Rule2023-24236
Section 202 Direct Loan Technical Amendments
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 2, 2023
Effective
January 1, 2024
Issuing agencies
Housing and Urban Development Department
Abstract
This final rule implements technical amendments to HUD's program regulations governing Section 202 Direct Loans for Housing for the Elderly and Persons with Disabilities ("Section 202 Direct Loan"), including the Section 202 Projects for the Elderly or Handicapped--Section 8 Assistance ("202/8") and the Section 202 Assistance for Nonelderly Handicapped Families and Individuals--Section 162 Assistance ("202/162") programs. The amendments are necessary to conform the Section 202 Direct Loan program regulations with HUD's final rule implementing sections 102, 103, and 104 of the Housing Opportunity Through Modernization Act of 2016 (HOTMA). This final rule also corrects outdated cross references in the Section 202 Direct Loan program regulations and updates the list of protected classes applicable to affirmative marketing requirements for the Section 202/8 and Section 202/162 programs.
Full Text
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<title>Federal Register, Volume 88 Issue 211 (Thursday, November 2, 2023)</title>
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[Federal Register Volume 88, Number 211 (Thursday, November 2, 2023)]
[Rules and Regulations]
[Pages 75230-75234]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-24236]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 891
[Docket No. FR-6385-F-01]
RIN 2502-AJ71
Section 202 Direct Loan Technical Amendments
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, Department of Housing and Urban Development (HUD).
ACTION: Final rule.
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SUMMARY: This final rule implements technical amendments to HUD's
program regulations governing Section 202 Direct Loans for Housing for
the Elderly and Persons with Disabilities (``Section 202 Direct
Loan''), including the Section 202 Projects for the Elderly or
Handicapped--Section 8 Assistance (``202/8'') and the Section 202
Assistance for Nonelderly Handicapped Families and Individuals--Section
162 Assistance (``202/162'') programs. The amendments are necessary to
conform the Section 202 Direct Loan program regulations with HUD's
final rule implementing sections 102, 103, and 104 of the Housing
Opportunity Through Modernization Act of 2016 (HOTMA). This final rule
also corrects outdated cross references in the Section 202 Direct Loan
program regulations and updates the list of protected classes
applicable to affirmative marketing requirements for the Section 202/8
and Section 202/162 programs.
DATES: Effective Date: January 1, 2024.
FOR FURTHER INFORMATION CONTACT: Jennifer Lavorel, Director, Program
Administration Office, Office of Asset Management and Portfolio
Oversight, Office of Multifamily Housing, Department of Housing and
Urban Development, 451 7th Street SW, Room 6180, Washington, DC 20410-
0500,
[[Page 75231]]
telephone number 202-402-2515 (this is not a toll-free number). HUD
welcomes and is prepared to receive calls from individuals who are deaf
or hard of hearing, as well as individuals with speech or communication
disabilities. To learn more about how to make an accessible telephone
call, please visit <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>.
SUPPLEMENTARY INFORMATION:
I. Background
Enacted on July 29, 2016, HOTMA (Pub. L. 114-201, 130 Stat. 782)
contains 14 sections that affect the public housing and Section 8
rental assistance programs. Sections 102, 103, and 104 of HOTMA make
sweeping changes to the United States Housing Act of 1937, particularly
to those sections affecting income calculations and reviews. On
February 14, 2023, HUD a published a final rule entitled ``Housing
Opportunity Through Modernization Act of 2016: Implementation of
Sections 102, 103, and 104'' (88 FR 9600) (``HOTMA final rule''), which
amended HUD regulations to implement these three sections of HOTMA. In
addition to amending the regulations governing HUD's public housing and
Section 8 programs, the HOTMA final rule revised the program
regulations for several other HUD programs, including the Supportive
Housing for the Elderly (Section 202) and Supportive Housing for
Persons with Disabilities (Section 811) Capital Advance programs. HUD
revised the regulations for these programs in the interest of aligning
the HOTMA final rule's requirements across programs.
