HUD Handbook 4350.3 § 2-32

A.        Applicability

                 The requirements of this paragraph apply to the following projects and dwelling
                 units:

6/07                                              2-28                           HUD Occupancy Handbook
                                                                                 Chapter 2: Civil Rights and
                                                                             Nondiscrimination Requirements

Requirements for Persons with Disabilities

Subsection 2:
Policies and Procedures to Ensure
Nondiscrimination and Promote Accessibility

1.       Projects with five or more units.

                           NOTE: HUD recommends that owners of projects with fewer than five
                           units follow these policies to the extent practicable.

                  2.       Units made accessible under Section 504 as described in Subsection 3
                           and units designed for disabled families/households when the project was
                           approved for funding.

         B.       Eligibility for Accessible Units

                  1.       A percentage of units in most properties contain accessible features.
                           Eligibility for these accessible units may be limited to a specific population
                           (e.g., persons with mobility impairments). (See Chapter 3, Section 2, for
                           more information about project eligibility.)

                  2.       Owners must place applicants eligible for an accessible unit on the
                           waiting list in accordance with the property’s waiting list procedures. (See
                           Chapter 4, Section 3, for more information about waiting list
                           management.)

                  3.       Owners may not prohibit an eligible family with a member who has a
                           disability from accepting a suitable nonaccessible unit if no accessible
                           unit is available when the family reaches the top of the waiting list.
                           Owners must make physical alterations to the nonaccessible unit as a
                           reasonable accommodation, unless the alterations would result in an
                           undue financial and administrative burden.

                  4.       If an appropriate-size accessible unit is not available, owners may house
                           an applicant needing an accessible unit in a larger accessible unit in order
                           to maximize the use of the accessible features.

         C.       Order When Assigning Accessible Units

                 Section 504 requires that owners take reasonable, nondiscriminatory steps to
                 maximize the use of accessible units by eligible individuals whose disability
                 requires the accessibility features of a particular unit. As part of this requirement,
                 owners must assign available accessible units to tenants/applicants in the
                 following order:

                  1.       When there is a current tenant or qualified applicant with a household
                           member requiring accessibility features of the unit:

                           a.       Current Tenants. Owners must first offer the unit to an individual
                                    with disabilities currently residing in a nonaccessible unit in the
                                    same project or comparable project under common control, who
                                    requires the features of the unit;
HUD Occupancy Handbook                               2-29                                             6/07
Chapter 2: Civil Rights and
Nondiscrimination Requirements

                                                              Additional Nondiscrimination and Accessibility
                                                                 Requirements for Persons with Disabilities

                                                                                             Subsection 2:
                                                                         Policies and Procedures to Ensure
                                                                Nondiscrimination and Promote Accessibility

b.      Applicants with Disabilities. If no current tenants require the
                                special features of the accessible unit, the owner must then offer
                                the unit to the next qualified applicant on the waiting list with a
                                family member who needs the features of the accessible unit.

                 2.     When neither a current tenant nor a qualified applicant requires the
                        features of the available accessible unit:

                        a.      Owners may offer the unit to another tenant or applicant in a
                                manner consistent with the property’s tenant selection policy and
                                should incorporate into the lease an agreement that the tenant will
                                move to a nonaccessible unit of the proper size within the same
                                property when one becomes available. The lease should state
                                whether the tenant or the owner will pay for the cost of such
                                moves. (See paragraph **3-23** on occupancy standards and
                                overcrowded and underutilized units, and paragraph 4-4 C on
                                tenant selection plans.)

                        b.      In the case where the members of the tenant household who
                                required the special features of the accessible unit no longer
                                reside in the unit, and where the lease permits, owners should
                                require the remaining members of the household to move to a unit
                                without accessibility features. The Department strongly suggests
                                that owners incorporate this provision as an addendum to the
                                lease to avoid placing themselves in a situation of having to retrofit
                                additional units.