96-5024. Regulatory ReinventionConsolidation of Admission Preferences for Assisted Housing  

  • [Federal Register Volume 61, Number 45 (Wednesday, March 6, 1996)]
    [Rules and Regulations]
    [Pages 9040-9048]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-5024]
    
    
    
    
    [[Page 9039]]
    
    _______________________________________________________________________
    
    Part IV
    
    
    
    
    
    Department of Housing and Urban Development
    
    
    
    
    
    _______________________________________________________________________
    
    
    
    24 CFR Part 5, et al.
    
    
    
    Regulatory Reinvention: Consolidation of Admission Preferences for 
    Assisted Housing; Final Rule
    
    Federal Register / Vol. 61, No. 45 / Wednesday, March 6, 1996 / Rules 
    and Regulations 
    
    [[Page 9040]]
    
    
    DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
    Office of the Secretary
    24 CFR Parts 5, 880, 881, 882, 883, 884, 885, 886, 889, 904, 960, 
    982, and 983
    [Docket No. FR-3980-F-01]
    RIN 2501-AC10
    
    Regulatory Reinvention--Consolidation of Admission Preferences 
    for Assisted Housing
    AGENCY: Office of the Secretary, HUD.
    ACTION: Final rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: This final rule amends the various program regulations 
    governing assisted housing programs to remove the nearly identical 
    provisions concerning admission preferences found in numerous parts of 
    title 24 of the Code of Federal Regulations and adds several sections 
    on this subject in 24 CFR part 5. The amendments made by this rule do 
    not change the substance of the provisions but eliminate redundant 
    provisions by placing in a general part the provisions that derive from 
    parallel statutory provisions in the United States Housing Act of 1937.
    
    EFFECTIVE DATE: April 5, 1996.
    
    FOR FURTHER INFORMATION CONTACT: For the Section 8 project-based 
    programs other than the Moderate Rehabilitation and Project-Based 
    Certificate programs: Barbara Hunter, Director, Program Management 
    Division, Office of Housing, telephone (202) 708-3944 (voice).
        For the Section 8 Certificate, Voucher and Moderate Rehabilitation 
    programs and for the public housing program: Linda Campbell, Director 
    of Marketing, Leasing and Management Division, Office of Public and 
    Indian Housing, telephone (202) 708-0744 (voice).
        Both of these officials are located at the Department of Housing 
    and Urban Development, 451 Seventh Street, SW, Washington, D.C. 20410. 
    For hearing- or speech-impaired persons, the above-stated telephone 
    numbers may be accessed via TDD by calling the Federal Information 
    Relay Service at 1-800-877-8339.
    
    SUPPLEMENTARY INFORMATION:
    
    Paperwork Reduction Act Statement
    
        There are no changes to the information collection requirements 
    contained in these provisions. An agency may not conduct or sponsor, 
    and a person is not required to respond to, a collection of information 
    unless the collection displays a valid control number.
    
    I. Background
    
        The impetus for this rule is the Secretary's desire to simplify the 
    Department's regulations. In response to the President's initiative to 
    reinvent regulations, the Secretary has determined that the regulations 
    currently found in parts 880, 881, 882, 883, 884, 885, 886, 889, 904, 
    960, 982, and 983 concerning preferences in admission to assisted 
    housing for persons that are involuntarily displaced, living in 
    substandard housing, or paying more than 50 percent of income for rent, 
    can be consolidated into one set of provisions to apply to these 
    programs without changing the policies implemented by those provisions. 
    This consolidation will eliminate 56 pages from the Department's 
    regulations codified at title 24 of the Code of Federal Regulations.
        The continuing resolution enacted on January 26, 1996, approving 
    partial funding for the Department, provides that the statutory 
    provisions on admissions preferences implemented by the regulations 
    being consolidated in this rulemaking are suspended for Fiscal Year 
    1996. Therefore, this consolidated rule and the regulations that it 
    amends have no effect until October 1, 1996.
    
    II. Action
    
        The nearly identical provisions in parts 880, 881, 882, 883, 884, 
    885, 889, 960, 982, and 983 shown in the following chart are being 
    removed and consolidated in the corresponding sections of part 5. Cross 
    references to those sections are revised to refer to the Federal 
    preference provisions of 24 CFR part 5:
    
                       Corresponding Preference Provisions                  
                        [New provision at head of column]                   
    ------------------------------------------------------------------------
        5.410          5.415          5.420          5.425          5.430   
    ------------------------------------------------------------------------
    880.613......      880.614        880.615        880.616       880.617  
    881.613......      881.614        881.615        881.616       881.617  
    882.517......      882.518        882.519        882.520       882.521  
    883.714......      883.715        883.716        883.717       883.718  
    884.226......      884.227        884.228        884.229       884.230  
    886.132......      886.133        886.134        886.135       886.136  
    886.337......                                                           
    889.611......      889.612        889.613        889.614       889.615  
    904.122......                                                           
    960.211......      960.212        960.213        960.214       960.215  
    982.209......      982.210        982.211        982.212       982.213  
    983.203......                                                           
    ------------------------------------------------------------------------
    
    Findings and Certifications
    
    Justification for Final Rule
    
        It is HUD's policy to publish rules for public comment before their 
    issuance for effect, in accordance with its own regulations on 
    rulemaking found at 24 CFR part 10. However, part 10 provides that 
    prior public procedure will be omitted if HUD determines that it is 
    ``impracticable, unnecessary, or contrary to the public interest'' (24 
    CFR 10.1). HUD finds that in this case, prior public comment is 
    unnecessary because the removal of nearly identical program 
    requirements and consolidation of these provisions into a single part 
    does not affect or establish policy. The primary purpose of this rule 
    is to relocate provisions concerning admission preferences, not to 
    revise them.
    
    Impact on the Environment
    
        A Finding of No Significant Impact with respect to the environment 
    was made in accordance with HUD regulations at 24 CFR part 50 that 
    implement section 102(2)(C) of the National Environmental Policy Act of 
    1969, 42 U.S.C. 4332 when the admission preference rules (FR-3122 and 
    FR-3727) were promulgated as final rules. Those Findings of No 
    Significant Impact are available for public inspection and copying 
    during regular business hours (7:30 a.m. to 5:30 p.m.) in the Office of 
    the Rules Docket Clerk, room 10276, 451 Seventh Street, SW, Washington, 
    DC 20410-0500. 
    
    [[Page 9041]]
    
    
    Federalism Impact
    
        The General Counsel, as the Designated Official under section 6(a) 
    of Executive Order 12612, Federalism, has determined that actions taken 
    in this rule do not have significant impact on States or their 
    political subdivisions, since the rule merely relocates provisions 
    regarding admission preferences for assisted housing.
    
    Impact on the Family
    
        The General Counsel, as the Designated Official under Executive 
    Order 12606, The Family, has determined that this rule does not have 
    potential for significant impact on family formation, maintenance, and 
    general well-being. Therefore, the proposed rule is not subject to 
    review under the Order. No significant change in existing HUD policies 
    or programs will result from promulgation of this rule, as those 
    policies and programs relate to family concerns.
    
