[Federal Register Volume 61, Number 60 (Wednesday, March 27, 1996)]
[Rules and Regulations]
[Pages 13614-13627]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7188]




[[Page 13613]]

_______________________________________________________________________

Part V





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Secretary



_______________________________________________________________________



24 CFR Part 5, et al.



Consolidation and Streamlining of the Restrictions on Assistance to 
Noncitizens; Final Rule

  Federal Register / Vol. 61, No. 60 / Wednesday, March 27, 1996 / 
Rules and Regulations  

[[Page 13614]]


DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Secretary

24 CFR Parts 5, 200, 236, 247, 812, 882, 887, 904, 912, 960, and 
982

[Docket No. FR-3988-F-01]
RIN 2501-AC12


Consolidation and Streamlining of the Restrictions on Assistance 
to Noncitizens

AGENCY: Office of the Secretary, HUD.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: On March 20, 1995, HUD issued its final rule implementing 
Section 214 of the Housing and Community Development Act of 1980, as 
amended. Section 214 prohibits 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. HUD's March 20, 1995 final rule, which became 
effective on June 19, 1995, promulgated virtually identical 
``noncitizen'' regulations for the HUD programs covered by Section 214. 
This final rule eliminates the redundancy of these duplicative 
regulations by consolidating noncitizens requirements and relocating 
them to a single location in 24 CFR part 5. This rule does not 
consolidate or revise the noncitizens requirements for HUD's Indian 
Housing programs.

EFFECTIVE DATE: April 26, 1996.

FOR FURTHER INFORMATION CONTACT: For the covered programs, the 
following persons should be contacted:
    (1) For Public Housing, Section 8 Rental Certificate, Rental 
Voucher, and Moderate Rehabilitation (except Single Room Occupancy--
``SRO'') programs--Linda Campbell, 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--Deborah Lalancette, Office of 
Native American Programs, Department of Housing and Urban Development, 
451 Seventh Street, SW., Washington, DC 20410-5000, telephone (202) 
755-0088;
    (3) For the Section 8 Moderate Rehabilitation SRO program--Dave 
Pollack, 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, 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 or speech impairment, the TTY number is 1-
800-877-8339 (Federal Information Relay Service TTY). With the 
exception of the ``800'' number, none of the foregoing telephone 
numbers are toll-free.

SUPPLEMENTARY INFORMATION:

I. Background

A. The March 20, 1995 Final Rule

    On March 20, 1995 (60 FR 14816), HUD issued its final rule 
implementing Section 214 of the Housing and Community Development Act 
of 1980, as amended (42 U.S.C. 1436a). Section 214 prohibits HUD from 
making financial assistance available to persons other than United 
States citizens, nationals, or certain categories of eligible 
noncitizens in HUD's: (1) Public Housing and Indian Housing programs 
(including homeownership); (2) the Section 8 housing assistance 
payments programs; (3) the Housing Development Grants program; (4) the 
Section 236 interest reduction and rental assistance programs; (5) the 
Rent Supplement program; and (6) the Section 235 homeownership program.

B. Regulatory Reform

    President Clinton's Regulatory Reform Initiative calls for 
immediate, comprehensive regulatory reform. The President has 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, 
unnecessary, or obsolete regulatory requirements, and the modification 
of others to increase flexibility and reduce burden.
    On February 9, 1996 (61 FR 5198), HUD, as part of its continuing 
regulatory reform efforts, 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 in 
part 5 of requirements applicable to one or more programs will 
eliminate redundancy in title 24 and assist in HUD's overall efforts to 
streamline the content of its regulations.
    HUD's March 20, 1995 final rule implementing Section 214, which 
became effective on June 19, 1995, promulgated virtually identical 
noncitizen regulations for the HUD programs covered by Section 214. 
Subpart G of part 200, subpart B of part 812, and subpart B of part 
912, contain, with minor exceptions, the same noncitizen requirements. 
This final rule eliminates the repetitiveness of these duplicative 
regulations by consolidating the noncitizens requirements and 
relocating them to a single location in 24 CFR part 5. This rule does 
not consolidate the noncitizens requirements for HUD's Indian Housing 
programs. These provisions will continue to be located in 24 CFR part 
950, which sets forth the consolidated regulatory requirements for the 
Indian Housing programs.
    Although HUD is consolidating its noncitizen requirements, it is 
not revising the requirements nor is it modifying any differences in 
the requirements among the program regulations. This final rule 
eliminates redundancy in the existing noncitizen requirements wherever 
possible, but it retains those provisions which are specific to certain 
of the Section 214 covered programs.

