Figure 6-3: HUD Issued Lease Addendum

1. For projects financed by a State Agency, owners must use the lease form prescribed by the State Agency or obtain the State Agency’s approval for changes to that lease. (State Agencies must ensure that the lease form is consistent with HUD regulations and the rules in this handbook.)

2. Cooperatives. Although a family receiving Section 8 assistance and residing in a cooperative is subject to the same regulatory tenancy requirements as other Section 8-assisted families, cooperatives use HUD-approved occupancy agreements in lieu of a model lease.

Occupancy agreements for assisted cooperatives must incorporate 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.

3. Required attachments.

The following documents must be attached to the lease:

• a. HUD-50059 signed by the tenant and the owner;

• b. HUD-50059-A signed by the owner and, when applicable, by the tenant.

• c. Move-in inspection report signed by both the owner and tenant;

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• d. House Rules, if such rules have been developed by the owner;

• e. Lead-based paint disclosure form (if applicable);

• f. Pet rules (if applicable);

• g. Owner’s Live-in Aide addendum (if applicable).

NOTE: The live-in aide addendum must establish that a live-in aide is not eligible to remain in the unit once the tenant is no longer living in the unit, regardless of the circumstances for the tenant’s departure. The live-in aide addendum may give the owner the right to evict a live-in aide who violates any of the house rules.

• h. *Owner’s Police or Security Personnel addendum (if applicable);

• i. HUD issued Violence Against Women and Justice Department Reauthorization Act of 2005 (VAWA) Lease Addendum (Section 8 only).*

• B. Key Requirements under HUD’s Model Leases and Lease Addendums

  1. The lease may cover only rental of the unit and provision of services routinely provided at rental properties (e.g., parking).

     • a. Owners and tenants must execute separate agreements for special services (e.g., voluntary meals program or health care services).

     • b. Failure to adhere to these separate agreements is not grounds for termination of tenancy, except that:

Tenant participation in a mandatory meals program is incorporated as a condition of occupancy in rental properties for the elderly or handicapped with HUD-approved mandatory meals programs. Under these conditions, compliance is binding on the tenant as a lease provision.

2. The head of household, spouse, any individual listed as co-head, and all adult members of the household must sign the lease, HUD issued lease addendums and owner’s lease addendums. (See Paragraph 6-4.D Note.)

3. When a tenant transfers to another unit, the owner and all tenants required to sign the lease must sign a lease for the new unit.

4. The lease includes language permitting the owner to terminate the lease for drug-related activity and criminal activity. This is the result of regulations effective June 25, 2001, for Screening and Eviction of Drug

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Abuse and Other Criminal Activity. For more information, refer to the lease and Chapter 8 for information regarding terminations.

• C. Model Lease for Subsidized Programs

  1. Applicability. The following properties use the Model Lease for Subsidized Programs (also known as the family model lease):

     • a. Section 221(d)(3) BMIR;

     • b. Section 236 Interest Reduction;

     • c. Section 8 New Construction;

     • d. Section 8 Substantial Rehabilitation;

     • e. RHS 515 with Section 8 (see Paragraph 6-5 F);

     • f. Section 8 Loan Management Set-Aside (LMSA); and

     • g. Section 8 Property Disposition Set-Aside (PDSA).

     • h. Rental Assistance Payment (RAP)

     • i. Rent Supplement

  2. HUD will permit modifications to the Model Lease for Subsidized Programs, but modifications must be made in the form of a lease addendum and approved by HUD or the Contract Administrator. (See paragraph 6-12 for modification procedures, and paragraphs 6-11 and 6- 12 on amending and modifying leases for more information.)

  3. HUD will not permit modifications to the following nine provisions of the model lease:

     • a. Changes in Tenant Rent;

     • b. Regularly Scheduled Recertifications;

     • c. Reporting Changes between Regularly Scheduled Recertifications;

     • d. Removal of Subsidy;

     • e. Tenant Obligation to Repay;

     • f. Discrimination Prohibited;

     • g. Changes in Rental Agreement;

     • h. Termination of Tenancy; and

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• i. Penalties for Submitting False Information.