    Impact on Small Entities
    
        The Secretary, in accordance with the Regulatory Flexibility Act (5 
    U.S.C. 605(b)), has reviewed this rule before publication and by 
    approving it certifies that this rule will not have a significant 
    impact on a substantial number of small entities. The rule is limited 
    to consolidating identical provisions found in various program 
    regulations.
    
    Regulatory Review
    
        This rule was reviewed by the Office of Management and Budget under 
    Executive Order 12866, Regulatory Planning and Review. Any changes made 
    to the rule as a result of that review are clearly identified in the 
    docket file, which is available for public inspection at the address 
    stated above for review of the environmental finding.
    
    Catalog
    
        The Catalog of Federal Domestic Assistance numbers for the 
    program affected by this rule are 14.157, 14.182, 14.850, and 
    14.856.
    
    List of Subjects
    
    24 CFR Part 5
    
        Administrative practive and procedure, Grant programs--housing and 
    community development, Low and moderate income housing, Public housing, 
    Reporting and recordkeeping requirements.
    
    24 CFR Part 880
    
        Grant programs--housing and community development, Rent subsidies, 
    Reporting and recordkeeping requirements.
    
    24 CFR Part 881
    
        Grant programs--housing and community development, Rent subsidies, 
    Reporting and recordkeeping requirements.
    
    24 CFR Part 882
    
        Grant programs--housing and community development, Homeless, Lead 
    poisoning, Manufactured homes, Rent subsidies, Reporting and 
    recordkeeping requirements.
    
    24 CFR Part 883
    
        Grant programs--housing and community development, Rent subsidies, 
    Reporting and recordkeeping requirements.
    
    24 CFR Part 884
    
        Grant programs--housing and community development, Rent subsidies, 
    Reporting and recordkeeping requirements, Rural areas.
    
    24 CFR Part 885
    
        Aged, Individuals with disabilities, Loan programs--housing and 
    community development, Low and moderate income housing, Reporting and 
    recordkeeping requirements.
    
    24 CFR Part 886
    
        Grant programs--housing and community development, Lead poisoning, 
    Rent subsidies, Reporting and recordkeeping requirements.
    
    24 CFR Part 889
    
        Aged, Capital advance programs, Grant programs--housing and 
    community development, Loan programs--housing and community 
    development, Low and moderate income housing, Rent subsidies, Reporting 
    and recordkeeping requirements.
    
    24 CFR Part 904
    
        Grant programs--housing and community development, Loan programs--
    housing and community development, Public housing.
    
    24 CFR Part 960
    
        Aged, Grant programs--housing and community development, 
    Individuals with disabilities, Public housing.
    
    24 CFR Part 982
    
        Grant programs--housing and community development, Housing, Rent 
    subsidies, Reporting and recordkeeping requirements.
    
    24 CFR Part 983
    
        Grant programs--housing and community development, Rent subsidies, 
    Reporting and recordkeeping requirements.
    
        Accordingly, for the reasons stated in the preamble, parts 5, 880, 
    881, 882, 883, 884, 885, 886, 889, 904, 960, 982, and 983 of title 24 
    of the Code of Federal Regulations are amended as follows:
    
    PART 5--GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS
    
        1. The authority citation is revised to read as follows:
    
        Authority: 42 U.S.C. 1437a and 3535(d).
    
        2. New Secs. 5.410, 5.415, 5.420, 5.425, and 5.430, are added to 
    subpart D of part 5, to read as follows:
    
    Subpart D--Definitions and Other General Requirements for Assistance 
    Under the United States Housing Act of 1937
    
    * * * * *
    5.410  Selection preferences.
    5.415  Federal preferences: general.
    5.420  Federal preference: involuntary displacement.
    5.425  Federal preference: substandard housing.
    5.430  Federal preference: rent burden.
    
    Subpart D--Definitions and Other General Requirements for 
    Assistance Under the United States Housing Act of 1937
    
    * * * * *
    
    
    Sec. 5.410  Selection preferences.
    
        (a) Applicability. The selection preferences that are described in 
    this part are applicable to public housing and housing assisted under 
    the Section 8 Housing Assistance Payments program. (Corresponding 
    provisions applicable to the Indian housing program are found in 24 CFR 
    part 950.) These preferences are administered by the entity responsible 
    for admission functions in the programs covered (``responsible 
    entity''), i.e., the public housing agency (``HA'') in the public 
    housing and Section 8 Certificate/Voucher and Moderate Rehabilitation 
    programs and the owner in all other Section 8 programs.
        (b) Types of preference. There are three types of admission 
    preferences:
        (1) ``Federal preferences'' are admission preferences for three 
    categories of families, as prescribed in 42 U.S.C. 1437d(c)(4)(A), 
    1437f(d)(1)(A), 1437f(o)(3), and 1437f note. Federal preference is 
    given for selection of families that are:
        (i) Involuntarily displaced;
        (ii) Living in substandard housing (including families that are 
    homeless or living in a shelter for the homeless); or
        (iii) Paying more than 50 percent of family income for rent.
        
    [[Page 9042]]
    