C. Technical Corrections/Clarifying Changes

    Additionally, although HUD is not making substantive changes, it is 
making certain clarifying changes. These changes are as follows. First, 
this streamlining rule clarifies that a noncitizen student alien's 
family may be eligible for assistance if the family meets the 
conditions for prorated assistance for mixed families. Second, this 
rule removes from the text of the regulation those INS documents that 
are required to show proof of immigration status. Because INS may 
change these documents from time to time, notification of the documents 
that are required to show proof of immigration status is best 
accomplished through notice in the Federal Register. The INS uses the 
Federal Register frequently to list appropriate documents for various 
immigration categories. Third, the rule also provides increased 
flexibility on when verification of immigration status

[[Page 13615]]
is to occur for public housing projects. Fourth, the rule clarifies 
that for tenants receiving assistance under the Section 8 Moderate 
Rehabilitation assistance, Section 8 tenant-based assistance, and the 
Section 8 project-based certificate assistance programs, that the 
applicable hearing procedures are found in parts 882, 982, and 983, 
respectively. Section 812.9(f)(3) of the March 20, 1995 rule 
incorrectly referred to the procedures in part 966, which are the 
public housing hearing procedures. This rule does not revise the 
noncitizens requirements for HUD's Indian Housing programs in 24 CFR 
part 950.
    Additionally, this rule makes one technical change unrelated to the 
noncitizens requirements. On February 13, 1996, HUD published a final 
rule which consolidated HUD's general requirements for assistance under 
the United States Housing Act of 1937 in a new subpart D of part 5. 
This final rule amends paragraph (c)(2) of Sec. 5.405 to add the phrase 
``as determined by the HA subsidy standard.'' The addition of this 
phrase will clarify how the limitations on housing assistance for 
single persons is applied under the tenant-based assistance programs.
    With regard to more substantive changes to HUD's noncitizens 
regulations, HUD is aware that some housing providers desire certain 
changes be made to the noncitizen requirements set forth in the March 
20, 1995 rule. In some cases, the types of changes requested cannot be 
made because the changes would affect statutory requirements not 
regulatory ones. Other changes which could possibly be made are not 
those that can be addressed by this streamlining final rule, but 
rather, would need to be addressed through rulemaking that provides for 
advance notice and public comment. Because the March 20, 1995 final 
rule became effective June 19, 1995, implementation of Section 214 
remains fairly recent. HUD is monitoring implementation of Section 214 
and will consider making changes to the regulations (to the extent that 
HUD can give the statutory requirements) after opportunity to review 
the results of the procedures provided in the March 20, 1995 rule.

D. New Immigration Legislation and Changes to Noncitizen Requirements

    HUD is also aware of several immigration bills that have been 
proposed by House and Senate committees that would possibly amend 
Section 214. As of the date of publication of this rule, no changes 
have been made to Section 214. If and when changes are made to Section 
214 that may require changes to the regulations issued on March 20, 
1995, HUD will undertake whatever regulatory action may be required in 
accordance with any new immigration legislation or by the 
Administrative Procedures Act.

E. Nondiscrimination in the Implementation of Section 214

    HUD reiterates the statement made in the March 20, 1995 final rule 
that all regulatory procedures involved in implementation of Section 
214 must be administered in the uniform manner prescribed without 
regard to race, national origin, or personal characteristics (e.g., 
accent, language spoken, or familial association with a noncitizen).

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 noncitizen requirements in 24 CFR part 5. 
Where consolidation is not possible, this rule retains those provisions 
which are applicable to several, but not all, Section 214 covered 
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

    Environmental Review. 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 214 of the Housing and Community Development Act 
of 1980. 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, Room 10276, Department of Housing and 
Urban Development, 451 Seventh Street, SW., Washington, DC 20410.
    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. This rule is limited to consolidating and streamlining 
existing regulations.
    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. Specifically, 
this final rule merely consolidates HUD's noncitizen requirements which 
are currently repeated throughout title 24 of the Code of Federal 
Regulations.
    Executive Order on The Family. The General Counsel, as the 
Designated Official under Executive Order 12606, The Family, has 
determined that this rule does not have potential significant impact on 
family formation, maintenance, and general well-being. This final rule 
merely consolidates HUD's noncitizen requirements which are currently 
repeated throughout title 24 of the Code of Federal Regulations.

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 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.

[[Page 13616]]


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 882

    Grant programs--housing and community development, Homeless, Lead 
poisoning, Manufactured homes, 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 904

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

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.

24 CFR Part 982

    Grant programs--housing and community development, Housing, Rent 
subsidies, Reporting and recordkeeping requirements.
    Accordingly, under the authority of 42 U.S.C. 3535(d), parts 5, 
200, 236, 247, 812, 882, 887, 904, 912, 960, and 982 of title 24 of the 
Code of Federal Regulations, 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. 101r-1; 42 U.S.C. 1436a, 3535(d), 3543, and 
3544.

    2. Section 5.405 is amended by revising paragraph (c)(2) to read as 
follows:


Sec. 5.405  Basic eligibility; preference over single persons; and 
housing assistance limitation for single persons.

