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federalUnited StatesSection 221(d)(3) Below Market Interest Ratetenant_selection

A BMIR owner must not admit an income-ineligible applicant without prior written HUD approval, and any admitted pays market rent - there is no ten percent tolerance as in Section 236

bmir.tenant_selection.admitting_an_income_ineligible_applicant_requires_prior_written_hud_approval · v1.0.0

BMIR has no self-help route around the income limit. THE OWNER MUST NOT ADMIT INCOME-INELIGIBLE APPLICANTS WITHOUT PRIOR WRITTEN HUD APPROVAL, AND ANY INELIGIBLE FAMILIES THAT ARE ADMITTED MUST PAY MARKET RENT - which in a BMIR rental means 110 percent of the BMIR rent, and in a BMIR cooperative means the contract carrying charge plus any HUD-approved surcharge, or 110 percent of the contract carrying charge where the cooperative has no approved surcharge plan. Compare Section 236, Rent Supplement and RAP, where an owner MAY admit over-income applicants WITHOUT HUD approval if there are no income-eligible applicants available and fewer than 10 percent of the units are already occupied by tenants paying market rent, and needs approval only once that threshold is reached. That tolerance does not exist in BMIR. An owner who fills a BMIR vacancy with an over-income applicant on the strength of the Section 236 practice has admitted improperly, however empty the waiting list was.

Confidence
high
Effective from
2013-08-07
Last reviewed
2026-09-02

Evidence required

  • HUD-50059 Owner's Certification of Compliance(exactly_one)

Citations

All sources verified within 1 day
  • Occupancy Requirements of Subsidized Multifamily Housing Programs
    4350.3 REV-1 CHG-4, para. 3-8.B
    binding_agency_guidanceSource ↗verified 1d ago
  • Occupancy Requirements of Subsidized Multifamily Housing Programs
    4350.3 REV-1 CHG-4, para. 3-8.B
    binding_agency_guidanceSource ↗verified 1d ago
  • Occupancy Requirements of Subsidized Multifamily Housing Programs
    4350.3 REV-1 CHG-4, para. 3-8.C.1
    binding_agency_guidanceSource ↗verified 1d ago
  • Occupancy Requirements of Subsidized Multifamily Housing Programs
    4350.3 REV-1 CHG-4, Glossary, definition of 'Market Rent'
    binding_agency_guidanceSource ↗verified 1d ago