At least 40 percent of the assisted units that become available for occupancy in a fiscal year must be leased only to extremely low income families

pbra.income_eligibility.extremely_low_income_targeting_forty_percent · v1.0.0

For each project assisted under a Section 8 project-based assistance contract, of the dwelling units assisted under that contract that become available for occupancy in any fiscal year, not less than 40 percent must be available for leasing only by families that are extremely low income families at the time of admission. The target is measured on units that become available in the fiscal year, not on the project's whole unit count and not on the units actually leased, so an owner who fills every turnover unit with a very low income applicant misses the target even though every one of those households was income eligible. Family annual income under 24 CFR 5.609 is the figure used both for the income-eligibility determination and for this targeting count. The owner must comply with HUD-prescribed reporting requirements, including income reporting that permits HUD to monitor compliance with the target. HUD Handbook 4350.3 supplies the procedure the regulation omits. The measuring period is the PROJECT fiscal year. Both move-ins and initial admissions count, so an initial certification moving a sitting Section 236 tenant onto Section 8 assistance is a targeted admission. The method the owner uses must be written into the tenant selection plan, results must be monitored quarterly and adjusted if necessary, and occupancy records for both move-ins and initial admissions must be kept so that a management review can trace the process and the result. Where the owner actively markets to extremely low income families and still cannot attract enough of them, it may admit other eligible families after a reasonable marketing period; the handbook sets the minimum at advertising in the locality and outreach to local organisations serving the extremely low income population for no less than 30 days, documented, with marketing to continue afterwards.

Confidence

high

Effective from

2000-03-29

Consequence model

agency finding with cure

Last reviewed

2026-09-02