HUD Handbook 4350.3: Occupancy Requirements of Subsidized Multifamily Housing Programs

SECTION 3: WAITING LIST…

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

4-13	Key Regulations...............................................................................................4-33	Key Regulations...............................................................................................4-33	Key Regulations...............................................................................................4-33
	A.	Taking Applications for Occupancy	4-33
	B.	Creating and Maintaining Waiting Lists	4-33
	C.	Social Security Number (SSN) Requirements	4-33
	D.	Record-Keeping	4-33
4-14	Taking Applications for Occupancy...............................................................4-34
	A.	Key Requirements	4-34
	B.	Contents of Application	4-34
	C.	Types of Applications	4-35
	D.	Supplement to Application of Federally Assisted Housing	4-36
4-15	Matching Applicants on the Waiting List to Available Units.........................4-37
	A.	Overview	4-37
	B.	Nondiscrimination When Matching Applicants to Available Units	4-38
	C.	Matching Family Characteristics with Available Units	4-38
	D.	Section 8 Units: Extremely Low-Income Targeting Requirements
		and Tenant Selection	4-38
	E.	Restrictions on Applicant Selection Based on Income	4-39
	F.	Matching Single Persons to Units	4-39
4-16	Creating and Maintaining Waiting Lists .........................................................4-39
	A.	Key Requirements	4-39
	B.	Opening and Closing the Waiting List	4-40
	C.	Determining an Applicant’s Preliminary Eligibility	4-40
	D.	Creating Waiting Lists	4-41
4-17	Placing Families with Disable Family Members ............................................4-43
4-18	Documenting Changes to Waiting Lists.........................................................4-43
	A.	Overview	4-43
	B.	Providing an Auditable Record of Changes to Waiting Lists	4-43
	C.	Maintaining Documentation of the Waiting Lists	4-43
	D.	Maintaining Records of Manually Recorded Waiting Lists	4-44
	E.	Maintaining Records for Electronic Waiting Lists	4-44
4-19	Updating Waiting List Information..................................................................4-45
4-20	Removing Names from the Waiting List.........................................................4-46
4-21	Reinstating Applicants to the Waiting List.....................................................4-46
4-22	Record-Keeping...............................................................................................4-46
SECTION		4: SELECTING TENANTS FROM THE WAITING LIST..............................4-47
4-23	General .............................................................................................................4-47
4-24	Applicant Interviews........................................................................................4-47

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4-25	Applying Income Targeting Requirements in Section 8 Properties	Applying Income Targeting Requirements in Section 8 Properties	.............4-50
4-26	Verification of Preferences..............................................................................4-55
	A.	Key Requirements	4-55
	B.	Acceptable Verification Methods	4-55
4-27	Implementing Screening Reviews ..................................................................4-57
	A.	Timing for Conducting Screening Reviews	4-57
	B.	Screening for Credit History	4-57
	C.	Screening for Rental History	4-57
	D.	Screening for Housekeeping	4-59
	E.	Screening for Drug Abuse and Other Criminal Activity	4-59
4-28	Ensuring That Screening Is Performed Consistently....................................4-61
	A.	Procedures	4-61
	B.	Extenuation Circumstances	4-62
4-29	Verifying the Need for Accessible Units ........................................................4-62
4-30	Addressing Requests for Reasonable Accommodations.............................4-63
4-31	Denial of Assistance to Noncitizens...............................................................4-63
	A.	Applicability	4-64
	B.	Offering and Continuing Assistance	4-64
	C.	Events Triggering Denial of Assistance	4-64
	D.	Required Notice	4-65
	E.	DHS Appeal Process	4-65
CHAPTER	5.	DETERMINING INCOME AND CALCULATING RENT
5-1	Introduction........................................................................................................5-1
5-2	Key Terms ..........................................................................................................5-2
SECTION		1: DETERMINING ANNUAL INCOME ..........................................................5-3
5-3	Key Regulations.................................................................................................5-3
5-4	Key Requirements .............................................................................................5-3
5-5	Methods for Projecting and Calculating Annual Income ................................5-3
5-6	Calculating Income – Elements of Annual Income..........................................5-7
	A.	Income of Adults and Dependents	5-7
	B.	Income of Temporarily Absent Family Members	5-9
	C.	Deployment of Military Personnel to Active Duty	5-10
	D.	Income of Permanently Confined Family Members	5-11
	E.	Educational Scholarships or Grants	5-11
	F.	Alimony or Child Support	5-12
	G.	Regular Cash Contributions and Gifts	5-12
	H.	Income from a Business	5-13
	I.	Periodic Social Security Benefits	5-13
	J.	Adjustments for Prior Overpayment of Benefits	5-13
	K.	Public Assistance Income in As-Paid Localities	5-14
	L.	Periodic Payments from Long-Term Care Insurance, Pensions,
		Annuities, and Disability or Death Benefits	5-15

