----------------------------------- -----------------------------------
                                      **U.S. Department of Housing and
                                      Urban Development**

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

+-----------------------------------+-----------------------------------+
| Special Attention of:             | **Transmittal** for Handbook No.: |
|                                   | 4350.3 REV-1,CHG-2                |
| Regional Directors                |                                   |
|                                   | Issued: June 29, 2007             |
| Multifamily Hub Directors         |                                   |
|                                   |                                   |
| Multifamily Program Center        |                                   |
| Directors                         |                                   |
|                                   |                                   |
| Supervisory Project Managers      |                                   |
|                                   |                                   |
| Project Managers                  |                                   |
|                                   |                                   |
| Contract Administrators, and      |                                   |
|                                   |                                   |
| Owners and Management Agents of   |                                   |
| projects covered by this          |                                   |
| Handbook.                         |                                   |
+-----------------------------------+-----------------------------------+

+-----------------------------------------------------------------------+
| 1\. This Transmits                                                    |
|                                                                       |
| Handbook 4350.3 REV-1, Change-2, \"Occupancy Requirements of          |
| Subsidized Multifamily Housing Programs\".                            |
|                                                                       |
| A. Revised Table of Contents                                          |
|                                                                       |
| B. Revised Exhibit Table of Contents                                  |
|                                                                       |
| C. Revised Appendices Table of Contents                               |
|                                                                       |
| D. Revised Chapter 1                                                  |
|                                                                       |
| E. Revised Chapter 2                                                  |
|                                                                       |
| F. Revised Chapter 3                                                  |
|                                                                       |
| G. Revised Chapter 4                                                  |
|                                                                       |
| H. Revised Chapter 5                                                  |
|                                                                       |
| I. Revised Chapter 6                                                  |
|                                                                       |
| J. Revised Chapter 7                                                  |
|                                                                       |
| K. Revised Chapter 8                                                  |
|                                                                       |
| L. Revised Chapter 9                                                  |
|                                                                       |
| M. Revised Appendices                                                 |
|                                                                       |
| N. Revised Glossary                                                   |
|                                                                       |
| 2\. Implementation                                                    |
|                                                                       |
| These changes are effective June 29, 2007. Unlike previous changes,   |
| and in response to Multifamily Housings business partner requests,    |
| owners/management agents have 90 calendar days from the effective     |
| date, or September 24, 2007, to implement those changes requiring     |
| modifications to their TRACS software. The only exception to this     |
| would be if there are modifications that cannot be made at this time  |
| due to incompatibility with HUD\'s TRACS system. If this occurs,      |
| further guidance will be forthcoming.                                 |
|                                                                       |
| 3\. Explanation of Materials Transmitted                              |
|                                                                       |
| A. Changes are designated by a double asterisk (\*\*) at the          |
| beginning and end of the change.                                      |
|                                                                       |
| B. With the reinstatement of form HUD-50059, all references           |
| throughout the Handbook to 50059 data requirements or                 |
|                                                                       |
| 50059 facsimiles have been changed to HUD-50059.                      |
|                                                                       |
| C. Chapter 1, Introduction                                            |
|                                                                       |
| Additional clarification or information to existing text:             |
|                                                                       |
| Paragraphs 1-1.C and 1-4.B - Changed \"Non-performance Based Contract |
| Administrators\" to \"Traditional Contract                            |
|                                                                       |
| Administrators\" for consistency with other publications.             |
|                                                                       |
| Paragraph 1-1.D - Clarified that Contract Administrators will only    |
| perform tasks required under the provisions of their                  |
|                                                                       |
| Annual Contributions Contract (ACC).                                  |
|                                                                       |
| Paragraph 1-7.B.9, 10, 11and 12 - Added the web addresses for the     |
| \"Inventory of Units for the Elderly and Persons                      |
|                                                                       |
| with Disabilities\", \"HUD User Policy Development and Research       |
| Information Service\", \"Multifamily Rental Housing                   |
|                                                                       |
| Integrity Improvement Project (RHIIP)\" and \"Enterprise Income       |
| Verification (EIV) System for Multifamily Housing                     |
|                                                                       |
| Program Users\".                                                      |
|                                                                       |
| D. Chapter 2, Civil Rights and Nondiscrimination Requirements         |
|                                                                       |
| Corrected reference:                                                  |
|                                                                       |
| Paragraph 2-10.A, 2-31.F.3, 2-32.C.2.a, 2-42 Example                  |
|                                                                       |
| Additional clarification on existing text:                            |
|                                                                       |
| Figure 2-1 - Added \"Limited English Proficiency (LEP)\" as a Key     |
| Term.                                                                 |
|                                                                       |
| Paragraph 2-5.D.1.b - Corrected form number and name to form          |
| HUD-935A, Affirmative Fair Housing Marketing AFHM                     |
|                                                                       |
| Plan - Multifamily Housing.                                           |
|                                                                       |
| Paragraph 2-9.C - Added information on \"Improving Access to Services |
| for Persons with LEP\".                                               |
|                                                                       |
| Paragraph 2-31.F.1.a - Added paragraph references for determining     |
| project and program eligibility.                                      |
|                                                                       |
| Paragraph 2-33.C - Added \"If a tenant household is being moved to a  |
| different unit as a reasonable accommodation to                       |
|                                                                       |
| a household member\'s disability, then the owner must pay for the     |
| move unless doing so would constitute an undue                        |
|                                                                       |
| financial and administrative burden.\"                                |
|                                                                       |
| E. Chapter 3, Eligibility for Assistance and Occupancy                |
|                                                                       |
| Corrected references or typos:                                        |
|                                                                       |
| Paragraph 3-6.F.5, 3-10.C.2, 3-11.A.3, 3-12.B.3 and 4, 3-12.E,        |
| 3-12.L.1.c, 3-16 B.3, 3-17, Exhibit 3-1 Situation 6.B.5               |
|                                                                       |
| Additional clarification on existing text:                            |
|                                                                       |
| Paragraph 3-3.E - Added as a key regulation the CFR reference on      |
| restrictions on eligibility of students for Section 8                 |
|                                                                       |
| assistance.                                                           |
|                                                                       |
| Paragraph 3-4 - Added reference to paragraphs 3-13 on Determining     |
| Eligbility of Students for Assistance and 3-16 on                     |
|                                                                       |
