[Federal Register Volume 60, Number 53 (Monday, March 20, 1995)]
[Rules and Regulations]
[Pages 14816-14861]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6358]




[[Page 14815]]

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Part II





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Secretary



_______________________________________________________________________



24 CFR Part 200 et al.



Restrictions on Assistance to Noncitizens; Final Rule

  Federal Register / Vol. 60, No. 53 / Monday, March 20, 1995 / Rules 
and Regulations   
[[Page 14816]] 

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Secretary

24 CFR Parts 200, 215, 235, 236, 247, 812, 850, 880, 881, 882, 883, 
884, 886, 887, 900, 904, 905, 912 and 960

[Docket No. R-95-1409; FR-2383-F-05]
RIN 2501-AA63


Restrictions on Assistance to Noncitizens

AGENCY: Office of the Secretary, HUD.

ACTION: Final rule.

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SUMMARY: This final rule implements Section 214 of the Housing and 
Community Development Act of 1980, as amended. Section 214 prohibits 
the Secretary of HUD from making financial assistance available to 
persons other than United States citizens, nationals, or certain 
categories of eligible noncitizens in HUD's Public Housing and Indian 
Housing programs (including homeownership), the Section 8 housing 
assistance payments programs, the Housing Development Grants program, 
the Section 236 interest reduction and rental assistance programs, the 
Rent Supplement program, and the Section 235 homeownership program. 
This final rule follows a proposed rule published on August 25, 1994, 
and takes into consideration the public comment received on the August 
25, 1994 proposed rule.

EFFECTIVE DATE: June 19, 1995.

FOR FURTHER INFORMATION CONTACT:
For the covered programs, the following persons should be contacted:
    (1) For Public Housing, Section 8 Certificate, Rental Voucher, and 
Moderate Rehabilitation (except Single Room Occupancy--``SRO'') 
programs--Edward Whipple, Rental and Occupancy Branch, Office of Public 
Housing, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Washington, DC 20410-5000, telephone (202) 708-0744;
    (2) For Indian Housing programs--Dominic Nessi, Director, Office of 
Native American Programs, Department of Housing and Urban Development, 
451 Seventh Street, SW., Washington, DC 20410-5000, telephone (202) 
708-1015;
    (3) For the Section 8 Moderate Rehabilitation SRO program--Maggie 
H. Taylor, Director, Office of Special Needs Assistance Programs, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Washington, DC 20410-7000, telephone (202) 708-4300;
    (4) For the other Section 8 programs, the Section 236 programs, 
Housing Development Grants and Rent Supplement--Barbara Hunter, Program 
Planning Division, Office of Multifamily Management, Department of 
Housing and Urban Development, 451 Seventh Street, SW., Washington, DC 
20410-8000, telephone (202) 708-3944; and
    (5) For the Section 235 homeownership program--William Heyman, 
Office of Lender Activities and Land Sales Registration, Office of 
Single Family Housing, Department of Housing and Urban Development, 451 
Seventh Street, SW., Washington, DC 20410-8000, telephone (202) 708-
1824.
    For persons with hearing impairment, the TDD number is (202) 472-
6725. None of the foregoing telephone numbers are toll-free.
SUPPLEMENTARY INFORMATION:

I. Paperwork Reduction Act Statement

    The information collection requirements contained in this rule have 
been submitted to the Office of Management and Budget (OMB) under the 
Paperwork Reduction Act of 1980, and when approved and assigned OMB 
control number(s), the control numbers will be published by separate 
notice in the Federal Register.

II. Procedural Matters

A. Implementation of Section 214

    HUD reiterates the statement made in the August 25, 1994 proposed 
rule that the restrictions on the use of assisted housing by 
noncitizens with ineligible immigration status (see 59 FR 43900-43901) 
takes effect when this final rule takes effect, which is 90 days from 
the date of publication in the Federal Register. Accordingly, until 
that time, covered entities (i.e., housing authorities, managers of 
HUD-assisted housing, and mortgagees in the Section 235 FHA insurance 
program) are not authorized to take any action based on the eligible 
immigration status of applicants and tenants.

B. Using the ``Effective Date of the Final Rule'' as the Pivotal Date, 
Rather Than ``Date of Enactment''

    HUD also reiterates its statement in the August 25, 1994 proposed 
rule concerning the use of the effective date of the final rule as the 
pivotal date rather than the date of enactment of the statute (see 59 
FR 43901). Paragraph (c)(1) of Section 214 was added by the Housing and 
Community Development Act of 1987 (the 1987 Act) and confers discretion 
on the Secretary of HUD to continue assistance or defer termination of 
assistance on behalf of an individual for whom assistance would 
otherwise be terminated if that person was ``receiving such assistance 
on the date of enactment of the Housing and Community Development Act 
of 1987.''
    The term ``date of enactment'' is also found in Section 214(d) in 
the description of the elderly persons who need not provide 
documentation of their immigration status. The statute exempts from 
such documentation any individual who is ``62 years of age or older, 
and is receiving financial assistance on the date of the enactment of 
the Housing and Community Development Act of 1987.''
    HUD has determined that the provisions of Section 214 are to 
complex to be determined self-implementing as of the date of enactment 
of the 1987 Act (February 5, 1988). Thus, the restrictions of Section 
214 will not be felt until this final rule is published and effective.

C. Nondiscrimination in Implementation of Section 214

    Several commenters stated that implementation of Section 214 could 
promote discrimination against certain minority and ethnic groups. 
Section 214 is constructed in a way that allows little discretionary 
action in its implementation. This was discussed to some extent in the 
preamble to the proposed rule (59 FR 43900). As noted in the preamble 
to the August 25, 1994 proposed rule, Section 214 is specific 
concerning those noncitizens who are eligible for HUD housing 
assistance. Section 214 also specifies the type of documentation that 
must be submitted, the type of verification to be undertaken, and the 
type of due process procedures available to individuals and families. 
Therefore, a housing authority or project owner does not have the 
discretion to accept or deny admission to certain categories of 
noncitizens, but not others, because the statute specifies the eligible 
categories. Further, the housing authority or project owner does not 
have the discretion to request certain immigration documentation from 
certain noncitizens, but not others, because the statute specifies the 
acceptable documentation as does this rule. The housing authority or 
project owner does not have the discretion to request documentation of 
citizenship status because the statute, as does this rule, provides 
that citizens only need execute a declaration of citizenship status, 
signed under penalty of perjury. HUD is aware of the sensitive nature 
of verifying eligible immigration status for HUD public housing and 
assisted housing, and has included a separate section in the 
implementing regulations setting forth applicable nondiscrimination 
requirements. In [[Page 14817]] setting forth the applicable 
nondiscrimination requirements, however, the final rule does not (nor 
did the proposed rule) summarize the content of each nondiscrimination 
statute or regulation (e.g., such as title VI of the Civil Rights Act 
of 1964 or the Fair Housing Act). These nondiscrimination statutes and 
regulations which are longstanding and applicable to almost all HUD 
programs are familiar to housing authorities and project owners.

III. Statutory and Regulatory Background

    The restrictions on providing housing assistance to noncitizens 
with ineligible immigration status have been embodied in statute since 
1980. Section 214 of the Housing and Community Development Act of 1980 
(94 Stat. 1637) (Section 214) was the original basis for restrictions 
on providing assistance to noncitizens with ineligible immigration 
status in the assisted housing programs. Section 214 was amended by 
section 329(a) of the Housing and Community Development Amendments of 
1981 (94 Stat. 408), by section 121(a)(2) of the Immigration Reform and 
Control Act of 1986 (``IRCA'', 100 Stat. 3384), and by section 164 of 
the Housing and Community Development Act of 1987 (101 Stat. 1860). 
(Section 214, as amended by these statutory sections, is codified at 42 
U.S.C. 1436a.)
    There have been several previous attempts by HUD to implement 
Section 214 by regulation. Rules, both proposed and final, were 
published in 1982 (47 FR 18914, and 47 FR 43674), 1986 (51 FR 15611), 
and 1988 (53 FR 842, and 53 FR 41038). Despite the publication of final 
rules during the period between 1982 and 1988, the statutory 
restrictions of Section 214 have not been made effective.\1\

    \1\A detailed history of the regulatory efforts to implement 
Section 214 (including why the final rules were not made effective) 
can be found in the rule published on January 13, 1988 (53 FR 842).
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    This final rule, which takes effect on June 19, 1995, follows 
publication of a proposed rule published on August 25, 1994 (59 FR 
43900) and takes into consideration public comment received on this 
proposed rule. The discussion of public comments on the August 25, 1994 
proposed rule is set forth in Section V of this preamble.

IV. Differences Between the Proposed Rule and the Final Rule

    As will be discussed in more detail in Section V of this preamble, 
very few changes were made to the Section 214 proposed regulations at 
the final rule stage because of the prescriptive nature of Section 214. 
Section 214 specifies the HUD programs that are covered by the statute, 
the categories of noncitizens that are eligible to receive HUD 
financial assistance, the procedures to be used to verify immigration 
status, the type of documentation that must be submitted, and who must 
submit this documentation, the appeal procedures to be provided to 
persons initially determined to have ineligible status, and the special 
assistance to be provided to certain families with members who have 
eligible status and those who have ineligible status. Accordingly, with 
the exception of clarifying changes, and editorial corrections, the 
principal changes made at the final rule stage are as follows:
    1. Removing housing authorities (HAs) and project owners as the 
``conduits'' in the INS appeals process. In response to public comment 
(from both representatives of housing authorities and project owners 
and representatives of resident groups), the final rule has been 
revised to allow applicants and tenants to directly appeal to INS, and 
INS to directly reply to applicants and tenants (i.e., without having 
to go through housing authorities and project owners as intermediaries 
in the INS appeal process).
    2. Clarifying that proration of assistance is not discretionary on 
the part of project owners and housing authorities. The proposed rule 
was not clear on whether proration of assistance must be provided to 
eligible mixed families, or whether the project owner or housing 
authority had the discretion to offer proration of assistance. While 
the majority of commenters appeared to understand that proration of 
assistance must be offered to eligible mixed families, the final rule 
clarifies that this is the case.
    3. Strengthening the confidentiality and privacy of information 
concerning immigration status. The final rule clarifies that HAs, 
landlords and HUD officials cannot use the information in their 
possession for any purpose other than determining an individual's 
eligibility for housing assistance.

V. Discussion of Public Comments

    This section presents the significant issues raised by the public 
commenters on the August 25, 1994 proposed rule. Several commenters 
offered editorial suggestions to certain of the regulatory suggestions, 
or revised regulatory text. Each of these suggestions is not discussed 
in this section. To the extent that the suggestion or revision helped 
clarify the meaning of the regulatory text, the suggestion was adopted. 
In several cases the editorial comment did not convey the appropriate 
meaning of the regulatory text.

Application of Rule

    Comment. Several commenters requested that the final rule 
grandfather-in all current residents and apply the rule only to 
applicants.
    HUD Response. The language of Section 214, which provides for 
preservation of assistance for those mixed families (those families who 
contain eligible and ineligible members) currently residing in HUD 
public housing and assisted housing, indicates that the Congress 
contemplated that the restrictions on housing assistance imposed by 
Section 214 would apply not only to applicants, but to tenants as well. 
(See Section 214(c)).
    Comment. Another commenter requested that the rule not require the 
head of household or adult members to have legal immigration status, 
and thus permit children who have such status to enter into lease 
agreements and contracts on behalf of the adult members.
    HUD Response. Section 214 restricts HUD from adopting the 
suggestion of the commenter. Section 214(d) provides for adult member 
to execute documents on behalf of children. Section 214(c) which 
addresses continued assistance is the statutory provision which 
requires the head of household or spouse to be a U.S. citizen or 
national, or to have the eligible immigration status listed in Section 
214. In the case of a mixed family with eligible children and two 
ineligible adults (the adults are neither U.S. citizens or meet one of 
the six specified categories of eligible immigration status) may be 
eligible for prorated assistance, as provided in the August 25, 1994 
proposed rule, and this final rule.
    Comment. Another commenter requested that the rule clarify the 
application of Section 214 vis a vis local/Federal preferences.
    HUD Response. Preferences and eligibility for public housing and 
HUD-assisted housing are two different matters. Families must first 
meet the eligibility requirements for public housing and HUD-assisted 
housing, and then local/Federal preferences are applied to eligible 
families.

Delay Effective Date of Final Rule

    Comment. Several commenters requested that HUD delay the effective 
date of the final rule for six months because of the preparation and 
staff training that will be needed by housing authorities in connection 
with implementation of Section 214. [[Page 14818]] 
    HUD Response. HUD believes that the delay of 90 days is sufficient 
time for housing authorities and HUD to prepare for implementation of 
Section 214.

Guidance to Supplement Final Rule

    Comment. Another commenter urged HUD to publish comprehensive 
guidance in connection with the publication of the final rule.
    HUD Response. HUD has every intention of issuing guidance to assist 
HAs and project owners with implementation of Section 214.

Liability of Ineligible Tenants for Reimbursement of Benefits

    Commenter. One commenter stated that an owner cannot be held 
responsible for pursuit of recapture of payment of subsidies to 
ineligible tenants.
    HUD Response. The rule does not hold owners responsible for pursuit 
of repayments of subsidies to ineligible tenants, but rather when it is 
determined that HUD assistance was paid to an ineligible tenant, ``the 
project owner is encouraged to refer to the case to the HUD Inspector 
General's office for further investigation.'' (Emphasis added; see, 
e.g., 24 CFR 200.192).

Recordkeeping

    Comment. One commenter, referring to Sec. 200.186(h) (Retention of 
documents), stated that the rule was not clear on which documents must 
be retained for a period of five years--documents for all families or 
just those families requesting an INS appeal.
    HUD Response. Section 200.186(h) and the parallel provisions in 
Secs. 812.9(h), 905.310(q), and 912.9(h) provide that the project owner 
or housing authority ``shall retain for a minimum of five years the 
following documents that may have been submitted to the project owner 
by the family or provided to the project owner as part of the INS 
appeal or the informal hearing process.'' (Emphasis added.)

Terminology

    Comment. Five commenters stated that in lieu of the terms 
``citizen'' and ``noncitizens,'' HUD should refer to the persons 
eligible to apply for HUD housing as ``authorized persons.''
    HUD Response. In using the term ``noncitizen,'' HUD's intention is 
to convey the design of Section 214. Section 214 imposes no 
restrictions on HUD housing assistance for citizens, including U.S. 
nationals, but rather, imposes restrictions on the provision of housing 
assistance to those who are not citizens, by limiting housing 
assistance to certain categories of legally admitted noncitizens. All 
categories of noncitizens who are authorized to reside in the United 
States are not necessarily authorized to receive HUD housing assistance 
(for example, student noncitizens).

Eligibility for HUD Financial Assistance

    Comment. One commuter stated that the rule does not address the 
status of ``Section 203'' preference class applicants, which, according 
to the commenter, are categorized by the Department of State as 
``spouses and children of legalization beneficiaries.''
    HUD Response. Section 214 lists those categories of noncitizens 
that are eligible for HUD housing assistance, and these categories are 
repeated in the rule with elaboration, based on information provided by 
INS. (See Section 214(a)). Section 200.182 and comparable sections 
(Secs. 812.5, 905.310(a) and 912.5) provide that an eligible noncitizen 
includes one who is lawfully present in the United States ``as a result 
of being granted conditional entry under section 203(a)(7) of the 
INA.''
    Comment. Another commenter stated that the rule does not take into 
account the transborder treaty agreements concerning Native Americans. 
The commenter noted that under these treaty agreements, many Native 
Americans have the right to cross freely into the United States and 
have the legal right to reside and work in the United States.
    HUD Response. Neither Section 214 nor these regulations interfere 
with transborder treaty agreements concerning Native Americans.
Evidence of Eligible Status

    Comment. Eight commenters stated that HUD exceeds its authority in 
implementing regulations that require documentation and verification 
from applicants. These commenters stated that the statute only imposes 
documentation requirements on noncitizens who were residing in assisted 
housing when the statute was enacted to document their ineligible 
status.
    HUD Response. HUD disagrees with the interpretation proposed by the 
commenters. The statute refers to documentation requirements ``at the 
time of application'' (see Section 214(d)(4)), and speaks in terms of 
``denying'' assistance, not just ``terminating'' assistance (see 
Section 214(d)(4)), which therefore indicate that the statute intended 
to encompass applicants, and not just those families residing in HUD 
public housing and assisted housing at the time of enactment of the 
statute.
    Comment. Eight commenters requested that the final rule require 
U.S. citizens to provide documentation of eligibility, and that 
citizenship status should be verified. Other commenters stated that a 
declaration signed under penalty of perjury, as required by the August 
25, 1994 proposed rule of U.S. citizens, is inadequate and is not a 
realistic deterrent against fraud. Another commenter stated that the 
declaration, to be signed by U.S. citizens, should require the 
individual signing the declaration to identify his or her place of 
birth, city, county and State. Another commenter requested that the 
final rule require U.S. citizens to submit the same type of 
documentation that is currently required of U.S. citizens under 
employer verification requirements. Another commenter requested that 
persons 62 years of age or older should be subject to same 
documentation requirements as everyone else.
    HUD Response. The Immigration Reform and Control Act of 1986 (IRCA) 
(Pub. L. 99-603, approved November 6, 1986) amended Section 214 by 
providing a procedure for the submission and verification of evidence 
of citizenship or eligible immigration status. The amendment 
specifically provides that U.S. citizens and nationals only need submit 
a declaration in writing, signed under penalty of perjury (Section 
214(d)). For individuals 62 years of age or older Section 214 requires 
documentation if ``such an individual is not a citizen or national of 
the United States, is not 62 years of age or older'' (Section 
214(d)(2)). Accordingly, HUD interprets this language to provide that 
individuals 62 years of age or older and receiving assistance on the 
effective date of the final rule, like citizens or nationals, need only 
submit a declaration in writing, and proof of age.
    Comment. Two commenters stated HUD should disseminate standard and 
model documents, such as a standard declaration form, and acceptable 
INS forms.
    HUD Response. In its guidance to be issued in connection with 
implementation of the final rule, HUD intends to provide as much 
information as possible to housing authorities and project owners, 
including, where appropriate, model documents, and samples of standard 
INS forms.

Documents in Languages Other Than English

    Comment. Fifteen commenters stated that there is a substantial cost 
involved with the requirement imposed on housing authorities and 
project owners to provide documents in languages [[Page 14819]] other 
than English to the extent ``feasible.'' Twelve commenters stated that 
there will be disputes over ``what is feasible.'' Six commenters stated 
that HUD should provide model notices in languages other than English. 
Another commenter stated the issue providing notification in languages 
other than English is not simply making documents available in other 
languages, but in having interpreters to interview applicants, and ask 
follow-up questions. Seven commenters stated that the translation of 
documents into other languages should be a firm requirement and not 
left to the owner's discretion.
    HUD Response. The ``feasibility'' language in the rule is to assist 
housing authorities to maintain the flexibility that they currently 
have with respect to translating documents into languages other than 
English, and to exercise judgment with respect to translating documents 
into languages of a population group which they serve, of a substantial 
number, and which speaks a language other than English. Many housing 
authorities and project owners currently, without any requirement 
imposed, translate documents into languages other than English. 
Additionally, housing authorities and project owners may have staff in 
their employ which speak languages other than English, and can assist 
residents in understanding documents. Apart from the notices, 
certifications, and documentation required by this rule, applying for 
HUD public housing or HUD assisted housing involves reviewing and 
completing documents which make reference to certain rights and 
responsibilities; for example, the application form, the lease (which 
will specify the rights of the tenant, as well as sanctions that may be 
imposed against the tenant for violation of the lease) and other 
documents which support the individual or family's eligibility for 
assisted housing (i.e., documentation of income). It is HUD's 
understanding that housing authorities and project owners currently 
make efforts to assist residents with completion of these documents, if 
not by providing translated documents, by allowing individuals the 
opportunity and time to find a family member or friend who can assist 
them with understanding and completing these documents, or in some 
cases (as mentioned above), the housing authority may have in its 
employ an individual who can provide such assistance.
    As noted in discussion of other aspects of applying for and 
residing in HUD public housing or assisted housing, HUD would like 
housing authorities and project owners to utilize procedures already in 
place with respect to implementation of this rule, to the extent 
possible. For example, the rule provides for housing authorities and 
project owners to verify immigration status at the same time other 
aspects of eligibility are verified. Similarly, HUD would like housing 
authorities and project owners to handle the documents required by this 
rule, which are important, in the same manner that they handle other 
important documents (again, the application, the lease, eviction 
notices, etc.) that specify the rights and responsibilities of the 
applicant or tenant. The ``feasibility'' language is to encourage 
housing authorities and project owners to continue procedures already 
in place to assist families whose first language is not English. 
Accordingly, HUD declines to make the translation of documents into a 
requirement, as suggested by some commenters.
When To Submit Evidence of Eligible Immigration Status

    Comment. One commenter stated that submission of evidence of 
citizenship or eligible immigration status should occur at each annual 
recertification, and not simply one time during continuously assisted 
occupancy, as the proposed rule provided. The commenter stated that INS 
forms are by their very nature ``temporary'' in every case, and noted 
that the proposed rule calls for only an initial proffer of documents 
versus a yearly demonstration of eligibility.
    HUD Response. The statute does not speak in terms of annual 
verification, but only in terms of an initial documentation and 
verification of tenants and applicants. Accordingly, HUD declines to 
revise the proposed rule to impose an annual demonstration of 
eligibility.
    Comment. Two commenters stated that the final rule must clarify 
when evidence is to be submitted by applicants. The commenters noted 
that the August 25, 1994 proposed rule stated that evidence of eligible 
status is submitted not later than the date the project owner 
anticipates or has knowledge that verification or other aspects of 
eligibility for assistance will occur.
    HUD Response. The responsibility of housing authorities and project 
owners is simply to ensure that this evidence is submitted by or within 
a reasonable time within which verification of eligibility will take 
place.

Extension of Time To Submit Evidence

    Comment. Five commenters stated that the mandatory extensions of 
time imposed by the rule will create an administrative burden for 
authorities, owners, and managers.
    HUD Response. The mandatory extensions of time are imposed by 
statute. Section 214(d)(A) requires the Secretary of HUD to provide a 
reasonable opportunity to submit evidence of eligible status if such 
evidence is not submitted at the time of application or recertification 
for financial assistance. Section 214(d) provides that ``for purposes 
of this subsection, the term `Secretary' means the Secretary of Housing 
and Urban Development, a public housing agency, or another entity that 
determines the eligibility of an individual for financial assistance.''
    Comment. Two commenters stated that the final rule should define 
what is meant by a ``reasonable period of time.'' The commenters stated 
that ``while we accept that the statute requires extensions of a 
`reasonable period of time,' we are very concerned that without further 
definition in the rule, there will be countless disputes over whether 
the extension was sufficient.'' Two commenters stated that the rule 
should require more than a self-certification that documentation is 
temporarily unavailable. Three commenters stated that extensions of 
time to submit evidence must be the exception, and not the norm.
    HUD Response. HUD believes that extensions of time will be the 
exception and not the norm, and that for those extensions requested, 
the extensions, generally, will not exceed 30 days in duration. 
However, HUD declines to establish by regulation what constitutes a 
reasonable period of time, and prefers to allow housing authorities and 
project owners the flexibility to determine what is reasonable given 
the circumstances of the particular case for extension before them.

Limiting Acceptable Immigration Evidence to INS Documents

    Comment. Four commenters stated that HUD's list of acceptable 
documents is unnecessarily narrow and will cause hardship and 
inconvenience to eligible persons. The commenters stated that the seven 
categories listed in the statute can be documented through many more 
INS-issued and non-INS-issued documents than are listed in the rule. 
Four commenters stated that requiring two documents from those 
individuals with certain I-94s is both unfair and unjustified. Four 
commenters also stated that requiring that eligibility for the 
replacement of the document be verified before the receipt can even be 
submitted defeats the whole purpose of the rule's protections against 
delay or [[Page 14820]] denial pending INS verification. Other 
commenters provided suggestions of other types of evidence that HUD and 
INS should determine as acceptable evidence of immigration status.
    HUD Response. With respect to acceptable evidence of immigration 
status, HUD follows the guidance and requirements issued by INS. 
However, the final rule provides, as did the proposed rule, that other 
acceptable documents as announced by INS will be announced by notice 
published in the Federal Register.
    Comment. One commenter stated that the list of documents of 
eligible immigration status did not reflect a proper understanding of 
INS procedures and of the Immigration Court's authority.
    HUD Response. This list was prepared in consultation with the INS. 
Again, as noted in the response to the preceding comment, any 
additional acceptable evidence or any changes to the evidence listed in 
this rule will be announced by notice in the Federal Register, and HUD 
will make any conforming amendments, as may be necessary, at the 
earliest possible opportunity.

Verification of Eligible Immigration Status

    Comment. Several commenters objected to HUD's proposed use of the 
SAVE system. The commenters stated that the SAVE system is ineffective, 
inaccurate, and costly. The commenters suggested that HUD should not 
use SAVE until it has been further tested. Other commenters encouraged 
the Secretary of HUD to waive the verification requirements of IRCA. 
Other commenters encouraged HUD to use, in lieu of SAVE, a verification 
system modeled on the current employer verification system.
    HUD Response. HUD declines to adopt the suggestions of the 
commenters, and will proceed to use the SAVE system, as provided by 
Section 214. HUD believes that since its implementation SAVE has 
significantly improved, and is more effective and accurate than at the 
time of its start-up.

When Verification Is To Occur

    Comment. Two commenters requested that the final rule provide that 
verification of immigration status occur at the time of application.
    HUD Response. HUD declines to adopt the suggestion of the 
commenters, and the final rule provides, as did the proposed rule, that 
verification of immigration status should occur at the time that 
verification of other aspects of eligibility for assistance occur.

No Delay, Denial or Termination of Assistance Pending Verification or 
Appeals Process

    Comment. Several commenters stated that applicants should not be 
admitted to housing until final eligibility is determined.
    HUD Response. The statute is very clear that ``pending verification 
or appeal, the Secretary may not delay, deny, reduce or terminate the 
individual's eligibility for financial assistance on the basis of the 
individual's immigration status.'' (See Section 214(d)(4)).
    Comment. Thirteen commenters stated that the final rule should make 
clear that applicants who reach the top of the waiting list before INS 
completes its verification must be offered housing even though eligible 
status has not been established.
    HUD Response. HUD believes that the final rule is clear on this 
issue, and no additional language need be added to the rule.

Appeal to INS of Adverse Determination Concerning Immigration Status

    Comment. Twenty commenters, representing individuals, housing 
authorities and project owners, stated that the housing authority and 
the project owner should be removed from the INS appeal process; that 
this should be exclusively between the applicant/tenant and INS.
    HUD Response. As noted earlier in this preamble, the final rule 
provides for direct applicant/tenant participation in the INS appeal 
process, and removes the housing authority or project owner as the 
intermediary. The final rule, however, provides for the housing 
authority and project owner to be copied on correspondence between INS 
and the applicant/tenant.
    Comment. One commenter stated that the proposed rule misinterpreted 
the nature of immigration hearings and the authority of immigration 
judges to bind the INS. The commenter stated that any decision by the 
immigration court is final unless reversed on appeal by the Board of 
Immigration Appeals. Another commenter stated that the rule needs to 
clearly establish what an INS appeal is because the INS has no 
regulations or procedures in place regarding appeal from secondary 
verification.
    HUD Response. In developing the proposed rule, and in developing 
this final rule, HUD solicited and received the assistance of the INS, 
and the rule reflects the input of INS. Although the INS regulations 
found in title 8 of the Code of Federal Regulations do not specifically 
reference appeal procedures applicable to the SAVE system, the INS 
regulations have procedures in place to provide for further 
determination of the accuracy of their records on noncitizens. (See 8 
CFR part 103; see generally Secs. 103.20-103.36.

Informal Fair Hearing Process

    Comment. Several commenters requested that the final rule eliminate 
the hearing process to be provided by the housing authority or project 
owner. The commenters questioned the purpose of the hearing. The 
commenters stated that the project owner is not qualified to second 
guess the entire INS process and determine that an otherwise ineligible 
person or family is ineligible. Other commenters stated that HUD should 
not adopt a procedure which carves out special rights for a particular 
category of ineligible applicant.
    HUD Response. The informal hearing process is mandated by statute. 
Section 214 provides that ``if the Secretary determines, after 
complying with the requirements of paragraph (4) (which addresses the 
INS appeal process), that such an individual is not in a satisfactory 
immigration status * * * the applicable fair hearing process shall be 
made available with respect to the individual.'' (See Section 
214(d)(4).)
    Comment. Three commenters stated that with respect to the fair 
hearing provided by the housing authority or the owner, the right to 
discovery should be limited to those documents in the HA's possession.
    HUD Response. In the matter of discovery, the HA or project owner 
only would be required to produce documents in its possession.
    Comment. Three commenters stated that the rule should require the 
housing authority or project owner to incur the costs of any 
interpretive services.
    HUD Response. HUD declines to adopt the suggestion of the 
commenter. HUD prefers to maintain the flexibility provided in the 
proposed rule, which allows for the parties to agree on the arrangement 
of interpretive services. HUD believes that in many cases, the 
applicant or tenant will rely upon a family member, relative, or friend 
to serve as the interpreter.

Preservation of Family (Mixed Family) Provisions

Mixed Families
    Comment. A few commenters urged HUD to drop the ``preservation of 
family'' provisions in the rule. The commenters stated that ineligible 
persons should not be allowed to reside in an assisted unit.
    HUD Response. The ``preservation of family'' provisions flow 
directly from [[Page 14821]] the statute. Section 214(c) provides for 
continued assistance and temporary deferral of termination of 
assistance for mixed families.
    Comment. Four commenters asked whether a mixed family may choose 
temporary deferral of termination of assistance, and then select 
prorated assistance at the end of the deferral period.
    HUD Response. A family that receives temporary deferral of 
termination of assistance bears a responsibility to make a good faith 
effort to obtain other affordable housing, and the family's efforts are 
monitored by the housing authority or project owner. If the family 
makes such good faith efforts but is unsuccessful in obtaining other 
affordable housing, the family shall be provided prorated assistance.

Continued Assistance

    Comment. Several commenters objected to the restrictive definition 
of ``family'' which determines eligibility for continued assistance. 
The commenters stated that this definition unfairly penalizes a wide 
range of families, and further stated that the requirement that the 
head of household or spouse be a U.S. citizen is discriminatory.
    HUD Response. The definition of ``family'' which determines 
eligibility for continued assistance is taken directly from the 
statute. Section 214(c)(1)(A), which addresses continued assistance, 
provides that HUD may permit the continued provision of financial 
assistance, if necessary to avoid the division of family in which: 
``the head of household or spouse is a citizen of the United States, a 
national of the United States, or an alien resident of the United 
States described in any paragraphs (1) through (6) of subsection (a). 
For purposes of this paragraph, the term `family' means a head of 
household, any spouse, any parents of the head of household, any 
parents of the spouse, and any children of the head of household or 
spouse.''
    Comment. Four commenters stated that the rule should make clear 
that housing authorities are not permitted to establish conditions for 
continued assistance that are more burdensome than permitted by 
statute. The commenters stated that this rule must set out in mandatory 
language the circumstances under which continued assistance must be 
granted.
    HUD Response. The statute permits housing authorities the 
discretion to grant continued assistance. This issue was discussed in 
detail in the preamble to the proposed rule (see 59 FR 43913-43914). 
The final rule provides (as did the proposed rule) the conditions under 
which continued assistance may be granted by housing authorities (see 
Secs. 812.11(c) and 912.11(c)).
    Comment. One commenter requested that Sec. 200.187 be revised to 
make clear that the requirements of this section, which address 
continued assistance, are not tied to the date on which the regulations 
become effective but rather continued assistance shall be determined as 
of the date following completion of the applicable hearing process.
    HUD Response. HUD believes that the commenter misunderstands the 
reference to the ``effective date of the rule'' in this provision. This 
section provides that a family that is eligible for continued 
assistance must have been receiving assistance under a covered HUD 
program as of the effective date of the rule. In other words, continued 
assistance is not available to applicant families.

