[Federal Register Volume 61, Number 47 (Friday, March 8, 1996)]
[Rules and Regulations]
[Pages 9536-9544]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-5298]




[[Page 9535]]

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Part II





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Secretary



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Regulatory Reinvention; Consolidated Pet Ownership Requirements for the 
Elderly and Persons With Disabilities; Final Rule

  Federal Register / Vol. 61, No. 47 / Friday, March 8, 1996 / Rules 
and Regulations   

[[Page 9536]]


DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Secretary

24 CFR Parts 5, 243, 842, and 942

[Docket No. FR-3942-F-01]
RIN 2501-AC07


Regulatory Reinvention; Consolidated Pet Ownership Requirements 
for the Elderly and Persons With Disabilities

AGENCY: Office of the Secretary, HUD.

ACTION: Final rule.

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SUMMARY: This final rule consolidates HUD's pet ownership rules for its 
housing and public housing programs. Currently, these similar 
requirements are repeated in 24 CFR parts 243, 842, and 942. These 
parts implement section 227 of the Housing and Urban-Rural Recovery Act 
of 1983. Section 227 provides that no owner or manager of federally 
assisted housing for the elderly or persons with disabilities may 
prevent tenants of such housing from owning or keeping common household 
pets in their units. HUD's consolidation of its pet ownership rules 
will eliminate redundancy from title 24 and assist in HUD's effort to 
comply with President Clinton's regulatory reinvention initiative.

EFFECTIVE DATE: April 8, 1996.

FOR FURTHER INFORMATION CONTACT: For Housing: Barbara D. Hunter, Room 
6182, telephone number (202) 708-3944; For Public and Indian Housing: 
Linda Campbell, Room 4206, telephone number (202) 708-0744; Department 
of Housing and Urban Development, 451 Seventh Street, SW., Washington, 
DC 20410. Hearing or speech-impaired individuals may call 1-800-877-
8339 (Federal Information Relay Service TDD). (Except for the ``800'' 
number, these telephone numbers are not toll-free.)

SUPPLEMENTARY INFORMATION:

I. Background

A. HUD's Implementation of Section 227 of the Housing and Urban-Rural 
Recovery Act of 1983

    Section 227 of the Housing and Urban-Rural Recovery Act of 1983 (12 
U.S.C. 1701r-1) provides that no owner or manager of federally assisted 
rental housing for the elderly or persons with disabilities 1 may, 
as a condition of tenancy or otherwise, prohibit or prevent tenants of 
such housing from owning or keeping common household pets in their 
units, or restrict or discriminate against persons in connection with 
admission to, or continued occupancy of, such housing because they own 
common household pets.

    \1\ Section 227 uses the term ``federally assisted rental 
housing for the elderly or handicapped.'' HUD prefers the use of the 
term ``persons with disabilities'' to the term ``handicapped.'' 
Accordingly, this final rule uses the term ``persons with 
disabilities.''
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    The statute directs HUD to issue regulations necessary to ensure 
compliance with these provisions and to ensure attaining the goal of 
providing decent, safe, and sanitary housing for the elderly or persons 
with disabilities. The statute also requires that these regulations 
establish guidelines under which owners and managers may prescribe 
reasonable rules for the keeping of pets by tenants and must consult 
with tenants in prescribing the rules.
    On December 1, 1986 (51 FR 43270), HUD published a final rule 
creating three new parts in title 24 to implement section 227. Part 243 
describes the pet ownership requirements for programs administered by 
the Assistant Secretary for Housing-Federal Housing Commissioner. Part 
942 implements section 227 as it pertains to the public housing 
programs administered by the Assistant Secretary for Public and Indian 
Housing. Part 842, which concerns the pet ownership rules for programs 
assisted under chapter VIII of title 24, merely cross-references the 
requirements in 24 CFR part 243.
    Parts 243 and 942 are identical in many significant respects, but 
there are differences. Part 942 provides Public Housing Agencies (PHAs) 
with substantial discretion in the issuance of pet ownership rules. In 
contrast, part 243 establishes certain limitations on the flexibility 
of project owners in the promulgation of pet rules. As explained in the 
preamble to the December 1, 1986 final rule, HUD's decision to 
establish a flexible standard for PHAs was based on the broad 
discretion contemplated for PHAs under the United States Housing Act of 
1937 (42 U.S.C. 1437) (1937 Act) and the policy towards minimization of 
Federal control over public bodies created by local government:

    (O)ne of the major policies of the United States Housing Act of 
1937 * * * is ``* * * to vest in local public housing agencies the 
maximum amount of responsibility in the administration of their 
housing programs * * *'' (section 2 of the 1937 Act, 42 U.S.C. 
1437). Moreover PHAs are public bodies created by State, local, and 
tribal governments and traditionally have jurisdiction over a broad 
area. Giving these entities greater responsibility for the 
management of projects serves the goal of minimizing Federal control 
over matters of local concern that are within the competency of 
local governments. (51 FR 43270, 43271.)

    The preamble to the December 1, 1986 rule also emphasized that 
HUD's decision to limit project owner discretion did not indicate a 
lack of confidence in the administrative abilities of project owners. 
Rather, the decision stemmed from the fact that absent Federal 
guidance, project owners were unlikely to receive any governmental 
guidance in the implementation of section 227:

    (I)n some instances, project owners' expertise will equal or 
surpass that of their PHA counterparts. (HUD) also note(s), however, 
that project owners, unlike PHAs, are unlikely to receive guidance 
in the management of their projects from nonmortgagee agencies of 
State or local government. (51 FR 43270, 43271.)

B. President Clinton's Regulatory Reinvention Initiative

    On March 4, 1995, President Clinton announced his Regulatory 
Reinvention Initiative, which calls for immediate, comprehensive 
regulatory reform. The President directed all Federal departments and 
agencies to undertake an exhaustive review of their regulations. This 
initiative, which is part of the National Performance Review, calls for 
the elimination of redundant or obsolete regulatory requirements and 
the modification of others to increase flexibility and reduce burden.
    On February 9, 1996 (61 FR 5198), HUD published a final rule 
creating a new 24 CFR part 5. HUD established part 5 to set forth those 
requirements which are applicable to one or more program regulations. 
Consolidation of these requirements in part 5 will eliminate redundancy 
in title 24 and assist in HUD's overall efforts to streamline the 
content of its regulations. Accordingly, this final rule removes parts 
243, 842, and 943 from title 24 and consolidates HUD's pet ownership 
rules in a new subpart C to 24 CFR part 5.
    Although HUD is consolidating its pet ownership requirements, it is 
not presently modifying its dual approach towards implementation of 
section 227. This final rule eliminates redundancy in the existing pet 
ownership requirements wherever possible, but it retains those 
provisions which are exclusively applicable to HUD's housing or public 
housing programs.
    The provisions of part 5, subpart C, are organized under three 
headings. The provisions included under the first heading describe 
those pet ownership requirements which are applicable to both housing 
and public housing programs. The second group of 

[[Page 9537]]
regulatory provisions set forth the requirements which are solely 
applicable to HUD's housing programs. The third group of requirements 
describes the pet rules for public housing programs.
    Nothing contained in this regulation limits or impairs the right of 
a person with a disability under either the Fair Housing Act, section 
504 of the Rehabilitation Act of 1973, or any other appropriate civil 
rights authority, to a reasonable accommodation of a pet policy, where 
it is established that an animal is necessary to afford a person with a 
disability an equal opportunity to use and enjoy a dwelling.

