Determining the Outcome — HUD Handbook 4350.3 REV-1

If the tenant meets with the owner to discuss the error, and the owner is convinced the tenant’s submissions were correct, the owner should document the file accordingly and close the investigation.
If, after meeting with the tenant, the owner determines that the provision of inaccurate information was an unintentional program violation, the owner should correct the tenant’s rent, if applicable, and provide the tenant with notice of the change in rent. If the tenant is unable to repay the full amount, the owner and tenant should enter into a repayment agreement. (See Paragraph 8-23 for information on repayment agreements.)

HUD Occupancy Handbook Chapter 8: Termination

8/13

8-25

Section 4: Discrepancies, Errors, and Fraud

4350.3 REV-1

a. If, after the income adjustment, the tenant no longer qualifies for assistance, the tenant may remain in the property subject to making repayments and paying market rent.
b. The owner may terminate tenancy if the tenant refuses to pay the new monthly rent or refuses to repay the previously overpaid subsidy pursuant to the repayment agreement.
c. If necessary, civil action may be filed to recover the funds.