        (2) ``Ranking preferences'' are preferences that may be established 
    by the responsible entity to use in selecting among applicants that 
    qualify for federal preferences.
        (3) ``Local preferences'' are preferences for use in selecting 
    among applicants without regard to their federal preference status. 
    (See 42 U.S.C. 1437d(c)(4)(A), 1437f(d)(1)(A), 1437f(o)(3), and 1437f 
    note.)
        (c) System. In the Section 8 programs other than the Certificate/
    Voucher and Moderate Rehabilitation programs, the owner must establish 
    a system for selection of applicants from the waiting list that 
    includes the following:
        (1) How the federal preferences will be used;
        (2) How any ranking preferences will be used;
        (3) How any local preferences will be used; and
        (4) How any residency preference will be used.
        (d) Use of preference in selection process. (1) Factors other than 
    federal and local preferences. (i) Characteristics of the unit. For 
    developments administered under the Section 8 New Construction and 
    Substantial Rehabilitation programs and the public housing program, the 
    responsible entity may match other characteristics of the applicant 
    family with the type of unit available, e.g., number of bedrooms. In 
    selection of a family for a unit that has special accessibility 
    features, the responsible entity must give preference to families that 
    include persons with disabilities who can benefit from those features 
    of the unit (see 24 CFR 8.27 and 24 CFR 100.202(c)(3)). Also, in 
    selection of a family for a unit in a mixed population project, the 
    responsible entity will give preference to elderly families and 
    disabled families (see subpart D of part 960 or Sec. 880.612a or 
    Sec. 881.612a of this title).
        (ii) Singles preference. See Sec. 5.405.
        (2) Local preference admissions. (i) Local preferences may be 
    adopted or amended by an HA to respond to local housing needs and 
    priorities after the HA has conducted a public hearing.
        (ii) For Section 8 programs other than the Section 8 Certificate/
    Voucher, Project-Based Certificate, and Moderate Rehabilitation 
    programs operated under 24 CFR part 982, 983, and 882, respectively, if 
    the owner wants to use preferences to select among applicants without 
    regard to their federal preference status, it must use the local 
    preference system adopted for use in the Section 8 Certificate/Voucher 
    programs by the housing agency for the jurisdiction. If there is more 
    than one HA for the jurisdiction, the owner shall use the local 
    preference system of the HA for the lowest level of government that has 
    jurisdiction where the project is located. For the public housing 
    program, the HA may use a local preference system it adopts for that 
    program.
        (iii) In the Section 8 programs other than the Certificate/Voucher, 
    Project-Based Certificate, and Moderate Rehabilitation programs 
    operated under 24 CFR parts 982, 983 and 882, respectively, before an 
    owner implements the HA's local preferences, the owner must receive 
    approval from the HUD Field Office. HUD shall review these preferences 
    to ensure that they are applicable to any tenant eligibility 
    limitations for the subject housing and that they are consistent with 
    HUD requirements pertaining to nondiscrimination and the Affirmative 
    Fair Housing Marketing objectives. If HUD determines that the local 
    preferences are in violation of those requirements, the owner will not 
    be permitted to admit applicants on the basis of any local preferences.
        (iv) In any year, the number of families given preference in 
    admission pursuant to a local preference over families with a federal 
    preference may not exceed the local preference limit. ``Local 
    preference limit'' means the following:
        (A) For an HA's Section 8 Certificate/Voucher program operated 
    under 24 CFR part 982, ten percent of annual waiting list admissions;
        (B) For an HA's public housing program, fifty percent of annual 
    admissions;
        (C) For an HA's Section 8 Moderate Rehabilitation program, thirty 
    percent of annual admissions;
        (D) For Section 8 New Construction, Substantial Rehabilitation, and 
    Loan Management/Property Disposition projects, thirty percent of annual 
    admissions to each project; and
        (E) For the Section 8 Project-Based Certificate program, thirty 
    percent of total annual waiting list admissions to the HA's Project-
    Based Certificate program (including admissions pursuant to 24 CFR 
    983.203(c)(3)).
        (3) Prohibition of preference if applicant was evicted for drug-
    related criminal activity. With respect to the Section 8 Certificate, 
    Voucher, Loan Management, and Property Disposition programs and the 
    public housing program, the HA may not give a preference (federal 
    preference, local preference, or ranking preference) to an applicant if 
    any member of the family is a person who was evicted during the past 
    three years from housing assisted under a 1937 Housing Act program 
    because of drug-related criminal activity. However, the HA may give an 
    admission preference in any of the following cases:
        (i) If the HA determines that the evicted person has successfully 
    completed a rehabilitation program approved by the HA;
        (ii) If the HA determines that the evicted person clearly did not 
    participate in or know about the drug-related criminal activity; or
        (iii) If the HA determines that the evicted person no longer 
    participates in any drug-related criminal activity.
        (4) Retention of federal preference status. With respect to 
    determining the preference status of an applicant for the Section 8 
    Certificate/Voucher programs, an applicant who is receiving tenant-
    based assistance under the HOME program (24 CFR part 92) and an 
    applicant who resides in public or Indian housing of the same HA (and 
    was on the tenant-based program waiting list when admitted to the HA's 
    public or Indian housing on or after April 26, 1993), the HA determines 
    whether the applicant qualifies for federal preference based on the 
    situation of the applicant at the time the applicant began to receive 
    tenant-based assistance under the HOME program or was admitted to the 
    HA's public or Indian housing program (beginning of initial public or 
    Indian housing lease).
        (e) Income-based admission. (1) In public housing, the HA may only 
    give preference to select a relatively higher income family for 
    admission if the preference is pursuant to a ``local preference'' 
    admission. (For other income-related restrictions on selection, see 24 
    CFR 913.105.)
        (2) In Section 8 programs, the responsible entity may not select a 
    family for admission in an order different from the order on the 
    waiting list for the purpose of selecting a relatively higher income 
    family for admission.
        (f) Informing applicants about admission preferences. (1) The 
    responsible entity must inform all applicants about available 
    preferences and must give applicants an opportunity to show that they 
    qualify for available preferences (federal preference, ranking 
    preference, or local preference).
        (2) If the responsible entity determines that the notification to 
    all applicants on a waiting list required by paragraph (f)(1) of this 
    section is impracticable because of the length of the list, the 
    responsible entity may provide this notification to fewer than all 
    applicants on the list at any given time. The responsible entity must, 
    however, have notified a sufficient 
    
    [[Page 9043]]
    number of applicants at any given time that, on the basis of the 
    entity's determination of the number of applicants on the waiting list 
    who already claim a federal preference and the anticipated number of 
    project admissions:
        (i) There is an adequate pool of applicants who are likely to 
    qualify for a federal preference; and
        (ii) It is unlikely that, on the basis of the responsible entity's 
    framework for applying the preferences under paragraph (c) of this 
    section and the federal preferences claimed by those already on the 
    waiting list, any applicant who has not been so notified would receive 
    assistance before those who have received notification.
        (g) Notice and opportunity for a meeting where preference is 
    denied. (1) If the responsible entity determines that an applicant does 
    not qualify for a federal preference, ranking preference, or local 
    preference claimed by the applicant, the responsible entity must 
    promptly give the applicant written notice of the determination. The 
    notice must contain a brief statement of the reasons for the 
    determination, and state that the applicant has the right to meet with 
    a representative of the responsible entity to review the determination. 
    The meeting may be conducted by any person or persons designated by the 
    responsible entity, who may be an officer or employee of the 
    responsible entity, including the person who made or reviewed the 
    determination or a subordinate employee.
        (2) The applicant may exercise other rights if the applicant 
    believes that the applicant has been discriminated against on the basis 
    of race, color, religion, sex, national origin, age, disability or 
    familial status.
        (h) Residency preferences. A ``residency preference'' is a 
    preference for admission of families that reside anywhere in a 
    specified ``residency preference area.'' A residency preference may be 
    used as a ranking or local preference.
        (1) Section 8 programs other than Certificate/Voucher and Project-
    Based Certificate. In these developments, local residency requirements 
    are prohibited.
        (2) Section 8 Certificate/Voucher and Project-Based Certificate 
    programs. Any residency preference must be approved by HUD.
        (i) A county or municipality may be used as a residency preference 
    area.
        (ii) An area smaller than a county or municipality may not be used 
    as a residency preference area.
        (3) All projects. With respect to any residency preference, 
    applicants who are working or who have been notified that they are 
    hired to work in the residency preference area shall be treated as 
    residents of the residency preference area. A residency preference may 
    not be based on how long the applicant has resided in or worked in the 
    residency preference area.
        (i) Nondiscrimination. (1) Any selection preferences must be 
    established and administered in accordance with the following 
    authorities:
        (i) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) and 
    the implementing regulations at 24 CFR part 1;
        (ii) The Fair Housing Act (42 U.S.C. 3601-3619) and the 
    implementing regulations at 24 CFR parts 100, 108, 109, and 110;
        (iii) Executive Order 11063 on Equal Opportunity in Housing and the 
    implementing regulations at 24 CFR part 107;
        (iv) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) 
    and the implementing regulations at 24 CFR part 8;
        (v) The Age Discrimination Act of 1975 (42 U.S.C. 6101-6107) and 
    the implementing regulations at 24 CFR part 146; and
        (vi) The Americans with Disabilities Act (42 U.S.C. 12101-12213) to 
    the extent applicable.
        (2) Such preferences also must be consistent with HUD's affirmative 
    fair housing objectives and (where applicable) the owner's HUD-approved 
    affirmative fair housing marketing plan.
    
