HUD Handbook 7465.1 § 3-2
INCOME LIMIT RESTRICTIONS (HUD Public Housing Occupancy Handbook 7465.1)
Operative Text
a. POLICY
(1) PHAs must only admit applicants which have income
at or below the lower income limits. (There is a
diagram in Appendix 1.)
(2) PHAs must use the lower income limits in admitting
applicants to projects that reached DOFA (Date of
Full Availability) before October 1, 1981 ("old
projects").
(3) PHAs must use the very low income limits in
admitting applicants to projects that reached DOFA
on or after October 1, 1981 ("new projects")
unless HUD has approved an exception.
(4) There is no restriction on the number of lower
income families which are not very low income that
a PHA can admit to its "old projects".
(5) The income limit restrictions apply only at
admission. Federal law does not require income
limits for continued occupancy.
(6) A family may not be admitted to a public housing
program from another assisted housing program
(e.g., Section 8 Existing) or from a public housing
program operated by another PHA without meeting the
income limit restrictions applicable to the PHA.
(7) If a project is acquired for public housing
through acquisition, tenants already living there
must meet the income limit requirements.
(8) The income limit restrictions do not apply to a
family which needs or wants to transfer to another
dwelling unit within the public housing program at
a particular PHA.
(9) The income limit restrictions do not apply to
someone already in the program who has to enter
into a new lease.
b. DISCUSSION
(1) An applicant must have income at or below the
lower income limits in order to be put on the
waiting list and in order to be admitted to public
housing. If the PHA has only "new projects," an
applicant must have income at or below the very
low-income limits in order to be put on the
waiting list and in order to be admitted to public
housing unless HUD has approved an exception.
(a) A family may not be put on the waiting list
with income above the applicable income limit
with the expectation that the applicant's
income would be below the applicable income
limit by the time of admission.
(b) If a family's income is at or below the
income limit the applicant is put on the
waiting list but goes above the income limit
before admission, the family may not be
admitted.
(2) While there is a maximum amount of income an
applicant may be eligible, there is no minimum
amount.
(3) A lower income family which is not very low income
may qualify of the PHA's projects (an "old
project") but not for (a "new project"). The
family may be put on the list and may remain on
the waiting list as long as the any project for
which the family would qualify.
(4) For projects which have reached DOFA in stages,
and therefore have more than one DOFA, the
earliest DOFA is used for determining whether the
entire project is an "old project" or a "new
project".
(5) A project that reached DOFA before October 1, 1981
which is put under a new ACC on or after October
1, 1981 because it is undergoing extensive
modernization is still considered an "old
project."
(6) HUD regulations provide that not more than 25% of
the dwelling units that become available in "old
projects" may be leased to lower income families
which are not very low-income families. The 25%
applies nationwide, not to a particular PHA or
project. Since it is highly unlikely that the 25%
figure will be reached nationwide, HUD has
implemented these provisions for all "old
projects" by placing no restrictions on the number
of lower income families which are not very low
income.
(7) HUD regulations provide that not more than 5% of
the dwelling units that become available in "new
projects" may be leased to lower income families
which are not very low income families. The 5%
applies nationwide, not to a particular PHA or
project. HUD has implemented these provisions for
all "new projects" by not permitting the admission
of any lower income families to "new projects"
unless HUD has approved an exception. The 5%
authority is used for approving the exceptions.
(8) An exception is needed in order for a PHA to admit
any lower income family which is not very low
income to a "new project". Some reasons for
getting an exception include, but are not limited
to:
(a) Need for more applicants to deal with vacancy
problems;
(b) Local commitment to attaining occupancy by
families with a broad range of incomes;
(c) Need for higher income families for a
homeownership project; and
(d) Need to avoid displacing lower income
families from a project acquired by the PHA.
c. PHA PROCEDURES - Exceptions
PHAs must send a request for an exception to the local
HUD office. The PHA must indicate the reason for the
request (e.g., to deal with a vacancy problem), the
project involved, and the number of admissions sought
under the exception. The PHA should also provide any
other information which will help HUD in evaluating the
situation.
d. HUD RESPONSIBILITIES - Exceptions
The local HUD office will review the exception request
and forward it, along with its recommendation, through
the HUD Regional Office to Headquarters.
The local HUD office will advise the PHA whether
Headquarters approves or turns down the request. If it
has been approved, the local HUD office will indicate
the project involved, the number of families that can
be admitted under the exception, and any restrictions
that may apply. The local HUD office will also ask the
PHA to keep a record of its use of the exception
authority.
e. REFERENCES
U.S. Housing Act of 1937, Section 16
24 CFR 913.103, 913.104, 913.105HUD Handbook 7465.1 REV-2 CHG-2 § 3-2 establishes income eligibility thresholds that Public Housing Authorities (PHAs) must apply when admitting applicants to public housing. Whether a project reached its Date of Full Availability (DOFA) before or after October 1, 1981 determines whether the applicable ceiling is the "lower income" limit or the stricter "very low income" limit. Importantly, these income restrictions apply only at the point of admission — once a family is housed, federal law does not require ongoing income-limit compliance for continued occupancy, and internal transfers within a PHA's program are also exempt.
Plain English — not legal advice.
PHAs operating under HUD Handbook 7465.1 REV-2 CHG-2 § 3-2 generally maintain separate admission standards depending on whether their properties are classified as "old projects" (DOFA before October 1, 1981) or "new projects" (DOFA on or after that date), applying lower income limits to the former and very low income limits to the latter. Compliant operators verify that an applicant's income remains within the applicable limit not only at the time of waitlist placement but also at the time of actual admission, and they do not carry applicants whose income has risen above the threshold. When a PHA seeks to admit lower-income families who do not meet the very low income threshold to a "new project," it must submit a formal exception request to the local HUD office, specifying the project, the reason, and the number of admissions sought.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under HUD Handbook 7465.1 REV-2 CHG-2 § 3-2, applicants to public housing have a right to be evaluated against the income limit that corresponds to the specific project type — "lower income" for older projects and "very low income" for newer ones — and no minimum income threshold exists, only a maximum. Once housed, residents are not subject to income-limit requirements for continued occupancy, and families who need to transfer within the same PHA's program or sign a new lease are similarly exempt from re-screening under these limits. Applicants who believe a PHA has misapplied the income limit categories or improperly denied placement on a waiting list may consider contacting a local tenant-rights organization, a HUD-approved housing counselor, or the local HUD office for guidance on available remedies.
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 26, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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