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Unit Transfers and Reasonable Accommodation

As readers of this blog (and my Compliance Corner column) will know, I have taken the HUD Handbook 4350.3, Rev. 1 to be a very literal document.  Perhaps more than most other federal government document, the handbook means exactly what it says.

So, with that introduction in mind I want to address a topic that frequently causes some consternation in our COS and Change 2 programs: Unit transfers and reasonable accommodation.

First, some fine points:

Yes, you must address unit transfer policies in the property's tenant selection plan (Figure 4-2 of HUD Handbook 4350.3, Rev. 1).  Yes, you must reference reasonable accommodation in connection with unit transfers (Chapter 7, Section 3 of HUD Handbook 4350.3, Rev. 1.  No, you do not have to state that the owner has a financial obligation to pay for the move as a reasonable accommodation in the Tenant Selection Plan (A question I have been asked by both managers and Contract Administrators). The first two issues are cause for a finding on an MOR, while the third (in my opinion) is not.

A statement of this nature could obligate the owner to paying costs for a move as a reasonable accommodation regardless of other factors.  In fact, HUD has never treated reasonable accommodations in such an absolute way.  Instead, HUD has always said that an accommodation that would create or impose either an undue financial and administrative burden or a fundamental alteration of program isn't reasonable. (Paragraph 7-16B2, HUD Handbook 4350.3, Rev. 1 -- although the paragraph makes no reference to "fundamental alteration," that language is included in other areas of the handbook).

It has now been more than one year since the publication of Change 2.  But the requirement to pay for reasonable accommodations in HUD assisted housing, provided that it would not impose an undue financial and administrative burden or fundamental alteration of program, is much older than Change 2.  That requirement goes back to 1988 and the issuance of HUD's Section 504 regulations.

Splitting families?

Let me suggest a couple of scenarios:

In the first, a husband and wife are divorcing.  One of the couple wants to move into another unit at the site, while their spouse retains the existing unit.

In the second, two people who live in the same unit approach management to request, as a reasonable accommodation, that one of the household members leave the unit and occupy another unit at the property.

Do these scenarios sound familiar to you?

The fact of the matter is that HUD has historically not looked favorably on the splitting of families into different, federally assisted units with the possible exception of the Demo-Dispo program.  In the first scenario, the best way to handle the matter would probably be to request the individual who wants their own apartment at the property to complete an application (this assumes you have a waiting list that is open).  But, you probably want to develop a written policy for such circumstances as the one described in the first scenario.