit subject to a lease-purchase agreement is a reasonable amount in accordance with § 982.503, any homeownership premium paid by the family to the owner must be excluded when the PHA determines rent reasonableness. [65 FR 55162, Sept. 12, 2000] Subpart H—Where Family Can Live and Move Source: 60 FR 34695, July 3, 1995, unless otherwise noted. § 982.351 Overview. This subpart describes what kind of housing is eligible for leasing, and the areas where a family can live with tenant-based assistance. The subpart covers: (a) Assistance for a family that rents a dwelling unit in the jurisdiction of the PHA that originally selected the family for tenant-based assistance. (b) “Portability” assistance for a family PHA rents a unit outside the jurisdiction of the initial PHA. § 982.352 Eligible housing. (a) Ineligible housing. (1) A public housing or Indian housing unit; (2) A unit receiving project-based assistance under section 8 of the 1937 Act (42 U.S.C. 1437f); (3) Nursing homes, board and care homes, or facilities providing continual psychiatric, medical, or nursing services; (4) College or other school dormitories; (5) Units on the grounds of penal, reformatory, medical, mental, and similar public or private institutions; or (6) A unit occupied by its owner or by a person with any interest in the unit. (7) For provisions on PHA disapproval of an owner, see § 982.306. (b) PHA-owned housing. (i) The PHA must inform the family, both orally and in writing, that the family has the right to select any eligible unit available for lease. (ii) A PHA-owned unit is freely selected by the family, without PHA pressure or steering. (iii) The unit selected by the family is not ineligible housing. (iv) During assisted occupancy, the family may not benefit from any form of housing subsidy that is prohibited under paragraph (c) of this section. (v)(A) The PHA must obtain the services of an independent entity, as defined in § 982.4, to perform the following PHA functions as required under the program rule: ( 1 ( 2 ( 3 (B) The PHA may compensate the independent entity from PHA administrative fees (including fees credited to the administrative fee reserve) for the services performed by the independent entity. The PHA may not use other program receipts to compensate the independent entity for such services. The PHA and the independent entity may not charge the family any fee or charge for the services provided by the independent entity. (2) [Reserved] (c) Prohibition against other housing subsidy. (1) Public or Indian housing assistance; (2) Other Section 8 assistance (including other tenant-based assistance); (3) Assistance under former Section 23 of the United States Housing Act of 1937 (before amendment by the Housing and Community Development Act of 1974); (4) Section 101 rent supplements; (5) Section 236 rental assistance payments; (6) Tenant-based assistance under the HOME Program; (7) Rental assistance payments under Section 521 of the Housing Act of 1949 (a program of the Rural Development Administration); (8) Any local or State rent subsidy; (9) Section 202 supportive housing for the elderly; (10) Section 811 supportive housing for persons with disabilities; (11) Section 202 projects for non-elderly persons with disabilities (Section 162 assistance); or (12) Any other duplicative federal, State, or local housing subsidy, as determined by HUD. For this purpose, “housing subsidy” does not include the housing component of a welfare payment, a social security payment received by the family, or a rent reduction because of a tax credit. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 63 FR 23860, Apr. 30, 1998; 64 FR 13057, Mar. 16, 1999; 64 FR 26645, May 14, 1999; 65 FR 55162, Sept. 12, 2000; 88 FR 30503, May 11, 2023; 89 FR 38296, May 7, 2024] § 982.353 Where family can lease a unit with tenant-based assistance. (a) Assistance in the initial PHA jurisdiction. (b) Portability: Assistance outside the initial PHA jurisdiction. (c) Nonresident applicants. (2) The following apply during the 12 month period from the time when a family described in paragraph (c)(1) of this section is admitted to the program: (i) The family may lease a unit anywhere in the jurisdiction of the initial PHA; (ii) The family does not have any right to portability; (iii) The initial PHA may choose to allow portability during this period. (3) If the initial PHA approves, the family may lease a unit outside the PHA jurisdiction under portability procedures. (4) Paragraph (c) of this section does not apply when the family or a member of the family is or has been the victim of domestic violence, dating violence, sexual assault, or stalking, as provided in 24 CFR part 5, subpart L (Protection for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking), and the move is needed to protect the health or safety of the family or family member, or any family member who has been the victim of a sexual assault that occurred on the premises during the 90-calendar-day period preceding the family's request to move. (d) Income eligibility. (2) If a family is a participant in the initial PHA's voucher program, income eligibility is not redetermined when the family moves to the receiving PHA program under portability procedures. (e) Freedom of choice. [60 FR 34695, July 3, 1995, as amended at 61 FR 27163, May 30, 1996; 61 FR 42131, Aug. 13, 1996; 64 FR 26646, May 14, 1999; 73 FR 72344, Nov. 28, 2008; 75 FR 66264, Oct. 27, 2010; 80 FR 50573, Aug. 20, 2015; 81 FR 80816, Nov. 16, 2016] § 982.354 Move with continued tenant-based assistance. (a) Applicability. (b) When family may move. (1) The assisted lease for the old unit has terminated. This includes a termination because: (i) The PHA has terminated the HAP contract for the owner's breach; or (ii) The lease has terminated by mutual agreement of the owner and the tenant. (2) The owner has given the tenant a notice to vacate, or has commenced an action to evict the tenant, or has obtained a court judgment or other process allowing the owner to evict the tenant. (3) The tenant has given notice of lease termination (if the tenant has a right to terminate the lease on notice to the owner, for owner breach, or otherwise). (4) The family or a member of the family, is or has been the victim of domestic violence, dating violence, sexual assault, or stalking, as provided in 24 CFR part 5, subpart L (Protection for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking), and the move is needed to protect the health or safety of the family or family member, or if any family member has been the victim of a sexual assault that occurred on the premises during the 90-calendar-day period preceding the family's request to move. A PHA may not terminate assistance if the family, with or without prior notification to the PHA, moves out of a unit in violation of the lease, if such move occurs to protect the health or safety of a family member who is or has been the victim of domestic violence, dating violence, sexual assault, or stalking and who reasonably believed he or she was threatened with imminent harm from further violence if he or she remained in the dwelling unit. However, any family member that has been the victim of a sexual assault that occurred on the premises during the 90-calendar-day period preceding the family's move or request to move is not required to believe that he or she was threatened with imminent harm from further violence if he or she remained in the dwelling unit. (c) How many moves. (2) Consistent with applicable civil rights laws and regulations, the PHA may establish policies that: (i) Prohibit any move by the family during the initial lease term; (ii) Prohibit more than one move by the family during any one-year period; and (iii) The above policies do not apply when the family or a member of the family is or has been the victim of domestic violence, dating violence, sexual assault, or stalking, as provided in 24 CFR part 5, subpart L, and the move is needed to protect the health or safety of the family or family member, or any family member has been the victim of a sexual assault that occurred on the premises during the 90-calendar-day period preceding the family's request to move. (d) Notice that family wants to move. (e) When the PHA may deny permission to move. (2) At any time, the PHA may deny permission to move in accordance with § 982.552 (grounds for denial or termination of assistance). [60 FR 34695, July 3, 1995, as amended at 64 FR 56913, Oct. 21, 1999; 75 FR 66263, Oct. 27, 2010. Redesignated and amended at 80 FR 50573, Aug. 20, 2015; 81 FR 80817, Nov. 16, 2016] § 982.355 Portability: Administration by initial and receiving PHA. (a) General. (b) Requirement to administer assistance. (c) Portability procedures. (1) When the family decides to use the voucher outside of the PHA jurisdiction, the family must notify the initial PHA of its desire to relocate and must specify the location where it wants to live. (2) The initial PHA must determine the family's eligibility to move in accordance with §§ 982.353 and 982.354. (3) Once the receiving PHA is determined in accordance with paragraph (b) of this section, the initial PHA must contact the receiving PHA, via email or other confirmed delivery method, prior to approving the family's request to move in order to determine whether the voucher will be absorbed or billed by the receiving PHA. The receiving PHA must advise the initial PHA in writing, via email or other confirmed delivery method, of its decision. (4) If the receiving PHA notifies the initial PHA that it will absorb the voucher, the receiving PHA cannot reverse its decision at a later date without consent of the initial PHA. (5) If the receiving PHA will bill the initial PHA for the portability voucher and the cost of the HAP will increase due to the move, the initial PHA may deny the move if it does not have sufficient funding for continued assistance in accordance with § 982.354 (e)(1). (6) If a billing arrangement is approved by the initial PHA or if the voucher is to be absorbed by the receiving PHA, the initial PHA must issue the family a voucher to move, if it has not already done so, and advise the family how to contact and request assistance from the receiving PHA. (7) The initial PHA must promptly notify the receiving PHA to expect the family. The initial PHA must give the receiving PHA the form HUD-52665, the most recent form HUD 50058 (Family Report) for the family, and all related verification information. (8) The family must promptly contact the receiving PHA in order to be informed of the receiving PHA's procedures for incoming portable families and comply with these procedures. The family's failure to comply may result in denial or termination of the receiving PHA's voucher. (9) The receiving PHA does not redetermine eligibility for a participant family. However, for a family that was not already receiving assistance in the PHA's HCV program, the initial PHA must determine whether the family is eligible for admission to the receiving PHA's HCV program. In determining income eligibility, the receiving PHA's income limits are used by the initial PHA. (10) When a receiving PHA assists a family under portability, administration of the voucher must be in accordance with the receiving PHA's policies. This requirement also applies to policies of Moving to Work agencies. The receiving PHA procedures and preferences for selection among eligible applicants do not apply to the family, and the receiving PHA waiting list is not used. (11) If the receiving PHA opts to conduct a new reexamination for a current participant family, the receiving PHA may not delay issuing the family a voucher or otherwise delay approval of a unit. (12) The receiving PHA must determine the family unit size for the family, and base its determination on the subsidy standards of the receiving PHA. (13) The receiving PHA must issue a voucher to the family. The term of the receiving PHA voucher may not expire before 30 calendar days from the expiration date of the initial PHA voucher. If the voucher expires before the family arrives at the receiving PHA, the receiving PHA must contact the initial PHA to determine if it will extend the voucher. (14) Once the receiving PHA issues the portable family a voucher, the receiving PHA's policies on extensions of the voucher term apply. The receiving PHA must notify the initial PHA of any extensions granted to the term of the voucher. (15) The family must submit a request for tenancy approval to the receiving PHA during the term of the receiving PHA voucher. As required in § 982.303, if the family submits a request for tenancy approval during the term of the voucher, the PHA must suspend the term of that voucher. (16) The receiving PHA must promptly notify the initial PHA if the family has leased an eligible unit under the program, or if the family fails to submit a request for tenancy approval for an eligible unit within the term of the voucher. (17) At any time, either the initial PHA or the receiving PHA may make a determination to deny or terminate assistance to the family in accordance with § 982.552 and 982.553. (d) Absorption by the receiving PHA. (2) HUD may require that the receiving PHA absorb all, or a portion of, incoming portable families. Under circumstances described in a notice published in the Federal Register, Federal Register (3) HUD may provide financial or nonfinancial incentives (or both) to PHAs that absorb portability vouchers. (e) Portability billing. (2) The initial PHA must promptly reimburse the receiving PHA for the full amount of the housing assistance payments made by the receiving PHA for the portable family. The amount of the housing assistance payment for a portable family in the receiving PHA program is determined in the same manner as for other families in the receiving PHA program. (3) The initial PHA must promptly reimburse the receiving PHA for the lesser of 80 percent of the initial PHA ongoing administrative fee or 100 percent of the receiving PHA's ongoing administrative fee for each program unit under HAP contract on the first day of the month for which the receiving PHA is billing the initial PHA under this section. If administrative fees are prorated for the HCV program, the proration will apply to the amount of the administrative fee for which the receiving PHA may bill under this section (e.g., the receiving PHA may bill for the lesser of 80 percent of the initial PHA's prorated ongoing administrative fee or 100 percent of the receiving PHA's prorated ongoing administrative fee). If both PHAs agree, the PHAs may negotiate a different amount of reimbursement. (4) When a portable family moves out of the HCV program of a receiving PHA that has not absorbed the family, the PHA in the new jurisdiction to which the family moves becomes the receiving PHA, and the first receiving PHA is no longer required to provide assistance for the family. (5) In administration of portability, the initial PHA and the receiving PHA must comply with financial procedures required by HUD, including the use of HUD-required billing forms. The initial and receiving PHA must also comply with billing and payment deadlines under the financial procedures. (6) A PHA must manage the PHA HCV program in a manner that ensures that the PHA has the financial ability to provide assistance for families that move out of the PHA's program under the portability procedures, and that have not been absorbed by the receiving PHA, as well as for families that remain in the PHA's program. (7) HUD may reduce the administrative fee to an initial or receiving PHA if the PHA does not comply with HUD portability requirements. (f) Portability funding. (2) HUD may provide additional funding (e.g., funds for incremental units) to the initial PHA for funds transferred to a receiving PHA for portability purposes. (3) HUD may provide additional funding (e.g., funds for incremental units) to the receiving PHA for absorption of portable families. (4) HUD may require the receiving PHA to absorb portable families. (g) Special purpose vouchers. (2) Initial and receiving PHAs must administer special purpose vouchers, such as the HUD-Veterans Affairs Supportive Housing vouchers, in accordance with HUD-established policy in cases where HUD has established alternative program requirements of such special purpose vouchers. [80 FR 50573, Aug. 20, 2015] Subpart I—Dwelling Unit: Housing Quality Standards, Subsidy Standards, Inspection and Maintenance Source: 60 FR 34695, July 3, 1995, unless otherwise noted. § 982.401 Housing quality standards. As defined in § 982.4, HQS refers to the minimum quality standards developed by HUD in accordance with 24 CFR 5.703, including any variations approved by HUD for the PHA under 24 CFR 5.705(a)(3). [89 FR 38296, May 7, 2024] § 982.402 Subsidy standards. (a) Purpose. (2) For each family, the PHA determines the appropriate number of bedrooms under the PHA subsidy standards (family unit size). (3) The family unit size number is entered on the voucher issued to the family. The PHA issues the family a voucher for the family unit size when a family is selected for participation in the program. (b) Determining family unit size. (1) The subsidy standards must provide for the smallest number of bedrooms needed to house a family without overcrowding. (2) The subsidy standards must be consistent with space requirements under the HQS (See § 982.401). (3) The subsidy standards must be applied consistently for all families of like size and composition. (4) A child who is temporarily away from the home because of placement in foster care is considered a member of the family in determining the family unit size. (5) A family that consists of a pregnant woman (with no other persons) must be treated as a two-person family. (6) Any live-in aide (approved by the PHA to reside in the unit to care for a family member who is disabled or is at least 50 years of age) must be counted in determining the family unit size; (7) Unless a live-in-aide resides with the family, the family unit size for any family consisting of a single person must be either a zero or one-bedroom unit, as determined under the PHA subsidy standards. (8) In determining family unit size for a particular family, the PHA may grant an exception to its established subsidy standards if the PHA determines that the exception is justified by the age, sex, health, handicap, or relationship of family members or other personal circumstances. (For a single person other than a disabled or elderly person or remaining family member, such PHA exception may not override the limitation in paragraph (b)(7) of this section.) (c) Effect of family unit size-maximum subsidy in voucher program. (1) The payment standard amount for the family unit size; or (2) The payment standard amount for the unit size of the unit rented by the family. (3) Voucher program. (i) The payment standards for the family unit size; or (ii) The payment standard for the unit size rented by the family. (d) Size of unit occupied by family. (2) The family may lease an otherwise acceptable dwelling unit with more bedrooms than the family unit size. However, utility allowances must follow § 982.517(d). [60 FR 34695, July 3, 1995, as amended at 63 FR 23861, Apr. 30, 1998; 64 FR 26646, May 14, 1999; 81 FR 12375, Mar. 8, 2016; 88 FR 30503, May 11, 2023; 89 FR 38296, May 7, 2024; 89 FR 46020, May 28, 2024] § 982.403 Terminating HAP contract when unit is too small. (a) Violation of HQS space standards. (2) If an acceptable unit is available for rental by the family, the PHA must terminate the HAP contract in accordance with its terms. (b) Termination. (1) The PHA must notify the family and the owner of the termination; and (2) The HAP contract terminates at the end of the calendar month that follows the calendar month in which the PHA gives such notice to the owner. (3) The family may move to a new unit in accordance with § 982.354. