[Federal Register Volume 64, Number 116 (Thursday, June 17, 1999)]
[Proposed Rules]
[Pages 32782-32786]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15430]



[[Page 32781]]

_______________________________________________________________________

Part XI





Department of Housing and Urban Development





_______________________________________________________________________



24 CFR Part 245



Tenant Participation in Multifamily Housing Projects; Proposed Rule

  Federal Register / Vol. 64, No. 116 / Thursday, June 17, 1999 / 
Proposed Rules  

[[Page 32782]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 245

[Docket No. FR-4403-P-01]
RIN 2502-AH32


Tenant Participation in Multifamily Housing Projects

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, HUD.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would amend HUD's regulations for tenant 
participation in multifamily housing projects. Specifically, the 
proposed rule would expand the number of categories of multifamily 
housing projects in which tenants have the right to establish and 
operate tenant organizations. The proposed rule would clarify the 
reasonable activities that the owner of a multifamily housing project, 
covered under this proposed rule, must allow tenants and tenant 
organizers to engage in while organizing their co-tenants and operating 
a tenant organization. The proposed rule would also clarify the 
requirements for establishing and operating a tenant organization.

DATES: Comments Due Date: August 16, 1999.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposed rule to the Rules Docket Clerk, Office of the General 
Counsel, Room 10276, U.S. Department of Housing and Urban Development, 
451 Seventh Street, SW, Washington, DC 20410-0500. Comments should 
refer to the above docket number and title. A copy of each comment 
submitted will be available for public inspection and copying between 
7:30 a.m. and 5:30 p.m. weekdays at the above address. Facsimile (FAX) 
comments will not be accepted.

FOR FURTHER INFORMATION CONTACT: Willie Spearmon, Director, Office of 
Business Products, Multifamily Housing Programs, U.S. Department of 
Housing and Urban Development, 451 Seventh Street, SW, Washington, DC 
20410-8000; telephone (202) 708-3000 (this is not a toll-free number). 
Hearing- or speech-impaired individuals may access this number via TTY 
by calling the toll-free Federal Information Relay Service at (800) 
877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

a. Tenant Participation in Multifamily Housing Projects

    HUD supports the active involvement of tenants in creating and 
maintaining a suitable living environment and in contributing to the 
successful operation of their multifamily housing projects. This 
proposed rule would amend HUD's regulations at 24 CFR part 245 
(entitled ``Tenant Participation in Multifamily Housing Projects'') to 
increase the number of categories of multifamily housing projects 
covered by part 245. The rule would also clarify the reasonable 
activities that tenants and tenant organizations may engage in and the 
requirements for establishing and operating a tenant organization. The 
amendments proposed by this rule are discussed below.

b. Increased Number of Categories of Multifamily Housing Projects 
Covered

    The statutory authority for part 245 is section 202 of the Housing 
and Community Development Amendments of 1978 (Pub. L. 95-557, 92 Stat. 
2080, 12 U.S.C. 1715z-1b) (1978 HCD Amendments Act). The coverage of 
section 202 was expanded by section 183 of the Housing and Community 
Development Act of 1987 (Pub. L. 100-242, 101 Stat. 1815) (1987 HCD 
Act). This amendment added multifamily housing projects ``eligible for 
assistance as described in * * * section 202 of the Housing Act of 
1959'' (1959 Housing Act).
    The coverage of section 202 of the 1978 HCD Amendments Act was 
expanded again in 1998 by section 599 of the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1999 (Pub. L. 105-276, 112 Stat. 2461). This 
amendment added multifamily housing projects that receive:

project-based assistance under section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f) or enhanced vouchers under the 
Low-Income Housing Preservation and Resident Homeownership Act of 
1990, the provisions of the Emergency Low Income Housing 
Preservation Act of 1987, or the Multifamily Assisted Housing Reform 
and Affordability Act of 1997.

