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Subpart J—Grant Administration
SOURCE: 53 FR 8058, Mar. 11, 1988, unless otherwise noted.
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§570.500 Definitions.
For the purposes of this subpart, the following terms shall apply:
(a) Program income means gross income received by the recipient or a subrecipient directly generated from the
use of CDBG funds, except as provided in paragraph (a)(4) of this section.
(1) Program income includes, but is not limited to, the following:
(i) Proceeds from the disposition by sale or Tong -term lease of real property purchased or improved with CDBG
funds;
(ii) Proceeds from the disposition of equipment purchased with CDBG funds;
(iii) Gross income from the use or rental of real or personal property acquired by the recipient or by a subrecipient
with CDBG funds, less costs incidental to generation of the income;
(iv) Gross income from the use or rental of real property, owned by the recipient or by a subrecipient, that was
constructed or improved with CDBG funds, less costs incidental to generation of the income;
(v) Payments of principal and interest on loans made using CDBG funds, except as provided in paragraph (a)(3)
of this section;
(vi) Proceeds from the sale of loans made with CDBG funds;
(vii) Proceeds from sale of obligations secured by loans made with CDBG funds;
(viii) [Reserved]
(ix) Interest earned on program income pending its disposition; and
(x) Funds collected through special assessments made against properties owned and occupied by
households not of low and moderate income, where the assessments are used to recover all or part of the CDBG
portion of a public improvement.
(2) Program income does not include income earned (except for interest described in §570.513) on grant
advances from the U.S. Treasury. The following items of income earned on grant advances must be remitted to HUD
for transmittal to the U.S. Treasury, and will not be reallocated under section 106(c) or (d) of the Act:
(i) Interest earned from the investment of the initial proceeds of a grant advance by the U.S. Treasury;
(ii) Interest earned on loans or other forms of assistance provided with CDBG funds that are used for activities
determined by HUD either to be ineligible or to fail to meet a national objective in accordance with the requirements of
subpart C of this part, or that fail substantially to meet any other requirement of this part; and
(iii) Interest earned on the investment of amounts reimbursed to the CDBG program account prior to the use of
the reimbursed funds for eligible purposes.
(3) The calculation of the amount of program income for the recipient's CDBG program as a whole (i.e.,
comprising activities carried out by a grantee and its subrecipients) shall exclude payments made by subrecipients of
principal and/or interest on CDBG-funded loans received from grantees if such payments are made using program
income received by the subrecipient. (By making such payments, the subrecipient shall be deemed to have
transferred program income to the grantee.) The amount of program income derived from this calculation shall be
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used for reporting purposes, for purposes of applying the requirement under §570.504(b)(2)(iii), and in determining
limitations on planning and administration and public services activities to be paid for with CDBG funds.
(4) Program income does not include:
(i) Any income received in a single program year by the recipient and all its subrecipients if the total amount of
such income does not exceed $25,000; and
(ii) Amounts generated by activities that are financed by a loan guaranteed under section 108 of the Act and
meet one or more of the public benefit criteria specified at §570.209(b)(2)(v) or are carried out in conjunction with a
grant under section 108(q) in an area determined by HUD to meet the eligibility requirements for designation as an
Urban Empowerment Zone pursuant to 24 CFR part 597, subpart B. Such exclusion shall not apply if CDBG funds
are used to repay the guaranteed loan. When such a guaranteed loan is partially repaid with CDBG funds, the
amount generated shall be prorated to reflect the percentage of CDBG funds used. Amounts generated by activities
financed with loans guaranteed under section 108 which are not defined as program income shall be treated as
miscellaneous revenue and shall not be subject to any of the requirements of this part, except that the use of such
funds shall be limited to activities that are located in a revitalization strategy area and implement a HUD approved
area revitalization strategy pursuant to §91.215(e) of this title. However, such treatment shall not affect the right of the
Secretary to require the section 108 borrower to pledge such amounts as security for the guaranteed loan. The
determination whether such amounts shall constitute program income shall be governed by the provisions of the
contract required at §570.705(b)(1).
(5) Examples of other receipts that are not considered program income are proceeds from fund raising activities
carried out by subrecipients receiving CDBG assistance (the costs of fundraising are generally unallowable under the
applicable OMB circulars referenced in 24 CFR 84.27), funds collected through special assessments used to recover
the non-CDBG portion of a public improvement, and proceeds from the disposition of real property acquired or
improved with CDBG funds when the disposition occurs after the applicable time period specified in §570.503(b)(8) for
subrecipient-controlled property, or in §570.505 for recipient -controlled property.
(b) Revolving fund means a separate fund (with a set of accounts that are independent of other program
accounts) established for the purpose of carrying out specific activities which, in turn, generate payments to the fund
for use in carrying out the same activities. Each revolving loan fund's cash balance must be held in an interest -bearing
account, and any interest paid on CDBG funds held in this account shall be considered interest earned on grant
advances and must be remitted to HUD for transmittal to the U.S. Treasury no less frequently than annually. (Interest
paid by borrowers on eligible loans made from the revolving loan fund shall be program income and treated
accordingly.)
