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HUD Handbook 4350.3: Occupancy Requirements of Subsidized Multifamily Housing Programs

I. Chapter 7, Recertification, Unit Transfers, and Gross Rent Changes

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

Corrected erroneous references or typos: 7-6.B, 7-6.D, 7-7.B, 7-7.B.2.b(7), 7-8.B.1, 7-8.D.3.c, 7-11-A.2, 7-11.A.4, 7-16.A.1, 7-16.A.2 Note, Figure 7-2 Recertification Steps changed to Figure 7-3, Figure 7-3 Recertification Notice Due Dates changed to Figure 7-4

Additional clarification on existing text:

Paragraph 7-4.A.3 - Added tenants must sign consent forms and asset declaration forms.

Paragraph 7-4.A.4 - HUD fact sheets for determining rent are to be provided to the tenant at annual recertification. Paragraph 7-4.A.5 - Added information on conducting criminal background checks on current tenants. Paragraph 7-4.A.6 - Removed "including those tenants not receiving rental assistance."

Paragraph 7-4.D and 7-4.E - Separated paragraph 7-4.D into two paragraphs in order to clarify the restriction of occupancy of adult children after initial occupancy in Section 202/8, Section 202 PRAC and Section 811 PRAC projects.

Figure 7-2 - New comparison chart for Live-in Aide and Adult Child in 202/8 and 202 PRAC projects.

Paragraph 7-6.A - Added when assistance payments are terminated after 15 months for past due recertifications, the owner must follow the guidance in paragraph 7-8 for determining the effective date for changes in the TTP, tenant rent and assistance payment when the recertification is delayed.

Paragraph 7-7.B - Added new sentence to the Reminder Notices must also be conveyed in languages other than English for LEP persons in accordance with HUD guidance.

Paragraph 7-8.B.2 Example - Added Owner sends tenant Second Reminder Notice on 6/1.

Paragraph 7-8.D.3.b - Added a note stating Section 236 tenants must pay the Section 236 market rent and in a BMIR project the tenant must pay the BMIR market rent when the tenant responds for recertification after the recertification anniversary date.

Paragraph 7-8.D.4 - Added If the applicant is a person with disabilities, the owner must consider extenuating circumstances where this would be required as a matter of reasonable accommodation.

Paragraph 7-10.A.2 Note - Changed paragraph to reference paragraphs 7-4.D and E for eligibility of adult children after initial occupancy in Section 202/8, Section 202 PRAC and Section 811 PRAC projects.

Paragraph 7-11.B - Added a new paragraph and examples addressing processing interim recertifications when a tenant reports an increase in income that does not increase the household's cumulative income by $200 or more a month.

Paragraph 7-15.C - Added a new paragraph addressing in the case of a unit transfer, both the change in rent and assistance payment are effective on the day that the tenant actually occupies the new unit.

Form HUD-23 (9/81)

Paragraph 7-15.D - Changed to owners must develop policies. Paragraph 7-15.E - Changed to owners are obligated to transfer tenants as a reasonable accommodation. Paragraph 7-16.B - Added that owners must pay the costs of a unit transfer if the tenant is being transferred as a reasonable accommodation unless doing so would be an undue financial and administrative burden for the owner. Paragraph 7-16.C - Added owners are required to describe the unit transfer policies in their Tenant Selection Plan and added references to chapter 4 regarding these requirements. Paragraph 7-17.B - changed the reference for comment and posting to 24 CFR 245. Paragraph 7-17.E. - Added a copy of the HUD-50059 that reflects any change to the tenant rent, utility reimbursement, total tenant payment or assistance payment must be placed in the tenant file. Paragraph 7-17.F - Added change in utility reimbursement requires the tenant's signature. Exhibits 7-1, 7-2, 7-3 and 7-4 - Changed the title of the exhibits to reflect they are sample Notices and the language in the exhibits to meet the requirements in the text of Chapter 7. Exhibits 7-5, 7-6, 7-7 and 7-8 - Changed the title of the exhibits to reflect they are sample documents

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

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