Marijuana in Federally Assisted Projects - Dec 29 HUD Memo
Marijuana in Federally Assisted Projects - December 29, 2014 HUD Memo
On December 29, 2014, HUD sent a memorandum to all HUD offices regarding the use of marijuana in multifamily assisted properties.
The purpose of the memo was to clarify HUD's position regarding renting to applicants who use marijuana and the treatment of current residents who use marijuana.
Under Federal law, marijuana is considered a Schedule 1 substance and for this reason, the manufacture, distribution, or possession of marijuana is a federal criminal offense. The use of "medical marijuana" is illegal under federal law even if it is permitted under state law.
The memo makes it clear that owners of federally assisted housing are required by the Quality Housing & Work Responsibility Act of 1998 (QHWRA) to deny admission to any household with a member who is determined to be, at the time of application, illegally using a controlled substance as that term is defined by the Controlled Substances Act.
In addition, QHWRA also states in part "Notwithstanding any other provision of law, a public housing agency or owner of federally assisted housing (as applicable) shall establish standards or lease provisions for continued assistance or occupancy in federally assisted housing that allow (emphasis added) the agency or owner (as applicable) to terminate the tenancy or assistance for any household with a member (1) who the public housing agency or owner determines is illegally using a controlled substance; or (2) whose illegal use (or pattern of illegal use) of a controlled substance...is determined by the public housing agency or owner to interfere with the health, safety, or right to peaceful enjoyment of the premises by other residents."
The memo makes it clear that current users of marijuana - even if medically prescribed - are not eligible for admission to federally assisted housing. However, the law "allows" the owner to terminate occupancy, but it is not a requirement. The determination of when to terminate occupancy based on the use of marijuana may be made on a case-by-case basis. Owners should be aware that there may be no lease provision for a HUD assisted property that specifically permits the use of marijuana, including medically prescribed marijuana.
This memo applies only to federally assisted housing (e.g., project-based Section 8, public housing, Rural Development Section 515, etc.); it does not apply to the Low-Income Housing Tax Credit Program.