7420.3 REV-2

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

PROGRAM PURPOSE/

OBJECTIVES

882.401(a) 882.401(a) - Program purpose is to Approved PHA applications

882.501(b) 882.503 upgrade substandard and Administrative Plans

(a)(9) housing and provide may be amended by letter

rental subsidies. to change or delete local

Deletes requirement program objectives and

that PHAs indicate related certifications.

in their applications

local program

objectives

(deconcentration of

assisted housing,

prevention of

displacement,

neighborhood

revitalizational).

NA 882.503 - Deletes requirement Same as above. The

(a)(9)(i) that PHAs with a site and neighborhood

local objective of requirements contained

deconcentration of in Section 882.404

assisted housing remain unchanged.

certify they will

use special site

selection criteria.

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

PROGRAM PURPOSE/

OBJECTIVES

Single Room Occupancy (SRO) Housing

882.401(c) NA - SROs are eligible if SROs are now an eligible

\(6\) the Field Office type of housing. Field

determines there is a Office should obtain

significant market signed statements from

demand for SRO units the Chief Executive

and the PHA and Officer and the PHA

local government approving use of Moderate

approve of using Rehabilitation Program

the Moderate for SROs. PHA

Rehabilitation justification of market

Program for SROs. demand and Field Office

review and determination

should be based on:

\(1\) the number of

income-eligible elderly,

handicapped or displaced

single persons currently

unassisted by other

housing programs who

could be expected to

lease a Moderate

Rehabilitation SRO unit

under a one year lease if

offered one (in lieu of

waiting for an efficiency

or one-bedroom unit);

\(2\) the prior market

record of rehabilitated

and unrehabilitated

SROs in the area; and

\(3\) analysis of the

location of the

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

SRO in terms of its

attractiveness to

potential residents. The

demand analysis should be

done on the basis of

eligible persons, but

note the provision in

24 CFR Part 812.3 that

Field Offices may

authorize occupancy of

income eligible single

persons who are not

elderly, displaced, or

disabled not to exceed

15% of the total assisted

units in a PHA\'s

jurisdiction (excluding

the number of Existing

Housing units since this

program is addressed

separately in

24 CFR Part 812).

882.402 NA - Defines SRO as \"a

unit for occupancy by

a single eligible

individual capable of

independent living

which does not contain

food preparation and/or

sanitary facilities

in accordance with

Section 882.109, and

is located within a

multifamily structure

consisting of more

than 12 units\". This

definition distinguishes

SROs from congregate

housing and Independent

Group Residences.

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

882.404(c) NA - Adds SRO Housing Quality

Standard (HQS)

Performance Requirement.

The HQS apply to SROs

except those sections

on bathrooms, kitchens,

space and security.

Local code standards

for SROs are applicable

for bathrooms, kitchens,

space and security. In

the absence of such local

SRO code standards, one

bathroom must be provided

for every six occupants

per floor and each

dwelling unit must be

at least 110 square

feet. Each SRO unit

shall have only one

occupant. Exterior

windows which are

accessible and exterior

doors to the unit

must be lockable.

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

882.408(a) NA - SRO Fair Market Rents If PHA has HUD-approved

and (b) (FMRs) are 75% of the 0-bedroom exception

0-bedroom FMR. If rents, SRO exception

PHA has HUD-approved rents are automatic and

exception rents for do not need further HUD

Moderate approval. SRO contract

Rehabilitation rent cannot exceed SRO

0-bedrooms, SRO FMR or exception rent

exception rent is and cannot include costs

75% of the 0-bedroom of furniture, linen, maid

exception rent. service, food, etc. (Any

such services must be for

882.403(d) NA - Requires minimum 1 voluntary purchase by the

882.513 year SRO lease term. tenants.) SRO base rent

882.514 Vacancies will be cannot exceed 83% of SRO

filled by eligible FMR or exception rent.

individuals on the PHA may have a separate

PHA\'s waiting list. SRO waiting list.

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

Relocation

882.406(b) 882.407(a) - Regulatory relocation To implement new

and (b) policies have been relocation policies,

882.503(a) substantially PHA Administrative

\(11\) simplified. Focus Plan (relocation

has shifted to strategy) must be

adequate services amended and approved

and payments for by the Field Office.

tenants permanently Generally, revised

displaced. (Prior policies are applicable

policy allowed to units placed under

displacement only if Agreement after

suitable units in the 9/28/82. (If tenant

building or complex notices in conformance

would not be with the original

available.) regulation have been

issued, owners must

fulfill their

obligations under

these notices.) PHAs

may approve owner

proposals which will

cause permanent

displacement of

tenants if the tenants

are given appropriate

notice and advice, an

opportunity to relocate

to \"suitable\"

replacement housing,

and receive

reimbursement for

moving expenses.