C. Appendices to Final Rule.

    Section 5.306 of this final rule sets forth separate definitions of 
the term ``Project for the elderly or persons with disabilities'' for 
HUD's Housing and Public Housing programs. The definition applicable to 
the Housing programs states that projects must be assisted under 
certain HUD programs in order to qualify as projects for the elderly or 
persons with disabilities. Further, paragraph (d)(2) of Sec. 5.318 
limits the pet deposit charges that may be imposed by project owners 
assisted under certain HUD programs. In order to eliminate the 
necessity of amending these regulatory provisions as HUD programs are 
created, terminated, or amended, HUD has not listed the relevant 
programs in the regulation. Rather, Secs. 5.306 and 5.318 state that 
HUD will identify these programs through notice.
    Appendix A to this final rule identifies those Housing programs 
which insure or assist projects for the elderly or persons with 
disabilities. Appendix B to this final rule lists HUD's Housing 
programs which are affected by the maximum pet deposit provisions. 
Neither of these appendices will be codified in title 24 of the Code of 
Federal Regulations. HUD may update these appendices, as necessary, 
through notice.

II. Justification for Final Rulemaking

    It is HUD's policy to publish rules for public comment before their 
issuance for effect in accordance with its own regulations on 
rulemaking found at 24 CFR part 10. However, part 10 provides that 
prior public procedure will be omitted if HUD determines that it is 
``impracticable, unnecessary, or contrary to the public interest.'' (24 
CFR 10.1.) HUD finds that in this case prior comment is unnecessary 
since this final rule does not affect or establish policy. This rule 
merely consolidates HUD's pet ownership requirements for its housing 
and public housing programs in 24 CFR part 5. Where consolidation is 
not possible, this rule retains those provisions which are exclusively 
applicable to HUD's housing or public housing programs. This final rule 
does not add or remove program requirements, but merely relocates them 
to a single part of HUD's regulations.

III. Other Matters

A. Environmental Impact

    This rulemaking does not have an environmental impact. This 
rulemaking simply amends existing regulations by consolidating and 
streamlining provisions and does not alter the environmental effect of 
the regulations being amended. 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 regulations implementing Section 227 of the Housing and 
Urban-Rural Recovery Act of 1983 (12 U.S.C. 1701r-1). That Finding 
remains applicable to this 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.

B. Executive Order 12612, 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 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. Specifically, 
this final rule merely consolidates the pet ownership requirements 
currently repeated in three separate parts of title 24. This rule 
effects no changes in the current relationships between the Federal 
government, the States and their political subdivisions in connection 
with these programs.

C. Executive Order 12606, the Family

    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this final rule does not 
have potential for significant impact on family formation, maintenance, 
and general well-being, and, thus, is not subject to review under the 
order. This final rule consolidates HUD's frequently repeated pet 
ownership requirements in 24 CFR part 5. No significant change in 
existing HUD policies or programs will result from promulgation of this 
rule as those policies and programs relate to family concerns.

D. Regulatory Flexibility Act

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed and approved this rule and in so doing 
certifies that this rule will not have a significant economic impact on 
a substantial number of small entities. This rule merely effectuates 
HUD's consolidation of its pet ownership rules and will not have any 
meaningful economic impact on any entity.

List of Subjects

24 CFR Part 5

    Administrative practice and procedure, Aged, Grant programs--
housing and community development, Individuals with disabilities, Loan 
programs--housing and community development, Low and moderate income 
housing, Mortgage insurance, Pets, Public housing, Rent subsidies, 
Reporting and recordkeeping requirements.

24 CFR Part 243

    Aged, Grant programs--housing and community development, 
Individuals with disabilities, Loan programs--housing and community 
development, Low and moderate income housing, Mortgage insurance, Pets, 
Reporting and recordkeeping requirements.

24 CFR Part 842

    Aged, Grant programs--housing and community development, 
Individuals with disabilities, Low and moderate income housing, Pets, 
Rent subsidies.

24 CFR Part 942

    Aged, Grant programs--housing and community development, 
Individuals with disabilities, Pets, Public housing, Reporting and 
recordkeeping requirements.
    Accordingly, and under the authority of 42 U.S.C. 3535(d), 24 CFR 
parts 5, 243, 842, and 942 are amended as follows:

PART 5--GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS

    1. The authority citation for part 5 is revised to read as follows:
    Authority: 12 U.S.C. 1701r-1; 42 U.S.C. 3535(d).
    2. A new subpart C is added to read as follows: 
    
[[Page 9538]]

Subpart C--Pet Ownership for the Elderly or Persons With Disabilities
Sec.

General Requirements

5.300  Purpose.
5.303  Exclusion for animals that assist persons with disabilities.
5.306  Definitions.
5.309  Prohibition against discrimination.
5.312  Notice to tenants.
5.315  Content of pet rules: general requirements.
5.318  Discretionary pet rules.
5.321  Lease provisions.
5.324  Implementation of lease provisions.
5.327  Nuisance or threat to health or safety.

Pet Ownership Requirements for Housing Programs

5.350  Mandatory pet rules for Housing programs.
5.353  Housing programs: Procedure for development of pet rules.
5.356  Housing programs: Pet rule violation procedures.
5.359  Housing programs: Rejection of units by applicants for 
tenancy.
5.360  Housing programs: Additional lease provisions.
5.363  Housing programs: Protection of the pet.

Pet Ownership Requirements for Public Housing Programs

5.380  Public housing programs: Procedure for development of pet 
rules.

Subpart C--Pet Ownership for the Elderly or Persons With 
Disabilities

General Requirements


Sec. 5.300  Purpose.

    (a) This subpart implements section 227 of the Housing and Urban-
Rural Recovery Act of 1983 (12 U.S.C. 1701r-1) as it pertains to 
projects for the elderly or persons with disabilities under:
    (1) The housing programs administered by the Assistant Secretary 
for Housing-Federal Housing Commissioner;
    (2) Projects assisted under the programs contained in chapter VIII 
of this title 24; and
    (3) The public housing programs administered by the Assistant 
Secretary for Public and Indian Housing under title I of the United 
States Housing Act of 1937 (42 U.S.C. 1437, et seq.). This part does 
not apply to Indian housing administered under title II of that Act.
    (b) [Reserved].