* * * * *
    (c) * * *
    (2) For tenant-based assistance, housing assistance for which the 
family unit size as determined by the HA subsidy standard exceeds the 
one bedroom level.
* * * * *
    3. A new subpart E is added to read as follows:

Subpart E--Restrictions on Assistance to Noncitizens

Sec.
5.500  Applicability.
5.502  Requirements concerning documents.
5.504  Definitions.
5.506  General provisions.
5.508  Submission of evidence of citizenship or eligible immigration 
status.
5.510  Documents of eligible immigration status.
5.512  Verification of eligible immigration status.
5.514  Delay, denial, reduction or termination of assistance.
5.516  Availability of preservation assistance to mixed families and 
other families.
5.518  Types of preservation assistance to mixed families and other 
families.
5.520  Proration of assistance.
5.522  Prohibition of assistance to noncitizen students.
5.524  Compliance with nondiscrimination requirements.
5.526  Protection from liability for responsible entities and State, 
and local government agencies and officials.
5.528  Liability of ineligible tenants for reimbursement of 
benefits.

Subpart E--Restrictions on Assistance to Noncitizens


Sec. 5.500  Applicability.

    (a) Covered programs/assistance. This subpart E implements Section 
214 of the Housing and Community Development Act of 1980, as amended 
(42 U.S.C. 1436a). Section 214 prohibits HUD from making financial 
assistance available to persons who are not in eligible status with 
respect to citizenship or noncitizen immigration status. This subpart E 
is applicable to financial assistance provided under:
    (1) Section 235 of the National Housing Act (12 U.S.C. 1715z) (the 
Section 235 Program);
    (2) Section 236 of the National Housing Act (12 U.S.C. 1715z-1) 
(tenants paying below market rent only) (the Section 236 Program);
    (3) Section 101 of the Housing and Urban Development Act of 1965 
(12 U.S.C. 1701s) (the Rent Supplement Program); and
    (4) The United States Housing Act of 1937 (42 U.S. C. 1437 et seq.) 
which covers:
    (i) HUD's Public Housing Programs;
    (ii) The Section 8 Housing Assistance Programs; and
    (iii) The Housing Development Grant Programs (with respect to low 
income units only).
    (b) Covered individuals and entities. (1) Covered individuals/
persons and families. The provisions of this subpart E apply to both 
applicants for assistance and persons already receiving assistance 
covered under this subpart E.
    (2) Covered entities. The provisions of this subpart E apply to 
Public Housing Agencies (PHAs), project (or housing) owners, and 
mortgagees under the Section 235 Program. The term ``responsible 
entity'' is used in this subpart E to refer collectively to these 
entities, and is further defined in Sec. 5.504.


Sec. 5.502  Requirements concerning documents.

    For any notice or document (decision, declaration, consent form, 
etc.) that this subpart E requires the responsible entity to provide to 
an individual, or requires the responsible entity to obtain the 
signature of an 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. 5.504  Definitions.

    (a) The definitions ``1937 Act'', ``HUD'', ``Public Housing Agency 
(PHA)'', and ``Section 8'' are defined in subpart A of this part.
    (b) As used in this subpart E:
    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 status means the documents 
which must be submitted to evidence citizenship or eligible immigration 
status. (See Sec. 5.508(b).)
    Family has the same meaning as provided in the program regulations 
of the relevant Section 214 covered program.
    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.
    Housing covered programs means the following programs administered 
by the Assistant Secretary for Housing:

[[Page 13617]]

    (1) Section 235 of the National Housing Act (12 U.S.C. 1715z) (the 
Section 235 Program);
    (2) Section 236 of the National Housing Act (12 U.S.C. 1715z-1) 
(tenants paying below market rent only) (the Section 236 Program); and
    (3) Section 101 of the Housing and Urban Development Act of 1965 
(12 U.S.C. 1701s) (the Rent Supplement Program).
    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 national of 
the United States.
    Project owner means the person or entity that owns the housing 
project containing the assisted dwelling unit.
    Public Housing covered programs means the public housing programs 
administered by the Assistant Secretary for Public and Indian Housing 
under title I of the 1937 Act. This definition does not encompass HUD's 
Indian Housing programs administered under title II of the 1937 Act. 
Further, this term does not include those programs providing assistance 
under section 8 of the 1937 Act. (See definition of ``Section 8 Covered 
Programs'' in this section.)
    Responsible entity means the person or entity responsible for 
administering the restrictions on providing assistance to noncitizens 
with ineligible immigrations status. The entity responsible for 
administering the restrictions on providing assistance to noncitizens 
with ineligible immigration status under the various covered programs 
is as follows:
    (1) For the Section 235 Program, the mortgagee.
    (2) For Public Housing, the Section 8 Rental Certificate, the 
Section 8 Rental Voucher, and the Section 8 Moderate Rehabilitation 
programs, the PHA administering the program under an ACC with HUD.
    (3) For all other Section 8 programs, the Section 236 Program, and 
the Rent Supplement Program, the owner.
    Section 8 covered programs means all HUD programs which assist 
housing under Section 8 of the 1937 Act, including Section 8-assisted 
housing for which loans are made under section 202 of the Housing Act 
of 1959.
    Section 214 means section 214 of the Housing and Community 
Development Act of 1980, as amended (42 U.S.C. 1436a).
    Section 214 covered programs is the collective term for the HUD 
programs to which the restrictions imposed by Section 214 apply. These 
programs are set forth in Sec. 5.500.
    Tenant means an individual or a family renting or occupying an 
assisted dwelling unit. For purposes of this subpart E, the term tenant 
will also be used to include a homebuyer, where appropriate.