Pursuant to the Cranston-Gonzalez National Affordable Housing Act
of 1990, Public Law 86-372, Congress repealed the Section 202 Direct
Loan program and created the Section 202 and Section 811 Capital
Advance programs. However, there are projects still operating under
Direct Loan program requirements, including the Section 202/8 and the
Section 202/162 programs. Certain regulations applicable to the Direct
Loan program and regulations specific to the 202/8 and 202/162 programs
were revised by the HOTMA final rule but other regulations were
inadvertently excluded. Accordingly, this final rule revises certain
regulations applicable to the Direct Loan program (including those
governing the 202/8 and 202/162 programs) to conform them with other
Direct Loan program regulations as amended by the HOTMA final rule.
This final rule also makes technical corrections to replace
outdated cross references in these program regulations consistent with
a final rule that took effect on November 18, 1996 (61 FR 54492), in
which HUD removed 24 CFR part 813, and updates the list of protected
classes applicable to affirmative marketing requirements for the
Section 202/8 and Section 202/162 programs.
II. Changes Made in This Final Rule
The following is an overview of the changes made to 24 CFR part 891
in this final rule.
Sec. 891.510 Displacement, Relocation, and Real Property Acquisition
This final rule revises Sec. 891.510(f)(1)(iii)(A)(2) by replacing
the outdated cross reference to ``24 CFR 813.107'' with a cross
reference to ``24 CFR 5.628.''
Sec. 891.520 Definitions Applicable to 202/8 Projects
This final rule revises the definition of ``Family (eligible
family)'' in Sec. 891.520 by replacing the outdated cross reference to
``part 813 of this chapter'' with a cross reference to ``24 CFR
5.403.''
Sec. 891.575 Leasing to Eligible Families
This final rule revises Sec. 891.575(a)(2) by replacing the
outdated cross reference to ``part 813 of this chapter'' with a cross
reference to ``24 CFR 5.653.''
Sec. 891.655 Definitions
This final rule revises the definitions of ``annual income,''
``family,'' ``tenant rent,'' and ``total tenant payment'' in Sec.
891.655 to be consistent with the definitions implemented by the HOTMA
final rule for the Section 202 and Section 811 programs and to remove
outdated cross references to ``part 813 of this chapter''.
Specifically, the HOTMA final rule revised the definitions of ``annual
income'' in Sec. 5.609 and ``total tenant payment'' in Sec. 5.628. It
also added the definition of ``tenant rent'' to Sec. 891.105. This
rule incorporates these revised definitions in Sec. 891.655. For
consistency with prior HUD rulemakings, this final rule also revises
the definitions of ``family,'' ``utility allowance,'' and ``utility
reimbursement'' in Sec. 891.655 by replacing outdated cross references
to ``part 813 of this chapter''.
This final rule also removes the definition of ``rent'' in Sec.
891.655, as the reference to Sec. 891.505 is incorrect (``rent'' is no
longer defined in Sec. 891.505). This revision is consistent with the
HOTMA final rule, which updated definitions for the Section 202 and
Section 811 program regulations in part 891.
Sec. 891.720 Leasing to Eligible Families
This final rule revises Sec. 891.720(a)(3) to replace the outdated
cross reference to ``part 813 of this chapter'' with a cross reference
to ``part 5, subpart F of this title''.
Sec. 891.740 Responsibilities of Borrower
This final rule revises the last sentence of Sec. 891.740(a)(2) by
removing the word ``creed'', adding the parenthetical phrase
``including actual or perceived sexual orientation and gender
identity'' following the term ``sex,'' and adding ``disability'' and
``familial status,'' to read: ``The purpose of the plan and
requirements is to achieve a condition in which eligible families of
similar income levels in the same housing market have a like range of
housing choices available to them regardless of their race, color,
religion, sex (including actual or perceived sexual orientation and
gender identity), disability, familial status, or national origin.''
This language is consistent with existing civil rights authorities
applicable to HUD programs and the HOTMA final rule.
Sec. 891.750 Selection and Admission of Tenants
The final rule revises 891.750 by replacing an outdated cross
reference to ``Sec. 813.102 of this chapter'' with a cross reference
to part 5, subpart F of this title, as modified by 24 CFR 891.505.
These revisions are consistent with the HOTMA final rule.