(c) Subrecipient means a public or private nonprofit agency, authority, or organization, or a for -profit entity
au ed un`der 570--.201(0), receiving_CDa fu_ s from the recipient or another subrecipient to undertake activities
eligible for such assistance under subpart C of this part. The term excludes an entity receiving CDB funds from the
recipient under the authority of §570.204, unless the grantee explicitly designates it as a subrecipient. The term
includes a public agency designated by a unit of general local government to receive a loan guarantee under subpart
M of this part, but does not include contractors providing supplies, equipment, construction, or services subject to the
procurement requirements in 24 CFR 85.36 or 84.40, as applicable.
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§570.204 Special activities by Community -Based Development Organizations (CBDOs).
(a) Eligible activities. The recipient may provide CDBG funds as grants or loans to any CBDO qualified under this
section to carry out a neighborhood revitalization, community economic development, or energy conservation project.
The funded project activities may include those listed as eligible under this subpart, and, except as described in
paragraph (b) of this section, activities not otherwise listed as eligible under this subpart. For purposes of qualifying
as a project under paragraphs (a)(1), (a)(2), and (a)(3) of this section, the funded activity or activities may be
considered either alone or in concert with other project activities either being carried out or for which funding has been
committed. For purposes of this section:
(1) Neighborhood revitalization project includes activities of sufficient size and scope to have an impact on the
decline of a geographic location within the jurisdiction of a unit of general local government (but not the entire
jurisdiction) designated in comprehensive plans, ordinances, or other local documents as a neighborhood, village, or
similar geographical designation; or the entire jurisdiction of a unit of general local government which is under 25,000
population;
(2) Community economic development project includes activities that increase economic opportunity, principally
for persons of low- and moderate -income, or that stimulate or retain businesses or permanent jobs, including projects
that include one or more such activities that are clearly needed to address a lack of affordable housing accessible to
existing or planned jobs and those activities specified at 24 CFR 91.1(a)(1)(iii); activities under this paragraph may
include costs associated with project -specific assessment or remediation of known or suspected environmental
contamination;
(3) Energy conservation project includes activities that address energy conservation, principally for the benefit of
the residents of the recipient's jurisdiction; and
(4�To carry out_a project means that the CBDO undertakes the funded activities directly or through contract with
an e_tit',_,._,otjteLt an_the grantee or hroug i- e provision-�` -Of ancial assistance for activities in which it retain_s..a..__
direct and controlling involvement and responsibilities.
(b) Ineligible activities. Notwithstanding that CBDOs may carry out activities that are not otherwise eligible under
this subpart, this section does not authorize:
(1) Carrying out an activity described as ineligible in §570.207(a);
(2) Carrying out public services that do not meet the requirements of §570.201(e), except that:
(i) Services carried out under this section that are specifically designed to increase economic opportunities
through job training and placement and other employment support services, including, but not limited to, peer support
programs, counseling, child care, transportation, and other similar services; and
(ii) Services of any type carried out under this section pursuant to a strategy approved by HUD under the
provisions of 24 CFR 91.215(e) shall not be subject to the limitations in §570.201(e)(1) or (2), as applicable;
(3) Providing assistance to activities that would otherwise be eligible under §570.203 that do not meet the
requirements of §570.209; or
(4) Carrying out an activity that would otherwise be eligible under §570.205 or §570.206, but that would result in
the recipient's exceeding the spending limitation in §570.200(g).
(c) Eligible CBDOs. (1) A CBDO qualifying under this section is an organization which has the following
characteristics:
s an association or corporation organized under State or local law to engage in community development
activities (which may include housing and economic development activities) primarily within an identified geographic
area of operation within the jurisdiction of the recipient, or in the case of an urban county, the jurisdiction of the
county; and
(ii) Has as its primary purpose the improvement of the physical, economic or social environment of its geographic
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area of operation by addressing one or more critical problems of the area, with particular attention to the needs of
persons of low and moderate income; and
(iii) May be either non-profit or for -profit, provided any monetary profits to its shareholders or members must be
only incidental to its operations; and
(iv) Maintains at least 51 percent of its governing body's membership for low- and moderate -income residents of
its geographic area of operation, owners or senior officers of private establishments and other institutions located in
and serving its geographic area of operation, or representatives of low- and moderate -income neighborhood
organizations located in its geographic area of operation; and
(v) Is not an agency or instrumentality of the recipient and does not permit more than one-third of the
membership of its governing body to be appointed by, or to consist of, elected or other public officials or employees
or officials of an ineligible entity (even though such persons may be otherwise qualified under paragraph (c)(1)(iv) of
this section); and
(vi) Except as otherwise authorized in paragraph (c)(1)(v) of this section, requires the members of its governing
body to be nominated and approved by the general membership of the organization, or by its permanent governing
body; and
(vii) Is not subject to requirements under which its assets revert to the recipient upon dissolution; and
(viii) Is free to contract for goods and services from vendors of its own choosing.
