HUD Handbook 4350.3 § 6-11

A.      Overview

                Amending the lease for a change in rent provides the owner and tenant with an
                accurate and up-to-date record of an increase or decrease in a tenant’s rent.
                The lease is a legal contract between the owner and the tenant, which stipulates
                the amount of rent the tenant is obligated to pay to the owner each month. By
                amending the lease for changes in the rent, the tenant and owner are both aware
                of the amount of rent the tenant must pay to the owner each month.

        B.      Key Requirements

                1.       Any increase in rent must be governed by HUD regulations and
                         requirements currently in effect.

                2.       HUD does not require an addendum for a change in the tenant’s rent.

                         NOTE: The printout of the HUD-50059 or HUD-50059-A serves as an
                         addendum identifying the change in rent.

                3.       If the tenant rent increases for any reason other than a tenant's failure to
                         comply with recertification requirements, the owner must give the tenant
                         30 days advance written notice of the increase. The notice must state:

                         a.      The reason for the increase; and

                         b.      That it revises the rent at the following paragraph(s):

                                 (1)      Paragraph 3 of the Model Lease for Subsidized Programs;

                                 (2)      Paragraphs 2 and 5 of the Model Lease for Section 202/8
                                          and Section 202 PACs; and

                                 (3)      Paragraphs 2 and 4 of the Model Leases for Section 202
                                          PRACs and Section 811 PRACs.

                4.       If the contract rent or assistance payment changes but the tenant rent
                         and utility allowance remain the same, the owner need only provide the

tenant with a copy of the revised HUD-50059 or HUD-50059-A. A copy of
                         the revised HUD-50059 or HUD-50059-A must also be filed in the
                         tenant’s file to reflect the correct gross rent and assistance payment (see
                         paragraph 7-17 E).