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Memorandum February 5, 2002: Fact Sheets for Project-Based Assistance Programs

OAs’ Responsibilities:

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

  • Obtain accurate income information

  • Verify resident income

  • Ensure residents receive the exclusions and deductions to which they are entitled

  • Accurately calculate Tenant Rent

  • Provide tenants a copy of lease agreement and income and rent determinations

  • Recalculate rent when changes in family composition are reported

  • Recalculate rent when resident income decreases

  • But not more than Market Rent

  • Section 236 WITH Utility Allowance ; the highest of:

  • 30% of the family’s monthly adjusted income less the Utility Allowance

  • 25% of the family’s monthly adjusted income

  • Basic Rent

  • But not more than Market Rent

A Utility Allowance is approved by HUD when the cost of all or a portion of the utilities (except telephone) is not included in the unit rent and payment for the utilities is the responsibility of the family occupying the unit.

The utility allowance is not meant to pay all actual utility costs, but rather it is an allowance provided to the family to assist them in payment of their utility expenses.

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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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