    The proposed rule would revise Sec. 245.10 (entitled 
``Applicability of part'') to reflect these various statutory 
amendments to section 202 of the 1978 HCD Amendments Act. The proposed 
rule would make the following changes to Sec. 245.10:
    1. Paragraph (a)(2) (entitled ``Section 202 project'') would be 
removed along with the accompanying definition of ``Section 202 Loans 
for the Elderly or Handicapped BMIR Program'' from paragraph (c). These 
paragraphs limited the type of Section 202 project covered by part 245. 
They are no longer applicable because of section 183 of the 1987 HCD 
Act, which amended section 202 of the 1978 HCD Amendments Act to 
include coverage of all Section 202 projects (note: the term ``Section 
202 projects'' refers to section 202 of the 1959 Housing Act).
    2. Paragraphs (a)(4)-(a)(7) would be added. Each paragraph would 
add a new category of multifamily housing project as follows:

------------------------------------------------------------------------
                                  Would add multifamily housing projects
            Paragraph                            receiving
------------------------------------------------------------------------
(a)(4)..........................  Project-based assistance under section
                                   8 of the United States Housing Act of
                                   1937.
(a)(5)..........................  Enhanced vouchers under the Low-Income
                                   Housing Preservation and Resident
                                   Homeownership Act of 1990, the
                                   provisions of the Emergency Low
                                   Income Housing Preservation Act of
                                   1987, or the Multifamily Assisted
                                   Housing Reform and Affordability Act
                                   of 1997.
(a)(6)..........................  Section 202 Direct Loan program or the
                                   Section 202 Supportive Housing for
                                   the Elderly program.
(a)(7)..........................  Section 811 Supportive Housing for
                                   Persons with Disabilities program.
------------------------------------------------------------------------

    Section 245.10(a)(7) of this proposed rule would add Section 811 
multifamily housing projects even though these projects are not 
explicitly mentioned in section 202 of the 1978 HCD Amendments Act. As 
noted, section 183 of the 1987 HCD Act expanded the scope of section 
202 of the 1978 HCD Amendments Act to include multifamily housing 
projects described in section 202 of the 1959 Housing Act. At the time 
of the 1987 amendments, section 202 of the 1959 Housing Act included 
multifamily housing projects that are currently part of the Section 811 
program. The Section 811 program was split out of section 202 of the 
1959 Housing Act in 1990 by the Cranston-Gonzalez National Affordable 
Housing Act (Public Law 101-625, 104 Stat. 4079). HUD does not believe 
that Congress intended to narrow the coverage of section 202 of the 
1978 HCD Amendments Act to limit the ability of Section 811 residents 
to participate in tenant organization activities. HUD, therefore, is 
proposing to revise part 245 to reflect the coverage of section 202 of 
the 1959 Housing Act before its amendment in 1990.

[[Page 32783]]

c. Protected Activities

    The role of the tenant organization is, among other things, to 
increase tenant participation and awareness in creating and maintaining 
a positive living environment. In order to achieve this goal, the 
proposed rule would require that owners of multifamily housing 
projects, covered under this proposed rule, allow tenants and tenant 
organizers to conduct reasonable activities related to the 
establishment and operation of a tenant organization.
    The existing regulations preclude owners of multifamily housing 
projects from impeding the reasonable efforts of tenants to organize, 
but they are not specific with respect to what actions may constitute 
reasonable efforts. This lack of specificity, in a number of cases, has 
led to confusion. This confusion has contributed to disputes between 
owners and tenants and between owners and those attempting to organize 
tenants.
    In an attempt to avoid this confusion, the proposed rule would 
retain the current reasonableness standard while listing specific 
activities that are protected. The list of activities is not 
exhaustive, but provides specific examples that would assist tenants, 
owners, and tenant organizers to determine what constitutes a protected 
activity under the part 245 regulations. The proposed rule would still 
require that owners of multifamily housing projects allow tenants and 
tenant organizers to conduct reasonable activities related to the 
establishment and operation of a tenant organization, in addition to 
the specific activities listed in the proposed rule.
    Protected activities listed in the proposed rule include the 
distribution or posting of information regarding tenant organizations, 
initiating contact with tenants, assisting tenants to participate in 
tenant organization activities, convening regularly scheduled meetings 
on site, and formulating responses to various owner proposals such as 
rent increases, conversion from project-based paid utilities to tenant-
paid utilities, tenant utility allowance reductions, conversion of 
residential units to non-residential use, cooperative housing, or 
condominiums, and major capital additions.

