HUD Handbook 4350.3 § 3-19

Type Not Covered by Title VI, Subtitle D of the Housing and Community
          Development Act of 1992

          A.          Section 231 Projects with Section 8 (not covered by Section 651) and/or
                      Rent Supplement Contracts

                      The Section 231 program is an elderly housing program that provided that some
                      units may be specifically designed for persons with physical disabilities. A
                      preference could be provided for those individuals who require the features of
                      those units.

                      1.     Projects or parts of projects for the elderly.

a.      A minimum of 50% of the units in a Section 231 project and a
                                     maximum of 100% of the units will have been designated at
                                     development as reserved for elderly persons or elderly families.

                             b.      Any units specifically designated for elderly families must be
                                     occupied only by such families.

                             c.      Elderly persons with disabilities are eligible to live in elderly units
                                     in Section 231 projects.

                      2.     Units designed for persons with disabilities.

                             a.      Owners must give a preference for any unit designed for persons
                                     with disabilities to those persons with disabilities of any age who
                                     need the features of the units.

                             b.      The applicable definition of a person with a disability is referenced
                                     in Figure 3-5.

                             c.      Owners that wish to serve a greater percentage of persons with
                                     disabilities than the percentage specified in the Regulatory
                                     Agreement or other loan agreements may do so upon receiving
                                     written approval from HUD.

          B.          Section 221(d)(3) with a Rent Supplement Contract;

                      1.     Projects designed entirely for the elderly must restrict occupancy to
                             elderly families or elderly persons. By their very nature, these projects
                             have no units designed or reserved for nonelderly persons with
                             disabilities.

                      2.     Projects designed in part for the elderly, which have a specific number of
                             units with accessible features designed for persons with disabilities, may
                             restrict occupancy of units without accessible features to elderly families.
                             Those projects cannot restrict occupancy to the elderly for those units
                             designed for persons with disabilities as nonelderly persons with
                             disabilities are also eligible to occupy those units. For units in the project
                             that are designed for persons with disabilities who need accessible units,
                             owners may not give elderly persons with disabilities priority over
                             nonelderly persons with disabilities.

          C.          Prepaid Projects with Formerly HUD-Insured Mortgages Under Section 221,
                      Section 231, Section 8 not covered by Title VI D or Property Disposition
                      Set-Aside that does not involve substantial rehabilitation

                      Owners may restrict occupancy in the elderly units in these projects to only
                      elderly families, but are not required to do so. These projects may also have
                      accessible units. For the accessible units:

1.     Owners may not give elderly persons with disabilities priority over
                             nonelderly persons with disabilities.

                      2.     A member of the family must meet the definition of "a person with a
                             disability" and have a disability that requires the accessible features of the
                             unit.