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 64 FR 26647, May 14, 1999; 80 FR 8246, Feb. 17, 2015; 80 FR 50575, Aug. 20, 2015] § 982.404 Maintenance: Owner and family responsibility; PHA remedies. (a) Owner obligation. (2) If the owner fails to maintain the dwelling unit in accordance with HQS, the PHA must take enforcement action in accordance with this section. (3) If a deficiency is life-threatening, the owner must correct the deficiency within 24 hours of notification. For other deficiencies, the owner must correct the deficiency within 30 calendar days of notification (or any reasonable PHA-approved extension). (4) In the case of an HQS deficiency that the PHA determines is caused by the tenant, any member of the household, or any guest or other person under the tenant's control, other than any damage resulting from ordinary use, the PHA may waive the owner's responsibility to remedy the violation. The HAP to the owner may not be withheld or abated if the owner responsibility has been waived. However, the PHA may terminate assistance to a family because of an HQS breach beyond damage resulting from ordinary use caused by any member of the household or any guest or other person under the tenant's control. (b) Family obligation. (i) The family fails to pay for any utilities that the owner is not required to pay for, but which are to be paid by the tenant; (ii) The family fails to provide and maintain any appliances that the owner is not required to provide, but which are to be provided by the tenant; or (iii) Any member of the household or guest damages the dwelling unit or premises (damages beyond ordinary wear and tear) (2) If the PHA has waived the owner's responsibility to remedy the violation in accordance with paragraph (a)(4) of this section, the following applies: (i) If the HQS breach caused by the family is life-threatening, the family must take all steps permissible under the lease and State and local law to ensure the deficiency is corrected within 24 hours of notification. (ii) For other family-caused deficiencies, the family must take all steps permissible under the lease and State and local law to ensure that the deficiency is corrected within 30 calendar days of notification (or any PHA-approved extension). (3) If the family has caused a breach of the HQS, the PHA must take prompt and vigorous action to enforce the family obligations. The PHA may terminate assistance for the family in accordance with § 982.552. (c) Determination of noncompliance with HQS. (1) The PHA or authorized inspector determines the unit has HQS deficiencies based upon an inspection; (2) The PHA notified the owner in writing of the unit HQS deficiencies; and (3) The unit HQS deficiencies are not corrected in accordance with the timeframes established in paragraph (a)(3) of this section. (d) PHA remedies for HQS deficiencies identified during inspections other than the initial inspection. (1) A PHA may withhold assistance payments for units that have HQS deficiencies once the PHA has notified the owner in writing of the deficiencies. The PHA must identify in its Administrative Plan the conditions under which it will withhold HAP. If the unit is brought into compliance during the applicable cure period (within 24 hours of notification for life-threatening deficiencies and within 30 days of notification (or other reasonable period established by the PHA) for non-life-threatening deficiencies), the PHA: (i) Must resume assistance payments; and (ii) Must provide assistance payments to cover the time period for which the assistance payments were withheld. (2)(i) The PHA must abate the HAP, including amounts that had been withheld, if the owner fails to make the repairs within the applicable cure period (within 24 hours of notification for life-threatening deficiencies and within 30 days of notification (or other reasonable period established by the PHA) for non-life-threatening deficiencies). (ii) If a PHA abates the assistance payments under this paragraph, the PHA must notify the family and the owner that it is abating payments and that if the unit does not meet HQS within 60 days (or a reasonable longer period established by the PHA) after the determination of noncompliance in accordance with paragraph (c) of this section, the PHA will terminate the HAP contract for the unit, and the family will have to move if the family wishes to receive continued assistance. The PHA must issue the family its voucher to move at least 30 days prior to the termination of the HAP contract. (3) An owner may not terminate the tenancy of any family due to the withholding or abatement of assistance under paragraph (a) of this section. During the period that assistance is abated, the family may terminate the tenancy by notifying the owner and the PHA. If the family chooses to terminate the tenancy, the HAP contract will automatically terminate on the effective date of the tenancy termination or the date the family vacates the unit, whichever is earlier. The PHA must promptly issue the family its voucher to move. (4) If the family did not terminate the tenancy and the owner makes the repairs and the unit complies with HQS within 60 days (or a reasonable longer period established by the PHA) of the notice of abatement, the PHA must recommence payments to the owner. The PHA does not make any payments to the owner for the period of time that the payments were abated. (5) If the owner fails to make the repairs within 60 days (or a reasonable longer period established by the PHA) of the notice of abatement, the PHA must terminate the HAP contract. (e) Relocation due to HQS deficiencies. (2) If the family is unable to lease a new unit within the period provided by the PHA under paragraph (e)(1) of this section and the PHA owns or operates public housing, the PHA must offer, and, if accepted, provide the family a selection preference for an appropriate-size public housing unit that first becomes available for occupancy after the time period expires. (3) PHAs may assist families relocating under this paragraph (e) in finding a new unit, including using up to 2 months of the withheld and abated assistance payments for costs directly associated with relocating to a new unit, including security deposits, temporary housing costs, or other reasonable moving costs as determined by the PHA based on their locality. If the PHA uses the withheld and abated assistance payments to assist with the family's relocation costs, the PHA must provide security deposit assistance to the family as necessary. PHAs must assist families with disabilities in locating available accessible units in accordance with 24 CFR 8.28(a)(3). If the family receives security deposit assistance from the PHA for the new unit, the PHA may require the family to remit the security deposit returned by the owner of the new unit at such time that the lease is terminated, up to the amount of the security deposit assistance provided by the PHA for that unit. The PHA must include in its Administrative Plan the policies it will implement for this provision. (f) Applicability. [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 89 FR 38296, May 7, 2024] § 982.405 PHA unit inspection. (a) Initial Inspections. See (b) Periodic Inspections. (c) Supervisory Quality Control Inspections. (d) Interim Inspections. (1) Life-Threatening. (2) Non-Life-Threatening. (3) Extraordinary circumstances. (e) Scheduling inspections. (f) PHA notification of owner. (g) Charge to family for inspection. (h) Charge to owner for inspection. (i) Verification methods. (j) Initial HQS inspection option: No life-threatening deficiencies. (2) The PHA must notify the owner and the family if the NLT option is available for the unit selected by the family. After completing the inspection and determining there are no life-threatening deficiencies, the PHA provides both the owner and the family with a list of all the non-life-threatening deficiencies identified by the initial HQS inspection and, should the owner not complete the repairs within 30 days, the maximum amount of time the PHA will withhold HAP before abating assistance. The PHA must also inform the family that if the family accepts the unit and the owner fails to make the repairs within the cure period, which may not exceed 180 days from the effective date of the HAP contract, the PHA will terminate the HAP contract, and the family will have to move to another unit in order to receive voucher assistance. The family may choose to decline the unit based on the deficiencies and continue its housing search. (3) If the family decides to lease the unit, the PHA and the owner execute the HAP contract, and the family enters into the assisted lease with the owner. The PHA commences making assistance payments to the owner. (4) The owner must correct the deficiencies within 30 days from the effective date of the HAP contract. If the owner fails to correct the deficiencies within the 30-day cure period, the PHA must withhold the housing assistance payments until the owner makes the repairs and the PHA verifies the correction. Once the deficiencies are corrected, the PHA may use the withheld housing assistance payments to make payments for the period that payments were withheld. (5) A PHA relying on the non-life-threatening inspection provision must identify in the PHA Administrative Plan all the optional policies identified in § 982.54(d)(21)(i) and (ii). (6) The PHA establishes in the Administrative Plan: (i) The maximum amount of time it will withhold payments if the owner fails to correct the deficiencies within the required cure period before abating payments; and (ii) The number of days after which the PHA will terminate the HAP contract for the owner's failure to correct the deficiencies, which may not exceed 180 days from the effective date of the HAP contract. (7) The owner may not terminate the tenancy of the family due to the withholding or abatement of assistance under this paragraph (j). During the period that assistance is abated, the family may terminate the tenancy by notifying the owner and the PHA. If the family chooses to terminate the tenancy, the HAP contract will automatically terminate on the effective date of the tenancy termination or the date the family vacates the unit, whichever is earlier. The PHA must promptly issue the family its voucher to move. [89 FR 38298, May 7, 2024, as amended at 90 FR 56687, Dec. 8, 2025] § 982.406 Use of alternative inspections. (a) In general. i.e., (b) Administrative Plan. (c) Eligible inspection methods. (2) If a PHA wishes to rely on an inspection method other than a method listed in paragraph (c)(1) of this section, then, prior to amending its Administrative Plan, the PHA must submit to the Real Estate Assessment Center (REAC) a copy of the inspection method it wishes to use, along with its analysis of the inspection method that shows that the method “provides the same or greater protection to occupants of dwelling units” as would HQS. (i) A PHA may rely upon such alternative inspection method only upon receiving approval from REAC to do so. (ii) A PHA that uses an alternative inspection method approved under this paragraph must monitor changes to the standards and requirements applicable to such method. If any change is made to the alternative inspection method, then the PHA must submit to REAC a copy of the revised standards and requirements, along with a revised comparison to HQS. If the PHA or REAC determines that the revision would cause the alternative inspection to no longer meet or exceed HQS, then the PHA may no longer rely upon the alternative inspection method to comply with the inspection requirement at § 982.405(a) and (b). (d) Use of alternative inspection. (2) In order for a PHA to rely upon the results of an alternative inspection for purposes of an initial or periodic inspection, a property inspected pursuant to such method must meet the standards or requirements regarding housing quality or safety applicable to properties assisted under the program using the alternative inspection method. To make the determination of whether such standards or requirements are met, the PHA must adhere to the following procedures: (i) If a property is inspected under an alternative inspection method, and the property receives a “pass” score, then the PHA may rely on that inspection. (ii) If a property is inspected under an alternative inspection method, and the property receives a “fail” score, then the PHA may not rely on that inspection. (iii) If a property is inspected under an alternative inspection method that does not employ a pass/fail determination—for example, in the case of a program where deficiencies are simply identified—then the PHA must review the list of deficiencies to determine whether any cited deficiency would have resulted in a “fail” score under HQS. If no such deficiency exists, then the PHA may rely on the inspection. If such a deficiency does exist, then the PHA may not rely on the inspection. (3) Under any circumstance described in paragraph (d)(2) of this section in which a PHA is prohibited from relying on an alternative inspection method for a property, the PHA must, within a reasonable period of time, conduct an HQS inspection of any units in the property occupied by voucher program participants and follow HQS procedures to remedy any identified deficiencies. (e) Initial inspections using the alternative inspection option. (2) The PHA notifies the owner and the family that the unit selected by the family is eligible for the alternative inspection option. The PHA must provide the family with the PHA list of HQS deficiencies that are considered life-threatening as part of this notification. If the owner and family agree to the use of this option, the PHA approves the assisted tenancy, allows the family to enter into the lease agreement with the owner, and executes the HAP contract on the basis of the alternative inspection. (3) The PHA must conduct an HQS inspection within 30 days of receiving the Request for Tenancy Approval. If the family reports a deficiency to the PHA prior to the PHA's HQS inspection, the PHA must inspect the unit within the time period required under § 982.405(d) or within 30 days of the effective date of the HAP contract, whichever time period ends first. (4) The PHA must enter into the HAP contract with the owner before conducting the HQS inspection. The PHA may not make housing assistance payments to the owner until the PHA has inspected the unit. (5) The PHA may commence housing assistance payments to the owner and make housing assistance payments retroactive to the effective date of the HAP contract only after the unit passes the PHA's HQS inspection. If the unit does not pass the HQS inspection, the PHA may not make housing assistance payments to the owner until all the deficiencies have been corrected. If a deficiency is life-threatening, the owner must correct the deficiency within 24 hours of notification from the PHA. For other deficiencies, the owner must correct the deficiency within no more than 30 calendar days (or any PHA-approved extension) of notification from the PHA. If the owner corrects the deficiencies within the required cure period, the PHA makes the housing assistance payments retroactive to the effective date of the HAP contract. (6) The PHA establishes in the Administrative Plan: (i) The maximum amount of time it will withhold payments if the owner does not correct the deficiencies within the required cure period before abating payments; and (ii) The number of days after which the PHA will terminate the HAP contract for the owner's failure to correct the deficiencies, which may not exceed 180 days from the effective date of the HAP contract. (7) The owner may not terminate the tenancy of the family due to the withholding or abatement of assistance under this paragraph (e). During the period that assistance is abated, the family may terminate the tenancy by notifying the owner and the PHA. If the family chooses to terminate the tenancy, the HAP contract will automatically terminate on the effective date of the tenancy termination or the date the family vacates the unit, whichever is earlier. The PHA must promptly issue the family its voucher to move. (f) Initial inspection: using the alternative inspection option in combination with the non-life-threatening deficiencies option. (2) The PHA must conduct an HQS inspection within 30 days after the family and owner submit a complete Request for Tenancy Approval. If the family reports a deficiency to the PHA prior to the PHA's HQS inspection, the PHA must inspect the unit within the time period required under § 982.405(d) or within 30 days of the effective date of the HAP contract, whichever time period ends first. (3) The PHA must enter into the HAP