4. Additional lease provision for pets in Section 8 projects. Lease provisions for pets are found only in the Model Leases for Section 202/8, Section 202 PACs, Section 202 PRACs, and Section 811 PRACs. However, certain properties (e.g., Section 8 New Construction, Section 8 State Agency) may be available for occupancy only to elderly and/or disabled tenants. As a result, the language addressing pets that is found in the Model Lease for Section 202/8 and Section 202 PACs must be added to the Model Lease for Subsidized Programs for use in these properties. Modifying the Model Lease for Subsidized Programs to include the pet provisions from the Model Lease for Section 202/8 and Section 202 PACs, must be made as a lease addendum approved by HUD or the Contract Administrator.

5. Additional lease provision for authorized police/security personnel. A lease addendum for units occupied by such persons must include a provision that states that the police officer or security personnel’s right of occupancy is dependent on the continuation of the employment that qualified him/her for residency in the property under the plan.

6. Prohibited provisions. The following provisions must not be included in a lease modification.

   • a. Confession of judgment. The prior consent by the tenant to any lawsuit initiated by the owner in connection with the lease and to a judgment in favor of the landlord.

   • b. Distraint for rent or other charges. An agreement by the tenant that the owner is authorized to take property of the tenant and hold it until the tenant performs an obligation the owner has determined the tenant has failed to perform.

   • c. Exculpatory clauses. An agreement by the tenant not to hold the owner or its agents liable for any acts or omissions, intentional or negligent, on the part of the owner or the owner’s authorized representatives or agents.

   • d. Waiver of legal notice by tenant before actions for eviction or money judgment. An agreement by the tenant that the landlord may institute suit without notifying the tenant that the suit has been filed.

   • e. Waiver of legal proceedings. Authorization for the owner to evict the tenant or hold/sell the tenant’s possessions whenever the owner determines a breach or default has occurred, without notice to the tenant or determination by a court of the rights and liabilities of the parties.

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• f. Waiver of jury trial. Authorization for the owner’s attorney to appear in court on behalf of the tenant and waive the right to a jury trial.

• g. Waiver of right to appeal judicial proceeding. Authorization for the owner’s attorney to waive the tenant’s rights to (1) appeal for judicial error in any suit brought against the tenant by the owner or its agent, or (2) file suit to prevent the execution of a judgment.

• h. Tenant chargeable with cost of legal actions regardless of outcome. A provision that the tenant agrees to pay all attorney and other legal costs if the owner brings legal action against the tenant, even if the tenant prevails in the action. Prohibition of this provision does not mean the tenant, as a party to a lawsuit, may not be obligated to pay attorney’s fees or other costs if the tenant loses the suit.

NOTE: In properties restricted to occupancy by the elderly or disabled, the lease must not contain a provision relieving the owner of liability for the wrongful removal of a pet.

• D. Model Lease for Section 202/8 and Section 202 PACs

  1. The Model Lease for Section 202/8 or Section 202 PACs may only be modified for documented state or local laws or as noted in the following paragraph. Modifications to the lease must be in the form of a lease addendum.

  2. The regulations for Section 202 properties state that an owner may include a provision in the lease that permits the owner to enter the leased premises at any time without advance notice to the tenant when there is reasonable cause to believe an emergency exists or that the health or safety of a family member is endangered. (See Paragraph 6-4.D Note.)

• E. Model Lease for Section 202 PRACs and Section 811 PRACs

  1. The Model Lease for the Section 202 PRAC or Section 811 PRAC may only be modified for documented state or local laws or as noted in the following paragraph. Modifications to the lease must be in the form of a lease addendum. (See Paragraph 6-4.D Note.)