Although the 202 Direct Loan program uses the term `handicapped,'
the term `disability' is more commonly used and accepted today to refer
to physical or mental impairments. For this reason, this rule uses the
term `disabilities' wherever possible. However, corresponding changes
to HUD's regulations are not feasible via this final rule, given the
limited nature of the technical amendments being made. HUD anticipates
future changes that will address this issue throughout its regulations
in title 24 of the Code of Federal Regulations. Further, this final
rule revises the last sentence in Sec. 891.750(b)(3) by removing the
word ``creed'' and adds the parenthetical phrase, ``including actual or
perceived sexual orientation and gender identity,'' following the term
``sex,'' substitutes ``disability'' for ``handicap'' and adds
``familial status.'' This language is consistent with existing civil
rights authorities applicable to HUD programs and the HOTMA final rule.
[[Page 75232]]
Finally, this final rule revises Sec. 891.750(c) by replacing the
existing paragraph (c) with revised text on regular reexaminations that
aligns with the Section 202 and Section 811 program regulations as
amended by the HOTMA final rule.\1\
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\1\ See the HOTMA final rule's revisions to Sec. 891.610(g)(1),
(2), and (3)(i), 88 FR 9669.
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III. Justification for Final Rulemaking
In general, HUD publishes a rule for public comment before issuing
a rule for effect, in accordance with HUD's regulations on rulemaking
at 24 CFR part 10. However, part 10 provides for exceptions to the
general rule where HUD finds that public comment would be
``impracticable, unnecessary or contrary to the public interest'' (see
24 CFR 10.1).
HUD finds that good cause exists to publish this final rule for
effect without first soliciting public comment. Section 102 of HOTMA
amends the 1937 Act to revise the frequency of family income reviews
and calculations of income in HUD's public housing, Section 8 Moderate
Rehabilitation, Section 8 Moderate Rehabilitation Single Room Occupancy
(SRO), Section 8 Project-Based Rental Assistance (PBRA), 202/8, 202/162
Project Assistance Contract (202/162 PAC), Section 202/811 Capital
Advance with Project Rental Assistance Contract (202/811 PRAC), Section
811 Project Rental Assistance Demonstration (811 PRA), Senior
Preservation Rental Assistance Contracts (SPRAC), and non-insured 236
projects with Interest Reduction Payments programs. Section 104 of
HOTMA amends the 1937 Act to set limits on the assets that families
residing in public housing and families receiving assistance under
Section 8 may own. These HOTMA changes impact the Section 202 Direct
Loan program, including the Section 202/8 and 202/162 program. As
explained in the Background section of this preamble, Congress repealed
the Direct Loan program, but there are projects still operating under
Direct Loan program requirements, including the Section 202/8 and the
Section 202/162 programs. Certain regulations applicable to the Direct
Loan program and regulations specific to the 202/8 and 202/162 programs
were included in the HOTMA final rule but other regulations were
inadvertently excluded. Because of the similarity in functional roles
and responsibilities to the HCV program and Section 202 programs, HUD
believes that the public comments submitted in response to HUD's HOTMA
proposed rule published on September 17, 2019 (84 FR 48820), on these
topics, and HUD's responses to public comments in HUD's HOTMA final
rule, which applied part 5 regulations to Section 202 programs, provide
HUD with a solid basis to make conforming changes to its Section Direct
Loan program regulations. In this regard, the interests of the parties
most affected by HUD's conforming changes--owners and program
participants--are substantially identical to the parties impacted by
the changes made by HUD's HOTMA rulemakings. Finally, the purpose of
this final rule is to conform the Section 202 Direct Loan program
regulations with Section 202 and 811 program regulations as amended by
HUD's HOTMA final rule. Most of the HOTMA income changes impacting the
Section 202 Direct Loan program were implemented by revisions to 24 CFR
part 5 through the HOTMA final rule. The ability to use these part 5
changes in accordance with other interrelated HOTMA Section 102 and 104
requirements would be hindered without conforming changes to part 891.
The changes being made in this final rule are necessary also to
update the list of protected classes applicable to affirmative
marketing requirements for the Section 202/8 and Section 202/162
programs, aligning these regulations with current protected classes
under the Fair Housing Act (42 U.S.C 3601 et seq.) as well as providing
consistency across part 891. The affirmative marketing requirements in
Sec. Sec. 891.400 and 891.600 reflect current law by requiring that
all similarly situated eligible households have a like range of housing
choices available to them regardless of ``race, color, creed, religion,
familial status, disability, sex, or national origin.'' However, the
affirmative marketing provision within Sec. 891.740 lists only ``race,
color, creed, religion, sex, or national origin.'' This language is not
in alignment with current law. As such, this final rule updates the
language to include all protected classes applicable to affirmative
marketing requirements for the Section 202/162 program, consistent with
requirements across part 891. Further, in the time since these
regulations have last been updated, there has been clarification
regarding the inclusivity of `sex' as a federally protected class.\2\
Therefore, this final rule also makes changes that clarify what is
meant by `sex' regarding protected classes for affirmative marketing
purposes.