Sec. 5.506  General provisions.

    (a) Restrictions on assistance. Financial assistance under a 
Section 214 covered program is restricted to:
    (1) Citizens; or
    (2) Noncitizens who have eligible immigration status under one of 
the categories set forth in Section 214 (see 42 U.S.C. 1436a(a)).
    (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, or unless the family meets the 
conditions set forth in paragraph (b)(2) 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 Secs. 5.516 and 5.518. 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 
Secs. 5.516 and 5.518.


Sec. 5.508  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 Secs. 5.516 and 5.518 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) One of the INS documents referred to in Sec. 5.510; and
    (iii) A signed verification consent 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 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.
    (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) For Housing covered programs: 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 (except certain noncitizens who 
are 62 years of age or older as described in paragraph (b)(2) of this 
section) 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 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

[[Page 13618]]
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 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. 5.516 and 5.518, or Sec. 5.520, 
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 in writing 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 status as 
provided by paragraph (e) of this section, shall be 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 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) Notice to tenants. The notification described in paragraph 
(f)(1) of this section shall be given to each tenant at the time of, 
and together with, the responsible entity's notice of regular 
reexamination of 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 and any additional requirements imposed under 
the Section 235 Program.
    (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. 5.514 concerning INS appeal, and 
informal hearing process) 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 Secs. 5.516 and 5.518.
    (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, responsible entities 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. 5.512(a)).
    (2) Tenants. For tenants, evidence of eligible status is required 
to be submitted as follows:
    (i) For financial assistance under a Section 214 covered program, 
with the exception of Section 235 assistance payments, the required 
evidence shall be submitted at the first regular reexamination after 
June 19, 1995, in accordance with program requirements.
    (ii) For financial assistance in the form of Section 235 assistance 
payments, the mortgagor shall submit the required evidence in 
accordance with requirements imposed under the Section 235 Program.
    (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 Section 214 covered program, 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 responsible entity for a Section 214 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 Section 214 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. 5.508(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 
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 individual 
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 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 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. 5.514, 5.516, and 5.518.
    (ii) [Reserved]


Sec. 5.510  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.

[[Page 13619]]

    (b) Acceptable evidence of eligible immigration status. Acceptable 
evidence of eligible immigration status shall be the original of a 
document designated by INS as acceptable evidence of immigration status 
for the specific immigration status claimed by the individual.


Sec. 5.512  Verification of eligible immigration status.

    (a) When verification is to occur. The responsible entity is 
encouraged to commence verification of immigration status at a date 
that the responsible entity believes will allow for verification of 
immigration status, including any appeals or informal hearings, to be 
completed by the time that verification of other aspects of eligibility 
for assistance under a Section 214 covered program will be completed. 
In no case may verification of immigration status occur later than the 
date the responsible entity commences verification of other aspects of 
eligibility for assistance under a Section 214 covered program. 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 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 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 required for the 
immigration status declared (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. 5.514(d), which includes 
notification of the right to appeal to the INS of the INS finding on 
immigration status (see Sec. 5.514(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. 5.514  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 
member 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 or 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 
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. 5.514(e) has not been 
concluded;
    (v) For a tenant, the informal hearing process under Sec. 5.514(f) 
has not been concluded;
    (vi) Assistance is prorated in accordance with Sec. 5.520;
    (vii) Assistance for a mixed family is continued in accordance with 
Secs. 5.516 and 5.518; or
    (viii) Deferral of termination of assistance is granted in 
accordance with Secs. 5.516 and 5.518.
    (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 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. 5.508(g) or by the expiration of any extension granted in 
accordance with Sec. 5.508; or
    (ii) Evidence of citizenship and eligible immigration status is 
timely submitted, but INS primary and secondary 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. 5.520;
    (3) In the case of a tenant, the criteria and procedures for 
obtaining relief under the provisions for preservation of families in 
Secs. 5.514 and 5.518;
    (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 informal hearing 
process.
    (e) Appeal to the INS. (1) Submission of request for appeal. Upon 
receipt of

