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

8-25 Reimbursement for Errors Discovered During a Monitoring Review

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

If, during a review of the tenant files, the CA determines that an error was made in the income calculation based on the income verifications on file that results in an under- or over-payment of rent by the tenant, unless the overpayment was due to the owner's error or the owner's failure to follow HUD's procedures, the owner must make the necessary adjustments to the tenant’s rent for the period the error occurred. The tenant must reimburse the owner for any underpayment of rent and the owner must reimburse the tenant for any overpayment of rent.*

HUD Occupancy Handbook Chapter 8: Termination

8/13

8-34

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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