(2) A CBDO that does not meet the criteria in paragraph (c)(1) of this section may also qualify as an eligible
entity under this section if it meets one of the following requirements:
(i) Is an entity organized pursuant to section 301(d) of the Small Business Investment Act of 1958 (15 U.S.C.
681(d)), including those which are profit making; or
(ii) Is an SBA approved Section 501 State Development Company or Section 502 Local Development Company,
or an SBA Certified Section 503 Company under the Small Business Investment Act of 1958, as amended; or
(iii) Is a Community Housing Development Organization (CHDO) under 24 CFR 92.2, designated as a CHDO by
the HOME Investment Partnerships program participating jurisdiction, with a geographic area of operation of no more
than one neighborhood, and has received HOME funds under 24 CFR 92.300 or is expected to receive HOME funds
as described in and documented in accordance with 24 CFR 92.300(e).
(3) A CBDO that does not qualify under paragraph (c)(1) or (2) of this section may also be determined to qualify
as an eligible entity under this section if the recipient demonstrates to the satisfaction of HUD, through the provision
of information regarding the organization's charter and by-laws, that the organization is sufficiently similar in purpose,
function, and scope to those entities qualifying under paragraph (c)(1) or (2) of this section.
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§ 982.401
(5) In administration of portability,
the initial PHA and the receiving PHA
must comply with financial procedures
required by HUD, including the use of
HUD -required billing forms. The initial
and receiving PHA must comply with
billing and payment deadlines under
the financial procedures.
(6) a PHA must manage the PHA ten-
ant -based program in a manner that
ensures that the PHA has the financial
ability to provide assistance for fami-
lies that move out of the PHA program
under the portability procedures that
have not been absorbed by the receiv-
ing PHA, as well as for families that
remain in the PHA program.
(7) When a portable family moves out
of the tenant -based program of a re-
ceiving PHA that has not absorbed the
family, the PHA in the new jurisdic-
tion to which the family moves be-
comes the receiving PI -IA, and the first
receiving PHA is no longer required to
provide assistance for the family.
(f) Portability funding. (1) HUD may
transfer funds for assistance to port-
able families to the receiving PHA
from funds available under the initial
PHA ACC.
(2) HUD may provide additional fund-
ing (e.g., funds for incremental units)
to the initial PHA for funds transferred
to a receiving PHA for portability pur-
poses.
(3) HUD may provide additional fund-
ing (e.g., funds for incremental units)
to the receiving PHA for absorption of
portable families.
(4) HUD may require the receiving
PHA to absorb portable families.
[60 FR 34695, July 3, 1995, as amended at 61
FR 27163, May 30, 1996; 64 FR 26646, May 14,
1999; 64 FR 56914, Oct. 21, 19991
Subpart I —Dwelling Unit: Housing
Quality Standards, Subsidy
Standards, Inspection and
Maintenance
SOURCE: 60 FR 34695, July 3, 1995, unless
otherwise noted.
§ 982.401 Housing quality standards
(HQS).
(a) Performance and acceptability re-
quirements. (1) This section states the
24 CFR Ch. IX (4-1-00 Edition)
housing quality standards (HQS) for
housing assisted in the programs.
(2) (i) The HQS consist of:
(A) Performance requirements; and
(B) Acceptability criteria or HUD ap-
proved variations in the acceptability
criteria.
(ii) This section states performance
and acceptability criteria for these key
aspects of housing quality:
(A) Sanitary facilities;
(B) Food preparation and refuse dis-
posal;
(C) Space and security;
(D) Thermal environment;
(E) Illumination and electricity;
(F) Structure and materials;
(G) Interior air quality;
(I -I) Water supply;
(I) Lead -based paint;
(J) Access;
(K) Site and neighborhood;
(L) Sanitary condition; and
(M) Smoke detectors.
(3) All program housing must meet
the HQS performance requirements
both at commencement of assisted oc-
cupancy, and throughout the assisted
tenancy.
(4) (i) In addition to meeting HQS per-
formance requirements, the housing
must meet the acceptability criteria
stated in this section, unless variations
are approved by HUD.
(ii) HUD may approve acceptability
criteria variations for the following
purposes:
(A) Variations which apply standards
in local housing codes or other codes
adopted by the PHA; or
(B) Variations because of local cli-
matic or geographic conditions.
(iii) Acceptability criteria variations
may only be approved by HUD pursu-
ant to paragraph (a) (4) (ii) of this sec-
tion if such variations either:
(A) Meet or exceed the performance
requirements; or
(B) Significantly expand affordable
housing opportunities for families as-
sisted under the program.
(iv) HUD will not approve any accept-
ability criteria variation if HUD be-
lieves that such variation is likely to
adversely affect the health or safety of
participant families, or severely re-
strict housing choice.