[[Page 13620]]
notification by the responsible entity that INS secondary verification 
failed to confirm eligible immigration status, the responsible entity 
shall notify the family 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 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 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 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, 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 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) Tenants assisted under a 
Section 8 covered program: For tenants assisted under a Section 8 
covered program, the procedures for the hearing before the responsible 
entity are set forth in:
    (A) For Section 8 Moderate Rehabilitation assistance: 24 CFR part 
882;
    (B) For Section 8 tenant-based assistance: 24 CFR part 982; or
    (C) For Section 8 project-based certificate program: 24 CFR part 
983.
    (ii) Tenants assisted under any other Section 8 covered program or 
a Public Housing covered program: For tenants assisted under a Section 
8 covered program not listed in paragraph (f)(3)(i) of this section or 
a Public Housing covered program, the procedures for the hearing before 
the responsible entity are set forth in 24 CFR part 966.
    (iii) Families under Housing covered programs and applicants for 
assistance under all covered programs. For all families under Housing 
covered programs (applicants as well as tenants already receiving 
assistance) and for applicants for assistance under all covered 
programs, the procedures for the informal hearing before the 
responsible entity are as follows:
    (A) Hearing before an impartial individual. The family 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 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 documents in the 
possession of the responsible entity 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;
    (C) 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;
    (D) Controverting evidence of the responsible entity. The family 
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 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;
    (F) Interpretive services. The family shall be entitled to arrange 
for an interpreter to attend the hearing, at the expense of the family, 
or responsible entity, as may be agreed upon by the two parties to the 
proceeding; and
    (G) 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 responsible entity).
    (4) 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 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 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 reexamination;
    (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) Under Housing covered 
programs,

[[Page 13621]]
and in the Section 8 covered programs other than the Section 8 Rental 
Certificate, Rental Voucher, and Moderate Rehabilitation programs, 
assisted occupancy is terminated by:
    (i) If permitted under the lease, the responsible entity 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.
    (ii) The responsible entity and tenant entering into a new lease 
without financial assistance.
    (iii) The responsible entity evicting the tenant. While the tenant 
continues in occupancy of the unit, the responsible entity 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 responsible entity to terminate the tenancy and to evict 
the tenant must be in accordance with applicable HUD 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 Rental Certificate, Rental Voucher, and 
Moderate Rehabilitation programs, assisted occupancy is terminated by 
terminating assistance payments. (See provisions of this section 
concerning termination of assistance.) The PHA shall not make any 
additional assistance payments to the owner after the required 
procedures specified in this section have been completed. In addition, 
the PHA 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. 5.516  Availability of preservation assistance to mixed families 
and other families.

    (a) Assistance available for tenant mixed families. (1) General. 
Preservation assistance is available to tenant mixed families, 
following completion of the appeals and informal hearing procedures 
provided in Sec. 5.514. There are three types of preservation 
assistance:
    (i) Continued assistance (see paragraph (a) of Sec. 5.518);
    (ii) Temporary deferral of termination of assistance (see paragraph 
(b) of Sec. 5.518); or
    (iii) Prorated assistance (see Sec. 5.520, a mixed family must be 
provided prorated assistance if the family so requests).
    (2) Availability of assistance. (i) For Housing covered programs: 
One of the three types of assistance described is available to tenant 
mixed families assisted under a National Housing Act or 1965 HUD Act 
covered program, depending upon the family's eligibility for such 
assistance. Continued assistance must be provided to a mixed family 
that meets the conditions for eligibility for continued assistance.
    (ii) For Section 8 or Public Housing covered programs. One of the 
three types of assistance described may be available to tenant mixed 
families assisted under a Section 8 or Public Housing covered program.
    (b) Assistance available for applicant mixed families. Prorated 
assistance is also available for mixed families applying for assistance 
as provided in Sec. 5.520.
    (c) Assistance available to other families in occupancy. Assistance 
may be available to families receiving assistance under a Section 214 
covered program on June 19, 1995, and who have no members with eligible 
immigration status, as set forth in paragraphs (c)(1) and (c)(2) of 
this section.
    (1) For Housing covered programs: Temporary deferral of termination 
of assistance is available to families assisted under a Housing covered 
program.
    (2) For Section 8 or Public Housing covered programs: The 
responsible entity may make temporary deferral of termination of 
assistance to families assisted under a Section 8 or Public Housing 
covered program.
    (d) Section 8 covered programs: Discretion afforded to provide 
certain family preservation assistance. (1) Project owners. With 
respect to assistance under a Section 8 Act covered program 
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 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 to a 
family. However, project owners and PHAs must offer prorated assistance 
to eligible mixed families.
    (2) PHAs. The PHA, 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 PHA 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 PHA must incorporate the statutory 
criteria, which are set forth in paragraphs (a) and (b) of Sec. 5.518. 
However, the PHA must offer prorated assistance to eligible families.


Sec. 5.518  Types of preservation assistance available to mixed 
families and other families.

