24 CFR part 5 Subpart H - Uniform Financial Reporting Standard

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Office of the Secretary, HUD

§ 5.801

community rooms, day care, halls/corridors, stairs, kitchens, laundry rooms,
office, porch, patio, balcony, and trash
collection areas, if applicable, must be
free of health and safety hazards, operable, and in good repair. All common
area ceilings, doors, floors, HVAC,
lighting, outlets/switches, smoke detectors, stairs, walls, and windows, to
the extent applicable, must be free of
health and safety hazards, operable,
and in good repair. These standards for
common areas apply, to a varying extent, to all HUD housing, but will be
particularly relevant to congregate
housing, independent group homes/residences, and single room occupancy
units, in which the individual dwelling
units (sleeping areas) do not contain
kitchen and/or bathroom facilities.
(f) Health and safety concerns. All
areas and components of the housing
must be free of health and safety hazards. These areas include, but are not
limited to, air quality, electrical hazards, elevators, emergency/fire exits,
flammable materials, garbage and debris, handrail hazards, infestation, and
lead-based paint. For example, the
buildings must have fire exits that are
not blocked and have hand rails that
are undamaged and have no other observable deficiencies. The housing
must have no evidence of infestation
by rats, mice, or other vermin, or of
garbage and debris. The housing must
have no evidence of electrical hazards,
natural hazards, or fire hazards. The
dwelling units and common areas must
have proper ventilation and be free of
mold, odor (e.g., propane, natural gas,
methane gas), or other observable deficiencies. The housing must comply
with all requirements related to the
evaluation and reduction of lead-based
paint hazards and have available proper certifications of such (see 24 CFR
part 35).
(g) Compliance with State and local
codes. The physical condition standards
in this section do not supersede or preempt State and local codes for building
and maintenance with which HUD
housing must comply. HUD housing
must continue to adhere to these
codes.

§ 5.705 Uniform physical inspection requirements.
Any entity responsible for conducting a physical inspection of HUD
housing, to determine compliance with
this subpart, must inspect such HUD
housing annually in accordance with
HUD-prescribed physical inspection
procedures. The inspection must be
conducted annually unless the program
regulations governing the housing provide otherwise or unless HUD has provided otherwise by notice.
[65 FR 77240, Dec. 8, 2000]

Subpart H—Uniform Financial
Reporting Standards
§ 5.801 Uniform
standards.

financial

(a) Applicability. This subpart H implements uniform financial reporting
standards for:
(1) Public housing agencies (PHAs)
receiving assistance under sections 5, 9,
or 14 of the 1937 Act (42 U.S.C. 1437c,
1437g, and 1437l) (Public Housing);
(2) PHAs as contract administrators
for any Section 8 project-based or tenant-based housing assistance payments
program, which includes assistance
under the following programs:
(i) Section 8 project-based housing
assistance payments programs, including, but not limited to, the Section 8
New Construction, Substantial Rehabilitation, Loan Management SetAside, Property Disposition, and Moderate Rehabilitation (including the
Single Room Occupancy program for
homeless individuals);
(ii) Section 8 Project-Based Certificate programs;
(iii) Any program providing Section 8
project-based renewal contracts; and
(iv) Section 8 tenant-based assistance
under the Section 8 Certificate and
Voucher program.
(3) Owners of housing assisted under
any Section 8 project-based housing assistance payments program:
(i) Including, but not limited to, the
Section 8 New Construction, Substantial Rehabilitation, Loan Management
Set-Aside, and Property Disposition
programs;

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§ 5.801

24 CFR Subtitle A (4–1–16 Edition)

(ii) Excluding the Section 8 Moderate
Rehabilitation Program (which includes the Single Room Occupancy program for homeless individuals) and the
Section 8 Project-Based Certificate
Program;
(4) Owners of multifamily projects receiving direct or indirect assistance
from HUD, or with mortgages insured,
coinsured, or held by HUD, including
but not limited to housing under the
following HUD programs:
(i) Section 202 Program of Supportive
Housing for the Elderly;
(ii) Section 811 Program of Supportive Housing for Persons with Disabilities;
(iii) Section 202 loan program for
projects for the elderly and handicapped (including 202/8 projects and 202/
162 projects);
(iv) Section 207 of the National Housing Act (NHA) (12 U.S.C. 1701 et seq.)
(Rental Housing Insurance);
(v) Section 213 of the NHA (Cooperative Housing Insurance);
(vi) Section 220 of the NHA (Rehabilitation and Neighborhood Conservation
Housing Insurance);
(vii) Section 221(d) (3) and (5) of the
NHA (Housing for Moderate Income
and Displaced Families);
(viii) Section 221(d)(4) of the NHA
(Housing for Moderate Income and Displaced Families);
(ix) Section 231 of the NHA (Housing
for Elderly Persons);
(x) Section 232 of the NHA (Mortgage
Insurance for Nursing Homes, Intermediate Care Facilities, Board and
Care Homes);
(xi) Section 234(d) of the NHA (Rental) (Mortgage Insurance for Condominiums);
(xii) Section 236 of the NHA (Rental
and Cooperative Housing for Lower Income Families);
(xiii) Section 241 of the NHA (Supplemental
Loans
for
Multifamily
Projects); and
(5) HUD-approved Title I and Title II
supervised and nonsupervised lenders
and mortgagees.
(6) Operators of projects with mortgages insured or held by HUD under
section 232 of the Act (Mortgage Insurance for Nursing Homes, Intermediate
Care Facilities, Board and Care
Homes).