| Determining the Eligibility of a Remaining Family Member.             |
|                                                                       |
| Paragraph 3-6.D.3 - Added Section 202 projects without assistance use |
| the Section 236 low income limits.                                    |
|                                                                       |
| Figure 3-3 - Clarified income limits to use for pre-1981 and          |
| post-1981 Section 202/8 projects.                                     |
|                                                                       |
| Paragraph 3-9.C.2 - Removed paragraph relative to disclosure of       |
| social security numbers for individuals who have                      |
|                                                                       |
| applied for legalization under the Immigration and Reform Control Act |
| of 1986 as it no longer applies and                                   |
|                                                                       |
| renumbered remaining paragraphs.                                      |
|                                                                       |
| Paragraph 3-12.H.4 - Paragraph removed, the DHS SAVE system manual    |
| was removed from Appendix 2 as it is                                  |
|                                                                       |
| no longer current.                                                    |
|                                                                       |
| Paragraph 3-12.K.1 - Clarified that the family member determined      |
| eligible and family members who have turned in                        |
|                                                                       |
| their required documentation in a timely manner are eligible for      |
| assistance until final eligibility is determined. If there            |
|                                                                       |
| are family members who did not turn in the required documentation in  |
| a timely manner they are not eligible for                             |
|                                                                       |
| assistance and assistance must be prorated.                           |
|                                                                       |
| Paragraph 3-12.K Example - Clarified that one family member was       |
| eligible at admission. Expanded the example to                        |
|                                                                       |
| include what happens after DHS verification is received and there is  |
| a change in the immigration status of family                          |
|                                                                       |
| members.                                                              |
|                                                                       |
| Paragraph 3-12.L.2.a - Added instructions for completing and mailing  |
| the DHS Form G 845S are found in Appendix                             |
|                                                                       |
| 2-B of the handbook. This information is taken from DHS\' current     |
| Systematic Alien Verification for Entitlements                        |
|                                                                       |
| (SAVE) Program Instruction Manual and should be used until such time  |
| as the instruction manual is updated by                               |
|                                                                       |
| DHS and included in its entirety in Appendix 2-A.                     |
|                                                                       |
| Paragraph 3-12.Q and Exhibits 3-8 and 3-10 - Clarified if the family  |
| receiving assistance on June 19,1995 includes a                       |
|                                                                       |
| refugee under section 207 of the Immigration and Nationality Act, or  |
| an individual seeking asylum under section 208                        |
|                                                                       |
| of that Act, a deferral can be given to the family and there is no    |
| limitation on the deferral period. The 18 month                       |
|                                                                       |
| deferral limitation does not apply.                                   |
|                                                                       |
| Paragraph 3-13 - Added the requirements for determining eligibility   |
| of college students for assistance.                                   |
|                                                                       |
| Figure 3-6 - For clarification purposes, removed the family           |
| definition.                                                           |
|                                                                       |
| Paragraph 3-18.A.1 - Added clarification that Section 651 of Title    |
| VI, Subtitle D of the Community Development Act of                    |
|                                                                       |
| 1992 applies to both insured and non-insured projects that are        |
| eligible to implement the elderly preference.                         |
|                                                                       |
| Paragraph 3-18.A.12 - Added that age waivers cannot be issued for     |
| Section 515/8 elderly projects. If owners of these                    |
|                                                                       |
| projects are experiencing vacancy problems and want to admit underage |
| applicants, they must request RHS re-                                 |
|                                                                       |
| classify their project from elderly to family.                        |
|                                                                       |
| Paragraph 3-18.B.1.a - Added clarification that Section 658 of Title  |
| VI of Subtitle D of the Community Development                         |
|                                                                       |
| Act of 1992 applies to both insured and non-insured Section 236       |
| projects.                                                             |
|                                                                       |
| Paragraph 3-20.H.5 - Revised paragraph to read: There are sufficient  |
| subsidized units available in the area to house                       |
|                                                                       |
| current project tenants who are willing to move, as well as to house  |
| individuals who no longer qualify for the                             |
|                                                                       |
| housing because of the changed category.                              |
|                                                                       |
| Paragraph 3-23.B.2 - Clarified that owners must have written          |
| occupancy standards. Also, removed the word \"some\"                  |
|                                                                       |
| in the second sentence. Changed to read \"Owners have                 |
| discretion\...\"                                                      |
|                                                                       |
| Paragraph 3-23.E.6.c Note - Added that owners should not count        |
| children who are away at school who have                              |
|                                                                       |
| established residency at another address as evidenced by a lease      |
| agreement.                                                            |
|                                                                       |
| Paragraph 3-23.G.1 - Added \"(see exception for assigning a larger    |
| unit to a single person in G.2 below.)\"                              |
|                                                                       |
| Paragraph 3-27.C - Added that owners may accept a signed affidavit    |
| from the remaining head of household when                             |
|                                                                       |
| reasonable efforts to obtain verification have been exhausted.        |
|                                                                       |
| Paragraph 3-32 - Added a new B to include text on access to services  |
| for persons with LEP.                                                 |
|                                                                       |
| Paragraph 3-33 - Added the requirements for verifying the eligibility |
| of a student for assistance.                                          |
|                                                                       |
| Exhibits 3-3 through 3-11 - Changed title of documents to reflect     |
| they are sample letters and forms and corrected text                  |
|                                                                       |
| in letters and forms and chapter to reflect that all of the documents |
| in the exhibits are samples.                                          |
|                                                                       |
| Exhibit 3-5 - Changed the name of the exhibit to \"Sample Citizenship |
| Declaration\".                                                        |
|                                                                       |
| Exhibits 3-12, 3-13, 3-14 - Removed MAT field number references.      |
|                                                                       |
| F. Chapter 4, Waiting List and Tenant Selection                       |
|                                                                       |
| Corrected references or typos:                                        |
|                                                                       |
| Paragraph 4-7.C.1, 4-11.A, 4-12.C.3,4-14.B.5, 4-24.B.6                |
|                                                                       |
| Additional clarification on existing text:                            |
|                                                                       |
| Figure 4-2 - Added eligibility of college students to receive Section |
| 8 assistance as a required topic for the Tenant                       |
|                                                                       |
| Selection Plan.                                                       |
|                                                                       |
| Paragraph 4-4.C.1.b - Removed temporary deferral of termination of    |
| assistance as a requirement for the Tenant                            |
|                                                                       |
| Selection Plan.                                                       |
|                                                                       |
