24 C.F.R. § 891.315
§ 891.315 Prohibited facilities. (24 CFR Part 891)
Operative Text
This section shall apply to capital advances under the Section 811 Program, as well as loans financed under subpart E of this part. Project facilities may not include infirmaries, nursing stations, spaces dedicated to the delivery of medical treatment or physical therapy, padded rooms, or space for respite care or sheltered workshops, even if paid for from sources other than the HUD capital advance or loan. Except for office space used by the Owner (or Borrower, if applicable) exclusively for the administration of the project, project facilities may not include office space.
Under 24 CFR Part 891 § 891.315, housing projects funded through the Section 811 Program — or through loans under subpart E — are prohibited from including certain facility types regardless of how those facilities are paid for. Specifically, the rule bars infirmaries, nursing stations, medical treatment or physical therapy spaces, padded rooms, respite care areas, and sheltered workshops from being part of the project. Office space is also generally excluded, with a narrow exception for space used solely by the owner or borrower to administer the project itself.
Plain English — not legal advice.
Operators of Section 811 or subpart E projects should be aware that § 891.315 restricts the types of spaces that may exist within a project, even when alternative funding sources are used to pay for those spaces. Compliant operators generally ensure that no portion of the property is configured or used as a medical, therapeutic, or workshop facility, and that any on-site office space is limited strictly to project administration functions. Reviewing floor plans, lease arrangements, and any proposed facility changes against this provision's prohibited-use list is a practice commonly associated with maintaining compliance.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under § 891.315, tenants living in Section 811 or subpart E housing have an interest in knowing that their building is not supposed to contain medical treatment facilities, nursing stations, padded rooms, sheltered workshops, or similar spaces — regardless of how such spaces might be funded. If a tenant believes a project includes prohibited facilities, general enforcement paths include raising the concern with the local HUD field office or a tenant-rights organization familiar with federally assisted housing. Tenants may also explore whether the presence of prohibited facilities relates to broader compliance issues that a housing counselor or legal aid organization could help evaluate.
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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