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	M.	Income from Training Programs	5-17
	N.	Resident Services Stipends	5-18
	O.	Income Received by a Resident of an Intermediate Care Facility
		for the Mentally Retarded or for the Developmentally Disabled
		(ICF/MR or ICF/DD) and Assisted Living units in Elderly Projects	5-19
	P.	Withdrawal of Cash or Assets from an Investment	5-19
	Q.	Lump Sum Payments Counted as Income	5-19
	R.	Exclusions from Income	5-22
5-7	Calculating Income from Assets.....................................................................5-23
	A.	What is Considered an Asset?	5-23
	B.	Determining Income from Assets	5-23
	C.	Determining the Total Cash Value of Family Assets	5-24
	D.	Assets Owned Jointly	5-25
	E.	Calculating Income from Assets When Assets Total $5,000 or Less	5-27
	F.	Calculating Income from Assets When Assets Exceed $5,000	5-27
	G.	Calculating Income from Assets – Specific Types of Assets	5-29
SECTION		2: DETERMINING ADJUSTED INCOME ....................................................5-40
5-8	Key Regulations...............................................................................................5-40
5-9	Key Requirements for Determining Adjusted Income...................................5-41
5-10	Calculating Adjusted Income..........................................................................5-41
	A.	Dependent Deduction	5-41
	B.	Child Care Deduction	5-42
	C.	Deduction for Disability Assistance Expense	5-44
	D.	Medical Expense Deduction	5-46
	E.	Elderly Family Deduction	5-50
	F.	No Deduction for Alimony or Child Support Paid to a Person
		Outside the Assisted Family	5-51
SECTION		3: VERIFICATION .......................................................................................5-52
5-11	Key Regulations...............................................................................................5-52
5-12	Verification Requirements...............................................................................5-52
	A.	Key Requirements	5-52
	B.	Timeframe for Conducting Verifications	5-53
5-13	Acceptable Verification Methods....................................................................5-54
	A.	Methods of Verification	5-54
	B.	Third-Party Verification	5-54
5-14	Identifying Appropriate Verification Sources ................................................5-57
5-15	Required Verification and Consent Forms.....................................................5-57
	A.	Consent and Verification Forms	5-57
	B.	HUD-Required Consent and Release Forms	5-57
	C.	Information to Tenants	5-58
	D.	Owner-Created Verification Forms	5-58
5-16	Effective Term of Verifications .......................................................................5-59

