Back - Home - Main

Printable Version - PDF

 

B. SECTION 8 HOUSING: TITLE 24, PART 245.5 OF THE CODE OF FEDERAL REGULATIONS

Subpart A--General Provisions
Subpart B--Tenant Organizations

[Code of Federal Regulations]
[Title 24, Volume 2]
[Revised as of April 1, 2002]
 

From the U.S. Government Printing Office
[CITE: 24CFR245.5]
 

PART 245-Tenant Participation in Multifamily Housing Projects-

Subpart A--General Provisions

 

Section 245.5 Purpose.


The purpose of this part is to recognize the importance and benefits of cooperation and participation of tenants in creating a suitable living environment in multifamily housing projects and in contributing to the successful operation of such projects, including their good physical condition, proper maintenance, security, energy efficiency, and control of operating costs.

Section 245.10 Applicability of part.

(a ) Except as other wise expressly limited in this section, this part applies in its entirety to a mortgagor of any multifamily housing project that meets the following-

(1) Project subject to HUD insured or held mortgage under the National Housing Act. The project has a mortgage that-

  1. Has received final endorsement on behalf of the Secretary and is insured or held by the Secretary under the National Housing Act (12 U.S.C. 1701--1715z-20); and

  2. Is assisted under:

    1. Section 236 of the National Housing Act (12 U S.C. 1715z-1);

    2. The Section 221(d)(3) BMIR Program ;

    3. The Rent Supplement Program ;

    4. The Section 8 Loan Management Set-Aside Program following conversion to such assistance from the Rent Supplement Program assistance;

(2) Formerly HUD -owned project. The project-

  1. Before being acquired by the Secretary, was assisted under:

    1. Section 236 of the National Housing Act (12 U.S.C. 1715z-1);

    2. The Section 221(d)(3) BMIR Program ;

    3. The Rent Supplement Program; or

    4. The Section 8 LMSA Program following conversion to such assistance from assistance under the Rent Supplement Program; and

  2. Was sold by the Secretary subject to a mortgage insured or held by the Secretary and an agreement to maintain the low and moderate-income character of the project;

(3) State or local housing finance agency project. The project receives assistance under section 236 of the National Housing Act (12 U.S.C. 1715z-1) or the Rent Supplement Program administered through a State or local housing finance agency, but does not have a mortgage insured under the National Housing Act or held by the Secretary. Subject to the further limitation in paragraph (b) of this section, only the provisions of subparts A and C of this part and of subpart D of this part for requests for approval of a conversion of a project from project-paid utilities to tenant-paid utilities or of a reduction in tenant utility allowances, apply to a mortgagor of such a project;

 

(4 ) The project receives project-based assistance under section 8 of the United States Housing Act of 1937 (this regulation does not cover tenant participation in P.H.A.s that administer such project-based assistance);

 

(5 ) The project receives enhanced vouchers under the Low-Income Housing Preserv ation and Resident Homeownership Act of 1990, the provisions of the Emergency Low Income Housing Preservation Act of 1987, or the Multifamily Assisted Housing Reform and Affordability Act of 1997, as amended;

 

(6 ) The project receives assistance under the Section 202 Direct Loan program or the Section 202 Supportive Housing for the Elderly program; or

 

(7 ) The project receives assistance under the Section 811 Supportive Housing for Persons with Disabilities program .

  1. Limitation for cooperative mortgagor. Only the provisions of subparts A and C of this part apply to a mortgagor of any multifamily housing project described in paragraph (a) of this section if the mortgagor is a cooperative housing corporation or association.

  2. Definitions.
    Rent Supplement Program means the assistance program authorized by section 101 of the Housing and Urban Development Act of 1965 (12 U.S.C. 1701s). Section 8 LMSA Program means the Section 8 Loan Management Set-Aside Program implemented under 24 CFR part 886, subpart A. Section 22 1(d )(3) B M IR Program means the below -market interest rate mortgage insurance program under section 221(d)(3) and the proviso of section 221(d)(5) of the National Housing Act (12 U .S.C. 1715l(d )(3 ) and 1715l(d)(5)).

Section 245.15 Notice to tenants.

  1. Whenever a mortgagor is required under subparts D or E of this part to serve notice on the tenants of a project, the notice must be served by delivery, except, for a high-rise project, the notice may be served either by delivery or by posting. If service is made by delivery, a copy of the notice must be delivered directly to each unit in the project or mailed to each tenant. If service is made by posting, the notice must be posted in at least three conspicuous places within each building in which the affected dwelling units are located and, during any prescribed tenant period, in a conspicuous place at the address stated in the notice where the materials in support of the mortgagor's proposed action are to be made available for inspection and copying. Posted notices must be maintained intact and in legible form during any prescribed notice period.

  2. For purposes of computing time periods following service of notice, service is effected, in the case of service by delivery, when all notices have been delivered or mailed and, in the case of service by posting, when all notices have been initially posted.

Subpart B--Tenant Organizations Section 245.100

 
Right of tenants to organize.

The tenants of a multifamily housing project covered under Section 245.10 have the right to establish and operate a tenant organization for the purpose of addressing issues related to their living environment, which includes the terms and conditions of their tenancy as well as activities related to housing and community development.

 

Section 245.105 Recognition of tenant organizations.

Owners of multifamily housing projects covered under Section 245.10, and their agents, must:

  1. Recognize legitimate tenant organizations; and

  2. Give reasonable consideration to concerns raised by legitimate tenant organizations.

Section 245.110 Legitimate tenant organizations.