    (Approved by the Office of Management and Budget under OMB control 
    numbers 2577-0105 and 2502-0372.)
    
    
    Sec. 5.415  Federal preferences: general.
    
        (a) Definitions. The definitions of these preference categories 
    stated in Secs. 5.420, 5.425, and 5.430 must be used by the responsible 
    entity, except that an HA may use its own alternative definitions if 
    they have been approved by HUD.
        (b) Ranking preferences: selection among federal preference 
    holders. The responsible entity's system of administering the federal 
    preferences (its admission policy, in the case of the Section 8 
    Certificate/Voucher programs) may provide for use of ranking preference 
    for selecting among applicants who qualify for federal preference.
        (1) The responsible entity may give preference to working 
    families--so long as the prohibition of Sec. 5.410 against selection 
    based on income and the nondiscrimination provisions that protect 
    against discrimination on the basis of age or disability are not 
    violated. (If a responsible entity adopts such a preference, it may not 
    give greater weight to an applicant based on the amount of employment 
    income, and an applicant household shall be given the benefit of the 
    preference if the head and spouse, or sole member, are age 62 or older 
    or are receiving social security disability, supplemental security 
    income disability benefits, or any other payments based on an 
    individual's inability to work.) A responsible entity may give 
    preference to graduates of, as well as active participants in, 
    educational and training programs that are designed to prepare 
    individuals for the job market. The responsible entity also may use the 
    housing agency's ``local preferences'' for the Section 8 Certificate 
    and Voucher programs to rank federal preference holders.
        (2) The ranking preferences may give different weight to the 
    federal preferences, through such means as:
        (i) Aggregating the federal preferences (e.g., provide that two 
    federal preferences outweigh one);
        (ii) Giving greater weight to holders of a particular category of 
    federal preference; or
        (iii) Giving greater weight to a federal preference holder who fits 
    a particular category of federal preference.
        (c) Qualifying for a federal preference. (1) Certification of 
    preference. An applicant may claim qualification for a federal 
    preference by certifying to the responsible entity that the family 
    qualifies for federal preference. The responsible entity must accept 
    this certification, unless the responsible entity verifies that the 
    applicant is not qualified for federal preference.
        (2) Verification of preference. (i) Before admitting an applicant 
    on the basis of a federal preference, the responsible entity must 
    require the applicant to provide information needed by the responsible 
    entity to verify that the applicant qualifies for a federal preference 
    because of the applicant's current status. The applicant's current 
    status must be determined without regard to whether there has been a 
    change in the applicant's qualification for a federal preference 
    between the time of application and selection for admission, including 
    a change from one federal preference category to another.
        (ii) In the case of Section 8 programs other than the Section 8 
    Certificate/Voucher, Project-Based Certificate, and Moderate 
    Rehabilitation programs, the owner must use the verification procedures 
    specified in Sec. 5.420(c) (involuntary displacement); Sec. 5.425(c) 
    (substandard housing); and Sec. 5.430(b) (rent burden). In the case of 
    the Section 8 Certificate/Voucher, Project-Based 
    
    [[Page 9044]]
    Certificate, and Moderate Rehabilitation programs and the public 
    housing program, the HA may adopt its own verification procedure.
        (iii) Once the responsible entity has verified an applicant's 
    qualification for a federal preference, the responsible entity need not 
    require the applicant to provide information needed by the responsible 
    entity to verify such qualification again unless:
        (A) The responsible entity determines reverification is desirable 
    because a long time has passed since verification; or
        (B) The responsible entity has reasonable grounds to believe that 
    the applicant no longer qualifies for a federal preference.
        (3) Effect of current residence in assisted housing. No applicant 
    is to be denied a federal preference for which the family otherwise 
    qualifies on the basis that the applicant already resides in assisted 
    housing; for example, the actual condition of the housing unit must be 
    considered, or the possibility of involuntary displacement resulting 
    from domestic violence must be evaluated.
        (d) Approval of special conditions satisfying preference 
    definitions. With respect to Section 8 programs other than the Section 
    8 Certificate/Voucher, Project-Based Certificate and Moderate 
    Rehabilitation programs, HUD may specify additional conditions under 
    which the federal preferences, as described in Secs. 5.420, 5.425, and 
    5.430, can be satisfied. In such cases, appropriate certification of 
    qualification must be provided. (See HUD Handbook 4350.3, which is 
    available at HUD field offices.) (Approved by the Office of Management 
    and Budget under OMB control number 2502-0372 and 2577-0105.)
    
    
    Sec. 5.420  Federal preference: involuntary displacement.
    
