982.352—Eligible housing.
(a) Ineligible housing.
The following types of housing may not be assisted by a PHA in the tenant-based programs:
(3)
Nursing homes, board and care homes, or facilities providing continual psychiatric, medical, or nursing services;
(5)
Units on the grounds of penal, reformatory, medical, mental, and similar public or private institutions;
(b) PHA-owned housing.
(1)
A unit that is owned by the PHA that administers the assistance under the consolidated ACC (including a unit owned by an entity substantially controlled by the PHA) may only be assisted under the tenant-based program if all the following conditions are satisfied:
(i)
The PHA must inform the family, both orally and in writing, that the family has the right to select any eligible unit available for lease, and a PHA-owned unit is freely selected by the family, without PHA pressure or steering.
(iii)
During assisted occupancy, the family may not benefit from any form of housing subsidy that is prohibited under paragraph (c) of this section.
(iv)
(A)
The PHA must obtain the services of an independent entity to perform the following PHA functions as required under the program rule:
(1) To determine rent reasonableness in accordance with § 982.507. The independent agency shall communicate the rent reasonableness determination to the family and the PHA.
(2) To assist the family negotiate the rent to owner in accordance with § 982.506.
(3) To inspect the unit for compliance with the HQS in accordance with § 982.305(a) and § 982.405 (except that § 982.405(e) is not applicable). The independent agency shall communicate the results of each such inspection to the family and the PHA.
(B)
The independent agency used to perform these functions must be approved by HUD. The independent agency may be the unit of general local government for the PHA jurisdiction (unless the PHA is itself the unit of general local government or an agency of such government), or may be another HUD-approved independent agency.
(C)
The PHA may compensate the independent agency from PHA ongoing administrative fee income for the services performed by the independent agency. The PHA may not use other program receipts to compensate the independent agency for such services. The PHA and the independent agency may not charge the family any fee or charge for the services provided by the independent agency.
(c) Prohibition against other housing subsidy.
A family may not receive the benefit of tenant-based assistance while receiving the benefit of any of the following forms of other housing subsidy, for the same unit or for a different unit:
(3)
Assistance under former Section 23 of the United States Housing Act of 1937 (before amendment by the Housing and Community Development Act of 1974);
(7)
Rental assistance payments under Section 521 of the Housing Act of 1949 (a program of the Rural Development Administration);
(12)
Any other duplicative federal, State, or local housing subsidy, as determined by HUD. For this purpose, “housing subsidy” does not include the housing component of a welfare payment, a social security payment received by the family, or a rent reduction because of a tax credit.
(Approved by the Office of Management and Budget under control number 2577-0169)