HUD Housing Notice § 2016-09
Streamlining Administrative Regulations for Multifamily Housing Programs (HUD Housing Notices)
HUD guidance — not codified law
In Force
Verified 10/6/2026 · Next check 10/13/2026
effective 10/6/2026FederalAffordable Housing ProgramsOperative Text
HUD Housing Notice § 2016-09
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-8000
ASSISTANT SECRETARY FOR HOUSING-
FEDERAL HOUSING COMMISSIONER
Special Attention of: Notice: H-2016-09
Multifamily Hub Directors Issued: October 3, 2016
Multifamily Program Center Directors
Rural Services (RHS) Directors Expires: This Notice remains in
effect
Supervisory Housing Project Managers until amended, revoked, or
Housing Project Managers superseded.
Contract Administrators
Multifamily Owners and Management Agents
Subject: Streamlining Administrative Regulations for Multifamily Housing Programs
I. Purpose
This Notice provides implementation guidance for provisions included in the final rule
titled “Streamlining Administrative Regulations for Public Housing, Housing Choice
Voucher, Multifamily Housing, and Community Planning and Development Programs,”
also known as the “Streamlining Rule.” Only the provisions that apply to programs
administered by the Department of Housing and Urban Development’s (HUD) Office of
Multifamily Housing are described in this Notice.
All pertinent provisions of the Streamlining Rule went into effect on April 7, 2016.
II. Applicability
This Notice applies to the following programs:
A. Project-based Section 8
1. New Construction
2. State Agency Financed
3. Substantial Rehabilitation
4. Section 202/8
5. Rural Housing Services (RHS) Section 515/8
6. Loan Management Set-Aside (LMSA)
7. Property Disposition Set-Aside (PDSA)
B. Section 101 Rent Supplement
C. Section 202/162 Project Assistance Contract (PAC)
D. Section 202 Project Rental Assistance Contract (PRAC)
E. Section 202 Senior Preservation Rental Assistance Contracts (SPRAC)
F. Section 811 PRAC
G. Section 811 Project Rental Assistance Demonstration units under a Rental
Assistance Contract (PRA)
H. Section 236
I. Section 236 Rental Assistance Payments (RAP)
J. Section 221(d)(3) Below Market Interest Rate (BMIR)
The applicability of specific provisions of the Streamlining Rule is detailed below.
III. Background
The Streamlining Rule will allow for improvements in program operations that reduce
costs and enhance efficiency while maintaining HUD’s core program oversight functions.
The rule was published on March 8, 2016 and can be viewed at
https://www.federalregister.gov/articles/2016/03/08/2016-04901/streamlining-
administrative-regulations-for-public-housing-housing-choice-voucher-multifamily.
There are 16 programmatic changes found in this final rule, four of which apply to
Multifamily Housing programs. The direction below supersedes prior guidance on these
topics. HUD Handbook 4350.3, REV-1 and the TRACS MAT Guide will be updated at a
future date to account for these changes in policy.
VI. 24 CFR 5.216 – Verification of Social Security Numbers
A. Applicability
This provision applies to the Rent Supplement, Section 8, Section 221(d)(3),
Section 221(d)(5), Section 236, Section 202, and Section 811 programs.
B. Change to Regulation
This provision modifies the regulation at 24 CFR 5.216 as it applies to program
applicants (as differentiated from program participants), and brings the guidance
for applicants more closely in line with longstanding guidance for program
participants (at 24 CFR 5.216(e)(2)(ii)). The regulation at 24 CFR 5.216 now
permits owners to accept applicant households that include an applicant family
member who is under the age of 6, who does not yet have a Social Security
Number (SSN) assigned to him/her, and was added to the household 6 months or
less from the move-in date. As a result of this change, the owner or owner agent
(O/A) must no longer deny occupancy to such applicant households.
C. Implementation
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When an applicant household with the above composition is housed from the
waiting list, the O/A must give the household 90 days from the effective date of
their move-in certification to provide documentation of the SSN for the child. An
additional 90-day period must be granted by the O/A if the failure to provide
documentation of a SSN is due to circumstances that are outside the control of the
household. Examples include but are not limited to: delayed processing of the
SSN application by the SSA, natural disaster, fire, death in family, etc. During
this time period, the child is to be included as part of the household and will
receive all of the benefits of the program in which the child is involved, including
the dependent deduction. An interim recertification must be processed once the
household discloses and provides verification of the SSN for this individual.