d. Tenant Organizers

    Under the proposed rule, a tenant organization must consist of the 
tenants of a multifamily housing project covered under this proposed 
rule. However, tenants may have the assistance of tenant organizers who 
need not be tenants of the housing project. Where a tenant organizer is 
not a tenant of the housing project and the owner of the housing 
project has a consistently enforced policy against door-to-door 
solicitation, the tenant organizer must be accompanied by a tenant 
while conducting tenant organization related activities on the housing 
project property.
    Where the tenant organizer is not a tenant of the housing project 
and the owner of the housing project has a policy favoring 
solicitation, the non-tenant tenant organizer must likewise be afforded 
the same privileges and rights of access as other uninvited outside 
parties would have in the normal course of operations. If the owner of 
the housing project does not have a consistently enforced policy 
against solicitation, the housing project shall, for purposes of the 
tenant organizer's right to access, be treated as if it has a policy 
favoring solicitation.

e. Properly Established Tenant Organizations

    The proposed rule would require owners of multifamily housing 
projects, covered under the proposed rule, to give reasonable 
consideration to concerns raised by a properly established tenant 
organization. Further, the owner must recognize the right of tenants to 
establish or replace a tenant organization. Under the proposed rule, a 
tenant organization has been properly established, if it has been 
established by the tenants of a multifamily housing project covered 
under 24 CFR 245.10 for the purpose of addressing the terms and 
conditions of their tenancy, has adopted written procedures in 
compliance with the proposed rule, and has elected a governing board in 
compliance with the proposed rule.

f. Additional Tenant Organizations

    While HUD believes that, generally, one established tenant 
organization, elected by the tenants, presents the most effective means 
of providing a voice for tenants in relations with multifamily housing 
project owners, management agents, and HUD, HUD recognizes the fact 
that the established organization may not always adequately represent 
the concerns and opinions of all of the tenants.
    To address this issue, the proposed rule requires owners and 
management agents to recognize the rights of tenants to organize to 
replace the leadership of an existing tenant organization through 
recall elections, to establish issue-based organizations in response to 
specific tenants' issues, or to establish additional tenant 
organizations. A tenant organizer may assist tenants in organizing a 
recall election or establishing additional tenant organizations.

g. Enforcement Through Regulatory Agreements

    If an owner does not comply with the provisions of its regulatory 
agreement with HUD, HUD has the right to declare a breach of the 
agreement. Regulatory agreements for most current insured mortgages 
mandate that owners adhere to HUD management requirements. The right of 
tenants to organize is such a requirement.
    Notwithstanding this existing general enforcement authority, in 
order to provide greater clarity to owners, upon publication of a final 
rule, HUD intends to revise regulatory agreements to include the right 
of tenants to organize explicitly in the agreement itself. HUD will 
have the opportunity to revise the regulatory agreements during the 
development of new housing projects or whenever an owner seeks 
assistance or relief that requires an amendment to an existing 
regulatory agreement. For example, this might occur in a partial 
payment of claim, a bond refunding, or transfer of physical assets 
(sale of property). In addition to revising the regulatory agreements, 
HUD expects to take other appropriate actions (such as updating its 
handbooks and providing instructions to field office staff) to assist 
tenants and owners in implementing this rule.

h. Public Comments on This Proposed Rule

    In order to reach consensus on the issue of the rights of tenants 
to organize multiple tenant organizations, and in the spirit of 
partnership and cooperation, HUD invites comments on this proposed rule 
from the public, particularly representatives of housing project 
owners, management agents, tenants and tenant groups, and all other 
interested parties. HUD will consider all of the comments in the 
development of the final rule.

II. Findings and Certifications

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1531-1538) (UMRA) establishes requirements for Federal agencies to 
assess the effects of their regulatory actions on State, local, and 
tribal governments and the private sector. This proposed rule does not 
impose any Federal mandates on any State, local, or tribal governments 
or the private sector within the meaning of the UMRA.

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Environmental Impact

    In accordance with 24 CFR 50.19(c)(1) of HUD's regulations, this 
proposed rule does not direct, provide for assistance or loan and 
mortgage insurance for, or otherwise govern or regulate, real property 
acquisition, disposition, leasing, rehabilitation, alteration, 
demolition, or new construction, or establish, revise, or provide for 
standards for construction or construction materials, manufactured 
housing, or occupancy. Therefore, this proposed rule is categorically 
excluded from the requirements of the National Environmental Policy Act 
(42 U.S.C. 4321 et seq.).