contract with the owner before conducting the HQS inspection. The PHA may not make housing assistance payments to the owner until the PHA has inspected the unit. If the unit passes the HQS inspection, the PHA commences making housing assistance payments to the owner and makes payments retroactive to the effective date of the HAP contract. (4) If the unit fails the PHA's HQS inspection but has no life-threatening deficiencies, the PHA commences making housing assistance payments, which are made retroactive to the effective date of the HAP contract. The owner must correct the deficiencies within 30 days from the effective date of the HAP contract. If the owner fails to correct the deficiencies within the 30-day cure period, the PHA must withhold the housing assistance payments until the owner makes the repairs and the PHA verifies the correction. Once the unit is in compliance with HQS, the PHA may use the withheld housing assistance payments to make payments for the period that payments were withheld. (5) If the unit does not pass the HQS inspection and has life-threatening deficiencies, the PHA may not commence making housing assistance payments to the owner until all the deficiencies have been corrected. The owner must correct all life-threatening deficiencies within 24 hours of notification from the PHA. For other deficiencies, the owner must correct the deficiency within 30 days (or any PHA-approved extension) of notification from the PHA. If the owner corrects the deficiencies within the required cure period, the PHA makes the housing assistance payments retroactive to the effective date of the HAP contract. (6) The PHA establishes in the Administrative Plan: (i) The maximum amount of time it will withhold payments if the owner fails to correct the deficiencies within the required cure period before abating payments; and (ii) The number of days after which the PHA will terminate the HAP contract for the owner's failure to correct the deficiencies, which may not exceed 180 days from the effective date of the HAP contract. (7) The owner may not terminate the tenancy of the family due to the withholding or abatement of assistance under this paragraph (f). During the period that assistance is abated, the family may terminate the tenancy by notifying the owner and the PHA. If the family chooses to terminate the tenancy, the HAP contract will automatically terminate on the effective date of the tenancy termination or the date the family vacates the unit, whichever is earlier. The PHA must promptly issue the family its voucher to move. (g) Records retention. As with all other inspection reports, and as required by § 982.158(f)(4), reports for inspections conducted pursuant to an alternative inspection method must be obtained by the PHA. Such reports must be available for HUD inspection for at least three years from the date of the latest inspection. [60 FR 34695, July 3, 1995, as amended at 64 FR 26647, May 14, 1999; 64 FR 56914, Oct. 21, 1999; 81 FR 12375, Mar. 8, 2016; 88 FR 30503, May 11, 2023; 89 FR 38298, May 7, 2024; 90 FR 56687, Dec. 8, 2025] § 982.407 Enforcement of HQS. Part 982 does not create any right of the family, or any party other than HUD or the PHA, to require enforcement of the HQS requirements by HUD or the PHA, or to assert any claim against HUD or the PHA, for damages, injunction or other relief, for alleged failure to enforce the HQS. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 80 FR 8246, Feb. 17, 2015. Redesignated at 81 FR 12375, Mar. 8, 2016] Subpart J—Housing Assistance Payments Contract and Owner Responsibility Source: 60 FR 34695, July 3, 1995, unless otherwise noted. § 982.451 Housing assistance payments contract. Link to an amendment published at 89 FR 38300, May 7, 2024. (a) Form and term. (2) The term of the HAP contract is the same as the term of the lease. (b) Housing assistance payment amount. (2) The monthly housing assistance payment by the PHA is credited toward the monthly rent to owner under the family's lease. (3) The total of rent paid by the tenant plus the PHA housing assistance payment to the owner may not be more than the rent to owner. The owner must immediately return any excess payment to the PHA. (4)(i) The part of the rent to owner that is paid by the tenant may not be more than: (A) The rent to owner; minus (B) The PHA housing assistance payment to the owner. (ii) The owner may not demand or accept any rent payment from the tenant in excess of this maximum, and must immediately return any excess rent payment to the tenant. (iii) The family is not responsible for payment of the portion of rent to owner covered by the housing assistance payment under the HAP contract between the owner and the PHA. See § 982.310(b). (5)(i) The PHA must pay the housing assistance payment promptly when due to the owner in accordance with the HAP contract. (ii)(A) The HAP contract shall provide for penalties against the PHA for late payment of housing assistance payments due to the owner if all the following circumstances apply: ( 1 ( 2 ( 3 (B) The PHA is not obligated to pay any late payment penalty if HUD determines that late payment by the PHA is due to factors beyond the PHA's control. The PHA may add HAP contract provisions which define when the housing assistance payment by the PHA is deemed received by the owner ( e.g., (iii) The PHA may only use the following sources to pay a late payment penalty from program receipts under the consolidated ACC: administrative fee income for the program, or the administrative fee reserve for the program. The PHA may not use other program receipts for this purpose. [60 FR 34695, July 3, 1995, as amended at 61 FR 27163, May 30, 1996; 63 FR 23861, Apr. 30, 1998; 64 FR 26647, May 14, 1999; 64 FR 56914, Oct. 21, 1999; 89 FR 38300, May 7, 2024] § 982.452 Owner responsibilities. (a) The owner is responsible for performing all of the owner's obligations under the HAP contract and the lease. (b) The owner is responsible for: (1) Performing all management and rental functions for the assisted unit, including selecting a voucher-holder to lease the unit, and deciding if the family is suitable for tenancy of the unit. The fact that an applicant is or has been a victim of domestic violence, dating violence, sexual assault, or stalking is not an appropriate basis for denial of tenancy if the applicant otherwise qualifies for tenancy. (2) Maintaining the unit in accordance with HQS, including performance of ordinary and extraordinary maintenance. For provisions on family maintenance responsibilities, see § 982.404(a)(4). (3) Complying with equal opportunity requirements. (4) Preparing and furnishing to the PHA information required under the HAP contract. (5) Collecting from the family: (i) Any security deposit. (ii) The tenant contribution (the part of rent to owner not covered by the housing assistance payment). (iii) Any charges for unit damage by the family. (6) Enforcing tenant obligations under the lease. (7) Paying for utilities and services (unless paid by the family under the lease). (c) For provisions on modifications to a dwelling unit occupied or to be occupied by a disabled person, see 24 CFR 100.203. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 63 FR 23861, Apr. 30, 1998; 64 FR 26647, May 14, 1999; 73 FR 72345, Nov. 28, 2008; 75 FR 66264, Oct. 27, 2010; 80 FR 8246, Feb. 17, 2015; 81 FR 80817, Nov. 16, 2016] § 982.453 Owner breach of contract. (a) Any of the following actions by the owner (including a principal or other interested party) is a breach of the HAP contract by the owner: (1) If the owner has violated any obligation under the HAP contract for the dwelling unit, including the owner's obligation to maintain the unit in accordance with the HQS. (2) If the owner has violated any obligation under any other HAP contract under Section 8 of the 1937 Act (42 U.S.C. 1437f). (3) If the owner has committed fraud, bribery or any other corrupt or criminal act in connection with any federal housing program. (4) For projects with mortgages insured by HUD or loans made by HUD, if the owner has failed to comply with the regulations for the applicable mortgage insurance or loan program, with the mortgage or mortgage note, or with the regulatory agreement; or if the owner has committed fraud, bribery or any other corrupt or criminal act in connection with the mortgage or loan. (5) If the owner has engaged in drug-related criminal activity. (6) If the owner has committed any violent criminal activity. (b) The PHA rights and remedies against the owner under the HAP contract include recovery of overpayments, abatement or other reduction of housing assistance payments, termination of housing assistance payments, and termination of the HAP contract. [60 FR 34695, July 3, 1995, as amended at 64 FR 26647, May 14, 1999; 64 FR 56914, Oct. 21, 1999; 65 FR 16821, Mar. 30, 2000] § 982.454 Termination of HAP contract: Insufficient funding. The PHA may terminate the HAP contract if the PHA determines, in accordance with HUD requirements, that funding under the consolidated ACC is insufficient to support continued assistance for families in the program. [60 FR 34695, July 3, 1995, as amended at 64 FR 26647, May 14, 1999] § 982.455 Automatic termination of HAP contract. The HAP contract terminates automatically 180 calendar days after the last housing assistance payment to the owner. [64 FR 26647, May 14, 1999] § 982.456 Third parties. (a) Even if the family continues to occupy the unit, the PHA may exercise any rights and remedies against the owner under the HAP contract. (b)(1) The family is not a party to or third party beneficiary of the HAP contract. Except as provided in paragraph (b)(2) of this section, the family may not exercise any right or remedy against the owner under the HAP contract. (2) The tenant may exercise any right or remedy against the owner under the lease between the tenant and the owner, including enforcement of the owner's obligations under the tenancy addendum (which is included both in the HAP contract between the PHA and the owner; and in the lease between the tenant and the owner.) (c) The HAP contract shall not be construed as creating any right of the family or other third party (other than HUD) to enforce any provision of the HAP contract, or to assert any claim against HUD, the PHA or the owner under the HAP contract. [60 FR 34695, July 3, 1995, as amended at 64 FR 26647, May 14, 1999] Subpart K—Rent and Housing Assistance Payment Source: 63 FR 23861, Apr. 30, 1998, unless otherwise noted. § 982.501 Overview. This subpart describes program requirements concerning the housing assistance payment and rent to owner under the HCV program. [80 FR 8246, Feb. 17, 2015] § 982.503 Payment standard areas, schedule, and amounts. (a) Payment standard areas. (i) The HUD-published Small Area FMR for: (A) Any metropolitan area designated as a Small Area FMR area by HUD in accordance with 24 CFR 888.113(c)(1). (B) Any area where a PHA has notified HUD that the PHA will voluntarily use SAFMRs in accordance with 24 CFR 888.113(c)(3). (ii) The HUD-published metropolitan FMR for any other metropolitan area. (iii) The HUD-published FMR for any other non-metropolitan county. (2) The PHA must adopt a payment standard schedule that establishes voucher payment standard amounts for each FMR area in the PHA jurisdiction. These payment standard amounts are used to calculate the monthly housing assistance payment for a family (§ 982.505). (3) The PHA may designate payment standard areas within each FMR area. The PHA may establish different payment standard amounts for such designated areas. If the PHA designates payment standard areas, then it must include in its Administrative Plan the criteria used to determine the designated areas and the payment standard amounts for those areas. (i) The PHA may designate payment standard areas within which payment standards will be established according to paragraph (c) (basic range) or paragraph (d) (exception payment standard), of this section. (ii) A PHA-designated payment standard area may be no smaller than a census tract block group. (b) Payment standard schedule. (c) Basic range payment standard amounts. (1) The PHA may establish a payment standard amount within the basic range without HUD approval or prior notification to HUD. (2) The PHA's basic range payment standard amount for each unit size may be based on the same percentage of the published FMR ( i.e., (3) The PHA must revise its payment standard amounts and schedule no later than 3 months following the effective date of the published FMR if revisions are necessary to stay within the basic range. (d) Exception payment standard amounts. (1) The PHA may establish exception payment standard amounts for all units, or for units of a particular size. The exception payment standard may be established for a designated part of the FMR area (called an “exception area”) or for the entire FMR area. The exception area must meet the minimum area requirement at § 982.503(a)(3)(ii). (2) A PHA that is not in a designated Small Area FMR area or has not opted voluntarily to implement Small Area FMRs under 24 CFR 888.113(c)(3) may establish exception payment standards for a ZIP code area that exceed the basic range for the metropolitan area or county FMR as long as the amounts established by the PHA do not exceed 110 percent of the HUD published SAFMR for the applicable ZIP code. The exception payment standard must apply to the entire ZIP code area. If an exception area crosses one or more FMR boundaries, then the maximum exception payment standard amount that a PHA may adopt for the exception area without HUD approval is 110 percent of the ZIP code area with the lowest SAFMR amount. If the PHA qualifies for an exception payment standard above 110 percent of the applicable FMR under paragraph (d)(3) or (4) of this section, it may establish exception payment standards up to the same percentage of the SAFMR for the applicable ZIP code. (3) A PHA may establish exception payment standard amounts between 110 percent and 120 percent of the applicable FMR for such duration as HUD specifies by notice upon notification to HUD that the PHA meets at least one of the following criteria: (i) Fewer than 75 percent of the families to whom the PHA issued tenant-based rental vouchers during the most recent 12-month period for which there is success rate data available have become participants in the voucher program; (ii) More than 40 percent of families with tenant-based rental assistance administered by the agency pay more than 30 percent of adjusted income as the family share; or (iii) Such other criteria as the Secretary establishes by notice. (4) Except as provided in paragraphs (d)(2), (3), and (5) of this section, the PHA must request approval from HUD to establish an exception payment standard amount that exceeds 110 percent of the applicable FMR. In its request to HUD, the PHA must provide rental market data demonstrating that the requested exception payment standard amount is needed for families to access rental units. The rental market data must include a rent estimate for the entire FMR area compared with a rent estimate for the proposed exception area. To apply the exception payment standard to the entire FMR area, the rental market data provided by the PHA must also provide data that demonstrates that the annual percentage of rent inflation in the FMR area is greater than the rental inflation adjustment factor in the calculation of the published FMR. Once HUD has approved the exception payment standard for the requesting PHA, any other PHA with jurisdiction in the HUD approved exception payment standard area may also use the exception payment standard amount. (5) If required as a reasonable accommodation in accordance with 24 CFR part 8 for a person with a disability, the PHA may establish, without HUD approval or prior notification to HUD, an exception payment standard amount for an individual family that does not exceed 120 percent of the applicable FMR. A PHA may establish a payment standard greater than 120 percent of the applicable FMR as a reasonable accommodation for a person with a disability in accordance with 24 CFR part 8, after requesting and receiving HUD approval. (e) Payment standard amount below 90 percent of the applicable FMR. (f) Phaseout of success rate payment standard amounts. (g) Payment standard protection for PHAs that meet deconcentration objectives. (1) Such a PHA may obtain HUD Field Office approval of a payment standard amount based on the 50th percentile rent if the PHA scored the maximum number of points on the deconcentration bonus indicator in 24 CFR 985.3(h) in the prior year, or in two of the last three years. (2) HUD approval of payment standard amounts based on the 50th percentile rent shall be for all unit sizes in the FMR area that had previously been set at the 50th percentile rent pursuant to 24 CFR 888.113(i)(3). A PHA may opt to establish a payment standard amount based on the 50th percentile rent for one or more unit sizes in all or a designated part of the PHA jurisdiction within the FMR area. (h) HUD review of PHA payment standard schedules. (2) After such review, HUD may, at its discretion, require the PHA to modify payment standard amounts for any unit size on the PHA payment standard schedule. HUD may require the PHA to establish an increased payment standard amount within the basic range. [89 FR 38300, May 7, 2024] § 982.504 Payment standard for family in restructured subsidized multifamily project. (a) This section applies to HCV assistance if all the following conditions are applicable: (1) Such HCV assistance is provided to a family pursuant to 24 CFR 401.421 when HUD has approved a restructuring plan, and the participating administrative entity has approved the use of tenant-based assistance to provide continued assistance for such families. Such tenant-based voucher assistance is provided for a family previously receiving project-based assistance in an eligible project (as defined in § 401.2 of this title) at the time when the project-based assistance terminates. (2) The family chooses to remain in the restructured project with HCV assistance under the program and leases a unit that does not exceed the family unit size; (3) The lease for such assisted tenancy commences during the first year after the project-based