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\2\ ``. . . it is impossible to discriminate against a person
for being homosexual or transgender without discriminating against
that individual based on sex.'' Bostock v. Clayton County, Georgia,
590 U.S.__ (2020), 140 S.Ct. 1731, 1742 (2020).
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As a result, this final rule makes conforming changes to HUD's
Section 202 Direct Loan program regulations. Soliciting public comment
on this rule is unnecessary because public comment was sought as part
of the rulemaking leading to publication of the HOTMA final rule. This
final rule aligns Section 202 Direct Loan program regulations with the
HOTMA final rule; and it revises and replaces outdated cross
references, consistent with HUD's prior rulemakings.
IV. Findings and Certifications
Regulatory Review--Executive Orders 12866, 13563, and 14094
Under Executive Order 12866 (Regulatory Planning and Review), a
determination must be made whether a regulatory action is significant
and, therefore, subject to review by the Office of Management and
Budget (OMB) in accordance with the requirements of the order.
Executive Order 13563 (Improving Regulations and Regulatory Review)
directs executive agencies to analyze regulations that are ``outmoded,
ineffective, insufficient, or excessively burdensome, and to modify,
streamline, expand, or repeal them in accordance with what has been
learned.'' Executive Order 13563 also directs that, where relevant,
feasible, and consistent with regulatory objectives, and to the extent
permitted by law, agencies are to identify and consider regulatory
approaches that reduce burdens and maintain flexibility and freedom of
choice for the public Executive Order 14094 entitled ``Modernizing
Regulatory Review'' (hereinafter referred to as the ``Modernizing
E.O.'') amends section 3(f) of Executive Order 12866 (Regulatory
Planning and Review), among other things. In this final rule, HUD is
making conforming changes to Section 202 Direct Loan program
regulations to align them with HUD's HOTMA final rule and to replace
outdated cross references and terminology consistent with prior HUD
rulemakings. These changes are technical in nature; HUD is not
introducing any new regulatory changes or rationales that differ in
substance from those in prior rulemakings. This rule was not subject to
OMB review. This rule is not a ``significant regulatory action'' as
defined in Section 3(f) of Executive Order 12866 and is not an
economically significant regulatory action.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.),
generally requires an agency to conduct a regulatory
[[Page 75233]]
flexibility analysis of any rule subject to notice and comment
rulemaking requirements unless the agency certifies that the rule will
not have a significant economic impact on a substantial number of small
entities. As in HUD's HOTMA final rule, this final rule revises HUD's
Section 202 Direct Loan program regulations in a manner that will
reduce burden or provide flexibility for Borrowers and assisted
families, including by providing more specific events that trigger an
interim reexamination of family income, whereas current regulations
provide that families may request reexaminations at any time.
Additionally, HUD is making conforming changes to Section 202 Direct
Loan program regulations to align them with HUD's HOTMA final rule and
to replace outdated cross references and terminology consistent with
prior HUD rulemakings. These amendments impose no significant economic
impact on a substantial number of small entities. Therefore, the
undersigned certifies that this rule will not have a significant impact
on a substantial number of small entities.
Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits an agency
from publishing any rule that has federalism implications if the rule
either imposes substantial direct compliance costs on state and local
governments and is not required by statute, or the rule preempts state
law, unless the agency meets the consultation and funding requirements
of section 6 of the Executive order. This final rule does not have
federalism implications and does not impose substantial direct
compliance costs on state and local governments or preempt state law
within the meaning of the Executive order.
Environmental Impact
The final rule relates to establishment and review of income limits
and exclusions with regard to eligibility for or calculation of HUD
housing assistance or rental assistance and related external
administrative or fiscal requirements and procedures that do not
constitute a development decision that affects the physical condition
of specific project areas or building sites. The final rule also
updates provisions that set out fair housing or nondiscrimination
standards. Accordingly, under 24 CFR 50.19(c)(3) and (c)(6), this final
rule is categorically excluded from environmental review under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321).
