94-10146. Revision to Chapter 2 of HUD Handbook on Occupancy Requirements of Subsidized Multifamily Housing Programs  

  • [Federal Register Volume 59, Number 81 (Thursday, April 28, 1994)]
    [Unknown Section]
    [Page ]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-10146]
    
    
    [Federal Register: April 28, 1994]
    
    
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    DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
    
    Office of the Assistant Secretary for Fair Housing and Equal 
    Opportunity and Housing--Federal Housing Commissioner
    [Docket No. N-94-3757; FR-3673-N-01]
    
    
    Revision to Chapter 2 of HUD Handbook on Occupancy Requirements 
    of Subsidized Multifamily Housing Programs
    
    AGENCY: Office of the Assistant Secretary for Fair Housing and Equal 
    Opportunity, HUD; and Office of the Assistant Secretary for Housing--
    Federal Housing Commissioner, HUD.
    
    ACTION: Notice.
    
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    SUMMARY: The purpose of this notice is to advise the public, 
    particularly housing managers, owners and residents of certain HUD-
    assisted housing, that the Department has revised Chapter 2 of its 
    Handbook entitled ``Occupancy Requirements of Subsidized Multifamily 
    Housing Programs'' (Handbook 4350.3, Chg-24) to address concerns raised 
    by members of the public about certain provisions of the Handbook 
    relating to occupancy policies in housing for elderly (age 62 and over) 
    persons. The supplementary information section of this notice provides 
    additional information on the changes made to Chapter 2 of the 
    Handbook.
    
    FOR FURTHER INFORMATION CONTACT: Margaret Milner, Acting Director of 
    the Office of Elderly and Assisted Housing, Office of Housing, 
    Department of Housing and Urban Development, Room 6130, or Albert 
    Sullivan, Director of the Office of Multifamily Management, Room 6160, 
    451 Seventh Street, SW, Washington, DC 20410. Telephone number (202) 
    708-4542 (voice) for Ms. Milner: (202) 708-3730 for Mr. Sullivan; or 
    (202) 708-4594 (TDD). (These telephone numbers are not toll-free.)
    
    SUPPLEMENTARY INFORMATION: The Department's Handbook 4350.3 on 
    Occupancy Requirements of Subsidized Multifamily Housing Programs (the 
    ``Handbook'') provides guidance on the occupancy policies and 
    procedures governing multifamily housing subsidized under the following 
    programs: the Section 221(d)(3) (Below Market Interest Rate) Program; 
    the Rent Supplement Program; the Section 236 Interest Reduction 
    Program; the Rental Assistance Program; the Section 8 Loan Management 
    Set-Aside Program; the Section 8 Property Disposition Set-Aside 
    Program; the Section 515/8 Farmers Home Administration Program; and the 
    Section 8 New Construction and Substantial Rehabilitation Program.
        Chapter 2 of the Handbook entitled ``Eligibility for Assistance; 
    Eligibility for Admission, Marketing and Tenant Selection'' addresses, 
    among other things, the eligibility of elderly persons and persons with 
    disabilities for multifamily housing subsidized under the covered 
    programs. Members of the public, including groups representing persons 
    with disabilities, have raised certain ``nondiscrimination'' issues 
    with respect to those portions of Sections 2-1 through 2-19 of Chapter 
    2 of the Handbook which relate to the identification of projects or 
    portions of projects that are for the exclusive use of elderly persons 
    under the following programs: Sections 221(d) (3) and (4), Section 231, 
    and Section 236.
        To clarify the Department's position on these issues, the 
    Department has revised Sections 2-1 through 2-19 of the Handbook. The 
    Department believes that the revisions made to these sections provide 
    clear and consistent direction to housing providers and to the HUD 
    Field Offices on the nondiscrimination issues raised by members of the 
    public.
        Because of the broad interest among housing managers, owners, 
    residents, and other members of the public in the subject matter 
    addressed by Chapter 2, and to ensure wide dissemination of the 
    Department's position on these issues, the Department is taking the 
    unusual step of publishing in the Federal Register its notice to the 
    Field Offices on the revisions made to Chapter 2. The notice is 
    attached as Appendix A to this document.
        In publishing this notice, the Department also clarifies that 
    Chapter 2 of the Handbook, and the revisions made to Chapter 2, do not 
    implement Subtitle D of Title VI of the Housing and Community 
    Development Act of 1992. Subtitle D addresses the subject of 
    ``Authority to Provide Preferences for Elderly Residents and Units for 
    Disabled Residents in Certain Section 8 Assisted Housing.'' The 
    Department will be issuing an interim rule on Subtitle D of Title VI.
        Chapter 2 will remain in effect, as revised by the accompanying 
    notice, pending the effective date of interim regulations for Subtitle 
    D. When interim regulations for Subtitle D have been issued, the 
    Department intends to review Chapter 2 and to make any further 
    revisions as may be appropriate.
    
        Dated: April 21, 1994.
    Roberta Achtenberg,
    Assistant Secretary for Fair Housing and Equal Opportunity.
    Nicolas P. Retsinas,
    Assistant Secretary for Housing--Federal Housing Commissioner.
    