Sec. 5.303  Exclusion for animals that assist persons with 
disabilities.

    (a) This subpart C does not apply to animals that are used to 
assist persons with disabilities. Project owners and PHAs may not apply 
or enforce any pet rules developed under this subpart against 
individuals with animals that are used to assist persons with 
disabilities. This exclusion applies to animals that reside in projects 
for the elderly or persons with disabilities, as well as to animals 
that visit these projects.
    (1) A project owner may require resident animals to qualify for 
this exclusion. Project owners must grant this exclusion if:
    (i) The tenant or prospective tenant certifies in writing that the 
tenant or a member of his or her family is a person with a disability;
    (ii) The animal has been trained to assist persons with that 
specific disability; and
    (iii) The animal actually assists the person with a disability.
    (b) Nothing in this subpart C:
    (1) Limits or impairs the rights of persons with disabilities;
    (2) Authorizes project owners or PHAs to limit or impair the rights 
of persons with disabilities; or
    (3) Affects any authority that project owners or PHAs may have to 
regulate animals that assist persons with disabilities, under Federal, 
State, or local law.


Sec. 5.306  Definitions.

    Common household pet means:
    (1) For purposes of Housing programs: A domesticated animal, such 
as a dog, cat, bird, rodent (including a rabbit), fish, or turtle, that 
is traditionally kept in the home for pleasure rather than for 
commercial purposes. Common household pet does not include reptiles 
(except turtles). If this definition conflicts with any applicable 
State or local law or regulation defining the pets that may be owned or 
kept in dwelling accommodations, the State or local law or regulation 
shall apply. This definition shall not include animals that are used to 
assist persons with disabilities.
    (2) For purposes of Public Housing programs: PHAs may define the 
term ``common household pet'' under Sec. 5.318.
    Elderly or disabled family means:
    (1) For purposes of Housing programs: An elderly person, a person 
with a disability, or an elderly or disabled family for purposes of the 
program under which a project for the elderly or persons with 
disabilities is assisted or has its mortgage insured.
    (2) For purposes of Public Housing programs: (i) An elderly person, 
a person with a disability, or an elderly or disabled family as defined 
in Sec. 5.403 in subpart A of this part.
    Housing programs means:
    (1) The housing programs administered by the Assistant Secretary 
for Housing-Federal Housing Commissioner; and
    (2) The programs contained in chapter VIII of this title 24 that 
assist rental projects that meet the definition of project for the 
elderly or persons with disabilities in this subpart C.
    Project for the elderly or persons with disabilities means:
    (1) For purposes of Housing programs: (i) A specific rental or 
cooperative multifamily property that, unless currently owned by HUD, 
is subject to a first mortgage, and:
    (A) That is assisted under statutory authority identified by HUD 
through notice;
    (B) That was designated for occupancy by elderly or disabled 
families when funds for the project were reserved, or when the 
commitment to insure the mortgage was issued or, of not then so 
designated, that is designated for such occupancy in an effective 
amendment to the regulatory agreement covering the project, made 
pursuant to the project owner's request, and that is assisted or 
insured under one of the programs identified by HUD through notice; or
    (C) For which preference in tenant selection is given for all units 
in the project to elderly or disabled families and that is owned by HUD 
or assisted under one of the programs identified by HUD through notice.
    (ii) This term does not include health and care facilities that 
have mortgage insurance under the National Housing Act. This term also 
does not include any of the project owner's other property that does 
not meet the criteria contained in any one of paragraphs (1)(i)(A) 
through (C) of this definition, even if the property is adjacent to or 
under joint or common management with such specific property.
    (2) For purposes of Public Housing programs: Any project assisted 
under title I of the United States Housing Act of 1937 (other than 
under section 8 or 17 of the Act), including any building within a 
mixed-use project, that was designated for occupancy by the elderly or 
persons with disabilities at its inception or, although not so 
designated, for which the PHA gives preference in tenant selection 
(with HUD approval) for all units in the project (or for a building 
within a mixed-use project) to elderly or disabled families. For 
purposes of this part, this term does not include projects assisted the 
Low-Rent Housing Homeownership Opportunity program or under title II of 
the United States Housing Act of 1937.
    Project owner means an owner (including HUD, where HUD is the 
owner) or manager of a project for the 

[[Page 9539]]
elderly or persons with disabilities, or an agent authorized to act for 
an owner or manager of such housing.
    Public Housing Agency (PHA) is defined in Sec. 5.100.
    Public Housing programs means the public housing programs 
administered by the Assistant Secretary for Public and Indian Housing 
under title I of the United States Housing Act of 1937.


Sec. 5.309  Prohibition against discrimination.

    Except as otherwise specifically authorized under this subpart no 
project owner or PHA that owns or manages a project for the elderly or 
persons with disabilities may:
    (a) As a condition of tenancy or otherwise, prohibit or prevent any 
tenant of such housing from owning common household pets or having such 
pets living in the tenant's dwelling unit; or
    (b) Restrict or discriminate against any person in connection with 
admission to, or continued occupancy of, such housing by reason of the 
person's ownership of common household pets or the presence of such 
pets in the person's dwelling unit.


Sec. 5.312  Notice to tenants.

    (a) During the development of pet rules as described in Secs. 5.353 
or 5.380, the project owner or PHA shall serve written notice on all 
tenants of projects for the elderly or persons with disabilities in 
occupancy at the time of service, stating that:
    (1) Tenants are permitted to own and keep common household pets in 
their dwelling units, in accordance with the pet rules (if any) 
promulgated under this subpart C;
    (2) Animals that are used to assist persons with disabilities are 
excluded from the requirements of this subpart C, as provided in 
Sec. 5.303;
    (3) Tenants may, at any time, request a copy of any current pet 
rule developed under this subpart C (as well as any current proposed 
rule or proposed amendment to an existing rule); and
    (4) Tenants may request that their leases be amended under 
Sec. 5.321 to permit common household pets.
    (b) The project owner or PHA shall provide to each applicant for 
tenancy when he or she is offered a dwelling unit in a project for the 
elderly or persons with disabilities, the written notice specified in 
paragraphs (a) (1), (2), and (3) of this section.
    (c) If a PHA chooses not to promulgate pet rules, the notice shall 
be served within 60 days of the effective date of this part. PHAs shall 
serve notice under this section in accordance with their normal service 
of notice procedures.


Sec. 5.315  Content of pet rules: general requirements.