Deferral of Termination of Assistance

    Comment. Five commenters requested that HUD remove the provision 
concerning temporary deferral of termination of assistance on the basis 
that this provision subjects owners and managers to legal liability. 
The commenters stated that this provision requires owners and managers 
to make a number of judgments (e.g., whether there is other affordable 
housing in the market) that would subject them to legal liability. 
Another commenter stated that this provision was discriminatory to 
other categories of residents; that no other category of resident who 
becomes ineligible for housing is protected from dislocation solely 
because the resident has not located other affordable housing. Seven 
commenters stated that the three year deferral period provided in the 
rule is too long, and that the period should be limited to six months 
or one year, at a maximum. The commenters stated that the three year 
period would adversely impact eligible families on the waiting list. 
Another commenter stated that the notification requirement imposed in 
connection with deferral of termination of assistance is burdensome.
    HUD Response. In allowing for a period of up to three years to 
defer termination of assistance, HUD is adopting the language of 
Section 214, which provides for an aggregate period of three years (see 
Section 214(c)(1)(B)). Additionally, Section 214 requires that: ``At 
the beginning of each deferral period, the public housing agency or 
other entity involved shall inform the individual and family members of 
their ineligibility for financial assistance and offer them other 
assistance in finding other affordable housing.'' (See Section 
214(c)(1)(B)). HUD believes that these ``preservation of family'' 
provisions reflect the concern of the Congress about displacement, or 
immediate displacement of families, who but for their immigration 
status, were eligible to reside in public housing or assisted housing, 
and had not otherwise presented cause for eviction or termination of 
assistance.
    Comment. Fifteen commenters stated that the August 25, 1994 
proposed rule imposes three conditions which must be met in order for a 
family to be eligible for temporary deferral of termination of 
assistance, and that families only should be required to meet one 
standard.
    HUD Response. For project owners, Sec. 200.187(c) of the final rule 
requires, as did the proposed rule, that temporary deferral of 
termination of assistance shall be granted to a mixed family if ``one 
of the following conditions is met.'' This language is not adopted in 
Secs. 812.10(c)(1), 905.310(r)(3) or 912.10(c)(1). Again, as discussed 
in detail in the preamble to the proposed rule, the statute gives 
directly to housing authorities the discretion to determine the 
appropriateness of providing continued assistance or temporary deferral 
of termination of assistance. Since this discretion is given directly 
to housing authorities, HUD cannot preempt this discretion and impose 
requirements on housing authorities. Accordingly, the ``temporary 
deferral of termination'' provisions for housing authorities more 
closely mirrors the language of the statute.
    Comment. Two commenters stated that the final rule should impose 
specific conditions on housing authorities for the granting temporary 
deferral of termination of assistance, as it did for project owners.
    HUD Response. As discussed in the preamble to the proposed rule (59 
FR 43914), Section 214 permits HUD (in the case of project owners) or 
the HA to defer termination of assistance in certain circumstances. For 
project owners, the rule requires project owners to grant this type of 
relief if a family meets certain qualifying conditions for HAs, the 
rule permits HAs to determine whether this type of relief will be 
provided, but requires the HA, in establishing its standards, to be 
guided by the standards set forth in this rule implementing Section 
214.

Proration of Assistance

    Comment. A number of commenters voiced their objection to proration 
of assistance on the basis that this process [[Page 14822]] would be an 
administrative nightmare. Several of these commenters advocated that in 
order to eliminate this burden, full assistance should be provided to a 
family when one or more members of the family have citizenship or 
eligible immigration status One commenter stated that proration of 
assistance was not supported by the language of Section 214. Another 
commenter stated that despite limiting assistance to only eligible 
family members, ineligible family members benefit from proration of 
assistance. Three other commenters suggested that only ineligible 
extended members of the family (and not core family members who have 
ineligible extended members of the family (and not core family members 
who have ineligible status) be counted as ineligible in determining 
prorated assistance. Other commenters made suggestions concerning 
alternative proration formulas, and one of these commenters suggested 
that HUD accept each housing authority's calculation of the rent level 
that would permit the housing authority to ``break even without the 
benefit of Federal subsidies.''
    HUD Response. HUD carefully considered all of the suggestions and 
recommendations made by the commenters on the proration of assistance 
provisions, and declines to make changes to the August 25, 1994 
proposed rule at the final rule stage. Proration of assistance is 
consistent with the preservation of Families provisions of Section 214, 
which provide for continued assistance and temporary deferral of 
termination of assistance. HUD believes that the proration formulas set 
forth in the rule are workable, and HUD will make every effort to 
assist housing authorities and project owners in making these formulas 
more easily workable.
    Comment. Another commenter requested clarification whether 
providing proration of assistance is discretionary on the part of the 
housing authorities.
    HUD Response. The final rule clarifies that for both housing 
authorities and project owners, proration of assistance must be offered 
to eligible mixed families.
    Comment. Four commenters asked for guidance for action to be taken 
if the family is unable to pay prorated subsidy.
    HUD Response. Housing authorities and project owners should utilize 
the procedures currently in place when a family is unable to pay its 
share of rent.
    Comment. One commenter state that the prohibition against extension 
of assistance to noncitizen students should not be extended to the 
citizen children of the noncitizen student and noncitizen spouse.
    HUD Response. The final rule provides, as did the proposed rule, 
that the prohibition on providing assistance to a noncitizen student 
does not extend to the citizen spouse of the noncitizen student and the 
children of the citizen spouse and noncitizen student. Section 214 
provides that nonimmigrant student are not eligible for financial 
assistance under the programs covered by Section 214. If the 
nonimmigrant student and the noncitizen spouse of the student have 
children born in the U.S., the citizenship status of the children would 
not be sufficient in and of itself to make the family eligible for 
prorated assistance because the fact remains that the family is in the 
United States for the purpose of the education of the nonimmigrant 
student, and not for the purpose of immigrating to the U.S. In other 
words, Section 213 covered financial assistance is not available to 
noncitizens who have not expressed an intention of immigrating to the 
United States.
Protection of Individual's Privacy

    Comment. Ten commenters stated that the proposed rule failed to 
provide effective guards against the misuse of immigration status 
information submitted by applicants and tenants, and that the final 
rule should clarify that HAs, landlords and HUD officials cannot use 
the information in their possession for any purpose other than 
determining an individual's eligibility for housing assistance.
    HUD Response. HUD agrees with the commenters and the final rule 
clarifies that immigration status information provided to HAs, 
landlords and HUD officials only may be used for purposes of 
determining an individual's eligibility for housing assistance.

Nondiscrimination Provisions

    Comment. One commenter requested that the final rule contain a 
blanket hold-harmless provision to owners in the implementation of 
Section 214.
    HUD Response. HUD declines to adopt this recommendation.
    Comment. Ten commenters stated that HUD must establish explicit 
policies which prohibit and punish foreseeable discriminatory 
applications of the noncitizens restrictions. The commenters stated 
that the proposed rule merely recites general anti-discrimination laws 
from related statutes. The commenters stated that housing authorities 
should not be able to require different evidence of citizenship or 
eligible immigration status based on foreign accents or non-English 
sounding surnames.
    HUD Response. HUD believes that the anti-discrimination statutes 
and regulations currently in place are sufficient to address 
discriminatory actions that may result in connection with 
implementation of Section 214, and establishment of additional policies 
and sanctions is not necessary. There is no need for HUD to impose 
sanctions and penalties in addition to, or similar to those imposed by 
the Fair Housing Act and Title VI of the Civil Rights Act. As discussed 
at the beginning of this preamble, Section 214 is constructed in a way 
that allows little discretionary action in its implementation. For 
example, Section 214 is very specific with respect to documentation 
requirements. Accordingly, if an individual signs a declaration under 
penalty of perjury that he or she is a citizen, that is all the 
documentation that is required under the statute and these regulations.

Administrative Burden/Unfunded Mandate

    Comment. Although commenters acknowledged HUD's statement in the 
August 25, 1994 proposed rule that the costs of automated verification 
of immigration status through the SAVE system would be billed directly 
to HUD, the majority of the commenters stated that implementation of 
Section 214 imposes a substantial administrative burden, and HUD fails 
to address reimbursement of all of the costs associated with 
implementation of this statute, such as the various notification 
requirements, document collection, hearings, record retention, and the 
time and expense of training new staff in the new procedure for 
verifying noncitizen status.
    HUD Response. HUD acknowledges that there are additional 
administrative responsibilities imposed by Section 214, and HUD has 
made every effort to minimize the administrative burden through this 
regulation. HUD will continue to make efforts to assist housing 
authorities and project owners to carry out their responsibilities 
through the guidance to be issued in connection with this final rule.

VI. Other Matters

    Executive Order 12866. This final rule was reviewed by the Office 
of Management and Budget under Executive Order 12866 as a significant 
regulatory action. Any changes made in this rule as a result of that 
review are clearly identified in the docket file for this proposed 
rule, which is available for public inspection in the Office of 
[[Page 14823]] HUD's Rules Docket Clerk, Room 10276, 451 Seventh 
Street, SW, Washington, DC. 20410-0500.
    Environmental Review. A Finding of No Significant Impact with 
respect to the environment was made in accordance with HUD regulations 
in 24 CFR part 50 that implement section 102(2)(C) of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4332) at the time of 
development of the August 25, 1994 proposed rule. That Finding remains 
applicable to this final rule, and is available for public inspection 
between 7:30 a.m. and 5:30 p.m. weekdays in the Office of the Rules 
Docket Clerk at the above address.
    Regulatory Flexibility Act. The Secretary, in accordance with the 
Regulatory Flexibility Act (5 U.S.C. 605(b)), has reviewed this final 
rule before publication, and by approving it, certifies that this rule 
does not have a significant economic impact on a substantial number of 
small entities. HUD believes that the rule, when implemented, will have 
only a minimal impact on small housing project owners, small mortgagees 
and small housing agencies, since the procedures specified to implement 
the restrictions are to require owners and HAs to use an easily 
accessible (by telephone) automated system for verifying immigration 
status. HUD has arranged for the cost of the automated verification 
system, established by the Immigration and Naturalization Service, to 
be billed directly to HUD. The only other significant element of cost 
or delay in administration of HUD programs that may be encountered by 
small entities as a result of this rule is the requirement for a fair 
hearing, on request, for any applicant or tenant found to be 
ineligible. This procedure is specifically required by 42 U.S.C. 1436a. 
However, HUD does not believe that the cost or delay related to this 
statutory requirement will be significant because HUD anticipates that 
small housing agencies, project owners and mortgagees will find that 
the majority of applicants or tenants are eligible to receive HUD 
assistance, and therefore fair hearing to determine eligibility on the 
basis of immigration status will be minimal. Accordingly, HUD concludes 
that this rule will not have a significant economic impact on a 
substantial number of small entities, an that to the extent possible, 
HUD has minimized the economic impact on all entities, consistent with 
the Secretary's responsibilities under section 143a.
    Executive Order on Federalism. The General Counsel, as the 
Designated Official under section 6(a) of Executive Order 12612, 
Federalism, has determined that the policies contained in this final 
rule will not have substantial direct effects on States or their 
political subdivisions, or the relationship between the Federal 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government. This rule 
addresses immigration, a topic exclusively the province of the Federal 
government, and the effect is the direct result of the status that 
imposes the restriction against assistance to noncitizens, rather than 
a result of HUD's exercise of discretion in promulgating a rule to 
implement the statute.
    Executive Order on the Family. The General Counsel, as the 
Designated Official under Executive Order 12606, The Family, has 
determined that the provisions of this final rule, while affecting the 
composition and well-being of families, are strictly the result of the 
statute that imposes the restriction. The only families upon whom the 
stature and the rule have an impact are those containing individuals 
with ineligible immigration status who are not receiving the benefit of 
assisted housing, or whose continued receipt of assisted housing is not 
necessary in order to avoid the division of the family. However, even 
for families that contain members with ineligible status, the rule 
strives to maintain the unity of the family under the regulatory 
provisions concerning special assistance to mixed families.
    Regulatory Agenda. This final rule was listed as sequence number 
1741 in the Department's Semiannual Agenda of Regulations published on 
November 14, 1994 (59 FR 57632, 57644), under Executive Order 12866 and 
the Regulatory Flexibility Act.

List of Subjects

24 CFR Part 200

    Administrative practice and procedure, Claims, Equal employment 
opportunity, Fair housing, Home improvement, Housing standards, 
Incorporation by reference, Lead poisoning, Loan programs--housing and 
community development, Minimum property standards, Mortgage insurance, 
Organization and functions (Government agencies), Penalties, Reporting 
and recordkeeping requirements, Social security, Unemployment 
compensation, Wages.

24 CFR Part 215

    Grant Programs--housing and community development, Rent subsidies, 
Reporting and recordkeeping requirements.
24 CFR Part 235

    Condominiums, Cooperatives, Grant programs--housing and community 
development, Low and moderate income housing, Mortgage insurance, 
Reporting and recordkeeping requirements.

24 CFR Part 236

    Grant programs--housing and community development, Low and moderate 
income housing, Mortgage insurance, Rent subsidies, Reporting and 
recordkeeping requirements.

24 CFR Part 247

    Grant programs--housing and community development, Loan programs--
housing and community development, Low and moderate income housing, 
Rent subsidies.

24 CFR Part 812

    Low and moderate income housing, Reporting and recordkeeping 
requirements.

24 CFR Part 850

    Grant programs--housing and community development, Low and moderate 
income 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 886

    Grant programs--housing and community development, Lead 
[[Page 14824]] poisoning, Rent subsidies, Reporting and recordkeeping 
requirements.

24 CFR Part 887

    Grant programs--housing and community development, Rent subsidies, 
Reporting and recordkeeping requirements.

24 CFR Part 900

    Grant programs--housing and community development, Rent subsidies.

24 CFR Part 904

    Grant programs--housing and community development, Loan programs--
housing and community development, Public housing.

24 CFR Part 905

    Aged, Energy conservation, Grant programs--housing and community 
development, Grant programs--Indians, Homeownership, Indians, 
Individuals with disabilities, Lead poisoning, Loan programs--housing 
and community development, Loan programs--Indians, Low and moderate 
income housing, Public housing, Reporting and recordkeeping 
requirements.

24 CFR Part 912

    Grant programs--housing and community development, Public housing, 
Reporting and recordkeeping requirements.

24 CFR Part 960

    Aged, Grant programs--housing and community development, 
Individuals with disabilities, Public housing.

    Accordingly, title 24 of the Code of Federal Regulations, parts 
200, 215, 235, 236, 247, 812, 880, 881, 882, 883, 884, 886, 887, 900, 
904, 905, 912 and 960 are amended as follows.

PART 200--INTRODUCTION

    1. The authority citation for part 200 is revised to read as 
follows:

    .Authority: 12 W.S.C. 1701-1715z-18; 42 U.S.C. 1436a and 
3535(d).

    2. A new subpart G, consisting of Secs. 200.180 through 200.192, is 
added to read as follows:.

Subpart G--Restrictions on Assistance to Noncitizens

Sec.
200.180  Applicability.
200.180a  Requirements concerning documents.
200.181  Definitions.
200.182  General provisions.
200.183  Submission of evidence of citizenship or eligible 
immigration status.
200.184  Documents of eligible immigration status.
200.185  Verification of eligible immigration status.
200.186  Delay, denial, reduction or termination of assistance.
200.187  Preservation of mixed families and other families.
200.188  Proration of assistance.
200.189  Prohibition of assistance to noncitizen students.
200.190  Compliance with nondiscrimination requirements.
200.191  Protection from liability for project owners, State and 
local government agencies and officials.
200.192  Liability of ineligible tenants for reimbursement of 
benefits.

Subpart G--Restrictions on Assistance to Noncitizens


Sec. 200.180  Applicability.

    (a) Covered programs/assistance. This subpart implements the 
statutory restrictions on providing financial assistance to benefit 
individuals who are not in eligible status with respect to citizenship 
or noncitizen immigration status. This subpart is applicable to 
financial assistance provided under:
    (1) Section 235 Program assistance. Section 235 of the National 
Housing Act (12 U.S.C. 1715z) (the Section 235 Program), and for which 
the implementing regulations are codified in 24 CFR part 235;
    (2) Section 236 Program assistance (below market rent only). 
Section 236 of the National Housing Act (12 W.S.C. 1715z-1) (tenants 
paying below market rent only) (the Second 236 Program), and for which 
the implementing regulations are codified in 24 CFR part 236, subpart 
D; or
    (3) Rent Supplement Program assistance. Section 101 of the Housing 
and Urban Development Act of 1965 (12 U.S.C. 1701s) (the Rent 
Supplement Program), and for which the implementing regulations are 
codified in 24 CFR part 215.
    (b) When financial assistance is considered paid. Covered financial 
assistance is considered to be provide (or paid), and the restrictions 
on providing covered financial assistance to noncitizens with 
ineligible immigration status are applicable as follows:
    (1) Payment under Section 235 Program. Financial assistance is 
considered to be paid under the Section 235 program on behalf of a 
mortgagor when:
    (i) The dwelling unit is subject to a mortgage insured under 
section 235 of the National Housing Act (and part 235 of this chapter); 
and
    (ii) Assistance payments are made to the mortgagee on behalf of the 
mortgagor under a contract between the mortgagee and the Secretary in 
accordance with section 235(b) of the National Housing Act, unless 
those assistance payments are pro-rated in accordance with 
Sec. 200.188.
    (2) Payment under Section 236 Program. Financial assistance is 
considered to be paid under the Section 236 program on behalf of a 
tenant or cooperative unit purchaser when:
    (i) The project is subject to a mortgage insured or the project is 
assisted under section 236 of the National Housing Act (and part 236 of 
this chapter) for which interest reduction payments are paid under a 
contract between the mortgagee and the Secretary; and
    (ii) The monthly rental charge paid to the owner for the dwelling 
unit is less than the HUD-approved market rent, whether or not rental 
assistance payments are also paid under a contract in accordance with 
section 236(f)(2) and part 236, subpart D, of this chapter, unless 
those assistance payments are prorated in accordance with Sec. 200.188.
    (3) Payment under Rent Supplement Program. Financial assistance is 
considered to be paid under the Rent Supplement program administered 
under section 101 of the Housing and Urban Development Act of 1965 when 
rent supplement payments are paid under a contract between the project 
owner and the Secretary in accordance with that section and part 215 of 
this chapter, unless those assistance payments are prorated in 
accordance with Sec. 200.188.
    (c) Covered individuals and entities.--(1) Covered individuals/
persons and families. The provisions of this subpart apply to both 
applicants for assistance and persons already receiving assistance 
covered under this subpart (i.e., tenants, homebuyers, cooperative 
members; see definition of ``tenant'' in Sec. 200.181). Unless the 
context clearly indicates otherwise, the terms ``individual,'' 
``person'' or ``family,'' or the plural of these terms, as used in this 
subpart apply to both an applicant and a tenant, or an applicant family 
or a tenant family.
    (2) Covered entities. The provisions of this subpart apply to both 
project owners (as defined in Sec. 200.181) and mortgagees under the 
Section 235 homeownership program. Unless the context clearly indicates 
otherwise, the term ``project owner'' as used in this subpart includes 
mortgagee.
    (d) Administration of restrictions on providing assistance. Project 
owners shall administer the restrictions on providing assistance to 
noncitizens with ineligible immigration status in accordance with the 
requirements of this subpart. [[Page 14825]] 


Sec. 200.180a  Requirements concerning documents.

    For any notice or document (decision, declaration, consent form, 
etc.) that this subpart requires the project owner to provide to an 
individual, or requires the project owner to obtain the signature of an 
individual, the project owner, where feasible, must arrange for the 
notice or document to be provided to the individual in a language that 
is understood by the individual if the individual is not proficient in 
English. (See 24 CFR 8.6 of HUD's regulations for requirements 
concerning communications with persons with disabilities.)


Sec. 200.181  Definitions.

    Assisted dwelling unit means a dwelling unit for which financial 
assistance is considered to be paid, as determined in accordance with 
Sec. 200.180.
    Child means a member of the family, other than the family head or 
spouse, who is under 18 years of age.
    Citizen means a citizen or national of the United States.
    Evidence of citizenship or eligible immigration status means the 
documents which must be submitted to evidence citizenship or eligible 
immigration status. (See Sec. 200.186(b).)
    Family. Except as may be otherwise specified in this subpart, the 
term ``family'' for purposes of this subpart shall have the same 
meaning as provided in the definition section of the regulations for 
each of the following programs: the Section 235 Program, Section 236 
Program, and the Rent Supplement Program). (See, respectively, 24 CFR 
235.5, 24 CFR 236.2, 24 CFR 215.1).
    Financial assistance or covered financial assistance. See 
Sec. 200.180.
    Head of household means the adult member of the family who is the 
head of the household for purposes of determining income eligibility 
and rent.
    HUD means the Department of Housing and Urban Development.
    INS means the U.S. Immigration and Naturalization Service.
    Mixed family means a family whose members include those with 
citizenship or eligible immigration status, and those without 
citizenship or eligible immigration status.
    National means a person who owes permanent allegiance to the United 
States, for example, as a result of birth in a United States territory 
or possession.
    Noncitizen means a person who is neither a citizen nor nation of 
the United States.
    Project owner means the person or entity that owns the housing 
project containing the assisted dwelling unit. For purposes of this 
subpart, this term includes the mortgagee, in the case of a Section 235 
mortgage.
    Section 214 means Section 214 of the Housing and Community 
Development Act of 1980, as amended (42 U.S.C. 1436a). Section 214 
restricts HUD from making financial assistance available for 
noncitizens unless they meet one of the categories of eligible 
immigration status specified in Section 214.
    Tenant means for the Rent Supplement program and the Section 236 
program, an individual or a family renting an assisted dwelling unit or 
occupying such a dwelling unit as a cooperative member. For purposes of 
simplifying the language in this subpart to include the Section 235 
homeownership program, the term tenant will also be used to include a 
homebuyer, where appropriate.


Sec. 200.182  General provisions.

    (a) Restrictions on assistance. Financial assistance under the 
programs covered by this subpart is restricted to:
    (1) Citizens; or
    (2) Noncitizens who have eligible immigration status in one of the 
following categories:
    (i) A noncitizen lawfully admitted for permanent residence, as 
defined by section 101(a)(20) of the Immigration and Nationality Act 
(INA), as an immigrant, as defined by section 101(a)(15) of the INA (8 
U.S.C. 1101(a)(20) and 1101(a)(15), respectively) (immigrants). (This 
category includes a noncitizen admitted under section 210 or 210A of 
the INA (8 U.S.C. 1160 or 1161), (special agricultural worker), who has 
been granted lawful temporary resident status);
    (ii) A noncitizen who entered the United States before January 1, 
1972, or such later date as enacted by law, and has continuously 
maintained residence in the United States since then, and who is not 
ineligible for citizenship, but who is deemed to be lawfully admitted 
for permanent residence as a result of an exercise of discretion by the 
Attorney General under section 249 of the INA (8 U.S.C. 1259);
    (iii) A noncitizen who is lawfully present in the United States 
pursuant to an admission under section 207 of the INA (8 U.S.C. 1157) 
(refugee status); pursuant to the grant of asylum (which has not been 
terminated) under section 208 of the INA (8 U.S.C. 1158) (asylum 
status); or as a result of being granted conditional entry under 
section 203(a)(7) of the INA (8 U.S.C. 1153(a)(7)) before April 1, 
1980, because of persecution or fear of persecution on account of race, 
religion, or political opinion or because of being uprooted by 
catastrophic national calamity;
    (iv) A noncitizen who is lawfully present in the United States as a 
result of an exercise of discretion by the Attorney General for 
emergent reasons or reasons deemed strictly in the public interest 
under section 212(d)(5) of the INA (8 U.S.C. 1182(d)(5)) (parole 
status);
    (v) A noncitizen who is lawfully present in the United States as a 
result of the Attorney General's withholding deportation under section 
243(h) of the INA (8 U.S.C. 1253(h)) (threat to life or freedom); or
    (vi) A noncitizen lawfully admitted for temporary or permanent 
residence under section 245A of the INA (8 U.S.C. 1255a) (amnesty 
granted under INA 245A).
    (b) Family eligibility for assistance. (1) A family shall not be 
eligible for assistance unless every member of the family residing in 
the unit is determined to have eligible status, as described in 
paragraph (a) of this section;
    (2) Despite the ineligibility of one or more family members, a 
mixed family may be eligible for one of three types of assistance 
provided in Sec. 200.187. A family without any eligible members and 
receiving assistance on June 19, 1995 may be eligible for temporary 
deferral of termination of assistance as provided in Sec. 200.187.


Sec. 200.183  Submission of evidence of citizenship or eligible 
immigration status.

    (a) General. Eligibility for assistance or continued assistance 
under a program covered by this subpart is contingent upon a family's 
submission to the project owner of the documents described in paragraph 
(b) of this section for each family member. If one or more family 
members do not have citizenship or eligible immigration status, the 
family members may exercise the election not to content to have 
eligible immigration status as provided in paragraph (e) of this 
section, and the provisions of Sec. 200.187 shall apply.
    (b) Evidence of citizenship or eligible immigration status. Each 
family member, regardless of age, must submit the following evidence to 
the project owner.
    (1) For citizens, the evidence consists of a signed declaration of 
U.S. citizenship;
    (2) For noncitizens who are 62 years of age or older or who will be 
62 years of age or older and receiving assistance under a covered 
program on June 19, 1995 the evidence consists of:
    (i) A signed declaration of eligible immigration status; and
    (ii) Proof of age document. [[Page 14826]] 
    (3) For all other noncitizens, the evidence consists of:
    (i) A signed declaration of eligible immigration status;
    (ii) The INS documents listed in Sec. 200.184; and
    (iii) A signed verification form.
    (c) Declaration. (1) For each family member who contends that he or 
she is a U.S. citizen or a noncitizen with eligible immigration status, 
the family must submit to the project owner a written declaration, 
signed under penalty of perjury, by which the family member declares 
whether he or she is a U.S. citizen or a noncitizen with eligible 
immigration status.
    (i) For each adult, the declaration must be signed by the adult.
    (ii) For each child, the declaration must be signed by an adult 
residing in the assisted dwelling unit who is responsible for the 
child.
    (2) The written declaration may be incorporated as part of the 
application for housing assistance or may constitute a separate 
document.
    (d) Verification consent form--(1) Who signs. Each noncitizen who 
declares eligible immigration status must sign a verification consent 
form as follows.
    (i) For each adult, the form must be signed by the adult.
    (ii) For each child, the form must be signed by an adult residing 
in the assisted dwelling unit who is responsible for the child.
    (2) Notice of release of evidence by project owner. The 
verification consent form shall provide that evidence of eligible 
immigration status may be released by the project owner without 
responsibility for the further use or transmission of the evidence by 
the entity receiving it, to:
    (i) HUD, as required by HUD; and
    (ii) The INS for purposes of verification of the immigration status 
of the individual.
    (3) Notice of release of evidence by HUD. The verification consent 
form also shall notify the individual of the possible release of 
evidence of eligible immigration status by HUD. Evidence of eligible 
immigration status shall only be released to the INS for purposes of 
establishing eligibility for financial assistance and not for any other 
purpose. HUD is not responsible for the future use or transmission of 
the evidence or other information by the INS.
    (e) Individuals who do not contend that they have eligible status. 
If one or more members of a family elect not to contend that they have 
eligible immigration status, and other members of the family establish 
their citizenship or eligible immigration status, the family may be 
eligible for assistance under Secs. 200.187 or 200.188, despite the 
fact that no declaration or documentation of eligible status is 
submitted for one or more members of the family. The family, however, 
must identify to the project owner, the family member (or members) who 
will elect not to contend that he or she has eligible immigration 
status.
    (f) Notification of requirements of Section 214--(1) When notice is 
to be issued. Notification of the requirement to submit evidence of 
citizenship or eligible immigration status, as required by this 
section, or to elect not to contend that one has eligible status as 
provided by paragraph (e) of this section, shall be given by the 
project owner as follows:
    (i) Applicant's notice. The notification described in paragraph 
(f)(1) of this section be given to each applicant at the time of 
application for assistance. Applicants whose applications are pending 
on June 19, 1995 shall be notified of the requirement to submit 
evidence of eligible status as soon as possible after June 19, 1995.
    (ii) Tenant's notice. The notification described in paragraph 
(f)(1) of this section shall be given to each tenant at the time of, 
and together with, the project owner's notice of regular reexamination 
of tenant income, but not later than one year following June 19, 1995.
    (iii) Timing of mortgagor's notice. A mortgagor receiving Section 
235 assistance must be provided the notification described in paragraph 
(f)(1) of this section in accordance with Sec. 235.13(b)(2) of this 
chapter.
    (2) Form and content of notice. The notice shall:
    (i) State that financial assistance is contingent upon the 
submission and verification, as appropriate, of evidence of citizenship 
or eligible immigration status as required by paragraph (a) of this 
section;
    (ii) Describe the type of evidence that must be submitted, and 
state the time period in which that evidence must be submitted (see 
paragraph (g) of this section concerning when evidence must be 
submitted); and
    (iii) State that assistance will be prorated, denied or terminated, 
as appropriate, upon a final determination of ineligibility after all 
appeals have been exhausted (see Sec. 200.186 concerning INS appeal, 
and informal hearing process by the project owner) or, if appeals are 
not pursued, at a time to be specified in accordance with HUD 
requirements. Tenants also shall be informed of how to obtain 
assistance under the preservation of families provisions of 
Sec. 200.187.
    (g) When evidence of eligible status is required to be submitted. 
The project owner shall require evidence of eligible status to be 
submitted at the times specified in paragraph (g) of this section, 
subject to any extension granted in accordance with paragraph (h) of 
this section.
    (1) Applicants. For applicants, project owners must ensure that 
evidence of eligible status is submitted not later than the date the 
project owner anticipates or has knowledge that verification of other 
aspects of eligibility for assistance will occur (see Sec. 200.185(a)).
    (2) Tenants. For tenants (i.e., persons already receiving the 
benefit of assistance in a covered program on June 19, 1995, evidence 
of eligible status is required to be submitted as follows:
    (i) For financial assistance in the form of rent supplement 
payments or Section 236 basic rent tenancy or rental assistance 
payments, the tenant shall, in accordance with the provisions of 
Secs. 215.55(a) and 236.80(a) of this chapter, submit the required 
evidence at the first regular reexamination after June 19, 1995.
    (ii) For financial assistance in the form of Section 235 assistance 
payments, the mortgagor shall submit the required evidence in 
accordance with Sec. 235.13(c) of this chapter.
    (3) New occupants of assisted units. For any new occupant of an 
assisted unit (e.g., a new family member comes to reside in the 
assisted unit), the required evidence shall be submitted at the first 
interim or regular reexamination following the person's occupancy.
    (4) Changing participation in a HUD program. Whenever a family 
applies for admission to a program covered by this subpart, evidence of 
eligible status is required to be submitted in accordance with the 
requirements of this subpart unless the family already has submitted 
the evidence to the project owner for a covered program.
    (5) One-time evidence requirement for continuous occupancy. For 
each family member, the family is required to submit evidence of 
eligible status only one time during continuously assisted occupancy 
under any covered program.
    (h) Extensions of time to submit evidence of eligible status.
    (1) When extension must be granted. The project owner shall extend 
the time, provided in paragraph (g) of this section, to submit evidence 
of eligible immigration status if the family member: [[Page 14827]] 
    (i) Submits the declaration required under Sec. 200.183(a) 
certifying that any person for whom required evidence has not been 
submitted is a noncitizen with eligible immigration status; and
    (ii) Certifies that the evidence needed to support a claim of 
eligible immigration status is temporarily unavailable, additional time 
is needed to obtain and submit the evidence; and prompt and diligent 
effort will be undertaken to obtain the evidence.
    (2) Prohibition on indefinite extension period. Any extension of 
time, if granted, shall be for a specific period of time. The 
additional time provided should be sufficient to allow the individual 
the time to obtain the evidence needed. The project owner's 
determination of the length of the extension needed shall be based on 
the circumstances of the individual case.
    (3) Grant or denial of extension to be in writing. The project 
owner's decision to grant or deny an extension as provided in paragraph 
(h)(1) of this section shall be issued to the family by written notice. 
If the extension is granted, the notice shall specify the extension 
period granted. If the extension is denied, the notice shall explain 
the reasons for denial of the extension.
    (i) Failure to submit evidence or to establish eligible status. If 
the family fails to submit required evidence of eligible immigration 
status within the time period specified in the notice, or any extension 
granted in accordance with paragraph (h) of this section, or if the 
evidence is timely submitted but fails to establish eligible 
immigration status, the project owner shall proceed to deny, prorate or 
terminate assistance, or provide continued assistance or temporary 
deferral of termination of assistance, as appropriate, in accordance 
with the provisions of Secs. 200.186 and 200.187.


Sec. 200.184  Documents of eligible immigration status.

    (a) General. A project owner shall request and review original 
documents of eligible immigration status. The project owner shall 
retain photocopies of the documents for its own records and return the 
original documents to the family.
    (b) Acceptable evidence of eligible immigration status. The 
original of one of the following documents is acceptable evidence of 
eligible immigration status, subject to verification in accordance with 
Sec. 200.185.
    (1) Form I-551, Alien Registration Receipt Card (for permanent 
resident aliens);
    (2) Form I-94, Arrival-Departure Record, with one of the following 
annotations:
    (i) ``Admitted as Refugee Pursuant to Section 207'';
    (ii) ``Section 208'' or ``Asylum'';
    (iii) ``Section 243(h)'' or ``Deportation stayed by Attorney 
General'';
    (iv) ``Paroled Pursuant to Sec. 212(d)(5) of the INA'';
    (3) If Form I-94, Arrival-Departure Record, is not annotated, then 
accompanied by one of the following documents:
    (i) A final court decision granting asylum (but only if no appeal 
is taken);
    (ii) A letter from an INS asylum officer granting asylum (if 
application is filed on or after October 1, 1990) or from an INS 
district director granting asylum (if application filed before October 
1, 1990);
    (iii) A court decision granting withholding or deportation; or
    (iv) A letter from an INS asylum officer granting withholding of 
deportation (if application filed on or after October 1, 1990).
    (4) Form I-688, Temporary Resident Card, which must be annotated 
``Section 245A'' or ``Section 210'';
    (5) Form I-688B, Employment Authorization Card, which must be 
annotated ``Provision of Law 274a.12(11)'' or ``Provision of Law 
274a.12'';
    (6) A receipt issued by the INS indicating that an application for 
issuance of a replacement document in one of the above-listed 
categories has been made and the applicant's entitlement to the 
document has been verified; or
    (c) Other acceptable evidence. If other documents are determined by 
the INS to constitute acceptable evidence of eligible immigration 
status, they will be announced by notice published in the Federal 
Register.


Sec. 200.185  Verification of eligible immigration status.

