42 U.S.C. § 1436b
Financial assistance in impacted areas (THE PUBLIC HEALTH AND WELFARE (42 U.S.C.))
Operative Text
The Secretary of Housing and Urban Development shall not exclude from consideration for financial assistance under federally assisted housing programs proposals for housing projects solely because the site proposed is located within an impacted area. For the purposes of this section, the term “federally assisted housing programs” means any program authorized by the United States Housing Act of 1937 [ et seq.], sections 1715z and 1715z–1 of title 12, section 101 of the Housing and Urban Development Act of 1965 [], or .
Under 42 U.S.C. § 1436b, the Secretary of Housing and Urban Development is prohibited from rejecting housing project proposals for federal assistance solely on the grounds that the proposed site is located in an 'impacted area'—a designation that historically signaled demographic or economic concentration. The rule ensures that geographic location alone cannot be used as a disqualifying factor when evaluating proposals under covered federally assisted housing programs.
Plain English — not legal advice.
Property owners and developers pursuing funding under federally assisted housing programs covered by 42 U.S.C. § 1436b should be aware that HUD cannot automatically disqualify a project proposal simply because the site sits within an impacted area. Compliant applicants generally document site selection criteria thoroughly, recognizing that while location in an impacted area is not grounds for automatic rejection, other program eligibility requirements still apply.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
42 U.S.C. § 1436b establishes that residents and prospective tenants in impacted areas cannot be categorically shut out of federally assisted housing opportunities due to their neighborhood's designation alone. Tenants who believe a housing project serving their community was improperly denied federal consideration on this basis may find it useful to contact a local tenant-rights organization or a HUD field office to understand available complaint or advocacy pathways.
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 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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