Example – Delaying an Interim — HUD Handbook 4350.3 REV-1

A tenant, Bob Jenkins, reports to the owner that he was laid off from his job last week. The owner verifies that Bob lost his job and has filed for unemployment benefits. The processing of his application for unemployment benefits has not yet been completed. The owner may wait until the processing of the unemployment claim has been completed.

When owners decide to delay processing, the following apply:
- a. May require the tenant to pay the current amount of rent until the interim recertification is complete.
- b. Must not evict the tenant for nonpayment of rent.
- c. Must not charge the tenant a late fee for paying rent after the 5[th] the month because the owner elected to delay processing, knowing the tenant has experienced a change in income.
Once owners are able to verify the tenant’s new income, they must do as follows:
- a. Recertify the tenant, as described in paragraph 7-12.
- b. Retroactively apply any reduction in rent to the first day of the month after the date of the action that caused the decrease in income.
- c. Notify the tenant in writing of any rent due for the period of delay. If the tenant fails to pay this amount within 30 days of notification, the owner may pursue eviction for nonpayment of rent.

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

6/07

7-25

Section 2: Interim Recertification

4350.3 REV-1

NOTE: Owners must not enforce language, in any existing lease with a tenant, based on any previous version of Section 16(b) of the model lease other than that presently contained in Appendix 4 and designated “revised 3/22/89." In cases where existing leases contain the previous version of Section 16(b), at the next recertification of each tenant, owners are to attach a copy of the revised paragraph to the lease, dated and signed by the owner and initialed by the tenant, and give the tenant a copy. The revised version will therefore supersede the old version. All new leases will use the revised form as contained in Appendix 4 .

G. Owners do not have to perform interim recertifications for individual tenants who are paying market rent.