Document Package for Applicant's/Tenant's Consent to the Release Of Information
6-23 Charges for Late Payment of Rent
HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs · 2026 edition · updated 2026-10-05 · United States
- A. Paragraph 6-23 does not apply to cooperatives. Cooperatives may collect any late charges that are approved by the Board and that are consistent with the cooperative’s organizational documents and state and local laws.
HUD Occupancy Handbook Chapter 6: Lease Requirements and Leasing Activities
6/07
6-38
Section 3: Charges in Addition to Rent
4350.3 REV-1
B. Paragraph 6-23 does not apply to Section 202/8, Section 202 PAC, Section 202 PRAC and Section 811 PRAC projects. Owners of Section 202/8, Section 202 PAC, Section 202 PRAC and Section 811 PRAC projects cannot charge fees for late payment of rent.
C. Owners may assess a charge if the tenant has been given at least 5 calendar days as a grace period to pay the rent. The rent must be received by the fifth day, not postmarked by then.
On the sixth day, the owner may charge a fee, not to exceed $5 for the period of the first through fifth day that the rent is not paid. Additionally, the owner may charge a fee of $1 per day for each additional day the rent remains unpaid for the month.
D. Field Offices or Contract Administrators may approve a higher initial late fee if:
It is permitted under state and local laws;
It is consistent with local management practices; and
The total late charge assessed for the month does not exceed $30.
E. An owner may deduct accrued, unpaid late charges from the tenant’s security deposit at the time of move-out, if such a deduction is permitted under state and local laws.
F. An owner must not evict a tenant for failure to pay late charges.
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