Use of Marijuana in Multifamily Assisted Properties

As more and more states are permitting the use of marijuana for medicinal purposes under state law, owners of HUD subsidized properties are asking how these changing state regulations affect their property’s rules regarding marijuana.

On December 29, 2014, HUD released a memo to the industry to provide clarification to these owners. In the memo, HUD reiterated that despite any changes to state laws, use of “medical marijuana” is illegal under federal law. Owners are required to deny admission to any household with a member who the owner determines is, at the time of application for admission, illegally
using marijuana. Additionally, Section 577 of the Quality Housing and Work Responsibility Act of 1998 (QHWRA), allows owners to terminate the tenancy or assistance for any in-place household with a member that the owner determines is illegally using a controlled substance such as marijuana.