6-24 Pet Deposits — HUD Handbook 4350.3 REV-1

A. The pet rules may require tenants to pay a refundable pet deposit, but apply only to those tenants who own or keep cats or dogs in their units. This deposit is in addition to any additional financial obligation generally imposed on tenants of the property.
B. The maximum amount of the pet deposit that may be charged by an owner on a per-unit basis is determined as outlined in Figure 6-8. The amount of the deposit was set by publication of a notice in the Federal Register by HUD and may change periodically with future publications.
C. Pet deposits only apply to properties established for the elderly and persons with disabilities. Assistance animals are animals that provide disability-related assistance, support, or provide service to persons with disabilities and are exempt from the pet policy and from the refundable pet deposit. See Chapter 2- 44 Assistance Animals as a Reasonable Accommodation for more information.
D. An owner may use the pet deposit only to pay reasonable expenses directly attributable to the presence of the pet on the property. Such expenses would include, but not be limited to, the cost of repairs and replacement to the unit, fumigation of the unit, and the cost of animal care facilities.

HUD Occupancy Handbook Chapter 6: Lease Requirements and Leasing Activities

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Section 3: Charges in Addition to Rent

4350.3 REV-1

E. Owners must return the unused portion of a pet deposit to the tenant within a reasonable time after the tenant moves from the property or no longer owns or keeps a household pet in the unit.
F. In addition to the information presented here, an owner should consult HUD Handbook 4350.1, Multifamily Asset Management and Project Servicing, for further information and details relating to pet rules and regulations.