    (a) When verification is to occur. Verification of eligible 
immigration status shall be conducted by the project owner 
simultaneously with verification of other aspects of eligibility for 
assistance or continued eligibility for assistance under a covered 
program. The project owner shall verify eligible immigration status in 
accordance with the INS procedures described in this section.
    (b) Primary verification.--(1) Automated verification system. 
Primary verification of the immigration status of the person is 
conducted by the project owner through the INS automated system (INS 
Systematic Alien Verification for Entitlements (SAVE)). The INS SAVE 
system provides access to names, file numbers and admission numbers of 
noncitizens.
    (2) Failure of primary verification to confirm eligible immigration 
status. If the INS SAVE system does not verify eligible immigration 
status, secondary verification must be performed.
    (c) Secondary verification.--(1) Manual search of INS records. 
Secondary verification is a manual search by the INS of its records to 
determine an individual's immigration status. The project owner must 
request secondary verification, within 10 days of receiving the results 
of the primary verification, if the primary verification system does 
not confirm eligible immigration status, or if the primary verification 
system verifies immigration status that is ineligible for assistance 
covered by this subpart.
    (2) Secondary verification initiated by project owner. Secondary 
verification is initiated by the project owner forwarding photocopies 
of the original INS documents listed in Sec. 200.184 (front and back), 
attached to the INS document verification request form G-845S (Document 
Verification Request), or such other form specified by the INS to a 
designated INS office for review. (Form G-845S is available from the 
local INS Office.)
    (3) Failure of secondary verification to confirm eligible 
immigration status. If the secondary verification does not confirm 
eligible immigration status, the project owner shall issue to the 
family the notice described in Sec. 200.186(d), which includes 
notification of appeal to the INS of the INS finding on immigration 
status (see Sec. 200.186(d)(4)).
    (d)  Exemption from liability for INS verification. The project 
owner shall not be liable for any action, delay, or failure of the INS 
in conducting the automated or manual verification.


Sec. 200.186  Delay, denial, reduction or termination of assistance.

    (a) General. Assistance to a family may not be delayed, denied, 
reduced or terminated because of the immigration status of a family 
except as provided in this section.
    (b) Restrictions on delay, denial, reduction or termination of 
assistance.--(1) Restrictions on reduction, denial or termination of 
assistance. Assistance to an applicant shall not be reduced or denied, 
and assistance to a tenant shall not be delayed, denied, reduced, or 
terminated, on the basis of ineligible immigration status of a family 
member if:
    (i) The primary and secondary verification of any immigration 
[[Page 14828]] documents that were timely submitted has not been 
completed;
    (ii) The family member for whom required evidence has not been 
submitted has moved from the assisted dwelling unit;
    (iii) The family member who is determined not to be in an eligible 
immigration status following INS verification has moved from the 
assisted dwelling unit;
    (iv) The INS appeals process under Sec. 200.186(e) has not been 
concluded; or
    (v) For a tenant, the informal hearing process under 
Sec. 200.186(f) has not been concluded.
    (2) Restrictions on denial or termination. Assistance to an 
applicant shall not be denied, and assistance to a tenant shall not be 
terminated, on the basis of ineligible immigration status of a family 
member if:
    (i) Assistance is prorated in accordance with Sec. 200.188;
    (ii) Assistance for a mixed family is continued in accordance with 
Sec. 200.187; or
    (iii) Deferral of termination of assistance is granted in 
accordance with Sec. 200.187.
    (3) When delay of assistance to an applicant is permissible. 
Assistance to an applicant may be delayed after the conclusion of the 
INS appeal process, but not denied until the conclusion of the informal 
hearing process, if an informal hearing is requested by the family.
    (c) Events causing denial or termination of assistance.--(1) 
General. Assistance to an applicant shall be denied, and a tenant's 
assistance shall be terminated, in accordance with the procedures of 
this section, upon the occurrence of any of the following events:
    (i) Evidence of citizenship (i.e., the declaration) and eligible 
immigration status is not submitted by the date specified in 
Sec. 200.183(g) or by the expiration of any extension granted in 
accordance with Sec. 200.183(h); or
    (ii) Evidence of citizenship and eligible immigration status is 
timely submitted, but INS primary and second verification does not 
verify eligible immigration status of a family member; and
    (A) The family does not pursue INS appeal or informal hearing 
rights as provided in this section; or
    (B) INS appeal and informal hearing rights are pursued, but the 
final appeal or hearing decisions are decided against the family 
member.
    (2) Termination of assisted occupancy. For termination of assisted 
occupancy, see paragraph (i) of this section.
    (d) Notice of denial or termination of assistance. The notice of 
denial or termination of assistance shall advise the family:
    (1) That financial assistance will be denied or terminated, and 
provide a brief explanation of the reasons for the proposed denial or 
termination of assistance;
    (2) That the family may be eligible for proration of assistance as 
provided under Sec. 200.188;
    (3) In the case of a tenant, the criteria and procedures for 
obtaining relief under the preservation of families provision in 
Sec. 200.187;
    (4) That the family has a right to request an appeal to the INS of 
the results of secondary verification of immigration status and to 
submit additional documentation or a written explanation in support of 
the appeal in accordance with the procedures of paragraph (e) of this 
section;
    (5) That the family has a right to request an informal hearing with 
the project owner either upon completion of the INS appeal or in lieu 
of the INS appeal as provided in paragraph (f) of this section;
    (6) For applicants, the notice shall advise that assistance may not 
be delayed until the conclusion of the INS appeal process, but 
assistance may be delayed during the pendency of the informal hearing 
process.
    (e) Appeal by applicant to the INS.--(1) Submission of request for 
appeal. Upon receipt of notification by the project owner that INS 
secondary verification failed to confirm eligible immigration status, 
the project owner shall notify the family of the results of the INS 
verification, and the family shall have 30 days from the date of the 
project owner's notification, to request an appeal of the INS results. 
The request for appeal shall be made by the family communicating that 
request in writing directly to the INS. The family must provide the 
project owner with a copy of the written request for appeal and proof 
of mailing. For good cause shown, the project owner shall grant the 
family an extension of the time within which to request an appeal.
    (2) Documentation to be submitted as part of appeal to INS. The 
family shall forward to the designated INS office any additional 
documentation or written explanation in support of the appeal. This 
material must include a copy of the INS document verification request 
form G-845S (used to process the secondary verification request) or 
such other form specified by the INS, and a cover letter indicating 
that the family is request an appeal of the INS immigration status 
verification results. (Form G-845S is available from the local INS 
Office.)
    (3) Decision by INS.--(i) When decision will be issued. The INS 
will issue to the family, with a copy to the project owner, a decision 
within 30 days of its receipt of documentation concerning the family's 
appeal of the verification of immigration status. If, for any reason, 
the INS is unable to issue a decision within the 30 day time period, 
the INS will inform the family and project owner of the reasons for the 
delay.
    (ii) Notification of INS decision and of informal hearing 
procedures. When the project owner receives a copy of the INS decision, 
the project owner shall notify the family of its right to request an 
informal hearing on the PHA's ineligibility determination in accordance 
with the procedures of paragraph (f) of this section.
    (4) No delay, denial, reduction, or termination of assistance until 
completion of INS appeal process; direct appeal to INS. Pending the 
completion of the INS appeal under this section, assistance may not be 
delayed, denied, reduced or terminated on the basis of immigration 
status.
    (f) Informal hearing--(1) When request for hearing is to be made. 
After notification of the INS decision on appeal, or in lieu of request 
of appeal to the INS, the family may request that the project owner 
provide a hearing. This request must be made either within 14 days of 
the date the project owner mails or delivers the notice under paragraph 
(d) of this section, or within 14 days of the mailing of the INS appeal 
decision issued in accordance with paragraph (e) of this section 
(established by the date of postmark).
    (2) Extension of time to request hearing. The project owner shall 
extend the period of time for requesting a hearing (for a specified 
period) upon good cause shown.
    (3) Informal hearing procedures. A family who submits a timely 
request for a hearing with the project owner shall have an opportunity 
for:
    (i) Hearing before an impartial individual. The family shall be 
provided a hearing before any person(s) designated by the project owner 
(including an officer or employee of the project owner), other than a 
person who made or approved the decision under review, and other than a 
person who is a subordinate of the person who made or approved the 
decision;
    (ii) Examination of evidence. The family shall be provided the 
opportunity to examine and copy at the individual's expense, at a 
reasonable time in advance of the hearing, any [[Page 14829]] documents 
in the possession of the project owner pertaining to the family's 
eligibility status, or in the possession of the INS (as permitted by 
INS requirements), including any records and regulations that may be 
relevant to the hearing;
    (iii) Presentation of evidence and arguments in support of eligible 
status. The family shall be provided the opportunity to present 
evidence and arguments in support of eligible status. Evidence may be 
considered without regard to admissibility under the rules of evidence 
applicable to judicial proceedings;
    (iv) Controverting evidence of the project owner. The family shall 
be provided the opportunity to controvert evidence relied upon by the 
project owner and to confront and cross-examine all witnesses on whose 
testimony or information the project owner relies;
    (v) Representation. The family shall be entitled to be represented 
by an attorney, or other designee, at the family's expense, and to have 
such person make statements on the family's behalf;
    (vi) Interpretive services. The family shall be entitled to arrange 
for an interpreter to attend the hearing, at the expense of the family 
or project owner, as may be agreed upon by both parties; and
    (vii) Hearing to be recorded. The family shall be entitled to have 
the hearing recorded by audiotape (a transcript of the hearing may, but 
is not required to, be provided by the project owner).
    (4) Hearing decision. The project owner shall provide the family 
with a written final decision, based solely on the facts presented at 
the hearing, within 14 days of the date of the informal hearing. The 
decision shall state the basis for the decision.
    (g) Judicial relief. A decision against a family member, issued in 
accordance with paragraph (e) or (f) of this section, does not preclude 
the family from exercising the right, that may otherwise be available, 
to seek redress directly through judicial procedures.
    (h) Retention of documents. The project owner shall retain for a 
minimum of 5 years the following documents that may have been submitted 
to the project owner by the family, or provided to the project owner as 
part of the INS appeal or the informal hearing process:
    (1) The application for financial assistance;
    (2) The form completed by the family for income re-examination;
    (3) Photocopies of any original documents (front and back), 
including original INS documents;
    (4) The signed verification consent form;
    (5) The INS verification results;
    (6) The request for an INS appeal;
    (7) The final INS determination;
    (8) The request for an informal hearing; and
    (9) The final hearing decision.
    (i) Termination of assisted occupancy. Assisted occupancy is 
terminated by:
    (1) If permitted under the lease, the project owner notifying the 
tenant that because of the termination of assisted occupancy the tenant 
is required to pay the HUD-approved market rent for the dwelling unit.
    (2) The project owner and tenant entering into a new lease without 
financial assistance.
    (3) The project owner evicting the tenant. An owner may continue to 
receive assistance payments if action to terminate the tenancy under an 
assisted lease is promptly initiated and diligently pursued, in 
accordance with the terms of the lease, and if eviction of the tenant 
is undertaken by judicial action pursuant to State and local law. 
Action by the owner to terminate the tenancy and to evict the tenant 
must be in accordance with 24 CFR part 247 and other HUD requirements. 
For any jurisdiction, HUD may prescribe a maximum period during which 
assistance payments may be continued during eviction proceedings and 
may prescribe other standards of reasonable diligence for the 
prosecution of eviction proceedings.


Sec. 200.187  Preservation of mixed families and other families.

    (a) Assistance available for mixed families.--(1) Assistance 
available for tenant mixed families. For a mixed family assisted under 
a program by this subpart on June 19, 1995, and following completion of 
the appeals and informal hearing procedures provided in Sec. 200.186 if 
utilized by the family, one of the following three types of assistance 
is available to the family depending upon the family's eligibility for 
such assistance:
    (i) Continued assistance (see paragraph (b) of this section);
    (ii) Temporary deferral of termination of assistance (see paragraph 
(c) of this section); or
    (iii) Prorated assistance (see Sec. 200.188; a mixed family must be 
provided prorated assistance if the family so requests).
    (2) Assistance available for applicant mixed families. Prorated 
assistance is also available for mixed families applying for assistance 
as provided in Sec. 200.188.
    (3) Assistance available to other families in occupancy. For 
families receiving assistance under a program covered by this subpart 
on June 19, 1995 and who have no members with eligible immigration 
status, temporary deferral of termination of assistance is available to 
families without any eligible members in accordance with paragraph (c) 
of this section.
    (b) Continued assistance. A mixed family shall receive continued 
housing assistance if all of the following conditions are met:
    (1) The family was receiving assistance under a program covered by 
this subpart on June 19, 1995;
    (2) The family's head of household or spouse has eligible 
immigration status as described in Sec. 200.182; and
    (3) The family does not include any person (who does not have 
eligible immigration status) other than the head of household, any 
spouse of the head of household, any parents of the head of household, 
any parents of the spouse, or any children of the head of household or 
spouse.
    (c) Temporary deferral of termination of assistance.--(1) 
Eligibility for this type of assistance. If a mixed family qualifies 
for prorated assistance (and does not qualify for continued 
assistance), but decides not to accept prorated assistance, or if a 
family has no members with eligible immigration status, the family 
shall be eligible for temporary deferral of termination of assistance 
if necessary to permit the family additional time for the orderly 
transition of those family members with ineligible status, and any 
other family members involved, to other affordable housing. Other 
affordable housing is used in the context of transition of an 
ineligible family from a rent level that reflects HUD assistance to a 
rent level that is unassisted; the term refers to housing that is not 
substandard, that is of appropriate size for the family and that can be 
rented for an amount not exceeding the amount that the family pays for 
rent, including utilities, plus 25 percent.
    (2) Conditions for granting temporary deferral of termination of 
assistance. The project owners shall grant a temporary deferral of 
termination of assistance to a mixed family if one of the following 
conditions is met:
    (i) The family demonstrates that reasonable efforts to find other 
affordable housing of appropriate size have been unsuccessful (for 
purposes of this section, reasonable efforts include seeking 
information from, and pursuing leads obtained from the State housing 
[[Page 14830]] agency, the city government, local newspapers, rental 
agencies and the owner);
    (ii) The vacancy rate for affordable housing of appropriate size is 
below five percent in the housing market for the area in which the 
project is located; or
    (iii) The consolidated plan, as described in 24 CFR part 91 and if 
applicable to the covered program, indicates that the local 
jurisdiction's housing market lacks sufficient affordable housing 
opportunities for households having a size and income similar to the 
family seeking the deferral.
    (3) Time limit on deferral period. If temporary deferral of 
termination of assistance is granted, the deferral period shall be for 
an initial period not to exceed six months. The initial period may be 
renewed for additional periods of six months, but the aggregate 
deferral period shall not exceed a period of three years.
    (4) Notification requirements for beginning of each deferral 
period. At the beginning of each deferral period, the project owner 
must inform the family of its ineligibility for financial assistance 
and offer the family information concerning, and referrals to assist in 
finding, other affordable housing.
    (5) Determination of availability of affordable housing at end of 
each deferral period. Before the end of each deferral period, the 
project owner must:
    (i) Make a determination that one of the three conditions specified 
in paragraph (c)(2) of this section continues to be met (note: 
affordable housing will be determined to be available if the vacancy 
rate is five percent or greater, or if the consolidated plan (If 
applicable), the owner's knowledge and the tenant's evidence indicate 
that other affordable housing is available). and
    (ii) Notify the tenant family in writing, at least 60 days in 
advance of the expiration of the deferral period, that termination will 
be deferred again (provided that the granting of another deferral will 
not result in aggregate deferral periods that exceed three years), and 
a determination was made that other affordable housing is not 
available; or
    (iii) Notify the tenant family in writing, at least 60 days in 
advance of the expiration of the deferral period, that termination of 
financial assistance will not be deferred because either granting 
another deferral will result in aggregate deferral periods that exceed 
three years, or a determination has been made that other affordable 
housing is available.
    (d) Option to select proration of assistance at end of deferral 
period. A family who is eligible for, and receives temporary deferral 
of termination of assistance, may request, and the project owner shall 
provide proration of assistance at the end of the deferral period if 
the family has made a good faith effort during the deferral period to 
locate other affordable housing.
    (e) Notification of decision on family preservation assistance. A 
project owner shall notify the family of its decision concerning the 
family's qualification for assistance under this section. If the family 
is ineligible for assistance under this section, the notification shall 
state the reasons, which must be based on relevant factors. For tenant 
families, the notice also shall inform the family of any applicable 
appeal rights.
Sec. 200.188  Proration of assistance.

    (a) Applicability. This section applies to a mixed family other 
than a family receiving continued assistance under Sec. 200.187(b), or 
other than a family who is eligible for and requests and receives 
temporary deferral of termination of assistance under Sec. 200.187(c).
    (b) Method for prorating assistance. For each of the three types of 
assistance covered by this subpart, the project owner shall prorate the 
family's assistance as follows:
    (1) Proration under Rent Supplement Program. If the household 
participates in the Rent Supplement Program, the rent supplement paid 
on the household's behalf shall be the rent supplement the household 
would otherwise be entitled to, multiplied by a fraction, the 
denominator of which is the number of people in the household and the 
numerator of which is the number of eligible persons in the household;
    (2) Proration under Section 235 Program. If the household 
participates in the Section 235 Program, the interest reduction 
payments paid on the household's behalf shall be the payments the 
household would otherwise be entitled to, multiplied by a fraction the 
denominator of which is the number of people in the household and the 
numerator of which is the number of eligible persons in the household;
    (3) Proration under Section 236 Program without the benefit of 
additional assistance. If the household participates in the Section 236 
Program without the benefit of any additional assistance, the 
household's rent shall be increased above the rent the household would 
otherwise pay by an amount equal to the difference between the market 
rate rent for the unit and the rent the household would otherwise pay 
multiplied by a fraction the denominator of which is the number of 
people in the household and the numerator of which is the number of 
ineligible persons in the household;
    (4) Proration under Section 236 Program with the benefit of 
additional assistance. If the household participates in the Section 236 
Program with the benefit of additional assistance under the rent 
supplement, rental assistance payment or Section 8 programs, the 
household's rent shall be increased above the rent the household would 
otherwise pay by:
    (i) An amount equal to the difference between the market rate rent 
for the unit and the basic rent for the unit multiplied by a fraction, 
the denominator of which is the number of people in the household, and 
the numerator of which is the number of ineligible persons in the 
household, plus;
    (ii) An amount equal to the rent supplement, housing assistance 
payment or rental assistance payment the household would otherwise be 
entitled to multiplied by a fraction, the denominator of which is the 
number of people in the household and the numerator of which is the 
number of ineligible persons in the household.


Sec. 200.189  Prohibition of assistance to noncitizen students.

    (a) General. The provisions of Secs. 200.187 and 200.188, 
permitting continued assistance, prorated assistance or temporary 
deferral of termination of assistance for certain families, do not 
apply to any person who is determined to be a noncitizen student, as 
defined in paragraph (b) of this section, or the family of the 
noncitizen student, as described in paragraph (c) of this section.
    (b) Noncitizen student. For purposes of this part, a noncitizen 
student is defined as a noncitizen who:
    (1) Has a residence in a foreign country that the person has no 
intention of abandoning;
    (2) Is a bona fide student qualified to pursue a full course of 
study; and
    (3) Is admitted to the United States temporarily and solely for 
purposes of pursuing such a course of study at an established 
institution of learning or other recognized place of study in the 
United States, particularly designated by such person and approved by 
the Attorney General after consultation with the Department of 
Education of the United States, which institution or place of study 
shall have agreed to report to the Attorney General the termination of 
attendance of each nonimmigrant [[Page 14831]] student (and if any such 
institution of learning or place of study fails to make such reports 
promptly the approval shall be withdrawn).
    (c) Family of noncitizen student. The prohibition on providing 
assistance to a noncitizen student as described in paragraph (a) of 
this section also extends to the noncitizen spouse of the noncitizen 
student and minor children of any noncitizen student if the spouse or 
children are accompanying the student or following to join such 
student. The prohibition on providing assistance to a noncitizen 
student does not extend to the citizen spouse of the noncitizen student 
and the children of the citizen spouse and noncitizen student.


Sec. 200.190  Compliance with nondiscrimination requirements.

    The project owner shall administer the restrictions on use of 
assisted housing by noncitizens with ineligible immigration status 
imposed by this part in conformity with the nondiscrimination 
requirements of, including, but not limited to, title VI of the Civil 
Rights Act of 1964 (42 U.S.C. 2000d-2000d-5) and the implementing 
regulations in 24 CFR part 1, section 504 of the Rehabilitation Act of 
1973 (29 U.S.C. 794) and the implementing regulations in 24 CFR part 8, 
the Fair Housing Act (42 U.S.C. 3601-3619) and the implementing 
regulations in 24 CFR part 100, and other civil rights statutes cited 
in the applicable program regulations. These statutes prohibit, among 
other things, discriminatory practices on the basis of race, color, 
national origin, sex, religion, age, disability and familial status in 
the provision of housing.


Sec. 200.191  Protection from liability for project owners, State and 
local government agencies and officials.

    (a) Protection from liability for project owners. HUD will not take 
any compliance, disallowance, penalty, or other regulatory action 
against a project owner with respect to any error in its determination 
of eligibility for financial assistance based on citizenship or 
immigration status:
    (1) If the project owner established eligibility based upon 
verification of eligible immigration status through the verification 
system described in Sec. 200.185.
    (2) Because the project owner was required to provide an 
opportunity for the family to submit evidence in accordance with 
Sec. 200.183;
    (3) Because the project owner was required to wait for completion 
of INS verification of immigration status in accordance with 
Sec. 200.185;
    (4) Because the project owner was required to wait for completion 
of the INS appeal process provided in accordance with Sec. 200.186(e); 
or
    (5) Because the project owner was required to provide an informal 
hearing in accordance with Sec. 200.186(f).
    (b) Protection from liability for State and local government 
agencies and officials. State and local government agencies and 
officials shall not be liable for the design or implementation of the 
verification system described in Sec. 200.185 and the informal hearings 
provided under Sec. 200.186, as long as the implementation by the State 
and local government agency or official is in accordance with 
prescribed HUD rule and requirements.


Sec. 200.192  Liability of ineligible tenants for reimbursement of 
benefits.

    Where a tenant has received the benefit of HUD financial assistance 
to which the tenant was not entitled because the tenant intentionally 
misrepresented ``eligible status'' (as defined in Sec. 200.182), the 
ineligible tenant is responsible for reimbursing HUD for the assistance 
improperly paid. If the amount of the assistance is substantial, the 
project owner is encouraged to refer the case to the HUD Regional 
Inspector General's office for further investigation. Possible criminal 
prosecution may follow based on the False Statements Act (18 U.S.C. 
1001 and 1010).

PART 215--RENT SUPPLEMENT PAYMENTS

    3. The authority citation for part 215 continues to read as 
follows:

    Authority: 12 U.S.C. 1701s; 42 U.S.C. 3535(d).

    4. In Sec. 215.20, paragraph (b)(2) is amended by adding a new 
sentence at the end to read as follows:


Sec. 215.20  Qualified tenant.

* * * * *
    (b) * * *
    (2) * * * For restrictions on financial assistance to noncitizens 
with ineligible immigration status, see part 200, subpart G, of this 
chapter.
* * * * *
    5. In Sec. 215.25, paragraph (a)(1) is revised to read as follows:


Sec. 215.25  Determination of eligibility.

    (a)(1) The housing owner shall determine eligibility following 
procedures prescribed by the Commissioner when processing applications 
for admission and tenant applications for assistance. The requirements 
of part 200, subpart G, of this chapter govern the submission and 
verification of citizenship information and eligible immigration status 
for applicants, and the procedures for denial or proration of 
assistance based upon a failure to establish eligible immigration 
status.
* * * * *
    6. A new Sec. 215.26 is added to read as follows:


Sec. 215.26  Determination of eligible immigration status of applicants 
and tenants; protection from liability.

    (a) Housing owner's obligation to make determination. A housing 
owner shall obtain and verify information regarding the citizenship or 
immigration status of applicants and tenants in accordance with the 
procedures of part 200, subpart G, this chapter.
    (b) Protection from liability. HUD will not take any compliance, 
disallowance, penalty or other regulatory action against a housing 
owner with respect to any error in its determination that an individual 
is eligible for financial assistance based upon citizenship or eligible 
immigration status, as provided in Sec. 200.189 of this chapter.
    7. Section 215.55 is amended by adding two sentences at the end of 
paragraph (a), by adding one sentence at the end of paragraph (b), and 
by adding two sentences at the end of paragraph (c), to read as 
follows:


Sec. 215.55  Reexamination of family income and composition.

    (a) * * * At the first regular reexamination after June 19, 1995, 
the owner shall follow the requirements of part 200, subpart G, of this 
chapter concerning obtaining and processing information on the 
citizenship or eligible immigration status of all family members. 
Thereafter, at each regular reexamination, the owner shall follow the 
requirements of part 200, subpart G, of this chapter, concerning 
obtaining and processing information on the citizenship or eligible 
immigration status of any new family member.
    (b) * * * At any interim reexamination after June 19, 1995 when a 
new family member has been added, the owner shall follow the 
requirements of part 200, subpart G, of this chapter, concerning 
obtaining and processing information on the citizenship or eligible 
immigration status of the new family member.
    (c) * * * Assistance also may be terminated in accordance with any 
requirements of the lease or with HUD requirements. The procedures of 
part 200, subpart G, of this chapter, apply when termination is based 
upon a determination that the tenant does not have eligible immigration 
status. [[Page 14832]] 

PART 235--MORTGAGE INSURANCE AND ASSISTANCE PAYMENTS FOR HOME 
OWNERSHIP AND PROJECT REHABILITATION

    8. The authority citation for part 235 continues to read as 
follows:

    Authority: 12 U.S.C. 1715b and 1715z; 42 U.S.C. 3535(d).

    9. Section 235.2 is amended by adding a new paragraph (f) to read 
as follows:


Sec. 235.2  Basic program outline.

* * * * *
    (f) Evidence of citizenship or eligible immigration status shall be 
submitted by the applicant or mortgagor and verified in accordance with 
part 200, subpart G of this chapter and Sec. 235.13.
    10. Section 235.10 is amended by adding a new paragraph (c)(2)(iii) 
and by adding a sentence at the end of paragraph (e), to read as 
follows:


Sec. 235.10  Eligible mortgagors.

* * * * *
    (c) * * *
    (2) * **
    (iii) A new member is added to the family in which case evidence of 
citizenship or eligible immigration status also shall be submitted, in 
accordance with part 200, subpart G, of this chapter.
* * * * *
    (e) * * * Eligibility for assistance under this subpart also 
requires citizenship or eligible immigration status, as determined in 
accordance with part 200, subpart G, of this chapter, except that 
citizenship or eligible immigration status shall not be required of a 
mortgagor whose assistance contract was executed before June 19, 1995 
and remains unchanged after that date. (See Sec. 235.13(c).)
* * * * *
    11. A new Sec. 235.13 is added to read as follows:


Sec. 235.13  Special requirements concerning citizenship or eligible 
immigration status.

    (a) General. Except as may be supplemented by the provisions of 
this section, the requirements of 24 CFR part 200, subpart G, 
concerning restrictions on the use of assisted housing by noncitizens 
with ineligible immigration status are applicable to mortgagees and 
mortgagors covered by the Section 235 Program with the exception of 
mortgagors:
    (1) Whose assistance contracts were executed before June 19, 1995 
and remain unchanged after that date; or
    (2) Who refinance their Section 235 mortgages, which were executed 
before June 19, 1995 and whose assistance contracts were unchanged 
after that date, with mortgages insured under section 235(r) of the 
National Housing Act (12 U.S.C. 1715z).
    (b) Notification of requirements to submit evidence of eligible 
status--(1) Notice to applicants. A mortgagee shall notify applicants, 
including applicants whose names are on a waiting list on June 19, 
1995, that financial assistance is contingent upon the submission and 
verification, as appropriate, of evidence of eligible citizenship and 
immigration status as required under 24 CFR part 200, subpart G.
    (2) Notice to mortgagors. A mortgagee also shall notify mortgagors 
(except Section 235(r) mortgagors) whose contracts are executed after 
June 19, 1995 that continued financial assistance is contingent upon 
the submission and verification, as appropriate, of the evidence of 
eligible status required in 24 CFR part 200, subpart G. This notice 
requirement also shall apply to mortgagors whose contracts are revised, 
at the request of the mortgagor, after June 19, 1995.
    (c) Submission of evidence of eligible status--(1) When evidence of 
eligible immigration status is to be submitted. A mortgagee shall 
obtain evidence concerning an applicant or mortgagor's citizenship or 
eligible immigration status, as required by 24 CFR part 200, subpart G, 
at the following times:
    (i) Application for assistance; and
    (ii) The first recertification of family income and composition 
conducted after June 19, 1995, in accordance with Sec. 235.10 or 
Sec. 235.350. The requirements of this section are not applicable to 
mortgagors whose assistance contracts were executed before June 19, 
1995 and remain unchanged after that date, or to mortgagors who 
refinance their section 235 mortgages, which were executed before June 
19, 1995 and whose assistance contracts remain unchanged after such 
date, with mortgages insured under section 235(r) of the National 
Housing Act.
    (2) Extensions of time to submit evidence of eligible status. The 
provisions of Sec. 200.183(e) of this chapter, concerning extension of 
time within which to submit evidence of eligible status are applicable.
    (d) Certification by mortgagee--(1) General. The mortgagee shall 
verify the evidence submitted in the case of an applicant or mortgagor 
declaring eligible immigration status, in accordance with the 
requirements of part 200, subpart G, of this chapter, and certify to 
the Secretary that the required information concerning citizenship or 
eligible immigration status has been submitted and verified (if 
applicable) for all persons for whom the evidence is required. If the 
applicant or mortgagor's citizenship or eligible immigration status is 
not established as a result of the process required under 24 CFR part 
200, subpart G, the mortgagee shall notify the applicant or mortgagor 
in accordance with the requirements of 24 CFR part 200, subpart G 
concerning notification of the possibility of denial or termination of 
assistance, and, if applicable, of additional assistance that may be 
available to the applicant or mortgagor.
    (2) Invalid certification. (i) If the mortgagee has certified to 
the Secretary in accordance with paragraph (d)(1) of this section that 
the required information concerning citizenship or eligible immigration 
status has been submitted and verified (if applicable), and the 
Secretary subsequently determines that the procedures required by this 
section and 24 CFR part 200, subpart G, were not followed, the 
following actions will be taken:
    (A) The mortgagee will be required to repay to the Secretary the 
full amount of assistance payments made on behalf of the mortgagor 
under this part; and
    (B) No additional assistance payments may be made on behalf of the 
mortgagor.
    (ii) The Secretary may permit the resumption of assistance payments 
if all persons residing in the dwelling whose status was not determined 
to be eligible have moved from the dwelling unit, or their status has 
been determined to be eligible, in accordance with 24 CFR part 200, 
subpart G.
    (iii) If the mortgagee has certified to the Secretary in accordance 
with paragraph (c)(1) of this section that the required information 
concerning citizenship or eligible immigration status has been 
submitted and verified (if applicable), and the Secretary subsequently 
determines that the mortgagor's eligible status determination was based 
on fraudulent documents, or was otherwise defective, although the 
determination was made in accordance with required procedures, the 
following actions will be taken:
    (A) The mortgagor will be required to repay to the Secretary the 
full amount of assistance payments made on behalf of the mortgagor 
under this part; and
    (B) No additional assistance payments may be made on behalf of the 
mortgagor.
    (iv) The Secretary's right to repayment from the mortgagor under 
paragraph (d)(2)(i) of this section shall not affect or limit the 
Secretary's right to refund of overpaid assistance payments from the 
mortgagee as provided in Sec. 235.361(b).
    (e) Mortgage insurance commitments. Commitments to insure mortgages 
under this part will not be issued or extended [[Page 14833]] unless 
the mortgagee has made the certification required under paragraph (d) 
of this section.
    (f) Other related provisions. See Sec. 235.10 for eligibility 
requirements, specifically citizenship and eligible immigration status; 
Sec. 235.350 for the mortgagor's required recertification, including 
provision of information concerning eligible immigration status; and 
generally part 200, subpart G, of this chapter, for the provisions on 
restrictions to providing assistance to noncitizens with ineligible 
immigration status.
    12. In Sec. 235,325, a new paragraph (c) is added to read as 
follows:


Sec. 235.325  Qualified cooperative members.

* * * * *
    (c) Eligibility as a cooperative member under this subpart also 
requires eligible status with respect to citizenship or eligible 
immigration status determined in accordance with 24 CFR part 200, 
subpart G. (See Sec. 235,13.)
    13. Section 235.350 is amended by adding a new paragraph 
(a)(2)(iii) to read as follows:


Sec. 235.350  Mortgagor's required recertification.

    (a) * * *
    (2) * * *
    (iii) A new member is added to the family who is not born in the 
United States (except for a mortgagor described in 235.13(a) (1) or 
(2)).
* * * * *
    14. In Sec. 235.375, a new paragraph (b)(6) is added to read as 
follows:


Sec. 235.375  Termination, suspension, or reinstatement of the 
assistance payments contract.

* * * * *
    (b) * * *
    (6) Failure to provide evidence of citizenship or eligible 
immigration status in accordance with 24 CFR part 200, subpart G:
    (i) For a new member of the family, other than a child born in the 
United States, except with respect to a mortgagor described under 
Sec. 235.13(a) (1) and (2);
    (ii) At the first recertification of an assistance contract, except 
with respect to a mortgagor described in Sec. 235.13(a)(1) and (2); or
    (iii) Upon modification of an existing assistance contract
* * * * *

PART 236--MORTGAGE INSURANCE AND INTEREST REDUCTION PAYMENTS FOR 
RENTAL PROJECTS

    15. The authority citation for part 236 continues to read as 
follows:

    Authority: 12 U.S.C. 1715b and 1715z-1; 42 U.S.C. 3535(d).