assistance terminates. (b) The initial payment standard for the family under such initial lease is the sum of the reasonable rent to owner for the unit plus the utility allowance for tenant-paid utilities. (Determination of such initial payment standard for the family is not subject to paragraphs (c)(1) and (c)(2) of § 982.505. Except for determination of the initial payment standard as specifically provided in paragraph (b) of this section, the payment standard and housing assistance payment for the family during the HAP contract term shall be determined in accordance with § 982.505.) [64 FR 26649, May 14, 1999, as amended at 80 FR 8247, Feb. 17, 2015] § 982.505 How to calculate housing assistance payment. (a) Use of payment standard. (b) Amount of monthly housing assistance payment. lower (1) The payment standard for the family minus the total tenant payment; or (2) The gross rent minus the total tenant payment. (c) Payment standard for family—(1) Applying the payment standard. (i) The payment standard amount for the family unit size; or (ii) The payment standard amount for the size of the dwelling unit rented by the family. (2) Separate payment standards. (3) Decrease in the payment standard amount during the HAP contract term. (i) If the PHA chooses to reduce the payment standard amount used to calculate such a family's subsidy in accordance with its Administrative Plan, then the initial reduction to the family's payment standard amount may not be applied any earlier than two years following the effective date of the decrease in the payment standard, and then only if the family has received the notice required under paragraph (c)(3)(iii) of this section. (ii) The PHA may choose to reduce the payment standard amount for the family to the current payment standard amount in effect on the PHA voucher payment standard schedule, or it may reduce the payment standard amount to an amount that is higher than the normally applicable payment standard amount on the PHA voucher payment standard schedule. After an initial reduction, the PHA may further reduce the payment standard amount for the family during the time the family resides in the unit, provided any subsequent reductions continue to result in a payment standard amount that meets or exceeds the normally applicable payment standard amount on the PHA voucher payment standard schedule. (iii) The PHA must provide the family with at least 12 months' written notice of any reduction in the payment standard amount that will affect the family if the family remains in place. In the written notice, the PHA must state the new payment standard amount, explain that the family's new payment standard amount will be the greater of the amount listed in the current written notice or the new amount (if any) on the PHA's payment standard schedule at the end of the 12-month period, and make clear where the family will find the PHA's payment standard schedule. (iv) The PHA must administer decreases in the payment standard amount for the family in accordance with the PHA policy as described in the PHA Administrative Plan. (4) Increase in the payment standard amount during the HAP contract term. (i) The effective date of an increase in the gross rent that would result in an increase in the family share; (ii) The family's first regular or interim reexamination; or (iii) One year following the effective date of the increase in the payment standard amount. (5) PHA policy on payment standard increases. (6) Changes in family unit size during the HAP contract term. [64 FR 26649, May 14, 1999, as amended at 64 FR 56914, Oct. 21, 1999; 65 FR 16822, Mar. 30, 2000; 65 FR 42509, July 10, 2000; 66 FR 30568, June 6, 2001; 67 FR 56689, Sept. 4, 2002; 80 FR 8247, Feb. 17, 2014; 81 FR 12376, Mar. 8, 2016; 81 FR 80582, Nov. 16, 2016; 89 FR 38302, May 7, 2024] § 982.506 Negotiating rent to owner. The owner and the family negotiate the rent to owner. At the family's request, the PHA must help the family negotiate the rent to owner. [63 FR 23861, Apr. 30, 1998. Redesignated at 64 FR 26648, May 14, 1999] § 982.507 Rent to owner: Reasonable rent. (a) PHA determination. (2) The PHA must redetermine the reasonable rent: (i) Before any increase in the rent to owner; (ii) If there is a 10 percent decrease in the published FMR in effect 60 days before the contract anniversary (for the unit size rented by the family) as compared with the FMR in effect 1 year before the contract anniversary. (iii) If directed by HUD. (3) The PHA may also redetermine the reasonable rent at any other time. (4) At all times during the assisted tenancy, the rent to owner may not exceed the reasonable rent as most recently determined or redetermined by the PHA. (b) Comparability. (1) The location, quality, size, unit type, and age of the contract unit; and (2) Any amenities, housing services, maintenance and utilities to be provided by the owner in accordance with the lease. (c) Units assisted by low-income housing tax credits or assistance under HUD's HOME Investment Partnerships (HOME) program. General. (2) LIHTC. (i) Reasonable rent; and (ii) The payment standard established by the PHA for the unit size involved. (3) HOME program. (i) Reasonable rent; and (ii) The payment standard established by the PHA for the unit size involved. (d) Owner certification of rents charged for other units. [63 FR 23861, Apr. 30, 1998. Redesignated at 64 FR 26648, May 14, 1999; 79 FR 36164, June 25, 2014; 81 FR 80583, Nov. 16, 2016; 90 FR 894, Jan. 6, 2025; 90 FR 8780, Feb. 3, 2025] § 982.508 Maximum family share at initial occupancy. At the time the PHA approves a tenancy for initial occupancy of a dwelling unit by a family with tenant-based assistance under the program, and where the gross rent of the unit exceeds the applicable payment standard for the family, the family share must not exceed 40 percent of the family's adjusted monthly income. The determination of adjusted monthly income must be based on verification information received by the PHA no earlier than 60 days before the PHA issues a voucher to the family. [64 FR 59622, Nov. 3, 1999] § 982.509 Rent to owner: Effect of rent control. In addition to the rent reasonableness limit under this subpart, the amount of rent to owner also may be subject to rent control limits under State or local law. [63 FR 23861, Apr. 30, 1998. Redesignated and amended at 64 FR 26648, May 14, 1999] § 982.510 Other fees and charges. (a) The cost of meals or supportive services may not be included in the rent to owner, and the value of meals or supportive services may not be included in the calculation of reasonable rent. (b) The lease may not require the tenant or family members to pay charges for meals or supportive services. Non-payment of such charges is not grounds for termination of tenancy. (c) The owner may not charge the tenant extra amounts for items customarily included in rent in the locality, or provided at no additional cost to unsubsidized tenants in the premises. [63 FR 23861, Apr. 30, 1998. Redesignated at 64 FR 26648, May 14, 1999] § 982.514 Distribution of housing assistance payment. The monthly housing assistance payment is distributed as follows: (a) The PHA pays the owner the lesser of the housing assistance payment or the rent to owner. (b) If the housing assistance payment exceeds the rent to owner, the PHA may pay the balance of the housing assistance payment (“utility reimbursement”) either to the family or directly to the utility supplier to pay the utility bill on behalf of the family. If the PHA elects to pay the utility supplier directly, the PHA must notify the family of the amount paid to the utility supplier. (c) The PHA may elect to establish policies regarding the frequency of utility reimbursement payments for payments made to the family. (1) 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 would be required to reimburse the family for a prorated share of the applicable reimbursement. PHAs exercising this option must have a hardship policy in place for tenants. (2) If the PHA elects to pay the utility supplier directly, the PHA must notify the family of the amount paid to the utility supplier. [63 FR 23861, Apr. 30, 1998, as amended at 64 FR 56914, Oct. 21, 1999; 65 FR 16822, Mar. 30, 2000; 81 FR 12376, Mar. 8, 2016] § 982.515 Family share: Family responsibility. (a) The family share is calculated by subtracting the amount of the housing assistance payment from the gross rent. (b) The family rent to owner is calculated by subtracting the amount of the housing assistance payment to the owner from the rent to owner. (c) The PHA may not use housing assistance payments or other program funds (including any administrative fee reserve) to pay any part of the family share, including the family rent to owner. Payment of the whole family share is the responsibility of the family. [63 FR 23861, Apr. 30, 1998, as amended at 64 FR 56915, Oct. 21, 1999] § 982.516 Family income and composition: Annual and interim examinations. (a) PHA responsibility for reexamination and verification. (2) Except as provided in paragraph (a)(3) of this section, the PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available: (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. (3) 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. (b) 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 fixed-income sources, 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. (c) 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 through 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, unless the family has previously received an interim reduction under paragraph (c)(1) of this section during the certification period; and (ii) The PHA may choose not to conduct an interim reexamination in the last three months of a certification period. (4) 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 family share and family rent to owner increases retroactively to the first of the month following the date of the change leading to the interim reexamination of family income. Any resulting family share and family rent to owner decrease must be implemented no later than the first rent period following completion of the reexamination. However, a PHA may apply a family share and family rent to owner decrease retroactively at the discretion of the PHA, in accordance with the conditions established by the PHA in the Administrative Plan and subject to paragraph (c)(4)(iii) of this section. (iii) A retroactive family share and family rent to owner decrease may not be applied 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). (d) Family reporting of change. (e) Effective date of reexamination. (2) At the effective date of a regular or interim reexamination, the PHA must make appropriate adjustments in the housing assistance payment in accordance with § 982.505. (f) Accuracy of family income data. (1) The PHA must take any corrective action necessary to credit or repay a family if the family has been overcharged for their rent or family share 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. (2) HUD may revise the amount of de minimis error in this paragraph (f) through a rulemaking published in the Federal Register (g) Execution of release and consent. (2) The PHA and HUD must limit the use or disclosure of information obtained from a family or from another source pursuant to this release and consent to purposes directly in connection with administration of the program. (h) 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). (Information collection requirements contained in this section have been approved by the Office of Management and Budget under control number 2577-0169.) [63 FR 23861, Apr. 30, 1998, as amended at 64 FR 13057, Mar. 16, 1999; 64 FR 26649, May 14, 1999; 64 FR 56915, Oct. 21, 1999; 65 FR 16822, Mar. 30, 2000; 80 FR 8247, Feb. 17, 2015; 81 FR 12376, Mar. 8, 2016; 82 FR 58341, Dec. 12, 2017; 85 FR 27139, May 7, 2020; 88 FR 9675, Feb. 14, 2023; 90 FR 56687, Dec. 8, 2025] § 982.517 Utility allowance schedule. (a) Maintaining schedule. (2) The PHA must provide a copy of the utility allowance schedule to HUD. At HUD's request, the PHA also must provide any information or procedures used in preparation of the schedule. (b) How allowances are determined. Federal Register (ii) In the utility allowance schedule, the PHA must classify utilities and other housing services according to the following general categories: space heating; air conditioning; cooking; water heating; water; sewer; trash collection (disposal of waste and refuse); other electric; refrigerator (cost of tenant-supplied refrigerator); range (cost of tenant-supplied range); applicable surcharges; and other specified housing services. (iii) The PHA must provide a utility allowance for tenant-paid air-conditioning costs if the majority of housing units in the market provide centrally air-conditioned units or there is appropriate wiring for tenant-installed air conditioners. (iv) The PHA may not provide any allowance for non-essential utility costs, such as costs of cable or satellite television. (2)(i) The PHA must maintain an area-wide utility allowance schedule. The area-wide utility allowance schedule must be determined based on the typical cost of utilities and services paid by energy-conservative households that occupy housing of similar size and type in the same locality. In developing the schedule, the PHA must use normal patterns of consumption for the community as a whole and current utility rates. (ii) The PHA may maintain an area-wide, energy-efficient utility allowance schedule to be used for units that are in a building that meets Leadership in Energy and Environmental Design (LEED) or Energy Star standards. HUD may subsequently identify additional Energy Savings Design standards or criteria for applying the allowance to retrofitted units in a building that does not meet the standard, which will be modified or added through a document published in the Federal Register (iii) The PHA may base its utility allowance payments on actual flat fees charged by an owner for utilities that are billed directly by the owner, but only if the flat fee charged by the owner is no greater than the PHA's applicable utility allowance for the utilities covered by the fee. If an owner charges a flat fee for only some of the utilities, then the PHA must pay a separate allowance for any tenant-paid utilities that are not covered in the flat fee. (iv) For tenant-based participants residing in units within a project that has an approved project-specific utility allowance under § 983.301(f)(4), the PHA must use the project-specific utility allowance schedule (see 24 CFR 983.301(f)(4)). (v) The PHA must state its policy for utility allowance payments in its Administrative Plan and apply it consistently to all similarly situated households. (c) Revisions of utility allowance schedule. (2) At HUD's direction, the PHA must revise the utility allowance schedule to correct any errors, or as necessary to update the schedule. (d) Use of utility allowance schedule. (e) Higher utility allowance as reasonable accommodation for a person with disabilities. (Information collection requirements contained in this section have been approved by the Office of Management and Budget under control number 2577-0169.) [63 FR 23861, Apr. 30, 1998, as amended at 80 FR 8247, Feb. 17, 2015; 81 FR 12377, Mar. 8, 2016; 89 FR 38302, May 7, 2024] § 982.521 Rent to owner in subsidized project. (a) Applicability to subsidized project. (1) An insured or non-insured Section 236 project; (2) A Section 202 project; (3) A Section 221(d)(3) below market interest rate (BMIR) project; or (4) A Section 515 project of the Rural Development Administration. (b) How rent to owner is determined. [65 FR 16822, Mar. 30, 2000, as amended at 80 FR 8247, Feb. 17, 2015] Subpart L—Family Obligations; Denial and Termination of Assistance Source: 60 FR 34695, July 3, 1995, unless otherwise noted. § 982.551 Obligations of participant. (a) Purpose. (b) Supplying required information (2) The family must supply any information requested by the PHA or HUD for use in a regularly scheduled reexamination or interim reexamination of family income and composition in accordance with HUD requirements. (3) The family must disclose and verify social security numbers (as provided by part 5, subpart B, of this title) and must sign and submit consent forms for obtaining information in accordance with part 5, subpart B, of this title. (4) Any information supplied by the family must be true and complete. (c) HQS breach caused by family. (d) Allowing PHA inspection. (e) Violation of lease. (f) Family notice of move or lease termination. (g) Owner eviction notice. (h) Use and occupancy of unit (2) The composition of the assisted family residing in the unit must be approved by the PHA. 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. No other person [i.e., nobody but members of the assisted family] may reside in the unit (except for a foster child or live-in aide as provided in paragraph (h)(4) of this section). (3) The family must promptly notify the PHA if any family member no longer resides in the unit. (4) If the PHA has given approval, a foster child or a live-in-aide may reside in the unit. The PHA has the discretion to adopt reasonable policies concerning residence by a foster child or a live-in-aide, and defining when PHA consent may be given or denied. (5) Members of the household may engage in legal profitmaking activities in the unit, but only if such activities are incidental to primary use of the unit for residence by members of the family. (6) The family must not sublease or let the unit. (7) The family must not assign the lease or transfer the unit. (i) Absence from unit. (j) Interest in unit. (k) Fraud and other program violation. (l) Crime by household members. (m) Alcohol abuse by household members. (n) Other housing assistance. