HUD Handbook 4350.3 § 6-4

A.       This section identifies the regulatory requirements regarding an owner’s lease,
                 *lease addendums* and lease attachments, including the lead-based paint
                 disclosure form, house rules, and pet regulations. It also describes procedures
                 for meeting these requirements, identifying which procedures are required and
                 which are optional. Throughout this section, the differences in policies and
                 procedural requirements across the four model leases are identified.

                 NOTE: The leases may also need to be *provided* in languages other than
                 English for LEP persons, when applicable, in accordance with HUD guidance,
                 Final Guidance to Federal Financial Assistance Recipients Regarding Title VI
                 Prohibition Against National Origin Discrimination Affecting Limited English
                 Proficient Persons, published in the Federal Register on January 22, 2007. *The
                 HUD model leases are available in English as well as several other languages
                 and are posted on HUDCLIPS at
                 http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclip
                 s and at HUD’s LEP website at http://www.hud.gov/offices/fheo/lep.xml.*

                 The lease is a legally binding contract between the owner and the tenant. The
                 regulations governing HUD’s various multifamily housing programs state that
                 owners must use leases that are in an acceptable form to HUD. In practice,
                 owners must use one of the four model leases prescribed by HUD (see Figure 6-
                 2). The lease an owner uses depends on the program being administered.

                 1.      Owners may, but are not required to, use the HUD model leases for units
                         where the tenant pays market rent, full contract rent, or 110% of the BMIR
                         rent in the case of Section 221(d)(3) BMIR properties.

                 2.      The HUD model leases do not apply to cooperatives. Cooperative
                         members should use occupancy agreements. All occupancy agreements
                         executed after February 15, 1984 must include the cooperative’s policy
                         on unit transfers and paragraphs 15, 16, 17, 23 and 25 of the Model
                         Lease for Subsidized Programs covering recertification, termination of
                         assistance, and fraud penalties. (See paragraph 6-5 A for more
                         information.)

        B.       The HUD model leases identify the program requirements that owners and tenants
                 must adhere to while participating in the programs. Although many of these
                 requirements are the same in each of the four leases, several of the lease
                 provisions vary from lease to lease. For example, changes in the tenant rent are
                 listed in all four model leases; however, the specific requirements and language are
                 different among the four leases.

C.       *The Violence Against Women and Justice Department Reauthorization Act of
                 2005 Lease Addendum (VAWA), form HUD-91067, must be attached to the
                 applicable model lease for all tenants receiving Section 8 assistance. (see
                 Paragraph 6-5.B.2 for signature requirements).*

        D.       Changes to the Model Lease for Subsidized Programs *by owners* may only be
                 for documented state or local laws, or a management practice generally used by
                 management entities of assisted projects. *Lease modifications by owners are
                 made using a lease addendum.* Before implementing the changes, the owner
                 must obtain written approval from HUD or the Contract Administrator. The Model
                 Lease for Section 202/8 or Section 202 PACs may only be modified for
                 documented state or local laws or as specifically noted in paragraph 6-5 D. The
                 Model Leases for Section 202 PRACs and Section 811 PRACs may only be
                 modified for documented state or local laws or as specifically noted in paragraph

                 *NOTE: Owner modifications to the HUD model leases through revisions to
                 the leases themselves or through lease addendums that were approved
                 prior to the effective date of Change 4 to this Handbook remain in effect
                 until such time as HUD re-issues the model leases with modifications to the
                 language in the leases or the lease addendum modifications are no longer
                 applicable.*

        E.       If any provision of a model lease conflicts with state or local law, the owner must
                 follow the rule that is of most benefit to the tenant.