U.S. Department of Housing

and Urban Development

Special Attention of: Transmittal Handbook No:

Public Housing Agencies 7430.1 CHG-9

(PHAs)

Issued: May 17, 1982

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1\. This Transmits: A new Chapter 5 of the Low-Income Leased

Housing Handbook 7430.1 dated 1969:

2\. Explanation of Material Transmitted: The new Chapter 5

provides instructions for the financial close-out and

termination of a public housing agency\'s (PHA\'s) Section 23

Leased Housing Program when all units of the program: (1) are

converted to the Section 8 Housing Assistance Payments (HAP)

Existing Program; (2) are acquired by the PHA under the

Low-Income Public Housing Program; or (3) are terminated

outright.

3\. Issuance Cancelled: Notice H-81-5 (PHA), entitled: Financial

Close-Out and Termination of Section 23 Leased Housing Programs,

which expired 9/30/81.

4\. Filing Instructions:

Insert:

Handbook 7430.1 CHG 9

Page iii dated 5/82

Pages 5-1 thru 5-12

dated 5/82

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General Deputy Assistant Secretary

for Housing - Deputy Federal Housing

Commissioner

HUD-23 (9-81)

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U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

H O U S I N G

TRANSMITTAL

11/14/79

1\. This Transmits:

Changes to Chapter 4, Section 2, of the Low-Income Leased

Housing Handbook 7430.1, dated 11/79.

2\. Explanation of Material Transmitted:

\(1\) Prescribes new requirements for the submission by PHAs of

overpayments of annual contributions for the Leased

Housing Program;

\(2\) Provides a procedure for the monitoring by RADs of the

submission of Form HUD-52981 by PHAs; and

\(3\) Prescribes required follow-up actions to be taken by RADs

and Field Offices when PHAs fail to submit Form HUD-52981

and/or fail to remit overpayments of annual contributions

due HUD as shown on Line 23 of the Form HUD-52981.

3\. Filing Instructions:

Remove: Insert:

Handbook 7430.1 Handbook 7430.1 CHG 8

Pages i and ii dated 11/69 Page i dated 11/79

Page ii dated 11/79

Chapter 4, Section 2, Chapter 4, Section 2,

Pages 3 thru 5 dated 11/69 Pages 3 thru 8 dated 11/79

Page 6 dated 1/72

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Assistant Secretary for

Housing-Federal Housing Commissioner

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U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

HOUSING MANAGEMENT

TRANSMITTAL

NOTICE NO.7 6/28/74

1\. This Notice Transmits the Following:

Page changes to Low Rent Housing Leased Housing Handbook

7430.1, Chapter 4, Section 2, dated 6/74.

2\. Explanation of Material Transmitted:

To delete the requirement regarding the submission of Form

HUD-52575, Financial Plan for Leased Housing Program. The

need for this document has been eliminated in accordance with

the Policies set forth in the Under Secretary\'s memorandum of

April 30, 1973, entitled, \"Policy on Renewal of Leases in

Leased Housing Program and Assignment of Subsidies for Leased

Housing Operations.\"

3\. Filing Instructions:

Remove: Insert:

Handbook 7430.1 Handbook 7430.1

Chapter 4, Section 2 Chapter 4, Section 2

Pages 1 and 2 dated 11/69 Pages 1 and 2 dated 6/74

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Assistant Secretary

for Housing Management

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U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

HOUSING MANAGEMENT

LOW-RENT HOUSING

LEASED HOUSING HANDBOOK

TRANSMITTAL

NOTICE No.6 1/27/72

1\. This Notice Transmits the Following:

Low-Rent Housing Leased Housing Handbook 7430.1, revised

Chapter 4, Section 2, page 6, dated 1/72.

2\. Explanation of Material Transmitted:

Establishes a new operating reserve policy for the LHA-Leased

Housing Program.

Form HUD-52493, Request for Determination of Applicable Basis

for Maximum Operating Reserve for Section 23 Leased Housing, is

now obsolete.

3\. Filing Instructions:

Remove: Insert:

HM 7430.l, Chapter 4, HM 7430.1, Chapter 4,

Section 2, page 5 dated 11/69 Section 2, page 5 dated 11/69

pages 6 and 7 dated 3/70 page 6 dated 1/72

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Assistant Secretary for Housing Management

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U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

RENEWAL AND HOUSING MANAGEMENT

LOW-RENT HOUSING

LEASED HOUSING HANDBOOK

Transmittal

NOTICE No. 5 12/1/70

1\. This Notice Transmits the Following:

Revised pages 1 and 2, Chapter 4, Section 3, RHM 7430.1, dated

12/70.

2\. Explanation of Material Transmitted:

The frequency of reporting requirements for Form HUD-52221,

Report on Pre-Occupancy Status and Type of Units in Leased

Housing, and for Form HUD-51235, Report on Occupancy, has been

changed.

Form HUD-51446, Report on Overincome Tenants in Low-Rent

Housing, has been discontinued. Limited data on overincome

tenants will be henceforth required on Form HUD-51235, Report on

Occupancy, which is now being revised.

In addition, these pages have been organizationally updated.

