[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