    16. Section 236.2 is amended by:
    1. Amending the definition of ``Adjusted income'' by redesignating 
paragraphs (a), (b), (c), (d) introductory text, (d)(1), (d)(2), 
(d)(3), and (e), as paragraphs (1), (2), (3), (4) introductory text, 
(4)(i), (4)(ii), (4)(iii), and (5), respectively, and by removing the 
cross-reference in newly designated paragraph (4)(ii) that reads 
``paragraph (c) of this section'' and adding in its place ``paragraph 
(3) of this definition'';
    2. Amending the definition of ``Handicapped Person'' by 
redesignating paragraphs (a), (b), and (c) to read paragraphs (1), (2), 
and (3), respectively;
    3. Amending the definition of ``Live-in aide'' by redesignating 
paragraphs (a), (b), and (c), to read paragraphs (1), (2), and (3), 
respectively; and
    4. Amending the definition of ``Qualified Tenant'' by redesignating 
paragraphs (a) and (b) as paragraphs (1) and (2) respectively, and by 
adding a new paragraph (3), to read as follows:


Sec. 236.2  Definitions.

* * * * *

Qualified Tenant

* * * * *
    (3) For restrictions on financial assistance to noncitizens with 
ineligible immigration status, see 24 CFR part 200, subpart G.
* * * * *
    17. In Sec. 236.70, paragraph (a)(1) is revised to read as follows:


Sec. 236.70  Occupancy requirements.

    (a)(1) The housing owner shall determine eligibility following 
procedures prescribed by the Commissioner when processing applications 
for admission. The requirements of 24 CFR part 200, subpart G, govern 
the submission and verification of information related to citizenship 
and eligible immigration status for those applicants who seek admission 
at a below market rent.
* * * * *
    18. Section 236.80 is amended by adding two sentences at the end of 
paragraph (a), by adding one sentence at the end of paragraph (b), and 
by adding three sentences at the end of paragraph (c), to read as 
follows:


Sec. 236.80  Reexamination of income.

    (a) * * * At the first regular reexamination after June 19, 1995, 
the owner shall follow the requirements of 24 CFR part 200, subpart G, 
concerning obtaining and processing information on the citizenship or 
eligible immigration status of all family members. Thereafter, at each 
regular reexamination, the owner shall follow the requirements of 24 
CFR part 200, subpart G, concerning obtaining and processing 
information on the citizenship or eligible immigration status of any 
new family member.
    (b) * * * At any interim reexamination after June 19, 1995 when 
there is a new family member, the owner shall follow the requirements 
of 24 CFR part 200, subpart G, concerning obtaining and processing 
information on the citizenship or eligible immigration status of any 
new family member.
    (c) * * * Assistance also may be terminated in accordance with any 
requirements of the lease with HUD requirements. When termination is 
based upon a determination that the tenant does not have eligible 
immigration status, the procedures of 24 CFR part 200, subpart G, 
apply. The procedures include the provision of assistance to certain 
mixed families (families whose members include those with eligible 
immigration status, and those without eligible immigration status) in 
lieu of termination.
    19. Section 236.710 is amended by adding a new sentence at the end 
of this section to read as follows:


Sec. 236.710  Qualified tenant.

    * * * For restrictions on financial assistance to noncitizens with 
ineligible immigration status, see 24 CFR part 200, subpart G.
    20. In Sec. 236.715, paragraph (a) is revised to read as follows:


Sec. 236.715  Determination of eligibility.

    (a) The housing owner shall determine eligibility following 
procedures prescribed by the Commissioner when processing applications 
for admission and tenant applications for assistance. The requirements 
of 24 CFR part 200, subpart G, govern the submission and verification 
of information related to citizenship and eligible immigration status 
for applicants, and the procedures for denial of assistance based upon 
a failure to establish eligible immigration status.
* * * * *
    21. A new Sec. 236.765 is added to subpart D to read as follows:
Sec. 236.765  Determination of eligible immigration status of 
applicants and tenants; protection from liability.

    (a) Housing owner's obligation to make determination. A housing 
owner shall obtain and verify information regarding the citizenship or 
immigration status of applicants and tenants in accordance with the 
procedures of 24 CFR part 200, subpart G. [[Page 14834]] 
    (b) Protection from liability. HUD will not take any compliance, 
disallowance, penalty or other regulatory action against a housing 
owner with respect to any error in its determination to make an 
individual eligible for financial assistance based upon citizenship or 
eligible immigration status, as provided in 24 CFR part 200, subpart G.

PART 247--EVICTIONS FROM CERTAIN SUBSIDIZED AND HUD-OWNED PROJECTS

    22. The authority citation for part 247 continues to read as 
follows:

    Authority: 12 U.S.C. 1701q, 1701s, 1715b, 1715l, and 1715z-1; 42 
U.S.C. 1437a, 1437c, 1437f, and 3535(d).

    23. In Sec. 247.3, paragraph (c)(3) is revised to read as follows:


Sec. 247.3  Entitlement of tenants to occupancy.

* * * * *
    (c) * * *
    (3) Failure of the tenant to supply on time all required 
information on the income and composition, or eligibility factors, of 
the tenant household (including, but not limited to, failure to submit 
required evidence of citizenship or eligible immigration status, in 
accordance with 24 CFR part 200, subpart G, failure to meet the 
disclosure and verification requirements for Social Security Numbers, 
as provided by 24 CFR part 200, subpart T, or 24 CFR part 750 ( as 
appropriate), or failure to sign and submit consent forms for the 
obtaining of wage and claim information from State Wage Information 
Collection Agencies, as provided by 24 CFR part 200, subpart V, or 24 
CFR part 760 (as appropriate), or to knowingly provide incomplete or 
inaccurate information; and
* * * * *

PART 812--DEFINITION OF FAMILY AND OTHER RELATED TERMS; OCCUPANCY 
BY SINGLE PERSONS

    24. The authority citation for part 812 is revised to read as 
follows:

    Authority: 42 U.S.C. 1436a, 1437a, and 3535(d).

    25. In Sec. 812.1, paragraph (a) is amended by removing the word 
``and'' following the semicolon in paragraph (a)(1); by removing the 
period at the end of paragraph (a)(2) and replacing with ``and''; and 
by adding a new paragraph (a)(3), to read as follows:


Sec. 812.1  Purpose and applicability.

    (a) * * *
    (3) Implements the statutory prohibition against making assistance 
under the United States Housing Act of 1937 (``Act'') (42 U.S.C. 1437) 
available for the benefit of noncitizens with ineligible immigration 
status.
* * * * *
    26. Section 812.2 is amended by adding definitions in alphabetical 
order for the terms ``Child,'' ``Citizen,'' ``Evidence of citizenship 
or eligible immigration status,'' ``HA,'' ``Head of household,'' 
``HUD,'' ``INS,'' ``Mixed family,'' ``National,'' ``Noncitizen,'' and 
``Responsible entity,'' ``Section 214'' and ``Section 214 covered 
programs'' to read as follows:


Sec. 812.2  Definitions.

* * * * *
    Child. A member of the family, other than the family head or 
spouse, who is under 18 years of age.
    Citizen. A citizen or national of the United States.
* * * * *
    Evidence of citizenship or eligible immigration status. The 
documents which must be submitted to evidence citizenship or eligible 
immigration status. (See Sec. 812.6(b).)
* * * * *
    HA. A housing authority--either a public housing agency or an 
Indian housing authority, or both.
* * * * *
    Head of household. The adult member of the family who is the head 
of the household for purposes of determining income eligibility and 
rent.
    HUD. The Department of Housing and Urban Development.
    INS. The U.S. Immigration and Naturalization Service.
* * * * *
    Mixed family. A family whose members include those with citizenship 
or eligible immigration status, and those without citizenship or 
eligible immigration status.
    National. A person who owes permanent allegiance to the United 
States, for example, as a result of birth in a United States territory 
or possession.
    Noncitizen. A person who is neither a citizen nor national of the 
United States.
    Responsible entity. The person or entity responsible for 
administering the restrictions on providing assistance to noncitizens 
with ineligible immigration status:
    (1) For the Section 8 Certificate, the Section 8 Housing Voucher, 
and the Section 8 Moderate Rehabilitation programs, the housing 
authority (HA) administering the program under an ACC with HUD.
    (2) For all other Section 8 programs, the owner.
    Section 214. Section 214 of the Housing and Community Development 
Act of 1980, as amended (42 U.S.C. 1436a). Section 214 restricts HUD 
from making financial assistance available for noncitizens unless they 
meet one of the categories of eligible immigration status specified in 
Section 214.
    Section 214 covered programs. Programs to which the restrictions 
imposed by Section 214 apply are programs that make available financial 
assistance pursuant to the United States Housing Act of 1937 (42 U.S.C. 
1437-1440), Section 235 or Section 236 of the National Housing Act (12 
U.S.C. 1715z and 1715z-1) and Section 101 of the Housing and Urban 
Development Act of 1965 (12 U.S.C. 1701s).
* * * * *
    27. Part 812 is amended by redesignating Secs. 812.1 through 812.4 
as subpart A, and by adding the subpart heading to read, ``Subpart A--
General,'' and by adding a new subpart B, consisting of Secs. 812.5 
through 812.15, to read as follows:

Subpart B--Restrictions on Assistance to Noncitizens

Sec.
812.5  General.
812.5a  Requirements concerning documents.
812.6  Submission of evidence of citizenship or eligible immigration 
status.
812.7  Documents of eligible immigration status.
812.8  Verification of eligible immigration status.
812.9  Delay, denial or termination of assistance.
812.10  Preservation of mixed families and other families.
812.11  Proration of assistance.
812.12  Prohibition of assistance to noncitizen students.
812.13  Compliance with nondiscrimination requirements.
812.14  Protection from liability for responsible entities, State, 
local, and tribal government agencies and officials.
812.15  Liability of ineligible families for reimbursement of 
benefits.

Subpart B--Restrictions on Assistance to Noncitizens


Sec. 812.5  General.

    (a) Restrictions on assistance. Assistance provided under a Section 
214 covered program is restricted to:
    (1) Citizens; or
    (2) Noncitizens who have eligible immigration status in one of the 
following categories:
    (i) A noncitizen lawfully admitted for permanent residence, as 
defined by section 101(a)(20) of the Immigration and Nationality Act 
(INA), as an immigrant, as defined by section 101(a)(15) of the INA (8 
U.S.C. [[Page 14835]] 1101(a)(20) and 1101(a)(15), respectively 
(immigrants). (This category includes a noncitizen admitted under 
section 210 or 210A of the INA (8 U.S.C. 1160 or 1161), (special 
agricultural worker), who has been granted lawful temporary resident 
status);
    (ii) A noncitizen who entered the United States before January 1, 
1972, or such later date as enacted by law, and has continuously 
maintained residence in the United States since then, and who is not 
ineligible for citizenship, but who is deemed to be lawfully admitted 
for permanent residence as a result of an exercise of discretion by the 
Attorney General under section 249 of the INA (8 U.S.C. 1259);
    (iii) A noncitizen who is lawfully present in the United States 
pursuant to an admission under section 207 of the INA (8 U.S.C. 1157) 
(refugee status); pursuant to the granting of asylum (which has not 
been terminated) under section 208 of the INA (8 U.S.C. 1158) (asylum 
status); or as a result of being granted conditional entry under 
section 203(a)(7) of the INA (8 U.S.C. 1153(a)(7)) before April 1, 
1980, because of persecution or fear of persecution on account of race, 
religion, or political opinion or because of being uprooted by 
catastrophic national calamity;
    (iv) A noncitizen who is lawfully present in the United States as a 
result of an exercise of discretion by the Attorney General for 
emergent reasons or reasons deemed strictly in the public interest 
under section 212(d)(5) of the INA (8 U.S.C. 1182(d)(5)) (parole 
status);
    (v) A noncitizen who is lawfully present in the United States as a 
result of the Attorney General's withholding deportation under section 
243(h) of the INA (8 U.S.C. 1253(h)) (threat to life or freedom); or
    (vi) A noncitizen lawfully admitted for temporary or permanent 
residence under section 245A of the INA (8 U.S.C. 1255a) (amnesty 
granted under INA 245A).
    (b) Family eligibility for assistance. (1) A family shall not be 
eligible for assistance unless every member of the family residing in 
the unit is determined to have eligible status, as described in 
paragraph (a) of this section;
    (2) Despite the ineligibility of one or more family members, a 
mixed family may be eligible for one of the three types of assistance 
provided in Sec. 812.10. A family without any eligible members and 
receiving assistance on June 19, 1995 may be eligible for temporary 
deferral of termination of assistance as provided in Sec. 812.10.


Sec. 812.5a. Requirements concerning documents.

    For any notice or document (decision, declaration, consent form, 
etc.) that Secs. 812.5 through 812.15 require a responsible entity to 
provide to an individual, or require that the responsible entity obtain 
the signature of the individual, the responsible entity, where 
feasible, must arrange for the notice or document to be provided to the 
individual in a language that is understood by the individual if the 
individual is not proficient in English. (See 24 CFR 8.6 of HUD's 
regulations for requirements concerning communications with persons 
with disabilities.)


Sec. 812.6  Submission of evidence of citizenship or eligible 
immigration status.

    (a) General. Eligibility for assistance or continued assistance 
under a Section 214 covered program is contingent upon a family's 
submission to the responsible entity of the documents described in 
paragraph (b) of this section for each family member. If one or more 
family members do not have citizenship or eligible immigration status, 
the family members may exercise the election not to contend to have 
eligible immigration status as provided in paragraph (e) of this 
section, and the provisions of Sec. 812.10 shall apply.
    (b) Evidence of citizenship or eligible immigration status. Each 
family member, regardless of age, must submit the following evidence to 
the responsible entity:
    (1) For citizens, the evidence consists of a signed declaration of 
U.S. citizenship;
    (2) For noncitizens who are 62 years of age or older or who will be 
62 years of age or older and receiving assistance under a Section 214 
covered program on June 19, 1995, the evidence consists of:
    (i) A signed declaration of eligible immigration status; and
    (ii) Proof of age document.
    (3) For all other noncitizens, the evidence consists of:
    (i) A signed declaration of eligible immigration status;
    (ii) The INS documents listed in Sec. 812.7; and
    (iii) A signed verification consent form.
    (c) Declaration. For each family member who contends that he or she 
is a U.S. citizen or a noncitizen with eligible immigration status, the 
family must submit to the responsible entity a written declaration, 
signed under penalty of perjury, by which the family member declares 
whether he or she is a U.S. citizen or a noncitizen with eligible 
immigration status.
    (1) For each adult, the declaration must be signed by the adult.
    (2) For each child, the declaration must be signed by an adult 
residing in the assisted dwelling unit who is responsible for the 
child.
    (d) Verification consent form--(1) Who signs. Each noncitizen who 
declares eligible immigration status, must sign a verification consent 
form as follows:
    (i) For each adult, the form must be signed by the adult.
    (ii) For each child, the form must be signed by an adult member of 
the family residing in the assisted dwelling unit who is responsible 
for the child.
    (2) Notice of release of evidence by responsible entity. The 
verification consent form shall provide that evidence of eligible 
immigration status may be released by the responsible entity, without 
responsibility for the further use or transmission of the evidence by 
the entity receiving it, to:
    (i) HUD as required by HUD; and
    (ii) The INS for purposes of verification of the immigration status 
of the individual.
    (3) Notice of release of evidence by HUD. The verification consent 
form also shall notify the individual of the possible release of 
evidence of eligible immigration status by HUD. Evidence of eligible 
immigration status shall only be released to the INS for purposes of 
establishing eligibility for financial assistance and not for any other 
purpose. HUD is not responsible for the further use or transmission of 
the evidence or other information by the INS.
    (e) Individuals who do not contend to have eligible immigration 
status.--If one or more members of a family elect not to contend that 
they have eligible immigration status and the other members of the 
family establish their citizenship or eligible immigration status, the 
family may be considered for assistance under Secs. 812.10 or 812.11 
despite the fact that no declaration or documentation of eligible 
status is submitted by one or more members of the family. The family, 
however, must identify to the responsible entity, the family member (or 
members) who will elect not to contend that he or she has eligible 
immigration status.
    (f) Notification of requirements of Section 214--(1) When notice is 
to be issued. Notification of the requirement to submit evidence of 
citizenship or eligible immigration status, as required by this 
section, or to elect not to contend that one has eligible immigration 
status as provided by paragraph (e) of this section, shall be 
[[Page 14836]] given by the responsible entity as follows:
    (i) Applicant's notice. The notification described in paragraph 
(f)(1) of this section shall be given to each applicant at the time of 
application for financial assistance. Families whose applications are 
pending on June 19, 1995, shall be notified of the requirements to 
submit evidence of eligible status as soon as possible after June 19, 
1995.
    (ii) Notice to families already receiving assistance. For a family 
in occupancy on June 19, 1995, the notification described in paragraph 
(f)(1) of this section shall be given to each at the time of, and 
together with, the responsible entity's notice of the first regular 
reexamination after that date, but not later than one year following 
June 19, 1995.
    (2) Form and content of notice. The notice shall:
    (i) State that financial assistance is contingent upon the 
submission and verification, as appropriate, of the evidence of 
citizenship or eligible immigration status, as required by this 
section;
    (ii) Describe the type of evidence that must be submitted and state 
the time period in which that evidence must be submitted (see paragraph 
(g) of this section concerning when evidence must be submitted); and
    (iii) State that assistance will be prorated, denied or terminated, 
as appropriate, upon a final determination of ineligibility after all 
appeals have been exhausted (see Sec. 812.9 concerning INS appeal, and 
informal hearing process) or, if appeals are not pursued, at a time to 
be specified in accordance with HUD requirements. Families already 
receiving assistance also shall be informed of how to obtain assistance 
under the preservation of families provisions of Sec. 812.10.
    (g) When evidence of eligible status is required to be submitted.--
The responsible entity shall require evidence of eligible status to be 
submitted at the times specified in paragraph (g) of this section, 
subject to any extension granted in accordance with paragraph (h) of 
this section.
    (1) Applicants. For applicants, the responsible entity must ensure 
that evidence of eligible status is submitted not later than the date 
the responsible entity anticipates or has knowledge that verification 
of other aspects of eligibility for assistance will occur (see 
Sec. 812.8(a)).
    (2) Families already receiving assistance. For a family already 
receiving the benefit of assistance in a covered program on June 19, 
1995, the required evidence shall be submitted at the first regular 
reexamination after June 19, 1995, in accordance with program 
requirements. (See Secs. 850.151, 880.603, 881.603, 882.212, 882.515, 
883.704, 884.124, 886.124, 886.324, or 887.357 of this chapter.)
    (3) New occupants of assisted units. For any new family members, 
the required evidence shall be submitted at the first interim or 
regular reexamination following the person's occupancy.
    (4) Changing participation in a HUD program. Whenever a family 
applies for admission to a Section 214 covered program, evidence of 
eligible status is required to be submitted in accordance with the 
requirements of this part unless the family already has submitted the 
evidence to the responsible entity for a covered program.
    (5) One-time evidence requirement for continuous occupancy. For 
each family member, the family is required to submit evidence of 
eligible status only one time during continuously assisted occupancy 
under any covered program.
    (h) Extensions of time to submit evidence of eligible status--(1) 
When extension must be granted. The responsible entity shall extend the 
time provided in paragraph (g) of this section, to submit evidence of 
eligible immigration status if the family member:
    (i) Submits the declaration required under Sec. 812.6(b) certifying 
that any person for whom required evidence has not been submitted is a 
noncitizen when eligible immigration status; and
    (ii) Certifies that the evidence needed to support a claim of 
eligible immigration status is temporarily unavailable, additional time 
is needed to obtain and submit the evidence, and prompt and diligent 
efforts will be undertaken to obtain the evidence.
    (2) Prohibition on indefinite extension period. Any extension of 
time, if granted, shall be for a specific period of time. The 
additional time provided should be sufficient to allow the family the 
time to obtain the evidence needed. The responsible entity's 
determination of the length of the extension needed shall be based on 
the circumstances of the individual case.
    (3) Grant or denial of extension to be in writing. The responsible 
entity's decision to grant or deny an extension as provided in 
paragraph (h)(1) of this section shall be issued to the family by 
written notice. If the extension is granted, the notice shall specify 
the extension period granted. If the extension is denied, the notice 
shall explain the reasons for denial of the extension.
    (i) Failure to submit evidence or establish eligible immigration 
status. If the family fails to submit required evidence of eligible 
immigration status within the time period specified in the notice, or 
any extension granted in accordance with paragraph (h) of this section, 
or if the evidence is timely submitted but fails to establish eligible 
immigration status, the responsible entity shall proceed to deny, 
prorate or terminate assistance, or provide continued assistance or 
temporary deferral of termination of assistance, as appropriate, in 
accordance with the provisions of Secs. 812.9 and 812.10 respectively. 
For all Section 8 programs, denial or termination of assistance shall 
be in accordance with the procedures of Sec. 812.9.


Sec. 812.7  Documents of eligible immigration status.

    (a) General. A responsible entity shall request and review original 
documents of eligible immigration status. The responsible entity shall 
retain photocopies of the documents for its own records and return the 
original documents to the family.
    (b) Acceptance evidence of eligible immigration status. The 
original of one of the following documents is acceptable evidence of 
eligible immigration status, subject to verification in accordance with 
Sec. 812.8.
    (1) Form I-551, Alien Registration Receipt Card (for permanent 
resident aliens);
    (2) Form I-94, Arrival-Departure Record, with one of the following 
annotations:
    (i) ``Admitted as Refugee Pursuant to Section 207'';
    (ii) ``Section 208'' or ``Asylum'';
    (iii) ``Section 243(h)'' or ``Deportation stayed by Attorney 
General'';
    (iv) ``Paroled Pursuant to Sec. 212(d)(5) of the INA'';
    (3) If Form I-94, Arrival-Departure Record, is not annotated, then 
accompanied by one of the following documents:
    (i) A final court decision granting asylum (but only if no appeal 
is taken);
    (ii) A letter from an INS asylum officer granting asylum (if 
application is filed on or after October 1, 1990) or from an INS 
district director granting asylum (if application filed before October 
1, 1990);
    (iii) A court decision granting withholding or deportation; or
    (iv) A letter from an asylum officer granting withholding of 
deportation (if application filed on or after October 1, 1990).
    (4) Form I-688, Temporary Resident Card, which must be annotated 
``Section 245A'' or ``Section 210'';
    (5) Form I-688B, Employment Authorization Card, which must be 
[[Page 14837]] annotated ``Provision of Law 274a.12(11)'' or 
``Provision of Law 274a.12'';
    (6) A receipt issued by the INS indicating that an application for 
issuance of a replacement document in one of the above-listed 
categories has been made and the applicant's entitlement to the 
document has been verified; or
    (c) Other acceptable evidence. If other documents are determined by 
the INS to constitute acceptable evidence of eligible immigration 
status, they will be announced by notice published in the Federal 
Register.


Sec. 812.8  Verification of eligible immigration status.

    (a) When verification is to occur. Verification of eligible 
immigration status shall be conducted by the responsible entity 
simultaneously with verification of other aspects of eligibility for 
assistance under a 214 covered program. (See Sec. 812.6(g).) The 
responsible entity shall verify eligible immigration status in 
accordance with the INS procedures described in this section.
    (b) Primary verification--(1) Automated verification system. 
Primary verification of the immigration status of the person is 
conducted by the responsible entity through the INS automated system 
(INS Systematic for Alien Verification for Entitlements (SAVE)). The 
INS SAVE system provides access to names, file numbers and admission 
numbers of noncitizens.
    (2) Failure of primary verification to confirm eligible immigration 
status. If the INS SAVE system does not verify eligible immigration 
status, secondary verification must be performed.
    (c) Secondary verification--(1) Manual search of INS records. 
Secondary verification is a manual search by the INS of its records to 
determine an individual's immigration status. The responsible entity 
must request secondary verification, within 10 days of receiving the 
results of the primary verification, if the primary verification system 
does not confirm eligible immigration status, or if the primary 
verification system verifies immigration status that is ineligible for 
assistance under a covered Section 214 covered program.
    (2) Secondary verification initiated by responsible entity. 
Secondary verification is initiated by the responsible entity 
forwarding photocopies of the original INS documents listed in 
Sec. 812.7 (front and back), attached to the INS document verification 
request form G-845S (Document Verification Request), or such other form 
specified by the INS, to a designated INS office for review. (Form G-
845S is available from the local INS Office.)
    (3) Failure of secondary verification to confirm eligible 
immigration status. If the secondary verification does not confirm 
eligible immigration status, the responsible entity shall issue to the 
family the notice described in Sec. 812.9(d), which includes 
notification of appeal to the INS of the INS finding on immigration 
status (see Sec. 812.9(d)(4)).
    (d) Exemption from liability for INS verification. The responsible 
entity shall not be liable for any action, delay, or failure of the INS 
in conducting the automated or manual verification.


Sec. 812.9  Delay, denial, or termination of assistance.

    (a) General. Assistance to a family may not be delayed, denied, or 
terminated because of the immigration status of a family member except 
as provided in this section.
    (b) Restriction on delay, denial, or termination of assistance--(1) 
General. Assistance to an applicant shall not be delayed or denied, and 
assistance to a tenant shall not be delayed, denied, or terminated, on 
the basis of ineligible immigration status of a family member if:
    (i) The primary and secondary verification of any immigration 
documents that were timely submitted has not been completed;
    (ii) The family member for whom required evidence has not been 
submitted has moved from the tenant's dwelling unit;
    (iii) The family member who is determined not to be in an eligible 
immigration status following INS verification has moved from the 
tenant's dwelling unit;
    (iv) The INS appeals process under Sec. 812.9(e) has not been 
concluded;
    (v) For a tenant, the informal hearing process under Sec. 812.9(f) 
has not been concluded;
    (vi) Assistance is prorated in accordance with Sec. 812.11;
    (vii) Assistance for a mixed family is continued in accordance with 
Sec. 812.10; or
    (viii) Deferral of termination of assistance is granted in 
accordance with Sec. 812.10.
    (2) When delay in assistance to an applicant is permissible. 
Assistance to an applicant may be delayed after the conclusion of the 
INS appeal process, but not denied until the conclusion of the 
responsible entity informal hearing process, if an informal hearing is 
requested by the family.
    (c) Events causing denial or termination of assistance--Assistance 
to an applicant shall be denied, and a tenant's assistance shall be 
terminated, in accordance with the procedures of this section, upon the 
occurrence of any of the following events:
    (1) Evidence of citizenship (i.e., the declaration) and eligible 
immigration status is not submitted by the date specified in 
Sec. 812.6(g) or by the expiration of any extension granted in 
accordance with Sec. 812.6(h); or
    (2) Evidence of citizenship and eligible immigration status is 
timely submitted, but INS primary and second verification does not 
verify eligible immigration status of a family member; and
    (i) The family does not pursue INS appeal or informal hearing 
rights as provided in this section; or
    (ii) INS appeal and informal hearing rights are pursued, but the 
final appeal or hearing decisions are decided against the family 
member.
    (d) Notice of denial or termination of assistance--The notice of 
denial or termination of assistance shall advise the family:
    (1) That financial assistance will be denied or terminated, and 
provide a brief explanation of the reasons for the proposed denial or 
termination of assistance;
    (2) That the family may be eligible for proration of assistance as 
provided under Sec. 812.11;
    (3) In the case of a tenant, the criteria and procedures for 
obtaining relief under the preservation of families provision in 
Sec. 812.10;
    (4) That the family has a right to request an appeal to the INS of 
the results of secondary verification of immigration status and to 
submit additional documentation or a written explanation in support of 
the appeal in accordance with the procedures of paragraph (e) of this 
section;
    (5) That the family has a right to request an informal hearing with 
the responsible entity either upon completion of the INS appeal or in 
lieu of the INS appeal as provided in paragraph (f) of this section;
    (6) For applicants, the notice shall advise that assistance may not 
be delayed until the conclusion of the INS appeal process, but 
assistance may be delayed during the pendency of the responsible entity 
informal hearing process.
    (e) Appeal to the INS--(1) Submission of request for appeal. Upon 
receipt of notification by the responsible entity that INS secondary 
verification failed to confirm eligible immigration status, the 
responsible entity shall notify the family [[Page 14838]] of the 
results of the INS verification, and the family shall have 30 days from 
the date of the responsible entity's notification to request an appeal 
of the INS results. The request for appeal shall be made by the family 
communicating that request in writing directly to the INS. The family 
must provide the responsible entity with a copy of the written request 
for appeal and proof of mailing. For good cause shown, the responsible 
entity shall grant the family an extension of the time within which to 
request an appeal.
    (2) Documentation to be submitted as part of the appeal to INS. The 
family shall forward to the designated INS office any additional 
documentation or written explanation in support of the appeal. This 
material must include a copy of the INS document verification request 
form G-845S (used to process the secondary verification request) or 
such other form specified by the INS, and a cover letter indicating 
that the family is requesting an appeal of the INS immigration status 
verification results. (Form G-845S is available from the local INS 
office.)
    (3) Decision by INS (i) When decision will be issued. The INS will 
issue to the family, with a copy to the responsible entity, a decision 
within 30 days of its receipt of documentation concerning the family's 
appeal of the verification of immigration status. If, for any reason, 
the INS is unable to issue a decision within the 30 day time period, 
the INS will inform the family and the responsible entity of the 
reasons for the delay.
    (ii) Notification of INS decision and of informal hearing 
procedures. When the responsible entity receives a copy of the INS 
decision, the responsible entity shall notify the family of its right 
to request an informal hearing on the responsible entity's 
ineligibility determination in accordance with the procedures of 
paragraph (f) of this section.
    (4) No delay, denial or termination of assistance until completion 
of INS appeal process; direct appeal to INS. Pending the completion of 
the INS appeal under this section, assistance may not be delayed, 
denied or terminated on the basis of immigration status.
    (f) Informal hearing--(1) When request for hearing is to be made. 
After notification of the INS decision on appeal, or in lieu of request 
of appeal to the INS, the family may request that the responsible 
entity provide a hearing. This request must be made either within 14 
days of the date the responsible entity mails or delivers the notice 
under paragraph (d) of this section, or within 14 days of the mailing 
of the INS appeal decision issued in accordance with paragraph (e) of 
this section (established by the date of postmark).
    (2) Extension of time to request hearing. The responsible entity 
shall extend the period of time for requesting a hearing (for a 
specified period) upon good cause shown.
    (3) Informal hearing procedures. (i) For tenants, the procedures 
for the hearing before the responsible entity are set forth in 24 CFR 
part 966.
    (ii) For applicants, the procedures for the informal hearing before 
the responsible entity are as follows:
    (A) Hearing before an impartial individual. The applicant shall be 
provided a hearing before any person(s) designated by the responsible 
entity (including an officer or employee of the responsible entity), 
other than a person who made or approved the decision under review, and 
other than a person who is a subordinate of the person who made or 
approved the decision;
    (B) Examination of evidence. The applicant shall be provided the 
opportunity to examine and copy, at the applicant's expense and at a 
reasonable time in advance of the hearing, any documents in the 
possession of the responsible entity pertaining to the applicant's 
eligibility status, or in the possession of the INS (as permitted by 
INS requirements), including any records and regulations that may be 
relevant to the hearing;
    (C) Presentation of evidence and arguments in support of eligible 
status. The applicant shall be provided the opportunity to present 
evidence and arguments in support of eligible status. Evidence may be 
considered without regard to admissibility under the rules of evidence 
applicable to judicial proceedings;
    (D) Controverting evidence of the project owner. The applicant 
shall be provided the opportunity to controvert evidence relied upon by 
the responsible entity and to confront and cross-examine all witnesses 
on whose testimony or information the responsible entity relies;
    (E) Representation. The applicant shall be entitled to be 
represented by an attorney, or other designee, at the applicant's 
expense, and to have such person make statements on the applicant's 
behalf;
    (F) Interpretive services. The applicant shall be entitled to 
arrange for an interpreter to attend the hearing, at the expense of the 
applicant or responsible entity, as may be agreed upon by both parties;
    (G) Hearing to be recorded. The applicant shall be entitled to have 
the hearing recorded by audiotape (a transcript of the hearing may, but 
is not required, to be provided by the responsible entity); and
    (H) Hearing decision. The responsible entity shall provide the 
family with a written final decision, based solely on the facts, 
presented at the hearing within 14 days of the date of the informal 
hearing. The decision shall state the basis for the decision.
    (g) Judicial relief. A decision against a family member, issued in 
accordance with paragraph (e) or (f) of this section, does not preclude 
the family from exercising the right, that may otherwise be available, 
to seek redress directly through judicial procedures.
    (h) Retention of documents. The responsible entity shall retain for 
a minimum of 5 years the following documents that may have been 
submitted to the responsible entity by the family, or provided to the 
responsible entity as part of the INS appeal or the informal hearing 
process:
    (1) The application for financial assistance;
    (2) The form completed by the family for income re-examination;
    (3) Photocopies of any original documents (front and back), 
including original INS documents;
    (4) The signed verification consent form;
    (5) The INS verification results;
    (6) The request for an INS appeal;
    (7) The final INS determination;
    (8) The request for an informal hearing; and
    (9) The final informal hearing decision.
    (i) Termination of assisted occupancy. (1) In the Section 8 
programs other than Section 8 Certificate, Housing Voucher, and 
Moderate Rehabilitation programs, assisted occupancy is terminated by:
    (i) If permitted under the lease, the project owner notifying the 
family that because of the termination of assisted occupancy, the 
family is required to pay the HUD-approved market rent for the dwelling 
unit.
    (ii) The project owner and family entering into a new lease with 
Section 8 assistance.
    (iii) The project owner evicting the family. While the family 
continues in occupancy of the unit, the project owner may continue 
assistance payments in accordance with the Housing Assistance Payments 
contract if judicial action to terminate the tenancy and evict the 
family is promptly initiated and diligently pursued by the project 
owner in accordance with the terms of the lease. Action by the project 
owner to terminate the tenancy and to evict the family shall be in 
accordance with HUD [[Page 14839]] regulations and other HUD 
requirements. For any jurisdiction, HUD may prescribe a maximum period 
during which assistance payments may be continued during eviction 
proceedings and may prescribe other standards of reasonable diligence 
for the prosecution of eviction proceedings.
    (2) In the Section 8 Certificate, Housing Voucher, and Moderate 
Rehabilitation programs, assisted occupancy is terminated by 
terminating assistance payments. (See provisions of this section 
concerning termination of assistance.) The HA shall not make any 
additional assistance payments to the project owner after the required 
procedures specified in this section have been completed. In addition, 
the HA shall not approve a lease, enter into an assistance contract, or 
process a portability move for the family after those procedures have 
been completed.