| Paragraph 4-4.C.6 - Corrected title of paragraph to include \"Title   |
| VI of The Civil Rights Act of 1964.\"                                 |
|                                                                       |
| Paragraph 4-4.C.8 - Added that the Tenant Selection Plan must include |
| the requirements for determining eligibility of                       |
|                                                                       |
| students enrolled at an institution of higher education to receive    |
| Section 8 assistance.                                                 |
|                                                                       |
| .Paragraph 4-5 - Added a note that income targeting does not apply to |
| Section 202 PAC, Section 202 PRAC and                                 |
|                                                                       |
| Section 811 PRAC.                                                     |
|                                                                       |
| Paragraph 4-7.B.5 - Added the same criteria established for other     |
| applicants when screening for drug abuse and other                    |
|                                                                       |
| criminal activity must be applied when screening live-in attendents   |
| and new additions to the household.                                   |
|                                                                       |
| Paragraphs 4-7.E.6 and 4-28.B - Added If the applicant is a person    |
| with disabilities, the owner must consider                            |
|                                                                       |
| extenuating circumstances in the screening process where this would   |
| be required as a matter of reasonable                                 |
|                                                                       |
| accommodation.                                                        |
|                                                                       |
| Paragraph 4-9.C.2.c - Added that the applicant rejection notice must  |
| state that persons with disabilities have the right                   |
|                                                                       |
| to request reasonable accommodations to participate in the informal   |
| hearing process.                                                      |
|                                                                       |
| Paragraph 4-11.A and Paragraph 4-12 - Corrected form number for the   |
| Affirmative Fair Housing Marketing Plan to                            |
|                                                                       |
| HUD-935.2A.                                                           |
|                                                                       |
| Paragraph 4-12.D.4 - Added that the owner\'s responsibility to market |
| projects to those least likely to apply includes                      |
|                                                                       |
| marketing to the LEP population in the community.                     |
|                                                                       |
| Paragraph 4-12.F - Added guidance on updating the Affirmative Fair    |
| Housing Marketing Plan.                                               |
|                                                                       |
| Paragraph 4-14.A.1 - Added in addition to providing applicants the    |
| opportunity to complete applications at the project                   |
|                                                                       |
| site, owners may also send out and receive applications by mail or    |
| make reasonable accommodations for persons                            |
|                                                                       |
| with disabilities, if requested.                                      |
|                                                                       |
| Paragraph 4-14.A.3 - Added when applicants do not complete the race   |
| and ethnicity form owners should place a                              |
|                                                                       |
| notation in the tenant file that the applicant chose not to provide   |
| the race and ethnicity certification.                                 |
|                                                                       |
| Paragraph 4-16.A.1 - Added upon receipt of an application the owner   |
| must indicate the date and time received by                           |
|                                                                       |
| either using a date and time stamp or writing and initialing the date |
| and time on the application.                                          |
|                                                                       |
| Paragraph 4-21 - Added as an example the applicant did not respond to |
| information or updates because of a                                   |
|                                                                       |
| disability.                                                           |
|                                                                       |
| Paragraph 4-22.E - Added new paragraph stating the applicant\'s or    |
| tenant\'s file should be available for review by the                  |
|                                                                       |
| applicant or tenant upon request or by a third party who provides     |
| signed authorization for access from the applicant                    |
|                                                                       |
| or tenant.                                                            |
|                                                                       |
| Paragraph 4-22.F - Added new paragraph stating the owner must dispose |
| of applicant and tenant files and records in a                        |
|                                                                       |
| manner that will prevent any unauthorized access to personal          |
| information, e.g., burn, pulverize, shred, etc.                       |
|                                                                       |
| Paragraph 4-25.C - Added for example, an initial certification        |
| processed to move a tenant from Section 236                           |
|                                                                       |
| assistance to Section 8 assistance is counted for income targeting.   |
|                                                                       |
| Paragraph 4-27.C.2.f - Added \"for lease violations\" after previous  |
| evictions.                                                            |
|                                                                       |
| Paragraph 4-27.D - Added unless the owner has established a           |
| geographic radius within which home vists are made                    |
|                                                                       |
| (see paragraph 4-7 E.5).                                              |
|                                                                       |
| Paragraph 4-27.E.6 - Added new paragraph stating the notification     |
| requirements if an applicant is denied admission                      |
|                                                                       |
| because the criminal background check reveals he/she provided false   |
| information.                                                          |
|                                                                       |
| Paragraph 4-28.B.1 - Added if the applicant is a person with          |
| disabilities, the owner must consider extenuating                     |
|                                                                       |
| circumstances where this would be required as a matter of reasonable  |
| accommodation (see Chapter 2, Subsection 4                            |
|                                                                       |
| for information on Reasonable Accommodation.)                         |
|                                                                       |
| Paragraph 4-31.A.5 - Added noncitizen requirements do not apply to    |
| Section 202 projects with units not receiving                         |
|                                                                       |
| assistance under the Rent Supplement or Section 8 programs to be      |
| consistent with paragraph 3-12.F.                                     |
|                                                                       |
| Paragraph 4-31.B.2 - Clarified that prorated assistance would be      |
| provided for the family members who submitted                         |
|                                                                       |
| their immigration documentation in a timely manner.                   |
|                                                                       |
| G. Chapter 5, Determining Income and Calculating Rent                 |
|                                                                       |
| Corrrected erroneous references or typos:                             |
|                                                                       |
| Paragraph 5-6.A.3.d, 5-6.K.1, 5-6.K.3, 5-10.A.4, 5-12.A.3, 5-15.D.1,  |
| 5-25, Figure 5-5                                                      |
|                                                                       |
| Additional clarification on existing text:                            |
|                                                                       |
| Paragraph 5-5.A.2 - Removed \"and divide by 12\" in two places in the |
| paragraph.                                                            |
|                                                                       |
| Figure 5-2 - changed Note to read the earned income of a full-time    |
| student 18 years old or older who is a dependent                      |
|                                                                       |
| is excluded to the extent that it exceeds \$480.                      |
|                                                                       |
| Paragraph 5-6.C - Added text to correctly reflect the treatment of    |
| income and deductions for a permanently confined                      |
|                                                                       |
| family member. Also added the owner should consider extenuating       |
| circumstances for obtaining the signature of the                      |
|                                                                       |
| permanently confined member on the HUD-50059.                         |
|                                                                       |
| Paragraph 5-6.D - Included text stating when student financial is     |