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 61 FR 11119, Mar. 18, 1996; 61 FR 13627, Mar. 27, 1996; 61 FR 27163, May 30, 1996; 64 FR 26650, May 14, 1999; 66 FR 28805, May 24, 2001; 73 FR 72345, Nov. 28, 2008; 75 FR 66264, Oct. 27, 2010; 80 FR 50575, Aug. 20, 2015; 81 FR 80817, Nov. 16, 2016] § 982.552 PHA denial or termination of assistance for family. (a) Action or inaction by family. (2) Denial of assistance for an applicant may include any or all of the following: denying listing on the PHA waiting list, denying or withdrawing a voucher, refusing to enter into a HAP contract or approve a lease, and refusing to process or provide assistance under portability procedures. (3) Termination of assistance for a participant may include any or all of the following: refusing to enter into a HAP contract or approve a lease, terminating housing assistance payments under an outstanding HAP contract, and refusing to process or provide assistance under portability procedures. (4) This section does not limit or affect exercise of the PHA rights and remedies against the owner under the HAP contract, including termination, suspension or reduction of housing assistance payments, or termination of the HAP contract. (b) Requirement to deny admission or terminate assistance. (2) The PHA must terminate program assistance for a family evicted from housing assisted under the program for serious violation of the lease. (3) The PHA must deny admission to the program for an applicant, or terminate program assistance for a participant, if any member of the family fails to sign and submit consent forms for obtaining information in accordance with part 5, subparts B and F of this title. (4) The family must submit required evidence of citizenship or eligible immigration status. See part 5 of this title for a statement of circumstances in which the PHA must deny admission or terminate program assistance because a family member does not establish citizenship or eligible immigration status, and the applicable informal hearing procedures. (5) The PHA must deny or terminate assistance if any family member fails to meet the eligibility requirements concerning individuals enrolled at an institution of higher education as specified in 24 CFR 5.612. (6) The PHA must deny or terminate assistance based on the restrictions on net assets and property ownership when required by § 5.618 of this title. (c) Authority to deny admission or terminate assistance Grounds for denial or termination of assistance. (i) If the family violates any family obligations under the program (see § 982.551). See § 982.553 concerning denial or termination of assistance for crime by family members. (ii) If any member of the family has been evicted from federally assisted housing in the last five years; (iii) If a PHA has ever terminated assistance under the program for any member of the family. (iv) If any member of the family has committed fraud, bribery, or any other corrupt or criminal act in connection with any Federal housing program (see also § 982.553(a)(1)); (v) If the family currently owes rent or other amounts to the PHA or to another PHA in connection with Section 8 or public housing assistance under the 1937 Act. (vi) If the family has not reimbursed any PHA for amounts paid to an owner under a HAP contract for rent, damages to the unit, or other amounts owed by the family under the lease. (vii) If the family breaches an agreement with the PHA to pay amounts owed to a PHA, or amounts paid to an owner by a PHA. (The PHA, at its discretion, may offer a family the opportunity to enter an agreement to pay amounts owed to a PHA or amounts paid to an owner by a PHA. The PHA may prescribe the terms of the agreement.) (viii) If the family has engaged in or threatened abusive or violent behavior toward PHA personnel. (ix) If a welfare-to-work (WTW) family fails, willfully and persistently, to fulfill its obligations under the welfare-to-work voucher program. (x) If the family has been engaged in criminal activity or alcohol abuse as described in § 982.553. (2) Consideration of circumstances. (i) The PHA may consider all relevant circumstances such as the seriousness of the case, the extent of participation or culpability of individual family members, mitigating circumstances related to the disability of a family member, and the effects of denial or termination of assistance on other family members who were not involved in the action or failure. (ii) The PHA may impose, as a condition of continued assistance for other family members, a requirement that other family members who participated in or were culpable for the action or failure will not reside in the unit. The PHA may permit the other members of a participant family to continue receiving assistance. (iii) In determining whether to deny admission or terminate assistance for illegal use of drugs or alcohol abuse by a household member who is no longer engaged in such behavior, the PHA may consider whether such household member is participating in or has successfully completed a supervised drug or alcohol rehabilitation program, or has otherwise been rehabilitated successfully (42 U.S.C. 13661). For this purpose, the PHA may require the applicant or tenant to submit evidence of the household member's current participation in, or successful completion of, a supervised drug or alcohol rehabilitation program or evidence of otherwise having been rehabilitated successfully. (iv) If the family includes a person with disabilities, the PHA decision concerning such action is subject to consideration of reasonable accommodation in accordance with part 8 of this title. (v) Nondiscrimination limitation and protection for victims of domestic violence, dating violence, sexual assault, or stalking. (d) Information for family. (1) Family obligations under the program. (2) The grounds on which the PHA may deny or terminate assistance because of family action or failure to act. (3) The PHA informal hearing procedures. (e) Applicant screening. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995] Editorial Note: For Federal Register www.govinfo.gov. § 982.553 Denial of admission and termination of assistance for criminals and alcohol abusers. (a) Denial of admission Prohibiting admission of drug criminals. must (A) That the evicted household member who engaged in drug-related criminal activity has successfully completed a supervised drug rehabilitation program approved by the PHA; or (B) That the circumstances leading to eviction no longer exist (for example, the criminal household member has died or is imprisoned). (ii) The PHA must establish standards that prohibit admission if: (A) The PHA determines that any household member is currently engaging in illegal use of a drug; (B) The PHA determines that it has reasonable cause to believe that a household member's illegal drug use or a pattern of illegal drug use may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents; or (C) Any household member has ever been convicted of drug-related criminal activity for manufacture or production of methamphetamine on the premises of federally assisted housing. (2) Prohibiting admission of other criminals—(i) Mandatory prohibition. must (ii) Permissive prohibitions. may (1) Drug-related criminal activity; (2) Violent criminal activity; (3) Other criminal activity which may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents or persons residing in the immediate vicinity; or (4) Other criminal activity which may threaten the health or safety of the owner, property management staff, or persons performing a contract administration function or responsibility on behalf of the PHA (including a PHA employee or a PHA contractor, subcontractor or agent). (B) The PHA may establish a period before the admission decision during which an applicant must not have engaged in the activities specified in paragraph (a)(2)(i) of this section (“reasonable time”). (C) If the PHA previously denied admission to an applicant because a member of the household engaged in criminal activity, the PHA may reconsider the applicant if the PHA has sufficient evidence that the members of the household are not currently engaged in, and have not engaged in, such criminal activity during a reasonable period, as determined by the PHA, before the admission decision. (1) The PHA would have “sufficient evidence” if the household member submitted a certification that she or he is not currently engaged in and has not engaged in such criminal activity during the specified period and provided supporting information from such sources as a probation officer, a landlord, neighbors, social service agency workers and criminal records, which the PHA verified. (2) For purposes of this section, a household member is “currently engaged in” criminal activity if the person has engaged in the behavior recently enough to justify a reasonable belief that the behavior is current. (3) Prohibiting admission of alcohol abusers. (b) Terminating assistance Terminating assistance for drug criminals. must (A) Any household member is currently engaged in any illegal use of a drug; or (B) A pattern of illegal use of a drug by any household member interferes with the health, safety, or right to peaceful enjoyment of the premises by other residents. (ii) The PHA must immediately terminate assistance for a family under the program if the PHA determines that any member of the household has ever been convicted of drug-related criminal activity for manufacture or production of methamphetamine on the premises of federally assisted housing. (iii) The PHA must establish standards that allow the PHA to terminate assistance under the program for a family if the PHA determines that any family member has violated the family's obligation under § 982.551 not to engage in any drug-related criminal activity. (2) Terminating assistance for other criminals. (3) Terminating assistance for alcohol abusers. (c) Evidence of criminal activity. (d) Use of criminal record Denial. (2) Termination of assistance. (3) Cost of obtaining criminal record. (e) The requirements in 24 CFR part 5, subpart L (Protection for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking) apply to this section. [66 FR 28805, May 24, 2001, as amended at 73 FR 72345, Nov. 28, 2008; 75 FR 66264, Oct. 27, 2010; 80 FR 8247, Feb. 17, 2015; 81 FR 80817, Nov. 16, 2016] § 982.554 Informal review for applicant. (a) Notice to applicant. (b) Informal review process. (1) The review may be conducted by any person or persons designated by the PHA, other than a person who made or approved the decision under review or a subordinate of this person. (2) The applicant must be given an opportunity to present written or oral objections to the PHA decision. (3) The PHA must notify the applicant of the PHA final decision after the informal review, including a brief statement of the reasons for the final decision. (c) When informal review is not required. (1) Discretionary administrative determinations by the PHA. (2) General policy issues or class grievances. (3) A determination of the family unit size under the PHA subsidy standards. (4) A PHA determination not to approve an extension of the voucher term. (5) A PHA determination not to grant approval of the tenancy. (6) An PHA determination that a unit selected by the applicant is not in compliance with HQS. (7) An PHA determination that the unit is not in accordance with HQS because of the family size or composition. (d) Restrictions on assistance for noncitizens. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 61 FR 13627, Mar. 27, 1996; 64 FR 26650, May 14, 1999; 80 FR 50575, Aug. 20, 2015] § 982.555 Informal hearing for participant. (a) When hearing is required. (i) A determination of the family's annual or adjusted income, and the use of such income to compute the housing assistance payment. (ii) A determination of the appropriate utility allowance (if any) for tenant-paid utilities from the PHA utility allowance schedule. (iii) A determination of the family unit size under the PHA subsidy standards. (iv) A determination to terminate assistance for a participant family because of the family's action or failure to act (see § 982.552). (v) A determination to terminate assistance because the participant family has been absent from the assisted unit for longer than the maximum period permitted under PHA policy and HUD rules. (2) In the cases described in paragraphs (a)(1) (iv), (v) and (vi) of this section, the PHA must give the opportunity for an informal hearing before the PHA terminates housing assistance payments for the family under an outstanding HAP contract. (b) When hearing is not required. (1) Discretionary administrative determinations by the PHA. (2) General policy issues or class grievances. (3) Establishment of the PHA schedule of utility allowances for families in the program. (4) A PHA determination not to approve an extension of the voucher term. (5) A PHA determination not to approve a unit or tenancy. (6) A PHA determination that an assisted unit is not in compliance with HQS. (However, the PHA must provide the opportunity for an informal hearing for a decision to terminate assistance for a breach of the HQS caused by the family as described in § 982.551(c).) (7) A PHA determination that the unit is not in accordance with HQS because of the family size. (8) A determination by the PHA to exercise or not to exercise any right or remedy against the owner under a HAP contract. (c) Notice to family. (2) In the cases described in paragraphs (a)(1) (iv), (v) and (vi) of this section, the PHA must give the family prompt written notice that the family may request a hearing. The notice must: (i) Contain a brief statement of reasons for the decision, (ii) State that if the family does not agree with the decision, the family may request an informal hearing on the decision, and (iii) State the deadline for the family to request an informal hearing. (d) Expeditious hearing process. (e) Hearing procedures Administrative Plan. (2) Discovery By family. (ii) By PHA. (iii) Documents. (3) Representation of family. (4) Hearing officer: Appointment and authority. (ii) The person who conducts the hearing may regulate the conduct of the hearing in accordance with the PHA hearing procedures. (5) Evidence. (6) Issuance of decision. (f) Effect of decision. (1) Concerning a matter for which the PHA is not required to provide an opportunity for an informal hearing under this section, or that otherwise exceeds the authority of the person conducting the hearing under the PHA hearing procedures. (2) Contrary to HUD regulations or requirements, or otherwise contrary to federal, State, or local law. (3) If the PHA determines that it is not bound by a hearing decision, the PHA must promptly notify the family of the determination, and of the reasons for the determination. (g) Restrictions on assistance to noncitizens. (Approved by the Office of Management and Budget under control number 2577-0169) [60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 61 FR 13627, Mar. 27, 1996; 64 FR 26650, May 14, 1999; 65 FR 16823, Mar. 30, 2000; 80 FR 8247, Feb. 17, 2015; 80 FR 50575, Aug. 20, 2015] Subpart M—Special Housing Types Source: 63 FR 23865, Apr. 30, 1998, unless otherwise noted. § 982.601 Overview. (a) Special housing types. (1) Single room occupancy (SRO) housing; (2) Congregate housing; (3) Group home; (4) Shared housing; (5) Manufactured home; (6) Cooperative housing (excluding families that are not cooperative members); and (7) Homeownership option. (b) PHA choice to offer special housing type. (2) In general, the PHA is not required to permit families (including families that move into the PHA program under portability procedures) to use any of these special housing types, and may limit the number of families using special housing types. (3) The PHA must permit use of any special housing type if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities in accordance with 24 CFR part 8. (4) For occupancy of a manufactured home, see § 982.620(a). (c) Program funding for special housing types. (2) The PHA may not set aside program funding or program slots for special housing types or for a specific special housing type. (d) Family choice of housing and housing type. (e) Applicability of requirements. (2) Provisions in this subpart only apply to a specific special housing type. The housing type is noted in the title of each section. (3) Housing must meet the requirements of this subpart for a single special housing type specified by the family. Such housing is not subject to requirements for other special housing types. A single unit cannot be designated as more than one special housing type. [63 FR 23865, Apr. 30, 1998, as amended at 65 FR 55162, Sept. 12, 2000; 67 FR 64493, Oct. 18, 2002; 80 FR 8247, Feb. 17, 2015] Single Room Occupancy (SRO) § 982.602 SRO: Who may reside in an SRO? A single person may reside in an SRO housing unit. [64 FR 26650, May 14, 1999] § 982.603 SRO: Lease and HAP contract. For SRO housing, there is a separate lease and HAP contract for each assisted person. § 982.604 SRO: Voucher housing assistance payment. (a) For a person residing in SRO housing, the payment standard is 75 percent of the zero-bedroom payment standard amount on the PHA payment standard schedule. For a person residing in SRO housing in an exception area, the payment standard is 75 percent of the HUD-approved zero-bedroom exception payment standard amount. (b) The utility allowance for an assisted person residing in SRO housing is 75 percent of the zero bedroom utility allowance. [64 FR 26650, May 14, 1999] § 982.605 SRO: Housing quality standards. (a) HQS standards for SRO. (b) Performance requirements. (2) Sanitary facilities, and space and security characteristics must meet local code standards for SRO housing. In the absence of applicable local code standards for SRO housing, the following standards apply: (i) Sanitary facilities. (B) If SRO units are leased only to males, flush urinals may be substituted for not more than one-half the required number of flush toilets. However, there must be at least one flush toilet in the building. (C) Every lavatory basin and bathtub or shower must be supplied at all times with an adequate quantity of hot and cold running water. (D) All of these facilities must be in proper operating condition, and must be adequate for personal cleanliness and the disposal of human waste. The facilities must utilize an approvable public or private disposal system. (E) Sanitary facilities must be reasonably accessible from a common hall or passageway to all persons sharing them. These facilities may not be located more than one floor above or below the SRO unit. Sanitary facilities may not be located below grade unless the SRO units are located on that level. (ii) Space and security. (B) An