HUD Handbook 4350.3 § 5-2

Key Terms (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)

HUD guidance — not codified law
In Force
Verified 11/9/2026 · Next check 11/16/2026
effective 9/24/2026FederalSection 8 Project-Based

Operative Text

HUD Handbook 4350.3 § 5-2
A.     There are a number of technical terms used in this chapter that have very
                 specific definitions established by federal statute or regulations, or by HUD.
                 These terms are listed in Figure 5-1 and their definitions can be found in the
                 Glossary to this handbook. It is important to be familiar with these definitions
                 when reading this chapter.

          B.     The terms “disability” and “persons with disabilities” are used in two contexts –
                 for civil rights protections, and for program eligibility purposes. Each use has
                 specific definitions.

                 1.        When used in context of protection from discrimination or improving the
                           accessibility of housing, the civil rights-related definitions apply.

                 2.        When used in the context of eligibility under multifamily subsidized
                           housing programs, the program eligibility definitions apply.

                 NOTE: See the Glossary for specific definitions and paragraph 2-23 for an
                 explanation of this difference.

                                         Figure 5-1: Key Terms

          Adjusted income                               Live-in aide
          Annual income                                 Low-income family
          Assets                                        Market rent
          Assistance payment                            Minimum rent
          Assisted rent                                 Operating rent
          Assisted tenant                               Project Assistance Contract (PAC)
          Basic rent                                    PRAC Operating Rent
          Co-head of household                          Project Rental Assistance Contract (PRAC)
          Contract rent                                 Project assistance payment
          Dependent                                     Project rental assistance payment
          *Enterprise Income Verification (EIV)*        Tenant rent
          Extremely low-income family                   Total tenant payment
          Foster adult                                  Unearned income
          Foster children                               Utility allowance
          Full-time student                             Utility reimbursement
          Gross rent                                    Very low-income family
          Hardship exemption                            Welfare assistance
          Head of household                             Welfare rent
          Housing assistance payment (HAP)
          Income limit
Source: Legislative text reproduced verbatim
Plain English

Section 5-2 of HUD Handbook 4350.3 REV-1 CHG-4 establishes a foundational glossary framework for the chapter, identifying specific technical terms—such as 'adjusted income,' 'annual income,' 'assets,' and 'total tenant payment'—that carry precise meanings defined by federal statute, regulation, or HUD policy. Notably, the terms 'disability' and 'persons with disabilities' carry distinct definitions depending on whether they appear in a civil rights context (addressing discrimination and accessibility) or a program eligibility context (determining qualification for multifamily subsidized housing). Readers are directed to the Handbook's Glossary and paragraph 2-23 for the authoritative definitions of all listed terms.

Written by anthropic/claude-sonnet-4.6 · Reviewed on September 25, 2026

Plain English — not legal advice.

For Property Managers

Operators of HUD-assisted multifamily properties should treat the key terms listed in § 5-2 of HUD Handbook 4350.3 REV-1 CHG-4 as terms of art rather than everyday language, since each carries a federally defined meaning that governs how income, rent, and eligibility calculations are performed. Compliant operators typically consult the Handbook Glossary and paragraph 2-23 before applying any of the listed terms—particularly 'disability'—to ensure they are using the correct definition for the correct context, whether civil rights compliance or program eligibility. Misapplying these definitions in tenant files, rent calculations, or accessibility determinations can create compliance gaps under HUD program requirements.

General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.

For Tenants

Under § 5-2 of HUD Handbook 4350.3 REV-1 CHG-4, tenants in HUD-assisted multifamily housing benefit from a structured set of defined terms that govern how their income, rent, and eligibility are calculated and how their rights are protected. The dual definition of 'disability'—one for civil rights protections like accessibility and nondiscrimination, another for program eligibility—means that a person may qualify for protections under one definition while being assessed differently under the other. Tenants who believe a term has been misapplied to their situation may find it useful to review the Handbook Glossary, consult a tenant-rights organization, or file a concern with the U.S. Department of Housing and Urban Development.

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 25, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.

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Related Rules

§ 888.111
§ 888.111 Fair market rents for existing housing: Applicability.
§ 888.201
§ 888.201 Purpose.
§ 888.202
§ 888.202 Manner of publication.

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