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

882.406(b) NA - Clarifies that For this purpose, \"good

relocation cause\" does not include

requirements expiration of the lease

do not apply to term or termination

tenants who lease a solely because the owner

unit after the owner intends to participate

has submitted a in the Moderate

proposal to the PHA Rehabilitation Program

if the owner provided and wants vacant units,

notice of the different tenants, etc.

impending relocation

or displacement prior

to occupancy. Also,

these requirements do

not apply to tenants

whose tenancy is

terminated for

good cause.

NA 882.407 - Deletes requirement Families who are not

(b)(3), that a written notice required to move from the

(c), and of right to continue property (building or

\(e\) in occupancy must be complex) are not entitled

given to tenants who to any relocation

are not required to payments or services.

move from the property However, PHAs should

(building or complex). adopt policies requiring

owners to notify tenants

of pending rehabilitation

and, further, may require

owners to assist tenants

in moving between units

within the property

(moving costs cannot be

amortized through the

contract rents).

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

882.406(b) 882.407 - Permanent Displacement: Suitable replacement

\(1\) (b)(3), Tenants cannot be housing is defined as

(d), (e) permanently displaced affordable (rent within

and (f) unless (1) PHA has 30% of gross income),

HUD-approved decent, safe and sanitary

relocation strategy, housing in a location

\(2\) tenants receive which is generally no

adequate, advance less desirable than the

written notice and location of the unit to

appropriate advisory be rehabilitated. For

services, (3) tenants lower-income families,

are given a the obligation to provide

reasonable choice of suitable, affordable

opportunities to replacement housing is

relocate to suitable met if the family is

replacement housing, offered a subsidized

and (4) tenants housing unit or, if

receive reimbursement the PHA determines that

for reasonable moving unsubsidized housing is

expenses. The revised more appropriate, a lump

regulation removes the sum payment covering the

requirement for tenant difference between 30% of

notice issuance within the family\'s gross income

30 days after owner and the monthly housing

selection, and also cost of a suitable unit

eliminates the for a 4-year period.

detailed description Reasonable moving

of the contents of expenses

the notice.

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

include fixed payment of

up to \$300 and a \$200

dislocation allowance or

actual, reasonable

transportation, storage

and related costs. The

PHA should determine that

the contents and issuance

date of the tenant

notices are adequate.

The owner (or the PHA)

should issue the notice.

The PHA must incorporate

the above policies in

its relocation strategy.

882.406(b) 882.407 - Temporary Relocation: Suitable temporary

\(2\) (b)(3), Tenants cannot be relocation housing must

(c), (e) temporarily relocated be decent, safe and

and (f) from the property sanitary housing. Moving

(building or complex) costs to and from

unless (1) tenants temporary housing and

receive adequate, tenant reimbursement for

advance written notice reasonable increases in

and appropriate monthly housing costs are

advisory services, still required. The PHA

\(2\) suitable temporary should determine that the

housing is available, content and issuance date

\(3\) the temporary of the tenant notices are

relocation period does adequate. The owner (or

not exceed 12 months the PHA) should issue the

(previously 6 months), notice. The PHA must

and (4) tenants will incorporate the above

receive reimbursement policies in its

for reasonable relocation strategy. The

out-of-pocket expenses old policies concerning

incurred in connection one move, the maximum

with the temporary temporary relocation

relocation, including period, and location of

moving costs to and suitable temporary

from temporary housing relocation housing will

and increases in be deleted from the

monthly housing costs. revised Agreement form.

Page 5 9/91

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

The requirement that

tenants not move more

than once and that the

relocation unit be in

a location generally

no less desirable

have been deleted.

Also, the detailed

description of what

the tenant notice

must contain and when

it must be issued have

been eliminated.

882.406(b) 882.407(g) - Owner still If applicable, assurance

\(3\) 882.503(a) responsible for of a relocation funding

\(11\) payment of costs source for permanently

associated with displaced tenants will

temporary relocation; continue to be required

costs for temporary in the PHA\'s application.

relocation of eligible

tenants can be

amortized through the

contract rents.

Relocation costs

associated with

permanent displacement

or with temporary

relocation of

ineligible tenants

cannot be amortized

through the contract

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

rents and must be

funded from a source

other than

HUD-assisted housing

programs (e.g., the

local government or

the owner).

Contract Rents

(SRO rents previously discussed)

NA 882.409(b) - Deletes PHA authority PHAs may no longer

to approve 10% approve handicapped or

exception rents for large unit exception

handicapped and rents at Agreement

4-bedroom and larger execution unless the

units. (Field Offices units were selected by

still can approve 10% the PHA for approval at

exception rents based such exception rents

on market conditions.) (Section 882.504(d))

prior to the issuance

date of this handbook

change.

