HUD Handbook 4350.3 § 5-31
Procedures for Calculating Rent (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
Operative Text
A. Owners must calculate tenant rent payments electronically using on-site software
or a service provider. Data used to determine the rent are based on information
certified as accurate by the family and independently verified.
B. The owner’s computer software calculates rent based on the appropriate
formulas for the tenant’s unit and produces a printed copy of the HUD-50059 to
be signed by the tenant and the owner. The owner must produce a printed report
in an easily read and understood format that contains all of the information used
to calculate the tenant’s rent.
C. The tenant and the owner sign a copy of the report containing a statement
certifying the accuracy of the information. The certification statements are
provided on the form HUD-50059 in Appendix 7-B.
D. The owner must give a copy of the printed HUD-50059 with the required
signatures to the tenant and place another copy in the tenant file.
E. The HUD-50059 is then transmitted electronically to TRACS either directly or
through the Contract Administrator.
F. In all cases, the computer generated HUD-50059 must include the required
tenant signatures and owner signatures prior to submitting the data to the
Contract Administrator or HUD. The owner may consider extenuating
circumstances when an adult family member is not available to sign the HUD-
50059, for example, an adult serving in the military, students away at college,
adults who are hospitalized for an extended period of time, or a family member
who is permanently confined to a nursing home or hospital. The owner must
document the file why the signature(s) was not obtained and, if applicable, when
the signature(s) will be obtained.HUD Handbook 4350.3 REV-1 CHG-4 § 5-31 establishes that rent calculations for covered housing must be performed electronically using approved software or a service provider, drawing on family-certified and independently verified data. The results are recorded on form HUD-50059, which both the tenant and owner sign to certify accuracy, and the completed form is transmitted electronically to the TRACS system. When an adult household member cannot sign due to extenuating circumstances—such as military service, hospitalization, or nursing home confinement—the owner must document the reason and, where applicable, note when the signature will be obtained.
Plain English — not legal advice.
Under HUD Handbook 4350.3 REV-1 CHG-4 § 5-31, compliant operators use approved on-site software or a third-party service provider to calculate rents electronically, ensuring the underlying data has been certified by the family and independently verified. Operators produce a printed HUD-50059 in a clear, readable format, obtain the required tenant and owner signatures, provide a signed copy to the tenant, and retain another in the tenant file before transmitting the form to TRACS via the Contract Administrator or directly to HUD. When an adult household member is unavailable to sign, operators document the specific extenuating circumstance in the file and record the anticipated date for obtaining the missing signature.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
HUD Handbook 4350.3 REV-1 CHG-4 § 5-31 gives tenants the right to receive a printed, signed copy of the HUD-50059 form that shows all the information used to calculate their rent, allowing them to review the figures for accuracy. If a tenant believes the rent calculation is incorrect or that a required copy was not provided, they may raise this as a concern with the property's Contract Administrator or file a complaint with the U.S. Department of Housing and Urban Development. Tenant-rights organizations familiar with HUD-assisted housing can help explain what the form should contain and what options are generally available when procedural requirements under § 5-31 appear not to have been followed.
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 25, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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