HUD Handbook 4350.3 § 3-16

A.          Periodically, family composition changes after initial occupancy. If the qualifying
                      person leaves the unit, a determination must be made as to whether the
                      remaining member of the household will be eligible to receive assistance.
                      Eligibility depends upon the type of project occupied and other issues.

          B.          The following basic requirements for eligibility must be met for a person to qualify
                      as a remaining member of a household:

                      1.     The individual must be a party to the lease when the family member
                             leaves the unit.

                      2.     The individual must be of legal contract age under state law.

                      3.     The remaining family member is defined in Section 202 and Section 811
                             regulations as the surviving member or members of an elderly family or

family with disabilities that was a party to the lease and living in the
                           assisted unit with the now deceased member of the family at the time of
                           his or her death.

                           a.      The remaining family member, based on the death of the family
                                   member, is eligible to remain in the unit but must pay rent based
                                   on income. In this case, eligibility of the remaining family member,
                                   as defined by the death of the family member, is not reviewed.

                           b.      If the individual who establishes eligibility for the project leaves the
                                   unit for any reason other than death in a Section 202/8, Section
                                   202 PAC, Section 202 PRAC or Section 811 PRAC project, the
                                   owner must determine if the individual(s) still residing in the unit
                                   meet the eligibility requirements for the project, income and age or
                                   disability. If the individual is not eligible for the project, he/she
                                   may not receive rental assistance and depending upon the type of
                                   project, he or she may or may not be allowed to remain in the unit.
                                   In a 202/8 or a Section 202 PAC project, the individual may
                                   remain in the unit but must pay contract rent. In a Section 202
                                   PRAC or 811 PRAC project, the individual may not remain in the
                                   unit.

                      4.   See Figures 3-5 and 3-6 for definitions used in determining project
                           eligibility.