Lenient Rules Abet the Occupancy of Low Income Housing by Ineligible Tenants
CED-81-74
Published: Apr 27, 1981. Publicly Released: Apr 27, 1981.
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Highlights
The Department of Housing and Urban Development (HUD) recently took a number of positive steps when it: (1) lowered to 10 percent the percentage of section 8 assisted units in any new project that can be rented to ineligible households without explicit HUD approval, and (2) developed new sanctions for dealing with project owners who fail to comply with the limitation.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should enact legislation clarifying the section 8 program's original intent that housing units, for which section 8 subsidy contracts exist, be used to the maximum extent possible for section 8-eligible households. |
Closed
|
Please call 202/512-6100 for additional information. |
| Congress should consider whether a more stringent limitation on ineligible households should be applied to previously completed section 8 projects. This limitation could be achieved by either (1) enacting legislation to apply a 5 percent limitation to completed projects already under contract; or (2) directing HUD to change its regulations to have the same effect. |
Closed
|
Please call 202/512-6100 for additional information. |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Housing and Urban Development | The Secretary of HUD should issue explicit enforcement guidelines for use by HUD regional and area offices to deal with project owners who exceed the limitation on ineligible households or otherwise fail to comply with HUD's policies on ineligible occupancy. |
Closed
Please call 202/512-6100 for additional information.
|
| Department of Housing and Urban Development | The Secretary of HUD should lower the percentage limitation on ineligible households from 10 percent to 5 percent for new, fully assisted projects without HUD approval and allow no ineligible households to occupy contracted units in partially assisted projects without HUD approval. |
Closed
Please call 202/512-6100 for additional information.
|
| Department of Housing and Urban Development | The Secretary of HUD should (1) modify program regulations for new, fully assisted projects to lower the percentage limitation from 10 percent to 5 percent on the number of units that can be occupied by ineligible households without HUD approval and allow no ineligible households in contracted units in partially assisted projects without HUD approval; (2) issue explicit enforcement guidelines for use by HUD regional and area offices in dealing with project owners who exceed the limitation in ineligible households or otherwise fail to comply with HUD policies on occupancy by ineligible households; and (3) amend section 8 regulations to explicitly state a project owner's responsibility to make every effort to rent all section 8 contracted units to eligible households before utilizing the exception for ineligible households. |
Closed
Please call 202/512-6100 for additional information.
|
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Community development programsCost analysisDisadvantaged personsEligibility criteriaFederal regulationsLow income housingRental housingTenantsMortgage marketHousing