        (a) How applicant qualifies for displacement preference. (See 
    Sec. 5.415(a)(2) and (c)(2)(ii) for applicability of this section to 
    the Section 8 Certificate/Voucher, Project-Based Certificate, and 
    Moderate Rehabilitation programs and the public housing program.)
        (1) An applicant qualifies for a federal preference on the basis of 
    involuntary displacement if either of the following apply:
        (i) The applicant has been involuntarily displaced and is not 
    living in standard, permanent replacement housing; or
        (ii) The applicant will be involuntarily displaced within no more 
    than six months from the date of preference status certification by the 
    family or verification by the responsible entity.
        (2)(i) ``Standard, permanent replacement housing'' is housing:
        (A) That is decent, safe, and sanitary;
        (B) That is adequate for the family size; and
        (C) That the family is occupying pursuant to a lease or occupancy 
    agreement.
        (ii) ``Standard, permanent replacement housing'' does not include:
        (A) Transient facilities, such as motels, hotels, or temporary 
    shelters for victims of domestic violence or homeless families; or
        (B) In the case of domestic violence, the housing unit in which the 
    applicant and the applicant's spouse or other member of the household 
    who engages in such violence live.
        (b) Meaning of involuntary displacement. An applicant is or will be 
    involuntarily displaced if the applicant has vacated or will have to 
    vacate the unit where the applicant lives because of one or more of the 
    following:
        (1) Displacement by disaster. An applicant's unit is uninhabitable 
    because of a disaster, such as a fire or flood.
        (2) Displacement by government action. Activity carried on by an 
    agency of the United States or by any State or local governmental body 
    or agency in connection with code enforcement or a public improvement 
    or development program.
        (3) Displacement by action of housing owner. (i) Action by a 
    housing owner forces the applicant to vacate its unit.
        (ii) An applicant does not qualify as involuntarily displaced 
    because action by a housing owner forces the applicant to vacate its 
    unit unless:
        (A) The applicant cannot control or prevent the owner's action;
        (B) The owner action occurs although the applicant met all 
    previously imposed conditions of occupancy; and
        (C) The action taken by the owner is other than a rent increase.
        (iii) To qualify as involuntarily displaced because action by a 
    housing owner forces the applicant to vacate its unit, reasons for an 
    applicant's having to vacate a housing unit include, but are not 
    limited to, conversion of an applicant's housing unit to non-rental or 
    non-residential use; closing of an applicant's housing unit for 
    rehabilitation or for any other reason; notice to an applicant that the 
    applicant must vacate a unit because the owner wants the unit for the 
    owner's personal or family use or occupancy; sale of a housing unit in 
    which an applicant resides under an agreement that the unit must be 
    vacant when possession is transferred; or any other legally authorized 
    act that results or will result in the withdrawal by the owner of the 
    unit or structure from the rental market.
        (iv) Such reasons do not include the vacating of a unit by a tenant 
    as a result of actions taken by the owner because the tenant refuses:
        (A) To comply with HUD program policies and procedures for the 
    occupancy of under-occupied or overcrowded units; or
        (B) To accept a transfer to another housing unit in accordance with 
    a court decree or in accordance with policies and procedures under a 
    HUD-approved desegregation plan.
        (4) Displacement by domestic violence. (i) An applicant is 
    involuntarily displaced if:
        (A) The applicant has vacated a housing unit because of domestic 
    violence; or
        (B) The applicant lives in a housing unit with a person who engages 
    in domestic violence.
        (ii) ``Domestic violence'' means actual or threatened physical 
    violence directed against one or more members of the applicant family 
    by a spouse or other member of the applicant's household.
        (iii) To qualify as involuntarily displaced because of domestic 
    violence:
        (A) The responsible entity must determine, in accordance with HUD's 
    administrative instructions, that the domestic violence occurred 
    recently or is of a continuing nature; and
        (B) The applicant must certify that the person who engaged in such 
    violence will not reside with the applicant family unless the 
    responsible entity has given advance written approval. If the family is 
    admitted, the responsible entity may deny or terminate assistance to 
    the family for breach of this certification.
        (5) Displacement to avoid reprisals. (i) An applicant family is 
    involuntarily displaced if:
        (A) Family members provided information on criminal activities to a 
    law enforcement agency; and
        (B) Based on a threat assessment, a law enforcement agency 
    recommends rehousing the family to avoid or minimize a risk of violence 
    against family members as a reprisal for providing such information.
        (ii) The responsible entity may establish appropriate safeguards to 
    conceal the identity of families requiring protection against such 
    reprisals.
        (6) Displacement by hate crimes. (i) An applicant is involuntarily 
    displaced if:
        (A) One or more members of the applicant's family have been the 
    victim of one or more hate crimes; and 
    
    [[Page 9045]]
    
        (B) The applicant has vacated a housing unit because of such crime, 
    or the fear associated with such crime has destroyed the applicant's 
    peaceful enjoyment of the unit.
        (ii) ``Hate crime'' means actual or threatened physical violence or 
    intimidation that is directed against a person or his or her property 
    and that is based on the person's race, color, religion, sex, national 
    origin, handicap, or familial status.
        (iii) The responsible entity must determine, in accordance with 
    HUD's administrative instructions, that the hate crime involved 
    occurred recently or is of a continuing nature.
        (7) Displacement by inaccessibility of unit. An applicant is 
    involuntarily displaced if:
        (i) A member of the family has a mobility or other impairment that 
    makes the person unable to use critical elements of the unit; and
        (ii) The owner is not legally obligated to make the changes to the 
    unit that would make critical elements accessible to the disabled 
    person as a reasonable accommodation.
        (8) Displacement because of HUD disposition of multifamily project. 
    Involuntary displacement includes displacement because of disposition 
    of a multifamily rental housing project by HUD under section 203 of the 
    Housing and Community Development Amendments of 1978.
        (c) Involuntary displacement preference: Verification. A private 
    owner's verification of an applicant's involuntary displacement is 
    established by the following documentation:
        (1) Displacement by disaster. Certification, in a form prescribed 
    by the Secretary, from a unit or agency of government that an applicant 
    has been or will be displaced as a result of a disaster that results in 
    the uninhabitability of an applicant's unit.
        (2) Displacement by government action. Certification, in a form 
    prescribed by the Secretary, from a unit or agency of government that 
    an applicant has been or will be displaced by activity carried on by an 
    agency of the United States or by any State or local governmental body 
    or agency in connection with code enforcement or a public improvement 
    or development program.
        (3) Displacement by owner action. Certification, in a form 
    prescribed by the Secretary, from an owner or owner's agent that an 
    applicant had to or will have to vacate a unit by a date certain 
    because of owner action.
        (4) Displacement because of domestic violence. Certification, in a 
    form prescribed by the Secretary, of displacement because of domestic 
    violence from the local police department, social services agency, or 
    court of competent jurisdiction, or a clergyman, physician, or public 
    or private facility that provides shelter or counseling to the victims 
    of domestic violence.
        (5) Displacement to avoid reprisals. A threat assessment by a law 
    enforcement agency.
        (6) Displacement by hate crime. Certification by a law enforcement 
    agency or other reliable information.
        (7) Displacement by inaccessibility of unit. Certification by a 
    health care professional that a family member has a mobility or other 
    impairment that makes critical elements of the current unit 
    inaccessible, and statement by the owner that it is unable to make 
    necessary changes to the unit to make it accessible.
        (8) Displacement by HUD disposition of multifamily project. 
    Certification by HUD with respect to the disposition.
    
    
    Sec. 5.425  Federal preference: substandard housing.
    
        (a) When unit is substandard. (See Sec. 5.415(a)(2) and (c)(2)(ii) 
    for applicability of this section to the Section 8 Certificate/Voucher, 
    Project-Based Certificate, Moderate Rehabilitation programs and the 
    public housing program.) A unit is substandard if it:
        (1) Is dilapidated;
        (2) Does not have operable indoor plumbing;
        (3) Does not have a usable flush toilet inside the unit for the 
    exclusive use of a family;
        (4) Does not have a usable bathtub or shower inside the unit for 
    the exclusive use of a family;
        (5) Does not have electricity, or has inadequate or unsafe 
    electrical service;
        (6) Does not have a safe or adequate source of heat;
        (7) Should, but does not, have a kitchen; or
        (8) Has been declared unfit for habitation by an agency or unit of 
    government.
        (b) Other definitions. (1) Dilapidated unit. A housing unit is 
    dilapidated if:
        (i) The unit does not provide safe and adequate shelter, and in its 
    present condition endangers the health, safety, or well-being of a 
    family; or
        (ii) The unit has one or more critical defects, or a combination of 
    intermediate defects in sufficient number or extent to require 
    considerable repair or rebuilding. The defects may involve original 
    construction, or they may result from continued neglect or lack of 
    repair or from serious damage to the structure.
        (2) Homeless family. (i) An applicant that is a ``homeless family'' 
    is considered to be living in substandard housing.
        (ii) A ``homeless family'' includes:
        (A) Any person or family that lacks a fixed, regular, and adequate 
    nighttime residence; and
        (B) Any person or family that has a primary nighttime residence 
    that is:
        (1) A supervised publicly or privately operated shelter designed to 
    provide temporary living accommodations (including welfare hotels, 
    congregate shelters, and transitional housing);
        (2) An institution that provides a temporary residence for 
    individuals intended to be institutionalized; or
        (3) A public or private place not designed for, or ordinarily used 
    as, a regular sleeping accommodation for human beings.
        (iii) A ``homeless family'' does not include any person imprisoned 
    or otherwise detained pursuant to an Act of Congress or a State law.
        (3) Status of SRO housing. In determining whether an individual 
    living in single room occupancy (SRO) housing qualifies for federal 
    preference, SRO housing is not considered substandard solely because it 
    does not contain sanitary or food preparation facilities.
        (c) Substandard housing preference: verification. The following 
    provisions are applicable to private owners:
        (1) Verification that an applicant is living in substandard housing 
    consists of certification, in a form prescribed by the Secretary, from 
    a unit or agency of government or from an applicant's present landlord 
    that the applicant's unit is ``substandard housing'' (as described in 
    this section).
        (2) In the case of a ``homeless family'' (as described in this 
    section), verification consists of certification, in a form prescribed 
    by the Secretary, of this status from a public or private facility that 
    provides shelter for such individuals, or from the local police 
    department or social services agency.
    