3\. Filing Instructions:

Remove: Insert:

RHM 7430. 1, Chapter 4, RHM 7430.1, Chapter 4,

Section 3, pages 1 and 2, Section 3, pages 1 and 2

dated 11/69 dated 12/70

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Acting Director, Office of Housing

Management

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U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

TRANSMITTAL 3/25/70

NOTICE No. 3

1\. This Notice Transmits the Following:

Pages 5, 6, and 7, Chapter 4, Section 2, Low-Rent Housing Leased

Housing Handbook RHM 7430.1.

2\. Explanation of Material Transmitted:

Expands the policy regarding establishment of an Operating

Reserve for Section 23 Leased Housing.

Form HUD-52493 will be available at the Regional Housing

Assistance Offices where it can be requested by Local

Authorities.

Changes are indicated by asterisks.

3\. Filing Instructions:

Remove: Insert:

RHA 7430.1, Chapter 4 RHM 7430.1, Chapter 4,

Section 2, pages 5 and 6 Section 2, page 5

dated 11/69 dated 11/69, pages 6 and 7

dated 3/70

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Assistant Secretary

for Renewal and Housing Management

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U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

LOW-RENT HOUSING

LEASED HOUSING HANDBOOK

TRANSMITTAL

NOTICE No. 2 11/28/69

1\. This Notice transmits the following:

The new Leased Housing Handbook, RHA 7430.1.

2\. Explanation of Material Transmitted:

This Handbook includes policy and procedures covering the leased

housing program, together with some advisory material which will

be helpful to Local Authorities with leased housing programs.

With the exception of the item specified in paragraph 4 below to

be retained, the Handbook incorporates and supersedes the

provisions of all Circulars issued to LHA\'s which concerned the

leased housing program exclusively.

In addition to the material previously, issued by Circulars,

this Handbook includes a number of new provisions. Among

the more significant of these new provisions are:

a\. The possibility of providing congregate housing, and the

inclusion of standards for such housing.

b\. The promotion of homeownership objectives through use of

the leased housing program.

c\. The possibility of contract coverage of a program in

increments.

d\. The requirement that properties for a leased housing

program be rented at a rent not higher than their fair

rental value.

e\. The inclusion of a \"Finders-Keepers\" policy.

f\. The liberalization of payments on account of annual

contributions to cover possible anticipated deficits, and

the related requirement for a Financial Plan under such

conditions.

g\. Authorization for the LHA to include reasonable, direct

preliminary expenses in the first Operating Budget,

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LOW-RENT HOUSING

LEASED HOUSING HANDBOOK

3\. Filing Instructions:

a\. Remove:

The following low-rent Circulars which were issued to LHA\'s

and which relate solely to the leased housing program:

10- 6-65 Section 23 Leased Housing

12- 2-65 Supplement to Circular of 10-6-65

6- 7-66 Fixed Annual Contribution - Section 23 Leased

Housing

6-29-66 OEO-PHA Cooperation in Programs for Leased

Housing

11-10-66 Clarifying Instructions for Accounting for

Section 23 Leased Housing

12- 5-66 Term of Lease With Owners - Section 23 Leased

Housing

9- 7-67 Payments on Account of Annual Contributions

for Leased Projects

10- 2-67 Designation of Rented Units - Section 23 Leased

Housing

12-15-67 Leased Housing Program Amendments

2- 6-68 Helping Family Adjustment in the Leased Low-Rent

Housing Program

4- 9-68 \"Turnkey\" Leased Housing Proposals

8-26-68 Elimination of Restrictions - Section 23 Leased

Housing Programs

12-20-68 Additional Contributions, Leased Housing

Programs

1- 6-69 Section 23(g) Provision Regarding Homeownership

by Low-Income Families

Appendix 3 to Handbook RHA 7401.1, Chapter 9, Section 1

b\. Retain:

Low-Rent Circular dated 6-5-69, Revised Postcard

Reports\--Leased Housing Program, and its attachment,

(It is suggested that this Circular be filed with the

Handbook.) 1

c\. Insert:

Handbook RHA 7430.1

This Handbook should be filed with this Transmittal Notice

behind the front cover.

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1/ This Circular was issued only to LHA\'s with leased housing

programs. It is not required by LHA\'s which do not have such

programs.

Page 2

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U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

TRANSMITTAL

NOTICE No.1 12/1/69

1\. This Notice Transmits the Following:

Circular RHA 7430.1, Changes in Frequency of Reporting on

Leased Housing Programs.

2\. Explanation of Material Transmitted:

This Circular modifies existing procedures for statistical

reporting for leased housing. It reduces the frequency of

reporting on Form HUD-52221 from semi-monthly to monthly, and

coordinates further the reporting on Form HUD-52221 with that

submitted on Forms HUD-52209 and HUD-51235.

3\. New Handbook. Heretofore, policy and procedures concerning the

leased housing program have been issued to Local Housing

Authorities through the medium of low-rent housing Circulars. A

Handbook incorporating all of the applicable provisions will be

issued shortly. The attached Circular is the first issuance in

that Handbook.

4\. Filing Instructions:

File this Circular in Handbook RHA 7430.1. The cover for this

Handbook will be issued with the material referred to above.

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LOW-RENT HOUSING

LEASED HOUSING HANDBOOK

11/69