    Appendix A
    
    Special Attention of: All Regional Administrators; Regional 
    Directors of Housing; Regional Directors of Fair Housing and Equal 
    Opportunity; Managers, Categories A, B and C Offices; Directors, 
    Housing Management Divisions, Categories A, B and C Offices; 
    Directors, Fair Housing and Equal Opportunity Divisions, Categories 
    A, B and C Offices, Loan Management Branch Chiefs
    
    Subject: Elderly Persons and Persons with Disabilities in Assisted 
    Housing--Population Mix
    
        Revisions to Chapter 2 of Handbook 4350.3, Chg-24, Occupancy 
    Requirements of Subsidized Multifamily Housing Programs, were issued 
    by the Office of Housing on January 19, 1993. Sections 2-1 through 
    2-19 of the Chapter have been questioned by a number of groups 
    representing interested parties on several grounds, including that 
    the potential exclusion of persons with dis- abilities could violate 
    the Fair Housing Act and section 504 of the 1973 Rehabilitation Act. 
    The questioned sections of the Handbook relate to the identification 
    of projects or portions of projects for the exclusive use of elderly 
    persons under the Sections 221(d) (3) and (4), 231 and 236 programs.
        Handbook guidance is necessary to insure clear and consistent 
    direction to housing providers and to the Field, and the withdrawal 
    of sections 2-1 through 2-19 of Chapter 2 could create further 
    inconsistencies, confusion, and a greater likelihood of 
    discrimination. The Department, therefore, has determined that 
    Chapter 2, sections 2-1 through 2-19 would remain in effect, as 
    modified by this Notice, pending issuance of regulations 
    implementing subtitle D of Title VI of the Housing and Community 
    Development Act of 1992. These changes do not involve provisions of 
    the handbook related to the Section 202 program. When the 
    regulations implementing subtitle D of Title VI are issued, the 
    Department intends to review Chapter 2, making revisions where 
    appropriate.
        In the interim, until handbook revisions consistent with this 
    Notice are published, the Office of Housing and the Office of Fair 
    Housing and Equal Opportunity (FH&EO) are issuing this Notice which 
    provides the following clarifications of Chapter 2:
         It was not the intent of Chapter 2 to require owners of 
    projects with units covered by the Sections 221, 231 and 236 
    programs to identify their projects or portions of their projects as 
    exclusively elderly. Therefore, the deadline for project 
    identification (next application for a rent increase or June 1994, 
    at the latest), as indicated in Figure 2-1, page 2-9, paragraph 3, 
    is hereby deleted. Owners who have not already designated their 
    project as elderly (age 62 or over) housing may choose to identify 
    the project as elderly housing at any time in the future (e.g., 
    after publication of regulations implementing subtitle D of Title 
    VI).
         If an owner identifies the project as described in 
    paragraph 2 of Figure 2.1 of Chapter 2, he or she is reminded that 
    the burden of proof supporting the identification of a project or 
    portion of a project as elderly-only housing remains with them, and 
    they may be required to document that proof to HUD and/or another 
    party at some future time.
         The number of units which are constructed to be 
    accessible to people with physical disabilities is not intended to 
    dictate any standard or cap on the number of units serving persons 
    with disabilities. In addition, references to the term ``mobility 
    impaired'' are being deleted from Chapter 2; wherever that term was 
    used, it should be replaced by ``tenants needing the accessibility 
    features of the units.''
         In Handbook 4350.3, Chg-24, Occupancy Requirements of 
    Subsidized Multifamily Housing Programs, Chapter 2, Figure 2-1, page 
    2-8:
    
    --Remove the text of the second Note, which reads: ``In some elderly 
    projects, a percentage of the units have been designed for 
    households whose heads or spouse have mobility impairments, 
    regardless of age. See paragraph 2-8c.''
    --Replace that language with the second paragraph of the ``Note'' 
    under Item No. 3, on page 2-9, which begins: ``Housing must be both 
    designed and operated for the elderly.* * *''
    
        These paragraphs were incorrectly placed when Chapter 2 was 
    printed, and this change merely corrects that error.
        Project owners are also reminded that Chapter 2 includes the 
    requirement to make reasonable accommodations to individuals with 
    disabilities and other Civil Rights requirements in addition to 
    requirements under the National Housing Act.
    Nicolas P. Retsinas,
    Assistant Secretary for Housing-Federal Housing Commissioner.
    Roberta Achtenberg,
    Assistant Secretary for Fair Housing-Equal Opportunity.
    [FR Doc. 94-10146 Filed 4-26-94; 8:45 am]
    BILLING CODE 4210-27-P
    
    
    

Document Information

Published:
04/28/1994
Department:
Housing and Urban Development Department
Entry Type:
Uncategorized Document
Action:
Notice.
Document Number:
94-10146
Pages:
0-0 (None pages)
Docket Numbers:
Federal Register: April 28, 1994, Docket No. N-94-3757, FR-3673-N-01