3.1.27 Short-Term Lease Premiums

A. Projects offering leases with terms of less than 30 days are not eligible for HUD-insured financing under any circumstances. Treatment of income from short-term leases of at least 30 days, e.g., furnished units, corporate or business short-term leases, may be considered to the extent that it is present in the local market. The actual number of furnished or corporate/business units generally may not exceed 10% of the units. Any higher percentage must be approved by Asset Management at the time of underwriting. In the case of any such approval, no more than 10% of the units may be underwritten at rents higher than for unfurnished units of the same unit type (i.e. number of bedrooms, unit size, and configuration).