§ 882.335 - Special requirements for related lease shared housing.

(a) Administrative plan. (1) In the case of Related Lease Shared Housing, the administrative plan may contain policies providing for special treatment in the issuance and use of Certificates to facilitate the initial pairing of Families for assistance or the replacement of a Sharing Family that has vacated the unit.

(2) The administrative plan may permit a Certificate-holder, or a Sharing Family that is seeking to replace a Sharing Family that has vacated the unit, to locate a Family with which to share a unit from among applicants on the waiting list, who will then be issued a Certificate. The PHA may prescribe procedures for the use of the waiting list for this purpose, including limits on the number of applicants the Family may review and their place on the list.

(i) The PHA must require an applicant Family that is issued a Certificate on the basis of its willingness to share a unit with a particular Family to use the Certificate for occupancy of a unit with that Family under a Contract for Related Lease Shared Housing. However, if the Family later wants to move to another dwelling unit with continued participation in the PHA's program, the Family may select a dwelling unit in any area where the PHA is not legally barred from entering into Contracts.

(ii) If an applicant Family is intially issued a Certificate on the basis of its willingness to share a unit with a Family under a Contract for Related Lease Shared Housing, the PHA may not issue a new Certificate under § 882.209(m)(1) to the Family within 12 months of issuance of the initial Certificate, and the PHA must return the Family to the waiting list. The PHA may, at its discretion, deny such a Family's request for a new Certificate made 12 months or later after the issuance of the initial Certificate, and return the Family to the waiting list as an applicant for participation in the program. Under either of these circumstances, the position on the waiting list to which the Family is to be returned, is the place the Family would have had if it had not been given the initial Certificate.

(b) Procedure to Establish Related Lease Shared Housing. (1) To establish Related Lease Shared Housing, the two Families to be assisted must jointly request PHA approval of the proposed Leases, in accordance with § 882.209(e)(2).

(2) The request for PHA approval of the Leases must specify the proposed initial Contract Rent for occupancy by each Family. The PHA may not approve the Leases or enter into a Contract with the Owner, unless the proposed Contract Rent and Gross Rent for each Family is approvable (see § 882.320).

(3) The PHA may not approve Leases for Shared Housing unless it has first inspected the unit and determined that the housing complies with housing quality standards for Shared Housing, as established by the PHA in accordance with § 882.109 (see § 882.209(h)).

(4)(i) The Leases for each of the Sharing Families must be approved by the PHA, and must be in accordance with the requirements of § 882.209(j)(1) and this section. The PHA may specify provisions (in addition to, and consistent with, provisions required by HUD) for inclusion in Shared Housing Leases.

(ii) The Leases must provide that if one Sharing Family vacates the unit the remaining Family must promptly locate another Family that wants to occupy the unit as a Sharing Family and that is acceptable to the Owner. Failure to comply with this requirement constitutes a serious violation of the Lease.

(iii) The Lease for a successor Sharing Family must be approved by the PHA, and must be in accordance with the requirements of this paragraph.

(5) After the PHA approves the Leases for the initial Sharing Families and copies of both executed Leases have been furnished to the PHA, the PHA will execute a single Contract for the two Families. The Contract must be in the form that HUD prescribes for Related Lease Shared Housing. (For provisions on approval or disapproval of Leases and execution of required documents, see § 882.209 (k) and (l).) A new Contract will not be entered into when a successor Sharing Family executes a Lease.

(6) The Contract must specify the beginning date of the Contract term, and the Leases for the initial Sharing Families assisted under the Contract will both begin on that date.

(c) Vacancies. (1)(i) A Sharing Family must immediately notify the Owner and the PHA when it learns that the other Sharing Family plans to vacate, or has vacated, the unit.

(ii) The Owner must immediately notify the PHA upon learning that a Sharing Family plans to vacate, or has vacated, the unit.

(2) If one of the Sharing Families vacates the unit, but the other Family remains in occupancy, the following requirements apply:

(i) If the remaining Sharing Family wants to continue to receive assistance under the Contract, it must try to find a successor Sharing Family acceptable to the Owner. The PHA will approve the Lease between the Owner and the successor Sharing Family, in accordance with paragraph (b) of this section. The PHA may not approve the Lease of a successor Sharing Family, unless the remaining Sharing Family agrees to occupancy by the successor Family.

(ii) The Contract will automatically terminate at the end of the calendar month after the calendar month in which the Sharing Family vacated the unit, unless the Owner and a successor Sharing Family execute a Lease approved by the PHA for a term beginning not later than the first day after the Contract would otherwise have terminated.

(iii) If there is a successor Sharing Family, the Contract Rent for the successor Sharing Family will be the same as the Contract Rent that would have been payable for the Family it is replacing. If the successor Sharing Family is not in occupancy for a full calendar month at the beginning of its occupancy, the Contract Rent for the month must be prorated in accordance with HUD requirements.

(iv) The PHA will issue the remaining Sharing Family a new Certificate, upon request, in accordance with § 882.209(m)(1), consistent with paragraph (a)(2) of this section.

(3) If a Sharing Family vacates the unit, the Owner will receive the housing assistance payments due under the Contract for the Family for that part of the month in which the Family vacates the unit as the Family's portion of the unit is vacant. For the next month, if the Family's portion of the unit continues to remain vacant, the Owner will receive a housing assistance payment equal to 80 percent of the Contract Rent for the Family that vacated the unit. However, if the Owner collects any of the Family's share of the rent for this period, the payment must be reduced to an amount which when added to the Family's payment, does not exceed 80 pecent of the Contract Rent for the Family. Any excess must be reimbursed to the PHA.

(d) Termination of assistance for Sharing Family. The Contract will terminate if the PHA terminates assistance to either Sharing Family as provided by § 882.210, including termination for failure of a Sharing Family to submit required evidence of citizenship or eligible alien status in accordance with § 812.5. The PHA must notify the Owner of Contract termination, and the Contract will terminate at the end of the calendar month after the calendar month in which the PHA gives the notice to the Owner. The PHA will issue the remaining Sharing Family another Certificate in accordance with § 882.209(m)(1), consistent with paragraph (a)(2) of this section.

(The information collection requirements contained in paragraph (a) were approved by the Office of Management and Budget under control number 2502-0123)