    (a) Housing programs. The project owner shall prescribe reasonable 
rules to govern the keeping of common household pets. The pet rules 
must include the mandatory rules described in Sec. 5.350 and may, 
unless otherwise noted in this subpart C, include other discretionary 
provisions as provided in Sec. 5.318.
    (b) Public Housing programs. (1) PHAs may choose not to promulgate 
rules governing the keeping of common household pets or may include 
rules as provided in Sec. 5.318. PHAs may elect to include provisions 
based on those in Sec. 5.350. If they so choose, the PHAs may modify 
the provisions in Sec. 5.350 in any manner consistent with this subpart 
C.
    (2) If PHAs choose to promulgate pet rules, tenants must be 
permitted to own and keep pets in their units in accordance with the 
terms and conditions of their leases, the provisions of this subpart C, 
and any applicable State or local law or regulation governing the 
owning or keeping of pets in dwelling accommodations.
    (3) PHAs that choose not to promulgate pet rules, shall not impose, 
by lease modification or otherwise, any requirement that is 
inconsistent with the provisions of this subpart C.
    (c) Use of discretion. (1) This subpart C does not define with 
specificity the limits of the project owners' or PHAs' discretion to 
promulgate pet rules. Where a project owner or PHA has discretion to 
prescribe pet rules under this subpart C, the pet rules should be:
    (i) Reasonably related to furthering a legitimate interest of the 
project owner or PHA, such as the owner's or PHA's interest in 
providing a decent, safe, and sanitary living environment for existing 
and prospective tenants and in protecting and preserving the physical 
condition of the project and the owner's or PHA's financial interest in 
it; and
    (ii) Drawn narrowly to achieve the owner's or PHA's legitimate 
interests, without imposing unnecessary burdens and restrictions on pet 
owners and prospective pet owners.
    (2) Where a project owner or PHA has discretion to prescribe pet 
rules under this subpart C, the owner or PHA may vary the rules' 
content among projects and within individual projects, based on factors 
such as the size, type, location, and occupancy of the project or its 
units, provided that the applicable rules are reasonable and do not 
conflict with any applicable State or local law or regulation governing 
the owning or keeping of pets in dwelling accommodations.
    (d) Conflict with State or local law. The pet rules adopted by the 
project owner or PHA shall not conflict with applicable State or local 
law or regulations. If such a conflict may exist, the State and local 
law or regulations shall apply.


Sec. 5.318  Discretionary pet rules.

    Pet rules promulgated by project owners and PHAs may include, but 
are not limited to, consideration of the following factors:
    (a) Definitions of ``common household pet.''--(1) For Public 
Housing programs. The pet rules established by a PHA may contain a 
reasonable definition of a common household pet.
    (2) For Housing programs. Project owners wishing to define ``common 
household pet'' in their pet rules must use the Housing programs 
definition of the term in Sec. 5.306.
    (b) Density of tenants and pets. (1)(i) The pet rules established 
under this section may take into account tenant and pet density. The 
pet rules may place reasonable limitations on the number of common 
household pets that may be allowed in each dwelling unit. In the case 
of group homes, the pet rules may place reasonable limitations on the 
number of common household pets that may be allowed in each home.
    (ii) For Housing programs. Under these rules, project owners may 
limit the number of four-legged, warm-blooded pets to one pet in each 
dwelling unit or group home.
    (iii) Other than the limitations described in this paragraph 
(b)(1), the pet rules may not limit the total number of pets allowed in 
the project.
    (2) As used in paragraph (b)(1) of this section, the term ``group 
home'' means:
    (i) For purposes of Housing programs. A small, communal living 
arrangement designed specifically for individuals who are chronically 
mentally ill, developmentally disabled, or physically disabled who 
require a planned program of continual supportive services or 
supervision (other than continual nursing, medical or psychiatric 
care).
    (ii) For purposes of Public Housing programs. A dwelling or 
dwelling unit for the exclusive residential use of elderly persons or 
persons with disabilities who are not capable of living completely 
independently and who require a planned program of continual supportive 
services or supervision (other than continual nursing, medical or 
psychiatric care).
    (c) Pet size and pet type. The pet rules may place reasonable 
limitations on the size, weight, and type of common household pets 
allowed in the project. 

[[Page 9540]]

