HUD Handbook 4350.3 § 1-2

A.     Applicable Programs

              The requirements and procedures described in this handbook apply to each
              HUD-subsidized multifamily housing program listed in Figure 1-1.

       B.     State Agency Financed Properties

              For HUD-subsidized properties financed by state agencies, this handbook covers
              only the applicable HUD requirements. Owners of these properties are subject to
              additional requirements established by states and their designated housing
              finance or other agencies.

              1.      State agencies may enforce state requirements, as long as they do not
                      conflict with this handbook or HUD regulations.

              2.      State agencies must obtain written HUD approval before changing any of
                      the HUD forms required by this handbook.

Figure 1-1: Programs Subject to This Handbook

           Section 221(d)(3) Below-Market Interest Rate (Section 221(d)(3) BMIR)
           Section 236
           Rental Assistance Payment (RAP)
           Rent Supplement
           Section 8 Project-Based Assistance
                New Construction

                State Agency Financed (generally are New Construction or Substantial
                Rehabilitation projects)

                Substantial Rehabilitation

                Section 202 Projects with Section 8 Assistance (Section 202/8)

                Rural Housing Section 515 Projects with Section 8 Assistance (RHS Section
                515/8)

                Loan Management Set-Aside (LMSA)

                Property Disposition Set-Aside (PDSA)

           Section 202 with 162 Assistance – Project Assistance Contracts (Section 202 PACs)
           Section 202 with Project Rental Assistance Contracts (Section 202 PRACs)
           Section 202 without Assistance (Income Limits Only)
           Section 811 with Project Rental Assistance Contracts (Section 811 PRACs)

C.     How Applicability Varies

              Not all requirements apply to all properties or tenants. Furthermore, some
              properties are assisted under multiple programs and are subject to multiple sets
              of requirements.

              1.       Applicability can vary by:

                       a.       Type of program (e.g., Section 236 versus Section 8);

                       b.       Type of Section 8 assistance (e.g., Loan Management Set-Aside
                                versus New Construction);

                       c.       Date that subsidy contracts took effect or were executed;

                       d.       Date a tenant moved in or first received subsidy; and

                       e.       Date a tenant was converted to Section 8 assistance.

2.      When applicability does vary, a paragraph or subparagraph in this
                      handbook entitled “Applicability” will be included to indicate which
                      projects, units, or tenants are subject to or exempt from the requirement.
                      The variation will be described in subsequent paragraphs.

       D.     Programs and Properties Not Subject to This Handbook

              This handbook does not apply to:

              1.      HUD-owned properties;

              2.      Section 8 Moderate Rehabilitation Program;

              3.      Public housing;

              4.      Housing Choice Voucher Program;

              5.      Enhanced Voucher Program; and

              6.      Unassisted market rate properties and health care facilities.

              7.      *HUD-Veterans Affairs Supportive Housing*

              8.      *Mainstream Vouchers*

       E.     Compliance

              The failure of owners to perform required functions as prescribed in this
              handbook may result in civil money penalties as detailed in 24 CFR part 30.
              Such action does not preclude the application of administrative, as well as
              criminal remedies where warranted. Further information concerning program
              enforcement can be found in HUD Handbook 4350.1, Multifamily Asset
              Management and Project Servicing.