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	A. Duration of Verification Authorization	5-59
	B. Effective Term of Verifications	5-60
5-17	Inconsistent Information Obtained Through Verifications ...........................5-61
5-18	Documenting Verifications..............................................................................5-61
	A. Key Requirement	5-61
	B. Documenting Third-Party Verification	5-61
	C. Documenting Telephone Verification	5-61
	D. Recording Inspection of Original Documents	5-61
	E. Documenting Why Third-Party Verification Is Not Available	5-62
	F. Reasonable Accommodation	5-62
5-19	Confidentiality of Applicant and Tenant Information ....................................5-62
5-20	Security of EIV Data.........................................................................................5-63
5-21	Refusal to Sign Consent Forms......................................................................5-63
5-22	Interim Recertifications...................................................................................5-64
5-23	Record-Keeping Procedures...........................................................................5-64
SECTION 4: CALCULATING TENANT RENT.............................................................5-65
5-24	Key Regulations...............................................................................................5-65
5-25	Calculating the Tenant Contribution for Section 8, PAC, PRAC,
	RAP and Rent Supplement Properties ...........................................................5-65
	A. Total Tenant Payment	5-65
	B. Unit Rent	5-66
	C. Timeframe for Calculating Rent	5-66
5-26	Procedures for Determining Tenant Contributions for Section 8,
	PAC, PRAC, RAP, and Rent Supplement Properties.....................................5-67
	A. Tenant Rent	5-67
	B. Assistance Payments	5-68
	C. Utility Reimbursement	5-68
	D. Section 8 Minimum Rent	5-68
	E. Welfare Rent	5-71
5-27	Calculating Assistance Payments for Authorized
	Police/Security Personnel...............................................................................5-72
5-28	Calculating Tenant Contribution for “Double Occupancy”
	in Group Homes...............................................................................................5-72
	A. Double Occupancy	5-72
	B. Total Tenant Payment	5-73
	C. Contract Rent and Assistance Payment in Section
	202/8 Group Homes	5-73
	D. Operating Cost and Assistance Payment in Section
	811 Group Homes	5-74
	E. Calculating Rent at Change in Occupancy	5-76
5-29	Calculating Tenant Contribution for Section 236 and
	Section 221(d)(3) Below Market Interest Rate (BMIR) ...................................5-76
	A. Tenant’s Rent Contribution	5-77
	B. Timeframe for Calculating Rent	5-77

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5-30	Determining Tenant Contribution at Properties with Multiple
	Forms of Subsidy ............................................................................................5-79
5-31	Procedures for Calculating Rent ....................................................................5-80
CHAPTER	6. LEASE REQUIREMENTS AND LEASING ACTIVITIES
6-1	Introduction........................................................................................................6-1
6-2	Key Terms ..........................................................................................................6-2
SECTION 1: LEASES AND LEASE ATTACHMENTS...................................................6-3
6-3	Key Regulations.................................................................................................6-3
	A. Lease Requirements	6-3
	B. Lead-Based Pain	6-3
	C. Pet Regulations	6-3
	D. Amending the Lease	6-3
6-4	Leases, Lease Amendments and Lease Attachments – General	...................6-4
6-5	Lease Requirements..........................................................................................6-5
	A. Form of Lease	6-5
	B. Key Requirements under HUD’s Model Leases and Lease
	Addendums	6-8
	C. Model Lease for Subsidized Programs	6-9
	D. Model Lease for Section 202/8 and Section 202 PACs	6-11
	E. Model Lease for Section 202 PRACs and Section 811 PRACs	6-11
	F. Required Lease Provisions for Specific Properties	6-11
6-6	Lease Term.......................................................................................................6-13
	A. Introduction	6-13
	B Initial Term	6-14
	C. Renewal Terms	6-14
6-7	Attachments to the Lease ...............................................................................6-14
6-8	Lead-Based Paint Disclosure Form................................................................6-16
	A. Applicability	6-16
	B. Overview	6-16
	C. Disclosure Rule Requirements	6-17
	D. Record-Keeping Requirements	6-19
6-9	House Rules.....................................................................................................6-19
	A. Overview	6-19
	B. Key Requirements	6-19
6-10	Pet Rules ..........................................................................................................6-22
	A. Applicability	6-22
	B. Overview	6-23
	C. Key Requirements	6-23
	D. Lease Provisions for Pets	6-25
	E. Procedures When Pet Rules Are Violated	6-26
6-11	Amending the Lease for Rent Changes .........................................................6-27
	A. Overview	6-27