D. TRACS Input
TRACS currently has the ability to accept SSNs that meet the requirements of the
new regulation, however, purchased site software used by O/As to transmit data to
TRACS may not yet have this ability. Because of this, O/As are instructed to
input SSNs as described in the two paragraphs below.
1. Pre-Software Change
When completing the SSN field in TRACS for a child who has been added
to the applicant household 6 months or less from the move-in date and has
not yet been assigned a SSN, the owner must input a SSN of “999990000”
which will permit the household to receive subsidy. This SSN should only
be used for move-in (MI) and initial (IC) certifications (see exceptions in
Section VI.D.3 of this Notice). When a similar individual is added to an
existing household, current guidance instructing use of a “999999999”
SSN with an “M” exception code must be followed.
2. Post Software Change
Software developers are working to update their software which will allow
the system to accommodate this change in regulation. Once owners are
informed their software has been updated, all SSNs of “999990000” must
be edited according to the procedure below through an interim
recertification (IR). This will allow for accurate tracking by HUD.
When completing the SSN field in TRACS for a child who has not yet
been assigned a SSN, the owner must input a SSN of “999999999” with a
“M” SSN exception code. These inputs will permit the flow of subsidy to
the household. At the time of the disclosure of the SSN, an interim
recertification must be processed changing the child’s SSN from the
“999999999” placeholder to the child’s verified SSN and removing the
SSN exception code. More information relating to SSN input in TRACS
can be found in the TRACS MAT Guide located at
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http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/t
rx/trxdocs.
3. Exceptions for inputting a SSN of “999990000” on an Interim (IR) or
Annual (AR) Recertification
There are cases after the MI or IC where an IR or AR could be submitted
before the end of the time required to obtain an SSN outlined in Section
VI.C of this Notice. Examples for an IR include but are not limited to:
increase or decrease of income, household addition or subtraction, etc.
An example for an AR includes owners that have a mass recertification
schedule and the recertification is effective before an SSN has been
obtained. If such an IR or AR is needed follow the Pre-Software Change
or Post Software change rules as applicable.
a. If the owner is in a Pre-Software change situation, the SSN field
would be filled with “999990000” and there would be no exception
code.
b. If the owner is in a Post Software change situation, the SSN field
would be filled with “999999999” and the exception code would be
“M.”
E. Penalties for Non-Disclosure of a Household Member’s SSN
The penalty associated with the failure to disclose and provide verification of a
household member’s SSN is termination of tenancy. As stated in HUD Handbook
4350.3, REV-1, paragraph 8-13.A.6, the owner must terminate the tenancy of a
tenant and the tenant’s household if the SSN disclosure and verification
requirements for all household members are not met in the specified timeframe.
Proration of assistance is not permitted for household members who are required
to obtain SSN but fail to disclose and provide verification of this SSN.
F. Housing Assistance Payments During Eviction Proceedings
An owner may continue to receive housing assistance payments for the unit
occupied by the family in question during eviction proceedings and these
payments must continue until the eviction is upheld and the household is actually
evicted. This practice is consistent with existing procedure and FAQ 143 for
HUD Handbook 4350.3, REV-1.
In the case of evictions not upheld through judicial proceedings the family is
permitted to continue occupying the assisted unit and the owner will continue to
receive housing assistance payments for that unit. The SSN will be entered as
described in Paragraph C.2 above until a SSN is obtained.
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G. Implementation
The regulatory change was effective beginning April 7, 2016. Site software used
by the O/A to transmit data to TRACS is expected to be updated by February
2017.
V. 24 CFR 5.603 – Definition Change – Extremely Low Income
A. Applicability
This provision applies to the Section 8 program.
B. Change to Regulation
The regulation at 24 CFR 5.603 has been changed to reflect the new statutory
definition of an extremely low-income family in accordance with Section 238 of
HUD’s FY 2014 Appropriations Act, which amended Section 3 of the United
States Housing Act of 1937 (42 U.S.C. 1437a). Previously, there was no statutory
definition of extremely low income families, and the regulatory definition did not
take the federal poverty level into consideration. The revision defines an
extremely low-income family as a family whose income does not exceed the
higher of 30 percent of the area median income or the federal poverty level. The
federal poverty level provision in the definition of an extremely low-income
family does not apply in the case of public housing agencies or projects located in
Puerto Rico or any other territory or possession of the United States.
