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CHAPTER 31. MANDATORY MEALS

SECTION 1. GENERAL

This handbook covers requirements of the HUD approved mandatory

meals program in HUD-assisted projects for the elderly or

handicapped persons which were approved prior to April 1, 1987.

After April 1, 1987, no HUD-assisted projects have been approved

for operating a mandatory meals program.

The applicable regulation for the mandatory meals program is

24 CFR Part 278, which is titled: Mandatory Meals Program in

Multifamily Rental or Cooperative Projects for the Elderly or

Handicapped. This handbook chapter provides guidance and

procedures with respect to requirements under Part 278.

Section 278.10(b): Where HUD has approved a project owner\'s

requirement of one meal (or more) per day under the program, all

prospective tenants for admission to the project must be given

notice, before the lease is executed, that participation in the

program is a condition of occupancy in that project.

Section 278.1(b)(2): HUD approval of a project\'s mandatory meals

program neither creates an inference that the requirements of

State or local law have been met, nor does HUD approval preempt

nutritional and health and safety standards in applicable State

or local statutes and regulations.

31-1. APPLICABILITY.

This chapter is applicable to projects that were

approved prior to April 1, 1987 to serve meals under

the mandatory meals program. Projects with approved

mandatory meals programs had to be equipped with a

central dining facility, including a kitchen with

sufficient equipment to prepare meals and a dining area

sufficient to serve residents of the project either

together or on a schedule, or the meals were contracted

out. If meals are contracted out, the meals must be

served in the central dining facility of the project

(see section 3, paragraph 3-8).

The project had to meet one of the following occupancy

requirements to be covered by 24 CFR Part 278 with

respect to the mandatory meals program:

a\. Statutory authority limits occupancy to elderly or

handicapped tenants, or

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b\. HUD Regulatory Agreement designates the project

for elderly or handicapped tenants, or

c\. HUD requires a preference for elderly or

handicapped persons for all units in the project,

and

The project receives a subsidy in the form of:

a\. Mortgage subsidies: Interest Reduction Payment

under Section 236 (including state-assisted

projects without HUD mortgage insurance), Section

221(d)(3) and 221(d)(5) BMIR, or

b\. Loan under Section 202, or

c\. Rent subsidies (some or all of the units receive):

o Rent supplement payments under Section 101

(including state-assisted projects without

HUD mortgage insurance), or

o Housing assistance payments under 24 CFR Part

886, Subpart A, Loan Management Set-Aside

payments, for projects that converted their

rent supplement contracts under Section 101

of the Housing and Urban Development Act of

1965 to such assistance for the term of the

HAP contract, or

o Housing assistance payments under Section 8

of the Housing Act of 1937 including Section

8 Housing Assistance payments by State

housing agencies under 24 CFR Part 883,

subpart E. (excludes: existing housing

certificate program and housing voucher

program).

31-2. NOT APPLICABLE.

This chapter is not applicable to the following:

a\. Projects that were not approved to operate a

mandatory meals program prior to April 1, 1987, or

b\. Projects that were built exclusively for the

chronically mentally ill, developmentally

disabled, or physically handicapped, or

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c\. Unsubsidized projects insured by HUD, or

d\. Projects with voluntary meals programs.

SECTION 2. MANAGEMENT OF THE MEALS PROGRAM

An owner may require as a condition of occupancy that tenants

(unless exempted) residing in the project must purchase one or

more meals as approved by HUD.

31-3. LEASE PROVISIONS.

All prospective tenants must be given notice, before

the lease is executed, that absent qualification for an

exemption, participation in the meals program is a

condition of occupancy.

The project owner and each prospective tenant must

review the meals contract before signing. The meals

contract will be incorporated into the lease.

Citation Section 278.10 states the meals agreement must

incorporate by reference the requirements of 24 CFR 278

and disclose and explain the following obligations:

a\. Statement that the tenant\'s participation in the

mandatory meals program is a condition of

occupancy, and state the number of meals the

tenant is required to purchase.

b\. Duration of the meals agreement.

c\. Charges for meals effective on the date the

contract is signed.

d\. Exemptions available to tenants (see paragraph 2-4

and 2-5 below).

e\. Statement that failure to comply with these

obligations will be a violation of the lease and

cause for eviction in accordance with the lease.

31-4. CHARGES FOR MEALS PAID BY TENANTS.

HUD-approved mandatory meals program charges are not

rents and shall not be included in rents. However,

tenants may write one check including both rent and

charges for meals.

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a\. The charges for meals are limited to those

approved by HUD.

b\. Subject to the requirements of the following

paragraph, an owner may charge tenants up to one

dollar for delivery of meals to their units if

the tenant is immobile or incapable of visiting

the dining facility (see paragraph 2-4d and e

below in this section). An owner must deliver the

meals to a tenant\'s unit for 30 days free of

charge, After 30 days, the owner may charge the

tenant up to one dollar per meal for delivery if:

o The tenant requests this service in writing

and if,

o The owner informs the tenant in advance of

the additional charge for the service.

