HUD Handbook 4350.3 § 2-47

Owner and Tenant Responsibilities When Tenant Modifies Unit in (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)

HUD guidance — not codified law
In Force
Verified 11/9/2026 · Next check 11/16/2026
effective 9/29/2026FederalReasonable Accommodations/Modifications

Operative Text

HUD Handbook 4350.3 § 2-47
Accordance with the Fair Housing Act

         A.       Owners must permit the modifications if they are reasonable and may be
                  necessary to afford a person with a disability full enjoyment of the premises.

         B.       Owners may, where it is reasonable to do so, impose the condition that when
                  vacating the unit, the tenant will restore the interior of the premises to the state
                  that existed before the modification, reasonable wear and tear excepted. The
                  owner should not require the tenant to restore the unit to the state that existed
                  before the modification if the modification benefits the property or is needed by
                  another tenant.

                     Example – Owners Requiring Tenants to Restore Units to Their
                                        Original Condition
                  For marketing reasons or operational considerations, the owner may
                  require the tenant to raise cabinets that have been lowered or replace
                  roll-under lavatories with the previously existing vanity/sink combination.

C.       Owners may not require any increased security deposits for persons with
                  disabilities. However, where it is necessary in order to ensure that funds will be
                  available to pay for restorations at the end of the tenancy, the Fair Housing Act
                  allows the owner to negotiate as part of a restoration agreement, a provision
                  requiring that the tenant pay into an interest bearing escrow account, over a
                  reasonable period, a reasonable amount of money not to exceed the cost of the
                  restorations. The interest of such an account must accrue to the benefit of the
                  tenant.

D.       Owners may condition permission for a modification on the tenant’s providing
                 reasonable assurances that the work will be done in a workmanlike manner and
                 that any required building permits will be obtained.

Section 4: Housing Discrimination Complaints and Compliance Reviews
Source: Legislative text reproduced verbatim
Plain English

HUD Handbook 4350.3 REV-1 CHG-4 § 2-47 establishes a framework governing unit modifications made by tenants with disabilities under the Fair Housing Act. Owners of covered housing must allow reasonable modifications that are necessary for a person with a disability to fully enjoy their home, but may require the tenant to restore the unit to its pre-modification condition upon move-out — unless the modification benefits the property or would serve another tenant. Owners cannot demand extra security deposits because of a disability, though they may negotiate an interest-bearing escrow arrangement to cover restoration costs, with any accrued interest going to the tenant. Permission for modifications may also be conditioned on assurances that the work will be done properly and that required permits will be obtained.

Written by anthropic/claude-sonnet-4.6 · Reviewed on September 30, 2026

Plain English — not legal advice.

For Property Managers

Under HUD Handbook 4350.3 REV-1 CHG-4 § 2-47, compliant operators generally document modification requests, evaluate whether they are reasonable and disability-related, and grant permission when those criteria are met. When a restoration requirement is appropriate, operators typically include it in a written restoration agreement rather than increasing the security deposit — and if an escrow arrangement is used to fund future restorations, the account must be interest-bearing with interest accruing to the tenant. Operators also commonly require written assurances that modifications will be completed in a workmanlike manner and that all applicable building permits will be secured before work begins.

General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.

For Tenants

HUD Handbook 4350.3 REV-1 CHG-4 § 2-47 gives tenants with disabilities the right to make reasonable modifications necessary for full enjoyment of their unit, and prohibits owners from charging an increased security deposit on the basis of disability. If a restoration agreement is part of the permission, any escrow funds set aside for that purpose must earn interest that belongs to the tenant, and restoration cannot be required for modifications that benefit the property or are needed by another resident. Tenants who believe these rights have been violated may consider filing a housing discrimination complaint with the U.S. Department of Housing and Urban Development or reaching out to a local tenant-rights organization for general information about available options.

General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.

Generated September 30, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.

Effective Timeline

Expression #1
Sep 24, 2026
Current
Sep 29, 2026
Click on timeline segments to view historical versions.

References Out

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Related Rules

§ 966.7
§ 966.7 Accommodation of persons with disabilities.
§ 982.316
§ 982.316 Live-in aide.
§ 2.6
Titles II and III of the Americans with Disabilities Act of 1990

Source Information

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