Exhibit 7-4: Sample Annual Recertification Third Reminder Notice/Notice of Termination

8-10 Allowable Use of Security Deposits

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

If a tenant fails to pay the required rent or if there are tenant damages to the unit, an owner may use the tenant’s security deposit to pay the outstanding rent and/or damages. Any remaining funds must be paid to the tenant. An owner must follow the requirements and guidelines for security deposits and other charges outlined in paragraph 6-18 regarding the refunding and use of the security deposit.

HUD Occupancy Handbook Chapter 8: Termination

06/09

8-9

Section 3: Termination of Tenancy by Owners

4350.3 REV-1

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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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