31-5. TENANTS WHO ARE PERMANENTLY OR TEMPORARILY

INCAPACITATED.

a\. If a tenant is temporarily immobile or temporarily

incapable of visiting the dining room, the owner

must follow guidance in paragraph 2-2b above and

paragraph 2-4d below in this section.

b\. If a tenant is permanently immobile or permanently

incapable of visiting the dining room, the owner

must follow guidance in paragraph 2-2b above and

2-4e in this section.

NOTE: A tenant\'s use of a wheelchair, walking

support, or similar equipment to enable

the tenant to visit the central dining

facility may not be considered as

conclusive evidence of the tenant\'s

temporary or permanent incapacity.

31-6. MANDATORY EXEMPTIONS.

An owner must grant an exemption if a tenant meets one

of the following criteria. Any exemption granted to a

tenant will remain valid as long as the tenant meets

the condition(s) for which the exemption was originally

granted. The citation for the list of exemptions is 24

CFR 278.12.

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Exemptions must be granted to tenants for the following

reasons:

a\. A medical condition that requires a special diet.

The owner must either provide the special diet or

grant the tenant a medical exemption within ten

working days upon the tenant\'s request and receipt

of physician\'s documentation (if owner requests

such documentation). The owner may require a

physician to document the following before

granting an exemption:

o A tenant requires a special diet for medical

reasons, and

o A description of the special diet.

NOTE: If the owner decides to provide the

special diet, it must be provided at no

increased cost to the tenant.

b\. A paying job that requires absence from the

project during the time period that the meals are

served.

c\. Absence from the project for one or more weeks for

hospital care, temporary nursing home care, or

vacation. The owner may require a tenant to

provide a reasonable advance notice, e.g., 3 or 7

days (except for hospital emergencies).

d\. Temporarily immobile or temporarily incapable of

visiting the central dining facility (see NOTE in

paragraph 2-3b above). Owner must deliver meals

free of charge for 30 days. After 30 days, the

owner can:

o Continue serving Meals in the tenant\'s

dwelling unit during the period of

incapacity. The owner can charge up to one

dollar for delivery per meal (see paragraph

2-2b), or

o Grant the tenant a temporary exemption from

participation in the meals program to cover

the period of incapacity.

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e\. Permanently immobile or otherwise incapable of

visiting the central dining facility (see NOTE in

paragraph 2-3b). The owner has two choices:

o Continue the tenant\'s participation in the

meals program, serve meals in the tenant\'s

dwelling unit. The owner can charge up to

one dollar for delivery per meal after the

first 30 days (see paragraph 2-2b), or

o Grant the tenant an exemption from

participation in the meals program.

31-7. DISCRETIONARY EXEMPTIONS.

An owner may grant a discretionary exemption to a

tenant for the following reasons: dietary practices

(e.g., religious-based dietary practice), financial

hardship, or other good cause determined by the owner.

NOTE: An owner who does not provide an exemption

for a religious-based dietary practice must

offer an alternative menu that does not

conflict with the tenant\'s religious dietary

practice.

SECTION 3. PROGRAM ADMINISTRATION

31-8. INCREASES IN CHARGES TO TENANTS MUST BE APPROVED BY

HUD.

Charges for mandatory meals are limited to those

approved by the HUD Field Office. Any increase in

charges must be approved by the HUD Field Office in

advance.

a\. An owner must submit a written request by:

o Stating current charge per meal and proposed

charge per meal, and

o Providing a detailed written justification of

the proposed increase (e.g. identification and

breakdown of additional costs).

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b\. An owner must provide the tenants with a 30-day

advance notice of an approved increase.

31-9. NUTRITIONAL STANDARDS.

An owner must comply with State or local nutritional,

safety, and health standards along with any nutritional

standards established in the meals contract which is

incorporated into the lease. If there are no State or

local nutritional, safety, and health standards, the

owner must:

a\. Request a registered dietician to certify annually

that the project\'s mandatory meals program has

been designed to ensure that each meal provides a

minimum of one-third of the daily recommended

allowances established by the Food and Nutrition

Board of the National Academy of Sciences-National

Research Council.

b\. Submit the registered dietician\'s certification

annually to the HUD Field Office. To avoid a

separate submission, the owner may submit this

certification with other submission items (e.g.,

annual financial statements).

NOTE: It is recommended that a copy of the

certification signed by the registered

dietician be displayed in the central

dining facility.

31.10. PROHIBITION AGAINST DISCRIMINATION.

An owner may not discriminate on the grounds of race,

color, religion, sex, handicap, familial status,

national origin, and age against a tenant or a segment

of the project\'s population.

An owner must administer the project\'s mandatory meals

program in a nondiscriminatory manner and in accordance

with:

a\. Title VI of the Civil Rights Act of 1964, and

b\. The Fair Housing Act, as amended by the Fair

Housing Amendments Act of 1988, and

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c\. Section 504 of the Rehabilitation Act of 1973, and

d\. Age Discrimination Act of 1975, and

e\. Executive Order 11063, and other applicable civil

rights authorities.