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	B. Key Requirements 6-27
6-12	Modifying the Lease ........................................................................................6-28
	A. Applicability 6-28
	B. Key Requirements 6-28
	C. Submission and Approval Process for Modifying the Lease 6-29
	D. Providing Notice to the Tenant 6-30
SECTION 2: SECURITY DEPOSITS ...........................................................................6-31
6-13	Key Regulations...............................................................................................6-31
6-14	Applicability .....................................................................................................6-31
6-15	Collection of the Security Deposit..................................................................6-31
6-16	Security Deposits for Tenants Transferring to Another Unit........................6-33
6-17	Interest Earned on the Security Deposit ........................................................6-35
6-18	Refunding and Use of the Security Deposit...................................................6-36
SECTION 3: CHARGES IN ADDITION TO RENT .......................................................6-37
6-19	Key Regulations...............................................................................................6-37
6-20	Charges Prior to Occupancy...........................................................................6-38
6-21	Charges at Initial Occupancy..........................................................................6-38
6-22	Meal Program...................................................................................................6-38
6-23	Charges for Late Payment of Rent .................................................................6-38
6-24	Pet Deposits.....................................................................................................6-39
6-25	Other Charges During Occupancy .................................................................6-40
	A. When Owners May Require Other Charges 6-40
	B. Checks Returned for Insufficient Funds 6-40
	C. Damages 6-41
	D. Special Management Services 6-41
	E. Court Filing, Attorney, and Sheriff Fees 6-41
	F. Owners May Require Tenants to Pay Other Charges 6-42
SECTION 4: THE LEASING PROCESS ......................................................................6-42
6-26	Key Regulations...............................................................................................6-42
6-27	Briefing with New Tenants ..............................................................................6-42
	A. Overview 6-42
	B. Briefing Topics 6-42
	C. Conducting the Briefing Meeting 6-44
6-28	Form of Payment .............................................................................................6-44
6-29	Unit Inspections...............................................................................................6-44
	A. Overview 6-44
	B. Key Requirements 6-45
	C. Move-In Inspection Requirements 6-45
	D. Move-Out Inspection Instructions 6-46

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6-30	Documents to Be Provided to Tenants ..........................................................6-46
CHAPTER	7. RECERTIFICATION, UNIT TRANSFERS, AND GROSS RENT
	CHANGES
7-1	Introduction........................................................................................................7-1
7-2	Key Terms ..........................................................................................................7-2
SECTION 1: ANNUAL RECERTIFICATION..................................................................7-3
7-3	Key Regulations.................................................................................................7-3
7-4	Key Requirements .............................................................................................7-3
7-5	Timing of Annual Recertifications....................................................................7-6
	A. Key Requirement 7-6
	B. Determining Recertification Anniversary Dates 7-6
	C. HUD Approval of Alternative Recertification Anniversary Dates 7-7
7-6	Overview of Annual Recertification Procedures .............................................7-8
7-7	Notices to Tenants.............................................................................................7-9
	A. Overview 7-9
	B. Description of Required Notices 7-9
7-8	Effective Dates of Changes in Assistance Payment, Total
	Tenant Payment, and Tenant Rent .................................................................7-14
	A. Overview 7-14
	B. Timely Completion of Recertification Process 7-14
	C. Timely Tenant Response, But Short Processing Time 7-15
	D. Late Response/Processing of Recertifications 7-16
SECTION 2: INTERIM RECERTIFICATION ................................................................7-22
7-9	Key Regulations...............................................................................................7-22
7-10	Key Requirements ...........................................................................................7-22
7-11	Owner Responsibilities ...................................................................................7-23
7-12	Processing Interim Recertifications...............................................................7-26
7-13	Effective Date of Interim Recertifications ......................................................7-27
SECTION 3: UNIT TRANSFERS .................................................................................7-28
7-14	Key Regulations...............................................................................................7-28
7-15	Key Requirements ...........................................................................................7-28
7-16	Unit Transfers Due to a Change in Family Composition...............................7-29
	A. Determining Whether a Unit Transfer Should Occur 7-29
	B. Transfer Requirements 7-29
	C. Written Policies 7-30
	D. Transfer Fees in Section 236 and BMIR Cooperatives 7-30