    (d) Potential financial obligations of tenants (1) Pet deposits. 
The pet rules may require tenants who own or keep pets in their units 
to pay a refundable pet deposit. In the case of project owners, this 
pet deposit shall be limited to those tenants who own or keep cats or 
dogs in their units. This deposit is in addition to any other financial 
obligation generally imposed on tenants of the project. The project 
owner or PHA may use the pet deposit only to pay reasonable expenses 
directly attributable to the presence of the pet in the project, 
including (but not limited to) the cost of repairs and replacements to, 
and fumigation of, the tenant's dwelling unit and, for project owners, 
the cost of animal care facilities under Sec. 5.363. The project owner 
or PHA shall refund the unused portion of the pet deposit to the tenant 
within a reasonable time after the tenant moves from the project or no 
longer owns or keeps a pet (or a cat or dog in the case of project 
owners) in the dwelling unit.
    (2) Housing programs: Maximum pet deposit. (i) Pet deposits for the 
following tenants shall not exceed an amount periodically fixed by HUD 
through notice.
    (A) Tenants whose rents are subsidized (including tenants of a HUD-
owned project, whose rents were subsidized before HUD acquired it) 
under one of the programs identified by HUD through notice.
    (B) Tenants who live in a project assisted (including tenants who 
live in a HUD-owned project that was assisted before HUD acquired it) 
under one of the programs identified by HUD through notice.
    (C) For all other tenants of projects for the elderly or persons 
with disabilities, the pet deposit shall not exceed one month's rent at 
the time the pet is brought onto the premises.
    (ii) In establishing the maximum amount of pet deposit under 
paragraph (d)(2)(i) of this section, HUD will consider factors such as:
    (A) Projected, estimated expenses directly attributable to the 
presence of pets in the project;
    (B) The ability of project owners to offset such expenses by use of 
security deposits or HUD-reimbursable expenses; and
    (C) The low income status of tenants of projects for the elderly or 
persons with disabilities.
    (iii) For pet deposits subject to paragraph (d)(2)(i)(A) of this 
section, the pet rules shall provide for gradual accumulation of the 
deposit by the pet owner through an initial payment not to exceed $50 
when the pet is brought onto the premises, and subsequent monthly 
payments not to exceed $10 per month until the amount of the deposit is 
reached.
    (iv) For pet deposits subject to paragraphs (d)(2)(i)(B) and (C) of 
this section, the pet rules may provide for gradual accumulation of the 
deposit by the pet owner.
    (v) The project owner may (subject to the HUD-prescribed limits) 
increase the amount of the pet deposit by amending the house pet rules 
in accordance with Sec. 5.353.
    (A) For pet deposits subject to paragraph (d)(2)(i)(A) of this 
section, the house pet rules shall provide for gradual accumulation of 
any such increase not to exceed $10 per month for all deposit amounts 
that are being accumulated.
    (B) [Reserved].
    (vi) Any pet deposit that is established within the parameters set 
forth by paragraph (d)(2) of this section shall be deemed reasonable 
for purposes of this subpart C.
    (3) Public Housing programs: Maximum pet deposit. The maximum 
amount of pet deposit that may be charged by the PHA, on a per dwelling 
unit basis, shall not exceed the higher of the Total Tenant Payment (as 
defined in 24 CFR 913.102) or such reasonable fixed amount as the PHA 
may require. The pet rules may permit gradual accumulation of the pet 
deposit by the pet owner.
    (4) Housing programs: Waste removal charge. The pet rules may 
permit the project owner to impose a separate waste removal charge of 
up to five dollars ($5) per occurrence on pet owners that fail to 
remove pet waste in accordance with the prescribed pet rules. Any pet 
waste removal charge that is within this five dollar ($5) limitation 
shall be deemed to be a reasonable amount for the purposes of this 
subpart C.
    (5) The pet deposit (for Housing and Public Housing programs) and 
waste removal charge (for Housing programs) are not part of the rent 
payable by the tenant. Except as provided in paragraph (d) of this 
section for Housing programs and, paragraph (d) of this section and 24 
CFR 966.4(b) for Public Housing programs, project owners or PHAs may 
not prescribe pet rules that impose additional financial obligations on 
pet owners that are designed to compensate the project owner or PHA for 
costs associated with the presence of pets in the project, including 
(but not limited to) requiring pet owners:
    (i) To obtain liability or other insurance to cover damage caused 
by the pet;
    (ii) To agree to be strictly liable for all damages caused by the 
pet where this liability is not otherwise imposed by State or local 
law, or
    (iii) To indemnify the project owner for pet-related litigation and 
attorney's fees.
    (e) Standards of pet care. The pet rules may prescribe standards of 
pet care and handling, but must be limited to those necessary to 
protect the condition of the tenant's unit and the general condition of 
the project premises, or to protect the health or safety of present 
tenants, project employees, and the public. The pet rules may not 
require pet owners to have any pet's vocal cords removed. Permitted 
rules may:
    (1) Bar pets from specified common areas (such as lobbies, laundry 
rooms, and social rooms), unless the exclusion will deny a pet 
reasonable ingress and egress to the project or building.
    (2) Require the pet owner to control noise and odor caused by a 
pet.
    (3) Housing programs: Project owners may also:
    (i) Require pet owners to have their dogs and cats spayed or 
neutered; and
    (ii) Limit the length of time that a pet may be left unattended in 
a dwelling unit.
    (f) Pet licensing. The pet rules may require pet owners to license 
their pets in accordance with applicable State and local laws and 
regulations. (Failure of the pet rules to contain this requirement does 
not relieve the pet owner of responsibility for complying with 
applicable State and local pet licensing requirements.)
    (g) Public Housing programs: Designated pet areas. (1) PHAs may 
designate buildings, floors of buildings, or sections of buildings as 
no-pet areas where pets generally may not be permitted. Similarly, the 
pet rules may designate buildings, floors of buildings, or sections of 
buildings for residency generally by pet-owning tenants. The PHA may 
direct such initial tenant moves as may be necessary to establish pet 
and no-pet areas. The PHA may not refuse to admit (or delay admission 
of) an applicant for tenancy on the grounds that the applicant's 
admission would violate a pet or no-pet area. The PHA may adjust the 
pet and no-pet areas or may direct such additional moves as may be 
necessary (or both) to accommodate such applicants for tenancy or to 
meet the changing needs of existing tenants.
    (2) Project owners may not designate pet areas in buildings in 
their pet rules.
    (h) Pets temporarily on the premises. The pet rules may exclude 
from the project pets not owned by a tenant that are to be kept 
temporarily on the project premises. For the purposes of paragraph 

[[Page 9541]]
(h) of this section, pets are to be kept ``temporarily'' if they are to 
be kept in the tenant's dwelling accommodations for a period of less 
than 14 consecutive days and nights. HUD, however, encourages project 
owners and PHAs to permit the use of a visiting pet program sponsored 
by a humane society, or other nonprofit organization.


Sec. 5.321  Lease provisions.

    (a) Lease provisions. (1) PHAs which have established pet rules and 
project owners shall ensure that the leases for all tenants of projects 
for the elderly or persons with disabilities:
    (i) State that tenants are permitted to keep common household pets 
in their dwelling units (subject to the provisions of this subpart and 
the pet rules);
    (ii) Shall incorporate by reference the pet rules promulgated by 
the project owner or PHA;
    (iii) Shall provide that the tenant agrees to comply with these 
rules; and
    (iv) Shall state that violation of these rules may be grounds for 
removal of the pet or termination of the pet owner's tenancy (or both), 
in accordance with the provisions of this subpart and applicable 
regulations and State or local law.
    (b) Where a PHA has not established pet rules, the leases of all 
tenants of such projects shall not contain any provisions prohibiting 
the owning or keeping of common household pets, and shall state that 
owning and keeping of such pets will be subject to the general 
obligations imposed on the PHA and tenants in the lease and any 
applicable State or local law or regulation governing the owning or 
keeping of pets in dwelling accommodations.


Sec. 5.324  Implementation of lease provisions.

    The lease for each tenant of a project for the elderly or persons 
with disabilities who is admitted on or after the date on which this 
subpart C is implemented shall contain the lease provisions described 
in Sec. 5.321 and, if applicable, Sec. 5.360. The lease for each tenant 
who occupies a unit in such a project under lease on the date of 
implementation of this part shall be amended to include the provisions 
described in Sec. 5.321 and, if applicable, Sec. 5.360:
    (a) For Housing programs:
    (1) Upon renewal of the lease and in accordance with any applicable 
regulation; and
    (2) When a Housing program tenant registers a common household pet 
under Sec. 5.350
    (b) For Public Housing programs:
    (1) Upon annual reexamination of tenant income in accordance with 
any applicable regulation; and
    (2) When a Public Housing program tenant wishes to own or keep a 
common household pet in his or her unit.


Sec. 5.327  Nuisance or threat to health or safety.

    Nothing in this subpart C prohibits a project owner, PHA, or an 
appropriate community authority from requiring the removal of any pet 
from a project, if the pet's conduct or condition is duly determined to 
constitute, under the provisions of State or local law, a nuisance or a 
threat to the health or safety of other occupants of the project or of 
other persons in the community where the project is located.