A tenant organization is legitimate if it has been established by the tenants of a multifamily housing project covered under Section 245.10 for the purpose described in Section 245.100, and meets regularly, operates democratically, is representative of all residents in the development, and is completely independent of owners, management, and their representatives.

Sec. 245 .115 Protected activities.

(a) Owners of multifamily housing projects covered under Section 245.10, and their agents, must allow tenants and tenant organizers to conduct the following activities related to the establishment or operation of a tenant organization:

  1. Distributing leaflets in lobby areas;

  2. Placing leaflets at or under tenants' doors;

  3. Distributing leaflets in common areas;

  4. Initiating contact with tenants;

  5. Conducting door-to-door surveys of tenants to ascertain interest in establishing a tenant organization and to offer in formation about tenant organizations;

  6. Posting information on bulletin boards;

  7. Assisting tenants to participate in tenant organization activities;

  8. Convening regularly scheduled tenant organization meetings in a space on site and accessible to tenants, in a manner that is fully independent of management representatives. In order to preserve the independence of tenant organizations, management representatives may not attend such meetings unless invited by the tenant organization to specific meetings to discuss a specific issue or issues; and

  9. Formulating responses to owner's requests for:

    1. Rent increases;

    2. Partial payment of claims;

    3. The conversion from project-based paid utilities to tenant-paid utilities;

    4. A reduction in tenant utility allowances;

    5. Converting residential units to non -residential use, cooperative housing , or condominiums;

    6. Major capital additions; and

    7. Prepayment of loans.

 

(b) In addition to the activities listed in paragraph (a) of this section, owners of multifamily housing projects covered under Section 245.10, and their agents, must allow tenants and tenant organizers to conduct other reasonable activities related to the establishment or operation of a tenant organization.

 

(c) Owners of multifamily housing projects and their agents shall not require tenants and tenant organizers to obtain prior permission before engaging in the activities permitted under paragraphs (a) and (b) of this section.

 

Section 245.120 Meeting space.

  1.  Owners of multifamily housing projects covered under Section 245.10, and their agents, must reasonably make available the use of any community room or other available space appropriate for meetings that is part of the multifamily housing project when requested by:

    1. Tenants or a tenant organization and used for activities related to the operation of the tenant organization; or

    2. Tenants seeking to establish a tenant organization or collectively address issues related to their living environment.

  2. Tenant and tenant organization meetings must be accessible to persons with disabilities, unless this is impractical for reasons beyond the organization's control. If the complex has an accessible common area or areas, it will not be impractical to make organizational meetings accessible to persons with disabilities.

  3. Fees. An owner of a multifamily housing project covered under Section 245.10 may charge a reasonable, customary and usual fee, approved by the Secretary as may normally be imposed for the use of such facilities in accordance with procedures prescribed by the Secretary, for the use of meeting space. An owner may waive this fee.
     

Section 245.125 Tenant organizers.

  1. A tenant organizer is a tenant or non-tenant who assists tenants in establishing and operating a tenant organization, and who is not an employee or representative of current or prospective owners, managers, or their agents.

  2. Owners of multifamily housing projects covered under Section 245.10, and their agents, must allow tenant organizers to assist tenants in establishing and operating tenant organizations.

  3. Non-tenant tenant organizers.

    1. If a multifamily housing project covered under Section 245.10 has a consistently enforced, written policy against canvassing, then a non-tenant tenant organizer must be accompanied by a tenant while on the property of the multifamily housing project, except in the case of recipients of HUD Out reach and Assistance Training Grants (``OTAG'') or other direct HUD grants designed to enable recipients to provide education and outreach to tenants concerning HUD's mark-to-market program (see 24 CFR parts 401 and 402), who are conducting eligible activities as defined in the applicable Notice of Funding Availability for the grant or other effective grant document.

    2. If a multifamily housing project covered under Section 245.10 has a written policy favoring canvassing , any non-tenant tenant organizer must be afforded the same privileges and rights of access as other uninvited outside parties in the normal course of operations. If the project does not have a consistently enforced, written policy against canvassing, the project shall be treated as if it has a policy favoring canvassing. Section 245.130 Tenants' rights not to be re-canvassed. A tenant has the right not to be re-canvassed against his or her wishes regarding participation in a tenant organization.

 

Section 245.135 Enforcement.

  1. Owners of housing identified in Section 245.10, and their agents, as w ell as any principals thereof (as defined in 24 CFR 24.105), who violate any provision of this subpart so as to interfere with the organizational and participatory rights of tenants, may be liable for sanctions under 24 CFR part 24.

 

Such sanctions may include:

  1. Debarment. A person who is debarred is prohibited from future participation in Federal programs for a period of time. The specific rules and regulations relating to debarment are found at 24 CFR part 24, subpart C.

  2. Suspension. Suspension is a temporary action with the sam e effect as debarment, to be taken when the reisadequate evidence that a cause for debarment may exist and immediate action is needed to protect the public interest. The specific rules and regulations relating to suspension are found at 24 CFR part 24, subpart D.

  3. Limited Denial of Participation. An LDP generally excludes a person from future participation in the Federal program under which the cause arose.

 

The duration of an LDP is generally up to 12 months. The specific rules and regulations relating to LDPs are found at 24 CFR subpart G. (b) These sanctions may also apply to affiliates (as defined in 24 CFR part 24) of these persons or entities. (c) The procedures in 24 CFR part 24 shall apply to actions under this subpart.