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SECTION 4: GROSS RENT CHANGES ......................................................................7-30
7-17	Key Requirements ...........................................................................................7-30
7-18	Submission and Approval Process................................................................7-31
CHAPTER	8. TERMINATION
8-1	Introduction........................................................................................................8-1
8-2	Key Terms ..........................................................................................................8-2
SECTION 1: TERMINATION OF ASSISTANCE............................................................8-3
8-3	Key Regulations.................................................................................................8-3
8-4	Applicability .......................................................................................................8-3
8-5	Key Requirements: When Assistance Must Be Terminated ..........................8-3
8-6	Procedures for Terminating or Reinstating Assistance..................................8-5
	A. Terminating Assistance 8-5
	B. Reinstating Assistance 8-6
8-7	Termination of Assistance Related to Establishing Citizenship or
	Eligible Immigration Status...............................................................................8-6
	A. Applicability 8-6
	B. When Assistance Must Not Be Terminated 8-6
	C. Termination of Assistance When Unable to Establish Citizenship
	or Eligible Immigration Status 8-7
	D. Termination of Assistance When a Tenant Allows an Ineligible
	Individual to Reside in a Unit 8-8
SECTION 2: TERMINATION OF TENANCY BY LESSEES...........................................8-9
8-8	Key Regulations.................................................................................................8-9
8-9	Key Requirements .............................................................................................8-9
8-10	Allowable Use of Security Deposits .................................................................8-9
SECTION 3: TERMINATION OF TENANCY BY OWNERS.........................................8-10
8-11	Key Regulations...............................................................................................8-10
	A. Termination of Tenancy 8-10
	B. Eviction for Drug Abuse and Other Criminal Activity 8-10
	C. Providing Notice of Termination of Tenancy 8-10
8-12	Overview...........................................................................................................8-10
8-13	Material Noncompliance with the Lease ........................................................8-11
	A. Key Requirements 8-11
	B. Procedures for Terminating Tenancy and Providing Notice 8-15
8-14	Drug-Abuse and Other Criminal Activity........................................................8-17
	A. Key Requirements 8-17

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	B.	Factors to Consider When Terminating Tenancy for Drug Abuse
		and Other Criminal Activity	8-18
	C.	Procedures for Accessing Criminal Records	8-19
	D.	Procedures for Terminating Tenancy and Providing Notice	8-22
8-15	Material Failure to Carry Out Obligations under a State or Local
	Landlord and Tenant Act.................................................................................8-22
	A.	Key Requirements	8-22
	B.	Procedures for Terminating Tenancy and Providing Notice	8-23
8-16	Other Good Cause...........................................................................................8-23
	A.	Key Requirements	8-23
	B.	Procedures for Terminating Tenancy and Providing Notice	8-23
SECTION		4: DISCREPANCIES, ERRORS, AND FRAUD ...........................................8-24
8-17	Key Regulations...............................................................................................8-24
8-18	Procedures for Addressing Discrepancies and Errors.................................8-24
	A.	Overview	8-24
	B.	Program Violations	8-24
	C.	Investigating and Discovering the Facts	8-24
	D.	Notifying and Meeting with the Tenant	8-25
	E.	Determining the Outcome of the Investigation	8-25
8-19	Procedures for Addressing Fraud..................................................................8-26
	A.	Overview	8-26
	B.	Criminal Violation (Fraud)	8-26
	C.	Documenting Fraud	8-26
	D.	Taking Action to Address Fraud	8-27
8-20	Discrepancies Reported in the EIV System ...................................................8-28
	A.	Requirements Regarding Discrepancies Reported in the EIV System	8-28
	B.	Nondisclosure of Income Information	8-29
	C.	Opportunity to Contest	8-29
8-21	Reimbursement to HUD for Overpayment of Assistance..............................8-29
	A.	Tenant’s Obligation to Repay	8-29
	B.	Owner’s Obligation to Repay	8-30
8-22	Tenant Repayment Options ............................................................................8-31
8-23	Repayment Agreements..................................................................................8-32
8-24	Reimbursement to Tenant for Overpayment of Rent ....................................8-34
8-25	Reimbursement for Errors Discovered During a Monitoring Review...........8-34

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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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