(b) Sanitary facilities—(1) Performance
requirements. The dwelling unit must
596
Office of the Assistant Secretary, HUD
include sanitary facilities located in
the unit. The sanitary facilities must
be in proper operating condition, and
adequate for personal cleanliness and
the disposal of human waste. The sani-
tary facilities must be usable in pri-
vacy.
(2) Acceptability criteria. (i) The bath-
room must be located in a separate pri-
vate room and have a flush toilet in
proper operating condition.
(ii) The dwelling unit must have a
fixed basin in proper operating condi-
tion, with a sink trap and hot and cold
running water.
(iii) The dwelling unit must have a
shower or a tub in proper operating
condition with hot and cold running
water.
(iv) The facilities must utilize an ap-
provable public or private disposal sys-
tem (including a locally approvable
septic system).
(c) Food preparation and refuse dis-
posal—(1) Performance requirement. (i)
The dwelling unit must have suitable
space and equipment to store, prepare,
and serve foods in a sanitary manner.
(ii) There must be adequate facilities
and services for the sanitary disposal
of food wastes and refuse, including fa-
cilities for temporary storage where
necessary (e.g, garbage cans).
(2) Acceptability criteria. (i) The dwell-
ing unit must have an oven, and a
stove or range, and a refrigerator of ap-
propriate size for the family. All of the
equipment must be in proper operating
condition. The equipment may be sup-
plied by either the owner or the family.
A microwave oven may be substituted
for a tenant -supplied oven and stove or
range. A microwave oven may be sub-
stituted for an owner -supplied oven and
stove or range if the tenant agrees and
microwave ovens are furnished instead
of an oven and stove or range to both
subsidized and unsubsidized tenants in
the building or premises.
(ii) The dwelling unit must have a
kitchen sink in proper operating condi-
tion, with a sink trap and hot and cold
running water. The sink must drain
into an approvable public or private
system.
(iii) The dwelling unit must have
space for the storage, preparation, and
serving of food.
§ 982.401
(iv) There must be facilities and serv-
ices for the sanitary disposal of food
waste and refuse, including temporary
storage facilities where necessary (e.g.,
garbage cans).
(d) Space and security—(1) Performance
requirement. The dwelling unit must
provide adequate space and security for
the family.
(2) Acceptability criteria. (i) At a min-
imum, the dwelling unit must have a
living room, a kitchen area, and a
bathroom.
(ii) The dwelling unit must have at
least one bedroom or living/sleeping
room for each two persons. Children of
opposite sex, other than very young
children, may not be required to oc-
cupy the same bedroom or living/sleep-
ing room,
(iii) Dwelling unit windows that are
accessible from the outside, such as
basement, first floor, and fire escape
windows, must be lockable (such as
window units with sash pins or sash
locks, and combination windows with
latches). Windows that are nailed shut
are acceptable only if these windows
are not needed for ventilation or as an
alternate exit in case of fire.
(iv) The exterior doors of the dwell-
ing unit must be lockable. Exterior
doors are doors by which someone can
enter or exit the dwelling unit.
(e) Thermal environment—(1) Perform-
ance requirement. The dwelling unit
must have and be capable of maintain-
ing a thermal environment healthy for
the human body.
(2) Acceptability criteria. (i) There
must be a safe system for heating the
dwelling unit (and a safe cooling sys-
tem, where present). The system must
be in proper operating condition. The
system must be able to provide ade-
quate heat (and cooling, if applicable),
either directly or indirectly, to each
room, in order to assure a healthy liv-
ing environment appropriate to the cli-
mate.
(ii) The dwelling unit must not con-
tain unvented room heaters that burn
gas, oil, or kerosene. Electric heaters
are acceptable.
(f) Illumination and electricity—(1) Per-
formance requirement. Each room must
have adequate natural or artificial illu-
mination to permit normal indoor ac-
tivities and to support the health and
597
§ 982.401
safety of occupants. The dwelling unit
must have sufficient electrical sources
so occupants can use essential elec-
trical appliances. The electrical fix-
tures and wiring must ensure safety
from fire.
(2) Acceptability criteria. (i) There
must be at least one window in the liv-
ing room and in each sleeping room.
(ii) The kitchen area and the bath-
room must have a permanent ceiling or
wall light fixture in proper operating
condition. The kitchen area must also
have at least one electrical outlet in
proper operating condition.
(iii) The living room and each bed-
room must have at least two electrical
outlets in proper operating condition.
Permanent overhead or wall -mounted
light fixtures may count as one of the
required electrical outlets.
(g) Structure and materials—(1) Per-
formance requirement. The dwelling unit
must be structurally sound. The struc-
ture must not present any threat to
the health and safety of the occupants
and must protect the occupants from
the environment.
(2) Acceptability criteria. (i) Ceilings,
walls, and floors must not have any se-
rious defects such as severe bulging or
leaning, large holes, loose surface ma-
terials, severe buckling, missing parts,
or other serious damage.
(ii) The roof must be structurally
sound and weathertight.