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 rule does not impose
any Federal mandates on any state, local, or Tribal Governments or the
private sector within the meaning of the UMRA.
List of Subjects in 24 CFR Part 891
Aged, Grant programs--housing and community development,
Individuals with disabilities, Loan programs--housing and community
development, Low and moderate income housing, Public assistance
programs, Rent subsidies, Reporting and recordkeeping requirements.
Accordingly, for the reasons stated in the preamble, HUD amends 24
CFR part 891 as follows:
PART 891--SUPPORTIVE HOUSING FOR THE ELDERLY AND PERSONS WITH
DISABILITIES
0
1. The authority for 24 CFR part 891 continues to read as follows:
Authority: 12 U.S.C. 1701q; 42 U.S.C. 1437f, 3535(d), and 8013.
Sec. 891.510 [Amended]
0
2. Amend Sec. 891.510(f)(1)(iii)(A)(2) by removing ``24 CFR 813.107''
and adding in its place ``24 CFR 5.628''.
Sec. 891.520 [Amended]
0
3. Amend the definition of ``Family (eligible family)'' in Sec.
891.520 by removing ``part 813 of this chapter'' and adding in its
place ``24 CFR 5.403''.
Sec. 891.575 [Amended]
0
4. Amend Sec. 891.575(a)(2) by removing ``part 813 of this chapter''
and adding in its place ``24 CFR 5.653''.
Sec. 891.655 Definitions applicable to 202/162 projects.
0
5. Amend Sec. 891.655 by:
0
a. Removing the definition of ``rent''; and
0
b. Revising the definitions of ``annual income,'' ``family (eligible
family),'' ``tenant rent,'' ``total tenant payment,'' ``utility
allowance,'' and ``utility reimbursement'' to read as follows:
Annual income is defined in part 5, subpart F of this title. In the
case of an individual residing in an intermediate care facility for
individuals with a developmental disability that is assisted under
Title XIX of the Social Security Act and subpart E of this part, the
annual income of the individual shall exclude protected personal income
as provided under that Act. For purposes of determining the total
tenant payment, the income of such individuals shall be imputed to be
the amount that the family would receive if assisted under Title XVI of
the Social Security Act.
* * * * *
Family (eligible family) means a family that includes a person with
a disability (that meets the definition of a handicapped family in
Sec. 891.505) that meets the project occupancy requirements approved
by HUD and, if the family occupies an assisted unit, meets the low-
income requirements described in 24 CFR 5.603, as modified by the
definition of ``annual income'' in this section.
* * * * *
Tenant rent equals total tenant payment less utility allowance, if
any.
Total tenant payment means the monthly amount defined in, and
determined in accordance with part 5, subpart F of this title.
Utility allowance is defined in part 5, subpart F of this title and
is determined or approved by HUD.
Utility reimbursement is defined in part 5, subpart F of this
title.
* * * * *
0
6. Amend Sec. 891.720 by revising paragraph (a)(3) to read as follows:
Sec. 891.720 Leasing to eligible families.
(a) * * *
(3) Has not rejected any such applicant family except for reasons
acceptable to HUD. If the Borrower is temporarily unable to lease all
units or residential spaces to eligible families, one or more units or
residential spaces may, with the prior approval of HUD, be leased to
otherwise eligible families that do not meet the income requirements of
part 5, subpart F of this title. Failure on the part of the Borrower to
comply with these requirements is a violation of the PAC and grounds
for all available legal remedies, including an action for specific
performance of the PAC, suspension or debarment from HUD programs, and
reduction of the number of units (or in the case of group homes,
reduction of the number of residential spaces) under the PAC as set
forth in paragraph (b) of this section.
* * * * *
0
7. Amend Sec. 891.740 by revising paragraph (a)(2) to read as follows:
Sec. 891.740 Responsibilities of Borrower.
(a) * * *
(2) Marketing must be done in accordance with the HUD-approved
affirmative fair housing marketing plan
[[Page 75234]]
and all fair housing and equal opportunity requirements. The purpose of
the plan and requirements is to achieve a condition in which eligible
families of similar income levels in the same housing market have a
like range of housing choices available to them regardless of their
race, color, religion, sex (including actual or perceived sexual
orientation and gender identity), disability, familial status, or
national origin.