| included in annual income for students applying for or                |
|                                                                       |
| receiving Section 8 assistance.                                       |
|                                                                       |
| Paragraph 5-6.H - Added new paragraph providing guidance on the       |
| inclusion of periodic social security payments in                     |
|                                                                       |
| annual income.                                                        |
|                                                                       |
| Paragraph 5-6.K .4 - Added information on the treatment of Federal    |
| government pension funds paid to a former                             |
|                                                                       |
| spouse.                                                               |
|                                                                       |
| Paragraph 5-6.O - Removed periodic payment from an asset is not       |
| income until the amount invested is recouped.                         |
|                                                                       |
| Removed the examples \"Documenting That Amounts Withdrawn Are         |
| Reimbursement of Amounts Invested.\" Clarified                        |
|                                                                       |
| when to count withdrawals as assets and when to count as income.      |
|                                                                       |
| Paragraph 5-6.Q.3 Example - Removed the last bullet in the example    |
| relating to student financial assistance.                             |
|                                                                       |
| Paragraph 5-7.G.2.b(2) - Removed the amount the holder invested in    |
| the annuity will not be counted as income along                       |
|                                                                       |
| with the example.                                                     |
|                                                                       |
| Paragraph 5-7.G.2.c(1) - Deleted \"If total net assets exceed         |
| \$5,000\" as the cash value of an annuity must be                     |
|                                                                       |
| calculated regardless of the total of the net assets.                 |
|                                                                       |
| Paragraph 5-7.G.5 - Added a new paragraph on treatment of Federal     |
| Government Pensions and renumbered the                                |
|                                                                       |
| remaining subparagraphs in this section.                              |
|                                                                       |
| Paragraph 5-7.G.6.b - Changed to read the cash value of the asset for |
| mortgage or deed of trust is the unpaid principal                     |
|                                                                       |
| as of the effective date of the certification.                        |
|                                                                       |
| Paragraph 5-10.C.1.- Removed the phrase (including the member who is  |
| a person with disabilities) as this was a                             |
|                                                                       |
| duplicative statement within the sentence.                            |
|                                                                       |
| Paragraph 5-10.D.6 - Added past one-time nonrecurring medical         |
| expenses that have been paid in full are not                          |
|                                                                       |
| applicable when calculating anticipated medical expenses at move-in.  |
|                                                                       |
| Paragraph 5-10.D.8.k - Added see Sample Certification for Qualified   |
| Long-Term Care Insurance Expenses in Exhibit                          |
|                                                                       |
| 5-4.                                                                  |
|                                                                       |
| Paragraph 5-13.C.1.a - Added when third party verification is not     |
| possible refer to paragraph 5-19.E for                                |
|                                                                       |
| documenting the file.                                                 |
|                                                                       |
| Paragraph 5-13.C.1.b - Removed the sentence the owner may resort to a |
| review of documents before the two week                               |
|                                                                       |
| date if the owner determines and documents that third party           |
| verification cannot or will not be obtained.                          |
|                                                                       |
| Paragraph 5-13.C.3.b - Changed to read four to six pay stubs.         |
|                                                                       |
| Paragraph 5-13.D - Added \"or signed affidavit\".                     |
|                                                                       |
| Paragraph 5-15.A, B.1 and B.2 - Added that the forms must be signed   |
| at move-in and at each annual recertification.                        |
|                                                                       |
| Paragraph 5-16 - Removed the reference to Exhibit 5-8 as the exhibit  |
| has been removed. The EIV System User                                 |
|                                                                       |
| Manual for Multifamily Housing Program Users should be referred to    |
| for information relative to using EIV for                             |
|                                                                       |
| verification of social security benefits. A future Handbook 4350.3    |
| REV-1 update will include necessary references                        |
|                                                                       |
| related to use of the EIV system.                                     |
|                                                                       |
| Paragraph 5-17.B.1 - Changed to reflect that verifications are valid  |
| for 120 days.                                                         |
|                                                                       |
| Paragraph 5-17.B.2 - Paragraph removed regarding updating             |
| verification requests orally with a 3^rd^ party source and            |
|                                                                       |
| renumbered the remaining paragraphs.                                  |
|                                                                       |
| Paragraph 5-23.C - Added new paragraph stating a tenant\'s file       |
| should be available for review by the tenant upon                     |
|                                                                       |
| request or by a third party who provides signed authorization for     |
| access from the tenant.                                               |
|                                                                       |
| Paragraph 5-23.E - Added new paragraph stating owners must dispose of |
| applicant and tenant files and records in a                           |
|                                                                       |
| manner that will prevent any unauthorized access to personal          |
| information, e.g., burn, pulverize, shred, etc.                       |
|                                                                       |
| Paragraph 5-24 Added Key Regulation 24 CFR 5.661 Section 8            |
| project-based assistance programs: Approval for                       |
|                                                                       |
| police or other security personnel to live in project.                |
|                                                                       |
| Paragraph 5-26.C - Added reference to paragraph 9-13 for information  |
| on utility reimbursements.                                            |
|                                                                       |
| Paragraph 5-26.D - Added note that minimum rent does not apply to     |
| Section 202 PAC, Section 202 PRAC or Section                          |
|                                                                       |
| 811 PRAC projects.                                                    |
|                                                                       |
| Paragraph 5-28 - Clarified calculating rent and assistance payments   |
| for Section 811 double occupancy units,                               |
|                                                                       |
| corrected calculations in examples and added new examples.            |
|                                                                       |
| Paragraph 5-31.C - Added that the certification statements are        |
| provided on the form HUD-50059 in Appendix 7-B and                    |
|                                                                       |
| removed Figure 5-8.                                                   |
|                                                                       |
| Paragraph 5-31.F - Added required signatures must be obtained on the  |
| HUD-50059 prior to submitting the                                     |
|                                                                       |
| information to CA or HUD. Also added that the owner may consider      |
| extenuating circumstances when an adult                               |
|                                                                       |
| family member is not available to sign the HUD-50059.                 |
|                                                                       |
| Exhibit 5-1 - Income Inclusions (4) - Corrected language to clarify   |
| the examples are types of periodic payments                           |
|                                                                       |
| included in annual income and are not income exclusions. Also         |
| included new provision (9) for inclusion in annual                    |
|                                                                       |
| income of financial assistance in excess of tuition for persons       |
| enrolled as students at an institution of higher                      |
|                                                                       |
| education and added under Income Exclusion (6) \"see income           |
| inclusions 9), above, for students receiving Section 8                |
