HUD Handbook 4350.3 § 3-20
Eligibility for Admission to Individual Section 202, Section 202/8, Section (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
Operative Text
202 PAC, and Section 202 and Section 811 PRAC Projects
A. Section 202 (SH) projects serve the elderly as defined in Definition B in Figure 3-
6.
B. Section 202/8 projects for the elderly serve:
1. Elderly families as defined in Definition B in Figure 3-6; and
2. For 10% of the units which are accessible, persons (elderly or nonelderly)
who require the accessible features of the unit.
NOTE: When assigning accessible units, owners must treat equally
elderly and nonelderly applicants with disabilities who require the
accessible features of the unit, unless one applicant has an owner-
adopted restriction or preference. See paragraphs 3-18 B and 4-6 C.
C. Section 202/8 and Section 202 PAC projects for persons with disabilities serve
one or more of the following statutorily recognized categories of disability based
upon the population to be served as described in the application for funding and
defined in Definition H in Figure 3-6.
1. Persons with physical disabilities;
2. Persons with development disabilities; and/or
3. Persons with chronic mental illness
D. Section 202 PRAC projects serve a household composed of one or more
persons at least one of whom is 62 years of age or more at the time of initial
occupancy. See definition C in Figure 3-6.
E. Section 811 projects serve one or any combination of the following statutorily
recognized categories of disability based upon the population to be served as
described in the application for funding and defined in definition H in Figure 3-6.
1. Persons with physical disabilities;
2. Persons with developmental disabilities; or
3. Persons with chronic mental illness.
In addition, sponsors of Section 811 projects may propose in their applications to
restrict occupancy to a subcategory of one of the statutorily recognized
categories of disability (e.g., AIDS is a subcategory of physical disability),
provided they do not deny occupancy to any otherwise qualified person with a
disability in the overall category that the subcategory falls under.
F. Applicants with disabilities who meet the eligibility requirements for admission to
a Section 202/8 project for the elderly or for persons with disabilities or a Section
811 project for persons with disabilities cannot be excluded on the basis of
having another disability in addition to the one served by the particular project.
Examples – Eligible Applicants with Disabilities
An owner of a project with accessible units cannot exclude an otherwise
eligible person with a disability requiring an accessible unit, who also has
another disability such as chronic mentally illness.
An owner of a project for the chronically mentally ill cannot exclude an
otherwise eligible person from the project because of his or her physical
disability.
G. Leasing Units to Non-Eligible Families
1. If the owner is temporarily unable to lease all units to eligible families, he
may request HUD approval to lease one or more units to families that do
not meet the income eligibility requirements of 24 CFR Part 5 as follows:
a. Section 202/8 or Section 202 PAC
(1) A written request for a waiver must be submitted to the
HUD Field Office in accordance with Exhibit 3-1.
(2) The request must provide documentation of the owner’s
continuing marketing efforts to attract eligible applicants
and that an increased level of occupancy will prevent
financial default and foreclosure.
(3) HUD’s approval of a request must be for a limited time –
initially one year. HUD may impose other terms and
conditions to the approval that are consistent with program
objectives and necessary to protect the loan.
(4) HUD may reduce the number of units covered by either a
HAP or PAC contract if the owner does not comply with the
requirements for leasing to families that do not meet the
eligibility requirements; or, if HUD determines that the
owner’s inability to lease to families that do not meet the
eligibility requirements is not a temporary problem.
b. Section 202 PRAC or Section 811 PRAC
The owner’s written request providing the information specified in
Situation 6 of Exhibit 3-1 must be submitted to HUD Headquarters
with the recommendation of the HUD Field Office.
2. If permitting over-income families to lease one or more units is not
sufficient to solve the vacancy problem, in order to protect the financial
viability of the project, an owner may request approval to serve a
population other than the one(s) it was approved to serve.
a. A request to waive the age requirement for a Section 202 project
for the elderly must provide documentation of the owner’s
continuing marketing efforts to attract eligible applicants and that
an increased level of occupancy will prevent financial default and
foreclosure. The request with the recommendation of the HUD
Field Office is sent to the Multifamily Hub for approval except that
in the case of a Section 202 PRAC project, the request and
recommendation must be sent by the Multifamily Hub to
Headquarters for approval.
H. For projects serving persons with disabilities, the owner must apply to the HUD
Field Office for permission to serve a different disabled population. The owner
must demonstrate a plan to the HUD Field Office that shows the following:
1. The owner can adequately serve the proposed disabled population based
on past experience in serving the proposed population;
2. Funds are available from the state or local government or from other
outside sources to pay for any necessary supportive services and a
written commitment for funding is provided by the source or the owner;
3. The need for the original occupancy category no longer exists;
4. The current tenants can choose to remain in the project or move. If the
tenants remain, the owner can begin housing persons in the newly
approved category only as vacancies occur; and
5. There are sufficient subsidized units available in the area to house current
tenants who are willing to move, as well as to house individuals who no
longer qualify for the housing because of the changed category.
6. The request and recommendation of the HUD field office is sent to the
HUD Multifamily HUB Director for approval.HUD Handbook 4350.3 REV-1 CHG-4 § 3-20 establishes which households are eligible to live in federally assisted Section 202, Section 202/8, Section 202 PAC, and Section 811 housing programs. Each program type is tied to a specific population—elderly households, persons with physical disabilities, developmental disabilities, or chronic mental illness—based on the project's original funding application. The provision also sets out a formal waiver process through which owners may, under limited circumstances and with HUD approval, temporarily lease units to households that do not meet the standard eligibility criteria in order to protect a project's financial viability.
Plain English — not legal advice.
Operators of Section 202, Section 202/8, Section 202 PAC, and Section 811 properties work within the eligibility categories defined in HUD Handbook 4350.3 REV-1 CHG-4 § 3-20, which ties admissions to the population described in the original funding application. Compliant owners document their marketing efforts to eligible applicants and, when vacancies persist, submit written waiver requests to the appropriate HUD Field Office or Headquarters before leasing to over-income or otherwise ineligible households. Owners seeking to serve a different disabled population must demonstrate to HUD that they can adequately support the new group, that funding for supportive services is secured, and that current tenants are protected with the option to remain or relocate.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
HUD Handbook 4350.3 REV-1 CHG-4 § 3-20 protects applicants with disabilities from being turned away solely because they have an additional disability beyond the one a project was designed to serve—for example, a person with a physical disability cannot be excluded from a project for persons with chronic mental illness if they are otherwise eligible. Tenants and applicants who believe they have been improperly denied admission based on a secondary disability or on criteria inconsistent with the project's approved population may raise that concern as a defense in any administrative proceeding or file a complaint with HUD. Tenant-rights organizations and HUD's fair housing resources can help individuals understand whether a denial aligns with the eligibility rules set out in this provision.
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 25, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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