C. Posting of Income Limits
HUD determines income limits, including the income limit for the newly defined
extremely low-income family, for all areas in the United States annually and
publishes these income limits on the HUDUSER website at
www.huduser.gov/portal/datasets/il.html. O/As do not need to research or
determine the federal poverty level, or income limits in general, as all HUD-
published extremely low-income dollar amounts are calculated in accordance with
the new definition and are posted for each region.
D. Implementation
Section 8 property owners must use the extremely low-income limit when
selecting applicants to fulfill the income-targeting requirements described in
paragraph 4-5 of HUD Handbook 4350.3, REV-1. As detailed in the TRACS
MAT Guide, the extremely low-income limit is to be populated into software used
by owners in processing tenant data.
The definition change was established as HUD policy on July 1, 2014, through
Federal Register Notice (79 FR 35940) HUD Implementation of Fiscal Year 2014
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Appropriations Provisions on Public Housing Agency Consortia, Biennial
inspections, Extremely Low-Income Definition and Utility Allowances. It is
reflected in published income limits now being utilized by O/As.
VI. 24 CFR 5.609 – Definition Change – Exclusion of mandatory education fees from
income
A. Applicability
This provision applies to the Section 8 program (other than Moderate
Rehabilitation).
B. Change to Regulation
The regulation at 24 CFR 5.609 amends the definition of “income” to exclude
from calculations of individual income any financial assistance received for
mandatory fees and charges (in addition to tuition).
C. Background
The change is made to conform regulations to language first enacted in the FY
2012 HUD Appropriations Act, and continued in each subsequent appropriation.
Current law requires that any amount of financial assistance an individual
receives in excess of amounts received for tuition and other required fees and
charges be considered income when determining an applicant’s or participant’s
annual income.
D. Implementation
Implementation guidance for this change is found in Housing Notice 2015-12
which elaborates on the phrase “and any other required fees and charges” by
amending the term “tuition.” In addition to the new definition of tuition, the
Notice provides examples for calculating income using this new definition and
explains how to verify tuition and fees.
The definitions promulgated though Notice H 2015-12 continue to be in effect for
multifamily properties.
VII. 24 CFR 5.657 – Section 8 project-based assistance programs: Reexamination of
family income and composition
A. Applicability
This provision applies to the Section 8 (other than Moderate Rehabilitation),
Section 202, and Section 811 programs.
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B. Change to Regulation
The regulation at 24 CFR 5.657 – applicable to project-based Section 8
participants only – has changed to permit an owner to use a streamlined income
determination for any family member with a fixed source of income. A
streamlined income determination is made by applying, for each fixed-income
source, either the verified cost of living adjustment (COLA) or the current rate of
interest to the previously verified or adjusted-income amount. Any non-fixed
sources of income must be verified using third party verification as described in
Chapter 5, Section 3 of HUD Handbook 4350.3, REV-1.
C. Implementation
1. O/As have the discretion to adopt a streamlined income determination for
fixed sources of income belonging to current project-based Section 8
program participants. This method may be used to adjust income on the
two annual recertifications following the annual recertification (or move-
in certification) in which the income was verified through third-party
verification. The O/A must verify all income, both fixed and non-fixed,
every third year.
2. In situations where a household has a combination of fixed income and
non-fixed income, O/As can use the streamlined income determination for
the fixed income and must verify all non-fixed income through third party
verification. Streamlined income determination is not applicable for
individuals who are not yet participants.
3. Tenants may instruct owners not to use the streamlined income
determination to determine their income. In that case, third party
verification will be required for all income sources.
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Example
Fixed Income Third Party Verify
Move-in
3/1/2017
Certification
Non-Fixed Income Third Party Verify
Use of Adjustment
Fixed Income
Annual Factor Permitted
3/1/2018
Recertification
Non-Fixed Income Third Party Verify
Use of Adjustment
Fixed Income
Annual Factor Permitted
3/1/2019
Recertification
Non-Fixed Income Third Party Verify
Fixed Income Third Party Verify
Annual
3/1/2020
Recertification
Non-Fixed Income Third Party Verify
Use of Adjustment
Fixed Income
Annual Factor Permitted
3/1/2021
Recertification
Non-Fixed Income Third Party Verify
Use of Adjustment
Fixed Income
Annual Factor Permitted
3/1/2022
Recertification
Non-Fixed Income Third Party Verify
Fixed Income Third Party Verify
Annual
3/1/2023
Recertification
Non-Fixed Income Third Party Verify
D. Definition of Fixed Income
When implementing a streamlined income determination, an O/A must first
determine if the source of income is fixed and document how this determination
was made. This determination is only needed prior to the first time streamlined
income determination is used.