|                                                                       |
| assistance.                                                           |
|                                                                       |
| Exhibit 5-2.A.10.d - Changed to calculate the imputed income using    |
| the cash value of the asset as of the effective date                  |
|                                                                       |
| of the certification. Changed the example to agree with the text.     |
|                                                                       |
| Exhibit 5-3 - Changed title to read \"Examples of Medical Expenses    |
| That Are Deductible and Nondeductible\".                              |
|                                                                       |
| Exhibit 5-3 - Cosmetic surgery - Added \"However, if medical          |
| complications, e.g., infections, etc., occur as a result of           |
|                                                                       |
| the proceudre that requires medical treatment, the medical treatment  |
| expenses would be treated as a medical                                |
|                                                                       |
| expense deduction.\"                                                  |
|                                                                       |
| Exhibit 5-3 - Nutritional supplements and Non-prescription            |
| medicines - Changed to read in order to be eligible as a              |
|                                                                       |
| medical expense, it must be recommended in writing by a licensed      |
| health care provider that the drug is treatment for                   |
|                                                                       |
| a specific condition diagnosed by a physician or health care          |
| provider.                                                             |
|                                                                       |
| Exhibit 5-3 - Personal use items section - Added incontinence         |
| supplies as an example.                                               |
|                                                                       |
| Exhibit 5-4 - Changed title to reflect it is a sample certification   |
| form for qualified long-term care insurance                           |
|                                                                       |
| expenses.                                                             |
|                                                                       |
| Exhibit 5-8 - exhibit removed and replaced with Exhibit 5-9.          |
|                                                                       |
| H. Chapter 6, Lease Requirements and Leasing Activities               |
|                                                                       |
| Corrected erroneous references or typos:                              |
|                                                                       |
| 6-3.A.4, 6-5 E.1 and 2, 6-25.F.2.b,                                   |
|                                                                       |
| Additional clarification on existing text:                            |
|                                                                       |
| Paragraph 6-4.A - Note added advising that leases may need to be      |
| conveyed in languages other than English                              |
|                                                                       |
| for LEP persons.                                                      |
|                                                                       |
| Paragraphs 6-4.B.2 and 6-5.A.3 - Added paragraphs covering            |
| recertification, termination of assistance and fraud                  |
|                                                                       |
| penalties found in the model lease for subsidized programs must be    |
| added to the occupancy agreements for coops.                          |
|                                                                       |
| Figure 6-2 - Added Rent Supplement and Rental Assistance Payment      |
| (RAP) to the programs that use the Model Lease                        |
|                                                                       |
| for Subsidized Programs.                                              |
|                                                                       |
| Paragraph 6-4.D, 6-5.C.2, 6-12.B.2, 6-12.C.1,2 and 3 - Added contract |
| administrators can approve lease                                      |
|                                                                       |
| modifications. (See paragraph 1-1 regarding CAs responsibilities.)    |
|                                                                       |
| Paragraph 6-5.C.1 - Added Rental Assistance Payment (RAP) and Rent    |
| Supplement.                                                           |
|                                                                       |
| Paragraph 6-5.F.2 - Added RHS Section 515/8 projects must use the HUD |
| Model Lease for Subsidized Programs.                                  |
|                                                                       |
| Also added that the owner must prepare and have approved a lease      |
| addendum containing the additional                                    |
|                                                                       |
| requirements required by RHS.                                         |
|                                                                       |
| Paragraph 6-9.A.2 - Clarified that contract administrators review or  |
| approval of house rules is not required.                              |
|                                                                       |
| Paragraph 6-9.B.5 - Added contract administrators may address issues  |
| related to House Rules and revised to                                 |
|                                                                       |
| read \"that house rules circumvent or conflict with HUD requirements  |
| (including civil rights and Fair Housing).\"                          |
|                                                                       |
| Paragraph 6-10.A.4 - Added \"to see Glossary\" for definition of      |
| assistance animals.                                                   |
|                                                                       |
| Paragraph 6-11.B.4 - Added the HUD-50059 must be filed in the tenant  |
| file to reflect the correct gross rent and                            |
|                                                                       |
| assistance payment.                                                   |
|                                                                       |
| Paragraph 6-12.B.1 - Clarified lease changes provided by HUD          |
| Headquarters must be incorporated into the lease                      |
|                                                                       |
| and do not require approval by the HUD Field Office or Contract       |
| Administrator.                                                        |
|                                                                       |
| Paragraph 6-14.B.2 - Added Contract Administrator.                    |
|                                                                       |
| Paragraph 6-15.H - Removed the reminder regarding the security        |
| deposit and special claims as it no longer applies.                   |
|                                                                       |
| Paragraph 6-19 - Added as a Key Regulation, 24 CFR 2.278 Mandatory    |
| Meals in Multifamily Rental or Cooperative                            |
|                                                                       |
| Projects for the Elderly or Handicapped.                              |
|                                                                       |
| Paragraph 6-23.B - Added new paragraph stating owners cannot charge   |
| tenants for late payment of rent in Section                           |
|                                                                       |
| 202/8, Section 202 PAC, Section 202 PRAC and Section 811 PRAC         |
| projects. Renumbered the remaining                                    |
|                                                                       |
| paragraphs.                                                           |
|                                                                       |
| Paragraph 6-25 - Rearranged the order of this paragraph.              |
|                                                                       |
| Paragraph 6-25.A - Changed to read \"an owner may charge tenants for  |
| allowable charges identified under                                    |
|                                                                       |
| subparagraphs B, C, D and E below.\"                                  |
|                                                                       |
| Paragraph 6-25.B.3 - Added a Note stating owners cannot charge        |
| tenants for returned checks for insufficient funds at                 |
|                                                                       |
| Section 202/8, Section 202 PAC, Section 202 PRAC and Section 811 PRAC |
| projects.                                                             |
|                                                                       |
| Paragraph 6-27.B.2 - Added Exhibit 6-6 provides \"examples of\" more  |
| detailed information that may be provided to                          |
|                                                                       |
| the tenant during the briefing.                                       |
|                                                                       |
| Paragraph 6-27.C.2 - Added when conducting the briefing of new        |
| tenants, the information may also have to be                          |
|                                                                       |
| conveyed in languages other than English for LEP persons, in          |
| accordance with HUD guidance.                                         |
|                                                                       |
| Paragraph 6-29.C.3 - Added the inspection form must include the       |
| statement \"The unit is in decent, safe and sanitary                  |
|                                                                       |
| condition.\"                                                          |
|                                                                       |
| Exhibit 6-2 - Removed the addendum to RHS lease requirements and      |
| added the Required RHS 515 Section 8 Lease                            |