SRO unit must contain at least one hundred ten square feet of floor space. (C) An SRO unit must contain at least four square feet of closet space for each resident (with an unobstructed height of at least five feet). If there is less closet space, space equal to the amount of the deficiency must be subtracted from the area of the habitable room space when determining the amount of floor space in the SRO unit. The SRO unit must contain at least one hundred ten square feet of remaining floor space after subtracting the amount of the deficiency in minimum closet space. (D) Exterior doors and windows accessible from outside an SRO unit must be lockable. (3) Access. (ii) An SRO unit must have immediate access to two or more approved means of exit, appropriately marked, leading to safe and open space at ground level, and any means of exit required by State and local law. (iii) The resident must be able to access an SRO unit without passing through any other unit. (4) Sprinkler system. [63 FR 23865, Apr. 30, 1998, as amended at 88 FR 30503, May 11, 2023; 89 FR 38303, May 7, 2024] Congregate Housing § 982.606 Congregate housing: Who may reside in congregate housing. (a) An elderly person or a person with disabilities may reside in a congregate housing unit. (b)(1) If approved by the PHA, a family member or live-in aide may reside with the elderly person or person with disabilities. (2) The PHA must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities in accordance with 24 CFR part 8. See § 982.316 concerning occupancy by a live-in aide. § 982.607 Congregate housing: Lease and HAP contract. For congregate housing, there is a separate lease and HAP contract for each assisted family. § 982.608 Congregate housing: Voucher housing assistance payment. (a) Unless there is a live-in aide: (1) For a family residing in congregate housing, the payment standard is the zero-bedroom payment standard amount on the PHA payment standard schedule. For a family residing in congregate housing in an exception area, the payment standard is the HUD-approved zero-bedroom exception payment standard amount. (2) However, if there are two or more rooms in the unit (not including kitchen or sanitary facilities), the payment standard for a family residing in congregate housing is the one-bedroom payment standard amount. (b) If there is a live-in aide, the live-in aide must be counted in determining the family unit size. [63 FR 23865, Apr. 30, 1998, as amended at 64 FR 26650, May 14, 1999] § 982.609 Congregate housing: Housing quality standards. (a) HQS standards for congregate housing. (b) Food preparation and refuse disposal: Additional performance requirements. (1) The unit must contain a refrigerator of appropriate size. (2) There must be central kitchen and dining facilities on the premises. These facilities: (i) Must be located within the premises, and accessible to the residents; (ii) Must contain suitable space and equipment to store, prepare, and serve food in a sanitary manner; (iii) Must be used to provide a food service that is provided for the residents, and that is not provided by the residents; and (iv) Must be for the primary use of residents of the congregate units and be sufficient in size to accommodate the residents. (3) There must be adequate facilities and services for the sanitary disposal of food waste and refuse, including facilities for temporary storage where necessary. [63 FR 23865, Apr. 30, 1998, as amended at 88 FR 30504, May 11, 2023; 89 FR 38303, May 7, 2024] Group Home § 982.610 Group home: Who may reside in a group home. (a) An elderly person or a person with disabilities may reside in a State-approved group home. (b)(1) If approved by the PHA, a live-in aide may reside with a person with disabilities. (2) The PHA must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities in accordance with 24 CFR part 8. See § 982.316 concerning occupancy by a live-in aide. (c) Except for a live-in aide, all residents of a group home, whether assisted or unassisted, must be elderly persons or persons with disabilities. (d) Persons residing in a group home must not require continual medical or nursing care. (e) Persons who are not assisted under the tenant-based program may reside in a group home. (f) No more than 12 persons may reside in a group home. This limit covers all persons who reside in the unit, including assisted and unassisted residents and any live-in aide. § 982.611 Group home: Lease and HAP contract. For assistance in a group home, there is a separate HAP contract and lease for each assisted person. § 982.612 Group home: State approval of group home. A group home must be licensed, certified, or otherwise approved in writing by the State (e.g., Department of Human Resources, Mental Health, Retardation, or Social Services) as a group home for elderly persons or persons with disabilities. § 982.613 Group home: Rent and voucher housing assistance payment. (a) Meaning of pro-rata portion. (b) Rent to owner: Reasonable rent limit. (2) The reasonable rent for a group home is determined in accordance with § 982.507. In determining reasonable rent for the group home, the PHA must consider whether sanitary facilities, and facilities for food preparation and service, are common facilities or private facilities. (c) Payment standard Family unit size. (ii) If there is a live-in aide, the live-in aide must be counted in determining the family unit size. (2) The payment standard for a person who resides in a group home is the lower of: (i) The payment standard amount on the PHA payment standard schedule for the family unit size; or (ii) The pro-rata portion of the payment standard amount on the PHA payment standard schedule for the group home size. (iii) If there is a live-in aide, the live-in aide must be counted in determining the family unit size. (d) Utility allowance. [63 FR 23865, Apr. 30, 1998, as amended at 64 FR 26651, May 14, 1999] § 982.614 Group home: Housing quality standards. (a) Compliance with HQS. (b) Applicable HQS standards. (2) The entire unit must comply with the HQS. (c) Additional performance requirements. (1) Sanitary facilities. (A) A flush toilet that can be used in privacy; (B) A fixed basin with hot and cold running water; and (C) A shower or bathtub with hot and cold running water. (ii) All of these facilities must be in proper operating condition, and must be adequate for personal cleanliness and the disposal of human waste. The facilities must utilize an approvable public or private disposal system. (iii) The unit may contain private or common sanitary facilities. However, the facilities must be sufficient in number so that they need not be shared by more than four residents of the group home. (iv) Sanitary facilities in the group home must be readily accessible to and usable by residents, including persons with disabilities. (2) Food preparation and service. (ii) Food preparation and service equipment must be in proper operating condition. The equipment must be adequate for the number of residents in the group home. The unit must contain the following equipment: (A) A stove or range, and oven; (B) A refrigerator; and (C) A kitchen sink with hot and cold running water. The sink must drain into an approvable public or private disposal system. (iii) There must be adequate facilities and services for the sanitary disposal of food waste and refuse, including facilities for temporary storage where necessary. (iv) The unit may contain private or common facilities for food preparation and service. (3) Space and security. (ii) The unit must contain a living room, kitchen, dining area, bathroom, and other appropriate social, recreational or community space. The unit must contain at least one bedroom of appropriate size for each two persons. (iii) Doors and windows that are accessible from outside the unit must be lockable. (4) Structure and material. (ii) Ceilings, walls, and floors must not have any serious defects such as severe bulging or leaning, loose surface materials, severe buckling or noticeable movement under walking stress, missing parts or other significant damage. The roof structure must be firm, and the roof must be weathertight. The exterior or wall structure and exterior wall surface may not have any serious defects such as serious leaning, buckling, sagging, cracks or large holes, loose siding, or other serious damage. The condition and equipment of interior and exterior stairways, halls, porches, walkways, etc., must not present a danger of tripping or falling. Elevators must be maintained in safe operating condition. (iii) The group home must be accessible to and usable by a resident with disabilities. (5) Site and neighborhood. [63 FR 23865, Apr. 30, 1998, as amended at 88 FR 30504, May 11, 2023; 89 FR 38303, May 7, 2024] Shared Housing § 982.615 Shared housing: Occupancy. (a) Sharing a unit. (b) Who may share a dwelling unit with assisted family? (2) Other persons who are assisted under the tenant-based program, or other persons who are not assisted under the tenant-based program, may reside in a shared housing unit. (3) The owner of a shared housing unit may reside in the unit. A resident owner may enter into a HAP contract with the PHA. However, housing assistance may not be paid on behalf of an owner. An assisted person may not be related by blood or marriage to a resident owner. [63 FR 23865, Apr. 30, 1998, as amended at 80 FR 8247, Feb. 17, 2015] § 982.616 Shared housing: Lease and HAP contract. For assistance in a shared housing unit, there is a separate HAP contract and lease for each assisted family. § 982.617 Shared housing: Rent and voucher housing assistance payment. (a) Meaning of pro-rata portion. (b) Rent to owner: Reasonable rent. (2) The reasonable rent is determined in accordance with § 982.507. (c) Payment standard. (1) The payment standard amount on the PHA payment standard schedule for the family unit size; or (2) The pro-rata portion of the payment standard amount on the PHA payment standard schedule for the size of the shared housing unit. (d) Utility allowance. [63 FR 23865, Apr. 30, 1998, as amended at 64 FR 26651, May 14, 1999] § 982.618 Shared housing: Housing quality standards. (a) Compliance with HQS. (b) Applicable HQS standards. (c) Facilities available for family. (d) Space and security: Performance requirements. (2)(i) Each unit must contain private space for each assisted family, plus common space for shared use by the residents of the unit. Common space must be appropriate for shared use by the residents. (ii) The private space for each assisted family must contain at least one bedroom for each two persons in the family. The number of bedrooms in the private space of an assisted family may not be less than the family unit size. (iii) A zero or one bedroom unit may not be used for shared housing. [63 FR 23865, Apr. 30, 1998, as amended at 88 FR 30504, May 11, 2023; 89 FR 38303, May 7, 2024] Cooperative § 982.619 Cooperative housing. (a) Assistance in cooperative housing. (1) Assistance for a cooperative member under the homeownership option pursuant to §§ 982.625 through 982.641; or (2) Rental assistance for a family that leases a cooperative housing unit from a cooperative member (such rental assistance is not a special housing type, and is subject to requirements in other subparts of this part 982). (b) Rent to owner. (2) The carrying charge consists of the amount assessed to the member by the cooperative for occupancy of the housing. The carrying charge includes the member's share of the cooperative debt service, operating expenses, and necessary payments to cooperative reserve funds. However, the carrying charge does not include down-payments or other payments to purchase the cooperative unit, or to amortize a loan to the family for this purpose. (3) Gross rent is the carrying charge plus any utility allowance. (4) Adjustments are applied to the carrying charge as determined in accordance with this section. (5) The occupancy agreement/lease and other appropriate documents must provide that the monthly carrying charge is subject to Section 8 limitations on rent to owner. (c) Housing assistance payment. (d) Maintenance. (2) The PHA may not make any housing assistance payments if the contract unit does not meet the HQS, unless any defect is corrected within the period specified by the PHA and the PHA verifies the correction. If a defect is life-threatening, the defect must be corrected within no more than 24 hours. For other defects, the defect must be corrected within the period specified by the PHA. (3) The family is responsible for a breach of the HQS that is caused by any of the following: (i) The family fails to perform any maintenance for which the family is responsible in accordance with the terms of the cooperative occupancy agreement between the cooperative member and the cooperative; (ii) The family fails to pay for any utilities that the cooperative is not required to pay for, but which are to be paid by the cooperative member; (iii) The family fails to provide and maintain any appliances that the cooperative is not required to provide, but which are to be provided by the cooperative member; or (iv) Any member of the household or guest damages the dwelling unit or premises (damages beyond ordinary wear and tear). (4) If the family has caused a breach of the HQS for which the family is responsible, the PHA must take prompt and vigorous action to enforce such family obligations. The PHA may terminate assistance for violation of family obligations in accordance with § 982.552. (5) Section 982.404 does not apply to assistance for cooperative housing under this section. (e) Live-in aide. (2) If there is a live-in aide, the live-in aide must be counted in determining the family unit size. [63 FR 23865, Apr. 30, 1998, as amended at 64 FR 26651, May 14, 1999; 65 FR 55162, Sept. 12, 2000; 80 FR 8247, Feb. 17, 2015] Manufactured Home § 982.620 Manufactured home: Applicability of requirements. (a) Assistance for resident of manufactured home. (2) The PHA must permit a family to lease a manufactured home and space with assistance under the program. (3) The PHA may provide assistance for a family that owns the manufactured home and leases only the space. The PHA is not required to provide such assistance under the program. (b) Applicability. (2) Sections 982.622 to 982.624 only apply when assistance is provided to a manufactured home owner to lease a manufactured home space. (c) Live-in aide. (2) If there is a live-in aide, the live-in aide must be counted in determining the family unit size. § 982.621 Manufactured home space rental: Housing quality standards. As defined in § 982.4, HQS refers to the minimum quality standards developed by HUD in accordance with 24 CFR 5.703 for housing assisted under the HCV program, including any variations approved by HUD for the PHA under 24 CFR 5.705(a)(3).

A manufactured home also must meet the following requirements: (a) Performance requirement. (b) Acceptability criteria. [63 FR 23865, Apr. 30, 1998, as amended at 88 FR 30504, May 11, 2023; 89 FR 38303, May 7, 2024] Manufactured Home Space Rental § 982.622 Manufactured home space rental: Rent to owner. (a) What is included. (2) Rent to owner does not include the costs of utilities and trash collection for the manufactured home. However, the owner may charge the family a separate fee for the cost of utilities or trash collection provided by the owner. (b) Reasonable rent. (2) The PHA may not approve a lease for a manufactured home space until the PHA determines that the initial rent to owner for the space is a reasonable rent. At least annually during the assisted tenancy, the PHA must redetermine that the current rent to owner is a reasonable rent. (3) The PHA must determine whether the rent to owner for the manufactured home space is a reasonable rent in comparison to rent for other comparable manufactured home spaces. To make this determination, the PHA must consider the location and size of the space, and any services and maintenance to be provided by the owner in accordance with the lease (without a fee in addition to the rent). (4) By accepting each monthly housing assistance payment from the PHA, the owner of the manufactured home space certifies that the rent to owner for the space is not more than rent charged by the owner for unassisted rental of comparable spaces in the same manufactured home park or elsewhere. The owner must give the PHA information, as requested by the PHA, on rents charged by the owner for other manufactured home spaces. § 982.623 Manufactured home space rental: Housing assistance payment. (a) Amount of monthly housing assistance payment. (1) The PHA payment standard, determined in accordance with § 982.503 minus the total tenant payment; or (2) The family's eligible housing expenses minus the total tenant payment. (b) Eligible housing expenses. (1) The rent charged by the owner for the manufactured home space. (2) Charges for the maintenance and management the space owner must provide under the lease. (3) The monthly payments made by the family to amortize the cost of purchasing the manufactured home established at the time of application to a lender for financing the purchase of the manufactured home if monthly payments are still being made, including any required insurance and property taxes included in the loan payment to the lender. (i) Any increase in debt service or term due to refinancing after purchase of the home may not be included in the amortization cost. (ii) Debt service for installation charges incurred by a family may be included in the monthly amortization payments. Installation charges incurred before the family became an assisted family may be included in the amortization cost if monthly payments are still being made to amortize the charges. (4) The applicable allowances for tenant-paid utilities, as determined under §§ 982.517 and 982.624. (c) Distribution of housing assistance payment. (1) The PHA pays the owner of the space the lesser of the housing assistance payment or the portion of the monthly rent due to the owner. The portion of the monthly rent due to the owner is the total of: (i) The actual rent charged by the owner for the manufactured home space; and (ii) Charges for the maintenance and management the space owner must provide under the lease. (2) If the housing assistance payment exceeds