  2. The regulations for Section 202 PRAC and Section 811 PRAC properties state that an owner may include a provision in the lease that permits the owner to enter the leased premises at any time without advance notice to the tenant when there is reasonable cause to believe an emergency exists or that the health or safety of a family member is endangered.

• F. Required Lease Provisions for Specific Properties

  1. Required Section 8 State Agency lease provisions. See Exhibit 6-1 at the end of Chapter 6 for a copy of the provision for Section 8 State Agency

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2. Required RHS 515 with Section 8 lease provisions. The HUD model lease in Appendix 4-A must be used at Rural Housing Service’s (RHS) Section 515 projects that have Section 8 assistance. Exhibit 6-2 contains the lease provisions required by RHS. Owners will be responsible for ensuring that any RHS required provisions not already included in the HUD model lease are added to the lease as an addendum. The lease addendum must be reviewed and approved by HUD or the Contract Administrator, ensuring the addendum does not include provisions that conflict with HUD requirements or regulations. The RHS required lease provisions are also provided in Attachment 6-E of the USDA MFH Asset Management Handbook, HB-2-3560.

• G. *Requirements of HUD Issued Lease Addendums

Violence Against Women and Justice Department Reauthorization Act of 2005 Lease Addendum (VAWA) (form HUD-91067) – Section 8 only

1. Owners must attach the HUD-approved lease addendum to each existing or new lease. The addendum must be signed by all tenants required to sign the lease. The lease addendum revises the applicable Section 8 lease to reflect the statutory requirements of the VAWA.

2. Protections Against Termination of Assistance or Eviction for Victims of Domestic Violence, Dating Violence or Stalking.

   • a. An incident or incidents of actual or threatened domestic violence, dating violence or stalking will not be construed as serious or repeated violations of the lease by the victim or threatened victim or other “good cause” for terminating the assistance, tenancy, or occupancy rights of a victim of abuse.

   • b. Criminal activity directly related to domestic violence, dating violence, or stalking, engaged in by a member of a tenant’s household or any guest or other person under the tenant’s control, shall not be cause for termination of assistance, tenancy, occupancy rights of, or assistance to the victim, if the tenant or immediate family member of the tenant is the victim.

   • c. The authority to evict or terminate assistance is not limited with respect to a victim that commits unrelated criminal activity. Furthermore, if an O/A can show an actual and imminent threat to other tenants or those employed at or providing service to the property if an unlawful tenant’s residency is not terminated, then evicting a victim is an option, the VAWA notwithstanding. Ultimately, O/As may not subject victims to more demanding standards than other tenants.

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3. Lease Bifurcation.

Assistance may be terminated or a lease “bifurcated” in order to remove an offending household member from the home. Whether or not the individual is a signatory to the lease and lawful tenant, if he/she engages in a criminal act of physical violence against family members or others, he/she stands to be evicted, removed, or have his/her occupancy rights terminated. This action is taken while allowing the victim, who is a tenant or lawful occupant, to remain.

• a. Owners must keep in mind that eviction of or the termination action against the individual must be in accordance with the procedures prescribed by federal, state and local law.

• b. In the event that one household member is removed from the unit because of engaging in acts of domestic violence, dating violence or stalking against another household member, an interim recertification should be processed reflecting the change in household composition.

4. The provisions protecting victims of domestic violence, dating violence or stalking engaged in by a member of the household, may not be construed to limit the owner, when notified, from honoring various court orders issued to either protect the victim or address the distribution of property in case a family’s composition changes.

5. The VAWA protections shall not supersede any provision of any federal state, or local law that provides greater protection for victims of domestic violence, dating violence or stalking. The laws offering greater protection are applied in instances of domestic violence, dating violence or stalking.

See Chapter 4, Paragraph 4-4.C.9 for more information on the VAWA protections.

See the Glossary for the definition of Domestic Violence, Dating Violence, Stalking, Immediate Family Member, and Bifurcate.*