Impact on Small Entities

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed and approved this rule and in so doing 
certifies that this rule would not have a significant economic impact 
on a substantial number of small entities.
    The proposed rule is exclusively concerned with the procedures 
governing tenant participation in multifamily housing projects and 
would have minimal economic impact on the owners of covered projects. 
Although the rule would require that owners permit tenants and tenant 
organizers to conduct reasonable activities related to the 
establishment or operation of tenant organizations, it would not impose 
any affirmative obligations on owners to assist tenant organizations in 
the conduct of these activities. For example, the owners of covered 
projects would not be required to contribute, economically or 
otherwise, to the preparation or distribution of leaflets and other 
informational materials developed by a tenant organization.
    The proposed rule would permit tenant organizations to develop 
responses to economic proposals made by owners, such as rent increases 
and major capital additions. While HUD encourages owners to take these 
responses into consideration, the proposed rule would not require that 
owners modify or abandon their proposals based on the recommendations 
made by the tenant organization.
    Although HUD has determined that this proposed rule would not have 
a significant economic impact on a substantial number of small 
entities, HUD welcomes comments regarding any less burdensome 
alternatives to this rule that will meet HUD's objectives as described 
in this preamble.

Federalism Impact

    The General Counsel, as the Designated Official for HUD under 
Section 6(a) of Executive Order 12612 (entitled ``Federalism''), has 
determined that this rule would not have federalism implications 
concerning the division of local, State, and Federal responsibilities. 
The rule is exclusively concerned with the procedures governing tenant 
participation in multifamily housing projects. Specifically, this 
proposed rule would expand the categories of multifamily housing 
projects in which tenants have the right to establish and operate 
tenant organizations. The proposed rule would also clarify the 
requirements for establishing and operating a tenant organization and 
the activities that owners of multifamily housing projects must allow 
tenant organizations to engage in. No programmatic or policy changes 
will result from this rule that would affect the relationship between 
the Federal government and State and local governments.

Executive Order 12866, Regulatory Planning and Review

    The Office of Management and Budget (OMB) reviewed this proposed 
rule under Executive Order 12866 (entitled ``Regulatory Planning and 
Review''). OMB determined that this proposed rule is a ``significant 
regulatory action,'' as defined in section 3(f) of the Order (although 
not economically significant, as provided in section 3(f)(1) of the 
Order). Any changes made to the proposed rule subsequent to its 
submission to OMB are identified in the docket file, which is available 
for public inspection in the office of the Rules Docket Clerk, Room 
10276, U.S. Department of Housing and Urban Development, 451 Seventh 
Street, SW, Washington, DC 20410-0500.

List of Subjects in 24 CFR Part 245

    Condominiums, Cooperatives, Grant programs--housing and community 
development, Loan programs--housing and community development, Low and 
moderate income housing, Rent subsidies, Reporting and recordkeeping 
requirements, Utilities.
    For the reasons discussed in this preamble, HUD proposes to amend 
24 CFR part 245 as follows:

PART 245--TENANT PARTICIPATION IN MULTIFAMILY HOUSING PROJECTS

    1. The authority citation for 24 CFR part 245 continues to read as 
follows:

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

    2. Amend Sec. 245.10 as follows:
    a. Remove paragraph (a)(2);
    b. Remove from paragraph (c) the definition of ``Section 202 Loans 
for the Elderly or Handicapped BMIR Program'';
    c. Redesignate paragraphs (a)(3) and (a)(4) as paragraphs (a)(2) 
and (a)(3), respectively;
    d. Revise redesignated paragraphs (a)(2)(ii) and (a)(3); and
    e. Add paragraphs (a)(4)-(7) to read as follows:


Sec. 245.10  Applicability of part.