the portion of the monthly rent due to the owner, the PHA may pay the balance of the housing assistance payment to the family. Alternatively, the PHA may pay the balance to the lender or utility company, in an amount no greater than the amount due for the month to each, respectively, subject to the lender's or utility company's willingness to accept the PHA's payment on behalf of the family. If the PHA elects to pay the lender or the utility company directly, the PHA must notify the family of the amount paid to the lender or the utility company and must pay any remaining balance directly to the family. (d) PHA option: Single housing assistance payment to the family. (2) The PHA and owner of the manufactured home space must still execute the HAP contract, and the owner is still responsible for fulfilling all of the owner obligations under the HAP contract, including but not limited to complying with HQS and rent reasonableness requirements. The owner's acceptance of the family's monthly rent payment during the term of the HAP contract serves as the owner's certification to the reasonableness of the rent charged for the space in accordance with § 982.622(b)(4). (3) If the family and owner agree to the single housing assistance payment, the owner is responsible for collecting the full amount of the rent and other charges under the lease directly from the family. The PHA is not responsible for any amounts owed by the family to the owner and may not pay any claim by the owner against the family. [89 FR 38303, May 7, 2024] § 982.624 Manufactured home space rental: Utility allowance schedule. The PHA must establish utility allowances for manufactured home space rental. For the first twelve months of the initial lease term only, the allowances must include a reasonable amount for utility hook-up charges payable by the family if the family actually incurs the expenses because of a move. Allowances for utility hook-up charges do not apply to a family that leases a manufactured home space in place. Utility allowances for manufactured home space must not cover costs payable by a family to cover the digging of a well or installation of a septic system. Homeownership Option Source: 65 FR 55163, Sept. 12, 2000, unless otherwise noted. § 982.625 Homeownership option: General. (a) Applicability. (b) Family status. (c) Forms of homeownership assistance. Allowable forms of homeownership assistance. (i) Monthly homeownership assistance payments; or (ii) A single downpayment assistance grant. (2) Prohibition against combining forms of homeownership assistance. (d) PHA choice to offer homeownership options. (2) It is the sole responsibility of the PHA to determine whether it is reasonable to implement a homeownership program as a reasonable accommodation. The PHA will determine what is reasonable based on the specific circumstances and individual needs of the person with a disability. The PHA may determine that it is not reasonable to offer homeownership assistance as a reasonable accommodation in cases where the PHA has otherwise opted not to implement a homeownership program. (e) Family choice. (2) If the PHA offers both forms of homeownership assistance, the family chooses which form of homeownership assistance to receive. (f) Live-in aide. (g) PHA capacity. (1) The PHA establishes a minimum homeowner downpayment requirement of at least 3 percent of the purchase price for participation in its Section 8 homeownership program, and requires that at least one percent of the purchase price come from the family's personal resources; (2) The PHA requires that financing for purchase of a home under its Section 8 homeownership program: (i) Be provided, insured, or guaranteed by the state or Federal government; (ii) Comply with secondary mortgage market underwriting requirements; or (iii) Comply with generally accepted private sector underwriting standards; or (3) The PHA otherwise demonstrates in its Annual Plan that it has the capacity, or will acquire the capacity, to successfully operate a Section 8 homeownership program. (h) Recapture of homeownership assistance. (i) Applicable requirements. (1) Common provisions. (i) Section 982.625 (General); (ii) Section 982.626 (Initial requirements); (iii) Section 982.627 (Eligibility requirements for families); (iv) Section 982.628 (Eligible units); (v) Section 982.629 (Additional PHA requirements for family search and purchase); (vi) Section 982.630 (Homeownership counseling); (vii) Section 982.631 (Home inspections, contract of sale, and PHA disapproval of seller); (viii) Section 982.632 (Financing purchase of home; affordability of purchase); (ix) Section 982.636 (Portability); (x) Section 982.638 (Denial or termination of assistance for family); and (xi) Section 982.641 (Applicability of other requirements). (2) Monthly homeownership assistance payments. (i) Section 982.633 (Continued assistance requirements; family obligations); (ii) Section 982.634 (Maximum term of homeownership assistance); (iii) Section 982.635 (Amount and distribution of monthly homeownership assistance payment); (iv) Section 982.637 (Move with continued tenant-based assistance); and (v) Section 982.639 (Administrative fees). (3) Downpayment assistance grant. [65 FR 55163, Sept. 12, 2000, as amended at 67 FR 64493, Oct. 18, 2002; 80 FR 8247, Feb. 17, 2015; 89 FR 38304, May 7, 2024] § 982.626 Homeownership option: Initial requirements. (a) List of initial requirements. (1) The family is qualified to receive homeownership assistance (see § 982.627); (2) The unit is eligible (see § 982.628); and (3) The family has satisfactorily completed the PHA program of required pre-assistance homeownership counseling (see § 982.630). (b) Additional PHA requirements. (c) Environmental requirements. [63 FR 23865, Apr. 30, 1998, as amended at 72 FR 59938, Oct. 22, 2007] § 982.627 Homeownership option: Eligibility requirements for families. (a) Determination whether family is qualified. (1) The family has been admitted to the Section 8 Housing Choice Voucher program, in accordance with subpart E of this part. (2) The family satisfies any first-time homeowner requirements (described in paragraph (b) of this section). (3) The family satisfies the minimum income requirement (described in paragraph (c) of this section). (4) The family satisfies the employment requirements (described in paragraph (d) of this section). (5) The family has not defaulted on a mortgage securing debt to purchase a home under the homeownership option (see paragraph (e) of this section). (6) Except for cooperative members who have acquired cooperative membership shares prior to commencement of homeownership assistance, no family member has a present ownership interest in a residence at the commencement of homeownership assistance for the purchase of any home. (7) Except for cooperative members who have acquired cooperative membership shares prior to the commencement of homeownership assistance, the family has entered a contract of sale in accordance with § 982.631(c). (8) The family also satisfies any other initial requirements established by the PHA (see § 982.626(b)). Any such additional requirements must be described in the PHA Administrative Plan. (b) First-time homeowner requirements. (1) A first-time homeowner (defined at § 982.4); (2) A cooperative member (defined at § 982.4); or (3) A family of which a family member is a person with disabilities, and use of the homeownership option is needed as a reasonable accommodation so that the program is readily accessible to and usable by such person, in accordance with part 8 of this title. (c) Minimum income requirements. (i) In the case of a disabled family (as defined in § 5.403(b) of this title), the monthly Federal Supplemental Security Income (SSI) benefit for an individual living alone (or paying his or her share of food and housing costs) multiplied by twelve; or (ii) In the case of other families, the Federal minimum wage multiplied by 2,000 hours. (2)(i) Except in the case of an elderly family or a disabled family (see the definitions of these terms at § 5.403(b) of this title), the PHA shall not count any welfare assistance received by the family in determining annual income under this section. (ii) The disregard of welfare assistance income under paragraph (c)(2)(i) of this section only affects the determination of minimum annual income used to determine if a family initially qualifies for commencement of homeownership assistance in accordance with this section, but does not affect: (A) The determination of income-eligibility for admission to the voucher program; (B) Calculation of the amount of the family's total tenant payment (gross family contribution); or (C) Calculation of the amount of homeownership assistance payments on behalf of the family. (iii) In the case of an elderly or disabled family, the PHA shall include welfare assistance for the adult family members who will own the home in determining if the family meets the minimum income requirement. (3) A PHA may establish a minimum income standard that is higher than those described in paragraph (c)(1) of this section for either or both types of families. However, a family that meets the applicable HUD minimum income requirement described in paragraph (c)(1) of this section, but not the higher standard established by the PHA shall be considered to satisfy the minimum income requirement if: (i) The family demonstrates that it has been pre-qualified or pre-approved for financing; (ii) The pre-qualified or pre-approved financing meets any PHA established requirements under § 982.632 for financing the purchase of the home (including qualifications of lenders and terms of financing); and (iii) The pre-qualified or pre-approved financing amount is sufficient to purchase housing that meets HQS in the PHA's jurisdiction. (d) Employment requirements. (i) Is currently employed on a full-time basis (the term “full-time employment” means not less than an average of 30 hours per week); and (ii) Has been continuously so employed during the year before commencement of homeownership assistance for the family. (2) The PHA shall have discretion to determine whether and to what extent interruptions are considered to break continuity of employment during the year. The PHA may count successive employment during the year. The PHA may count self-employment in a business. (3) The employment requirement does not apply to an elderly family or a disabled family (see the definitions of these terms at § 5.403(b) of this title). Furthermore, if a family, other than an elderly family or a disabled family, includes a person with disabilities, the PHA shall grant an exemption from the employment requirement if the PHA determines that an exemption is needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities in accordance with part 8 of this title. (4) A PHA may not establish an employment requirement in addition to the employment standard established by this paragraph. (e) Prohibition against assistance to family that has defaulted. [65 FR 55163, Sept. 12, 2000, as amended at 67 FR 64493, Oct. 18, 2002; 80 FR 8247, Feb. 17, 2015] § 982.628 Homeownership option: Eligible units. (a) Initial requirements applicable to the unit. (1) The unit is eligible. (See § 982.352. Paragraphs (a)(6) and (b) of § 982.352 do not apply.) (2) The unit is either a one-unit property (including a manufactured home) or a single dwelling unit in a cooperative or condominium. (3) The unit has been inspected by a PHA inspector and by an independent inspector designated by the family (see § 982.631). (4) The unit satisfies the HQS ( see (b) Purchase of home where family will not own fee title to the real property. (1) The home is located on a permanent foundation; and (2) The family has the right to occupy the home site for at least forty years. (c) PHA disapproval of seller. (d) PHA-owned units. (1) The PHA must inform the family, both orally and in writing, that the family has the right to purchase any eligible unit and a PHA-owned unit is freely selected by the family without PHA pressure or steering; (2) The unit is not ineligible housing; (3) The PHA must obtain the services of an independent entity, as defined in § 982.4 and in accordance with § 982.352(b)(1)(v)(B), to perform the following PHA functions: (i) Inspection of the unit for compliance with the HQS, in accordance with § 982.631(a); (ii) Review of the independent inspection report, in accordance with § 982.631(b)(4); (iii) Review of the contract of sale, in accordance with § 982.631(c); and (iv) Determination of the reasonableness of the sales price and any PHA provided financing, in accordance with § 982.632 and other supplementary guidance established by HUD. (e) Units not yet under construction. (1) Either: (i) The responsible entity completed the environmental review procedures required by 24 CFR part 58, and HUD approved the environmental certification and request for release of funds prior to commencement of construction; or (ii) HUD performed an environmental review under 24 CFR part 50 and notified the PHA in writing of environmental approval of the site prior to commencement of construction; (2) Construction of the unit has been completed; and (3) The unit has passed the required HQS inspection (see § 982.631(a)) and independent inspection (see § 982.631(b)). [65 FR 55163, Sept. 12, 2000, as amended at 67 FR 64494, Oct. 18, 2002; 67 FR 65865, Oct. 28, 2002; 67 FR 67522, Nov. 6, 2002; 72 FR 59938, Oct. 22, 2007; 72 FR 73496, Dec. 27, 2007; 88 FR 30504, May 11, 2023; 89 FR 38304, May 7, 2024] § 982.629 Homeownership option: Additional PHA requirements for family search and purchase. (a) The PHA may establish the maximum time for a family to locate a home, and to purchase the home. (b) The PHA may require periodic family reports on the family's progress in finding and purchasing a home. (c) If the family is unable to purchase a home within the maximum time established by the PHA, the PHA may issue the family a voucher to lease a unit or place the family's name on the waiting list for a voucher. § 982.630 Homeownership option: Homeownership counseling. (a) Pre-assistance counseling. (b) Counseling topics. (1) Home maintenance (including care of the grounds); (2) Budgeting and money management; (3) Credit counseling; (4) How to negotiate the purchase price of a home; (5) How to obtain homeownership financing and loan preapprovals, including a description of types of financing that may be available, and the pros and cons of different types of financing; (6) How to find a home, including information about homeownership opportunities, schools, and transportation in the PHA jurisdiction; (7) Advantages of purchasing a home in an area that does not have a high concentration of low-income families and how to locate homes in such areas; (8) Information on fair housing, including fair housing lending and local fair housing enforcement agencies; and (9) Information about the Real Estate Settlement Procedures Act (12 U.S.C. 2601 et seq. (c) Local circumstances. (d) Additional counseling. (e) HUD-certified housing counselor. [65 FR 55163, Sept. 12, 2000, as amended at 89 FR 38304, May 7, 2024] § 982.631 Homeownership option: Home inspections, contract of sale, and PHA disapproval of seller. (a) HQS inspection by PHA. The PHA may not commence monthly homeownership assistance payments or provide a downpayment assistance grant for the family until the PHA has inspected the unit and has determined that the unit passes HQS. (b) Independent inspection. (2) The independent inspection must cover major building systems and components, including foundation and structure, housing interior and exterior, and the roofing, plumbing, electrical, and heating systems. The independent inspector must be qualified to report on property conditions, including major building systems and components. (3) The PHA may not require the family to use an independent inspector selected by the PHA. The independent inspector may not be a PHA employee or contractor, or other person under control of the PHA. However, the PHA may establish standards for qualification of inspectors selected by families under the homeownership option. (4) The independent inspector must provide a copy of the inspection report both to the family and to the PHA. The PHA may not commence monthly homeownership assistance payments, or provide a downpayment assistance grant for the family, until the PHA has reviewed the inspection report of the independent inspector. Even if the unit otherwise complies with the HQS (and may qualify for assistance under the PHA's tenant-based rental voucher program), the PHA shall have discretion to disapprove the unit for assistance under the homeownership option because of information in the inspection report. (c) Contract of sale. (2) The contract of sale must: (i) Specify the price and other terms of sale by the seller to the purchaser. (ii) Provide that the purchaser will arrange for a pre-purchase inspection of the dwelling unit by an independent inspector selected by the purchaser. (iii) Provide that the purchaser is not obligated to purchase the unit unless the inspection is satisfactory to the purchaser. (iv) Provide that the purchaser is not obligated to pay for any necessary repairs. (3) In addition to the requirements contained in paragraph (c)(2) of this section, a contract for the sale of units not yet under construction at the time the family is to enter into the contract for sale must also provide that: (i) The purchaser is not obligated to purchase the unit unless an environmental review has been performed and the site has received environmental approval prior to commencement of construction in accordance with 24 CFR 982.628. (ii) The construction will not commence until the environmental review has been completed and the seller has received written notice from the PHA that environmental approval has been obtained. Conduct of the environmental review may not necessarily result in environmental approval, and environmental approval may be conditioned on the contracting parties' agreement to modifications to the unit design or to mitigation actions. (iii) Commencement of construction in violation of paragraph (c)(3)(ii) of this section voids the purchase contract and renders homeownership assistance under 24 CFR part 982 unavailable for purchase of the unit. (d) PHA