Pet Ownership Requirements for Housing Programs


Sec. 5.350  Mandatory pet rules for Housing programs.

    Mandatory rules. The project owner must prescribe the following pet 
rules:
    (a) Inoculations. The pet rules shall require pet owners to have 
their pets inoculated in accordance with State and local laws.
    (b) Sanitary standards. (1) The pet rules shall prescribe sanitary 
standards to govern the disposal of pet waste. These rules may:
    (i) Designate areas on the project premises for pet exercise and 
the deposit of pet waste;
    (ii) Forbid pet owners from exercising their pets or permitting 
their pets to deposit waste on the project premises outside the 
designated areas;
    (iii) Require pet owners to remove and properly dispose of all 
removable pet waste; and
    (iv) Require pet owners to remove pets from the premises to permit 
the pet to exercise or deposit waste, if no area in the project is 
designated for such purposes.
    (2) In the case of cats and other pets using litter boxes, the pet 
rules may require the pet owner to change the litter (but not more than 
twice each week), may require pet owners to separate pet waste from 
litter (but not more than once each day), and may prescribe methods for 
the disposal of pet waste and used litter.
    (c) Pet restraint. The pet rules shall require that all cats and 
dogs be appropriately and effectively restrained and under the control 
of a responsible individual while on the common areas of the project.
    (d) Registration. (1) The pet rules shall require pet owners to 
register their pets with the project owner. The pet owner must register 
the pet before it is brought onto the project premises, and must update 
the registration at least annually. The project owner may coordinate 
the annual update with the annual reexamination of tenant income, if 
applicable. The registration must include:
    (i) A certificate signed by a licensed veterinarian or a State or 
local authority empowered to inoculate animals (or designated agent of 
such an authority) stating that the pet has received all inoculations 
required by applicable State and local law;
    (ii) Information sufficient to identify the pet and to demonstrate 
that it is a common household pet; and
    (iii) The name, address, and phone number of one or more 
responsible parties who will care for the pet if the pet owner dies, is 
incapacitated, or is otherwise unable to care for the pet.
    (2) The project owner may require the pet owner to provide 
additional information necessary to ensure compliance with any 
discretionary rules prescribed under Sec. 5.318, and shall require the 
pet owner to sign a statement indicating that he or she has read the 
pet rules and agrees to comply with them.
    (3) The pet rules shall permit the project owner to refuse to 
register a pet if:
    (i) The pet is not a common household pet;
    (ii) The keeping of the pet would violate any applicable house pet 
rule;
    (iii) The pet owner fails to provide complete pet registration 
information or fails annually to update the pet registration; or
    (iv) The project owner reasonably determines, based on the pet 
owner's habits and practices, that the pet owner will be unable to keep 
the pet in compliance with the pet rules and other lease obligations. 
The pet's temperament may be considered as a factor in determining the 
prospective pet owner's ability to comply with the pet rules and other 
lease obligations.
    (4) The project owner may not refuse to register a pet based on a 
determination that the pet owner is financially unable to care for the 
pet or that the pet is inappropriate, based on the therapeutic value to 
the pet owner or the interests of the property or existing tenants.
    (5) The pet rules shall require the project owner to notify the pet 
owner if the project owner refuses to register a pet. The notice shall 
state the basis for the project owner's action and shall be served on 
the pet owner in accordance with the requirements of 
Sec. 5.353(f)(1)(i) or (ii). The notice of refusal to register 

[[Page 9542]]
a pet may be combined with a notice of pet violation as required in 
Sec. 5.356.


Sec. 5.353  Housing programs: Procedure for development of pet rules.

    (a) General. Project owners shall use the procedures specified in 
this section to promulgate the pet rules referred to in Secs. 5.318 and 
5.350.
    (b) Development and notice of proposed pet rules. Project owners 
shall develop proposed rules to govern the owning or keeping of common 
household pets in projects for the elderly or persons with 
disabilities. Notice of the proposed pet rules shall be served on each 
tenant of the project as provided in paragraph (f) of this section. The 
notice shall:
    (1) Include the text of the proposed rules;
    (2) State that tenants or tenant representatives may submit written 
comments on the rules; and
    (3) State that all comments must be submitted to the project owner 
no later than 30 days from the effective date of the notice of the 
proposed rules.
    (4) The notice may also announce the date, time, and place for a 
meeting to discuss the proposed rules (as provided in paragraph (c) of 
this section).
    (c) Tenant consultation. Tenants or tenant representatives may 
submit written comments on the proposed pet rules to the project owner 
by the date specified in the notice of proposed rules. In addition, the 
owner may schedule one or more meetings with tenants during the comment 
period to discuss the proposed rules. Tenants and tenant 
representatives may make oral comments on the proposed rules at these 
meetings. The project owner must consider comments made at these 
meetings only if they are summarized, reduced to writing, and submitted 
to the project owner before the end of the comment period.
    (d) Development and notice of final pet rules. The project owner 
shall develop the final rules after reviewing tenants' written comments 
and written summaries of any owner-tenant meetings. The project owner 
may meet with tenants and tenant representatives to attempt to resolve 
issues raised by the comments. Subject to this subpart C, the content 
of the final pet rules, however, is within the sole discretion of the 
project owner. The project owner shall serve on each tenant of the 
project, a notice of the final pet rules as provided in paragraph (f) 
of this section. The notice must include the text of the final pet 
rules and must specify the effective date of the final pet rules.
    (e) Amendment of pet rules. The project owner may amend the pet 
rules at any time by following the procedure for the development of pet 
rules specified in paragraphs (b) through (d) of this section.
    (f) Service of notice. (1) The project owner must serve the notice 
required under this section by:
    (i) Sending a letter by first class mail, properly stamped and 
addressed to the tenant at the dwelling unit, with a proper return 
address; or
    (ii) Serving a copy of the notice on any adult answering the door 
at the tenant's leased dwelling unit, or if no adult responds, by 
placing the notice under or through the door, if possible, or else by 
attaching the notice to the door; or
    (iii) For service of notice to tenants of a high-rise building, 
posting the notice in at least three conspicuous places within the 
building and maintaining the posted notices intact and in legible form 
for 30 days. For purposes of paragraph (f) of this section, a high-rise 
building is a structure that is equipped with an elevator and has a 
common lobby.
    (2) For purposes of computing time periods following service of the 
notice, service is effective on the day that all notices are delivered 
or mailed, or in the case of service by posting, on the day that all 
notices are initially posted.


Sec. 5.356  Housing programs: Pet rule violation procedures.