|                                                                       |
| Provisions - RHS 515/8 projects must now use the HUD Model Lease for  |
| Subsidized Programs.                                                  |
|                                                                       |
| Exhibit 6-6 - Changed the name of the exhibit to reflect that the     |
| exhibit is examples of tenant briefing topics. Added                  |
|                                                                       |
| under Annual/Interim Recertification \"Failure to recertify for       |
| Section 202 PRAC and Section 811                                      |
|                                                                       |
| PRAC may result in termination of tenancy\"; under General Rules      |
| added \"No\" installation of washers; and added in                    |
|                                                                       |
| the introductory language this information may have to be conveyed in |
| languages other than English for                                      |
|                                                                       |
| LEP persons, in accordance with HUD guidance.                         |
|                                                                       |
| I. Chapter 7, Recertification, Unit Transfers, and Gross Rent Changes |
|                                                                       |
| Corrected erroneous references or typos:                              |
|                                                                       |
| 7-6.B, 7-6.D, 7-7.B, 7-7.B.2.b(7), 7-8.B.1, 7-8.D.3.c, 7-11-A.2,      |
| 7-11.A.4, 7-16.A.1, 7-16.A.2 Note, Figure 7-2                         |
|                                                                       |
| Recertification Steps changed to Figure 7-3, Figure 7-3               |
| Recertification Notice Due Dates changed to Figure 7-4                |
|                                                                       |
| Additional clarification on existing text:                            |
|                                                                       |
| Paragraph 7-4.A.3 - Added tenants must sign consent forms and asset   |
| declaration forms.                                                    |
|                                                                       |
| Paragraph 7-4.A.4 - HUD fact sheets for determining rent are to be    |
| provided to the tenant at annual recertification.                     |
|                                                                       |
| Paragraph 7-4.A.5 - Added information on conducting criminal          |
| background checks on current tenants.                                 |
|                                                                       |
| Paragraph 7-4.A.6 - Removed \"including those tenants not receiving   |
| rental assistance.\"                                                  |
|                                                                       |
| Paragraph 7-4.D and 7-4.E - Separated paragraph 7-4.D into two        |
| paragraphs in order to clarify the restriction of                     |
|                                                                       |
| occupancy of adult children after initial occupancy in Section 202/8, |
| Section 202 PRAC and Section 811 PRAC                                 |
|                                                                       |
| projects.                                                             |
|                                                                       |
| Figure 7-2 - New comparison chart for Live-in Aide and Adult Child in |
| 202/8 and 202 PRAC projects.                                          |
|                                                                       |
| Paragraph 7-6.A - Added when assistance payments are terminated after |
| 15 months for past due recertifications, the                          |
|                                                                       |
| owner must follow the guidance in paragraph 7-8 for determining the   |
| effective date for changes in the TTP, tenant                         |
|                                                                       |
| rent and assistance payment when the recertification is delayed.      |
|                                                                       |
| Paragraph 7-7.B - Added new sentence to the Reminder Notices must     |
| also be conveyed in languages other than                              |
|                                                                       |
| English for LEP persons in accordance with HUD guidance.              |
|                                                                       |
| Paragraph 7-8.B.2 Example - Added Owner sends tenant Second Reminder  |
| Notice on 6/1.                                                        |
|                                                                       |
| Paragraph 7-8.D.3.b - Added a note stating Section 236 tenants must   |
| pay the Section 236 market rent and in a                              |
|                                                                       |
| BMIR project the tenant must pay the BMIR market rent when the tenant |
| responds for recertification after the                                |
|                                                                       |
| recertification anniversary date.                                     |
|                                                                       |
| Paragraph 7-8.D.4 - Added If the applicant is a person with           |
| disabilities, the owner must consider extenuating                     |
|                                                                       |
| circumstances where this would be required as a matter of reasonable  |
| accommodation.                                                        |
|                                                                       |
| Paragraph 7-10.A.2 Note - Changed paragraph to reference paragraphs   |
| 7-4.D and E for eligibility of adult children after                   |
|                                                                       |
| initial occupancy in Section 202/8, Section 202 PRAC and Section 811  |
| PRAC projects.                                                        |
|                                                                       |
| Paragraph 7-11.B - Added a new paragraph and examples addressing      |
| processing interim recertifications when a                            |
|                                                                       |
| tenant reports an increase in income that does not increase the       |
| household\'s cumulative income by \$200 or more a                     |
|                                                                       |
| month.                                                                |
|                                                                       |
| Paragraph 7-15.C - Added a new paragraph addressing in the case of a  |
| unit transfer, both the change in rent and                            |
|                                                                       |
| assistance payment are effective on the day that the tenant actually  |
| occupies the new unit.                                                |
|                                                                       |
| Paragraph 7-15.D - Changed to owners must develop policies.           |
|                                                                       |
| Paragraph 7-15.E - Changed to owners are obligated to transfer        |
| tenants as a reasonable accommodation.                                |
|                                                                       |
| Paragraph 7-16.B - Added that owners must pay the costs of a unit     |
| transfer if the tenant is being transferred as a                      |
|                                                                       |
| reasonable accommodation unless doing so would be an undue financial  |
| and administrative burden for the owner.                              |
|                                                                       |
| Paragraph 7-16.C - Added owners are required to describe the unit     |
| transfer policies in their Tenant Selection Plan and                  |
|                                                                       |
| added references to chapter 4 regarding these requirements.           |
|                                                                       |
| Paragraph 7-17.B - changed the reference for comment and posting to   |
| 24 CFR 245.                                                           |
|                                                                       |
| Paragraph 7-17.E. - Added a copy of the HUD-50059 that reflects any   |
| change to the tenant rent, utility                                    |
|                                                                       |
| reimbursement, total tenant payment or assistance payment must be     |
| placed in the tenant file.                                            |
|                                                                       |
| Paragraph 7-17.F - Added change in utility reimbursement requires the |
| tenant\'s signature.                                                  |
|                                                                       |
| Exhibits 7-1, 7-2, 7-3 and 7-4 - Changed the title of the exhibits to |
| reflect they are sample Notices and the                               |
|                                                                       |
| language in the exhibits to meet the requirements in the text of      |
| Chapter 7.                                                            |
|                                                                       |
| Exhibits 7-5, 7-6, 7-7 and 7-8 - Changed the title of the exhibits to |
| reflect they are sample documents                                     |
|                                                                       |
| J. Chapter 8, Termination                                             |
|                                                                       |
| Corrected erroneous references or typos:                              |
|                                                                       |
| Paragraph 8-5.E, 8-13.A.3.c                                           |
|                                                                       |
| Additional clarification on existing text:                            |
|                                                                       |
| Paragraph 8-5.E Note - Added citizenship requirements do not apply to |
| Section 202 PAC and Section 221(d)(3)                                 |
|                                                                       |