(b) Submission of financial information.
Entities (or individuals) to which this
subpart is applicable must provide to
HUD such financial information as required by HUD. Such information must
be provided on an annual basis, except
as required more frequently under
paragraph (c)(4) of this section. This information must be:
(1) Prepared in accordance with Generally Accepted Accounting Principles
as further defined by HUD in supplementary guidance;
(2) Submitted electronically to HUD
through the internet, or in such other
electronic format designated by HUD,
or in such non-electronic format as
HUD may allow if the burden or cost of
electronic reporting is determined by
HUD to be excessive; and
(3) Submitted in such form and substance as prescribed by HUD.
(4) With respect to financial reports
relating to properties insured under
section 232 of the Act, concurrently
with submitting the information to
HUD, submitted to the mortgagee in a
format and manner prescribed and/or
approved by HUD.
(c) Filing of financial reports. (1) For
entities listed in paragraphs (a)(1) and
(2) of this section, the financial information to be submitted to HUD in accordance with paragraph (b) of this section, must be submitted to HUD annually, no later than 60 days after the end
of the fiscal year of the reporting period, and as otherwise provided by law
(for public housing agencies, see also 24
CFR 903.33).
(2) For entities listed in paragraphs
(a)(3) and (4) of this section, the financial information to be submitted to
HUD in accordance with paragraph (b)
of this section, must be submitted to
HUD annually, no later than 90 days
after the end of the fiscal year of the
reporting period, and as otherwise provided by law.
(3) For those entities listed in paragraph (a)(5) of this section, the financial information to be submitted to
HUD in accordance with paragraph (b)
of this section must be submitted to
HUD annually, no later than 90 days
after the end of the fiscal year (or
within an extended time if an extension is granted at the sole discretion of
the Secretary). An extension request

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Office of the Secretary, HUD

§ 5.801

must be received no earlier than 45
days and no later than 15 days prior to
the submission deadline.
(4) For entities listed in paragraph
(a)(6) of this section, the financial information to be submitted to HUD in
accordance with paragraph (b) of this
section must be submitted to HUD on a
quarterly and fiscal-year-to-date basis,
within 60 calendar days of the end of
each quarterly reporting period deadline, except that the final fiscal-yearend quarter and fiscal-year-to-date reports must be submitted to HUD within
90 calendar days of the end of the fiscal-year-end quarter, or within such
additional time as may be provided by
the Commissioner for good cause
shown. HUD may direct that such
forms be submitted to the lender or another third party in addition to or in
lieu of submission to HUD.
(i) The financial statements submitted by entities listed in paragraph
(a)(6) of this section may, at the operator’s option, be operator-certified rather than audited, provided, however, if
the operator is also the borrower, then
that entity’s obligation to submit an
annual audited financial statement (in
addition to its obligation as an operator to submit financial information
on a quarterly and year-to-date basis)
remains and is not obviated.
(ii) If HUD has reason to believe that
a particular operator’s operator-certified statements may be unreliable
(for example, indicate a likely prohibited use of project funds), or are presented in a manner that is inconsistent
with Generally Accepted Accounting
Principles, HUD may, on a case-by-case
basis, require audited financial statements from the operator. With respect
to facilities with FHA-insured or HUDheld Section 232 mortgages, HUD may
request more frequent financial statements from the borrower and/or the operator on a case-by-case basis when the
circumstances warrant. Nothing in this
section limits HUD’s ability to obtain
further or more frequent information
when appropriate pursuant to the applicable regulatory agreement.
(d) Reporting compliance dates. Entities (or individuals) that are subject to
the reporting requirements in this section must commence compliance with
these requirements as follows:

(1) For PHAs listed in paragraphs
(a)(1) and (a)(2) of this section, the requirements of this section will begin
with those PHAs with fiscal years ending September 30, 1999 and later.
Unaudited financial statements will be
required 60 days after the PHA’s fiscal
year end, and audited financial statements will then be required no later
than 9 months after the PHA’s fiscal
year end, in accordance with the Single
Audit Act and 2 CFR part 200, subpart
F. A PHA with a fiscal year ending
September 30, 1999 that elects to submit its unaudited financial report earlier than the due date of November 30,
1999 must submit its report as required
in this section. On or after September
30, 1998, but prior to November 30, 1999
(except for a PHA with its fiscal year
ending September 30, 1999), PHAs may
submit their financial reports in accordance with this section.
(2) For entities listed in paragraphs
(a)(3) and (a)(4) of this section, the requirements of this section will begin
with those entities with fiscal years
ending December 31, 1998 and later. Entities listed in paragraphs (a)(3) and
(a)(4) of this section with fiscal years
ending December 31, 1998 that elect to
submit their reports earlier than the
due date must submit their financial
reports as required in this section. On
or after September 30, 1998 but prior to
January 1, 1999, these entities may submit their financial reports in accordance with this section.
(3) The requirements of this section
apply to the entities listed in paragraph (a)(5) of this section with fiscal
years ending on or after September 30,
2002. Audited financial statements submitted by lenders with fiscal years ending before September 30, 2002, may either be submitted in paper or electronically at the lenders’ option. Audited financial statements submitted by lenders with fiscal years ending on or after
September 30, 2002, must be submitted
electronically.
(4) Entities described in paragraph
(a)(6) of this section must comply with
the requirements of this section with
respect to fiscal years commencing on
or after the date that is 60 calendar
days after the date on which HUD announces, through FEDERAL REGISTER
notice, that it has issued guidance on

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§ 5.850

24 CFR Subtitle A (4–1–16 Edition)

the manner in which these reports will
be transmitted to HUD.
(e) Limitation on changing fiscal years.
To allow for a period of consistent assessment of the financial reports submitted to HUD under this subpart part,
PHAs listed in paragraphs (a)(1) and
(a)(2) of this section will not be allowed
to change their fiscal years for their
first three full fiscal years following
October 1, 1998.
(f) Responsibility for submission of financial report. The responsibility for
submission of the financial report due
to HUD under this section rests with
the individuals and entities listed in
paragraph (a) of this section.
[63 FR 46591, Sept. 1, 1998, as amended at 64
FR 1505, Jan. 11, 1999; 64 FR 33755, June 24,
1999; 65 FR 16295, Mar. 27, 2000; 67 FR 53451,
Aug. 15, 2002; 77 FR 55134, Sept. 7, 2012; 78 FR
57060, Sept. 17, 2013; 79 FR 55362, Sept. 16,
2014; 80 FR 75934, Dec. 7, 2015]

Subpart I—Preventing Crime in
Federally Assisted Housing—
Denying Admission and Terminating Tenancy for Criminal
Activity or Alcohol Abuse

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SOURCE: 66 FR 28792, May 24, 2001, unless
otherwise noted.

§ 5.851 What authority do I have to
screen applicants and to evict tenants?
(a) Screening applicants. You are authorized to screen applicants for the
programs covered by this part. The
provisions of this subpart implement
statutory directives that either require
or permit you to take action to deny admission to applicants under certain circumstances in accordance with established standards, as described in this
subpart. The provisions of this subpart
do not constrain your authority to
screen out applicants who you determined are unsuitable under your standards for admission.
(b) Terminating tenancy. You are authorized to terminate tenancy of tenants, in accordance with your leases
and landlord-tenant law for the programs covered by this part. The provisions of this subpart implement statutory directives that either require or
permit you to terminate tenancy under
certain circumstances, as provided in
42 U.S.C. 1437f, 1437n, and 13662, in accordance with established standards, as
described in this subpart. You retain
authority to terminate tenancy on any
basis that is otherwise authorized.

GENERAL

§ 5.852 What discretion do I have in
screening and eviction actions?

§ 5.850 Which subsidized housing is
covered by this subpart?
(a) If you are the owner of federally
assisted housing, your federally assisted housing is covered, except as
provided in paragraph (b) or (c) of this
section.
(b) If you are operating public housing, this subpart does not apply, but
similar provisions applicable to public
housing units are found in parts 960 and
966 of this title. If you administer tenant-based assistance under Section 8 or
you are the owner of housing assisted
with tenant-based assistance under
Section 8, this subpart does not apply
to you, but similar provisions that do
apply are located in part 982 of this
title.
(c) If you own or administer housing
assisted by the Rural Housing Administration under section 514 or section 515
of the Housing Act of 1949, this subpart
does not apply to you.

(a) General. If the law and regulation
permit you to take an action but do
not require action to be taken, you
may take or not take the action in accordance with your standards for admission and eviction. Consistent with
the application of your admission and
eviction standards, you may consider
all of the circumstances relevant to a
particular admission or eviction case,
such as:
(1) The seriousness of the offending
action;
(2) The effect on the community of
denial or termination or the failure of
the responsible entity to take such action;
(3) The extent of participation by the
leaseholder in the offending action;
(4) The effect of denial of admission
or termination of tenancy on household members not involved in the offending action;

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