31-11. COST OF MEALS.

The mandatory meals program must be operated as a

non-profit operation. Therefore, the amount charged for

the meals is limited to the per capita cost associated

with purchasing the food products, preparing food, and

serving meals.

The following items cannot be included in the cost for

meals:

a\. Operating expenses relating to the purchase or

replacement of equipment, maintenance of the

kitchen or central dining facility (including

labor, utilities and the maintenance of equipment),

or

b\. Project expenses.

31-12. LIMITING THE COSTS OF MEALS.

An owner must take the following action in a and b

below to limit or reduce the cost of mandatory meals:

a\. Allow eligible tenants to pay for meals with food

Stamps.

b\. Participate in surplus food programs (if

available).

c\. Suggested actions to limit or reduce meal costs

are:

o Raise funds from other sources such as

soliciting subsidies from State and local

government.

o Raise donations from businesses or charitable

organizations.

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o Sponsor fund-raisers (if permitted by State or

local jurisdictions).

31-13. ACCOUNTING REQUIREMENTS.

HUD-approved mandatory meals program charges are not

rents and shall not be included in rents. However,

tenants may write one check including both rent and

charges for meals.

a\. Income from the meals cannot be used to subsidize

other project costs.

b\. Rental income (including HUD housing assistance

payments) cannot be used to subsidize the meals

program.

c\. Revenue and expenses from the meals program must be

maintained in separate accounting records (e.g.

meal account must be separate from rents and other

revenue and expenses).

d\. Revenues and expenses of the meals program must be

reported as separate line items on the Profit and

Loss Statement Form HUD 92410 as required in

Handbook 4370.2, Financial Operating and Account

Procedures for Insured Multifamily Projects.

31-14. OPERATING SURPLUSES FROM THE MEALS PROGRAM.

Operating surpluses at the end of the project\'s fiscal

year must be used only toward the mandatory meals

program. Operating surplus cannot be used to offset

other project expenses. An owner must use operating

surpluses to:

a\. Offset previous years, operating deficits created

by the meals program, or

b\. Offset projected increases in charges for meals in

the next fiscal year, or

c\. Reduce meals charges for the next fiscal year.

31-15. USE OF CONTRACT SERVICES.

An owner may contract with a commercial firm to provide

mandatory meals. The commercial firm may operate the

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meals service on a for-profit basis if the contractor

meets the following requirements:

a\. Meals are served in the central dining facility of

the project.

b\. Meals charges are comparable to charges of other

mandatory meals served in HUD-assisted projects in

the local area, or to costs for meals, charges in

comparable non-HUD-assisted projects if there are

no other mandatory meals programs in HUD-assisted

projects in the local area.

SECTION 4. FIELD OFFICE REVIEW OF MEAL CHARGES AND

NONCOMPLIANCE

31-16. THE FIELD OFFICES\' REVIEW OF AN INCREASE IN TENANT

CHARGES.

The HUD Field Office must review and approve an

increase in charges for mandatory meals by comparing

proposed charges to:

a\. Charges for mandatory meals in other HUD-assisted

projects in the local area, or

b\. Charges for meals in comparable non-HUD-assisted

projects in the local area if there is no mandatory

meals program in the area.

31-17. MATERIAL NONCOMPLIANCE.

The Field Office must review and evaluate a material

noncompliance and notify an owner in writing if he/she

is not in compliance with this handbook. The Field

Office must request the owner to take corrective action

within a reasonable amount of time.

In a case where the owner does not take corrective

action, the Field Office may withdraw the approval to

operate the mandatory meals program. Before withdrawal

of the approval, the Field Office must have established

an administrative record to substantiate this decision.

The Field Office may withdraw the approval of the

mandatory meals program in the following cases:

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A. An owner does not comply with State or local law

relating to nutritional, safety, or health

standards.

B. The owner does not operate the mandatory meals

program as a non-profit operation (e.g., project

funds are used to subsidize the meals program, or

income from the meals is used to subsidize other

project costs) .

C. Any other material noncompliance with the handbook

that is continuing and effects the overall

operation of the mandatory meals program.

31-18. WITHDRAWAL OF THE APPROVAL OF THE MANDATORY MEALS

PROGRAM.

If the owner does not take corrective action within a

reasonable amount of time, the Field Office may

withdraw the Department\'s approval to operate the

mandatory meals program within the project.

Once the mandatory meals program approval is withdrawn,

the owner must provide written notification within 30

days to all tenants stating that the mandatory meals

program is no longer mandatory.

31-19. APPEAL PROCESS.

An appeal of the Field Offices, decision to withdraw

the approval of the mandatory meals program must be

made in writing to the Director of Housing Management.

This request must outline the reasons for the appeal.

If the appeal is denied by the Director of Housing

Management, the owner may make an appeal request to the

Regional Director of Housing. The Decision made by the

Regional Director of Housing is final.

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