disapproval of seller. [65 FR 55163, Sept. 12, 2000, as amended at 67 FR 64494, Oct. 18, 2002; 72 FR 59938, Oct. 22, 2007; 72 FR 73497, Dec. 27, 2007; 80 FR 8247, Feb. 17, 2015] § 982.632 Homeownership option: Financing purchase of home; affordability of purchase. (a) The PHA may establish requirements for financing purchase of a home to be assisted under the homeownership option. Such PHA requirements may include requirements concerning qualification of lenders (for example, prohibition of seller financing or case-by-case approval of seller financing), or concerning terms of financing (for example, a prohibition of balloon payment mortgages, establishment of a minimum homeowner equity requirement from personal resources, or provisions required to protect borrowers against high cost loans or predatory loans). A PHA may not require that families acquire financing from one or more specified lenders, thereby restricting the family's ability to secure favorable financing terms. (b) If the purchase of the home is financed with FHA mortgage insurance, such financing is subject to FHA mortgage insurance requirements. (c) The PHA may establish requirements or other restrictions concerning debt secured by the home. (d) The PHA may review lender qualifications and the loan terms before authorizing homeownership assistance. The PHA may disapprove proposed financing, refinancing or other debt if the PHA determines that the debt is unaffordable, or if the PHA determines that the lender or the loan terms do not meet PHA qualifications. In making this determination, the PHA may take into account other family expenses, such as child care, unreimbursed medical expenses, homeownership expenses, and other family expenses as determined by the PHA. (e) All PHA financing or affordability requirements must be described in the PHA Administrative Plan. [65 FR 55163, Sept. 12, 2000, as amended at 66 FR 33613, June 22, 2001] § 982.633 Homeownership option: Continued assistance requirements; Family obligations. (a) Occupancy of home. (b) Family obligations. (1) Ongoing counseling. (2) Compliance with mortgage. (3) Prohibition against conveyance or transfer of home. (ii) The family may grant a mortgage on the home for debt incurred to finance purchase of the home or any refinancing of such debt. (iii) Upon death of a family member who holds, in whole or in part, title to the home or ownership of cooperative membership shares for the home, homeownership assistance may continue pending settlement of the decedent's estate, notwithstanding transfer of title by operation of law to the decedent's executor or legal representative, so long as the home is solely occupied by remaining family members in accordance with § 982.551(h). (4) Supplying required information. (ii) In addition to other required information, the family must supply any information as required by the PHA or HUD concerning: (A) Any mortgage or other debt incurred to purchase the home, and any refinancing of such debt (including information needed to determine whether the family has defaulted on the debt, and the nature of any such default), and information on any satisfaction or payment of the mortgage debt; (B) Any sale or other transfer of any interest in the home; or (C) The family's homeownership expenses. (5) Notice of move-out. (6) Notice of mortgage default. (7) Prohibition on ownership interest on second residence. (8) Additional PHA requirements. (9) Other family obligations. (c) Statement of homeowner obligations. § 982.634 Homeownership option: Maximum term of homeownership assistance. (a) Maximum term of assistance. (1) Fifteen years, if the initial mortgage incurred to finance purchase of the home has a term of 20 years or longer; or (2) Ten years, in all other cases. (b) Applicability of maximum term. (1) Has an ownership interest in the unit during the time that homeownership payments are made; or (2) Is the spouse of any member of the household who has an ownership interest in the unit during the time homeownership payments are made. (c) Exception for elderly and disabled families. (2) In the case of an elderly family, the exception only applies if the family qualifies as an elderly family at the start of homeownership assistance. In the case of a disabled family, the exception applies if at any time during receipt of homeownership assistance the family qualifies as a disabled family. (3) If, during the course of homeownership assistance, the family ceases to qualify as a disabled or elderly family, the maximum term becomes applicable from the date homeownership assistance commenced. However, such a family must be provided at least 6 months of homeownership assistance after the maximum term becomes applicable (provided the family is otherwise eligible to receive homeownership assistance in accordance with this part). (d) Assistance for different homes or PHAs. § 982.635 Homeownership option: Amount and distribution of monthly homeownership assistance payment. (a) Amount of monthly homeownership assistance payment. lower of: (1) The payment standard minus the total tenant payment; or (2) The family's monthly homeownership expenses minus the total tenant payment. (b) Payment standard for family. (i) The payment standard for the family unit size; or (ii) The payment standard for the size of the home. (2) If the home is located in an exception payment standard area, the PHA must use the appropriate payment standard for the exception payment standard area. (3) The payment standard amount may not be lower than what the payment standard amount was at commencement of homeownership assistance. (4) The PHA must use the same payment standard schedule, payment standard amounts, and subsidy standards pursuant to §§ 982.402 and 982.503 for the homeownership option as for the rental voucher program. (c) Determination of homeownership expenses. (2) Homeownership expenses for a homeowner (other than a cooperative member) may only include amounts allowed by the PHA to cover: (i) Principal and interest on initial mortgage debt, any refinancing of such debt, and any mortgage insurance premium incurred to finance purchase of the home; (ii) Real estate taxes and public assessments on the home; (iii) Home insurance; (iv) The PHA allowance for maintenance expenses; (v) The PHA allowance for costs of major repairs and replacements; (vi) The PHA utility allowance for the home; (vii) Principal and interest on mortgage debt incurred to finance costs for major repairs, replacements or improvements for the home. If a member of the family is a person with disabilities, such debt may include debt incurred by the family to finance costs needed to make the home accessible for such person, if the PHA determines that allowance of such costs as homeownership expenses is needed as a reasonable accommodation so that the homeownership option is readily accessible to and usable by such person, in accordance with parts 8 and 100 of this title; and (viii) Land lease payments (where a family does not own fee title to the real property on which the home is located; see § 982.628(b)). (3) Homeownership expenses for a cooperative member may only include amounts allowed by the PHA to cover: (i) The cooperative charge under the cooperative occupancy agreement including payment for real estate taxes and public assessments on the home; (ii) Principal and interest on initial debt incurred to finance purchase of cooperative membership shares and any refinancing of such debt; (iii) Home insurance; (iv) The PHA allowance for maintenance expenses; (v) The PHA allowance for costs of major repairs and replacements; (vi) The PHA utility allowance for the home; and (vii) Principal and interest on debt incurred to finance major repairs, replacements or improvements for the home. If a member of the family is a person with disabilities, such debt may include debt incurred by the family to finance costs needed to make the home accessible for such person, if the PHA determines that allowance of such costs as homeownership expenses is needed as a reasonable accommodation so that the homeownership option is readily accessible to and usable by such person, in accordance with parts 8 and 100 of this title. (4) If the home is a cooperative or condominium unit, homeownership expenses may also include cooperative or condominium operating charges or maintenance fees assessed by the condominium or cooperative homeowner association. (d) Payment to lender or family. (1) Directly to the family or; (2) At the discretion of the PHA, to a lender on behalf of the family. If the assistance payment exceeds the amount due to the lender, the PHA must pay the excess directly to the family. (e) Automatic termination of homeownership assistance. [65 FR 55163, Sept. 12, 2000, as amended at 67 FR 64494, Oct. 18, 2002; 89 FR 38304, May 7, 2024] § 982.636 Homeownership option: Portability. (a) General. (b) Portability of homeownership assistance. (c) Applicability of Housing Choice Voucher program portability procedures. (d) Family and PHA responsibilities. (e) Continued assistance under § 982.637. [65 FR 55163, Sept. 12, 2000, as amended at 80 FR 8247, Feb. 17, 2015] § 982.637 Homeownership option: Move with continued tenant-based assistance. (a) Move to new unit. (2) The PHA may not commence continued tenant-based assistance for occupancy of the new unit so long as any family member owns any title or other interest in the prior home. However, when the family or a member of the family is or has been the victim of domestic violence, dating violence, sexual assault, or stalking, as provided in 24 CFR part 5, subpart L (Protection for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking), and the move is needed to protect the health or safety of the family or family member (or any family member has been the victim of a sexual assault that occurred on the premises during the 90-calendar-day period preceding the family's request to move), such family or family member may be assisted with continued tenant-based assistance even if such family or family member owns any title or other interest in the prior home. (3) The PHA may establish policies that prohibit more than one move by the family during any one-year period. However, these policies do not apply when the family or a member of the family is or has been the victim of domestic violence, dating violence, sexual assault, or stalking, as provided in 24 CFR part 5, subpart L, and the move is needed to protect the health or safety of the family or family member, or any family member has been the victim of a sexual assault that occurred on the premises during the 90-calendar-day period preceding the family's request to move. (b) Requirements for continuation of homeownership assistance. (1) The requirement for pre-assistance counseling (§ 982.630) is not applicable. However, the PHA may require that the family complete additional counseling (before or after moving to a new unit with continued assistance under the homeownership option). (2) The requirement that a family must be a first-time homeowner (§ 982.627) is not applicable. (c) When PHA may deny permission to move with continued assistance. (1) Lack of funding to provide continued assistance. (2) Termination or denial of assistance under § 982.638. [63 FR 23865, Apr. 30, 1998, as amended at 72 FR 59938, Oct. 22, 2007; 80 FR 50575, Aug. 20, 2015; 81 FR 80817, Nov. 16, 2016] § 982.638 Homeownership option: Denial or termination of assistance for family. (a) General. (b) Denial or termination of assistance under basic voucher program. (c) Failure to comply with family obligations. (d) Mortgage default. (1) The family defaulted on an FHA-insured mortgage; and (2) The family fails to demonstrate that: (i) The family has conveyed, or will convey, title to the home, as required by HUD, to HUD or HUD's designee; and (ii) The family has moved, or will move, from the home within the period established or approved by HUD. [65 FR 55163, Sept. 12, 2000, as amended at 66 FR 33613, June 22, 2001] § 982.639 Homeownership option: Administrative fees. The ongoing administrative fee described in § 982.152(b) is paid to the PHA for each month that homeownership assistance is paid by the PHA on behalf of the family. § 982.641 Homeownership option: Applicability of other requirements. (a) General. (1) Any provisions concerning the Section 8 owner or the HAP contract between the PHA and owner; (2) Any provisions concerning the assisted tenancy or the lease between the family and the owner; (3) Any provisions concerning PHA approval of the assisted tenancy; (4) Any provisions concerning rent to owner or reasonable rent; and (5) Any provisions concerning the issuance or term of voucher. (b) Subpart G requirements. (1) Section 982.302 (Issuance of voucher; Requesting PHA approval of assisted tenancy); (2) Section 982.303 (Term of voucher); (3) Section 982.305 (PHA approval of assisted tenancy); (4) Section 982.306 (PHA disapproval of owner) (except that a PHA may disapprove a seller for any reason described in paragraph (c), see § 982.631(d)). (5) Section 982.307 (Tenant screening); (6) Section 982.308 (Lease and tenancy); (7) Section 982.309 (Term of assisted tenancy); (8) Section 982.310 (Owner termination of tenancy); (9) Section 982.311 (When assistance is paid) (except that § 982.311(c)(3) is applicable to assistance under the homeownership option); (10) Section 982.313 (Security deposit: Amounts owed by tenant); and (11) Section 982.354 (Move with continued tenant-based assistance). (c) Subpart H requirements. (1) Section 982.352(a)(6) (Prohibition of owner-occupied assisted unit); (2) Section 982.352(b) (PHA-owned housing); and (3) Those provisions of § 982.353 (Where family can lease a unit with tenant-based assistance) and § 982.355 (Portability: Administration by receiving PHA) that are inapplicable per § 982.636; (d) Subpart I requirements. (1) Section 982.403 (Terminating HAP contract when unit is too small); (2) Section 982.404 (Maintenance: Owner and family responsibility; PHA remedies); (3) Section 982.405 (PHA unit inspection); and (4) Section 982.406 (Use of alternative inspections). (e) Subpart J requirements. (f) Subpart K requirements. (1) Section 982.503 (Voucher tenancy: Payment standard amount and schedule); (2) Section 982.516 (Family income and composition: Regular and interim reexaminations); and (3) Section 982.517 (Utility allowance schedule), except that § 982.517(d) does not apply because the utility allowance is always based on the size of the home bought by the family with homeownership assistance. (g) Subpart L requirements. (1) Section 982.551(c) (HQS breach caused by family); (2) Section 982.551(d) (Allowing PHA inspection); (3) Section 982.551(e) (Violation of lease); (4) Section 982.551(g) (Owner eviction notice); and (5) Section 982.551(j) (Interest in unit). (h) Subpart M requirements. (1) Sections 982.602-982.619; and (2) Sections 982.622-982.624. [65 FR 55163, Sept. 12, 2000, as amended at 67 FR 64494, Oct. 18, 2002; 80 FR 8247, Feb. 17, 2015; 80 FR 50575, Aug. 20, 2015; 89 FR 38304, May 7, 2024] § 982.642 Homeownership option: Pilot program for homeownership assistance for disabled families. (a) General. (b) Applicability of homeownership option requirements. (c) Initial eligibility requirements. (1) The family is a disabled family (as defined in § 5.403 of this title); (2) The family annual income does not exceed 99 percent of the median income for the area; (3) The family is not a current homeowner; (4) The family must close on the purchase of the home during the period starting on July 23, 2001 and ending on July 23, 2004; and (5) The family meets the initial requirements described in § 982.626; however, the following initial requirements do not apply to a family seeking to participate in the pilot program: (i) The income eligibility requirements of § 982.201(b)(1); (ii) The first-time homeowner requirements of § 982.627(b); and (iii) The mortgage default requirements of § 982.627(e), if the PHA determines that the default is due to catastrophic medical reasons or due to the impact of a federally declared major disaster or emergency. (d) Amount and distribution of homeownership assistance payments. (2) A family that is a low income family (as defined at 24 CFR 5.603(b)) as determined by HUD shall receive the full amount of the monthly homeownership assistance payment calculated under § 982.635. (3) A family whose annual income is greater than the low income family ceiling but does not exceed 89 percent of the median income for the area as determined by HUD shall receive a monthly homeownership assistance payment equal to 66 percent of the amount calculated under § 982.635. (4) A family whose annual income is greater than the 89 percent ceiling but does not exceed 99 percent of the median income for the area as determined by HUD shall receive a monthly homeownership assistance payment equal to 33 percent of the amount calculated under § 982.635. (5) A family whose annual income is greater than 99 percent of the median income for the area shall not receive homeownership assistance under the pilot program. (e) Assistance payments to lender. (f) Mortgage defaults. [66 FR 33613, June 22, 2001] § 982.643 Homeownership option: Downpayment assistance grants. (a) General. (2) The downpayment assistance grant must be applied toward the downpayment required in connection with the purchase of the home and/or reasonable and customary closing costs in connection with the purchase of the home. (3) If the PHA permits the downpayment grant to be applied to closing costs, the PHA must define what fees and charges constitute reasonable and customary closing costs. However, if the purchase of a home is financed with FHA mortgage insurance, such financing is subject to FHA mortgage insurance requirements, including any requirements concerning closing costs (see § 982.632(b) of this part regarding the applicability of FHA requirements to voucher homeownership assistance and § 203.27 of this title regarding allowable fees, charges and discounts for FHA-insured mortgages). (b) Maximum downpayment grant. (c) Payment of downpayment grant. (d) Administrative fee. (e) Return to tenant-based assistance. (f) Implementation of downpayment assistance grants. Federal Register. [67 FR 64494, Oct. 18, 2002]

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