HUD Handbook 4350.3 § 3-19
Eligibility Requirements for Admission to Elderly Projects, By Program (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
Operative Text
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.HUD Handbook 4350.3 REV-1 CHG-4 § 3-19 sets out occupancy eligibility rules for elderly housing projects under several program types not covered by Title VI, Subtitle D of the Housing and Community Development Act of 1992. Depending on the program type—Section 231, Section 221(d)(3) with Rent Supplement, or prepaid projects with formerly HUD-insured mortgages—between 50% and 100% of units may be reserved for elderly persons or families, while units specifically designed for persons with disabilities carry their own distinct occupancy rules. A key principle running through all covered program types is that owners generally may not give elderly persons with disabilities priority over nonelderly persons with disabilities when it comes to units designed to meet accessibility needs.
Plain English — not legal advice.
Operators of elderly housing projects subject to HUD Handbook 4350.3 REV-1 CHG-4 § 3-19 are generally expected to maintain clear occupancy designations that reflect the applicable program type—whether Section 231, Section 221(d)(3) with Rent Supplement, or a prepaid project with a formerly HUD-insured mortgage. For units specifically designed for persons with disabilities, compliant operators typically give preference to any applicant of any age who needs the accessible features of those units, without elevating elderly applicants over nonelderly applicants in that queue. Owners who wish to serve a higher percentage of persons with disabilities than their Regulatory Agreement specifies should seek written approval from HUD before doing so, as outlined in this provision.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under HUD Handbook 4350.3 REV-1 CHG-4 § 3-19, tenants and applicants with disabilities—regardless of age—have a recognized right to be considered for units specifically designed to meet accessibility needs, and owners are not permitted to give elderly persons with disabilities automatic priority over nonelderly persons with disabilities for those units. Applicants who believe they have been improperly passed over for an accessible unit in a covered elderly project may wish to review the applicable definition of a person with a disability referenced in Figure 3-5 of the same handbook. Those who believe their rights under this provision have been violated can consider filing a complaint with the U.S. Department of Housing and Urban Development or reaching out to a local tenant-rights organization for general guidance on available options.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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