For purposes of this Notice, the term “fixed income” includes income from:
Social Security payments, to include Supplemental Security Income (SSI)
and Supplemental Disability Insurance (SSDI);
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Federal, state, local, and private pension plans; and
Other periodic payments received from annuities, insurance policies,
retirement funds, disability or death benefits, and other similar types of
periodic payments.
E. Determination and Application of the Adjustment Factor
To apply an adjustment factor (verified COLA or the current rate of interest to the
previously verified or adjusted-income amount) to a fixed source of income, the
O/A must first verify all adjustment factors from either a public source or from
tenant-provided, third party generated documentation. In the absence of such
verification for any source of fixed income, third-party verification of income
amounts must be obtained. Once an adjustment factor is obtained, verified, and
documented in the tenant file, the O/A will then apply the applicable factor to the
previously verified or adjusted income amount. This amount is then recorded as
income on the household’s form HUD-50059.
F. Effect on Use of the Enterprise Income Verification (EIV) System
In the years when an O/A elects to utilize streamlined income determination, the
fixed source of income does not have to be verified using the EIV system. The
O/A may, however, use the EIV system at his/her discretion and as indicated in
the property’s policies and procedures. All non-fixed sources of income remain
subject to full income-verification requirements.
G. Additional Information
The following regulations have been updated to permit an owner to follow the
provisions of 24 CFR 5.657(d): 880.603, 884.218, 886.124, 886.324, 891.410,
891.610, and 891.750.
VIII. Paperwork Reduction Act
The information collection requirements contained in this document have been approved
by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of
1995 (44 U.S.C. 3501-3520) and assigned OMB control numbers 2502-0204. In
accordance with the Paperwork Reduction Act, HUD may not conduct or sponsor, and a
person is not required to respond to, a collection of information unless the collection
displays a currently valid OMB control number.
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IX. Contact
For more information on the guidance provided in this Notice, please contact Danielle
Garcia in the Office of Asset Management and Portfolio Oversight at
Danielle.D.Garcia@hud.gov.
________________________________________
Edward Golding
Principal Deputy Assistant Secretary for Housing
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Source: Legislative text reproduced verbatim
Plain English
Housing Notice H-2016-09 implements the HUD Streamlining Rule (effective April 7, 2016) for several multifamily housing programs, including project-based Section 8, Section 202, Section 811, Section 236, and related programs. The notice makes four key regulatory changes: it allows applicant households with children under age 6 who lack a Social Security Number to be housed under certain conditions; it updates the definition of 'extremely low income' to reflect the higher of 30% of area median income or the federal poverty level; it excludes mandatory education fees from income calculations; and it permits owners to use a streamlined income determination method for household members with fixed income sources. These changes are intended to reduce administrative burden while preserving HUD's oversight functions.
Written by anthropic/claude-sonnet-4.6 · Reviewed on October 6, 2026
Plain English — not legal advice.
For Property Managers
Owners and management agents covered by Housing Notice H-2016-09 generally maintain compliance by updating their intake and certification procedures to reflect all four regulatory changes. For SSN verification under 24 CFR 5.216, compliant operators provide a 90-day window (extendable by another 90 days for circumstances outside the household's control) for families with children under 6 to furnish SSN documentation, and they use the correct TRACS placeholder codes during that period. For income determinations under 24 CFR 5.657, compliant operators document whether income sources qualify as 'fixed,' apply verified COLA or interest-rate adjustment factors in the two recertification cycles following a full third-party verification year, and conduct full third-party verification every third year for all income sources.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For Tenants
Tenants and applicants in programs covered by Housing Notice H-2016-09 have several protections worth understanding. Under 24 CFR 5.216 as implemented by this notice, households with a child under age 6 who lacks a Social Security Number cannot be denied occupancy solely for that reason, and the household must be given at least 90 days—and potentially 180 days if delays are outside the household's control—to provide SSN documentation. Under 24 CFR 5.657, tenants have the right to instruct their owner or management agent not to use the streamlined income determination method, in which case full third-party verification of all income sources must be used instead; tenants who believe these procedures are not being followed may contact HUD's Office of Asset Management and Portfolio Oversight or reach out to a local tenant-rights organization for guidance.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
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