Sec. 812.10  Preservation of mixed families and other families.

    (a) Assistance available for mixed families--(1) Assistance 
available for tenant mixed families. For a mixed family assisted under 
a Section 214 covered program on June 19, 1995, and following 
completion of the appeals and informal hearing procedures provided in 
Sec. 812.9 if utilized by the family, one of the following three types 
of assistance may be available to the family:
    (i) Continued assistance (see paragraph (c) of this section);
    (ii) Temporary deferral of termination of assistance (see paragraph 
(d) of this section); or
    (iii) Prorated assistance (see Sec. 812.11; a mixed family must be 
provided prorated assistance if the family so requests).
    (2) Assistance available for applicant mixed families. Prorated 
assistance is also available for mixed families applying for assistance 
as provided in Sec. 812.11.
    (3) Assistance available to other families in occupancy. For 
families receiving assistance under a Section 214 covered program on 
June 19, 1995 and who have no members with eligible immigration status, 
the responsible entity may grant the family temporary deferral of 
termination of assistance.
    (b) Discretion afforded to provide certain family preservation 
assistance--(1) Project owners. With respect to assistance administered 
by a project owner, HUD has the discretion to determine under what 
circumstances families are to be provided one of the two statutory 
forms of assistance for preservation of the family (continued 
assistance or temporary deferral of termination of assistance). HUD is 
exercising its discretion by specifying the standards in this section 
under which a project owner must provide one of these two types of 
assistance described in paragraph (a) of this section to a family. 
However, project owners and housing authorities must offer prorated 
assistance to eligible mixed families.
    (2) HAs. With respect to an HA acting as a contract administrator 
of a certificate (including project-based certificate), housing 
voucher, or Moderate Rehabilitation program (as opposed to an HA 
owner), the HA, rather than HUD, has the discretion to determine the 
circumstances under which a family will be offered one of the two 
statutory forms of assistance (continued assistance or temporary 
deferral of termination of assistance). The HA must establish its own 
policy and criteria to follow in making its decision. In establishing 
the criteria for granting continued assistance or temporary deferral of 
termination of assistance, the HA must incorporate the statutory 
criteria, which are set forth in paragraphs (c) and (d) of this 
section. However, the housing authority must offer prorated assistance 
to eligible mixed families.
    (c) Continued assistance. A mixed family may receive continued 
housing assistance if all of the following conditions are met:
    (1) The family was receiving assistance under a Section 214 covered 
program on June 19, 1995;
    (2) The family's head of household or spouse has eligible 
immigration status as described in Sec. 812.5; and
    (3) The family does not include any person (who does not have 
eligible immigration status) other than the head of household, any 
spouse of the head of household, any parents of the head of household, 
any parents of the spouse, or any children of the head of household or 
spouse.
    (d) Temporary deferral of termination of assistance--(1) 
Eligibility for this type of assistance. If a mixed family qualifies 
for prorated assistance (and does not qualify for continued 
assistance), but decides not to accept prorated assistance, or if a 
family has no members with eligible immigration status, the family may 
be eligible for temporary deferral of termination of assistance if 
necessary to permit the family additional time for the orderly 
transition of those family members with ineligible status, and any 
other family members involved, to other affordable housing. Other 
affordable housing is used in the context of transition of an 
ineligible family from a rent level that reflects HUD assistance to a 
rent level that is unassisted; the term refers to housing that is not 
substandard, that is of appropriate size for the family and that can be 
rented for an amount not exceeding the amount that the family pays for 
rent, including utilities, plus 25 percent.
    (2) Time limit on deferral period. If temporary deferral of 
termination of assistance is granted, the deferral period shall be for 
an initial period not to exceed six months. The initial period may be 
renewed for additional periods of six months, but the aggregate 
deferral period shall not exceed a period of three years.
    (3) Notification requirements for beginning of each deferral 
period. At the beginning of each deferral period, the responsible 
entity must inform the family of its ineligibility for financial 
assistance and offer the family information concerning, and referrals 
to assist in finding, other affordable housing.
    (4) Determination of availability of affordable housing at end of 
each deferral period. Before the end of each deferral period, the 
responsible entity must:
    (i) Make a determination of the availability of affordable housing 
of appropriate size based on evidence of conditions which when taken 
together will demonstrate an inadequate supply of affordable housing 
for the area in which the project is located, the consolidated plan (if 
applicable, as described in 24 CFR part 91), the responsible entity's 
own knowledge of the availability of affordable housing, and on 
evidence of the tenant family's efforts to locate such housing; and
    (ii) Notify the tenant family in writing, at least 60 days in 
advance of the expiration of the deferral period, that termination will 
be deferred again (provided that the granting of another deferral will 
not result in aggregate deferral periods that exceed three years), and 
a determination was made that other affordable housing is not 
available; or
    (iii) Notify the tenant family in writing, at least 60 days in 
advance of the expiration of the deferral period, that termination of 
financial assistance will not be deferred because either granting 
another deferral will result in aggregate deferral periods that exceed 
three years, or a determination has been made that other affordable 
housing is available.
    (e) Option to select proration of assistance at end of deferral 
period. A family who is eligible for and who receives temporary 
deferral of termination of assistance, may request, and the project 
owner or housing [[Page 14840]] authority shall provide proration of 
assistance at the end of the deferral period if the family has made a 
good faith effort during the deferral period to locate other affordable 
housing.
    (f) Notification of decision on family preservation assistance. A 
responsible entity shall notify the family of its decision concerning 
the family's qualification for assistance under this section. If the 
family is ineligible for assistance under this section, the 
notification shall state the reasons, which must be based on relevant 
factors. For tenant families, the notice also shall inform the family 
of any applicable appeal rights. (For HAs administering Certificate or 
Housing Voucher Programs, see Secs. 882.216 or 887.405 of this 
chapter).


Sec. 812.11  Proration of assistance.

    (a) Applicability. This section applies to a mixed family other 
than a family receiving continued assistance under Sec. 812.10(c), or 
other than a family for which termination of assistance is temporarily 
deferred under Sec. 812.10(d).
    (b) Method or prorating assistance--(1) Section 8 assistance other 
than Section 8 voucher assistance. For Section 8 assistance other than 
assistance provided under the Section 8 Voucher Program, the HA shall 
prorate the family's assistance as follows:
    (i) Step 1. Determine gross rent for the unit. (Gross rent is 
contract rent plus any allowance for tenant paid utilities).
    (ii) Step 2. Determine total tenant payment in accordance with 24 
CFR 813.107(a). (Annual income includes income of all family members, 
including any family member who has not established eligible 
immigration status).
    (iii) Step 3. Subtract amount determined in Step 2 from amount 
determined in Step 1.
    (iv) Step 4. Multiply the amount determined in Step 3 by a fraction 
for which:
    (A) The numerator is the number of family members who have 
established eligible immigration status; and
    (B) The denominator is the total number of family members.
    (v) Prorated housing assistance. The amount determined in Step 4 is 
the prorated housing assistance payment for a mixed family.
    (vi) No effect on contract rent. Proration of the housing 
assistance payment does not affect contract rent to the owner. The 
family must pay as rent the portion of contract rent not covered by the 
prorated housing assistance payment.
    (2) Section 8 Voucher assistance. For assistance under the Section 
8 Voucher Program, the HA shall prorate the family's assistance as 
follows:
    (i) Step 1. Determine the amount of the pre-proration voucher 
housing assistance payment in accordance with 24 CFR 887.353. (Annual 
income includes income of all family members, including any family 
member who has not established eligible immigration status.)
    (ii) Step 2. Multiply the amount determined in step 1 by a fraction 
for which:
    (A) The numerator is the number of family members who have 
established eligible immigration status; and
    (B) The denominator is the total number of family members.
    (iii) Prorated housing assistance. The amount determined in Step 2 
is the prorated housing assistance payment for a mixed family.
    (iv) No effect on rent to owner. Proration of the voucher housing 
assistance payment does not affect rent to the owner. The family must 
pay as rent the portion of rent not covered by the prorated housing 
assistance payment.


Sec. 812.12  Prohibition of assistance to noncitizen students.

    (a) General. The provisions of Secs. 812.10 and 812.11, permitting 
continued assistance, prorated assistance or temporary deferral of 
termination of assistance for certain families, do not apply to any 
person who is determined to be a noncitizen student, as defined in 
paragraph (b) of this section, or the family of the noncitizen student, 
as described in paragraph (c) of this section.
    (b) Noncitizen student. For purposes of this part, a noncitizen 
student is defined as a noncitizen who:
    (1) Has a residence in a foreign country that the person has no 
intention of abandoning;
    (2) Is a bona fide student qualified to pursue a full course of 
study; and
    (3) Is admitted to the United States temporarily and solely for 
purposes of pursuing such a course of study at an established 
institution of learning or other recognized place of study in the 
United States, particularly designated by such person and approved by 
the Attorney General after consultation with the Department of 
Education of the United States, which institution or place of study 
shall have agreed to report to the Attorney General the termination of 
attendance of each nonimmigrant student (and if any such institution of 
learning or place of study fails to make such reports promptly the 
approval shall be withdrawn).
    (c) Family of noncitizen student. The prohibition on providing 
assistance to a noncitizen student as described in paragraph (a) of 
this section also extends to the noncitizen spouse of the noncitizen 
student and minor children of any noncitizen student if the spouse or 
children are accompanying the student or following to join such 
student. The prohibition on providing assistance to a noncitizen 
student does not extent to the citizen spouse of the noncitizen student 
and the children of the citizen spouse and noncitizen student.


Sec. 812.13  Compliance with nondiscrimination requirements.

    The responsible entity shall administer the restrictions on use of 
assisted housing by noncitizens with ineligible immigration status 
imposed by this part in conformity with the nondiscrimination 
requirements of, including, but not limited to, title VI of the Civil 
Rights Act of 1964 (42 U.S.C. 2000d-2000d-5) and the implementing 
regulations in 24 CFR part 1, section 504 of the Rehabilitation Act of 
1973 (29 U.S.C. 794) and the implementing regulations in 24 CFR part 8, 
the Fair Housing Act (42 U.S.C. 3601-3619) and the implementing 
regulations in 24 CFR part 100, and other civil rights statutes cited 
in the applicable program regulations. These statutes prohibit, among 
other things, discriminatory practices on the basis of race, color, 
national origin, sex, religion, age, disability and familial status in 
the provision of housing.


Sec. 812.14  Protection from liability for responsible entities, State, 
local, and tribal government agencies and officials.

    (a) Protection from liability for responsible entities. HUD will 
not take any compliance, disallowance, penalty, or other regulatory 
action against a responsible entity with respect to any error in its 
determination of eligibility for financial assistance based on 
citizenship or immigration status:
    (1) If the responsible entity established eligibility based upon 
verification of eligible immigration status through the verification 
system described in Sec. 812.8;
    (2) Because the responsible entity was required to provide an 
opportunity for the family to submit evidence in accordance with 
Sec. 812.6;
    (3) Because the responsible entity was required to wait for 
completion of INS verification of immigration status in accordance with 
Sec. 812.8;
    (4) Because the responsible entity was required to wait for 
completion of the INS appeal process provided in accordance with 
Sec. 812.9(e); or [[Page 14841]] 
    (5) Because the responsible entity was required to provide an 
informal hearing in accordance with Sec. 812.9(f).
    (b) Protection from liability for State, local and tribal 
government agencies and officials. State, local and tribal government 
agencies and officials shall not be liable for the design or 
implementation of the verification system described in Sec. 812.8, and 
the informal hearings provided under Sec. 812.9(f), as long as the 
implementation by the State, local or tribal government agency or 
official is in accordance with prescribed HUD rules and requirements.
Sec. 812.15  Liability of ineligible families for reimbursement of 
benefits.

    Where a family has received the benefit of HUD financial assistance 
to which it was not entitled because the family intentionally 
misrepresented eligible status, the ineligible family is responsible 
for reimbursing HUD for the assistance improperly paid. If the amount 
of the assistance is substantial, the responsible entity is encouraged 
to refer the case to the HUD Regional Inspector General's office for 
further investigation. Possible criminal prosecution may follow based 
on the False Statements Act (18 U.S.C. 1001 and 1010).

PART 850--HOUSING DEVELOPMENT GRANTS

    28, The authority citation for part 850 continues to read as 
follows:

    Authority: 42 U.S.C. 1437o and 3535(d).

    29. Section 850.151 is amended by adding one sentence at the 
beginning of paragraph (c), by adding two sentences at the end of 
paragraph (f)(1), and by adding a new paragraph (f)(3), to read as 
follows:


Sec. 850.151  Project restrictions.

* * * * *
    (c) Tenant selection. The owner shall determine the eligibility of 
applicants for lower income units in accordance with the requirements 
of 24 CFR parts 812 and 813, including the provisions of these parts 
concerning citizenship or eligible immigration status and income 
limits, and certain assistance to mixed families (families whose 
members include those with eligible immigration status, and those 
without eligible immigration status.). * * *
* * * * *
    (f) * * *
    (1) * * * At the first regular reexamination after June 19, 1995 
the owner shall follow the requirements of 24 CFR part 812 concerning 
obtaining and processing evidence of citizenship or eligible 
immigration status of all family members. Thereafter, at each regular 
reexamination, the owner shall follow the requirements of 24 CFR part 
812 concerning verification of the immigration status of any new family 
member.
* * * * *
    (3) For provisions related to termination of assistance for failure 
to establish citizenship or eligible immigration status, see 24 CFR 
812.9, and also 24 CFR 812.10 for provisions related to certain 
assistance to mixed families (families whose members include those with 
eligible immigration status, and those without eligible immigration 
status) in lieu of termination of assistance, and for provisions 
related to deferral of termination of assistance.
* * * * *

PART 880--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR NEW 
CONSTRUCTION

    30. 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.

    31. In Sec. 880.504, a new paragraph (e) is added, to read as 
follows:


Sec. 880.504  Leasing to eligible families.

* * * * *
    (e) Termination of assistance for failure to submit evidence of 
citizenship or eligible immigration status. If an owner who is subject 
to paragraphs (a) and (b) of this section is required to terminate 
housing assistance payments for the family in accordance with 24 CFR 
812.9 because the owner determines that the entire family does not have 
U.S. citizenship or eligible immigration status, the owner may allow 
continued occupancy of the family without Section 8 assistance 
following the termination of assistance, or if the family constitutes a 
mixed family, as defined in 24 CFR 812.10, the owner shall simply with 
the provisions of 24 CFR 812.10 concerning assistance to mixed 
families, and deferral of termination of assistance.
    32. In Sec. 880.601, paragraph (b) is revised to read as follows:


Sec. 880.601  Responsibilities of owner.

* * * * *
    (b) Management and maintenance. The owner is responsible for all 
management functions, including determining eligibility of applicants 
in accordance with 24 CFR parts 812 and 813, provision of Federal 
selection preferences in accordance with Sec. 880.613, selection of 
tenants, obtaining and verifying Social Security Numbers submitted by 
families (as provided by 24 CFR part 750), obtaining signed consent 
forms from families for the obtaining of wage and claim information 
from State Wage Information Collection Agencies (as provided by 24 CFR 
part 760), reexamination of family income, evictions and other 
terminations of tenancy, and collection of rents, and all repair and 
maintenance functions (including ordinary and extraordinary maintenance 
and replacement of capital items). All these functions shall be 
performed in compliance with applicable Equal Opportunity requirements.
* * * * *
    33. Section 880.603 is amended by revising the introductory text in 
paragraph (b), by adding a sentence at the end of paragraph (b)(2), by 
adding a sentence at the end of paragraph (c)(1), and by adding one 
sentence at the end of paragraph (c)(2) and paragraph (c)(3), to read 
as follows:


Sec. 880.603  Selection and admission of assisted tenants.

* * * * *
    (b) Determination of eligibility and selection of tenants. The 
owner is responsible for obtaining and verifying information related to 
income in accordance with 24 CFR part 813, and evidence related to 
citizenship and eligible immigration status in accordance with 24 CFR 
part 812, to determine whether the applicant is eligible for assistance 
in accordance with the requirements of 24 CFR parts 812 and 813, and to 
select families for admission to the program, which includes giving 
selection preferences in accordance with Secs. 880.613 through 880.617.
* * * * *
    (2) * * * For the informal hearing provisions related to denial of 
assistance based upon failure to establish citizenship or eligible 
immigration status, see 24 CFR 812.9, and also 24 CFR 812.10 for 
provisions related to certain assistance for mixed families (families 
whose members include those with eligible immigration status, and those 
without eligible immigration status) in lieu of denial of assistance.
* * * * *
    (c) * * *
    (1) * * * At the first regular reexamination after June 19, 1995, 
the owner shall follow the requirements of 24 CFR part 812 concerning 
obtaining and processing evidence of citizenship or eligible 
immigration status of all family members. Thereafter, at each regular 
reexamination, the owner shall follow the requirements of 24 CFR part 
[[Page 14842]] 812 and verify the immigration status of any new family 
member.
    (2) * * * At any interim reexamination after June 19, 1995 when a 
new family member has been added, the owner shall follow the 
requirements of 24 CFR part 812 concerning obtaining and processing 
evidence of the citizenship or eligible immigration status of any new 
family member.
    (3) * * * For provisions requiring termination of assistance for 
failure to establish citizenship or eligible immigration status, see 24 
CFR 812.9, and also 24 CFR 812.10 for provisions concerning certain 
assistance for mixed families (families whose members include those 
with eligible immigration status, and those without eligible 
immigration status) in lieu of termination of assistance, and for 
provisions concerning deferral of termination of assistance.
* * * * *
    34. Section 880.607 is amended by redesignating the first sentence 
following the paragraph heading in the introductory text of paragraph 
(b)(3) as paragraph (b)(3)(i); by redesignating the existing paragraphs 
(b)(3)(i) and (b)(3)(ii) as (b)(3)(i)(A) and (b)(3)(i)(B), 
respectively; by redesignating and revising the undesignated paragraph 
in (b)(3) as (b)(3)(ii) and by adding a new paragraph (c)(4) to read as 
follows:


Sec. 880.607  Termination of tenancy and modification of lease.

* * * * *
    (b) * * *
    (3) * * *
    (ii) Failure of the family to timely submit all required 
information on family income and composition, including failure to 
submit required evidence of citizenship or eligible immigration status 
(as provided by 24 CFR part 812), failure to disclose and verify Social 
Security Numbers (as provided by 24 CFR part 750), failure to sign and 
submit consent forms (as provided by 24 CFR part 760), or knowingly 
providing incomplete or inaccurate information, shall constitute a 
substantial violation of the lease.
    (c) * * *
    (4) For provisions related to termination of assistance because of 
failure to establish citizenship or eligible immigration status, 
including informal hearing procedures, see 24 CFR part 812.9, and also 
24 CFR 812.10 for provisions concerning certain assistance for mixed 
families (families whose members include those with eligible 
immigration status, and those without eligible immigration status) in 
lieu of termination of assistance, and for provisions concerning 
deferral of termination of assistance.
* * * * *

PART 881--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR 
SUBSTANTIAL REHABILITATION

    35. 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.

    36. In Sec. 881.504, a new paragraph (e) is added to read as 
follows:


Sec. 881.504  Leasing to eligible families.

* * * * *
    (e) Termination of assistance for failure to submit evidence of 
citizenship or eligible immigration status. If an owner who is subject 
to paragraphs (a) and (b) of this section is required to terminate 
financial assistance in accordance with 24 CFR 812.9 because the owner 
determines that the entire family does not have U.S. citizenship or 
eligible immigration status, the owner may allow continued occupancy of 
the unit by the family without Section 8 assistance following the 
termination of assistance, or if the family constitutes a mixed family, 
as defined in 24 CFR 812.10, the owner shall comply with the provisions 
of 24 CFR 812.10 concerning certain assistance to mixed families, and 
deferral of termination of assistance.
    37. In Sec. 881.601, paragraph (b) is revised to read as follows:


Sec. 881.601  Responsibilities of owner.

* * * * *
    (b) Management and maintenance. The owner is responsible for all 
management functions (including determining eligibility of applicants 
in accordance with 24 CFR parts 812 and 813, provision of Federal 
selection preferences in accordance with 24 CFR 880.613, selection of 
tenants, obtaining and verifying Social Security Numbers submitted by 
families (as provided by 24 CFR part 750), obtaining signed consent 
forms from families for the obtaining of wage and claim information 
from State Wage Information Collection Agencies (as provided by 24 CFR 
part 760), reexamination of family income, evictions and other 
terminations of tenancy, and collection of rents) and all repair and 
maintenance functions (including ordinary and extraordinary maintenance 
and replacement of capital items). All these functions shall be 
performed in compliance with applicable Equal Opportunity requirements.
* * * * *
    38. Section 881.603 is amended by revising the introductory text of 
paragraph (b), by adding one sentence at the end of paragraph (b)(3), 
by adding two sentences at the end of paragraph (c)(1), and by adding 
one sentence at the end of paragraphs (c)(2) and (c)(3), to read as 
follows:


Sec. 881.603  Selection and admission of assisted tenants.

* * * * *
    (b) Determination of eligibility and selection of tenants. The 
owner is responsible for obtaining and verifying information related to 
income in accordance with 24 CFR part 813, and evidence related to 
citizenship and eligible immigration status in accordance with 24 CFR 
part 812 to determine whether the applicant is eligible for assistance 
in accordance with the requirements of 24 CFR parts 812 and 813 and 
parts 750 and 760 of chapter VII, and to select families for admission 
to the program, which includes giving selection preferences in 
accordance with Secs. 881.613 through 881.617.
* * * * *
    (3) * * * For the informal hearing provisions related to denial of 
assistance based upon failure to establish citizenship or eligible 
immigration status, see 24 CFR part 812.9, and also 24 CFR 812.10 for 
provisions concerning certain assistance for mixed families (families 
whose members include those with eligible immigration status, and those 
without eligible immigration status) in lieu of denial of assistance.
* * * * *
    (c) * * *
    (1) * * * At the first regular reexamination after June 19, 1995, 
the owner shall follow the requirements of 24 CFR part 812 concerning 
obtaining and processing evidence of citizenship or eligible 
immigration status of all family members. Thereafter, at each regular 
reexamination, the owner shall follow the requirements of 24 CFR part 
812 concerning verification of the immigration status of any new family 
member.
    (2) * * * At any interim reexamination after June 19, 1995 when a 
new family member has been added, the owner shall follow the 
requirements of 24 CFR part 812 concerning obtaining and processing 
evidence of citizenship or eligible immigration status of the new 
family member.
    (3) * * * For provisions requiring termination of assistance for 
failure to establish citizenship or eligible immigration status, see 24 
CFR 812.9, and also 24 CFR 812.10 for provisions concerning certain 
assistance for mixed families (families whose members 
[[Page 14843]] include those with eligible immigration status, and 
those without eligible immigration status) in lieu of termination of 
assistance, and for provisions concerning deferral of termination of 
assistance.
* * * * *
    39. In Sec. 881.607, the second sentence of paragraph (b)(3)(ii) is 
revised, and a new paragraph (c)(4) is added, to read as follows:


Sec. 881.607  Termination of tenancy and modification of lease.

* * * * *
    (b) * * *
    (3) * * *
    (ii) * * * Failure of the family to timely submit all required 
information on family income and composition, including failure to 
submit required evidence of citizenship or eligible immigration status 
(as provided by 24 CFR part 812), failure to disclose and verify Social 
Security Numbers (as provided by 24 CFR part 750), failure to sign and 
submit consent forms (as provided by 24 CFR part 760), or knowingly 
provided incomplete or inaccurate information, shall constitute a 
substantial violation of the lease. * * *
    (c) * * *
    (4) For provisions related to termination of assistance because of 
failure to establish citizenship or eligible immigration status, 
including the informal hearing procedures, see 24 CFR 812.9, and also 
24 CFR 812.10 for provisions concerning certain assistance for mixed 
families (families whose members include those with eligible 
immigration status, and those without eligible immigration status) in 
lieu of termination of assistance, and for provisions concerning 
deferral of termination of assistance.
* * * * *

PART 882--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM--EXISTING 
HOUSING

    40. The authority citation for part 882 continues to read as 
follows:

    Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d) and 11401.

    41. In Sec. 882.116, paragraph (c) is revised to read as follows:


Sec. 882.116  Responsibilities of the PHA.

* * * * *
    (c) Receipt and review of applications for participation; selection 
of applicants; verification of family income and other factors relating 
to eligibility (including citizenship or eligible immigration status as 
provided by 24 CFR part 812) and amount of assistance; and maintenance 
of a waiting list.
* * * * *
    42. In Sec. 882.118, paragraph (a)(1) is revised to read as 
follows:


Sec. 882.118  Obligations of the Family.

    (a) * * *
    (1) Supply such certification, release, information or 
documentation as the PHA or HUD determine to be necessary, including 
submission of required evidence of citizenship or eligible immigration 
status (as provided by 24 CFR part 812), submission of Social Security 
Numbers and verifying documentation (as provided by 24 CFR part 750), 
submission of signed consent forms for the obtaining of wage and claim 
information from State Wage Information Collection Agencies (as 
provided by 24 CFR part 760), and submissions required for an annual or 
interim reexamination of family income and composition.
* * * * *
    43. In Sec. 882.209, paragraph (a)(2) is revised to read as 
follows:


Sec. 882.209  Selection and participation.

    (a) * * *
    (2)(i) The PHA shall determine whether an applicant for 
participation:
    (A) Qualifies as a family;
    (B) Is income eligible; and
    (C) Is a citizen or is in eligible immigration status as determined 
in accordance with 24 CFR part 812.
    (ii) The family shall submit any certification, release, 
information, or documentation as the PHA or HUD determines to be 
necessary (see the requirements in 24 CFR parts 750, 760, 812, and 
813).
* * * * *
    44. In Sec. 882.210, a new paragraph (f) is added to read as 
follows:


Sec. 882.210  Grounds for denial or termination of assistance.

* * * * *
    (f) The family's obligations as stated in Sec. 882.118 include 
submission of required evidence of citizenship or eligible immigration 
status. For a statement of circumstances in which the PHA shall deny or 
terminate housing assistance payments because a family member is not a 
U.S. citizen or does not establish eligible immigration status, and the 
applicable informal hearing procedures, see Sec. 882.216(b) and 24 CFR 
812.9, and also 24 CFR 812.10 for provisions concerning certain 
assistance for mixed families (families whose members include those 
with eligible immigration status, and those without eligible 
immigration status) in lieu of denial or termination of assistance, and 
for provisions concerning deferral of termination of assistance.
    45. Section 882.212 is amended by adding two sentences at the end 
of paragraph (a), and by adding one sentence at the end of paragraphs 
(b) and (c), to read as follows:


Sec. 882.212  Reexamination of Family income and composition.

    (a) * * * At the first regular reexamination after June 19, 1995, 
the PHA shall follow the requirements of 24 CFR part 812 concerning 
obtaining and processing evidence of citizenship of eligible 
immigration status of all family members. Thereafter, at each regular 
reexamination, the PHA shall follow the requirements of 24 CFR part 812 
concerning verification of the immigration status of any new family 
member (except a child born in the United States).
    (b) * * * At any interim reexamination after June 19, 1995 when 
there is a new family member, the PHA shall follow the requirements of 
24 CFR part 812 concerning obtaining and processing evidence of 
citizenship or eligible immigration status of the new family member.
    (c) * * * For provisions requiring termination of housing 
assistance payments when the PHA determines that a member is not a U.S. 
citizen or does not have eligible immigration status, see Sec. 882.216 
and 24 CFR 812.9, and also 24 CFR 812.10 for provisions concerning 
certain assistance for mixed families (families whose members include 
those with eligible immigration status, and those without eligible 
immigration status) in lieu of termination of assistance, and for 
provisions concerning deferral of termination of assistance.
* * * * *
    46. Section 882.216 is amended by adding a new paragraph (a)(5) and 
new paragraphs (b)(1)(v) and (b)(8), to read as follows:


Sec. 882.216  Informal review or hearing.

    (a) * * *
    (5) The informal hearing provisions for the denial of assistance on 
the basis of ineligible immigration status are contained in 24 CFR 
812.9.
    (b) * * *
    (1) * * *
    (v) A determination that the participant does not qualify under the 
PHA's policy for granting special relief under 24 CFR 812.10.
* * * * *
    (8) The informal hearing provisions for the termination of 
assistance on the [[Page 14844]] basis of ineligible immigration status 
are contained in 24 CFR 812.9.
* * * * *
    47. In Sec. 882.514, paragraph (f) is amended by adding one 
sentence at the end of the paragraph, to read as follows:


Sec. 882.514  Family participation.

* * * * *
    (f) * * * The informal hearing requirements for denial and 
termination of assistance on the basis of ineligible immigration status 
are contained in 24 CFR 812.9.
* * * * *
    48. Section 882.515 is amended by adding two sentences at the end 
of paragraph (a), and by adding one sentence at the end of paragraphs 
(b) and (c), to read as follows:


Sec. 882.515  Reexamination of family income and composition.

    (a) * * * At the first regular reexamination after June 19, 1995, 
the PHA shall follow the requirements of 24 CFR part 812 concerning 
obtaining and processing evidence of citizenship or eligible 
immigration status of all family members. Thereafter, at each regular 
reexamination, the PHA shall follow the requirements of 24 CFR part 812 
concerning verification of immigration status of any new family member.
    (b) * * * At any interim reexamination after June 19, 1995 when 
there is a new family member, the PHA shall follow the requirements of 
24 CFR part 812 concerning obtaining and processing evidence of 
citizenship or eligible immigration status of the new family member.
    (c) * * * For provisions requiring termination of assistance when 
the PHA determines that a family member is not a U.S. citizen or does 
not have eligible immigration status, see Sec. 882.216 and 24 CFR 812.9 
and also 24 CFR 812.10 for provisions concerning certain assistance for 
mixed families (families whose members include those with eligible 
immigration status, and those without eligible immigration status) in 
lieu of termination of assistance, and for provisions concerning 
deferral of termination of assistance.
    48a. Section 882.808 is amended by adding two sentences at the end 
of paragraph (i)(1), one sentence at the end of paragraphs (i)(2), and 
a sentence at the end of paragraph (l), to read as follows:


Sec. 882.808  Management.

* * * * *
    (i) * * *
    (1) * * * At the first regular reexamination after June 19, 1995, 
the PHA shall follow the requirements of 24 CFR part 812 concerning 
obtaining and processing evidence of citizenship or eligible 
immigration status of all family members. Thereafter, at each regular 
reexamination, the PHA shall follow the requirements of 24 CFR part 812 
concerning verification of immigration status of any new family member.
    (2) * * * At any interim reexamination after June 19, 1995 when 
there is a new family member, the PHA shall follow the requirements of 
24 CFR part 812 concerning obtaining and processing evidence of 
citizenship or eligible immigration status of the new family member.
* * * * *
    (1) * * * For provisions requiring termination of assistance when 
the PHA determines that a family member is not a U.S. citizen or does 
not have eligible immigration status, see Sec. 882.216 and 24 CFR 
812.9, and also 24 CFR 812.10 for provisions concerning certain 
assistance for mixed families (families whose members include those 
with eligible immigration status, and those without eligible 
immigration status) in lieu of termination of assistance, or for 
provisions concerning deferral of termination of assistance.
* * * * *

PART 883--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM--STATE 
HOUSING AGENCIES

    49. The authority citation for part 883 continues to read as 
follows:

    Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
13619.

    50. In Sec. 883.101, the last sentence of paragraph (c) is revised 
to read as follows:


Sec. 883.101  General.

* * * * *
    (c) * * * Eligible families are families, as defined in 24 CFR part 
812, whose incomes qualify them for assistance in accordance with 24 
CFR part 813, and who are otherwise eligible under these parts.
* * * * *
    51. In Sec. 883.605, a new paragraph (e) is added, to read as 
follows:


Sec. 883.605  Leasing to eligible families.

