HUD Handbook 4350.3 § 6-1

A.       The previous chapters provided guidance on determining eligibility, organizing
                 and managing waiting lists, determining income, and calculating rents. At this
                 point in the process, residents are ready to sign a lease. A lease is a contract
                 between the owner and tenant that explains the terms for residing in the unit. A
                 lease is a legally binding contract and is enforceable in a court of law. Owners
                 and tenants alike should be familiar with the provisions of the lease (when
                 relevant, the applicable HUD model lease) so they can better understand their
                 responsibilities under the lease.

        B.       Chapter 6 contains information on the lease and the activities associated with the
                 leasing process. The information is organized as follows:

                        Section 1: Leases, *Lease Addendums*, and Lease Attachments
                         describes the lease requirements for the applicable programs described
                         in paragraph 1-3. It also addresses lease *addendums and* documents
                         that must be attached to the lease, when applicable. The section ends
                         with a discussion on amending and modifying a lease.

                        Section 2: Security Deposits discusses the requirements and
                         procedures regarding security deposits.

                        Section 3: Charges in Addition to Rent discusses the allowable and
                         prohibited charges that owners may levy. These charges are those other
                         than rent, which is addressed in Chapter 5, Section 4 about calculating
                         tenant rent, and other than security deposits, which are discussed in
                         Section 2 of this chapter.

                        Section 4: The Leasing Process discusses the requirements and
                         procedures for two activities associated with the leasing process: briefing
                         new residents and inspecting units. It also addresses the handouts that
                         owners must provide tenants, such as the lease, the Residents Rights
                         and Responsibilities brochure, *the EIV & You brochure*, and the lead-
                         based paint disclosure form.