24 C.F.R. § 882.401
§ 882.401 Eligible properties. (24 CFR Part 882)
Operative Text
(a) Eligible properties. Except as provided in paragraph (b) of this section, housing suitable for moderate rehabilitation as defined in § 882.102 is eligible for inclusion under the Moderate Rehabilitation Program. Existing structures of various types may be appropriate for this program, including single-family houses, multi-family structures and group homes. (b) Ineligible properties. (1) Nursing homes, units within the grounds of penal, reformatory, medical, mental and similar public or private institutions, and facilities providing continual psychiatric, medical or nursing services are not eligible for assistance under the Moderate Rehabilitation Program. (2) Housing owned by a State or unit of general local government is not eligible for assistance under this program. (3) High rise elevator projects for families with children may not be utilized unless HUD determines there is no practical alternative. (HUD may make this determination for a locality's Moderate Rehabilitation Program in whole or in part and need not review each building on a case-by-case basis.) (4) Single room occupancy (SRO) housing may not be utilized unless: (i) The property is located in an area in which there is a significant demand for such units as determined by the HUD Field Office; and (ii) The PHA and the unit of general local government in which the property is located approve of such units being utilized for such purpose. (5) No Section 8 assistance may be provided with respect to any unit occupied by an Owner; however, cooperatives will be considered as rental housing for purposes of the Moderate Rehabilitation Program.
Under 24 CFR Part 882 § 882.401, the Moderate Rehabilitation Program is open to a range of existing housing types—such as single-family homes, multi-family buildings, and group homes—that meet the program's definition of moderate rehabilitation. However, certain properties are categorically excluded, including nursing homes, institutional facilities, and housing owned by state or local governments. High-rise elevator buildings serving families with children and single room occupancy (SRO) housing face additional restrictions and may only participate under specific conditions. Units occupied by an owner are also ineligible for Section 8 assistance under this program, though cooperatives are treated as rental housing.
Plain English — not legal advice.
Property owners and managers considering participation in the Moderate Rehabilitation Program under 24 CFR Part 882 § 882.401 generally confirm at the outset that their property type is among those eligible—such as single-family, multi-family, or group home structures—and that it is not government-owned or used for institutional care. Operators of high-rise elevator buildings with family tenants typically verify whether HUD has made a determination that no practical alternative exists before proceeding. Those with SRO properties ordinarily confirm that the local HUD Field Office has identified sufficient demand and that both the public housing authority and the relevant unit of local government have approved the intended use.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants and prospective tenants can look to 24 CFR Part 882 § 882.401 to understand which housing types are permitted to receive Moderate Rehabilitation Program assistance, which may affect the availability and legitimacy of Section 8 support in their building. If a tenant believes their unit is in a property type that is ineligible—such as an institutional facility or a government-owned building—they may have grounds to raise that concern with their local public housing authority or HUD Field Office. Tenant-rights organizations can help individuals understand how eligibility determinations under § 882.401 may relate to their housing situation.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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