| BMIR.                                                                 |
|                                                                       |
| Paragraph 8-5.F - Added assistance must be terminated if a student    |
| enrolled at an institution of higher education does                   |
|                                                                       |
| not meet the eligibility requirements for Section 8 assistance.       |
|                                                                       |
| Paragraph 8-6.A.3.e - To be in compliance with the lease, added the   |
| notification sent to the tenant when                                  |
|                                                                       |
| terminating assistance should include the tenant has a right to       |
| request, within 10 calendar days from the date of the                 |
|                                                                       |
| notice, a meeting with the owner to discuss the proposed termination  |
| of assistance.                                                        |
|                                                                       |
| Paragraph 8-6.A.4 - Changed the word \"must\" to \"should\".          |
|                                                                       |
| Paragraph 8-13.B.2.c.(5) Added new paragraph stating the termination  |
| notice must advise that persons with                                  |
|                                                                       |
| disabilities have the right to request reasonable accommodations to   |
| participate in the hearing process.                                   |
|                                                                       |
| Paragraph 8-14.B - Added NOTE: Owners should be careful to implement  |
| consistently all criminal background                                  |
|                                                                       |
| checks and decision-making procedures. Owners are required to have    |
| their procedures included as part of their                            |
|                                                                       |
| Tenant Selection Plan (see Chapter 4, Figure 4-2).                    |
|                                                                       |
| Paragraph 8-14.C - Incorporated guidance on the procedures for        |
| accessing criminal records from Notice H 02-22.                       |
|                                                                       |
| Paragraph 8-17 - Paragraph 8-17 was separated into two paragraphs.    |
| Paragraph 8-17 now addresses the procedures                           |
|                                                                       |
| to follow for discrepancies and errors and a new paragraph 8-18 was   |
| added addressing the procedures to follow                             |
|                                                                       |
| when fraud is detected.                                               |
|                                                                       |
| K. Chapter 9, Required HUD-50059 and Subsidy Data Reporting           |
|                                                                       |
| Corrected erroneous references or typos:                              |
|                                                                       |
| 9-6.E, 9-7.C, 9-7.D, Figure 9-3, 9-9.C.6, 9-12.A, 9-12.C, 9-12.E.4.a, |
| e and f                                                               |
|                                                                       |
| Additional clarification on existing text:                            |
|                                                                       |
| Figure 9-1 Note - Removed note relating to HUD-50059 being eliminated |
| as it has been reinstated.                                            |
|                                                                       |
| Paragraph 9-5.A.1 - Removed \"The Contract Administrator is the       |
| entity who issues subsidy payments for the                            |
|                                                                       |
| assistance contract.\"                                                |
|                                                                       |
| Paragraph 9-5.A.3.a and b. - Removed references to Appendices and     |
| added a reference to the MAT User\'s Guide.                           |
|                                                                       |
| Paragraph 9-5.A.4.b - Added extenuating circumstances for signing     |
| HUD-50059 and added copies of the HUD-52670-                          |
|                                                                       |
| A Parts 1 and 2 and related and supported forms must be retained.     |
|                                                                       |
| Paragraph 9-5.A.5.b - Revised the section on services that may be     |
| provided by a Service Bureau.                                         |
|                                                                       |
| Figure 9-2 - Added special claims must be submitted for payment       |
| within 90 calendar days of the approval date and that                 |
|                                                                       |
| HUD-50059 data should be submitted throughout the month as the        |
| completed data is available. Also removed the                         |
|                                                                       |
| sentence addressing failure to submit data within 60 days. Clarified  |
| that the time frames are calendar days.                               |
|                                                                       |
| Paragraph 9-5.B - Removed text discussing specific TRACS internet     |
| applications.                                                         |
|                                                                       |
| Paragraph 9-6.B - Added the HUD-52670-A part 1 and 2 must have        |
| original signatures.                                                  |
|                                                                       |
| Paragraph 9-7.C - Consolidated text and removed all MAT references    |
| and Figures 9-3, 9-4, 9-5- and 9-6.                                   |
|                                                                       |
| Paragraph 9-7.D - Moved text regarding resources for correcting TRACS |
| errors into a new 9-7.D from 9-8. Removed                             |
|                                                                       |
| other information regarding the MAT. Figure 9-7 was changed to Figure |
| 9-3. Changed references from TRACS                                    |
|                                                                       |
| Hotline to Multifamily Help Desk Hotline                              |
|                                                                       |
| Paragraph 9-7.E.1 - Added upon request, the files must be made        |
| available for review by HUD or the                                    |
|                                                                       |
| Contract Administrator.                                               |
|                                                                       |
| Paragraph 9-7.E.3 - Added new paragraph stating owners must dispose   |
| of all files and records in a manner that will                        |
|                                                                       |
| prevent any unauthorized access to personal information, e.g., burn,  |
| pulverize, shred, etc.                                                |
|                                                                       |
| Paragraph 9-8 - New paragraph \"The HUD-50059\". Moved text on MAT    |
| information from Appendix 6 that is not                               |
|                                                                       |
| available from other sources. Referenced user to consult the MAT      |
| User\'s Guide for additional information.                             |
|                                                                       |
| Paragraph 9-9 - Changed TRACS Help Desk hotline to Multifamily Help   |
| Desk hotline.                                                         |
|                                                                       |
| Paragraph 9-12.B.2 - Added owners must keep a copy of the signed      |
| HUD-52670 and supporting documents.                                   |
|                                                                       |
| Paragraph 9-12.B.3 - Added copies of signed HUD-50059 consistent with |
| the HUD-52670-A must be kept in the                                   |
|                                                                       |
| tenant file. Signed HUD-52670 and supporting documents must also be   |
| kept.                                                                 |
|                                                                       |
| Paragraph 9-12.B.5 - Added note if an owner elects to grant rent      |
| concessions they cannot bill HUD for either the rental                |
|                                                                       |
| assistance or the tenant\'s portion of the rent for the month or      |
| months the concession is given.\"                                     |
|                                                                       |
| Paragraph 9-12. C.2 - Added prior to submitting requests for          |
| assistance payments or special claims all of the                      |
|                                                                       |
| supporting tenant data must be in TRACS.                              |
|                                                                       |
| Paragraph 9-12.C.3 - Removed 9-12 C.3 a-e listing the information to  |
| be submitted on the HUD-52670.                                        |
|                                                                       |
| Paragraph 9-12.E.4.g - Replaced subparagraph g with instructions on   |
| calculating an adjustment involving two                               |
|                                                                       |
| partial months.                                                       |
|                                                                       |
| Paragraph 9-12.F.1 and .4 - Deleted statements that are not part of   |
| the certification on the HUD-52670.                                   |
|                                                                       |
| Paragraph 9-13.B.1 - Added the requirement to return undisbursed      |
| utility reimbursements to HUD.                                        |