    
    Sec. 5.430  Federal preference: rent burden.
    
        (a) Rent burden preference: how determined. (See Sec. 5.415(a)(2) 
    and (c)(2)(ii) for applicability of this section to the Section 8 
    Certificate/Voucher, Project-Based Certificate, and Moderate 
    Rehabilitation programs and the public housing program.)
        (1) ``Rent burden preference'' means the federal preference for 
    admission of applicants that pay more than 50 percent of family income 
    for rent.
        (2) For purposes of determining whether an applicant qualifies for 
    the rent burden preference: 
    
    [[Page 9046]]
    
        (i) ``Family income'' means Monthly Income, as defined in 24 CFR 
    813.102.
        (ii) ``Rent'' means:
        (A) The actual monthly amount due under a lease or occupancy 
    agreement between a family and the family's current landlord; and
        (B) For utilities purchased directly by tenants from utility 
    providers:
        (1) The utility allowance for family-purchased utilities and 
    services that is used in the HA tenant-based program; or
        (2) If the family chooses, the average monthly payments that the 
    family actually made for these utilities and services for the most 
    recent 12-month period or, if information is not obtainable for the 
    entire period, for an appropriate recent period.
        (iii) Amounts paid to or on behalf of a family under any energy 
    assistance program must be subtracted from the otherwise applicable 
    rental amount, to the extent that they are not included in the family's 
    income.
        (iv) For purposes of the Section 8 Certificate/Voucher programs, 
    rent for an applicant who owns a manufactured home, but rents the space 
    upon which it is located, includes the monthly payment to amortize the 
    purchase price of the home, calculated in accordance with HUD's 
    requirements. In addition, for this program, rent for members of a 
    cooperative means the charges under the occupancy agreement between the 
    members and the cooperative.
        (3) An applicant does not qualify for a rent burden preference if 
    either of the following is applicable:
        (i) The applicant has been paying more than 50 percent of income 
    for rent for less than 90 days.
        (ii) The applicant is paying more than 50 percent of family income 
    to rent a unit because the applicant's housing assistance for occupancy 
    of the unit under any of the following programs has been terminated 
    because of the applicant's refusal to comply with applicable program 
    policies and procedures on the occupancy of underoccupied and 
    overcrowded units:
        (A) The Section 8 programs or public and Indian housing programs 
    under the United States Housing Act of 1937;
        (B) The rent supplement program under section 101 of the Housing 
    and Urban Development Act of 1965; or
        (C) Rental assistance payments under section 236(f)(2) of the 
    National Housing Act.
        (b) Rent burden preference: verification of income and rent. The 
    owner must verify that an applicant is paying more than 50 percent of 
    family income for rent, as follows:
        (1) How to verify income. The owner must verify a family's income 
    by using the standards and procedures that it uses to verify family 
    income under 24 CFR part 813.
        (2) How to verify rent. The owner must verify the amount due to the 
    family's landlord (or cooperative) under the lease or occupancy 
    agreement:
        (i) By requiring the family to furnish copies of its most recent 
    rental (or cooperative charges) receipts (which may include canceled 
    checks or money order receipts) or a copy of the family's current lease 
    or occupancy agreement; or
        (ii) By contacting the landlord (or cooperative) or its agent 
    directly.
        (3) Utilities. To verify the actual amount that a family paid for 
    utilities and other housing services, the owner must require the family 
    to provide copies of the appropriate bills or receipts, or must obtain 
    the information directly from the utility or service supplier.
    
    PART 880-SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR NEW 
    CONSTRUCTION
    
        3. The authority citation for part 880 continues to read as 
    follows:
    
        Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), 12701, and 
    13611-13619.
    
    Subpart F--Management
    
    
    Sec. 880.603  [Amended]
    
        4. Section 880.603 is amended by:
        a. Amending the introductory text of paragraph (b) by removing the 
    phrase ``Secs. 880.613 through 880.617.'' from the end of the 
    paragraph, and adding in its place the phrase ``24 CFR part 5.'';
        b. Amending paragraph (b)(1) introductory text by removing the term 
    ``Sec. 880.613(c)(2)'' from the third sentence, and adding in its place 
    the phrase ``24 CFR part 5''; and
        c. Amending paragraph (b)(2) by removing the term 
    ``Sec. 880.613(k)'' from the fifth sentence, and adding in its place 
    ``24 CFR 5.410''.
    
    
    Sec. 880.612a  [Amended]
    
        5. In Sec. 880.612a, paragraph (g) is amended by removing the term 
    ``Sec. 880.613'' in the two places where it appears, and by adding the 
    term ``24 CFR part 5'' in those two places.
    
    
    Secs. 880.613, 880.614, 880.615, 880.616, and 880.617  [Removed]
    
        6. Sections 880.613, 880.614, 880.615, 880.616, and 880.617 are 
    removed.
    
    PART 881--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR 
    SUBSTANTIAL REHABILITATION
    
        7. The authority citation for part 881 continues to read as 
    follows:
    
        Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), 12701, and 
    13611-13619.
    
    Subpart F--Management
    
    
    Sec. 881.603  [Amended]
    
        8. Section 881.603 is amended by:
        a. Amending the introductory text of paragraph (b) by removing the 
    phrase ``Secs. 881.613 through 881.617'' from the end of the paragraph, 
    and adding in its place the phrase ``24 CFR part 5'';
        b. Amending paragraph (b)(2) introductory text by removing the term 
    ``Sec. 881.613(c)(2)'' from the third sentence, and adding in its place 
    the phrase ``24 CFR part 5''; and
        c. Amending paragraph (b)(3) by removing the term 
    ``Sec. 881.613(k)'' from the fifth sentence, and adding in its place 
    the term ``Sec. 24 CFR 5.410''.
    
    
    Sec. 881.612a  [Amended]
    
        9. In Sec. 881.612a, paragraph (g) is amended by removing the term 
    ``Sec. 881.613'' in the two places where it appears, and by adding the 
    term ``24 CFR part 5'' in those two places.
    