    (a) * * *
    (2) * * *
    (ii) Was sold by the Secretary subject to a mortgage insured or 
held by the Secretary and an agreement to maintain the low-and 
moderate-income character of the project;
    (3) State or local housing finance agency project. The project 
receives assistance under section 236 of the National Housing Act (12 
U.S.C. 1715z-1) or the Rent Supplement Program administered through a 
State or local housing finance agency, but does not have a mortgage 
insured under the National Housing Act or held by the Secretary. 
Subject to the further limitation in paragraph (b) of this section, 
only the provisions of subparts A and C of this part and of subpart D 
of this part for requests for approval of a conversion of a project 
from project-paid utilities to tenant-paid utilities or of a reduction 
in tenant utility allowances, apply to a mortgagor of such a project;
    (4) The project receives project-based assistance under section 8 
of the United States Housing Act of 1937;
    (5) The project receives enhanced vouchers under the Low-Income 
Housing Preservation and Resident Homeownership Act of 1990, the 
provisions of the Emergency Low Income Housing Preservation Act of 
1987, or the Multifamily Assisted Housing Reform and Affordability Act 
of 1997;
    (6) The project receives assistance under the Section 202 Direct 
Loan program or the Section 202 Supportive Housing for the Elderly 
program; or
    (7) The project receives assistance under the Section 811 
Supportive Housing for Persons with Disabilities program.
* * * * *

Subpart B--Tenant Organizations

    3. Add Sec. 245.100 to read as follows:


Sec. 245.100  Right of tenants to organize.

    The tenants of a multifamily housing project covered under 
Sec. 245.10 have the

[[Page 32785]]

right to establish and operate a tenant organization for the purpose of 
addressing the terms and conditions of their tenancy.
    4. Revise Secs. 245.105 and 245.110 to read as follows:


Sec. 245.105  Recognition of tenant organizations.

    Owners of multifamily housing projects covered under Sec. 245.10, 
and their agents, must:
    (a) Recognize properly established tenant organizations; and
    (b) Give reasonable consideration to concerns raised by properly 
established tenant organizations.


Sec. 245.110  Properly established tenant organizations.

    A tenant organization has been properly established if it has:
    (a) Been established by the tenants of a multifamily housing 
project covered under Sec. 245.10 for the purpose of addressing the 
terms and conditions of their tenancy;
    (b) Adopted written procedures in compliance with Sec. 245.115; and
    (c) Elected a governing board in compliance with Sec. 245.120.
    5. Add Secs. 245.115, 245.120, 245.125, 245.130, 245.135, 245.140, 
245.145, 245.150, 245.155, and 245.160 to read as follows:


Sec. 245.115  Constitution or by-laws.

    A tenant organization must adopt written procedures either in the 
form of a constitution or in the form of by-laws. A tenant organization 
may determine the contents and structure of its constitution or by-
laws, however, the constitution or by-laws must, at a minimum, contain:
    (a) Procedures for the election of a governing board, which assure 
fair elections;
    (b) Procedures for instituting a recall election to remove a 
governing board or board member;
    (c) The percentage of qualified voting members needed to hold a 
recall election, which may not be less than ten percent;
    (d) The frequency of elections;
    (e) The qualifications needed to run for a seat on the governing 
board; and
    (f) The structure of the governing board.


Sec. 245.120  Governing board.

    (a) Structure. A tenant organization may determine the structure of 
its governing board, however, the governing board must, at a minimum:
    (1) Be democratically elected; and
    (2) Consist of at least five members whose terms are staggered.
    (b) Qualification to serve on governing board. A tenant 
organization may determine the qualifications required to serve on its 
governing board, however, a candidate for a seat on the governing board 
must, at a minimum be:
    (1) A qualified voting member; and
    (2) In compliance with the lease.
    (c) Term length and term limits. A tenant organization may 
determine the length of a term for seats on the governing board, 
however, a seat on a governing board may not be held for more than 
three consecutive years. A tenant organization may determine whether a 
person serving on the governing board may be limited in the number of 
terms served.


Sec. 245.125  Qualified voting member.

    (a) A person is a qualified voting member and may vote in any 
election involving the activities of a tenant organization, if the 
person is:
    (1) Eighteen years of age or older; and
    (2) Named in the lease for an apartment unit in the multifamily 
housing project represented by the tenant organization.
    (b) A qualified voting member may designate another person to vote 
in an election, if that person is:
    (1) Eighteen years of age or older; and
    (2) Resides in the same apartment unit as the qualified voting 
member.


Sec. 245.130  Number of votes.

    Each apartment unit in a multifamily housing project receives one 
vote per election, regardless of the number of occupants of that 
apartment unit.


Sec. 245.135  Election notices.