(iii) The exterior wall structure and
surface must not have any serious de-
fects such as serious leaning, buckling,
sagging, large holes, or defects that
may result in air infiltration or vermin
infestation.
(iv) The condition and equipment of
interior and exterior stairs, halls,
porches, walkways, etc., must not
present a danger of tripping and fall-
ing. For example, broken or missing
steps or loose boards are unacceptable.
(v) Elevators must be working and
safe.
(h) Interior air quality—(1) Performance
requirement. The dwelling unit must be
free of pollutants in the air at levels
that threaten the health of the occu-
pants.
(2) Acceptability criteria. (i) The dwell-
ing unit must be free from dangerous
levels of air pollution from carbon
24 CFR Ch. IX (4-1-00 Edition)
monoxide, sewer gas, fuel gas, dust,
and other harmful pollutants.
(ii) There must be adequate air cir-
culation in the dwelling unit.
(iii) Bathroom areas must have one
openable window or other adequate ex-
haust ventilation.
(iv) Any room used for sleeping must
have at least one window. If the win-
dow is designed to be openable, the
window must work.
(i) Water supply—(1) Performance re-
quirement. The water supply must be
free from contamination.
(2) Acceptability criteria. The dwelling
unit must be served by an approvable
public or private water supply that is
sanitary and free from contamination.
(j) Lead -based paint performance re-
quirement. The Lead -Based Paint Poi-
soning Prevention Act (42 U.S.C. 4821-
4846), the Residential Lead -Based Paint
Hazard Reduction Act of 1992 (42 U.S.C.
4851-4856), and implementing regula-
tions at part 35, subparts A, B, M, and
R of this title apply to units assisted
under this part.
(k) Access performance requirement.
The dwelling unit must be able to be
used and maintained without unau-
thorized use of other private prop-
erties. The building must provide an al-
ternate means of exit in case of fire
(such as fire stairs or egress through
windows) .
(1) Site and Neighborhood—(1) Perform-
ance requirement. The site and neigh-
borhood must be reasonably free from
disturbing noises and reverberations
and other dangers to the health, safety,
and general welfare of the occupants.
(2) Acceptability criteria. The site and
neighborhood may not be subject to se-
rious adverse environmental condi-
tions, natural or manmade, such as
dangerous walks or steps; instability;
flooding, poor drainage, septic tank
back-ups or sewage hazards; mudslides;
abnormal air pollution, smoke or dust;
excessive noise, vibration or vehicular
traffic; excessive accumulations of
trash; vermin or rodent infestation; or
fire hazards.
(m) Sanitary condition—(1) Perform-
ance requirement. The dwelling unit and
its equipment must be in sanitary con-
dition.
598
Office of the Assistant Secretary, HUD
(2) Acceptability criteria. The dwelling
unit and its equipment must be free of
vermin and rodent infestation.
(n) Smoke detectors performance re-
quirement—(1) Except as provided in
paragraph (n) (2) of this section, each
dwelling unit must have at least one
battery -operated or hard -wired smoke
detector, in proper operating condition,
on each level of the dwelling unit, in-
cluding basements but excepting crawl
spaces and unfinished attics. Smoke
detectors must be installed in accord-
ance with and meet the requirements
of the National Fire Protection Asso-
ciation Standard (NFPA) 74 (or its suc-
cessor standards). If the dwelling unit
is occupied by any hearing -impaired
person, - smoke detectors must have an
alarm system, designed for hearing -im-
paired persons as specified in NFPA 74
(or successor standards).
(2) For units assisted prior to April
24, 1993, owners who installed battery -
operated or hard -wired smoke detec-
tors prior to April 24, 1993 in compli-
ance with HUD's smoke detector re-
quirements, including the regulations
published on July 30, 1992, (57 FR 33846),
will not be required subsequently to
comply with any additional require-
ments mandated by NFPA 74 (i.e., the
owner would not be required to install
a smoke detector in a basement not
used for living purposes, nor would the
owner be required to change the loca-
tion of the smoke detectors that have
already been installed on the other
floors of the unit).
[GO FR 34695, July 3, 1995, as amended at G1
FR 27163, May 30, 1996; 63 FR 23861, Apr. 30,
1998; 64 FR 26646, May 14, 1999; 64 FR 49658,
Sept. 14, 1999; 64 FR 50230, Sept. 15, 1999]
EFFECTIVE DATE NOTE; At 64 FR 50230,
Sept. 15, 1999, § 982.401 was amended by revis-
ing paragraph (j), effective Sept. 15, 2000. For
the convenience of the user, the superseded
text is set forth as follows:
§ 982.401 Housing quality standards (HQS).
(j) Lead -based paint performance require-
ment—(1) Purpose and applicability. (i) The
purpose of paragraph (j) of this section is to
implement section 302 of the Lead -Based
Paint Poisoning Prevention Act, 42 U.S.C.
4822, by establishing procedures to eliminate
as far as practicable the hazards of lead -
based paint poisoning for units assisted
§ 982.401
under this part. Paragraph (j) of this section
is issued under 24 CFR 35.24 (b) (4) and super-
sedes, for all housing to which it applies, the
requirements of subpart C of 24 CFR part 35.