    (a) Notice of pet rule violation. If a project owner determines on 
the basis of objective facts, supported by written statements, that a 
pet owner has violated a rule governing the owning or keeping of pets; 
the project owner may serve a written notice of pet rule violation on 
the pet owner in accordance with Sec. 5.353(f)(1)(i) or (ii). The 
notice of pet rule violation must:
    (1) Contain a brief statement of the factual basis for the 
determination and the pet rule or rules alleged to be violated;
    (2) State that the pet owner has 10 days from the effective date of 
service of the notice to correct the violation (including, in 
appropriate circumstances, removal of the pet) or to make a written 
request for a meeting to discuss the violation;
    (3) State that the pet owner is entitled to be accompanied by 
another person of his or her choice at the meeting; and
    (4) State that the pet owner's failure to correct the violation, to 
request a meeting, or to appear at a requested meeting may result in 
initiation of procedures to terminate the pet owner's tenancy.
    (b) (1) Pet rule violation meeting. If the pet owner makes a timely 
request for a meeting to discuss an alleged pet rule violation, the 
project owner shall establish a mutually agreeable time and place for 
the meeting but no later than 15 days from the effective date of 
service of the notice of pet rule violation (unless the project owner 
agrees to a later date). At the pet rule violation meeting, the pet 
owner and project owner shall discuss any alleged pet rule violation 
and attempt to correct it. The project owner may, as a result of the 
meeting, give the pet owner additional time to correct the violation.
    (2) Notice for pet removal. If the pet owner and project owner are 
unable to resolve the pet rule violation at the pet rule violation 
meeting, or if the project owner determines that the pet owner has 
failed to correct the pet rule violation within any additional time 
provided for this purpose under paragraph (b)(1) of this section, the 
project owner may serve a written notice on the pet owner in accordance 
with Sec. 5.353(f)(1)(i) or (ii) (or at the meeting, if appropriate), 
requiring the pet owner to remove the pet. The notice must:
    (i) Contain a brief statement of the factual basis for the 
determination and the pet rule or rules that have been violated;
    (ii) State that the pet owner must remove the pet within 10 days of 
the effective date of service of the notice of pet removal (or the 
meeting, if notice is served at the meeting); and
    (iii) State that failure to remove the pet may result in initiation 
of procedures to terminate the pet owner's tenancy.
    (c) Initiation of procedures to remove a pet or terminate the pet 
owner's tenancy. (1) The project owner may not initiate procedures to 
terminate a pet owner's tenancy based on a pet rule violation, unless:
    (i) The pet owner has failed to remove the pet or correct a pet 
rule violation within the applicable time period specified in this 
section (including any additional time permitted by the owner); and
    (ii) The pet rule violation is sufficient to begin procedures to 
terminate the pet owner's tenancy under the terms of the lease and 
applicable regulations.
    (2) The project owner may initiate procedures to remove a pet under 
Sec. 5.327 at any time, in accordance with the provisions of applicable 
State or local law.


Sec. 5.359  Housing programs: Rejection of units by applicants for 
tenancy.

    (a) An applicant for tenancy in a project for the elderly or 
persons with disabilities may reject a unit offered by a project owner 
if the unit is in close 

[[Page 9543]]
proximity to a dwelling unit in which an existing tenant of the project 
owns or keeps a common household pet. An applicant's rejection of a 
unit under this section shall not adversely affect his or her 
application for tenancy in the project, including (but not limited to) 
his or her position on the project waiting list or qualification for 
any tenant selection preference.
    (b) Nothing in this subpart C imposes a duty on project owners to 
provide alternate dwelling units to existing or prospective tenants 
because of the proximity of common household pets to a particular unit 
or the presence of such pets in the project.


Sec. 5.360  Housing programs: Additional lease provisions.

    (a) Inspections. In addition to other inspections permitted under 
the lease, the leases for all Housing program tenants of projects for 
the elderly or persons with disabilities may state that the project 
owner may, after reasonable notice to the tenant and during reasonable 
hours, enter and inspect the premises. The lease shall permit entry and 
inspection only if the project owner has received a signed, written 
complaint alleging (or the project owner has reasonable grounds to 
believe) that the conduct or condition of a pet in the dwelling unit 
constitutes, under applicable State or local law, a nuisance or a 
threat to the health or safety of the occupants of the project or other 
persons in the community where the project is located.
    (b) Emergencies. (1) If there is no State or local authority (or 
designated agent of such an authority) authorized under applicable 
State or local law to remove a pet that becomes vicious, displays 
symptoms of severe illness, or demonstrates other behavior that 
constitutes an immediate threat to the health or safety of the tenancy 
as a whole, the project owner may place a provision in tenant leases 
permitting the project owner to enter the premises (if necessary), 
remove the pet, and take such action with respect to the pet as may be 
permissible under State and local law, which may include placing it in 
a facility that will provide care and shelter for a period not to 
exceed 30 days.
    (2) The lease shall permit the project owner to enter the premises 
and remove the pet or take such other permissible action only if the 
project owner requests the pet owner to remove the pet from the project 
immediately, and the pet owner refuses to do so, or if the project 
owner is unable to contact the pet owner to make a removal request. The 
lease may not contain a provision relieving the project owner from 
liability for wrongful removal of a pet. The cost of the animal care 
facility shall be paid as provided in Sec. 5.363.
    (3) The project owner may place a provision in tenant leases 
permitting the project owner to enter the premises, remove the pet, and 
place the pet in a facility that will provide care and shelter, in 
accordance with the provisions of Sec. 5.363. The lease may not contain 
a provision relieving the project owner from liability for wrongful 
removal of a pet.


Sec. 5.363  Housing programs: protection of the pet.

    (a) If the health or safety of a pet is threatened by the death or 
incapacity of the pet owner, or by other factors that render the pet 
owner unable to care for the pet, the project owner may contact the 
responsible party or parties listed in the pet registration required 
under Sec. 5.350(d)(1)(iii).
    (b) If the responsible party or parties are unwilling or unable to 
care for the pet, or the project owner, despite reasonable efforts, has 
been unable to contact the responsible party or parties, the project 
owner may contact the appropriate State or local authority (or 
designated agent of such an authority) and request the removal of the 
pet.
    (c) If there is no State or local authority (or designated agent of 
such an authority) authorized to remove a pet under these circumstances 
and the project owner has placed a provision in the lease agreement (as 
described in Sec. 5.360(c)(2)), the project owner may enter the pet 
owner's unit, remove the pet, and place the pet in a facility that will 
provide care and shelter until the pet owner or a representative of the 
pet owner is able to assume responsibility for the pet, but not longer 
than 30 days.
    (d) The cost of the animal care facility provided under this 
section shall be borne by the pet owner. If the pet owner (or the pet 
owner's estate) is unable or unwilling to pay, the cost of the animal 
care facility may be paid from the pet deposit, if imposed under the 
pet rules.

Pet Ownership Requirements for Public Housing Programs


Sec. 5.380  Public Housing programs: Procedure for development of pet 
rules.

