On September 14, 2014, HUD issued Notice H 2014-12 (Implementation of Tenant Participation Requirements in Accordance with 24 CFR Part 245). This Notice outlines available sanctions and monetary penalties as enforcement mechanisms when owners and managers violate HUD requirements relative to Tenant Organizations.
Tenants Right to Organize
Tenants at HUD properties have the right to establish and operate a tenant organization in order to address issues relating to the project. To be a legitimate tenant organization, the organization must be:
- Established by the tenants;
- Meet regularly;
- Operate democratically;
- Represent all residents; and
- Be independent of owners and management.
There is no requirement for a specific structure, written bylaws, elections or resident petitions.
Activities that owners must allow include:
- Distribution of leaflets in lobbies, common areas, and under tenant doors;
- Posting of information on bulletin boards;
- Initiation of contact with tenants;
- Conducting door-to-door surveys to determine interest in establishing a tenant organization and to offer information about the organization;
- Offering assistance for tenants to participate in tenant organization activities; and
- Convene tenant organization meetings on site without attendance by management representatives.
Enforcement Process
HUD enforcement activity will be undertaken when a tenant or tenant organization files a written complaint with HUD alleging a consistent pattern of violations of HUD requirements or one violation that caused serious harm to tenants or the public. Evidence supporting the complaint is required and may be:
- Signed statements from tenants who have observed violations of HUD regulations relating to tenant participation or other program obligations;
- Documents from owners expressing opposition to tenant organizing activities;
- Documents denying the use of facilities for purposes of organizing or holding meetings; or
- Any other documents that support the complaint.
If the HUB director finds no reasonable cause, the case will be closed. If the case remains open, the parties will be brought together for conciliation. If agreement is reached, a conciliation agreement will be entered into and signed off on by the HUB director – if it serves the public interest.
The choice to participate in conciliation is voluntary by all parties. If an agreement is entered into and breached, the case may be re-opened and enforcement pursued.
If conciliation is unsuccessful, an investigation will be conducted. If there is no reasonable cause, the case will be closed. If it is determined that a violation did occur, written notice of the violations will be sent to the owner. If the owner fails to respond or address the issue in an acceptable way, a referral will be sent to the Enforcement Department and the owner will be flagged in APPS (Active Partners Participation System).
If the Complainant (tenant or tenant organization) disagrees with the ‘no reasonable cause’ finding, they may request reconsideration by sending a letter to the Office of Asset Management. All parties will then be asked to submit additional evidence and the HUB director will make a final decision. If the finding of ‘no reasonable cause’ is affirmed, no further action will be taken. If reasonable cause is found, enforcement action will be pursued.
I make the following recommendations relative to dealing with tenant organizations at HUD-assisted properties:
- Do not discourage the formation of tenant organizations (you are not required to encourage or recommend the creation of such organizations);
- Do nothing to make the formation of such organizations difficult;
- Agree to meet with the organization at reasonable times to discuss community activities;
- Do not deny the use of community facilities to the organization at reasonable times and frequency; and
- Do not discuss the affairs or concerns of individual tenants with the organization.