Form Hud-9834 - Management Review For Multifamily Housing Projects Page 38

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Project Name:
FHA/Project#
Section 8/PAC/PRAC#
ADDENDUM B
INSTRUCTIONS FOR COMPLETING PART A
General instructions: Complete the project name, FHA/project number, and section 8/pac/prac information in the form header for each page:
SECTION I - Owner/Agent must respond to all questions in this section.
1. Check the appropriate box that the project was designed to serve. (Check only one box. Do not leave blank.)
Exclusively Elderly - defined as a person 62 years of age or older. (This option is for projects that were designed to serve only elderly
persons/families, i.e. Section 202 PRAC properties)
Exclusively Disabled – Refer to HUD Handbook 4350.3, REV-1, Figure 3-6 for the applicable definition of disability. (This option is for
projects that were designed to serve only persons with disabilities, i.e., Section 202/8 Projects for the Disabled and Section 811 projects.
Please note that Section 202-8 Projects for the Disabled were developed to serve only non-elderly persons with disabilities. However, the
Section 811 Projects were developed to serve persons with disabilities regardless of age as long as the minimum age requirement (age 18) is
met.)
Elderly and Disabled – defined as a property that serves the elderly and non-elderly persons with disabilities. (This option is for projects
that were originally designed to serve only elderly persons/families, however the owner may have elected a preference under Section 651 of
Title VI, Subtitle D of the Housing and Community Development Act of 1992 (Title VI-D) to reserve a percentage of units for non-elderly
persons with disabilities in accordance with the provisions of Section 652, Title VI-D. See instruction 4 below for Section 651 definition.)
Family – defined as all persons regardless of age or disability. (This option is for projects that serve all families with no restrictions or
preferences as long as the minimum age requirement is met. Please note that family projects may have some units that are reserved for
persons with mobility/vision/hearing impairments which would require the applicant to meet the needs of the unit.)
2. Enter the number of units occupied by each client group. (Please note that the term “near-elderly disabled” is defined as a person who is at
least 50 years of age and below the age of 62 with a disability as defined in HUD Handbook 4350.3, REV-1.) (Enter zero “0” if there are
no units occupied by the listed client group – do not leave blank)
3. If there is a use agreement or other document that references that the property must serve only elderly persons, answer “Yes”, indicate in the
space provided, and attach a copy of the document(s) listed. If there is no use agreement or other document that references that the property
must serve only elderly persons, answer “No”. If you are unclear on the term “use agreement,” or are not able to locate the “use agreement”
or any other document that defines the occupancy of your project, the answer is “unknown”. Other documents include the regulatory
agreement, loan commitment papers, financial documents, bid invitation, owner’s management plan, application for funding, and/or
application for mortgage insurance. Please refer to HUD Handbook 4350.3, REV-1, paragraphs 3-17 and 3-18. If you do not have a copy of
HUD Handbook 4350.3, REV-1, copies can be obtained from
or the HUD Customer Service Center at (800) 767-7468.
(Do not leave blank).
4. Section 651 of Title VI-D permits an owner to give *preference to elderly families if (1) the project was originally developed to serve the
elderly and (2) it is a “covered Section 8 housing project.” “Covered Section 8 housing projects” are projects that were constructed or
substantially rehabilitated pursuant to assistance provided under section 8(b)(2) of the United States Housing Act of 1937, as in effect before
October 1, 1983, that are assisted under a contract for assistance under such section.
*A “preference” allows an owner to give priority to elderly persons when selecting tenants for occupancy.
Section 651 of Title VI-D applies to the following programs:
The Section 8 New Construction Program, 24 CFR part 880
The Section 8 Substantial Rehabilitation Program, 24 CFR part 881
The State Housing Agencies Program (insofar as it involves new construction and substantial rehabilitation) , 24 CFR part 883
The New Construction Set-Aside for Section 515 Rural Rental Housing Projects Program, 24 CFR part 884
The Section 8 Housing Assistance Program for the Disposition of HUD-Owned Projects (insofar as it involves substantial
rehabilitation), 24 CFR part 886 subpart C
“Covered Section 8 housing projects” do not include those developed with funding under the following programs:
Section 202;
Section 202/8;
Section 202 or 811 PRAC;
Section 221 (d)(3); and/or
Section 236.
If an owner elects a Section 651 preference for the elderly, the owner must reserve a number of units for non-elderly persons/families with
disabilities. Title VI-D requires that the owner review the occupancy records on January 1, 1992 and October 28, 1992 (the date of enactment for
Title VI-D), determine the number of non-elderly persons with disabilities that occupied units on those two dates, take the higher of the two
numbers and then take the lesser of that number and 10 percent.
For example, an owner has a “covered Section 8 project” that consists of 100 units and decides to implement an elderly preference
under Section 651. The first thing the owner has to do is find the occupancy records for January 1992 and see how many units
were occupied by non-elderly persons or families with disabilities on January 1. In this example, it was 10 units.
form HUD-9834 (6/2009)
Ref. HUD Handbook 4350.1, REV-1
and HUD Handbook 4566.2
Page 6 of 13

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