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Key Requirements

HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs · 2026 edition · updated 2026-10-05 · United States

  1. Owners in all HUD-subsidized multifamily properties are required to complete move-in and move-out inspections.

    1. Owners must document these inspections. (See Appendix 5 for a sample unit inspection report.)

    2. Owners may design their own inspection forms.

  • C. Move-In Inspection Requirements

    1. Before executing a lease, the owner and tenant must jointly inspect the unit.

    2. After the owner conducts a unit inspection, the inspection form must indicate the condition of the unit. The condition of the unit must be decent, safe, sanitary, and in good repair. If cleaning or repair is required, the owner must specify on the inspection form the date by which the work will be completed. The date must be no more than 30 days after the effective date of the lease.

    3. Both the owner and the tenant must sign and date the inspection form. The inspection form must include the statement, “The unit is in decent, safe and sanitary condition”.

    4. The tenant has 5 days to report any additional deficiencies to the owner to be noted on the move-in inspection form.

HUD Occupancy Handbook Chapter 6: Lease Requirements and Leasing Activities

6/07

6-45

Section 4: The Leasing Process

4350.3 REV-1 CHG-4

  1. The move-in inspection form must be made part of the lease, as an attachment to the lease.

  • D. Move-Out Inspection Instructions

    1. Owners are advised to encourage tenants to accompany them on the inspection. Upon a tenant's request, he/she must be allowed to attend the move-out inspection conducted by the owner. If a tenant is with the owner during the inspection, disagreements between the owner and the tenant regarding unit damage can be resolved up front.

    2. If a tenant does not wish to participate, the owner may do the inspection alone.

    3. HUD does not provide move-out inspection criteria. It is at the owner’s discretion to develop criteria to distinguish between wear-and-tear and damage. If an owner determines that the unit is damaged as a result of tenant abuse or neglect, he/she may use the security deposit to cover the repair costs. (See Section 2: Security Deposits for more information.)

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▸Contents — HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs
HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs

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