On 20 percent of units contracted after 22 August 1974 HUD makes additional assistance payments reducing the tenant's payment to the highest of 30 percent, 10 percent or the welfare housing portion

s236.subsidy_calculation.additional_assistance_payments_on_twenty_percent_of_units · v1.0.0

With respect to 20 percent of the dwelling units in any project made subject to a Section 236 contract after 22 August 1974, HUD makes and contracts to make additional assistance payments to the project owner on behalf of tenants whose incomes are too low for them to afford the basic rentals, including the amount allowed for utilities where the project is separately metered, with 30 percent of their adjusted income. The payment for a unit is the amount required to reduce the tenant's rental payment, including the utility amount where applicable, to the highest of 30 percent of the tenant's monthly adjusted income, 10 percent of the tenant's monthly income, or where the family receives welfare assistance a part of which is specifically designated to meet housing costs, that designated portion, rounded to the nearest dollar. HUD may reduce the 20 percent requirement where necessary to assure a project's economic viability, or increase it where necessary and feasible to assure a reasonable range of tenant income levels or to meet the housing needs of elderly or handicapped families.

Confidence

high

Effective from

1974-08-22

Consequence model

agency finding with cure

Last reviewed

2026-08-29