(ii) The requirements of paragraph (j) of
this section do not apply to 0-bedroom units,
units that are certified by a qualified inspec-
tor to be free of lead -based paint, or units
designated exclusively for elderly. The re-
quirements of subpart A of 24 CFR part 35
apply to all units constructed prior to 1978
covered by a HAP contract under part 982.
(2) ,Definitions.
Chewable surface. Protruding painted sur-
faces up to five feet from the floor or ground
that are readily accessible to children under
six years of age; for example, protruding cor-
ners, window sills and frames, doors and
frames, and other protruding woodwork.
Component. An element of a residential
structure identified by type and location,
such as a bedroom wall, an exterior window
sill, a baseboard in a living room, a kitchen
floor, an interior window sill in a bathroom,
a porch floor, stair treads in a common stair-
well, or an exterior wall.
Defective paint surface. A surface on which
the paint is cracking, scaling, chipping, pool-
ing, or loose.
Elevated blood lead level (EBL). Excessive
absorption of lead. Excessive absorption is a
confirmed concentration of lead in whole
blood of 20 ug/dl (micrograms of lead per
deciliter) for a single test or of 15-19 ug/dl in
two consecutive tests 3-4 months apart.
HEPA means a high efficiency particle ac-
cumulator as used in lead abatement vacuum
cleaners.
Lead -based paint. A paint surface, whether
or not defective, identified as having a lead
content greater than or equal to 1 milligram
per centimeter squared (mg/cm2), or 0.5 per-
cent by weight or 5000 parts per million
(PPM).
(3) Requirements for pre-1978 units with chil-
dren under 6. (i) If a dwelling unit con-
structed before 1978 is occupied by a family
that includes a child under the age of six
years, the initial and each periodic inspec-
tion (as required under this part), must in-
clude a visual inspection for defective paint
surfaces. If defective paint surfaces are
found, such surfaces must be treated in ac-
cordance with paragraph (j)(6) of this sec-
tion.
(ii) The HA may exempt from such treat-
ment defective paint surfaces that are found
in a report by a qualified lead -based paint in-
spector not to be lead -based paint, as defined
in paragraph (j) (2) of this section. For pur-
poses of this section, a qualified lead -based
paint inspector is a State or local health or
housing agency, a lead -based paint inspector
certified or regulated by a State or local
health or housing agency, or an organization
recognized by HUD.
599
§ 982.401
(iii) Treatment of defective paint surfaces
required under this section must be com-
pleted within 30 calendar days of HA notifi-
cation to the owner. When weather condi-
tions prevent treatment of the defective
paint conditions on exterior surfaces within
the 30 day period, treatment as required by
paragraph (j) (6) of this section may be de-
layed for a reasonable time.
(iv) The requirements in this paragraph
(j)(3) apply to:
(A) All painted interior surfaces within the
unit (including ceilings but excluding fur-
niture);
(B) The entrance and hallway providing ac-
cess to a unit in a multi -unit building; and
(C) Exterior surfaces up to five feet from
the floor or ground that are readily acces-
sible to children under six years of age (in-
cluding walls, stairs, decks, porches, rail-
ings, windows and doors, but excluding out-
buildings such as garages and sheds).
(4) Additional requirements for pre-1978 units
with children under 6 with an EBL. (i) In addi-
tion to the requirements of paragraph (j)(3)
of this section, for a dwelling unit con-
structed before 1978 that is occupied by a
family with a child under the age of six years
with an identified EBL condition, the initial
and each periodic inspection (as required
under this part) must include a test for lead -
based paint on chewable surfaces. Testing is
not required if previous testing of chewable
surfaces is negative for lead -based paint or if
the chewable surfaces have already been
treated.
(ii) Testing must be conducted by a State
or local health or housing agency, an inspec-
tor certified or regulated by a State or local
health or housing agency, or an organization
recognized by HUD. Lead content must be
tested by using an X-ray fluorescence ana-
lyzer (XRF) or by laboratory analysis of
paint samples. Where lead -based paint on
chewable surfaces is identified, treatment of
the paint surface in accordance with para-
graph (j)(6) of this section is required, and
treatment shall be completed within the
time limits in paragraph (j)(3) of this sec-
tion,
(iii) The requirements in paragraph (j) (4) of
this section apply to all protruding painted
surfaces up to five feet from the floor or
ground that are readily accessible to chil-
dren under six years of age:
(A) Within the unit;
(B) The entrance and hallway providing ac-
cess to a unit in a multi -unit building; and
(C) Exterior surfaces (including walls,
stairs, decks, porches, railings, windows and
doors, but excluding outbuildings such as ga-
rages and sheds).
(5) Treatment of chewable surfaces without
testing. In lieu of the procedures set forth in
paragraph (j)(4) of this section, the HA may,
at its discretion, waive the testing require-
ment and require the owner to treat all inte-
24 CFR Ch. IX (4-1-00 Edition)
rior and exterior chewable surfaces in ac-
cordance with the methods set out in para-
graph (j) (6) of this section.
