The HUD Handbook requires owners to "develop and follow occupancy standards that take
into account the size and number of bedrooms needed based on the number of people in the
family." HUD Handbook, Ch. 3, § 3-23(A)(1). Generally, a two-persons-per-bedroom
standard is acceptable, Ch. 3, § 3-23(E)(2), taking into consideration the age, sex and
relationship of family members, Ch. 3, § 3-23(E)(4)(b). Where the family size changes after
initial occupancy "the owner may require the family to move to an available unit of appropriate
size." Ch. 3, § 3-23(H)(1)(a)(1). Owners must describe their unit transfer policies, including
"acceptable reasons for transfers", in a written "Tenant Selection Plan". Ch. 7, §
7-16(C).
Here, it is undisputed that:
• Petitioner's Tenant Selection Plan contains occupancy standards setting a
minimum of three and maximum of six occupants for a 3-bedroom apartment and a minimum of
two and maximum of four occupants for a 2-bedroom apartment.
• Respondent's lease includes an agreement that she would
move if she became "eligible for a different size unit", after receiving a 30-day notice, with the
option to remain in her apartment and pay the HUD-approved market rent.
• Since 2009 Respondent has been residing solely with her
now almost 14-year-old grandson [FN8]in a 3-bedroom apartment.[FN9]
The HUD Handbook provides that when an owner determines a tenant is required to transfer
to a smaller apartment to comply with occupancy standards it must not terminate assistance "until
the family has been offered a transfer to a unit of appropriate size and has been given sufficient
time (no less than 30 days) to move to the new unit." Ch. 7, § 7-15(B); Ch. 7, §
7-16(B)(1). When a tenant's assistance is terminated, "the owner increases the tenant's rent to