[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR891.105]



[Page 178-179]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

  CHAPTER VIII--OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING-FEDERAL 

 

PART 891_SUPPORTIVE HOUSING FOR THE ELDERLY AND PERSONS WITH DISABILITIES

--Table of Contents

 

                 Subpart A_General Program Requirements

 

Sec.  891.105  Definitions.



    The following definitions apply, as appropriate, throughout this 

part. Other terms with definitions unique to the particular program are 

defined in Sec. Sec.  891.205, 891.305, and 891.505, as applicable.

    Adjusted income as defined in part 5, subpart F of subtitle A of 

this title.

    Affiliated entities means entities that the field office determines 

to be related to each other in such a manner that it is appropriate to 

treat them as a single entity. Such relationship shall include any 

identity of interest among such entities or their principals and the use 

by any otherwise unaffiliated entities of a single Sponsor or of 

Sponsors (or of a single Borrower or of Borrowers, as applicable) that 

have any identity of interest themselves or their principals.

    Annual income as defined in part 5, subpart F of subtitle A of this 

title. In the case of an individual residing in an intermediate care 

facility for the developmentally disabled that is assisted under title 

XIX of the Social Security Act and this part, the annual income of the 

individual shall exclude protected personal income as provided under 

that Act. For purposes of determining the total tenant payment, the 

income of such individuals shall be imputed to be the amount that the 

household would receive if assisted under title XVI of the Social 

Security Act.

    Household (eligible household) means an elderly or disabled 

household (as defined in Sec. Sec.  891.205 or 891.305, respectively), 

as applicable, that meets the project occupancy requirements approved by 

HUD and, if the household occupies an assisted unit, meets the very low-

income requirements described in Sec.  813.102 of this chapter, as 

modified by the definition of annual income in this section.

    Housing and related facilities means rental housing structures 

constructed, rehabilitated, or acquired as permanent residences for use 

by elderly or disabled households, as applicable. The term includes 

necessary community space. Except for intermediate care facilities for 

individuals with developmental disabilities, this term does not include 

nursing homes, hospitals, intermediate care facilities, or transitional 

care facilities. For the Loans for the Elderly and Persons with 

Disabilities Program, see Sec.  891.505.

    Low-income families shall have the same meaning provided in section 

3(b)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437a).

    National Sponsor means a Sponsor that has one or more Section 202 or 

one or more Section 811 project(s) under reservation, construction, or 

management in two or more different HUD geographical regions.

    Operating costs means HUD-approved expenses related to the provision 

of housing and includes:

    (1) Administrative expenses, including salary and management 

expenses



[[Page 179]]



related to the provision of shelter and, in the case of the Section 202 

Program, the coordination of services;

    (2) Maintenance expenses, including routine and minor repairs and 

groundskeeping;

    (3) Security expenses;

    (4) Utilities expenses, including gas, oil, electricity, water, 

sewer, trash removal, and extermination services. The term ``operating 

costs'' excludes telephone services for households;

    (5) Taxes and insurance;

    (6) Allowances for reserves; and

    (7) Allowances for services (in the Section 202 Program only).

    Project rental assistance contract (PRAC) means the contract entered 

into by the Owner and HUD setting forth the rights and duties of the 

parties with respect to the project and the payments under the PRAC.

    Project rental assistance payment means the payment made by HUD to 

the Owner for assisted units as provided in the PRAC. The payment is the 

difference between the total tenant payment and the HUD-approved per 

unit operating expenses except for expenses related to items not 

eligible under design and cost provisions. An additional payment is made 

to a household occupying an assisted unit when the utility allowance is 

greater than the total tenant payment. A project rental assistance 

payment, known as a ``vacancy payment,'' may be made to the Owner when 

an assisted unit is vacant, in accordance with the terms of the PRAC.

    Rehabilitation means the improvement of the condition of a property 

from deteriorated or substandard to good condition. Rehabilitation may 

vary in degree from the gutting and extensive reconstruction to the cure 

of substantial accumulation of deferred maintenance. Cosmetic 

improvements alone do not qualify as rehabilitation under this 

definition. Rehabilitation may also include renovation, alteration, or 

remodeling for the conversion or adaptation of structurally sound 

property to the design and condition required for use under this part, 

or the repair or replacement of major building systems or components in 

danger of failure. Improvement of an existing structure must require 15 

percent or more of the estimated development cost to rehabilitate the 

project to a useful life of 55 years.

    Replacement reserve account means a project account into which funds 

are deposited, which may be used only with the approval of the Secretary 

for repairs, replacement, capital improvements to the section 202 or 

section 811 units, and retrofitting to reduce the number of units as 

provided by 24 CFR 891.405(d).

    Section 202 means section 202 of the Housing Act of 1959 (12 U.S.C. 

1701q), as amended, or the Supportive Housing for the Elderly Program 

authorized by that section.

    Section 811 means section 811 of the National Affordable Housing Act 

(42 U.S.C. 8013), as amended, or the Supportive Housing for Persons with 

Disabilities Program authorized by that section.

    Start-up expenses mean necessary costs (to plan a Section 202 or 

Section 811 project, as applicable) incurred by the Sponsor or Owner 

prior to initial closing.

    Tenant payment to Owner equals total tenant payment less utility 

allowance, if any.

    Total tenant payment means the monthly amount defined in, and 

determined in accordance with part 5, subpart F of subtitle A of this 

title.

    Utility allowance is defined in part 5, subpart F of this subtitle A 

of this title and is determined or approved by HUD.

    Very low-income families shall have the same meaning provided in 

section 3(b)(2) of the United States Housing Act of 1937 (42 U.S.C. 

1437a).



[61 FR 11956, Mar. 22, 1996, as amended at 66 FR 6225, Jan. 19, 2001; 66 

FR 8175, Jan. 30, 2001; 68 FR 67320, Dec. 1, 2003; 70 FR 54209, Sept. 

13, 2005]