7-16 Unit Transfers Due — HUD Handbook 4350.3 REV-1

A. Determining Whether a Unit Transfer Should Occur

If a tenant reports a change (or the owner becomes aware of a change) in family composition, the owner must do the following:

Determine appropriate unit size. Owners should use the occupancy standards established for the property to determine whether the unit is still the appropriate size for the tenant. The property’s occupancy standards must be consistent with the requirements discussed in paragraph 3-23.
Determine whether a transfer is required. The following considerations determine whether the tenant is required to move:
- a. Is there a unit of appropriate size in the property? If there are appropriately sized units available, then a transfer to an appropriately sized unit is required. If a unit of appropriate size is not available, then the tenant should be moved to the most appropriately sized unit.
- b. Is there a market for the size of unit the tenant would be vacating? If the tenant is occupying a unit that is larger than needed and there is no demand for that larger unit, the owner does not have to require the tenant to move from the larger unit until there is a demand for that size of unit.
- c. How long will the tenant remain in the property? If the tenant has given a written notice to vacate, the owner need not require the tenant to transfer.

NOTE: In Section 236 and Section 221(d)(3) BMIR cooperatives in which the member is receiving no other assistance, the cooperative may establish its own policy on whether the cooperative should offer overhoused members smaller units and require members who refuse such offers to pay the market-rate carrying charge as described in paragraph 3-23 H.1.

B. Transfer Requirements
1. When an owner determines that a transfer is required, the Model Lease for Subsidized Programs states that the tenant:
  - a. May remain in the unit and pay the HUD-approved market rent; or
  - b. Must move within 30 days after the owner notifies the family that a unit of the required size is available within the property.

HUD Multifamily Occupancy Handbook Chapter 7: Recertification, Unit Transfers, and Gross Rent Changes

6/07

7-29

Section 4: Gross Rent Changes

4350.3 REV-1

Depending upon the circumstances of the transfer, a tenant may be obligated to pay all costs associated with the move. However, if a tenant is transferred as a reasonable accommodation to a household member’s disability, then the owner must pay the costs associated with the transfer, unless doing so would be an undue financial and administrative burden. See Chapter 2 for a thorough discussion of the requirements of Section 504 of the Rehabilitation Act of 1973 and Chapter 2, Subsection 4 for information and guidance on Reasonable Accommodation.