24 Cfr 5

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§ 5.701

24 CFR Subtitle A (4–1–17 Edition)

(iii) Full disclosure of any family relationship between the owner and any
security personnel. For this purpose,
‘‘owner’’ includes a principal or other
interested party.
(iv) How residence by security personnel in a project unit will increase
security for Section 8 assisted families
residing in the project.
(v) The amount payable monthly as
rent to the unit owner by security personnel residing in the project (including a description of how this amount is
determined), and the amount of any
other compensation by the owner to
such resident security personnel.
(vi) The terms of occupancy by such
security personnel. The lease by owner
to the approved security personnel may
provide that occupancy of the unit is
authorized only while the security personnel is satisfactorily performing any
agreed responsibilities and functions
for project security.
(vii) Other information as requested
by the contract administrator.
(d) Action by contract administrator. (1)
The contract administrator shall have
discretion to approve or disapprove
owner’s application, and to impose conditions for approval of occupancy by
security personnel in a section 8
project unit.
(2) Notice of approval by the contract
administrator shall specify the term of
such approved occupancy. Such approval may be withdrawn at the discretion of the contract administrator, for
example, if the contract administrator
determines that such occupancy is not
providing adequate security benefits as
proposed in the owner’s application; or
that security benefits from such occupancy are not a sufficient return for
program costs.
(e) Housing assistance payment and
rent. (1) During approved occupancy by
security personnel as provided in this
section, the amount of the monthly
housing assistance payment to the
owner shall be equal to the contract
rent (as determined in accordance with
the HAP contract and HUD requirements) minus the amount (as approved
by the contract administrator) of rent
payable monthly as rent to the unit
owner by such security personnel. The
owner shall bear the risk of collecting
such rent from such security personnel,

and the amount of the housing assistance payment shall not be increased
because of non-payment by such security personnel. The owner shall not be
entitled to receive any vacancy payment for the period following occupancy by such security personnel.
(2) In approving the amount of
monthly rent payable by security personnel for occupancy of a contract
unit, the contract administrator may
consider whether security services to
be performed are an adequate return
for housing assistance payments on the
unit, or whether the cost of security
services should be borne by the owner
from other project income.
[65 FR 16721, Mar. 29, 2000]
EFFECTIVE DATE NOTE: At 65 FR 16721, Mar.
29, 2000, § 5.661 was added. This section contains information collection and recordkeeping requirements and will not become
effective until approval has been given by
the Office of Management and Budget.

Subpart G—Physical Condition
Standards and Inspection Requirements
SOURCE: 63 FR 46577, Sept. 1, 1998, unless
otherwise noted.

§ 5.701

Applicability.

(a) This subpart applies to housing
assisted under the HUD programs listed in 24 CFR 200.853(a).
(b) This subpart applies to housing
with mortgages insured or held by
HUD, or housing that is receiving assistance from HUD, under the programs listed in 24 CFR 200.853(b).
(c) This subpart also applies to Public Housing (housing receiving assistance under the U.S. Housing Act of
1937, other than under section 8 of the
Act).
(d) For purposes of this subpart, the
term ‘‘HUD housing’’ means the types
of housing listed in paragraphs (a), (b),
and (c) of this section.
[63 FR 46577, Sept. 1, 1998, as amended at 65
FR 77240, Dec. 8, 2000]

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Office of the Secretary, HUD

§ 5.703

§ 5.703 Physical condition standards
for HUD housing that is decent,
safe, sanitary and in good repair
(DSS/GR).
HUD housing must be decent, safe,
sanitary and in good repair. Owners of
housing described in § 5.701(a), mortgagors of housing described in § 5.701(b),
and PHAs and other entities approved
by HUD owning housing described in
§ 5.701(c), must maintain such housing
in a manner that meets the physical
condition standards set forth in this
section in order to be considered decent, safe, sanitary and in good repair.
These standards address the major
areas of the HUD housing: the site; the
building exterior; the building systems;
the dwelling units; the common areas;
and health and safety considerations.
(a) Site. The site components, such as
fencing and retaining walls, grounds,
lighting, mailboxes/project signs, parking lots/driveways, play areas and
equipment, refuse disposal, roads,
storm drainage and walkways must be
free of health and safety hazards and be
in good repair. The site must not be
subject to material adverse conditions,
such as abandoned vehicles, dangerous
walks or steps, poor drainage, septic
tank back-ups, sewer hazards, excess
accumulations of trash, vermin or rodent infestation or fire hazards.
(b) Building exterior. Each building on
the site must be structurally sound, secure, habitable, and in good repair.
Each building’s doors, fire escapes,
foundations, lighting, roofs, walls, and
windows, where applicable, must be
free of health and safety hazards, operable, and in good repair.
(c) Building systems. Each building’s
domestic water, electrical system, elevators, emergency power, fire protection, HVAC, and sanitary system must
be free of health and safety hazards,
functionally adequate, operable, and in
good repair.
(d) Dwelling units. (1) Each dwelling
unit within a building must be structurally sound, habitable, and in good
repair. All areas and aspects of the
dwelling unit (for example, the unit’s
bathroom, call-for-aid (if applicable),
ceiling, doors, electrical systems,
floors, hot water heater, HVAC (where
individual units are provided), kitchen,
lighting, outlets/switches, patio/porch/

balcony, smoke detectors, stairs, walls,
and windows) must be free of health
and safety hazards, functionally adequate, operable, and in good repair.
(2) Where applicable, the dwelling
unit must have hot and cold running
water, including an adequate source of
potable water (note for example that
single room occupancy units need not
contain water facilities).
(3) If the dwelling unit includes its
own sanitary facility, it must be in
proper operating condition, usable in
privacy, and adequate for personal hygiene and the disposal of human waste.
(4) The dwelling unit must include at
least one battery-operated or hardwired smoke detector, in proper working condition, on each level of the unit.
(e) Common areas. The common areas
must be structurally sound, secure, and
functionally adequate for the purposes
intended. The basement/garage/carport,
restrooms, closets, utility, mechanical,
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

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§ 5.705

24 CFR Subtitle A (4–1–17 Edition)

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

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§ 5.801 Uniform
standards.

financial

reporting

(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 Reha-

bilitation, 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;
(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);

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