    (a) Continued assistance. A mixed family may receive continued 
housing assistance if all of the following conditions are met (a mixed 
family assisted under a Housing covered program must be provided 
continued assistance if the family meets the following conditions):
    (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. 5.506; 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.
    (b) 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) Housing covered programs: Conditions for granting temporary 
deferral of termination of assistance. The responsible entity shall 
grant a

[[Page 13622]]
temporary deferral of termination of assistance to a mixed family if 
the family is assisted under a Housing covered program and 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 
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 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.
    (5) Determination of availability of affordable housing at end of 
each deferral period. (i) Before the end of each deferral period, the 
responsible entity must satisfy the applicable requirements of either 
paragraph (b)(5)(i) (A) or (B) of this section. Specifically, the 
responsible entity must:
    (A) For Housing covered programs: Make a determination that one of 
the three conditions specified in paragraph (b)(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), the owner's 
knowledge and the tenant's evidence indicate that other affordable 
housing is available; or
    (B) For Section 8 or Public Housing covered programs: 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.
    (ii) The responsible entity must also:
    (A) 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
    (B) 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.
    (c) 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 responsible entity 
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.
    (d) Notification of decision on family preservation assistance. A 
responsible entity shall notify the family of its decision concerning 
the family's qualification for family preservation assistance. If the 
family is ineligible for family preservation assistance, 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. 5.520  Proration of assistance.

    (a) Applicability. This section applies to a mixed family other 
than a family receiving continued assistance, or other than a family 
who is eligible for and requests and receives temporary deferral of 
termination of assistance. An eligible mixed family who requests 
prorated assistance must be provided prorated assistance.
    (b) Method of prorating assistance for Housing covered programs. 
(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.
    (c) Method of prorating assistance for Section 8 covered programs. 
(1) Section 8 assistance other than Section 8 rental

[[Page 13623]]
voucher assistance. For Section 8 assistance other than assistance 
provided under the Section 8 Rental Voucher Program, the PHA 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 paragraph (c)(1)(ii), 
(Step 2), from amount determined in paragraph (c)(1)(i), (Step 1).
    (iv) Step 4. Multiply the amount determined in paragraph 
(c)(1)(iii), (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 paragraph 
(c)(1)(iv), (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 Rental Voucher assistance. For assistance under the 
Section 8 Rental Voucher Program, the PHA 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 part 887. (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 paragraph (c)(2)(i), 
(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 
paragraph (c)(2)(ii), (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.
    (d) Method of prorating assistance for Public Housing covered 
programs. 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 
PHA. (This ``maximum rent'' shall be determined by HUD using the 95th 
percentile rent for the PHA.) 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 
family members who have citizenship or eligible immigration status 
(``eligible family members'').
    (5) Step 5. The product of steps 1 through 4, as set forth in 
paragraph (d)(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. 5.522  Prohibition of assistance to noncitizen students.

    (a) General. The provisions of Secs. 5.516 and 5.518 permitting 
continued 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 in paragraph (c)(2)(A) of Section 214 (42 
U.S.C. 1436a(c)(2)(A)). The family of a noncitizen student may be 
eligible for prorated assistance, as provided in paragraph (b)(2) of 
this section.
    (b) Family of noncitizen students. (1) The prohibition on providing 
assistance to a noncitizen student as described in paragraph (a) of 
this section extends to the noncitizen spouse of the noncitizen student 
and minor children accompanying the student or following to join the 
student.
    (2) 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. 5.524  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 all applicable 
nondiscrimination and equal opportunity requirements, 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.


Sec. 5.526  Protection from liability for responsible entities and 
State and local government agencies and officials.

    (a) Protection from liability for responsible entities. Responsible 
entities are protected from liability as set forth in paragraph (e) of 
section 214.
    (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. 5.512 and the informal hearings 
provided under Sec. 5.514, as long as the implementation by the State 
and local government agency or official is in accordance with 
prescribed HUD rules and requirements.


Sec. 5.528  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, the ineligible tenant 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 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 200--INTRODUCTION

    4. The authority citation for 24 CFR part 200 is revised to read as 
follows:

    Authority: 12 U.S.C. 1701-1715z-18; 42 U.S.C. 3535(d).
    
[[Page 13624]]


Subpart G--[Removed and Reserved]

    5. Subpart G, consisting of Secs. 200.180 through 200.192, is 
removed and reserved.

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

    6. 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).

    7. Section 235.1 is revised to read as follows:


Sec. 235.1  Applicability of regulations.

    The regulations regarding eligibility requirements (including 
eligibility requirements for noncitizens) for homes for lower income 
families in force before December 8, 1995, will continue to govern the 
rights and obligations of mortgagors, mortgagees, and the Department of 
Housing and Urban Development with respect to loans insured under 
section 235(i) of the National Housing Act.
    8. Section 235.375 is amended by revising paragraph (b)(6) 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 5:
    (i) For a new member of the family, except with respect to a 
mortgagor described under Sec. 235.1.
    (ii) At the first recertification of an assistance contract, except 
with respect to a mortgagor described under Sec. 235.1; or
    (iii) Upon modification of an existing assistance contract.
* * * * *

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

    9. 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).

