Properties covered by 24 CFR Part 245, Subpart B.
1. Projects with an insured mortgage or a HUD-held mortgage under the National Housing Act that have rceived final endorsement and are assisted under:
b) the Section 221(d)(3) BMIR Program; or
c) the Rent Supplement Program: or
d) the Section 8 Load Management Set-aside Program following conversion to such assistance from the Rent Supplement Program
24 CFR part 245, Subpart B does not apply to projects insured and assisted under these programs that are owned by cooperative housing corporations or Associations.
Owners who violate 24 CFR Part 245, Subpart B for this category of projects are subject to civil Money Penalties under 12 USC 1735f-15 and other sanctions available to the
Rights of Tenants to Organize:
Part 245.110 provides tenants of a covered multifamily housing project the right to establish and operate a tenant organization for the purpose of addressing issues related to their living environment as well as activities related to housing and community development.
Legitimate Tenants Organizations:
Part 245.110 defines a legitimate tenant organization as one that has been established for the purposes stated in Part 245.100 and meets regularly, operates democratically, is representative of all residents in the development, and is completely independent of owners, management, and their representatives. The definition covers "organizing committees" newly formed by residents, and does not require specific structures, written by-laws, elections, or resident petitions for a group to be considered legitimate.
Part 245.115 identifies specific activities that owners and agents must allow tenants and tenant organizers to conduct related to establishment or operations of a tenant organizations. These activities include distributing leaflets in lobby and common areas, under tenants doors; initiating contact with tenants; conducting door-to-door surveys and information desimination about the organization; posting information on bulletin boards; and convening tenant organization meetings on-site in a manner that is fully independent of management representatives. Tenants also the right to formulate responses to owners' requests for rent increases, conversion from project paid utilities to tenant-paid utilities; converting units to non-residential use or condominiums; capital additions; and loan pre-payment. In order to preserve the independence of tenant organization, the regulations specify that management representatives may not attend tenant meetings unless specifically invited by the tenant organization. Owneres and agents are prohibited from requiring tenants or tenant organizers from obtaining prior permission before engaging in activities protected under Part 245.115.
Part 245.120 requires owners and agents of covered projects to reasonably make available the use of any community room or other available space appropriate for meetings when requested by tenants or the tenant organization for activities related to the operation or establishment of the tenant organization or to collectively address issues related to their living environment. These meeting must be accessible to persons with disabilities, unless this is impractical for reasons beyond the organizations control. An owner may charge a reasonable fee, approved by HUD, as may normally be imposed for use of such facilities in accordance with procedures prescribed by HUD. An owner may waive this fee.
Part 245.125 defines a "tenant organizer" as a tenant or non-tenant who assists tenants in establishing and operating a tenant organization, and who is not an employee or representative of current or prospective owners, managers or their agents. Owners and agents must allow tenant organziers to assist tenants in establishing and operating tenant organizations.
A non-tenant, tenant organizer bust be accompanied by a tenant while on the property of the multifamily housing project only in cases where the project has a consistently enforced, written policy against canvassing (unless the organizer represents a nonprofit organization directly funded by HUD to provide eligible education and outreach assistance to tenants, in which case tis requirement does not apply). Where there is such a non-canvassing policy, non-tenant organizers must be afforded the same rights and privileges as other uninvited outside parties; where there is no such policy against canvassing, the project shall be treated as if it has a policy favoring convassing.
Impediments to Residents or Resident Associations attempting to Exercise Their Rights:
Chapter 4 of Handbook 4381 (Rev.2) identifies specific actions by owners/and agents that constitute impediments to residents or resident associations attempt to exercise their rights. These include:
Unreasonably denying accessible meeting space to residents; repeatedly sending management representatives to resident meetings which residents have requested management not to attend; evicting, threatening to evict, withholding entitlements, or otherwise penalizing residents for organizing or asserting their rights; attempting to adversely influence resident leaders by offering individual inducements such as employment, preferential transfers, rent abatement, favored repairs or other benefits not available to all residents in the development; attempting to form a competing resident organization under the control of management company or the owner; sexually harassing residents.