6-1 Introduction

• A. The previous chapters provided guidance on determining eligibility, organizing and managing waiting lists, determining income, and calculating rents. At this point in the process, residents are ready to sign a lease. A lease is a contract between the owner and tenant that explains the terms for residing in the unit. A lease is a legally binding contract and is enforceable in a court of law. Owners and tenants alike should be familiar with the provisions of the lease (when relevant, the applicable HUD model lease) so they can better understand their responsibilities under the lease.

• B. Chapter 6 contains information on the lease and the activities associated with the leasing process. The information is organized as follows:

  • Section 1: Leases, Lease Addendums, and Lease Attachments describes the lease requirements for the applicable programs described in paragraph 1-3. It also addresses lease addendums and documents that must be attached to the lease, when applicable. The section ends with a discussion on amending and modifying a lease.

  • Section 2: Security Deposits discusses the requirements and procedures regarding security deposits.

  • Section 3: Charges in Addition to Rent discusses the allowable and prohibited charges that owners may levy. These charges are those other than rent, which is addressed in Chapter 5, Section 4 about calculating tenant rent, and other than security deposits, which are discussed in Section 2 of this chapter.

  • Section 4: The Leasing Process discusses the requirements and procedures for two activities associated with the leasing process: briefing new residents and inspecting units. It also addresses the handouts that owners must provide tenants, such as the lease, the Residents Rights and Responsibilities brochure, the EIV & You brochure, and the leadbased paint disclosure form.

HUD Occupancy Handbook Chapter 6: Lease Requirements and Leasing Activities

8/13

6-1

4350.3 REV-1