882.408(c) 882.409(c) - The imputed interest Applicable to units not

(2)(ii) (2) rate used to calculate under Agreement as of

debt service for 9/28/82. PHAs may,

owner financed however, delay

(non-borrowed funds) implementation of this

rehabilitation costs rate until the issuance

is the FHA multifamily date of revised rent

interest rate (the formats.

1/2% addition to that

interest rate has

been deleted).

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

882.408(c) 882.409(c) - The average rent Will not be effective

\(2\) (1) approach has been until issuance of revised

simplified to allow rent calculation handbook

the current rent instructions and rent

charged to be used formats. Will apply to

as the Base Rent, units not under Agreement

instead of the rent as of that date.

collected over the

last 18 months. Field

Offices may approve

rehabilitation loan

terms shorter than 15

years if the the

rehabilitation costs

exceed \$15,000.

882.408(d) 882.409(d) - Allows contract rents Will not be effective

included in the until issuance of revised

Agreement to be rent calculation handbook

increased when actual instructions and revised

rehabilitation costs Agreement. Owners of

increase due to units under Agreement

unforeseen factors will have option to

beyond the owner\'s execute revised Agreement

control. Also, the and HAP Contract forms.

allowable reasons

for gross rents to

exceed the FMRs after

rehabilitation has

begun have been

expanded and PHAs

may approve gross

rents up to 10%

above the FMRs under

specified conditions.

Field Office approval

is still necessary

for gross rents

between 10% and 20%

above the FMRs.

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

882.410(a) NA - Revises annual Effective upon issuance

\(1\) adjustment policy to of handbook instructions.

recognize changes in After issuance of

debt service for handbook procedures,

purchase or contract rents for

rehabilitation loans units under HAP Contract

which are subject to may be calculated, where

a variable rate or applicable, in accordance

are otherwise with new procedures.

renegotiable. Annual

adjustments are

generally limited

to the base rent

multiplied by the

published annual

adjustment factor

(AAF) applicable to

the base rent. In

cases of variable

rate or renegotiable

financing, annual

adjustments may not

exceed the amount

computed by

multiplying the

contract rent by the

AAF.

Page 7 9/91

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

Rehabilitation Monitoring Subcontracts

NA 882.401(b) - Deletes requirement Approved PHA applications

882.503(a) that a PHA without and Administrative Plans

\(7\) rehabilitation may be amended by letter

expertise cannot to effect a change. The

hire staff unless approved financial forms

it is unable to may also need revision.

subcontract with a PHA must still

public or private demonstrate ability to

entity. provide rehabilitation

technical assistance.

Rehabilitation and Leasing Schedules

882.502 882.505(c) - Requirement simplified Extensions of approved

to state that all schedules require HUD

units in any project approval.

must be under HAP

Contract within 24

months of ACC

execution unless the

schedule is extended

by HUD.

Owner Proposals

(Deletion of additional

site selection

factors for PHAs with

a deconcentration goal

previously discussed)

882.503(b) 882.506(b) - Revises content of Implementation of the

owner proposals; changes may require an

deletes owner amended Administrative

certification that no Plan and owner proposal

tenant has been forced format.

to move in the last

year.

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

NA 882.507(a) - Deletes requirement Same as above.

that a PHA must

inspect all

properties not

rejected in the

initial screening

and provide owners

with a written list

of deficiencies.

NA 882.507(g) - Deletes requirement Same as above.

that the PHA provide

owners with a list of

contractors.

882.504(i) 882.507(i) - Deletes requirement PHAs must determine that

that PHAs assist the interest rate and

owners in preparing terms of financing are

financing reasonable and do not

applications. exceed the financing rate

Requires PHAs to and terms available

approve the financing in the locality.

terms.

NA 882.508(a) - Deletes owner When revised Agreement

\(5\) certification that form is issued, owners of

882.510(b) unassisted units units under Agreement

(2)(vi) comply with HQS. will have the option to

execute a revised form.

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

882.507(d) 882.510(d) - Deletes the 10-day Old policy will be

deadline for the PHA deleted from the revised

to review the owner\'s Agreement form.

evidence of completion Administrative Plan

and inspect the revision may be

unit(s). necessary. PHA should

still perform these

functions promptly.

NA 882.511(c) - Deletes requirement Administrative Plan

that owner must revision may be

indicate in writing necessary. When revised

whether the owner Agreement form is issued,

concurs or disagrees owners of units under

with the PHA about Agreement will have the

the owner\'s rights to option to execute a

claim initial vacancy revised form which

payments. deletes old policy.