    All qualified voting members of a tenant organization must be given 
at least thirty days notice of any elections relating to the activities 
of the tenant organization. This notice must include:
    (a) A description of the tenant organization's election procedures;
    (b) A description of the election eligibility requirements; and
    (c) The dates of nominations and elections.


Sec. 245.140  Protected activities.

    (a) Owners of multifamily housing projects covered under 
Sec. 245.10, and their agents, must allow tenants and tenant organizers 
to conduct the following activities related to the establishment or 
operation of a tenant organization:
    (1) Distributing leaflets in lobby areas;
    (2) Placing leaflets at or under tenants' doors;
    (3) Distributing leaflets in common areas;
    (4) Initiating contact with tenants;
    (5) Conducting an initial door-to-door survey of tenants to solicit 
interest in establishing a tenant organization and to offer information 
about tenant organizations;
    (6) Posting information on bulletin boards;
    (7) Assisting tenants to participate in tenant organization 
activities;
    (8) Convening regularly scheduled tenant organization meetings in a 
space on site and accessible to tenants; and
    (9) Formulating responses to owner's requests for:
    (i) Rent increases;
    (ii) Partial payment of claims;
    (iii) The conversion from project-based paid utilities to tenant-
paid utilities;
    (iv) A reduction in tenant utility allowances;
    (v) Converting residential units to non-residential use, 
cooperative housing, or condominiums;
    (vi) Major capital additions; and
    (vii) Prepayment of loans.
    (b) In addition to the activities listed in paragraph (a) of this 
section, owners of multifamily housing projects covered under 
Sec. 245.10, and their agents, must allow tenants and tenant organizers 
to conduct other reasonable activities related to the establishment or 
operation of a tenant organization.


Sec. 245.145  Meeting space.

    (a) Owners of multifamily housing projects covered under 
Sec. 245.10, and their agents, must reasonably make available the use 
of any community room or other available space appropriate for meetings 
that is part of the multifamily housing project when requested by:
    (1) Tenants or a tenant organization and used for activities 
related to the operation of the tenant organization; or
    (2) Tenants seeking to establish a tenant organization or 
collectively address the terms and conditions of their tenancy.
    (b) Tenant and tenant organization meetings must be accessible to 
persons with disabilities.
    (c) Fees. An owner of a multifamily housing project covered under 
Sec. 245.10 may charge a fee, approved by the Secretary as may normally 
be imposed for the use of such facilities in accordance with procedures 
prescribed by the Secretary, for the use of meeting space. An owner may 
waive this fee.


Sec. 245.150  Tenant organizers.

    (a) A tenant organizer is a tenant or non-tenant who assists 
tenants in establishing and operating a tenant organization.
    (b) Owners of multifamily housing projects covered under 
Sec. 245.10, and their agents, must allow tenant

[[Page 32786]]

organizers to assist tenants in establishing and operating tenant 
organizations.
    (c) Non-tenant tenant organizers. (1) If a multifamily housing 
project covered under Sec. 245.10 has a consistently enforced policy 
against solicitation, then a non-tenant tenant organizer must be 
accompanied by a tenant while on the property of the multifamily 
housing project.
    (2) If a multifamily housing project covered under Sec. 245.10 has 
a policy favoring solicitation, any non-tenant tenant organizer must be 
afforded the same privileges and rights of access as other uninvited 
outside parties in the normal course of operations. If the project does 
not have a consistently enforced policy against solicitation, the 
project shall be treated as if it has a policy favoring solicitation.


Sec. 245.155  Tenant's right not to be re-solicited.

    A tenant has the right to not be re-solicited regarding 
participation in a tenant organization.


Sec. 245.160  Additional tenant organizations.

    (a) There may be more than one tenant organization for each 
multifamily housing project covered under Sec. 245.10.
    (b) Owners of multifamily housing projects covered under 
Sec. 245.10, and their agents, must recognize the rights of tenants to 
organize to replace the leadership of an existing tenant organization 
through recall elections, to establish issue-based organizations in 
response to specific tenants' issues, and to establish additional 
tenant organizations. A tenant organizer may assist tenants in 
organizing a recall election or establishing additional tenant 
organizations.

    Dated: March 25, 1999.
William C. Apgar,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 99-15430 Filed 6-16-99; 8:45 am]
BILLING CODE 4210-27-P