* * * * *
0
8. In Sec. 891.750, revise the introductory text of paragraph (b) and
paragraphs (b)(3), (c)(1), (2), and (3)(i) to read as follows:
Sec. 891.750 Selection and admission of tenants.
* * * * *
(b) Determination of eligibility and selection of tenants. The
Borrower is responsible for determining whether applicants are eligible
for admission and for the selection of families. To be eligible for
admission, an applicant family must be a family that includes a person
with a disability (that meets the definition of ``handicapped family''
in 24 CFR 891.505); meet any project occupancy requirements approved by
HUD; meet the disclosure and verification requirements for Social
Security Numbers, as provided by 24 CFR part 5, subpart B; and be a
low-income family, as defined in part 5, subpart F of this title, as
modified by 24 CFR 891.505. Under certain circumstances, HUD may permit
the leasing of units (or residential space in a group home) to
ineligible families under Sec. 891.720.
* * * * *
(3) If the Borrower determines that an applicant is ineligible for
admission or the Borrower is not selecting the applicant for other
reasons, the Borrower will promptly notify the applicant in writing of
the determination, the reasons for the determination, and that the
applicant has a right to request a meeting to review the rejection, in
accordance with HUD requirements. The review, if requested, may not be
conducted by the member of the Borrower's staff who made the initial
decision to reject the applicant. The applicant may also exercise other
rights, including filing a complaint with HUD's Office of Fair Housing
and Equal Opportunity, if the applicant believes the applicant is being
discriminated against on the basis of race, color, religion, sex
(including actual or perceived sexual orientation and gender identity),
disability, familial status, or national origin.
* * * * *
(c) * * *
(1) Regular reexaminations. If the family occupies an assisted unit
(or residential space in a group home), the Borrower must reexamine the
income and composition of the family at least every 12 months. Upon
verification of the information, the Borrower shall make appropriate
adjustments in the total tenant payment in accordance with Sec. 5.657
of this title and must adjust the rent. The Borrower must also request
an appropriate adjustment to the project assistance payment. Further,
the Borrower must determine whether the family's unit size is still
appropriate and must carry out any unit transfer in accordance with HUD
standards. At the time of reexamination, the Borrower must require the
family to meet the disclosure and verification requirements for Social
Security Numbers, as provided by 24 CFR part 5, subpart B. For
requirements regarding the signing and submitting of consent forms by
families for obtaining wage and claim information from State Wage
Information Collection Agencies, see 24 CFR part 5, subpart B.
(2) Interim reexamination. If the family occupies an assisted unit
(or residential space in a group home) the family must comply with the
provisions in Sec. 5.657 of this title regarding interim reporting of
changes in income. If the Borrower receives information concerning a
change in the family's income or other circumstances between regularly
scheduled reexaminations, the Borrower must consult with the family and
make any adjustments determined to be appropriate. See 24 CFR part 5,
subpart B, for the requirements for the disclosure and verification of
Social Security Number at interim reexaminations involving new
household members. For requirements regarding the signing and
submitting of consent forms by families for obtaining wage and claim
information from State Wage Information Collection agencies, see 24 CFR
part 5, subpart B. Any change in the family's income or other
circumstances that result in an adjustment in the total tenant payment,
tenant rent, or project assistance payment must be verified.
(3) * * *
(i) A family occupying an assisted unit (or residential space in a
group home) shall remain eligible for project assistance payments until
the total tenant payment equals or exceeds the gross rent (or a pro
rata share of the gross rent in a group home). The termination of
subsidy eligibility will not affect the family's other rights under its
lease. Project assistance payments may be resumed if, as a result of
changes in income, rent, or other relevant circumstances during the
term of the PAC, the family meets the income eligibility requirements
of Sec. 5.657 of this title (as modified in Sec. 891.105) and project
assistance is available for the unit or residential space under the
terms of the PAC. The family will not be required to establish its
eligibility for admission to the project under the remaining
requirements of paragraph (b) of this section.
* * * * *
Julia R. Gordon,
Assistant Secretary for Housing--FHA Commissioner.
[FR Doc. 2023-24236 Filed 11-1-23; 8:45 am]
BILLING CODE 4210-67-P
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