    10. Section 236.2 is amended by revising paragraph (3) of the 
definition of ``Qualified Tenant'' 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 5.
* * * * *
    11. 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 restrictions on assistance to noncitizens set forth 
in 24 CFR part 5 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.
* * * * *
    12. Section 236.80 is amended by revising:
    a. The two sentences at the end of paragraph (a);
    b. The last sentence of paragraph (b); and
    c. The last two 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 5, 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 5 
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 5 concerning obtaining and processing information on the 
citizenship or eligible immigration status of the new family member.
    (c) * * * When termination is based upon a determination that the 
tenant does not have eligible immigration status, the procedures of 24 
CFR part 5 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.
    13. Section 236.710 is amended by revising the sentence at the end 
of the 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 5.
    14. Section 236.715 is amended by revising the sentence at the end 
of paragraph (a) to read as follows:


Sec. 236.715  Determination of eligibility.

    (a) * * * The requirements of 24 CFR part 5 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.
* * * * *
    15. Section 236.765 is revised 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 5.
    (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 5.

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

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

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

    17. Section 247.3 is amended by revising paragraph (c)(3), to read 
as follows:


Sec. 247.3  Entitlement of tenants to occupancy.

* * * * *
    (c) * * *
    (3) If the tenant:
    (i) Fails to supply on time all required information on the income 
and composition, or eligibility factors, of the tenant household, as 
provided in 24 CFR part 5; or
    (ii) Knowingly provides incomplete or inaccurate information as 
required under these provisions; and
* * * * *

[[Page 13625]]


PART 812--[REMOVED]

    18-19. Part 812 is removed.

PART 882--SECTION 8 CERTIFICATE AND MODERATE REHABILITATION 
PROGRAMS

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

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

    21. 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 5), submission of Social Security 
Numbers and verifying documentation (as provided by 24 CFR part 5), 
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 5), and submissions required for an annual or 
interim reexamination of family income and composition.
* * * * *
    22. Section 882.212 is amended by revising the two sentences at the 
end of paragraph (a), and the 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 5 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 5 
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 5, subpart E 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 24 CFR parts 
5 and 982 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.
* * * * *
    23. Section 882.514 is amended by revising the sentence at the end 
of paragraph (f) 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 part 5.
* * * * *
    24. Section 882.515 is amended by revising the two sentences at the 
end of paragraph (a), and by revising the 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 5 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 5 
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 5 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 24 CFR parts 5 and 982 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.
    25. Section 882.808 is amended by revising the two sentences at the 
end of paragraph (i)(1), the sentence at the end of paragraph (i)(2), 
and the 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 5 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 5 
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 5 concerning obtaining and processing evidence of 
citizenship or eligible immigration status of the new family member.
* * * * *
    (l) * * * 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 24 CFR parts 5 and 982 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 887--HOUSING VOUCHERS

    26. The authority citation for part 887 continues to read as 
follows:

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

    27. Section 887.355 is amended by revising paragraph (b) 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 5 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 5 concerning verification 
of the immigration status of any new family member.
* * * * *
    28. Section 887.357 is amended by revising the sentence at the end 
of the section to read as follows:

[[Page 13626]]



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 5 concerning obtaining and processing 
evidence of citizenship or eligible immigration status of the new 
family member.

PART 904--LOW RENT HOUSING HOMEOWNERSHIP OPPORTUNITIES

    29. The authority citation for part 904 continues to read as 
follows:

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

    30. Section 904.104 is amended by revising the first sentence of 
paragraph (b)(1) and the first sentence of paragraph (g)(2)(iii), 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 5 and 913, 
which prescribe income definitions, income limits, and restrictions 
concerning citizenship or eligible immigration status. * * *
* * * * *
    (g) * * *
    (2) * * *
    (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 part 5.
* * * * *
    31. 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 5 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 5 for determining citizenship or eligible immigration 
status before initial occupancy. Thereafter, for the purposes stated in 
this paragraph 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 5. 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 5 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 
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 
5; the failure to meet the disclosure and verification requirements for 
Social Security Numbers, as provided by 24 CFR part 5; 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 5), 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 5, the requirements of 24 
CFR parts 5 and 966 shall apply.
* * * * *

PART 912--[REMOVED]

    32-33. Part 912 is removed.

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

    34. The authority citation for part 960 continues to read as 
follows:

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

    35. Section 960.204 is amended by revising paragraph (a) to read as 
follows:


Sec. 960.204  Tenant selection policies.