Termination of Tenancy

882.511(b) 882.514(b) - Expands grounds for Owners with units under

terminating tenancy: Agreement or HAP Contract

\(1\) Serious or will have option of

repeated lease executing revised HAP

violations (prior Contracts. Expiration

policy was serious of the lease term does

violations or

repeated minor

violations which

disrupt

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

livability, adversely not constitute \"other

affect health or good cause\" and cannot

safety of any person, be the sole basis for

interfere with tenant tenancy termination.

use of property or

with management, or

which adversely affect

project finances);

\(2\) violation of

Federal, State, or

local law (prior policy

referred to State

landlord and tenant

acts); or (3) other

good cause.

NA 882.514(b) - Deletes requirement

\(2\) that tenant conduct

may be deemed other

good cause only if the

tenant was given prior

notice that such conduct

would be good cause for

termination.

882.511(c) 882.514(c) - All evictions must be

\(2\) and carried out through

\(d\) the judicial process

(i.e., if the tenant

won\'t vacate the unit,

the owner must initiate

court action). Owners

are no longer prohibited

from using grounds in

judicial eviction actions

which are different than

those stated in the

termination notice.

Page 9 9/91

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

NA 882.514(c) - Deletes any PHA PHA no longer required to

involvement in review the notification

evictions or procedures. However,

terminations; i.e.; the owner should advise

deletes requirement the PHA of pending

for the owner to vacancies.

furnish a copy of the

termination notice to

the PHA, and for the

PHA to determine that

the termination is in

accordance with

required procedures.

(No administrative

oversight is required

since evictions are

subject to the

judicial process.)

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

882.511(c) 882.514(c) - Owners must give at

least 5 working days

notice for terminations

based on nonpayment

of rent. However,

a notice issued

pursuant to State or

local law (or in

accordance with common

practice in the

locality) which contains

requirements of

882.511(c)(2) may be

substituted for or

run concurrently with

the five-day notice.

The date of a

termination of tenancy

based on violation of

the lease terms or

Federal, State or local

law must be in accordance

with State and local law

(prior policy was in

accord with the lease and

State law). Requires

30 days notice for

terminations based on

good cause (deletes

provision that termination

for other good cause may

only be at the end of the

lease term).

882.511(c) NA - Termination of tenancy

\(2\) notices must be either

delivered or sent first

class (return receipt

requested).

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

Family Participation

882.513 882.516 - Deletes the PHAs may implement the

requirement that revised family

the Moderate participation policies

Rehabilitation waiting by amending the EOHP and

list must be made up Administrative Plan (if

of applicants for the necessary). PHA may now

PHA\'s Section 8 use waiting lists for

Existing Housing other subsidized

Program. Deletes programs, or may

requirement that the establish a separate

Public Notice state Moderate Rehabilitation

that applicants for waiting list. PHAs may

other housing programs establish new tenant

must reapply for selection policies in

the Moderate their Administrative

Rehabilitation Plans.

Program.

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

882.514(c) NA - Permits owner to Applicable as of 9/28/82

select eligible for all participating

tenants not on the owners. The EOHP and

PHA\'s waiting list if Administrative Plan may

the PHA is unable to need to be amended.

refer interested

applicants to the

owner within 30 days

of the vacancy

notification. The

owner will refer these

families to the PHA

to determine

eligibility.

882.515 882.518 - Requires annual PHAs must amend their

reexaminations for all Administrative Plans to

families, including assure that all families

the elderly. receiving assistance

(Previously, elderly will be subject to

families could be reexamination within the

placed on a 2-year 12 month period beginning

schedule.) 90 days after the receipt

of this issuance, and

annually thereafter.

(For example, if the PHA

receives this issuance

on April 15, 1983, all

elderly reexaminations

must occur between July

15, 1983 and July 15,

1984). A copy of the

amendment to the

Administrative Plan

shall be sent to the HUD

Field Office after it is

adopted by the PHA. HUD

approval of this change

is not required.

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

NA 882.517 (d) - Deletes list of PHAs may continue

and (e) voluntary PHA actions policies outlined in

for continued 5/4/79 regulations,

participation of including the provision

families who wish to that a family who wishes

move. Deletes to move may receive a

mandatory list of Section 8 Existing

replacement housing Certificate unless it

resources for families vacated its unit in

forced to move violation of the lease

(Section 882.509 still and caused the PHA to pay

requires that PHAs vacancy payments or

assist families in reimburse the owner for

locating suitable unpaid rent or tenant

replacement housing). damages. If a PHA wants

to change its policies,

it may need to amend

the Administrative Plan.

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Appendix 44

SECTION 8 MODERATE REHABILITATION PROGRAM REVISED REGULATIONS

REGULATORY REFERENCE SUBJECT EFFECTIVE DATE/

IMPLEMENTATION

REVISED ORIGINAL

SECTION SECTION

882.514(b) 882.517(b) - Deletes provision that

tenant selection

preferences for

neighborhood residents

may only be established

for residents of targeted

neighborhoods who are

being directly displaced

by HUD programs.

9/91 Page 12