8-13 Material Noncompliance with the Lease

• A. Key Requirements

Owners may terminate tenancy when a tenant is in material noncompliance with the lease, including:

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1. Failure of the tenant to submit in time all required information on household income and composition. Examples include:

   • a. The tenant's failure to:

     • (1) Submit required evidence of citizenship or eligible immigration status;

     • (2) Disclose and verify social security numbers; or

     • (3) Sign and submit consent forms allowing verification of information regarding the tenant's income and eligibility.

   • b. The tenant's knowingly providing incomplete or inaccurate information.

2. Extended absence or abandonment of the unit as defined in the house rules for the property, or in state or local law.

   • a. House rules regarding extended absence or abandonment must be consistent with the requirements and guidelines for house rules described in paragraph 6-9. See that chapter for more information.

   • b. The house rules must be attached to the lease for that unit.

3. Fraud, which is when a tenant knowingly provides inaccurate or incomplete information .

   • a. If the owner determines that a tenant acted fraudulently, the owner may terminate tenancy under the lease. A fraudulent action is considered material noncompliance with the lease.

   • b. The owner must handle fraud as a civil violation and may handle fraud as a criminal violation. When evicting for fraud, the owner must simultaneously file a civil action against the tenant to recover the subsidy overpayment. The owner may refer the case to a local, state, or federal prosecutor who may pursue the case as a criminal matter.

   • c. The owner must take care not to confuse tenant error with fraud. Figure 8-3 below describes the difference between fraud and tenant errors. See paragraphs 8-17 and 8-18 for more information.

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