6-4 Leases, Lease Amendments — HUD Handbook 4350.3 REV-1

A. This section identifies the regulatory requirements regarding an owner’s lease, lease addendums and lease attachments, including the lead-based paint disclosure form, house rules, and pet regulations. It also describes procedures for meeting these requirements, identifying which procedures are required and which are optional. Throughout this section, the differences in policies and procedural requirements across the four model leases are identified.

NOTE : The leases may also need to be provided in languages other than English for LEP persons, when applicable, in accordance with HUD guidance, Final Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition Against National Origin Discrimination Affecting Limited English Proficient Persons , published in the Federal Register on January 22, 2007. The HUD model leases are available in English as well as several other languages and are posted on HUDCLIPS at = http://portal.hud.gov/hudportal/HUD?src /program_offices/administration/hudclip s and at HUD’s LEP website at http://www.hud.gov/offices/fheo/lep.xml.

The lease is a legally binding contract between the owner and the tenant. The regulations governing HUD’s various multifamily housing programs state that owners must use leases that are in an acceptable form to HUD. In practice, owners must use one of the four model leases prescribed by HUD (see Figure 6- 2). The lease an owner uses depends on the program being administered.

Owners may, but are not required to, use the HUD model leases for units where the tenant pays market rent, full contract rent, or 110% of the BMIR rent in the case of Section 221(d)(3) BMIR properties.
The HUD model leases do not apply to cooperatives. Cooperative members should use occupancy agreements. All occupancy agreements executed after February 15, 1984 must include the cooperative’s policy on unit transfers and paragraphs 15, 16, 17, 23 and 25 of the Model Lease for Subsidized Programs covering recertification, termination of assistance, and fraud penalties. (See paragraph 6-5 A for more information.)

B. The HUD model leases identify the program requirements that owners and tenants must adhere to while participating in the programs. Although many of these requirements are the same in each of the four leases, several of the lease provisions vary from lease to lease. For example, changes in the tenant rent are listed in all four model leases; however, the specific requirements and language are different among the four leases.

HUD Occupancy Handbook Chapter 6: Lease Requirements and Leasing Activities

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6-4

Section 1: Leases and Lease Attachments

4350.3 REV-1

C. The Violence Against Women and Justice Department Reauthorization Act of 2005 Lease Addendum (VAWA), form HUD-91067, must be attached to the applicable model lease for all tenants receiving Section 8 assistance. (see Paragraph 6-5.B.2 for signature requirements).
D. Changes to the Model Lease for Subsidized Programs by owners may only be for documented state or local laws, or a management practice generally used by management entities of assisted projects. Lease modifications by owners are made using a lease addendum. Before implementing the changes, the owner must obtain written approval from HUD or the Contract Administrator. The Model Lease for Section 202/8 or Section 202 PACs may only be modified for documented state or local laws or as specifically noted in paragraph 6-5 D. The Model Leases for Section 202 PRACs and Section 811 PRACs may only be modified for documented state or local laws or as specifically noted in paragraph

NOTE: Owner modifications to the HUD model leases through revisions to the leases themselves or through lease addendums that were approved prior to the effective date of Change 4 to this Handbook remain in effect until such time as HUD re-issues the model leases with modifications to the language in the leases or the lease addendum modifications are no longer applicable.

E. If any provision of a model lease conflicts with state or local law, the owner must follow the rule that is of most benefit to the tenant.