(6) Treatment methods and requirements.
Treatment of defective paint surfaces and
chewable surfaces must consist of covering
or removal of the paint in accordance with
the following requirements:
(i) A defective paint surface shall be treat-
ed if the total area of defective paint on a
component is:
(A) More than 10 square feet on an exterior
wall;
(B) More than 2 square feet on an interior
or exterior component with a large surface
area, excluding exterior walls and including,
but not limited to, ceilings, floors, doors,
and interior walls; or
(C) More than 10 percent of the total sur-
face area on an interior or exterior compo-
nent with a small surface area, including,
but not limited to, window sills, baseboards
and trim,
(ii) Acceptable methods of treatment are:
removal by wet scraping, wet sanding, chem-
ical stripping on or off site, replacing paint-
ed components, scraping with infra -red or
coil type heat gun with temperatures below
1100 degrees, HEPA vacuum sanding, HEPA
vacuum needle gun, contained hydroblasting
or high pressure wash with HEPA vacuum,
and abrasive sandblasting with HEPA vacu-
um. Surfaces must be covered with durable
materials with joints and edges sealed and
caulked as needed to prevent the escape of
lead contaminated dust,
(iii) Prohibited methods of removal are:
open flame burning or torching; machine
sanding or grinding without a HEPA ex-
haust; uncontained hydroblasting or high
pressure wash; and dry scraping except
around electrical outlets or except when
treating defective paint spots no more than
two square feet in any one interior room or
space (hallway, pantry, etc.) or totalling no
more than twenty square feet on exterior
surfaces.
(iv) During exterior treatment soil and
playground equipment must be protected
from contamination.
(v) All treatment procedures must be con-
cluded with a thorough cleaning of all sur-
faces in the room or area of treatment to re-
move fine dust particles. Cleanup must be
accomplished by wet washing surfaces with a
lead solubilizing detergent such as trisodiurn
phosphate or an equivalent solution.
(vi) Waste and debris must be disposed of
in accordance with all applicable Federal,
state and local laws.
(7) Tenant protection. The owner must take
appropriate action to protect residents and
their belongings from hazards associated
with treatment procedures. Residents must
not enter spaces undergoing treatment until
cleanup is completed. Personal belongings
600
Office of the Assistant Secretary, HUD
that are in work areas must be relocated or
otherwise protected from contamination.
(8) Owner information responsibilities. Prior
to execution of the HAP contract, the owner
must inform the PHA and the family of any
knowledge of the presence of lead -based
paint on the surfaces of the residential unit.
(9) HA data collection and recordkeeping re-
sponsibilities. (i) The HA must attempt to ob-
tain annually from local health agencies the
names and addresses of children with identi-
fied EBLs and must annually match this in-
formation with the names and addresses of
participants under this part. If a inatch oc-
curs, the HA must determine whether local
health officials have tested the unit for lead -
based paint. If the unit has lead -based paint
the HA must require the owner to treat the
lead -based paint. If the owner does not com-
plete the corrective actions required by this
section, the family must be issued a certifi-
cate or voucher to move.
(ii) The PHA must keep a copy of each in-
spection report for at least three years. If a
dwelling unit requires testing, or if the
dwelling unit requires treatment of chewable
surfaces based on the testing, the HA must
keep the test results indefinitely and, if ap-
plicable, the owner certification of treat-
ment. The records must indicate which
chewable surfaces in the dwelling units have
been tested and which chewable surfaces in
the units have been treated. If records estab-
lish that certain chewable surfaces were
tested or tested and treated in accordance
with the standards prescribed in this section,
such chewable surfaces do not have to be
tested or treated at any subsequent time.
§ 982.402 Subsidy standards.
(a) Purpose. (1) The PHA must estab-
lish subsidy standards that determine
the number of bedrooms needed for
families of different sizes and composi-
tions.
(2) For each family, the PHA deter-
mines the appropriate number of bed-
rooms under the PHA subsidy stand-
ards (family unit size).
(3) The family unit size number is en-
tered on the voucher issued to the fam-
ily. The PHA issues the family a
voucher for the family unit size when a
family is selected for participation in
the program.
(b) Determining family unit size. The
following requirements apply when the
PHA determines family unit size under
the PHA subsidy standards:
(1) The subsidy standards must pro-
vide for the smallest number of bed-
§ 982.402
rooms needed to house a family with-
out overcrowding.
(2) The subsidy standards must be
consistent with space requirements
under the housing quality standards
(See §982.401(d)).
(3) The subsidy standards must be ap-
plied consistently for all families of
like size and composition.
(4) A child who is temporarily away
from the home because of placement in
foster care is considered a member of'
the family in determining the family
unit size.
(5) A family that consists of a preg-
nant woman (with no other persons)
must be treated as a two -person fam-
ily.