    (a) Selection policies. (1) The PHA shall establish and adopt 
written policies for admission of tenants.
    (2) These policies shall be designed:
    (i) To attain, to the maximum extent feasible, a tenant body in 
each project that is composed of families with a broad range of incomes 
and to avoid concentrations of the most economically deprived families 
with serious social problems;
    (ii) To preclude admission of applicants whose habits and practices 
reasonably may be expected to have a detrimental effect on the 
residents or the project environment;
    (iii) To give a preference in selection of tenants to applicants 
who qualify for a federal preference, ranking preference, or local 
preference, in accordance with 24 CFR part 5; and
    (iv) To establish objective and reasonable policies for selection 
by the PHA among otherwise eligible applicants.
    (3) The PHA tenant selection policies shall include the following:
    (i) Requirements for applications and waiting lists (see 24 CFR 
1.4);
    (ii) Description of the policies for selection of applicants from 
the waiting list that includes the following:
    (A) How the ``federal preferences'' (described in 24 CFR part 5) 
will be used;
    (B) How any ``ranking preferences'' (described in 24 CFR part 5) 
will be used;
    (C) How any ``local preferences'' (described in 24 CFR part 5) will 
be used; and
    (D) How any residency preference will be used;
    (iii) Policies 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 5; and
    (iv) Policies for participant transfer between units, projects, and 
programs. For example, a PHA could adopt a criterion for voluntary 
transfer that the tenant had met all obligations under the current 
program, including payment of charges to the PHA.
* * * * *

[[Page 13627]]

    36. Section 960.206 is amended by revising paragraph (a) 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 24 CFR parts 5 
and 913.) Information relative to the acceptance or rejection of an 
applicant or the grant or denial of a ranking preference, or a local 
preference under 24 CFR part 5 must be documented and placed in the 
applicant's file.
* * * * *
    37. Section 960.209 is amended by revising the two sentences at the 
end of paragraph (a), revising the sentence at the end of paragraph 
(b), and by revising 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 5 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 5 
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 5 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 part 5 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.

PART 982--SECTION 8 TENANT-BASED ASSISTANCE: UNIFIED RULE FOR 
TENANT-BASED ASSISTANCE UNDER THE SECTION 8 RENTAL CERTIFICATE 
PROGRAM AND THE SECTION 8 RENTAL VOUCHER PROGRAM

    38. The authority citation for part 982 continues to read as 
follows:

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

    39. Section 982.153 is amended by revising paragraph (b)(9) to read 
as follows:


Sec. 982.153  HA responsibilities.

* * * * *
    (b) * * *
    (9) Obtain and verify evidence of citizenship and eligible 
immigration status in accordance with 24 CFR part 5.
* * * * *
    39a. Section 982.201 is amended by revising the second sentence in 
paragraph (a) to read as follows:


Sec. 982.201  Eligibility.

    (a) * * * To be eligible, the applicant must be a ``family'', must 
be income-eligible, and must be a citizen or a noncitizen who has 
eligible immigration status as determined in accordance with 24 CFR 
part 5.
* * * * *
    40. Section 982.551 is amended by revising paragraph (b)(1) to read 
as follows:


Sec. 982.551  Obligations of participant.

* * * * *
    (b) * * *
    (1) The family must supply any information that the HA or HUD 
determines is necessary in the administration of the program, including 
submission of required evidence of citizenship or eligible immigration 
status (as provided by 24 CFR part 5). ``Information'' includes any 
requested certification, release or other documentation.
* * * * *
    41. Section 982.552 is amended by revising paragraph (e) to read as 
follows:


Sec. 982.552  HA denial or termination of assistance for family.

* * * * *
    (e) Restrictions on assistance to noncitizens. The family must 
submit required evidence of citizenship or eligible immigration status. 
See 24 CFR part 5 for a statement of circumstances in which the HA must 
deny or terminate assistance because a family member does not establish 
citizenship or eligible immigration status, and the applicable informal 
hearing procedures. See 24 CFR part 5 for provisions on assistance for 
mixed families (families whose members include those with eligible 
immigration status, and those without eligible immigration status) 
instead of denial or termination of assistance, and for provisions on 
deferral of termination of assistance.
* * * * *
    42. Section 982.554 is amended by revising paragraph (d) to read as 
follows:


Sec. 982.554  Informal review for applicant.

* * * * *
    (d) Restrictions on assistance for noncitizens. The informal 
hearing provisions for the denial of assistance on the basis of 
ineligible immigration status are contained in 24 CFR part 5.
    43. Section 982.555 is amended by revising paragraph (g) to read as 
follows:


Sec. 982.555  Informal hearing for participant.

* * * * *
    (g) Restrictions on assistance to noncitizens. The informal hearing 
provisions for the denial of assistance on the basis of ineligible 
immigration status are contained in 24 CFR part 5.

    Dated: March 12, 1996.
Henry G. Cisneros,
Secretary.
[FR Doc. 96-7188 Filed 3-26-96; 8:45 am]
BILLING CODE 4210-32-P