|                                                                       |
| Paragraph 9-14 - Paragraph updated to reflect current requirements    |
| for processing special claims.                                        |
|                                                                       |
| Paragraph 9-15.A - Removed \"unassisted\" before basic rent and \"or  |
| the new authorized rent under the Section 8 mark-                     |
|                                                                       |
| up-to-market program.\"                                               |
|                                                                       |
| L. Appendices:                                                        |
|                                                                       |
| Appendix 1 - form HUD-935.2 replaced with form HUD-935-2A.            |
|                                                                       |
| Appendix 2 - Appendix removed - will be replaced when new Systematic  |
| Alien Verification for Entitlements (SAVE)                            |
|                                                                       |
| manual is updated by DHS. Space holder in place as Appendix 2-A. New  |
| Appendix 2-B added to include the                                     |
|                                                                       |
| instructions for completing and mailing DHS Form G 845S and corrected |
| telephone number for persons to call for                              |
|                                                                       |
| questions on the SAVE program.                                        |
|                                                                       |
| Appendix 4-A, 4-B and 4-C - Added alphabetical references             |
| corresponding to guidance in appendices 4-E, 4-F and 4-               |
|                                                                       |
| G                                                                     |
|                                                                       |
| Appendix 4-A - Revised language in paragraph 20, Access by Landlord.  |
|                                                                       |
| Appendix 4-A - Revised language in Paragraph 23 as language currently |
| in lease is not supported by statute.                                 |
|                                                                       |
| Appendix 4-B - Corrected paragraph references in Paragraph 25 to 10   |
| or 24 and corrected the spelling of the word                          |
|                                                                       |
| waiver in Paragraph 26.                                               |
|                                                                       |
| Appendices 4-E, 4-F and 4-G New appendices added to provide guidance  |
| on filling in the blank spaces in the model                           |
|                                                                       |
| leases. Corresponding alphabetical references added to Appendices     |
| 4-A, 4-B, 4-C and 4-D.                                                |
|                                                                       |
| Appendix 5 - Added \"the unit is in decent, safe and sanitary         |
| condition\" and \"this unit to be in decent, safe                     |
|                                                                       |
| and sanitary condition. Any deficiencies are noted above.\"           |
|                                                                       |
| Appendix 6 - Appendix removed and relevant text moved to Chapter 9,   |
| Paragraph 9-8. The former Appendix 15 is                              |
|                                                                       |
| now Appendix 6, 6-A, 6-B, 6-C. Corrected social security references   |
| in new 6-A and 6-B. Also added in paragraph 4                         |
|                                                                       |
| of Appendix 6-B \"that the person has no other disability which meets |
| the above definition\" for clarification purposes.                    |
|                                                                       |
| Also added a Note \"This information may have to be conveyed in       |
| languages other than English for LEP persons in                       |
|                                                                       |
| accordance with HUD guidance.                                         |
|                                                                       |
| Appendix 7-A - Removed in field Police or Security Tenant that the    |
| TTP must be 50% of contract rent and in the field                     |
|                                                                       |
| \"date that head of household signed\" added \"and all adult family   |
| members\" and the date for TRACS is the date                          |
|                                                                       |
| the head of household signed. Changed all of the 59 Field number      |
| references to the MAT field number references                         |
|                                                                       |
| from the MAT User\'s Guide. Added the form HUD-50059 as Appendix 7-B. |
|                                                                       |
| Appendix 8 - Corrected the rounding procedures in 2. Examples of      |
| Rounding to agree with Paragraph 5-5 B.1.                             |
|                                                                       |
| Appendix 13 - Inserted form HUD-93104 with updated OMB expiration     |
| date of 5/31/2010.                                                    |
|                                                                       |
| Appendix 14 - Changed the date on all fact sheets from January 2002   |
| to June 2007 and revised to add changes in                            |
|                                                                       |
| regulations relating to student restrictions for section 8            |
| assistance.                                                           |
|                                                                       |
| Appendix 15, 15 A, 15 B, 15 C - now Appendix 6, 6 A, 6 B, 6 C.        |
|                                                                       |
| M.Glossary:                                                           |
|                                                                       |
| Removed definition for 50059 Data Requirements                        |
|                                                                       |
| Added definition for Public Housing Agency and definitions relating   |
| to student restrictions for Section 8 assistance.                     |
|                                                                       |
| 4\. Filing Instructions                                               |
|                                                                       |
| Because changes to the text in Chapters 2 through 9 affect page       |
| numbering, it is necessary to reissue the entire chapters.            |
|                                                                       |
| Handbook 4350.3 REV-1 CHG-1 Handbook 4350.3 Rev-1 CHG-2               |
|                                                                       |
| Remove : Insert :                                                     |
|                                                                       |
| Table of Contents Table of Contents                                   |
|                                                                       |
| Exhibit Table of Contents Exhibit Table of Contents                   |
|                                                                       |
| Appendices Table of Contents AppendicesTable of Contents              |
|                                                                       |
| Chapter 1 Pages 1-1, 1-8, 1-13 Chapter 1, Pages 1-1, 1-8, 1-13        |
|                                                                       |
| Chapter 2 (whole chapter including exhibits) Chapter 2, (whole        |
| chapter including exhibits)                                           |
|                                                                       |
| Chapter 3 (whole chapter including exhibits) Chapter 3 (whole chapter |
| including exhibits)                                                   |
|                                                                       |
| Chapter 4 (whole chapter including exhibits) Chapter 4 (whole chapter |
| including exhibits)                                                   |
|                                                                       |
| Chapter 5 (whole chapter including exhibits) Chapter 5 (whole chapter |
| including exhibits) Chapter 6 (whole chapter including exhibits)      |
| Chapter 6 (whole chapter including exhibits) Chapter 7 (whole chapter |
| including exhibits) Chapter 7 (whole chapter including exhibits)      |
| Chapter 8 (whole chapter including exhibits) Chapter 8 (whole chapter |
| including exhibits)                                                   |
|                                                                       |
| Chapter 9 (whole chapter including exhibits) Chapter 9 (whole chapter |
| including exhibits)                                                   |
|                                                                       |
| Glossary Glossary                                                     |
|                                                                       |
| Appendices 1, 4-A, 4-B pages 8 and 9, 5 page 4, 6, Appendices 1, 4-A, |
| 4-B pages 8 and 9, 5 page 4,                                          |
|                                                                       |
| 7, 8 page 1, 13, 14, 15 6 (formerly Appendix 15), 7, 8 page 1, 13, 14 |
|                                                                       |
| .                                                                     |
|                                                                       |
| \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_  |
|                                                                       |
| John L. Garvin                                                        |
|                                                                       |
| Acting Deputy Assistant Secretary,                                    |
|                                                                       |
| Multifamily Housing Programs                                          |
+-----------------------------------------------------------------------+

  -----------------------------------------------------------------------
  Distribution: W-3-1,      

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