Introduction
Section 504 of the Rehabilitation Act of 1973 is a foundational federal civil rights law that prohibits discrimination based on disability in programs and activities that receive federal financial assistance (FFA). In the context of multifamily housing, Section 504 imposes critical accessibility and nondiscrimination requirements on housing providers whose properties are developed, operated, or otherwise supported through federal funds. Understanding which multifamily housing projects are subject to Section 504 is essential for ensuring compliance and upholding the rights of individuals with disabilities.
Owners and managers often are unsure whether their property falls under Section 504. This article offers a comprehensive list of properties that must comply with the requirements of the Section 504 statute.
Applicability of Section 504 in Multifamily Housing
Not all multifamily housing developments fall under the purview of Section 504. Only those properties that receive federal financial assistance—whether directly from a federal agency or indirectly through a state or local government—are subject to its requirements.
The following types of multifamily housing projects are covered:
1. HUD-Assisted Multifamily Housing
Multifamily projects that receive funding through programs administered by the U.S. Department of Housing and Urban Development (HUD) are unequivocally subject to Section 504. This includes:
- Project-Based Section 8 Housing Assistance Payments
- Section 202 Supportive Housing for the Elderly
- Section 811 Supportive Housing for Persons with Disabilities
- HOME Investment Partnerships Program (HOME)
- Community Development Block Grant Program (CDBG)
- Housing Opportunities for Persons With AIDS (HOPWA)
Projects under these programs must comply with both physical accessibility standards and operational nondiscrimination requirements.
2. Mortgage Insurance Programs
Section 504 applies to programs and activities that receive federal financial assistance, including housing programs administered by the Department of Housing and Urban Development (HUD). FHA-insured multifamily properties fall under this category because the Federal Housing Administration provides federal financial assistance through mortgage insurance. FHA insured programs subject to Section 504 include:
· Section 207 Rental Housing Insurance
· Section 213 Cooperative Housing Insurance
· Section 220 Rehabilitation and Neighborhood Conservation Housing
· Section 221(d)(3) and (d)(4) Mortgage Insurance for Rental and Cooperative Housing
· Section 231 Housing for Elderly Persons
· Section 232 Mortgage Insurance for Nursing Homes, Intermediate Care Facilities, and Board and Care Homes
· Section 234 Mortgage Insurance for Condominiums
· Section 236 Rental Housing
3. USDA Rural Development (RD) Properties
Multifamily properties financed through the U.S. Department of Agriculture’s Rural Development programs—such as the Section 515 Rural Rental Housing Program—also fall within the scope of Section 504. These properties must meet physical accessibility standards, ensure non-discriminatory policies and practices, and provide reasonable accommodations to applicants and residents with disabilities.
4. Low-Income Housing Tax Credit (LIHTC) Projects (Under Specific Conditions)
The LIHTC program itself does not constitute federal financial assistance under Section 504. However, when LIHTC developments are combined with other sources of federal funding (such as HOME or CDBG), the portion of the property funded with such assistance—or potentially the entire development—becomes subject to Section 504 requirements.
5. Public Housing Agencies (PHAs)
Section 504 covers public housing developments and programs administered by PHAs, including the Housing Choice Voucher (HCV) program. PHAs are responsible for ensuring that sufficient accessible units are available and that reasonable accommodations are provided to individuals with disabilities.
Under the Housing Choice Voucher (HCV) program, when a tenant with a disability requires a modification to a unit to make it accessible, the responsibility for the cost depends on several factors:
- If the landlord is not receiving federal financial assistance directly (which is typical under the HCV program), they are not subject to Section 504 of the Rehabilitation Act. In this case:
- The landlord is not required to pay for modifications, but must allow reasonable modifications at the tenant’s expense under the Fair Housing Act, unless doing so would pose an undue administrative or financial burden.
- The PHA may use funds (if available and if policy allows) to pay for modifications as a reasonable accommodation.
- Other sources, such as state or local programs, nonprofits, or disability advocacy organizations, may also assist with funding.
So, unless the PHA steps in or there’s an alternative funding source, the cost of a reasonable modification typically falls on the tenant—but the landlord cannot legally prohibit the modification if it is reasonable and necessary for the tenant’s disability.
6. State and Local Government-Funded Projects Using Federal Pass-Through Funds
Any multifamily housing project funded through state or local entities utilizing federal grant programs must comply with Section 504. This includes housing initiatives financed through state housing finance agencies or municipal governments administering federal housing resources.
Core Requirements of Section 504 Compliance
Multifamily housing projects covered under Section 504 must adhere to various physical, operational, and programmatic accessibility requirements. These include:
Accessible Units
- A minimum of 5% of total units must be fully accessible to individuals with mobility impairments.
- A minimum of 2% must be accessible to individuals with hearing or visual impairments.
Design and Construction Standards
- New construction and substantial rehabilitation must comply with the Uniform Federal Accessibility Standards (UFAS) or other approved standards.
Reasonable Accommodations
- Housing providers must make reasonable policy and procedural modifications to allow individuals with disabilities equal access to housing and services.
Effective Communication
- Providers must take steps to ensure effective communication with applicants and residents with disabilities, including the provision of auxiliary aids and services when necessary.
Conclusion
Compliance with Section 504 of the Rehabilitation Act is not optional for multifamily housing providers receiving federal financial assistance. It is a legal obligation and a moral imperative that helps ensure equal access to housing opportunities for individuals with disabilities. Owners, developers, and managers of covered properties must proactively meet physical and programmatic requirements.