* * * * *
    (e) Termination of assistance for failure to submit evidence of 
citizenship or eligible immigration status. If an owner who is subject 
to paragraphs (a) and (b) of this section is required to terminate 
financial assistance in accordance with 24 CFR 812.9 because the owner 
determines that the entire family does not have U.S. citizenship or 
eligible immigration status, the owner may allow continued occupancy of 
the unit by the family without Section 8 assistance following the 
termination of assistance, or if the family constitutes a mixed family, 
as defined in 24 CFR 812.10, the owner shall comply with the provisions 
of 24 CFR 812.10 concerning assistance to mixed families, and deferral 
of termination of assistance.
    52. In Sec. 883.702, the section heading and paragraph (b) are 
revised to read as follows:


Sec. 883.702  Responsibilities of the owner.

* * * * *
    (b) Management and maintenance. The owner is responsible for all 
management functions (including determination of the eligibility of 
applicants in accordance with 24 CFR parts 812 and 813, provision of 
Federal selection preferences in accordance with Sec. 883.714, 
selection of tenants, obtaining and verifying Social Security Numbers 
submitted by families (as provided by 24 CFR part 750), obtaining 
signed consent forms from families for the obtaining of wage and claim 
information from State Wage Information Collection Agencies (as 
provided by 24 CFR part 760), reexamination of family income, evictions 
and other terminations of tenancy, and collection of rents) and all 
repair and maintenance functions (including ordinary and extraordinary 
maintenance and replacement of capital items). All these functions 
shall be performed in compliance with applicable Equal Opportunity 
requirements.
* * * * *
    53. Section 883.704 is amended by adding one sentence at the end of 
paragraph (b)(3), two sentences at the end of paragraph (c)(1), and one 
sentence at the end of paragraphs (c)(2), and (c)(3), to read as 
follows:


Sec. 883.704  Selection and admission of tenants.

* * * * *
    (b) * * *
    (3) * * * For the informal hearing provisions related to denial of 
assistance based upon failure to establish citizenship or eligible 
immigration status, see 24 CFR 812.9, and also see 24 CFR 812.10 for 
provisions concerning certain assistance for mixed families (families 
whose members include those with eligible immigration status, and those 
without eligible immigration status) in lieu of denial of assistance.
* * * * *
    (c) * * * [[Page 14845]] 
    (1) * * * At the first regular reexamination after June 19, 1995, 
the owner shall follow the requirements of 24 CFR part 812 concerning 
obtaining and processing evidence of citizenship or eligible 
immigration status of all family members. Thereafter, at each regular 
reexamination, the owner shall follow the requirements of 24 CFR part 
812 concerning the verification of the immigration status of any new 
family member.
    (2) * * * At any interim reexamination after June 19, 1995 when 
there is a new family member, the owner shall follow the requirements 
of 24 CFR part 812 concerning obtaining and processing evidence of 
citizenship or eligible immigration status of the new family member.
    (3) * * * For provisions requiring termination of assistance for 
failure to establish citizenship or eligible immigration status, see 24 
CFR 812.9, and also 24 CFR 812.10 for provisions concerning certain 
assistance for mixed families (families whose members include those 
with eligible immigration status, and those without eligible 
immigration status) in lieu of termination of assistance, and for 
provisions concerning deferral of termination of assistance.
* * * * *
    54. In Sec. 883.708, the second sentence of paragraph (b)(3)(ii) 
beginning with ``Failure of * * *'' is revised, and a new paragraph 
(c)(4) is added, to read as follows:


Sec. 883.708  Termination of tenancy and modification of lease.

* * * * *
    (b) * * *
    (3) * * *
    (ii) * * * Failure of the family to timely submit all required 
information on family income and composition, including failure to 
submit required evidence of citizenship or eligible immigration status 
(as provided by 24 CFR part 812), failure to disclose and verify Social 
Security Numbers (as provided by 24 CFR part 750), failure to sign and 
submit consent forms (as provided by 24 CFR part 760), or knowingly 
provide incomplete or inaccurate information, shall constitute a 
substantial violation of the lease. * * *
* * * * *
    (c) * * *
    (4) For provisions requiring termination of assistance for failure 
to establish citizenship or eligible immigration status, including the 
applicable informal hearing requirements, see 24 CFR 812.9, and also 24 
CFR 812.10 for provisions concerning certain assistance for mixed 
families (families whose members include those with eligible 
immigration status, and those without eligible immigration status) in 
lieu of termination of assistance, and for provisions concerning 
deferral of termination of assistance.
* * * * *

PART 884--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM, NEW 
CONSTRUCTION SET-ASIDE FOR SECTION 515 RURAL RENTAL HOUSING 
PROJECTS

    55. The authority citation for part 884 continues to read as 
follows:

    Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
13619.

    56. In Sec. 884.118, paragraph (a)(3) is revised to read as 
follows:
Sec. 884.118  Responsibilities of the owner.

    (a) * * *
    (3) Performance of all management functions, including the taking 
of applications; determining eligibility of applicants in accordance 
with 24 CFR parts 812 and 813; selection of families, including 
verification of income, provision of Federal selection preference in 
accordance with Sec. 884.226, obtaining and verifying Social Security 
Numbers submitted by applicants (as provided by 24 CFR part 750), 
obtaining signed consent forms from applicants for the obtaining of 
wage and claim information from State Wage Information Collection 
Agencies (as provided in 24 CFR part 760), and other pertinent 
requirements; and determination of the amount of tenant rent in 
accordance with HUD established schedules and criteria.
* * * * *
    57. In Sec. 884.214, paragraph (b)(1) is revised and a new 
paragraph (b)(8) is added, to read as follows:


Sec. 884.214  Marketing.

* * * * *
    (b) Eligibility, selection and admission of families. (1) The owner 
is responsible for determination of eligibility of applicants in 
accordance with the procedure of 24 CFR part 812, selection of families 
from among those determined to be eligible (including provision of 
Federal selection preferences in accordance with Sec. 884.226), and 
computation of the amount of housing assistance payments on behalf of 
each selected family, in accordance with schedules and criteria 
established by HUD.
* * * * *
    (8) For the informal hearing provisions related to denial of 
assistance based upon failure to establish citizenship or eligible 
immigration status, see 24 CFR 812.9, and also 24 CFR 812.10 for 
provisions concerning certain assistance for mixed families (families 
whose members include those with eligible immigration status, and those 
without eligible immigration status) in lieu of denial of assistance.
    58. In Sec. 884.216, a new sentence is added at the end of the 
paragraph to read as follows:


Sec. 884.216  Termination of tenancy.

    * * * For provisions requiring termination of assistance for 
failure to establish citizenship or eligible immigration status, 
including the applicable informal requirements, see 24 CFR 812.9, and 
also 24 CFR 812.10 for provisions concerning assistance for mixed 
families (families whose members include those with eligible 
immigration status, and those without eligible immigration status) in 
lieu of termination of assistance, and for provisions concerning 
deferral of termination of assistance.
    59. Section 884.218 is amended by adding two sentences at the end 
of paragraph (a), and one sentence at the end of paragraphs (b) and 
(c), to read as follows:


Sec. 884.218  Reexamination of family income and composition.

    (a) * * * At the first regular reexamination after June 19, 1995, 
the owner shall follow the requirements of 24 CFR part 812 concerning 
obtaining and processing evidence of citizenship or eligible 
immigration status of all family members. Thereafter, at each regular 
reexamination, the owner shall follow the requirements of 24 CFR part 
812 concerning verification of the immigration status of any new family 
member.
    (b) * * * At any interim reexamination after June 19, 1995 when 
there is a new family member, the owner shall follow the requirements 
of 24 CFR part 812 concerning obtaining and processing evidence of 
citizenship or eligible immigration status of the new family member.
    (c) * * * For provisions requiring termination of assistance for 
failure to establish citizenship or eligible immigration status, see 24 
CFR 812.9, and also 24 CFR 812.10 for provisions concerning certain 
assistance for mixed families (families whose members include those 
with eligible immigration status, and those without eligible 
immigration status) in lieu of termination of assistance, and for 
provisions concerning deferral of termination of 
assistance. [[Page 14846]] 
    60. In Sec. 884.223, a new paragraph (e) is added to read as 
follows:


Sec. 884.223  Leasing to eligible families.

* * * * *
    (e) Termination of assistance for failure to establish citizenship 
or eligible immigration status. If an owner subject to paragraphs (a) 
and (b) of this section is required to terminate housing assistance 
payments for the family in accordance with Sec. 812.9 of this chapter 
because the owner determines that the entire family does not have U.S. 
citizenship or eligible immigration status, the owner may allow 
continued occupancy of the unit by the family without Section 8 
assistance following the termination of assistance, or if the family 
constitutes a mixed family, as defined in 24 CFR 812.10, the owner 
shall comply with the provisions of 24 CFR 812.10 concerning assistance 
to mixed families, and deferral of termination of assistance.

PART 886--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM--SPECIAL 
ALLOCATIONS

    61. The authority citation for part 886 continues to read as 
follows:

    Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
13619.

    62. In Sec. 886.119, the section heading and paragraph (a)(3) are 
revised to read as follows:


Sec. 886.119  Responsibilities of the owner.

    (a) * * *
    (3) Performance of all management functions, including the taking 
of applications; determining eligibility of applicants in accordance 
with 24 CFR parts 812 and 813; selection of families, including 
verification of income, provision of Federal selection preferences in 
accordance with Sec. 886.132, obtaining and verifying Social Security 
Numbers submitted by applicants (as provided by 24 CFR part 750), 
obtaining signed consent forms from applicants for the obtaining of 
wage and claim information from State Wage Information Collection 
Agencies (as provided in 24 CFR part 760), and other pertinent 
requirements; and determination of the amount of tenant rent in 
accordance with HUD established schedules and criteria.
* * * * *
    63. In Sec. 886.121, paragraph (b) is revised and a new paragraph 
(c) is added, to read as follows:
Sec. 886.121  Marketing.

* * * * *
    (b) The Owner shall comply with the applicable provisions of the 
Contract, this subpart A, and the procedures of 24 CFR part 812 in 
taking applications, selecting families, and all related 
determinations.
    (c) For the informal hearing provisions related to denial of 
assistance based upon failure to establish citizenship or eligible 
immigration status, see 24 CFR 812.9, and also 24 CFR 812.10 for 
provisions concerning certain assistance for mixed families (families 
whose members include those with eligible immigration status, and those 
without eligible immigration status) in lieu of denial of assistance.
    64. Section 886.124 is amended by adding two sentences at the end 
of paragraph (a), and one sentence at the end of paragraphs (b) and 
(c), to read as follows:


Sec. 886.124  Reexamination of family income and composition.

    (a) * * * At the first regular reexamination after June 19, 1995, 
the owner shall follow the requirements of 24 CFR part 812 concerning 
obtaining and processing evidence of citizenship or eligible 
immigration status of all family members. Thereafter, at each regular 
reexamination, the owner shall follow the requirements of 24 CFR part 
812 concerning verification of the immigration status of any new family 
member.
    (b) * * * At any interim reexamination after June 19, 1995, when 
there is a new family member, the owner shall follow the requirements 
of 24 CFR part 812 concerning obtaining and processing evidence of 
citizenship or eligible immigration status of the new family member.
    (c) * * * For provisions requiring termination of assistance for 
failure to establish citizenship or eligible immigration status, see 24 
CFR 812.9 and also 24 CFR 812.10 for provisions concerning certain 
assistance for mixed families (families whose members include those 
with eligible immigration status, and those without eligible 
immigration status) in lieu of termination of assistance, and for 
provisions concerning deferral of termination of assistance
    65. Section 886.128 is revised to read as follows:


Sec. 886.128  Termination of tenancy.

    Part 247 of this title applies to the termination of tenancy and 
eviction of a family assisted under this subpart. For cases involving 
termination of tenancy because of a failure to establish citizenship or 
eligible immigration status, the procedures of 24 parts 247 and 812 
shall apply. The provisions of 24 CFR 812.10 concerning certain 
assistance for mixed families (families whose members include those 
with eligible immigration status, and those without eligible 
immigration status) in lieu of termination of assistance, and 
concerning deferral of termination of assistance also shall apply.
    66. In Sec. 886.129, a new paragraph (e) is added, to read as 
follows:


Sec. 886.129  Leasing to eligible families.

* * * * *
    (e) Termination of assistance for failure to establish citizenship 
or eligible immigration status. If an owner subject to paragraphs (a) 
and (b) of this section is required to terminate housing assistance 
payments for the family in accordance with 24 CFR 812.9 because the 
owner determines that the entire family does not have U.S. citizenship 
or eligible immigration status, the owner may allow continued occupancy 
of the unit by the family without Section 8 assistance following the 
termination of assistance, or if the family constitutes a mixed family, 
as defined in 24 CFR 812.10, the owner shall comply with the provisions 
of 24 CFR 812.10 concerning assistance to mixed families, and deferral 
of termination of assistance
    67. In Sec. 886.318, paragraph (a)(3) is revised to read as 
follows:


Sec. 886.318  Responsibilities of the owner.

    (a) * * *
    (3) Performance of all management functions, including the taking 
of applications; determining eligibility of applicants in accordance 
with 24 CFR parts 812 and 813; selection of families, including 
verification of income, provision of Federal selection preferences in 
accordance with Sec. 886.337, obtaining and verifying Social Security 
Numbers submitted by applicants (as provided by 24 CFR part 750), 
obtaining signed consent forms from applicants for the obtaining of 
wage and claim information from State Wage Information Collection 
Agencies (as provided in 24 CFR part 760), and other pertinent 
requirements; and determination of the amount of tenant rent in 
accordance with HUD established schedules and criteria.
* * * * *
    68. In Sec. 886.321, the first two sentences of paragraph (b)(1) 
are revised and a new paragraph (b)(7) is added, to read as follows:
Sec. 886.321  Marketing.

* * * * *
    (b)(1) HUD will determine the eligibility for assistance of 
families in occupancy before sales closing. After the sale, the owner 
shall be responsible for determining the eligibility of 
[[Page 14847]] applicants for tenancy (including compliance with the 
procedures of 24 CFR part 812 on evidence of citizenship or eligible 
immigration status), selection of families from among those determined 
to be eligible (including provision of Federal preferences in 
accordance with Sec. 886.337), and computation of the among of housing 
assistance payments on behalf of each selected family, in accordance 
with the Gross Rent and the Total Tenant Payment computed in accordance 
with 24 CFR part 813. * * *
* * * * *
    (7) For the informal hearing provisions related to denial of 
assistance based upon failure to establish citizenship or eligible 
immigration status, see 24 CFR 812.9, and 24 CFR 812.10 for provisions 
concerning certain assistance for mixed families (families whose 
members include those with eligible immigration status, and those 
without eligible immigration status) in lieu of denial of assistance.
* * * * *
    69. Section 886.324 is amended by adding two sentences at the end 
of paragraph (a), and one sentence at the end of paragraph (b) and (c), 
to read as follows:


Sec. 886.324  Reexamination of family income and composition.

    (a) * * * At the first regular reexamination after June 19, 1995, 
the owner shall follow the requirements of 24 CFR part 812 concerning 
obtaining and processing evidence of citizenship or eligible 
immigration status of all family members. Thereafter, at each regular 
reexamination, the owner shall follow the requirements of part 812 
concerning verification of the immigration status of any new family 
member.
    (b) * * * At any interim reexamination after June 19, 1995 when 
there is a new family member, the owner shall follow the requirements 
of 24 CFR part 812 concerning obtaining and processing evidence of 
citizenship or eligible immigration status of the new family member.
    (c) * * * For provisions requiring termination of assistance for 
failure to establish citizenship or eligible immigration status, see 24 
CFR 812.9, and also 24 CFR 812.10 for provisions concerning certain 
assistance for mixed families (families whose members include those 
with eligible immigration status, and those without eligible 
immigration status) in lieu of termination of assistance, and for 
provisions concerning deferral of termination of assistance.
    70. Section 886.328 is revised to read as follows:


Sec. 886.328  Termination of tenancy.

    Part 247 of this title applies to the termination of tenancy and 
eviction of a family assisted under this subpart. For cases involving 
termination of tenancy because of a failure to establish citizenship or 
eligible immigration status, the procedures of 24 CFR parts 247 and 812 
shall apply. The provisions of 24 CFR 812.10 concerning certain 
assistance for mixed families (families whose members include those 
with eligible immigration status, and those without eligible 
immigration status) in lieu of termination of assistance, and 
concerning deferral of termination of assistance also shall apply.
    71. In Sec. 886.329, a new paragraph (e) is added to read as 
follows:


Sec. 886.329  Leasing to eligible families.

* * * * *
    (e) Termination of assistance for failure to establish citizenship 
or eligible immigration status. If an owner who is subject to 
paragraphs (a) and (b) of this section is required to terminate housing 
assistance payments for the family in accordance with 24 CFR 812.9 
because the owner determines that the entire family does not have U.S. 
citizenship or eligible immigration status, the owner may allow 
continued occupancy of the unit by the family without Section 8 
assistance following the termination of assistance, or if the family 
constitutes a mixed family, as defined in 24 CFR 812.10, the owner 
shall comply with the provisions of 24 CFR 812.10 concerning assistance 
to mixed families, and deferral of termination of assistance.

PART 887--HOUSING VOUCHERS

    72. The authority citation for part 887 is revised to read as 
follows:

    Authority: 42 U.S.C. 1437a, 1437c, 1437f, and 3535(d).

    73. In Sec. 887.105, paragraph (b)(5) is revised to read as 
follows:


Sec. 887.105  PHA responsibilities.

* * * * *
    (b) * * *
    (5) Determine the amount of, and make, the housing assistance 
payment (see Sec. 887.353); obtain and verify evidence related to 
citizenship and eligible immigration status in accordance with 24 CFR 
part 812; reexamine the family income and family size and composition, 
at least annually, and redetermine the amount of the housing assistance 
payment (see Secs. 887.355 through 887.359); adjust the amount of the 
housing assistance payment as a result of an adjustment by the PHA of 
any applicable payment standard or utility allowance (see Secs. 887.353 
and 887.361); and
* * * * *
    74. In Sec. 887.355, paragraph (b) is redesignated as paragraph 
(c), and a new paragraph (b) is added, to read as follows:


Sec. 887.355  Regular reexamination of family income and composition.

* * * * *
    (b) At the first regular reexamination after June 19, 1995, the PHA 
shall follow the requirements of 24 CFR part 812 concerning obtaining 
and processing evidence of citizenship or eligible immigration status 
of all family members. Thereafter, at each regular reexamination, the 
PHA shall follow the requirements of 24 CFR part 812 concerning 
verification of the immigration status of any new family member.
* * * * *
    75. Section 887.357 is amended by adding a new sentence at the end, 
to read as follows:


Sec. 887.357  Interim reexamination of family income and composition.

    * * * At any interim reexamination after June 19, 1995 that 
involves the addition of a new family member, the PHA shall follow the 
requirements of 24 CFR part 812 concerning obtaining and processing 
evidence of citizenship or eligible immigration status of the new 
family member.
    76. In Sec. 887.401, paragraph (a), introductory text, and 
paragraph (a)(1) are revised, to read as follows:


Sec. 887.401  Family responsibilities.

    (a) A family shall:
    (1) Supply any certification, release, information, or 
documentation that the PHA or HUD determines to be necessary in the 
administration of the program, including submission of required 
evidence of citizenship or eligible immigration status (as provided by 
24 CFR part 812), disclosure and verification of Social Security 
Numbers (as provided by 24 CFR part 750), signing and submission of 
consent forms for the obtaining of wage and claim information from 
State Wage Information Collection Agencies (as provided by 24 CFR part 
760), and other information required for use by the PHA in a regularly 
scheduled reexamination or interim reexamination of family income and 
composition in accordance with HUD requirements;
* * * * *
    77. In Sec. 887.403, paragraphs (d) and (e) are redesignated as 
paragraphs (e) [[Page 14848]] and (f), and a new paragraph (d) is 
added, to read as follows:


Sec. 887.403  Grounds for PHA denial or termination of assistance.

* * * * *
    (d) The family's obligations as stated in Sec. 887.401 include 
submission of required evidence of citizenship or eligible immigration 
status. For a statement of circumstances in which the PHA shall deny or 
terminate assistance because of a family member's inability to 
establish citizenship or eligible immigration status, and the 
applicable informal hearing procedures, see 24 CFR 882.216 and 24 CFR 
812.9, and also 24 CFR 812.10 for provisions concerning certain 
assistance for mixed families (families whose members include those 
with eligible immigration status, and those without eligible 
immigration status) in lieu of denial or termination of assistance, and 
for provisions concerning deferral of termination of assistance.
* * * * *
    78. Section 887.405 is amended by adding a new paragraph (a)(4) and 
new paragraphs (b)(1)(iv) and (b)(8), to read as follows:


Sec. 887.405  Informal review or hearing.

    (a) * * *
    (4) The informal hearing provisions for the denial of assistance on 
the basis of ineligible immigration status are contained in 24 CFR 
812.9.
    (b) * * *
    (1) * * *
    (iv) A determination that the participant does not qualify under 
the PHA's policy for granting special assistance under 24 CFR 812.10.
* * * * *
    (8) The informal hearing provisions for the termination of 
assistance on the basis of ineligible immigration status are contained 
in 24 CFR 812.9.
* * * * *

PART 900--SECTION 23 HOUSING ASSISTANCE PAYMENTS PROGRAM--NEW 
CONSTRUCTION AND SUBSTANTIAL REHABILITATION

    79. The authority citation for part 900 continues to read as 
follows:

    Authority: 42 U.S.C. 1410(b) and 3535(d).

    80. In Sec. 900.102, the first sentence of paragraph (g) is revised 
to read as follows:


Sec. 900.102  Definitions.

* * * * *
    (g) Eligible families. Those families determined by the LHA to meet 
the requirements for admission into housing assisted under this part in 
accordance with 24 CFR parts 912 and 913 and other pertinent 
requirements. * * *
* * * * *
    81. Section 900.202 is amended by adding a new sentence to the end 
of paragraph (d)(3), and by redesignating existing paragraphs (g) and 
(h) as paragraphs (h) and (i) respectively, and by adding a new 
paragraph (g), to read as follows:


Sec. 900.202  Project operation.

* * * * *
    (d) * * *
    (3) * * * For provisions related to denial of assistance because of 
a failure to establish citizenship or eligible immigration status, the 
requirements of 24 CFR 960.207 and 24 CFR part 912 shall apply.
* * * * *
    (g) Termination of assistance. For provisions related to 
termination of assistance for failure to establish citizenship or 
eligible immigration status, the requirements of 24 CFR parts 912 and 
966 shall apply.
* * * * *

PART 904--LOW RENT HOUSING HOMEOWNERSHIP OPPORTUNITIES

    82. The authority citation for part 904 is revised to read as 
follows:

    Authority: 42 U.S.C. 1437-1437ee and 3535(d).

    83. In Sec. 904.104, the first sentence of paragraph (b)(1) and 
paragraph (g)(2) are revised, to read as follows:


Sec. 904.104  Eligibility and selection of homebuyers.

* * * * *
    (b) Eligibility and standards for admission. (1) Homebuyers shall 
be lower income families that are determined to be eligible for 
admission in accordance with the provisions of 24 CFR parts 912 and 
913, which prescribe income definitions, income limits, and 
restrictions concerning citizenship or eligible immigration status. * * 
*
* * * * *
    (g) * * *
    (2) Applicants who are not selected for a specific Turnkey III 
development shall be notified in accordance with HUD-approved 
procedure. The notice shall state:
    (i) The reason for the applicant's rejection (including a 
nonrecommendation by the recommending committee unless the applicant 
has previously been so notified by the committee);
    (ii) That the applicant will be given an information hearing on 
such determination, regardless of the reason for the rejection, if the 
applicant makes a request for such a hearing within a reasonable time 
(to be specified in the notice) from the date of the notice; and
    (iii) For denial of assistance for failure to establish citizenship 
or eligible immigration status, the applicant may request, in addition 
to the informal hearing, an appeal to the INS, in accordance with 24 
CFR 912.9.
* * * * *
    84. In Sec. 904.107, paragraphs (j)(2) and (m)(1) are revised to 
read as follows:


Sec. 904.107  Responsibilities of homebuyer.

* * * * *
    (j) * * *
    (2) For purposes of determining eligibility of an applicant (see 24 
CFR parts 912 and 913, as well as this part) and the amount of 
Homebuyer payments under paragraph (j)(1) of this section, the LHA 
shall examine the family's income and composition and follow the 
procedures required by 24 CFR part 912 for determining citizenship or 
eligible immigration status before initial occupancy. Thereafter, for 
the purposes stated above and to determine whether a Homebuyer is 
required to purchase the home under Sec. 904.104(h)(1), the LHA shall 
reexamine the Homebuyer's income and composition regularly, at least 
once every 12 months, and shall undertake such further determination 
and verification of citizenship or eligible immigration status as 
required by 24 CFR part 912. The Homebuyer shall comply with the LHA's 
policy regarding required interim reporting of changes in the family's 
income and composition. If the LHA receives information from the family 
or other source concerning a change in the family income or other 
circumstances between regularly scheduled reexaminations, the LHA, upon 
consultation with the family and verification of the information (in 
accordance with 24 CFR parts 912 and 913 of this chapter) shall 
promptly make any adjustments determined to be appropriate in the 
Homebuyer payment amount or take appropriate action concerning the 
addition of a family member who is not a citizen with eligible 
immigration status. Any change in the family's income or other 
circumstances that results in an adjustment in the Total Tenant Payment 
and Tenant Rent must be verified.
* * * * *
    (m) Termination by LHA. (1) In the event the homebuyer breaches the 
Homebuyers Ownership Opportunity Agreement by failure to make the 
required monthly payment within ten days after its due date, by 
[[Page 14849]] misrepresenting or withholding of information in 
applying for admission or in connection with any subsequent 
reexamination of income and family composition (including the failure 
to submit any required evidence of citizenship or eligible immigration 
status, as provided by 24 CFR part 912; the failure to meet the 
disclosure and verification requirements for Social Security Numbers, 
as provided by 24 CFR part 750; or the failure to sign and submit 
consent forms for the obtaining of wage and claim information from 
State Wage Information Collection Agencies, as provided by 24 CFR part 
760), or by failure to comply with any of the other homebuyer 
obligations under the Agreement, the LHA may terminate the Agreement. 
No termination under this paragraph may occur less than 30 days after 
the LHA gives the homebuyer notice of its intention to do so, in 
accordance with paragraph (m)(3) of this section. For termination of 
assistance for failure to establish citizenship or eligible immigration 
status under 24 CFR part 912, the requirements of 24 CFR parts 912 and 
966 shall apply.
* * * * *

PART 905--INDIAN HOUSING PROGRAMS

    85. The authority citation for part 905 continues to read as 
follows:

    Authority: 25 U.S.C. 450e(b); 42 U.S.C. 1437a, 1437aa, 1437bb, 
1437cc, 1437ee, and 3535(d).

    86. Section 905.102 is amended by adding definitions in 
alphabetical order for the terms ``Child,'' ``Citizen,'' ``Evidence of 
citizenship or eligible immigration status,'' ``Head of household,'' 
``INS,'' ``Mixed family,'' ``National,'' ``Noncitizen,'' ``Section 
214,'' and ``Section 214 covered program'' to read as follows:


Sec. 905.102  Definitions.

* * * * *
    Child. A member of the family, other than the family head or a 
spouse, who is under 18 years of age.
* * * * *
    Citizen. A citizen or national of the United States.
* * * * *
    Evidence of citizenship or eligible immigration status. The 
documents which must be submitted to evidence citizenship or eligible 
immigration status (see Sec. 905.310(e)).
* * * * *
    Head of household. The adult member of the family who is the head 
of the household for purposes of determining income eligibility and 
rent.
* * * * *
    INS. The U.S. Immigration and Naturalization Service.
* * * * *
    Mixed family. A family whose members include those with citizenship 
or eligible immigration status, and those without citizenship or 
eligible immigration status.
* * * * *
    National. A person who owes permanent allegiance to the United 
States, for example, as a result of birth in a United States territory 
or possession.
* * * * *
    Noncitizen. A person who is neither a citizen nor national of the 
United States.
* * * * *
    Section 214. Section 214 of the Housing and Community Development 
Act of 1980, as amended (42 U.S.C. 1436a). Section 214 restricts HUD 
from making financial assistance available for noncitizens unless they 
meet one of the categories of eligible immigration status specified in 
Section 214.
    Section 214 covered programs. Programs to which the restrictions 
imposed by Section 214 apply are programs that make available financial 
assistance pursuant to the United States Housing Act of 1937 (42 U.S.C. 
1437-1440), Section 235 or Section 236 of the National Housing Act (12 
U.S.C. 1715z and 1715z-1) and Section 101 of the Housing and Urban 
Development Act of 1965 (12 U.S.C. 1701s).
* * * * *
    87. Section 905.310 is added to read as follows:
Sec. 905.310  Restrictions on assistance to noncitizens.