    
    Secs. 881.613, 881.614, 881.615, 881.616, and 881.617  [Removed]
    
        10. Sections 881.613, 881.614, 881.615, 881.616, and 881.617 are 
    removed.
    
    PART 882--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM--EXISTING 
    HOUSING
    
        11. The authority citation for part 882 is revised to read as 
    follows:
    
        Authority: 42 U.S.C. 1437a, 1437c, 1437f, and 3535(d).
    
    Subpart E--Special Procedures for Moderate Rehabilitation--Program 
    Development and Operation
    
    
    Sec. 882.514  [Amended]
    
        12. Section 882.514 is amended by:
        a. Amending paragraph (a)(1) by adding, before the term ``750'' in 
    the parenthetical phrase, the term ``5, ``, and by removing the last 
    sentence, and
        b. Amending the introductory text of paragraph (b) by removing the 
    term ``Sec. 882.517(c)(2)'' from the fourth sentence, and adding in its 
    place the phrase ``24 CFR part 5''.
    
    
    Secs. 882.517, 882.518, 882.519, 882.520, and 882.521  [Removed]
    
        13. Sections 882.517, 882.518, 882.519, 882.520, and 882.521 are 
    removed. 
    
    [[Page 9047]]
    
    
    PART 883--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM--STATE 
    HOUSING AGENCIES
    
        14. The authority citation for part 883 continues to read as 
    follows:
    
        Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
    13619.
    
    Subpart G--Management of New Construction and Substantial 
    Rehabilitation Projects
    
    
    Sec. 883.704  [Amended]
    
        15. Section 883.704 is amended by:
        a. Amending the introductory text of paragraph (b) by removing the 
    phrase ``parts 750 and 760 of chapter VII'', and adding in its place 
    the phrase ``24 CFR parts 5, 750, and 760'', and by removing the phrase 
    ``, including giving a Federal preference in accordance with 
    Sec. 883.714'' from the end of the paragraph;
        b. Amending paragraph (b)(2) by removing the term 
    ``Sec. 883.714(c)(2)'' from the third sentence, and adding in its place 
    the phrase ``24 CFR part 5''; and
        c. Amending paragraph (b)(3) by removing the term ``883.714(k)'' 
    from the third sentence, and adding in its place ``24 CFR 5.410''.
    
    
    Sec. 883.704a  [Amended]
    
        15a. In Sec. 883.704a, paragraph (g) is amended by removing the 
    term ``Sec. 883.714'' in the two places it appears, and adding in its 
    places the term ``24 CFR part 5''.
    
    
    Secs. 883.714, 883.715, 883.716, 883.717, and 883.718  [Removed]
    
        16. Sections 883.714, 883.715, 883.716, 883.717, and 883.718 are 
    removed.
    
    PART 884--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM, NEW 
    CONSTRUCTION SET-ASIDE FOR SECTION 515 RURAL RENTAL HOUSING 
    PROJECTS
    
        17. The authority citation for part 884 continues to read as 
    follows:
    
        Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
    13619.
    
        17a. The table of contents for part 884 is amended to add the 
    reference to ``Sec. 884.223a Preference for occupancy by elderly 
    families.''
    
    Subpart B--Project Development and Operation
    
    
    Sec. 884.214  [Amended]
    
        18. Section 884.214 is amended as follows:
        a. Paragraph (b)(1) is amended by removing the term 
    ``Sec. 884.226'' from the parenthetical phrase, and adding in its place 
    the phrase ``24 CFR part 5'';
        b. Paragraph (b)(2) is amended by removing the term 
    ``Sec. 884.226(c)(2)'' from the second sentence, and adding in its 
    place the phrase ``24 CFR part 5''; and
        c. Paragraph (b)(7) is revised, to read as follows:
    
    
    Sec. 884.214  Marketing.
    
    * * * * *
        (b) * * *
        (7) See 24 CFR part 5 for the informal review provisions for the 
    denial of a Federal selection preference.
    * * * * *
    
    
    Sec. 884.223a  [Amended]
    
        19. In Sec. 884.223a, paragraph (g) is amended by removing the term 
    ``Sec. 884.226'' in the two places where it appears, and by adding in 
    those places the phrase ``24 CFR part 5''.
    
    
    Secs. 884.226, 884.227, 884.228, 884.229, and 884.230  [Removed]
    
        20. Sections 884.226, 884.227, 884.228, 884.229, and 884.230 are 
    removed.
    
    PART 885--LOANS FOR HOUSING FOR THE ELDERLY OR HANDICAPPED
    
        21. The authority citation for part 885 continues to read as 
    follows:
    
        Authority: 12 U.S.C. 1701q; 42 U.S.C. 1437f and 3535(d).
    
    Subpart B--Section 202 Projects for the Elderly or Handicapped--
    Section 8 Assistance
    
    
    Sec. 885.427  [Amended]
    
        22. Section 885.427 is amended by removing the term 
    ``Secs. 880.613-880.617 of this chapter'' and adding in its place the 
    phrase ``24 CFR part 5, subpart D''.
    
    PART 886--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM--SPECIAL 
    ALLOCATIONS
    
        23. The authority citation for part 886 continues to read as 
    follows:
    
        Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
    13619.
    
    Subpart A--Additional Assistance Program for Projects With HUD-
    Insured and HUD-Held Mortgages
    
    
    Sec. 886.119  [Amended]
    
        24. In Sec. 886.119, paragraph (a)(3) is amended by removing the 
    term ``Sec. 886.132'' and adding in its place the phrase ``24 CFR part 
    5''.
        25. Section 886.132 is revised to read as follows:
    
    
    Sec. 886.132  Selection preferences.
    
        Sections 5.410 through 5.430 of this title govern the use of 
    preferences in the selection of tenants under this subpart A.
    
    
    Secs. 886.133, 886.134, 886.135, and 886.136  [Removed]
    
        26. Sections 886.133, 886.134, 886.135, and 886.136 are removed.
    
    Subpart C--Section 8 Housing Assistance Program for the Disposition 
    of HUD-Owned Projects
    
    
    Sec. 886.337  [Amended]
    
        27. Section 886.337 is amended by removing the phrase ``Sections 
    886.132 through 886.136'' and by adding the phrase ``Sections 5.410 
    through 5.430''.
    
    PART 889--SUPPORTIVE HOUSING FOR THE ELDERLY
    
        28. The authority citation for part 889 is revised to read as 
    follows:
    
        Authority: 12 U.S.C. 1701q; 42 U.S.C. 3535(d).
    
    Subpart F--Project Management
    
        29. In Sec. 889.610, paragraph (a) is revised to read as follows:
    
    
    Sec. 889.610  Selection and admission of tenants.
    
