HUD Handbook 4350.3 § 2-43
Limits on Obligations to Provide Reasonable Accommodations (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
Operative Text
A. Fundamental Alteration. Owners are not required to take any action that would
result in a fundamental alteration in the nature of the program. A fundamental
alteration is a change so significant that it alters the essential nature of a
provider’s operations. For a detailed explanation of fundamental alteration, see
Exhibit 2-5.
B. Undue Financial and Administrative Burden. The determination of undue
financial and administrative burden must be made on a case-by-case basis,
involving various factors, such as the cost of the reasonable accommodation, the
financial resources of the provider, the benefits the accommodation would
provide to the requester, and the availability of alternative accommodations that
would adequately meet the requester’s disability–related needs. For examples of
undue financial and administrative burden, see Exhibit 2-6.
C. Owners are not required to make structural changes that would impose an undue
financial and administrative burden, even if alternatives to making housing
programs or activities readily accessible to and usable by persons with
disabilities are not effective.
1. HUD Field Offices will consider a request to use the residual receipts
account to pay for alterations under Section 504.
2. Under HUD requirements, the reserve for replacement account is to be
used for replacing existing items. (See Handbook 4350.1, Multifamily
Asset Management and Project Servicing.) If HUD approval is received
for using the reserve for replacement account for any other purpose (e.g.,
Section 504 alterations), then the account must be replenished through
property rental income, generally within one year.
D. When a request for a reasonable accommodation will result in an undue financial
and administrative burden, the owner must provide all other needed
accommodations up to the point at which further accommodations would result in
an undue financial and administrative burden.
Example – Reasonable Accommodation that Creates an Undue Financial and Administrative
Burden
Project A is a 100-unit HUD assisted project. A tenant in this project needs more than $5,000 in
structural changes for his unit to be accessible to him. The owner of Project A could not cover the
costs of such extensive structural changes without a rent increase. Residual receipts are insufficient
to cover the changes, and the replacement reserve cannot be replenished within one year. The
project does not have sufficient administrative staff to explore numerous possibilities for obtaining
funding for such structural changes. Generally an owner would not be required to make such
extensive structural changes because of the burden involved. Note that the amount an owner is
required to spend to make units accessible could vary based on the size of the project – what the
owner of a large project may be able to spend in making units accessible may be an undue burden on
smaller projects.
Example – Reasonable Accommodation that Does Not Create an Undue Financial and
Administrative Burden
An applicant with a mobility impairment wants to live in a dwelling unit in a particular rental housing
property. The owner requires all tenants to hand-deliver their rent to the rental office. The unit is
almost a block away from the rental office, but there is a mailbox located just a few yards from the unit
entry door. Under 24 CFR 100.204, the owner or manager of an apartment complex must permit the
applicant to mail the rent payment to the rental office. This policy accommodation would not pose an
undue financial and administrative burden on the owner and allows the applicant to have equal
opportunity to use and enjoy the unit.
E. For other guidance on how to determine whether a reasonable accommodation
would result in an undue financial and administrative burden, refer to HUD
Handbook 4350.1, Multifamily Asset Management and Project Servicing.HUD Handbook 4350.3 REV-1 CHG-4 § 2-43 establishes that the obligation to provide reasonable accommodations for persons with disabilities is not unlimited. Two key limits apply: owners are not required to make changes that would fundamentally alter the essential nature of their housing program, and they are not required to take actions that impose an undue financial or administrative burden. When a requested accommodation does cross the undue-burden threshold, the owner is still expected to provide all other accommodations that fall short of that threshold.
Plain English — not legal advice.
Under HUD Handbook 4350.3 REV-1 CHG-4 § 2-43, compliant operators evaluate each reasonable accommodation request individually, weighing factors such as the cost of the change, the property's financial resources, the benefit to the requester, and whether alternative accommodations could adequately address the disability-related need. Operators generally document this case-by-case analysis and explore available funding sources—such as residual receipts accounts or HUD Field Office guidance on Section 504 alterations—before concluding that a burden exists. Even when a specific request is deemed an undue burden, operators continue to provide all other accommodations that do not reach that threshold.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 2-43 of HUD Handbook 4350.3 REV-1 CHG-4 makes clear that while owners may decline requests that impose an undue financial or administrative burden or that would fundamentally alter their program, they cannot use these exceptions as a blanket refusal of all accommodation requests. Tenants and applicants in HUD-assisted housing who believe a request was improperly denied may raise the denial as a fair housing concern, file a complaint with the U.S. Department of Housing and Urban Development, or contact a local tenant-rights or fair housing organization for general information about available options. Consulting a housing counselor or legal aid resource familiar with Section 504 and fair housing requirements can help clarify what documentation or alternative accommodations may be relevant.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 30, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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