(6) Any live-in aide (approved by the
PHA to reside in the unit to care for a
family member who is disabled or is at
least 50 years of age) must be counted
in determining the family unit size;
(7) Unless a live -in -aide resides with
the family, the family unit size for any
family consisting of a single person
must be either a zero or one -bedroom
unit, as determined under the PHA
subsidy standards.
(8) In determining family unit size
for a particular family, the PHA may
grant an exception to its established
subsidy standards if the PHA deter-
mines that the exception is justified by
the age, sex, health, handicap, or rela-
tionship of family members or other
personal circumstances. (For a single
person other than a disabled or elderly
person or remaining family member,
such PHA exception may not override
the limitation in paragraph (b) (7) of
this section.)
(c) Effect of family unit size -maximum
subsidy in voucher program. The family
unit size as determined for a family
under the PHA subsidy standard is used
to determine the maximum rent sub-
sidy for a family assisted in the vouch-
er program. For a voucher tenancy, the
PHA establishes payment standards by
number of bedrooms. The payment
standard for a family shall be the lower
of:
(1) The payment standard amount for
the family unit size; or
(2) The payment standard amount for
the unit size of the unit rented by the
family.
601
§ 982.403
(3) Voucher program. For a voucher
tenancy, the PHA establishes payment
standards by number of bedrooms. The
payment standards for the family must
be the lower of:
(i) The payment standards for the
family unit size; or
(ii) The payment standard for the
unit size rented by the family.
(d) Size of unit occupied by family. (1)
The family may lease an otherwise ac-
ceptable dwelling unit with fewer bed-
rooms than the family unit size. How-
ever, the dwelling unit must meet the
applicable HQS space requirements.
(2) The family may lease an other-
wise acceptable dwelling unit with
more bedrooms than the family unit
size.
[60 FR 34695, July 3, 1995, as amended at 63
FR 23861, Apr. 30, 1998; 64 FR 26646, May 14,
1999]
§ 982.403 Terminating HAP contract
when unit is too small.
(a) Violation of HQS space standards.
(1) If the PHA determines that a unit
does not meet the HQS space standards
because of an increase in family size or
a change in family composition, the
PHA must issue the family a new
voucher, and the family and PHA must
try to find an acceptable unit as soon
as possible.
(2) If an acceptable unit is available
for rental by the family, the PHA must
terminate the HAP contract in accord-
ance with its terms.
(b) Certificate program only —Subsidy
too big for family size. (1) Paragraph (b)
of this section applies to the tenant -
based certificate program.
(2) The PHA must issue the family a
new voucher, and the family and PHA
must try to find an acceptable unit as
soon as possible if:
(i) The family is residing in a dwell-
ing unit with a larger number of bed-
rooms than appropriate for the family
unit size under the PHA subsidy stand-
ards; and
(ii) The gross rent for the unit (sum
of the contract rent plus any utility al-
lowance for the unit size leased) ex-
ceeds the FMR/exception rent limit for
the family unit size under the PHA
subsidy standards.
(3) The PHA must notify the family
that exceptions to the subsidy stand-
24 CFR Ch. IX (4-1-00 Edition)
ards may be granted, and the cir-
cumstances in which the grant of an
exception will be considered by the
PHA.
(4) If an acceptable unit is available
for rental by the family, the PHA must
terminate the HAP contract in accord-
ance with its terms.
(c) Termination. When the PHA termi-
nates the HAP contract under para-
graph (a) of this section:
(1) The PHA must notify the family
and the owner of the termination; and
(2) The HAP contract terminates at
the end of the calendar month that fol-
lows the calendar month in which the
PHA gives such notice to the owner.
(3) The family may move to a new
unit in accordance with § 982.314.
(Approved by the Office of Management and
Budget under control number 2577-0169)
[60 FR 34695, July 3, 1995, as amended at 60
FR 45661, Sept. 1, 1995; 64 FR 26647, May 14,
1999]
§ 982.404 Maintenance: Owner and
family responsibility; PHA rem-
edies.
(a) Owner obligation. (1) The owner
must maintain the unit in accordance
with HQS.
(2) If the owner fails to maintain the
dwelling unit in accordance with HQS,
the PHA must take prompt and vig-
orous action to enforce the owner obli-
gations. PHA remedies for such breach
of the HQS include termination, sus-
pension or reduction of housing assist-
ance payments and termination of the
HAP contract.
(3) The PHA must not make any
housing assistance payments for a
dwelling unit that fails to meet the
I-IQS, unless the owner corrects the de-
fect within the period specified by the
PHA and the PHA verifies the correc-
tion. If a defect is life threatening, the
owner must correct the defect within
no more than 24 hours. For other de-
fects, the owner must correct the de-
fect within no more than 30 calendar
days (or any PHA -approved extension).
(4) The owner is not responsible for a
breach of the HQS that is not caused by
the owner, and for which the family is
responsible (as provided in § 982.404(b)
and §982.551(c)). (However, the PHA
may terminate assistance to a family
602