    PHAs that choose to promulgate pet rules shall consult with tenants 
of projects for the elderly or persons with disabilities administered 
by them with respect to their promulgation and subsequent amendment. 
PHAs shall develop the specific procedures governing tenant 
consultation, but these procedures must be designed to give tenants 
(or, if appropriate, tenant councils) adequate opportunity to review 
and comment upon the pet rules before they are issued for effect. PHAs 
are solely responsible for the content of final pet rules, but must 
give consideration to tenant comments. PHAs shall send to the 
responsible HUD field office, copies of the final (or amended) pet 
rules, as well as summaries or copies of all tenant comments received 
in the course of the tenant consultation.

PART 243--[REMOVED]

    3. Part 243 is removed.

PART 842--[REMOVED]

    4. Part 842 is removed.

PART 942--[REMOVED]

    5. Part 942 is removed.

    Dated: February 22, 1996.
Henry G. Cisneros,
Secretary.

    Note: This Appendix A will not be codified in Title 24 of the 
CFR.

Appendix A--Guide to Definition of Projects for the Elderly or Persons 
With Disabilities for Purposes of HUD's Housing Programs

Sec.
1. Purpose.
2. Housing Programs Which Insure or Assist Projects for the Elderly 
or Persons with Disabilities.

1. Purpose

    The regulations at 24 CFR part 5, subpart C, describe HUD's pet 
ownership requirements. Section 5.306 provides separate definitions 
of the term ``Project for the elderly or persons with disabilities'' 
for HUD's Housing and Public Housing programs. The definition 
applicable to the Housing programs states that projects must be 
assisted under certain HUD programs in order to qualify as projects 
for the elderly or persons with disabilities. However, in order to 
eliminate the necessity of amending this regulatory definition as 
HUD programs are created, terminated, or revised, HUD has not listed 
the relevant Housing programs in the definition. Rather, the 
definition states that HUD will identify these programs through 
notice. The purpose of this appendix is to identify HUD's Housing 
programs which insure or assist projects for the elderly or persons 
with disabilities.

2. Housing Programs Which Insure or Assist Project for the Elderly 
or Persons With Disabilities

    This appendix repeats the definition for HUD's Housing programs 
in 24 CFR 5.306, but lists the applicable programs. HUD may 
periodically update this appendix through notice.
    Project for the elderly or persons with disabilities means:
    (1) For purposes of Housing programs: A specific rental or 
cooperative multifamily 

[[Page 9544]]
property that, unless currently owned by HUD, is subject to a first 
mortgage, and:
    (i) That is assisted under section 202 of the Housing Act of 
1959 (Housing for the Elderly or Handicapped);
    (ii) That was designated for occupancy by elderly or disabled 
families when funds for the project were reserved, or when the 
commitment to insure the mortgage was issued or, if not then so 
designated, that is designated for such occupancy in an effective 
amendment to the regulatory agreement covering the project, made 
pursuant to the project owner's request, and:
    (A) That is assisted (with or without HUD mortgage insurance) 
under section 221(d)(3) (BMIR) of the National Housing Act or 24 CFR 
part 236; or
    (B) Insured under section 221(d)(3) (Market Rate) or section 
221(d)(4) of the National Housing Act, or 24 CFR part 231 (Housing 
Mortgage Insurance for the Elderly);
    (iii) For which preference in tenant selection is given for all 
units in the project to elderly or disabled families and that is 
owned by HUD or assisted under the following programs:
    (A) Housing Development Grant program;
    (B) Section 8  New Construction;
    (C) Section 8  Substantial Rehabilitation;
    (D) Section 8  Moderate Rehabilitation;
    (E) Section 8  State Housing Agency programs;
    (F) Section 8  Rural Set-Aside;
    (G) Section 8  Loan Management and Property Disposition.
    (2) This term does not include health and care facilities that 
have mortgage insurance under the National Housing Act. This term 
also does not include any of the project owner's other property that 
does not meet the criteria contained in any one of paragraphs (1) 
(i) through (iii) of this definition, even if the property is 
adjacent to or under joint or common management with such specific 
property.

    Note: This Appendix B Will not be Codified in Title 24 of the 
CFR.

Appendix B--Guide to Maximum Pet Deposit for Housing Programs

Sec.
1. Purpose.
2. Housing Programs Affected by Maximum Pet Deposit Requirements.

1. Purpose

    The regulations at 24 CFR part 5, subpart C, describe the pet 
ownership requirements for HUD's Housing and Public housing 
programs. Paragraph (d)(2) of Sec. 5.318 limits the pet deposit 
charges that may be imposed by project owners assisted under certain 
HUD programs. In order to eliminate the necessity of amending this 
regulatory provision as HUD programs are created, eliminated, or 
amended, HUD has not listed the relevant Housing programs in this 
regulation. Rather, paragraphs (d)(2)(i) (A) and (B) of Sec. 5.318 
state that HUD will identify through notice the Housing programs 
affected by the maximum pet deposit requirements. The purpose of 
this appendix is to identify these Housing programs.

2. Housing Programs Affected by Maximum Pet Deposit Requirements

    This appendix repeats the maximum pet deposit provision in 24 
CFR 5.318(d)(2), but lists the applicable Housing programs. HUD may 
periodically update this appendix through notice.
    Housing programs: Maximum pet deposit. (i) Pet deposits for the 
following tenants shall not exceed an amount periodically fixed by 
HUD through notice:
    (A) Tenants whose rents are subsidized (including tenants of a 
HUD-owned project, whose rents were subsidized before HUD acquired 
it) under the following programs:
    (1) Rent Supplement Payments;
    (2) Rental assistance Payments;
    (3) Housing Development Grant program;
    (4) Section 8  New Construction;
    (5) Section 8  Substantial Rehabilitation;
    (6) Section 8  Moderate Rehabilitation;
    (7) Section 8  State Housing Agency program;
    (8) Section 8  Rural Set-Aside;
    (9) Loans for Housing for the Elderly or Persons with 
Disabilities; or
    (10) Section 8 Loan Management and Property Disposition.
    (B) Tenants who live in a project assisted (including tenants 
who live in a HUD-owned project that was assisted before HUD 
acquired it) under:
    (1) The Interest Reduction Payments program;
    (2) Section 202 of the Housing Act of 1959; or
    (3) Section 221(d)(3) (BMIR) of the National Housing Act.
    (C) For all other tenants of projects for the elderly or persons 
with disabilities, the pet deposit shall not exceed one month's rent 
at the time the pet is brought onto the premises. The house pet 
rules may permit gradual accumulation of the pet deposit by the pet 
owner.

[FR Doc. 96-5298 Filed 3-7-96; 8:45 am]
BILLING CODE 4210-32-P