The US Department of Housing and Urban Development has published an interim rule implementing certain sections of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 ("IIRAIRA"). The new rule does not incorporate changes mandated by the recently passed Welfare Reform Act which also contains sections affecting housing rights for legal and illegal immigrants.

The new regulation mandates that the entities administering HUD programs may not make assistance available to families until at least one family member can prove eligibility based on citizenship status. All applicants for housing assistance are required to demonstrate through documentation their citizenship status. To the extent some members of the family are not citizens, the amount of housing assistance will be prorated downward. However, HUD may not delay, curtail or end eligibility for receiving assistance while the determination of eligibility is pending.

Families that knowingly allow an ineligible person to reside in their home on a permanent basis (without reporting the change to HUD) will have their financial assistance suspended if HUD learns of the violation. The suspension can last up to two years.

Applicants denied assistance do have the right to seek a fair hearing. The request for a hearing must be made within 30 days of the applicant receiving a notice of denial or from the date the assistance is cut off. Assistance to applicants requesting a hearing will not be cut off until the hearing has happened and the applicant has lost.