        (a) Written procedures. The owner shall adopt written tenant 
    selection procedures that ensure nondiscrimination in the selection of 
    tenants and that are consistent with the purpose of improving housing 
    opportunities for very low-income elderly persons; that are reasonably 
    related to program eligibility and an applicant's ability to perform 
    the obligations of the lease; and that conform to the requirements on 
    preferences contained in 24 CFR part 5. Owners shall promptly inform in 
    writing any rejected applicant of the grounds for any rejection. 
    Additionally, owners shall maintain a written, chronological waiting 
    list showing the name, race, gender, ethnicity and date of each person 
    applying for the program.
    * * * * *
    
    
    Secs. 889.611, 889.612, 889.613, 889.614, and 889.615  [Removed]
    
        30. Sections 889.611, 889.612, 889.613, 889.614, and 889.615 are 
    removed.
    
    PART 904--LOW RENT HOUSING HOMEOWNERSHIP OPPORTUNITIES
    
        31. The authority citation for part 904 continues to read as 
    follows:
    
        Authority: 42 U.S.C. 1437-1437ee and 3535(d). 
        
    [[Page 9048]]
    
    
    Subpart B--Turnkey III Program Description
    
    
    Sec. 904.122  [Amended]
    
        32. Section 904.122 is amended by removing the phrase 
    ``Secs. 960.211 through 960.215'' and adding in its place the phrase 
    ``24 CFR 5.410 through 5.430''.
    
    PART 960--ADMISSION TO, AND OCCUPANCY OF, PUBLIC HOUSING
    
        33. The authority citation for part 960 continues to read as 
    follows:
    
        Authority: 42 U.S.C. 1437a, 1437c, 1437d, 1437n, and 3535(d).
    
    Subpart B--Admission, Rent and Reexamination
    
    
    Sec. 960.203  [Removed and reserved]
    
        34. Section 960.203 is removed and reserved.
    
    
    Sec. 960.204  [Amended]
    
        35. In Sec. 960.204, paragraph (a) is amended by adding after the 
    word ``chapter'', the phrase ``and 24 CFR part 5''; and by removing 
    paragraph (d).
    
    
    Sec. 960.205  [Amended]
    
        36. In Sec. 960.205, paragraph (c) is amended by removing the two 
    parenthetical phrases that read ``(see Sec. 960.211)'' and ``(But see 
    Sec. 960.211(d)''.
    
    
    Sec. 960.206  [Amended]
    
        37. In Sec. 960.206, paragraph (a) is amended by removing the 
    reference to ``Sec. 960.211'' and by adding in its place the phrase 
    ``24 CFR part 5''.
    
    
    Sec. 960.207  [Amended]
    
        38. In Sec. 960.207, paragraph (a) is amended by removing the 
    phrase ``(see Sec. 960.211)''.
    
    
    Secs. 960.211, 960.212, 960.213, 960,214, and 960.215  [Removed]
    
        39. Sections 960.211, 960.212, 960.213, 960,214, and 960.215 are 
    removed.
    
    PART 982--SECTION 8 TENANT-BASED ASSISTANCE: UNIFIED RULE FOR 
    TENANT-BASED ASSISTANCE UNDER THE SECTION 8 RENTAL CERTIFICATE 
    PROGRAM AND THE SECTION 8 RENTAL VOUCHER PROGRAM
    
        40. The authority citation for part 982 continues to read as 
    follows:
    
        Authority: 42 U.S.C. 1437f and 3535(d).
    
    Subpart A--General Information
    
    
    Sec. 982.3  [Amended]
    
        41. Section 982.3 is amended by removing the definitions of 
    ``Federal preference,'' Federal preference holder,'' ``Local 
    preference,'' ``Local preference limit,'' ``Ranking preference,'' 
    ``Residency preference,'' and ``Residency preference area.''
    
    Subpart E--Admission to Tenant-Based Program
    
    
    Sec. 982.202  [Amended]
    
        42. Section 982.202 is amended by:
        a. Redesignating paragraph (b)(4)(i) as paragraph (b)(4);
        b. Redesignating paragraphs (b)(4)(i)(A), (b)(4)(i)(B), 
    (b)(4)(i)(C), (b)(4)(i)(D), and (b)(4)(i)(E), as paragraphs (b)(4)(i), 
    (b)(4)(ii), (b)(4)(iii), (b)(4)(iv), and (b)(4)(v), respectively; and
        c. Removing paragraph (b)(4)(ii).
        43. Section 982.207 is revised to read as follows:
    
    
    Sec. 982.207  Waiting list: Use of preferences.
    
        (a) The HA must use the following to select among applicants on the 
    waiting list with the same preference status:
        (1) Date and time of application; or
        (2) A drawing or other random choice technique.
        (b)(1) The method for selecting applicants from preference 
    categories must be consistent with requirements governing federal 
    preference and the singles preference, as described in 24 CFR part 5.
        (2) In its system for applying the preferences described in 24 CFR 
    part 5, the following provisions apply:
        (i) The HA may limit the number of applicants that may qualify for 
    any ranking preference or local preference.
        (ii) The local preference limit only applies to admission of an 
    applicant from the HA waiting list. A special admission is not counted 
    against the local preference limit.
        (iii) The local preference limit does not apply when an applicant 
    is received in an HA program under portability procedures. The 
    admission of a portability family by a receiving HA does not count 
    against the receiving HA local preference limit. The admission of such 
    a family (not qualified for federal preference) counts against the 
    local preference limit of the initial HA.
        (c) The method for selecting applicants from preference categories 
    must leave a clear audit trail that can be used to verify that each 
    applicant has been selected in accordance with the method specified in 
    the administrative plan.
    
    
    Secs. 982.208, 982.209, 982.210, 982.211, 982.212, and 
    982.213  [Removed]
    
        44. Sections 982.208, 982.209, 982.210, 982.211, 982.212, and 
    982.213 are removed.
    
    PART 983--SECTION 8 PROJECT-BASED CERTIFICATE PROGRAM
    
        45. The authority citation for part 983 continues to read as 
    follows:
    
        Authority: 42 U.S.C. 1437f and 3535(d).
    
    Subpart E--Management
    
    
    Sec. 983.203  [Amended]
    
        46. Section 983.203 is amended as follows:
        a. Paragraph (a)(1) is amended by removing the phrase, ``except 
    (b)(1), and 982.208 through 982.213 of this chapter'', and adding in 
    its place the phrase, ``and 24 CFR 5.410 through 5.430''; and
        b. Paragraph (a)(5) is removed, and paragraphs (a)(6) and (a)(7) 
    are redesignated as paragraphs (a)(5) and (a)(6), respectively.
    
        Dated: February 22, 1996.
    Henry G. Cisneros,
    Secretary.
    [FR Doc. 96-5024 Filed 3-5-96; 8:45 am]
    BILLING CODE 4210-32-P
    
    

Document Information

Effective Date:
4/5/1996
Published:
03/06/1996
Department:
Housing and Urban Development Department
Entry Type:
Rule
Action:
Final rule.
Document Number:
96-5024
Dates:
April 5, 1996.
Pages:
9040-9048 (9 pages)
Docket Numbers:
Docket No. FR-3980-F-01
RINs:
2501-AC10
PDF File:
96-5024.pdf
CFR: (33)
24 CFR 883.714''
24 CFR 5.415(a)(2)
24 CFR 960.211(d)''
24 CFR 5.410
24 CFR 880.603
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