    (a) Requirements concerning documents. For any notice or document 
(decision, declaration, consent form, etc.) that this section requires 
an IHA to provide to an individual, or requires that the IHA obtain the 
signature of the individual, the IHA, where feasible, must arrange for 
the notice or document to be provided to the individual in a language 
that is understood by the individual if the individual is not 
proficient in English. (See 24 CFR 8.6 of HUD's regulations for 
requirements concerning communications with persons with disabilities.)
    (b) Restrictions on assistance. Assistance provided under a Section 
214 covered program is restricted to:
    (1) Citizens; or
    (2) Noncitizens who have eligible immigration status in one of the 
following categories:
    (i) A noncitizen lawfully admitted for permanent residence, as 
defined by section 101(a)(20) of the Immigration and Nationality Act 
(INA), as an immigrant, as defined by section 101(a)(15) of the INA (8 
U.S.C. 1101(a)(20) and 1101(a)(15), respectively) (immigrants). (This 
category includes a noncitizen admitted under section 210 or 210A of 
the INA (8 U.S.C. 1160 or 1161), (special agricultural worker), who has 
been granted lawful temporary resident status);
    (ii) A noncitizen who entered the United States before January 1, 
1972, or such later date as enacted by law, and has continuously 
maintained residence in the United States since then, and who is not 
ineligible for citizenship, but who is deemed to be lawfully admitted 
for permanent residence as a result of an exercise of discretion by the 
Attorney General under section 249 of the INA (8 U.S.C. 1259);
    (iii) A noncitizen who is lawfully present in the United States 
pursuant to an admission under section 207 of the INA (8 U.S.C. 1157) 
(refugee status); pursuant to the granting of asylum (which has not 
been terminated) under section 208 of the INA (8 U.S.C. 1158) (asylum 
status); or as a result of being granted conditional entry under 
section 203(a)(7) of the INA (8 U.S.C. 1153(a)(7)) before April 1, 
1980, because of persecution or fear of persecution on account of race, 
religion, or political opinion or because of being uprooted by 
catastrophic national calamity;
    (iv) A noncitizen who is lawfully present in the United States as a 
result of an exercise of discretion by the Attorney General for 
emergent reasons or reasons deemed strictly in the public interest 
under section 212(d)(5) of the INA (8 U.S.C. 1182(d)(5)) (parole 
status);
    (v) A noncitizen who is lawfully present in the United States as a 
result of the Attorney General's withholding deportation under section 
243(h) of the INA (8 U.S.C. 1253(h)) (threat to life or freedom); or
    (vi) A noncitizen lawfully admitted for temporary or permanent 
residence under section 245A of the INA (8 U.S.C. 1255a) (amnesty 
granted under INA 245A).
    (c) Family eligibility for assistance. (1) A family shall not be 
eligible for assistance unless every member of the family residing in 
the unit is determined to have eligible status, as described in 
paragraph (b) of this section;
    (2) Despite the ineligibility of one or more family members, a 
mixed family [[Page 14850]] may be eligible for one of the three types 
of assistance provided in paragraph (r) of this section. A family 
without any eligible members and receiving assistance on June 19, 1995 
may be eligible for temporary deferral of termination of assistance as 
provided in paragraph (r) of this section.
    (d) Exemption of certain homebuyers from restrictions of this 
section. A homebuyer who executed a Homeownership Opportunity Agreement 
under the Turnkey III program or who executed a Mutual Help and 
Occupancy Agreement under the Mutual Help Homeownership program before 
June 19, 1995 is not subject to this citizenship or eligible 
immigration status requirement for continued participation in the 
program.
    (e) Submission of evidence of citizenship or eligible immigration 
status. 
    (1) General. Eligibility for assistance or continued assistance 
under a Section 214 covered program is contingent upon a family's 
submission to the IHA of the documents described in paragraph (e)(2) of 
this section for each family member. If one or more family members do 
not have citizenship or eligible immigration status, the members may 
exercise the election not to contend to have eligible immigration 
status as provided in paragraph (f) of this section, and the provisions 
of paragraph (r) of this section shall apply.
    (2) Evidence of citizenship or eligible immigration status. Each 
family, regardless of age, must submit the following evidence to the 
IHA:
    (i) For citizens, the evidence consists of a signed declaration of 
U.S. citizenship;
    (ii) For noncitizens who are 62 years of age or older or who will 
be 62 years of age or older and receiving assistance under a Section 
214 covered program on June 19, 1995, the evidence consists of:
    (A) A signed declaration of eligible immigration status; and
    (B) Proof of age document.
    (iii) For all other noncitizens, the evidence consists of:
    (A) A signed declaration of eligible immigration status;
    (B) The INS documents listed in paragraph (k)(2) of this section; 
and
    (C) A signed verification consent form.
    (3) Declaration. For each family member who contends that he or she 
is a U.S. citizen or a noncitizen with eligible immigration status, the 
family must submit to the IHA a written declaration, signed under 
penalty of perjury, by which the family member declares whether he or 
she is a U.S. citizen or a noncitizen with eligible immigration status.
    (i) For each adult, the declaration must be signed by the adult.
    (ii) For each child, the declaration must be signed by an adult 
residing in the assisted dwelling unit who is responsible for the 
child.
    (4) Verification consent form.--(i) Who signs. Each noncitizen who 
declares eligible immigration status, must sign a verification consent 
form as follows:
    (A) For each adult, the form must be signed by the adult;
    (B) For each child, the form must be signed by an adult member of 
the family residing in the assisted dwelling unit who is responsible 
for the child.
    (ii) Notice of release of evidence by IHA. The verification consent 
form shall provide that evidence of eligible immigration status may be 
released by the IHA, without responsibility for the further use or 
transmission of the evidence by the entity receiving it, to:
    (A) HUD as required by HUD; and
    (B) The INS for purposes of verification of the immigration status 
of the individual.
    (iii) Notice of release of evidence by HUD. The verification 
consent form also shall notify the individual of the possible release 
of evidence of eligible immigration status by HUD. Evidence of eligible 
immigration status shall only be released to the INS for purposes of 
establishing eligibility for financial assistance and not for any other 
purpose. HUD is not responsible for the further use or transmission of 
the evidence or other information by the INS.
    (f) Individuals who do not contend to have eligible immigration 
status. If one or more members of a family elect not to contend that 
they have eligible immigration status and the other members of the 
family establish their citizenship or eligible immigration status, the 
family may be considered for assistance under paragraphs (r) or (s) of 
this section despite the fact that no declaration or documentation of 
eligible status is submitted by one or more members of the family. The 
family, however, must identify to the IHA, the family member (or 
members) who will elect not to contend that he or she has eligible 
immigration status.
    (g) Notification of requirements of Section 214--(1) When notice is 
to be issued. Notification of the requirement to submit evidence of 
citizenship or eligible immigration status, as required by this 
section, or to elect not to contend that one has eligible immigration 
status as provided by paragraph (f) of this section, shall be given by 
the IHA as follows:
    (i) Applicant's notice. The notification described in paragraph 
(g)(1) of this section shall be given to each applicant at the time of 
application for financial assistance. Families whose applications are 
pending on June 19, 1995 shall be notified of the requirements to 
submit evidence of eligible status as soon as possible after June 19, 
1995.
    (ii) Notice to families already receiving assistance. For a family 
in occupancy on June 19, 1995, the notification described in paragraph 
(g)(1) of this section shall be given to each at the time of, and 
together with, the IHA's notice of the regular reexamination after that 
date, but no later than one year following June 19, 1995.
    (2) Form and content of notice. The notice shall:
    (i) State that financial assistance is contingent upon the 
submission and verification, as appropriate, of the evidence of 
citizenship or eligible immigration status, as required by this 
section;
    (ii) Describe the type of evidence that must be submitted and state 
the time period in which that evidence must be submitted (see paragraph 
(h) of this section concerning when evidence must be submitted); and
    (iii) State that assistance will be prorated, denied or terminated, 
as appropriate, upon a final determination of ineligibility after all 
appeals have been exhausted (see paragraph (n) of this section 
concerning INS appeal, and paragraph (o) of this section concerning IHA 
informal hearing process) or, if appeals are not pursued, at a time to 
be specified in accordance with HUD requirements. Families already 
receiving assistance also shall be informed of how to obtain assistance 
under the preservation of families provisions of paragraph (r) of this 
section.
    (h) When evidence of eligible status is required to be submitted. 
The IHA shall require evidence of eligible status to be submitted at 
the times specified in paragraph (h) of this section subject to any 
extension granted in accordance with paragraph (i) of this section.
    (1) Applicants. For applicants, the IHA must ensure that evidence 
of eligible status is submitted not later than the date the IHA 
anticipates or has knowledge that verification of other aspects of 
eligibility for assistance will occur (see paragraph (l) of this 
section).
    (2) Families already receiving assistance. For a family already 
receiving the benefit of assistance in a covered program on June 19, 
1995, the [[Page 14851]] required evidence shall be submitted at the 
first regular reexamination after June 19, 1995, in accordance with 
program requirements.
    (3) New occupants of assisted units. For any new family members, 
the required evidence shall be submitted at the first interim or 
regular reexamination following the person's occupancy.
    (4) Changing participation in a HUD program. Whenever a family 
applies for admission to a Section 214 covered program, evidence of 
eligible status is required to be submitted in accordance with the 
requirements of this part unless the family already has submitted the 
evidence to the IHA for a covered program.
    (5) One-time evidence requirement for continuous occupancy. For 
each family member, the family is required to submit evidence of 
eligible status only one time during continuously assisted occupancy 
under any covered program.
    (i) Extensions of time to submit evidence of eligible status--(1) 
When extension must be granted. The IHA shall extend the time, provided 
in paragraph (h) of this section, to submit evidence of eligible 
immigration status if the family member:
    (i) Submits the declaration required under paragraph (e)(3) of this 
section certifying that any person for whom required evidence has not 
been submitted is a noncitizen with eligible immigration status; and
    (ii) Certifies that the evidence needed to support a claim of 
eligible immigration status is temporarily unavailable, additional time 
is needed to obtain and submit the evidence, and prompt and diligent 
efforts will be undertaken to obtain the evidence.
    (2) Prohibition on indefinite extension period. Any extension of 
time, if granted, shall be for a specific period of time. The 
additional time provided should be sufficient to allow the family the 
time to obtain the evidence needed. The IHA's determination of the 
length of the extension needed, shall be based on the circumstances of 
the individual case.
    (3) Grant or denial of extension to be in writing. The IHA's 
decision to grant or deny an extension as provided in paragraph (i)(1) 
of this section shall be issued to the family by written notice. If the 
extension is granted, the notice shall specify the extension period 
granted. If the extension is denied, the notice shall explain the 
reasons for denial of the extension.
    (j) Failure to submit evidence or establish eligible immigration 
status. If the family fails to submit required evidence of eligible 
immigration status within the time period specified in the notice, or 
any extension granted in accordance with paragraph (i) of this section, 
or if the evidence is timely submitted but fails to establish eligible 
immigration status, the IHA shall proceed to deny, prorate or terminate 
assistance, or provide continued assistance or temporary deferral of 
termination of assistance, as appropriate, in accordance, respectively 
with the provisions of paragraph (m) of this section or paragraph (r) 
of this section.
    (k) Documents of eligible immigration status--(1) General. An IHA 
shall request and review original documents of eligible immigration 
status. The IHA shall retain photocopies of the documents for its own 
records and return the original documents to the family.
    (2) Acceptable evidence of eligible immigration status. The 
original of one of the following documents is acceptable evidence of 
eligible immigration status, subject to verification in accordance with 
paragraph (l) of this section:
    (i) Form I-551, Alien Registration Receipt Card (for permanent 
resident aliens);
    (ii) Form I-94, Arrival-Departure Record, with one of the following 
annotations:
    (A) ``Admitted as Refugee Pursuant to Section 207'';
    (B) ``Section 208'' or ``Asylum'';
    (C) ``Section 243(h)'' or ``Deportation stayed by Attorney 
General'';
    (D) ``Paroled Pursuant to Sec. 212(d)(5) of the INA'';
    (iii) If Form I-94, Arrival-Departure Record, is not annotated, 
then accompanied by one of the following documents:
    (A) A final court decision granting asylum (but only if no appeal 
is taken);
    (B) A letter from an INS asylum officer granting asylum (if 
application is filed on or after October 1, 1990) or from an INS 
district director granting asylum (if application filed before October 
1, 1990);
    (C) A court decision granting withholding or deportation; or
    (D) A letter from an INS asylum officer withholding of deportation 
(if application filed on or after October 1, 1990).
    (iv) Form I-688, Temporary Resident Card, which must be annotated 
``Section 245A'' or ``Section 210'';
    (v) Form I-688B, Employment Authorization Card, which must be 
annotated ``Provision of Law 274a.12(11)'' or ``Provision of Law 
274a.12'';
    (vi) A receipt issued by the INS indicating that an application for 
issuance of a replacement document in one of the above-listed 
categories has been made and the applicant's entitlement to the 
document has been verified; or
    (vii) If other documents are determined by the INS to constitute 
acceptable evidence of eligible immigration status, they will be 
announced by notice published in the Federal Register.
    (l) Verification of eligible immigration status.--(1) When 
verification is to occur. Verification of eligible immigration status 
shall be conducted by the IHA simultaneously with verification of other 
aspects of eligibility for assistance under a Section 214 covered 
program. (See paragraph (h) of this section.) The IHA shall verify 
eligible immigration status in accordance with the INS procedures 
described in this section.
    (2) Primary verification.--(i) Automated verification system. 
Primary verification of the immigration status of the person is 
conducted by the IHA through the INS automated system (INS Systematic 
for Alien Verification for Entitlements (SAVE). The INS SAVE system 
provides access to names, file numbers and admission numbers of 
noncitizens.
    (ii) Failure of primary verification to confirm eligible 
immigration status. If the INS SAVE system does not verify eligible 
immigration status, secondary verification must be performed.
    (3) Secondary verification--(i) Manual search of INS records. 
Secondary verification is a manual search by the INS of its records to 
determine an individual's immigration status. The IHA must request 
secondary verification, within 10 days of receiving the results of the 
primary verification, if the primary verification system does not 
confirm eligible immigration status, or if the primary verification 
system verifies immigration status that is ineligible for assistance 
under a covered Section 214 covered program.
    (ii) Secondary verification initiated by IHA. Secondary 
verification is initiated by the IHA forwarding photocopies of the 
original INS documents listed in paragraph (k)(2) of this section 
(front and back), attached to the INS document verification request 
form G-845S (Document Verification Request), or such other form 
specified by the INS, to a designated INS office for review. (Form G-
845S is available from the local INS Office.)
    (iii) Failure of secondary verification to conform eligible 
immigration status. If the secondary verification does not confirm 
eligible immigration status, the IHA shall issue to the family the 
notice [[Page 14852]] described in paragraph (m)(4) of this section, 
which includes notification of appeal to the INS of the INS finding on 
immigration status (see paragraph (m)(4)(iv) of this section).
    (4) Exemption from liability for INS verification. The IHA shall 
not be liable for any action, delay, or failure of the INS in 
conducting the automated or manual verification.
    (m) Delay, denial, or termination of assistance.--(1) Restrictions 
on delay, denial, or termination of assistance. Assistance to an 
applicant shall not be delayed or denied, and assistance to a tenant 
shall not be delayed, denied, or terminated, on the basis of ineligible 
immigration status of a family member if:
    (i) The primary and secondary verification of any immigration 
documents that were timely submitted has not been completed;
    (ii) The family member for whom required evidence has not been 
submitted has moved from the tenant's dwelling unit;
    (iii) The family member who is determined not to be in an eligible 
immigration status following INS verification has moved from the 
tenant's dwelling unit;
    (iv) The INS appeals process under paragraph (n) of this section 
has not been concluded;
    (v) For a tenant, the IHA hearing process under paragraph (o) of 
this section has not been concluded;
    (vi) Assistance is prorated in accordance with paragraph(s) of this 
section;
    (vii) Assistance for a mixed family is continued in accordance with 
paragraph (r) of this section; or
    (viii) Deferral of termination of assistance is granted in 
accordance with paragraph (r) of this section.
    (2) When delay of assistance to applicant is permissible. 
Assistance to an applicant may be delayed after the conclusion of the 
INS appeal process, but not denied until the conclusion of the IHA 
informal hearing process, if an informal hearing is requested by the 
family.
    (3) Events causing denial or termination of assistance. Assistance 
to an applicant shall be denied, and a tenant's assistance shall be 
terminated, in accordance with the procedures of this section, upon the 
occurrence of any of the following events:
    (i) Evidence of citizenship (i.e., the declaration) and eligible 
immigration status is not submitted by the date specified in paragraph 
(h) of this section, or by the expiration of any extension granted in 
accordance with paragraph (i) of this section; or
    (ii) The evidence of citizenship and eligible immigration status is 
timely submitted, but INS primary and second verification does not 
verify eligible immigration status of a family member; and
    (A) The family does not pursue INS appeal (as provided in paragraph 
(n) of this section) or IHA informal hearing rights (as provided in 
paragraph (o) of this section); or
    (B) INS appeal and informal hearing rights are pursued, but the 
final appeal or hearing decisions are decided against the family 
member.
    (4) Notice of denial or termination of assistance. The notice of 
denial or termination of assistance shall advise the family:
    (i) The financial assistance will be denied or terminated, and 
provide a brief explanation of the reasons for the proposed denial or 
termination of assistance;
    (ii) That the family may be eligible for proration of assistance as 
provided in paragraph(s) of this section;
    (iii) In the case of a tenant, the criteria and procedures for 
obtaining relief under the preservation of families provisions in 
paragraph (r) of this section;
    (iv) That the family has a right to request an appeal to the INS of 
the results of the secondary verification of immigration status, and to 
submit additional documentation or a written explanation in support of 
the appeal, in accordance with the procedures of paragraph (n) of this 
section;
    (v) That the family has a right to request an informal hearing with 
the IHA either upon completion of the INS appeal or in lieu of the INS 
appeal, as provided in paragraph (n) of this section;
    (vi) For applicants, the notice shall advise that assistance may 
not be delayed until the conclusion of the INS appeal process, but 
assistance may be delayed during the pendency of the IHA informal 
hearing process.
    (n) Appeal to the INS--(1) Submission of request for appeal. Upon 
receipt of notification by the IHA that INS secondary verification 
failed to confirm eligible immigration status, the IHA shall notify the 
family of the results of the INS verification, and the family shall 
have 30 days from the date of the IHA's notification, to request an 
appeal of the INS results. The request for appeal shall be made by the 
family communicating that request in writing directly to the INS. The 
family must provide the IHA with a copy of the written request for 
appeal and proof of mailing. For good cause shown, the IHA shall grant 
the family an extension of time within which to request an appeal.
    (2) Documentation to be submitted as part of appeal to INS. The 
family shall forward to the designated INS office any additional 
documentation or written explanation in support of the appeal. This 
material must include a copy of the INS document verification request 
form G-845S (used to process the secondary verification request) or 
such other form specified by the INS, and a cover letter indicating 
that the family is requesting an appeal of the INS immigration status 
verification results. (Form G-845S is available from the local INS 
Office.)
    (3) Decision by INS--(i) When decision will be issued. The INS will 
issue to the family, with a copy to the IHA, a decision within 30 days 
of its receipt of documentation concerning the family's appeal of the 
verification of immigration status. If, for any reason, the INS is 
unable to issue a decision within the 30 day time period, the INS will 
inform the family and the IHA of the reasons for the delay.
    (ii) Notification of INS decision and of informal hearing 
procedures. When the IHA receives a copy of the INS decision, the IHA 
shall notify the family of its right to request an informal hearing on 
the IHA's ineligibility determination in accordance with the procedures 
of paragraph (o) of this section.
    (4) No delay, denial or termination of assistance until completion 
of INS appeal process; direct appeal to INS. Pending the completion of 
the INS appeal under this section, assistance may not be delayed, 
denied or terminated on the basis of immigration status.
    (o) Informal hearing--(1) When request for hearing is to be made. 
After notification of the INS decision, or in lieu of request of appeal 
to the INS, the family may request that the IHA provide a hearing. This 
request must be made either within 14 days of the date the IHA mails or 
delivers the notice under paragraph (m)(4) of this section, or within 
14 days of the mailing of the INS appeal decision issued in accordance 
with paragraph (n)(4) of this section (established by the date of 
postmark).
    (2) Extension of time to request hearing. The IHA shall extend the 
period of time for requesting a hearing (for a specified period) upon 
good cause shown.
    (3) Informal hearing procedures. (i) For tenants, the procedures 
for the hearing before the IHA are set forth in Sec. 905.340.
    (ii) For applicants, the procedures for the informal hearing before 
the IHA are as follows: [[Page 14853]] 
    (A) Hearing before an impartial individual. The applicant shall be 
provided a hearing before any person(s) designated by the IHA 
(including an officer or employee of the IHA), other than a person who 
made or approved the decision under review, and other than a person who 
is a subordinate of the person who made or approved the decision;
    (B) Examination of evidence. The applicant shall be provided the 
opportunity to examine and copy, at the applicant's expense and at a 
reasonable time in advance of the hearing, any documents in the 
possession of the IHA pertaining to the applicant's eligibility status, 
or in the possession of the INS (as permitted by INS requirements), 
including any records and regulations that may be relevant to the 
hearing;
    (C) Presentation of evidence and arguments in support of eligible 
status. The applicant shall be provided the opportunity to present 
evidence and arguments in support of eligible status. Evidence may be 
considered without regard to admissibility under the rules of evidence 
applicable to judicial proceedings;
    (D) Controverting evidence of the project owner. The applicant 
shall be provided the opportunity to controvert evidence relied upon by 
the IHA and to confront and cross-examine all witnesses on whose 
testimony or information the IHA relies;
    (E) Representation. The applicant shall be entitled to be 
represented by an attorney, or other designee, at the applicant's 
expense, and to have such person make statements on the applicant's 
behalf;
    (F) Interpretive services. The applicant shall be entitled to 
arrange for an interpreter to attend the hearing, at the expense of the 
applicant or the IHA, as may be agreed upon by both parties;
    (G) Hearing to be recorded. The applicant shall be entitled to have 
the hearing recorded by audiotape (a transcript of the hearing may, but 
is not required to, be provided by the IHA); and
    (H) Hearing decision. The IHA shall provide the applicant with a 
written final decision, based solely on the facts presented at the 
hearing within 14 days of the date of the informal hearing. The 
decision shall state basis for the decision.
    (p) Judicial relief. A decision against a family member under the 
INS appeal process or the IHA informal hearing process does not 
preclude the family from exercising the right, that may otherwise be 
available, to seek redress directly through judicial procedures.
    (q) Retention of documents. The IHA shall retain for a minimum of 5 
years the following documents that may have been submitted to the IHA 
by the family or provided to the IHA as part of the INS appeal or the 
IHA informal hearing process:
    (1) The application for financial assistance;
    (2) The form completed by the family for income re-examination;
    (3) Photocopies of any original documents (front and back), 
including original INS documents;
    (4) The signed verification consent form;
    (5) The INS verification results;
    (6) The request for an INS appeal;
    (7) The final INS determination;
    (8) The request for an IHA informal hearing; and
    (9) The final hearing decision.
    (r) Preservation of mixed families and other families--(1) 
Assistance available for mixed families--(i) Assistance available for 
tenant mixed families. For a mixed family assisted under a Section 214 
covered program on June 19, 1995, and following the appeals and 
informal hearing procedures provided in paragraphs (n) and (o) of this 
section if utilized by the family, one of the following three types of 
assistance may be available to the family:
    (A) Continued assistance (see paragraph (r)(2) of this section);
    (B) Temporary deferral of termination of assistance (see paragraph 
(r)(3) of this section); or
    (C) Prorated assistance (see paragraph (s) of this section; a mixed 
family must be provided prorated assistance if the family so requests).
    (ii) Assistance available for applicant mixed families. Prorated 
assistance is also available for mixed families applying for 
assistance, as provided in paragraph (s) of this section.
    (iii) Assistance available to other families in occupancy. For 
families receiving assistance under a Section 214 covered program on 
June 19, 1995 and who have no members with eligible immigration status, 
the IHA may grant the family temporary deferral of termination of 
assistance.
    (2) Continued assistance. A mixed family may receive continued 
housing assistance if all of the following conditions are met:
    (i) The family was receiving assistance under a Section 214 covered 
program on June 19, 1995;
    (ii) The family's head of household or spouse has eligible 
immigration status as described in paragraph (b)(2) of this section; 
and
    (iii) The family does not include any person (who does not have 
eligible immigration status) other than the head of household, any 
spouse of the head of household, any parents of the head of household, 
any parents of the spouse, or any children of the head of household or 
spouse.
    (3) Temporary deferral of termination of assistance--(i) 
Eligibility for this type of assistance. If a mixed family qualifies 
for prorated assistance (and does not qualify for continued 
assistance), but decides not to accept prorated assistance, or if a 
family has no members with eligible immigration status, the family may 
be eligible for temporary deferral of termination of assistance if 
necessary to permit the family additional time for the orderly 
transition of those family members with ineligible status, and any 
other family members involved, to other affordable housing. Other 
affordable housing is used in the context of transition of an 
ineligible family from a rent level that reflects HUD assistance to a 
rent level that is unassisted; the term refers to housing that is not 
substandard, that is of appropriate size for the family and that can be 
rented for an amount not exceeding the amount that the family pays for 
rent, including utilities, plus 25 percent.
    (ii) Time limit on deferral period. If temporary deferral of 
termination of assistance is granted, the deferral period shall be for 
an initial period not to exceed six months. The initial period may be 
renewed for additional periods of six months, but the aggregate 
deferral period shall not exceed a period of three years.
    (iii) Notification requirements for beginning of each deferral 
period. At the beginning of each deferral period, the IHA must inform 
the family of its ineligibility for financial assistance and offer the 
family information concerning, and referrals to assist in finding, 
other affordable housing.
    (iv) Determination of availability of affordable housing at end of 
each deferral period. Before the end of each deferral period, the IHA 
must:
    (A) Make a determination of the availability of affordable housing 
of appropriate size based on evidence of conditions which when taken 
together will demonstrate an inadequate supply of affordable housing 
for the area in which the project is located, the consolidated plan (if 
applicable, as described in 24 CFR part 91), the IHA's own knowledge of 
the availability of affordable housing, and on evidence of the tenant 
family's efforts to locate such housing; and
    (B) Notify the tenant family in writing, at least 60 days in 
advance of the expiration of the deferral period, [[Page 14854]] that 
termination will be deferred again (provided that the granting of 
another deferral will not result in aggregate deferral periods that 
exceed three years), and a determination was made that other affordable 
housing is not available; or
    (C) Notify the tenant family in writing, at least 60 days in 
advance of the expiration of the deferral period, that termination of 
financial assistance will not be deferred because either granting 
another deferral will result in aggregate deferral periods that exceed 
three years, or a determination has been made that other affordable 
housing is available.
    (v) Option to select proration of assistance at end of deferral 
period. A family who is eligible for, and receives temporary deferral 
of termination of assistance, may request, and the IHA shall provide, 
proration of assistance at the end of the deferral period if the family 
has made a good faith effort during the deferral period to locate other 
affordable housing.
    (vi) Notification of decision on family preservation assistance. An 
IHA shall notify the family of its decision concerning the family's 
qualification for assistance under this section. If the family is 
ineligible for assistance under this section, the notification shall 
state the reasons, which must be based on relevant factors. For tenant 
families, the notice also shall inform the tenant family of any appeal 
rights.
    (s) Proration of assistance--(1) Applicability. This section 
applies to a mixed family other than a family receiving continued 
assistance under paragraph (r)(2) of this section, or other than a 
family who is eligible for and requests temporary deferral of 
termination of assistance under paragraph (r)(3) of this section. The 
IHA must provide an eligible mixed family prorated assistance if the 
family request prorated assistance.
    (2) Method of prorating assistance. The IHA shall prorate the 
family's assistance by:
    (i) Step 1. Determining total tenant payment in accordance with 
Sec. 905.325 (annual income includes income of all family members, 
including any family member who has not established eligible 
immigration status).
    (ii) Step 2. Subtracting the total tenant payment from a HUD-
supplied ``Indian housing maximum rent'' applicable to the unit or the 
housing authority. (``Indian housing maximum rent'' shall be determined 
by HUD using the 95th percentile rent for the housing authority.) The 
result is the maximum subsidy for which the family could qualify if all 
members were eligible (``family maximum subsidy'').
    (iii) Step 3. Dividing the family maximum subsidy by the number of 
persons in the family (all persons) to determine the maximum subsidy 
per each family member who has citizenship or eligible immigration 
status (``eligible family member''). The subsidy per eligible family 
member is the ``member maximum subsidy''.
    (iv) Step 4. Multiplying the member maximum subsidy by the number 
of family members who have citizenship or eligible immigration status 
(``eligible family members'').
    (v) Step 5. The product of steps 1-4, as set forth in paragraph 
(s)(2) of this section is the amount of subsidy for which the family is 
eligible (``eligible subsidy''). The family's rent is the ``public 
housing maximum rent'' minus the amount of the eligible subsidy.
    (t) Prohibition of assistance to noncitizen students--(1) General. 
The provisions of this section permitting continued assistance, 
prorated assistance or temporary deferral of termination of assistance 
for certain families, do not apply to any person who is determined to 
be a noncitizen student, as defined in paragraph (t)(2) of this 
section, or the family of the noncitizen student, as described in 
paragraph (t)(3) of this section.
    (2) Noncitizen student. For purposes of this part, a noncitizen 
student is defined as a noncitizen who:
    (i) Has a residence in a foreign country that the person has no 
intention of abandoning;
    (ii) Is a bona fide student qualified to pursue a full course of 
study; and
    (iii) Is admitted to the United States temporarily and solely for 
purposes of pursuing such a course of study at an established 
institution of learning or other recognized place of study in the 
United States, particularly designated by such person and approved by 
the Attorney General after consultation with the Department of 
Education of the United States, which institution or place of study 
shall have agreed to report to the Attorney General the termination of 
attendance of each nonimmigrant student (and if any such institution of 
learning or place of study fails to make such reports promptly the 
approval shall be withdrawn).
    (3) Family of noncitizen student. The prohibition on providing 
assistance to a noncitizen student as described in paragraph (t)(1) of 
this section also extends to the noncitizen spouse of the noncitizen 
student and minor children of any noncitizen student if the spouse or 
children are accompanying the student or following to join such 
student. The prohibition on providing assistance to a noncitizen 
student does not extend to the citizen spouse of the noncitizen student 
and the children of the citizen spouse and noncitizen student.
    (u) Protection from liability for IHAs, State, Tribal, and local 
government agencies and officials--(1) Protection from liability for 
IHAs. HUD will not take any compliance, disallowance, penalty, or other 
regulatory action against an IHA with respect to any error in its 
determination of eligibility for assistance based on citizenship or 
immigration status:
    (i) If the IHA established eligibility based upon verification of 
eligible immigration status through the verification system described 
in paragraph (l) of this section;
    (ii) Because the IHA was required to provide an opportunity for the 
applicant or family to submit evidence in accordance with paragraphs 
(h) and (i) of this section;
    (iii) Because the IHA was required to wait for completion of INS 
verification of immigration status in accordance with paragraph (l) of 
this section;
    (iv) Because the IHA was required to wait for completion of the INS 
appeal process provided in accordance with paragraph (n) of this 
section; or
    (v) Because the IHA was required to provide an informal hearing in 
accordance with paragraph (o) of this section.
    (2) Protection from liability for State, Tribal and local 
government agencies and officials. State, Tribal, and local government 
agencies and officials shall not be liable for the design or 
implementation of the verification system described in paragraph (l) of 
this section and the IHA informal hearing provided under paragraph (o) 
of this section, so long as the implementation by the State, Tribal, or 
local government agency or official is in accordance with prescribed 
HUD rules and requirements.
    88. Section 905.315 is amended by redesignating paragraphs (a)(i) 
and (a)(ii) as (a)(1) and (a)(2), respectively; by redesignating 
existing paragraphs (a)(2) and (a)(3) as paragraphs (b) and (c) 
respectively; and by adding a new paragraph (d), to read as follows;


Sec. 905.315  Initial determination, verification, and reexamination of 
family income and composition.

* * * * *
    (d) Implementation of verification of citizenship or eligible 
immigration status. The IHA shall follow the procedures required by 
Sec. 905.310 for determining citizenship or eligible immigration status 
before initial [[Page 14855]] occupancy, and, for tenants admitted 
before June 19, 1995, at the first reexamination of family income and 
composition after that date. Thereafter, at the annual reexaminations 
of family income and composition, the IHA shall follow the requirements 
of Sec. 905.310 concerning verification of the immigration status of 
any new family member. The family shall comply with the IHA's policy 
regarding required interim reporting of changes in the family's income 
and composition. If the IHA is informed of a change in the family 
income or other circumstances between regularly scheduled 
reexaminations, the IHA, upon consultation with the family and 
verification of the information, shall promptly make any adjustments 
appropriate in the rent or Homebuyer payment amount or take appropriate 
action concerning the addition of a family member who is a noncitizen 
with ineligible immigration status.

PART 912--DEFINITION OF FAMILY AND OTHER RELATED TERMS; OCCUPANCY 
BY SINGLE PERSONS

    89. The authority citation for part 912 is revised to read as 
follows:

    Authority: 42 U.S.C. 1436a, 1437a, and 3535(d).

    90. Section 912.1 is amended by changing the period at the end of 
paragraph (a)(2) to a semicolon and adding the word ``and'' following 
the semicolon; and by adding a new paragraph (a)(3), to read as 
follows:


Sec. 912.1  Purpose and applicability.

    (a) * * *
    (3) Implements the statutory prohibition against making assistance 
under the United States Housing Act of 1937 (``Act'') (42 U.S.C. 1437 
et seq.) available for the benefit of noncitizens with ineligible 
immigration status.
* * * * *
    91. Section 912.2 is amended by adding definitions in alphabetical 
order for the terms ``Child,'' ``Citizen,'' ``Evidence of citizenship 
or eligible immigration status,'' ``Head of household,'' ``HUD,'' 
``Mixed family,'' ``National,'' ``Noncitizen,'' ``Section 214,'' and 
``Section 214 covered program,'' to read as follows:


Sec. 912.2  Definitions.

    Child. A member of the family, other than the family head or a 
spouse, who is under 18 years of age.
    Citizen. A citizen or national of the United States.
* * * * *
    Evidence of citizenship or eligible immigration status. The 
documents which must be submitted to evidence citizenship or eligible 
immigration status (see Sec. 912.6(b)).
* * * * *
    Head of household. The adult member of the family who is the head 
of the household for purposes of determining income eligibility and 
rent.
    HUD. The Department of Housing and Urban Development.
* * * * *
    Mixed family. A family whose members include those with citizenship 
or eligible immigration status, and those without citizenship or 
eligible immigration status.
    National. A person who owes permanent allegiance to the United 
States, for example, as a result of birth in a United States territory 
or possession.
    Noncitizen. A person who is neither a citizen nor national of the 
United States.
* * * * *
    Section 214. Section 214 of the Housing and Community Development 
Act of 1980, as amended (42 U.S.C. 1436a). Section 214 restricts HUD 
from making financial assistance available for noncitizens unless they 
meet one of the categories of eligible immigration status specified in 
Section 214.
    Section 214 covered programs. Programs to which the restrictions 
imposed by Section 214 apply are programs that make available financial 
assistance pursuant to the United States Housing Act of 1937 (42 U.S.C. 
1437-1440), Section 235 or Section 236 of the National Housing Act (12 
U.S.C. 1715z and 1715z-1) and Section 101 of the Housing and Urban 
Development Act of 1965 (12 U.S.C. 1701s).
* * * * *
    92. Part 912 is amended by redesignating Secs. 912.1 through 912.4 
as subpart A, and by adding the subpart heading to read, ``Subpart A--
General'', and by adding a new subpart B consisting of Secs. 912.5 
through 912.14, to read as follows:

Subpart B--Restrictions on Assistance to Noncitizens

Sec.
912.5  General.
912.5a  Requirements concerning documents.
912.6  Submission of evidence of citizenship or eligible immigration 
status.
912.7  Documents of eligible immigration status.
912.8  Verification of eligible immigration status.
912.9  Delay, denial, or termination of assistance.
912.10  Preservation of mixed families and other families.
912.11  Proration of assistance.
912.12  Prohibition of assistance to noncitizen students.
912.13  Compliance with nondiscrimination requirements.
912.14  Protection from liability for PHAs, State, local, and tribal 
government agencies and officials.

Subpart B--Restrictions on Assistance to Noncitizens


Sec. 912.5  General.

    (a) Restrictions on assistance. Assistance provided under a Section 
214 covered program is restricted to:
    (1) Citizens; or
    (2) Noncitizens who have eligible immigration status in one of the 
following categories:
    (i) A noncitizen lawfully admitted for permanent residence, as 
defined by section 101(a)(20) of the Immigration and Nationality Act 
(INA), as an immigrant, as defined by section 101(a)(15) of the INA (8 
U.S.C. 1101(a)(20) and 1101(a)(15), respectively) (immigrants). (This 
category includes a noncitizen admitted under section 210 or 210A of 
the INA (8 U.S.C. 1160 or 1161), (special agricultural worker), who has 
been granted lawful temporary resident status);
    (ii) A noncitizen who entered the United States before January 1, 
1972, or such later date as enacted by law, and has continuously 
maintained residence in the United States since then, and who is not 
ineligible for citizenship, but who is deemed to be lawfully admitted 
for permanent residence as a result of an exercise of discretion by the 
Attorney General under section 249 of the INA (8 U.S.C. 1259);
    (iii) A noncitizen who is lawfully present in the United States 
pursuant to an admission under section 207 of the INA (8 U.S.C. 1157) 
(refugee status); pursuant to the granting of asylum (which has not 
been terminated) under section 208 of the INA (8 U.S.C. 1158) (asylum 
status); or as a result of being granted conditional entry under 
section 203(a)(7) of the INA (8 U.S.C. 1153(a)(7)) before April 1, 
1980, because of persecution or fear of persecution on account of race, 
religion, or political opinion or because of being uprooted by 
catastrophic national calamity;
    (iv) A noncitizen who is lawfully present in the United States as a 
result of an exercise of discretion by the Attorney General for 
emergent reasons or reasons deemed strictly in the public interest 
under section 212(d)(5) of the INA (8 U.S.C. 1182(d)(5)) (parole 
status);
    (v) A noncitizen who is lawfully present in the United States as a 
result of the Attorney General's withholding deportation under section 
243(h) of the [[Page 14856]] INA (8 U.S.C. 1253(h)) (threat to life or 
freedom); or
    (vi) A noncitizen lawfully admitted for temporary or permanent 
residence under section 245A of the INA (8 U.S.C. 1255a) (amnesty 
granted under INA 245A).
    (b) Family eligibility for assistance. (1) A family shall not be 
eligible for assistance unless every member of the family residing in 
the unit is determined to have eligible status, as described in 
paragraph (a) of this section;
    (2) Despite the ineligibility of one or more family members, a 
mixed family may be eligible for one of the three types of assistance 
provided in Sec. 912.10. A family without any eligible members and 
receiving assistance on June 19, 1995 may be eligible for temporary 
deferral of termination of assistance as provided in Sec. 912.10.


