HUD Handbook 4350.3 § 6-24

A.       The pet rules may require tenants to pay a refundable pet deposit, but apply only
                 to those tenants who own or keep cats or dogs in their units. This deposit is in
                 addition to any additional financial obligation generally imposed on tenants of the
                 property.

        B.       The maximum amount of the pet deposit that may be charged by an owner on a
                 per-unit basis is determined as outlined in Figure 6-8. The amount of the deposit
                 was set by publication of a notice in the Federal Register by HUD and may
                 change periodically with future publications.

        C.       Pet deposits only apply to properties established for the elderly and persons with
                 disabilities. Assistance animals *are animals that provide disability-related
                 assistance, support, or provide service to persons with disabilities and are
                 exempt from the pet policy and from the refundable pet deposit. See Chapter 2-
                 44 Assistance Animals as a Reasonable Accommodation for more information.*

        D.       An owner may use the pet deposit only to pay reasonable expenses directly
                 attributable to the presence of the pet on the property. Such expenses would
                 include, but not be limited to, the cost of repairs and replacement to the unit,
                 fumigation of the unit, and the cost of animal care facilities.

E.        Owners must return the unused portion of a pet deposit to the tenant within a
                  reasonable time after the tenant moves from the property or no longer owns or
                  keeps a household pet in the unit.

        F.        In addition to the information presented here, an owner should consult HUD
                  Handbook 4350.1, Multifamily Asset Management and Project Servicing, for
                  further information and details relating to pet rules and regulations.

                                *Figure 6-8*: Collection of Pet Deposits

                              Program                       Maximum Amount to Collect

             Tenants whose rents are subsidized        The pet deposit must not exceed $300.
             under the following programs:
                                                       The initial deposit cannot exceed $50 at
             Section 8 New Construction                the time the pet is brought onto the
             Section 8 Substantial Rehabilitation      premises.
             Section 8 State Agency
                                                       The pet rules must provide for gradual
             RHS 515 with Section 8
                                                       accumulation of the remaining required
             Section 202 with PRAC
                                                       deposit, not to exceed $10 per month
             Section 811 with PRAC
                                                       until the deposit is reached.
             Rent Supplement
             Rental Assistance Payment                 NOTE: A tenant must be allowed to pay
                                                       the entire amount or increments that are
                                                       greater than $10 if he or she chooses to
                                                       do so.
             Tenants whose rents are not subsidized    The pet deposit must not exceed $300.
             under one of the programs listed in 1
                                                       The pet rules may provide for a gradual
             above, but who live in a property
                                                       accumulation of the required deposit.
             assisted under the following programs:
             Section 236 Interest Reduction
             Section 202 with Section 8
             Section 202 with PAC
             Section 221(d)(3) BMIR