Sec. 912.5a  Requirements concerning documents.

    For any notice or document (decision, declaration, consent form, 
etc.) that Secs. 912.5 through 912.14 require a PHA to provide to an 
individual, or require that the PHA obtain the signature of the 
individual, the PHA, where feasible, must arrange for the notice or 
document to be provided to the individual in a language that is 
understood by the individual if the individual is not proficient in 
English. (See 24 CFR 8.6 of HUD's regulations for requirements 
concerning communications with persons with disabilities.)
Sec. 912.6  Submission of evidence of citizenship or eligible 
immigration status.

    (a) General. Eligibility for assistance or continued assistance 
under a Section 214 covered program is contingent upon a family's 
submission to the PHA of the documents described in paragraph (b) of 
this section for each family member. If one or more family members do 
not have citizenship or eligible immigration status, the family members 
may exercise the election not to contend to have eligible immigration 
status as provided in paragraph (e) of this section, and the provisions 
of Sec. 912.10 shall apply.
    (b) Evidence of citizenship or eligible immigration status. Each 
family member, regardless of age, must submit the following evidence to 
the PHA:
    (1) For citizens, the evidence consists of a signed declaration of 
U.S. citizenship;
    (2) For noncitizens who are 62 years of age or older or who will be 
62 years of age or older and receiving assistance under a Section 214 
covered program on June 19, 1995, the evidence consists of:
    (i) A signed declaration of eligible immigration status; and
    (ii) Proof of age document.
    (3) For all other noncitizens, the evidence consists of:
    (i) A signed declaration of eligible immigration status;
    (ii) The INS documents listed in Sec. 912,7; and
    (iii) A signed verification consent form.
    (c) Declaration. For each family member who contend that he or she 
is a U.S. citizen or a noncitizen with eligible immigration status, the 
family must submit to the PHA a written declaration, signed under 
penalty of perjury, by which the family member declares whether he or 
she is a U.S. citizen or a noncitizen with eligible immigration status:
    (1) For each adult, the declaration must be signed by the adult.
    (2) For each child, the declaration must be signed by an adult 
residing in the assisted dwelling unit who is responsible for the 
child.
    (d) Verification consent form--(1) Who signs. Each noncitizen who 
declares eligible immigration status, must sign a verification consent 
form as follows:
    (i) For each adult, the form must be signed by the adult.
    (ii) For each child, the form must be signed by an adult member of 
the family residing in the assisted dwelling unit who is responsible 
for the child.
    (2) Notice of release of evidence by PHA. The verification consent 
form shall provide that evidence of eligible immigration status may be 
released by the PHA, without responsibility for the further use or 
transmission of the evidence by the entity receiving it, to:
    (i) HUD is required by HUD; and
    (ii) The INS for purposes of verification of the immigration status 
of the individual.
    (3) Notice of release of evidence by HUD. The verification consent 
form also shall notify the individual of the possible release of 
evidence of eligible immigration status by HUD. Evidence of eligible 
immigration status shall only be released to the INS for purposes of 
establishing eligibility for financial assistance and not for any other 
purpose. HUD is not responsible for the further use or transmission of 
the evidence or other information by the INS.
    (e) Individuals who do not contend to have eligible immigration 
status. If one or more members of a family elect not to contend that 
they have eligible immigration status and the other members of the 
family establish their citizenship or eligible immigration status, the 
family may be considered for assistance under Secs. 912.10 or 912.11 
despite the fact that no declaration or documentation of eligible 
status is submitted by one or more members of the family. The family, 
however, must identify to PHA the family member (or members) who will 
elect not to contend that he or she has eligible immigration status.
    (f) Notification of requirements of Section 214--(1) Timing of 
notice. Notification of the requirement to submit evidence of 
citizenship or eligible immigration status, as required by this 
section, or to elect not to contend that one has eligible immigration 
status as provided by paragraph (e) of this section, shall be given by 
the PHA as follows:
    (i) Applicant's notice. The notification described in paragraph 
(f)(1) of this section shall be given to each applicant at the time of 
application for financial assistance. Families whose applications are 
pending on June 19, 1995 shall be notified of the requirements to 
submit evidence of eligible status as soon as possible after June 19, 
1995.
    (ii) Notice to families already receiving assistance. For a family 
in occupancy on June 19, 1995, the notification described in paragraph 
(f)(1) of this section shall be given to each at the time of, and 
together with, the PHA's notice of the first regular reexamination 
after that date, but not later than one year following June 19, 1995.
    (2) Form and content of notice. The notice shall:
    (i) State that financial assistance is contingent upon the 
submission and verification, as appropriate, of the evidence of 
citizenship or eligible immigration status, as required by this 
section;
    (ii) Describe the type of evidence that must be submitted and state 
the time period in which that evidence must be submitted (see paragraph 
(g) of this section concerning when evidence must be submitted); and
    (iii) State that assistance will be prorated, denied or terminated, 
as appropriate, upon a final determination of ineligibility after all 
appeals have been exhausted (see Sec. 912.9 concerning INS appeal, and 
PHA informal hearing process) or, if appeals are not pursued, at a time 
to be specified in accordance with HUD requirements. Families already 
receiving assistance also shall be informed of how to obtain assistance 
under the preservation of families provisions of Sec. 912.10.
    (g) When evidence of eligible status is required to be submitted. 
The PHA shall require evidence of eligible status to be submitted at 
the times specified in paragraph (g) of this section, subject to 
[[Page 14857]] any extension granted in accordance with paragraph (h) 
of this section.
    (1) Applicants. For applicants, the PHA must ensure that evidence 
of eligible status is submitted not later than the date the PHA 
anticipates or has knowledge that verification of other aspects of 
eligibility for assistance will occur (see Sec. 912.8(a)).
    (2) Families already receiving assistance. For a family already 
receiving the benefit of assistance in a covered program on June 19, 
1995, the required evidence shall be submitted at the first regular 
reexamination after June 19, 1995, in accordance with program 
requirements.
    (3) New occupants of assisted units. For any new family members, 
the required evidence shall be submitted at the first interim or 
regular reexamination following the person's occupancy.
    (4) Changing participation in a HUD program. Whenever a family 
applies for admission to a Section 214 covered program, evidence of 
eligible status is required to be submitted in accordance with the 
requirements of this part unless the family already has submitted the 
evidence to the PHA for a covered program.
    (5) One-time evidence requirement for continuous occupancy. For 
each family member, the family is required to submit evidence of 
eligible status only one time during continuously assisted occupancy 
under any covered program.
    (h) Extensions of time to submit evidence of eligible status.--(1) 
When extension must be granted. The PHA shall extend the time provided 
in paragraph (g) of this section, to submit evidence of eligible 
immigration status if the family member:
    (i) Submits the declaration required under Sec. 912.6(b) certifying 
that any person for whom required evidence has not been submitted is a 
noncitizen with eligible immigration status; and
    (ii) Certifies that the evidence needed to support a claim of 
eligible immigration status is temporarily unavailable, additional time 
is needed to obtain and submit the evidence, and prompt and diligent 
efforts will be undertaken to obtain the evidence.
    (2) Prohibition on indefinite extension period. Any extension of 
time, if granted, shall be for a specific period of time. The 
additional time provided should be sufficient to allow the family the 
time to obtain the evidence needed. The PHA's determination of the 
length of the extension needed, shall be based on the circumstances of 
the individual case.
    (3) Grant or denial of extension to be in writing. The PHA's 
decision to grant or deny an extension as provided in paragraph (h)(1) 
of this section shall be issued to the family by written notice. If the 
extension is granted, the notice shall specify the extension period 
granted. If the extension is denied, the notice shall explain the 
reasons for denial of the extension.
    (i) Failure to submit evidence or establish eligible immigration 
status. If the family fails to submit required evidence of eligible 
immigration status within the time period specified in the notice, or 
any extension granted in accordance with paragraph (h) of this section, 
or if the evidence is timely submitted but fails to establish eligible 
immigration status, the PHA shall proceed to deny, prorate or terminate 
assistance, or provide continued assistance or temporary deferral of 
termination of assistance, as appropriate, in accordance with the 
provisions of Secs. 912.9 and 912.10 respectively.


Sec. 912.7  Documents of eligible immigration status.

    (a) General. A PHA shall request and review original documents of 
eligible immigration status. The PHA shall retain photocopies of the 
documents for its own records and return the original documents to the 
family.
    (b) Acceptable evidence of eligible immigration status. The 
original of one of the following documents is acceptable evidence of 
eligible immigration status, subject to verification in accordance with 
Sec. 912.8:
    (1) Form I-551, Alien Registration Receipt Card (for permanent 
resident aliens);
    (2) Form I-94, Arrival-Departure Record, with one of the following 
annotations:
    (i) ``Admitted as Refugee Pursuant to section 207'';
    (ii) ``Section 208'' or ``Asylum'';
    (iii) ``Section 243(h)'' or ``Deportation stayed by Attorney 
General'';
    (iv) ``Paroled Pursuant to Sec. 212(d)(5) of the INA'';
    (3) If Form I-94, Arrival-Departure Record, is not annotated, then 
accompanied by one of the following documents:
    (i) A final court decision granting asylum (but only if no appeal 
is taken);
    (ii) A letter from an INS asylum officer granting asylum (if 
application is filed on or after October 1, 1990) or from an INS 
district director granting asylum (if application is filed before 
October 1, 1990);
    (iii) A court decision granting withholding of deportation; or
    (iv) A letter from an INS asylum officer granting withholding of 
deportation (if application is filed on or after October 1, 1990).
    (4) Form I-688, Temporary Resident Card, which must be annotated 
``Section 245A'' or ``Section 210'';
    (5) Form I-688B, Employment Authorization Card, which must be 
annotated ``Provision of Law 274a.12(11)'' or ``Provision of Law 
274a.12'';
    (6) A receipt issued by the INS indicating that an application for 
issuance of a replacement document in one of the above-listed 
categories has been made and the applicant's entitlement to the 
document has been verified; or
    (c) Other acceptable evidence. If other documents are determined by 
the INS to constitute acceptable evidence of eligible immigration 
status, they will be announced by notice published in the Federal 
Register.


Sec. 912.8  Verification of eligible immigration status.

    (a) When verification is to occur. Verification of eligible 
immigration status shall be conducted by the PHA simultaneously with 
verification of other aspects of eligibility for assistance under a 
Section 214 covered program. (See Sec. 912.6(g).) The PHA shall verify 
eligible immigration status in accordance with the INS procedures 
described in this section.
    (b) Primary verification.--(1) Automated verification system. 
Primary verification of the immigration status of the person is 
conducted by the PHA through the INS automated system (INS Systematic 
for Alien Verification for Entitlements (SAVE)). The INS SAVE system 
provides access to names, file numbers and admission numbers of 
noncitizens.
    (2) Failure of primary verification to confirm eligible immigration 
status. If the INS SAVE system does not verify eligible immigration 
status, secondary verification must be performed.
    (c) Secondary verification.--(1) Manual search of INS records. 
Secondary verification is a manual search by the INS of its records to 
determine an individual's immigration status. The PHA must request 
secondary verification, within 10 days of receiving the results of the 
primary verification, if the primary verification system does not 
confirm eligible immigration status, or if the primary verification 
system verifies immigration status that is ineligible for assistance 
under a covered Section 214 covered program.
    (2) Secondary verification initiated by PHA. Secondary verification 
is initiated by the PHA forwarding photocopies of the original INS 
documents listed in [[Page 14858]] Sec. 912.7 (front and back), 
attached to the INS document verification request form G-845S (Document 
Verification Request), or such other form specified by the INS, to a 
designated INS office for review. (Form G-845S is available from the 
local INS Office.)
    (3) Failure of secondary verification to confirm eligible 
immigration status. If the secondary verification does not confirm 
eligible immigration status, the IHA shall issue to the family the 
notice described in Sec. 912.9(d), which includes notification of 
appeal to the INS of the INS finding on immigration status (see 
Sec. 912.9(d)(4)).
    (d) Exemption from liability for INS verification. The PHA shall 
not be liable for any action, delay, or failure of the INS in 
conducting the automated or manual verification.


Sec. 912.9  Delay, denial, or termination of assistance.

    (a) General. Assistance to a family may not be delayed, denied, or 
terminated because of the immigration status of a family member except 
as provided in this section.
    (b) Restrictions on delay, denial, or termination of assistance --
(1) General. Assistance to an applicant shall not be delayed or denied, 
and assistance to a tenant shall not be delayed, denied, or terminated, 
on the basis of ineligible immigration status of a family member if:
    (i) The primary and secondary verification of any immigration 
documents that were timely submitted has not been completed;
    (ii) The family member of whom required evidence has not been 
submitted has moved from the tenant's dwelling unit;
    (iii) The family member who is determined not to be in an eligible 
immigration status following INS verification has moved from the 
tenant's dwelling unit;
    (iv) The INS appeals process under Sec. 912.9(e) has not been 
concluded;
    (v) For a tenant, the PHA hearing process under Sec. 912.9(f) has 
not been concluded;
    (vi) Assistance is prorated in accordance with Sec. 912.11;
    (vii) Assistance for a mixed family is continued in accordance with 
Sec. 912.10; or
    (viii) Deferral of termination of assistance is granted in 
accordance with Sec. 912.10.
    (2) When delay of assistance to an applicant is permissible. 
Assistance to an applicant may be delayed after the conclusion of the 
INS appeal process, but not denied until the conclusion of the PHA 
informal hearing process, if an informal hearing is requested by the 
family.
    (c) Events causing denial or termination of assistance. Assistance 
to an applicant shall be denied, and a tenant's assistance shall be 
terminated, in accordance with the procedures of this section, upon the 
occurrence of any of the following events:
    (1) Evidence of citizenship (i.e., the declaration) and eligible 
immigration status is not submitted by the date specified in 
Sec. 912.6(g) or by the expiration of any extension granted in 
accordance with Sec. 912.6(h); or
    (2) Evidence of citizenship and eligible immigration status is 
timely submitted, but INS primary and second verification does not 
verify eligible immigration status of a family member; and
    (i) The family does not pursue INS appeal or PHA informal hearing 
rights as provided in this section; or
    (ii) INS appeal and informal hearing rights are pursued, but the 
final appeal or hearing decisions are decided against the family 
member.
    (d) Notice of denial or termination of assistance. The notice of 
denial or termination of assistance shall advise the family:
    (1) That financial assistance will be denied or terminated, and 
provide a brief explanation of the reasons for the proposed denial or 
termination of assistance;
    (2) That they may be eligible for proration of assistance as 
provided under Sec. 912.11;
    (3) In the case of a tenant, the criteria and procedures for 
obtaining relief under the preservation of families provision in 
Sec. 912.10;
    (4) The family has a right to request an appeal to the INS of the 
results of the secondary verification of immigration status and to 
submit additional documentation or a written explanation in support of 
the appeal in accordance with the procedures of paragraph (e) of this 
section;
    (5) The family has a right to request an informal hearing with the 
PHA either upon completion of the INS appeal or in lieu of the INS 
appeal as provided in paragraph (f) of this section;
    (6) For applicants, the notice shall advise that assistance may not 
be delayed until the conclusion of the INS appeal process, but 
assistance may be delayed during the pendency of the PHA informal 
hearing process.
    (e) Appeal to the INS--(1) Submission of request for appeal. Upon 
receipt of notification by the PHA that INS secondary verification 
failed to confirm eligible immigration status, the PHA shall notify the 
family of the results of the INS verification, and the family shall 
have 30 days from the date of the project owner's notification to 
request an appeal of the INS results. The request for appeal shall be 
made by the family communicating that request in writing directly to 
the INS. The family must provide the PHA with a copy of the written 
request for appeal and proof of mailing. For good cause shown, the PHA 
shall grant the family an extension of time within which to request an 
appeal.
    (2) Documentation to be submitted as part of appeal to INS. The 
family shall forward to the designated INS office any additional 
documentation or written explanation in support of the appeal. This 
material must include a copy of the INS document verification request 
form G-845S (used to process the secondary verification request) or 
such other form specified by the INS, and a cover letter indicating 
that the family is requesting an appeal of the INS immigration status 
verification results.
    (3) Decision by INS.--(i) When decision will be issued. The INS 
will issue to the family, with a copy to the PHA, a decision within 30 
days of its receipt of documentation concerning the family's appeal of 
the verification of immigration status. If, for any reason, the INS is 
unable to issue a decision within the 30 day time period, the INS will 
inform the family and the PHA of the reasons for the delay.
    (ii) Notification of INS decision and of informal hearing 
procedures. When the PHA receives a copy of the INS decision, the PHA 
shall notify the family of its right to request an informal hearing on 
the PHA's ineligibility determination in accordance with the procedures 
of paragraph (f) of this section.
    (4) No delay, denial or termination of assistance until completion 
of INS appeal process; direct appeal to INS. Pending the completion of 
the INS appeal under this section, assistance may not be delayed, 
denied or terminated on the basis of immigration status.
    (f) Informal hearing--(1) When request for hearing is to be made. 
After notification of the INS decision on appeal, or in lieu of request 
of appeal to the INS, the family may request that the PHA provide a 
hearing. This request must be made either within 14 days of the date 
the PHA mails or delivers the notice under paragraph (d) of this 
section, or within 14 days of the mailing of the INS appeal decision 
issued in accordance with paragraph (e) of this section (established by 
the date of postmark). [[Page 14859]] 
    (2) Extension of time to request hearing. The PHA shall extend the 
period of time for requesting a hearing (for a specified period) upon 
good cause shown.
    (3) Informal hearing procedures. (i) For tenants, the procedures 
for the hearing before the PHA are set forth in 24 CFR part 966.
    (ii) For applicants, the procedures for the informal hearing before 
the PHA are as follows:
    (A) Hearing before an impartial individual. The applicant shall be 
provided a hearing before any person(s) designated by the PHA 
(including an officer or employee of the PHA), other than a person who 
made or approved the decision under review, and other than a person who 
is a subordinate of the person who made or approved the decision;
    (B) Examination of evidence. The PHA shall be provided the 
opportunity to examine and copy at the applicant's expense, at a 
reasonable time in advance of the hearing, any documents in the 
possession of the PHA pertaining to the applicant's eligibility status, 
or in the possession of the INS (as permitted by INS requirements), 
including any records and regulations that may be relevant to the 
hearing;
    (C) Presentation of evidence and arguments in support of eligible 
status. The applicant shall be provided the opportunity to present 
evidence and arguments in support of eligible status. Evidence may be 
considered without regard to admissibility under the rules of evidence 
applicable to judicial proceedings;
    (D) Controverting evidence of the project owner. The applicant 
shall be provided the opportunity to controvert evidence relied upon by 
the PHA and to confront and cross-examine all witnesses on whose 
testimony or information the PHA relies;
    (E) Representation. The applicant shall be entitled to be 
represented by an attorney, or other designee, at the applicant's 
expense, and to have such person make statements on the applicant's 
behalf;
    (F) Interpretive services. The applicant shall be entitled to 
arrange for an interpreter to attend the hearing, at the expense of the 
applicant or PHA, as may be agreed upon by both parties;
    (G) Hearing to be recorded. The applicant shall be entitled to have 
the hearing recorded by audiotape (a transcript of the hearing may, but 
is not required to be provided by the PHA); and
    (H) Hearing decision. The PHA shall provide the applicant with a 
written final decision, based solely on the facts presented at the 
hearing within 14 days of the date of the informal hearing.
    (g) Judicial relief. A decision against a family member, issued in 
accordance with paragraphs (e) or (f) of this section, does not 
preclude the family from exercising the right, that may otherwise be 
available, to seek redress directly through judicial procedures.
    (h) Retention of documents. The PHA shall retain for a minimum of 5 
years the following documents that may have been submitted to the PHA 
by the family, or provided to the PHA as part of the INS appeal or the 
PHA informal hearing process:
    (1) The application for financial assistance;
    (2) The form completed by the family for income re-examination;
    (3) Photocopies of any original documents (front and back), 
including original INS documents;
    (4) The signed verification consent form;
    (5) The INS verification results;
    (6) The request for an INS appeal;
    (7) The final INS determination;
    (8) The request for a PHA informal hearing; and
    (9) The final PHA hearing decision.


Sec. 912.10  Preservation of mixed families and other families.

    (a) Assistance available for mixed families. (1) Assistance 
available for tenant mixed families. For a mixed family assisted under 
a Section 214 covered program on June 19, 1995, and following 
completion of the appeals and informal hearing procedures provided in 
Sec. 912.9 if utilized by the family, one of the following three types 
of assistance may be available to the family:
    (i) Continued assistance (see paragraph (b) of this section);
    (ii) Temporary deferral of termination of assistance (see paragraph 
(c) of this section); or
    (iii) Prorated assistance (see Sec. 912.11; a mixed family must be 
provided prorated assistance if the family so requests); or
    (2) Assistance available for applicant mixed families. Prorated 
assistance is also available for mixed families applying for assistance 
as provided in Sec. 912.11.
    (3) Assistance available to other families in occupancy. For 
families receiving assistance under a Section 214 covered program on 
the June 19, 1995 and who have no members with eligible immigration 
status, the PHA may grant the family temporary deferral of termination 
of assistance.
    (b) Continued assistance. A mixed family may receive continued 
housing assistance if all of the following conditions are met:
    (1) The family was receiving assistance under a Section 214 covered 
program on June 19, 1995;
    (2) The family's head of household or spouse has eligible 
immigration status as described in Sec. 912.5; and
    (3) The family does not include any person (who does not have 
eligible immigration status) other than the head of household, any 
spouse of the head of household, any parents of the head of household, 
any parents of the spouse, or any children of the head of household or 
spouse.
    (c) Temporary deferral of termination of assistance.--(1) 
Eligibility for this type of assistance. If a mixed family qualifies 
for prorated assistance (and does not qualify for continued 
assistance), but decides not to accept prorated assistance, or if a 
family has no members with eligible immigration status, the family may 
be eligible for temporary deferral of termination of assistance if 
necessary to permit the family additional time for the orderly 
transition of those family members with ineligible status, and any 
other family members involved, to other affordable housing. Other 
affordable housing is used in the context of transition of an 
ineligible family from a rent level that reflects HUD assistance to a 
rent level that is unassisted; the term refers to housing that is not 
substandard, that is of appropriate size for the family and that can be 
rented for an amount not exceeding the amount that the family pays for 
rent, including utilities, plus 25 percent.
    (2) Time limit on deferral period. If temporary deferral of 
termination of assistance is granted, the deferral period shall be for 
an initial period not to exceed six months. The initial period may be 
renewed for additional periods of six months, but the aggregate 
deferral period shall not exceed a period of three years.
    (3) Notification requirements for beginning of each deferral 
period. At the beginning of each deferral period, the PHA must inform 
the family of its ineligibility for financial assistance and offer the 
family information concerning, and referrals to assist in finding, 
other affordable housing.
    (4) Determination of availability of affordable housing at end of 
each deferral period. Before the end of each deferral period, the PHA 
must:
    (i) Make a determination of the availability of affordable housing 
of appropriate size based on evidence of conditions which when taken 
together will demonstrate an inadequate supply for affordable housing 
for the area in which the project is located, the consolidated plan (if 
applicable, as [[Page 14860]] described in 24 CFR part 91), the PHA's 
own knowledge of the availability of affordable housing, and on 
evidence of the tenant family's efforts to locate such housing; and
    (ii) Notify the tenant family in writing, at least 60 days in 
advance of the expiration of the deferral period, that termination will 
be deferred again (provided that the granting of another deferral will 
not result in aggregate deferral periods that exceed three years), and 
a determination was made that other affordable housing is not 
available; or
    (iii) Notify the tenant family in writing, at least 60 days in 
advance of the expiration of the deferral period, that termination of 
financial assistance will not be deferred because either granting 
another deferral will result in aggregate deferral periods that exceed 
three years, or a determination has been made that other affordable 
housing is available.
    (d) Option to select proration of assistance at end of deferral 
period. A family who is eligible for, and receives temporary deferral 
of termination of assistance, may request, and the PHA shall provide, 
proration of assistance at the end of the deferral period if the family 
has made a good faith effort during the deferral period to locate other 
affordable housing.
    (e) Notification of decision on family preservation assistance. A 
PHA shall notify the family of it's decision concerning the family's 
qualification for assistance under this section. If the family is 
ineligible for assistance under this section, the notification shall 
state the reasons, which must be based on relevant factors. For tenant 
families, the notice also shall inform the family of any applicable 
appeal rights.


Sec. 912.11  Proration of assistance.

    (a) Applicability. This section applies to a mixed family other 
than a family receiving continued assistance under Sec. 912.10(b), or 
other than a family who is eligible for and requests and receives 
temporary deferral of termination of assistance under Sec. 912.10(c). 
An eligible mixed family who requests prorated assistance, must be 
provided prorated assistance.
    (b) Method of prorating assistance. The PHA shall prorate the 
family's assistance by:
    (1) Step 1. Determining total tenant payment in accordance with 24 
CFR 913.107(a) (annual income includes income of all family members, 
including any family member who has not established eligible 
immigration status).
    (2) Step 2. Subtracting the total tenant payment from a HUD-
supplied ``public housing maximum rent'' applicable to the unit or the 
housing authority. (Public housing maximum rent shall be determined by 
HUD using the 95th percentile rent for the housing authority.) The 
result is the maximum subsidy for which the family could qualify if all 
members were eligible (``family maximum subsidy'').
    (3) Step 3. Dividing the family maximum subsidy by the number of 
persons in the family (all persons) to determine the maximum subsidy 
per each family member who has citizenship or eligible immigration 
status (``eligible family member''). The subsidy per eligible family 
member is the ``member maximum subsidy.''
    (4) Step 4. Multiplying the member maximum subsidy by the number of 
``eligible'' family members.
    (5) Step 5. The product of steps 1-4, as set forth in paragraph 
(b)(2) of this section is the amount of subsidy for which the family is 
eligible (``eligible subsidy''). The family's rent is the ``public 
housing maximum rent'' minus the amount of the eligible subsidy.


Sec. 912.12  Prohibition of assistance to noncitizen students.

    (a) General. The provisions of Secs. 912.10 and 912.11, permitting 
continued assistance, prorated assistance or temporary deferral of 
termination of assistance for certain families, do not apply to any 
person who is determined to be a noncitizen student, as defined in 
paragraph (b) of this section, or the family of the noncitizen student, 
as described in paragraph (c) of this section.
    (b) Noncitizen student. For purposes of this part, a noncitizen 
student is defined as a noncitizen who:
    (1) Has a residence in a foreign country that the person has no 
intention of abandoning;
    (2) Is a bona fide student qualified to pursue a full course of 
study; and
    (3) Is admitted to the United States temporarily and solely for 
purposes of pursuing such a course of study at an established 
institution of learning or other recognized place of study in the 
United States, particularly designated by such person and approved by 
the Attorney General after consultation with the Department of 
Education of the United States, which institution or place of study 
shall have agreed to report to the Attorney General the termination of 
attendance of each nonimmigrant student (and if any such institution of 
learning or place of study fails to make such reports promptly the 
approval shall be withdrawn).
    (c) Family of noncitizen student. The prohibition on providing 
assistance to a noncitizen student as described in paragraph (a) of 
this section also extends to the noncitizen spouse of the noncitizen 
student and minor children of any noncitizen student if the spouse or 
children are accompanying the student or following to join such 
student. The prohibition on providing assistance to a noncitizen 
student does not extend to the citizen spouse of the noncitizen student 
and the children of the citizen spouse and noncitizen student.


Sec. 912.13  Compliance with nondiscrimination requirements.

    The PHA shall administer the restrictions on use of assisted 
housing by noncitizens with ineligible immigration status imposed by 
this part in conformity with the nondiscrimination requirements of, 
including, but not limited to, title VI of the Civil Rights Act of 1964 
(42 U.S.C. 2000d-2000d-5) and the implementing regulations of 24 CFR 
part 1, section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) 
and the implementing regulations of 24 CFR part 8, the Fair Housing Act 
(42 U.S.C. 3601-3619) and the implementing regulations of 24 CFR part 
100, and other civil rights statutes cited in the applicable program 
regulations. These statutes prohibit, among other things, 
discriminatory practices on the basis of race, color, national origin, 
sex, religion, age, disability and familial status in the provision of 
housing.


Sec. 912.14  Protection from liability for PHAs, State, local, and 
tribal government agencies and officials.

    (a) Protection from liability for PHAs. HUD will not take any 
compliance, disallowance, penalty, or other regulatory action against a 
PHA with respect to any error in its determination of eligibility for 
financial assistance based on citizenship or immigration status:
    (1) If the PHA established eligibility based upon verification of 
eligible immigration status through the verification system described 
in Sec. 912.8;
    (2) Because the PHA was required to provide an opportunity for the 
applicant or family to submit evidence in accordance with Sec. 912.6;
    (3) Because the PHA was required to wait for completion of INS 
verification of immigration status in accordance with Sec. 912.8;
    (4) Because the PHA was required to wait for completion of the INS 
appeal process provided in accordance with Sec. 912.9(e); or
    (5) Because the PHA was required to provide an informal hearing in 
[[Page 14861]] accordance with Sec. 912.9(f) or 24 CFR part 966.
    (b) Protection from liability for State, local and tribal 
government agencies and officials. State, local and tribal government 
agencies and officials shall not be liable for the design or 
implementation of the verification system described in Sec. 912.8, and 
the informal hearings provided under Sec. 912.9(f) and 24 CFR part 966, 
as long as the implementation by the State, local or tribal government 
agency or official is in accordance with prescribed HUD rules and 
requirements.

PART 960--ADMISSION TO, AND OCCUPANCY OF, PUBLIC HOUSING

    93. The authority citation for part 960 is revised to read as 
follows:

    Authority: 42 U.S.C. 1437a, 1437c, 1437d, 1437n, and 3535(d).

    94. In Sec. 960.204, paragraphs (a) and (d)(4) are revised to read 
as follows:


Sec. 960.204  PHA tenant selection policies.

    (a) In addition to policies and regulations including preferences 
and priorities established by the PHA for eligibility and admission to 
its public housing projects pursuant to the Act, the ACC, and parts 912 
and 913 of this chapter, each PHA shall adopt and implement policies 
and procedures embodying standards and criteria for tenant selection 
which take into consideration the needs of individual families for 
public housing and the statutory purpose in developing and operating 
socially and financially sound public housing projects that provide a 
decent home and a suitable living environment and foster economic and 
social diversity in the tenant body as a whole.
* * * * *
    (d) * * *
    (4) Provide for verification and documentation of information 
relevant to acceptance or rejection of an applicant, including 
documentation and verification of citizenship and eligible immigration 
status under 24 CFR part 912.
* * * * *
    95. In Sec. 960.206, paragraph (a) is revised to read as follows:


Sec. 960.206  Verification procedures.

    (a) General. Adequate procedures must be developed to obtain and 
verify information with respect to each applicant. (See parts 912 and 
913 of this chapter, and 24 CFR parts 750 and 760.) Information 
relative to the acceptance or rejection of an applicant or the grant or 
denial of a Federal preference under Sec. 960.211 must be documented 
and placed in the applicant's file.
* * * * *
    96. Section 960.209 is amended by adding two sentences at the end 
of paragraph (a), by adding one sentence at the end of paragraph (b), 
and by adding a new paragraph (c), to read as follows:


Sec. 960.209  Reexamination of family income and composition.

    (a) * * * At the first regular reexamination after June 19, 1995, 
the PHA shall follow the requirements of 24 CFR part 912 concerning 
obtaining and processing information on the citizenship or eligible 
immigration status of all family members. Thereafter, at each regular 
reexamination, the PHA shall follow the requirements of 24 CFR part 912 
concerning verification of the immigration status of any new family 
member.
    (b) * * * At any interim reexamination after June 19, 1995 when 
there is a new family member, the PHA shall follow the requirements of 
24 CFR part 912 concerning obtaining and processing information on the 
citizenship or eligible immigration status of the new family member.
    (c) Termination. For provisions requiring termination of 
participation for failure to establish citizenship or eligible 
immigration status, see 24 CFR 912.9, and also 24 CFR 912.10 for 
provisions concerning assistance to certain mixed families (families 
whose members include those with citizenship and eligible immigration 
status and those without eligible immigration status) in lieu of 
termination of assistance.

    Dated: March 8, 1995.
Henry G. Cisneros,
Secretary.
[FR Doc. 95-6358 Filed 3-14-95; 8:45 am]
BILLING CODE 4210-32-P