HUD Handbook 4350.3 § 7-11

A.        Owners must process an interim recertification if a tenant reports:

                   1.      A change in family composition;

                   2.      An increase in a family’s cumulative income of $200 or more a month;

                   3.      An increase in allowances (e.g., number of dependents, a new disability
                           assistance expense);

                           *NOTE: See Paragraph 3-9.D.7 for SSN requirements for adding new
                           household members who are dependents.*

                   4.      Most decreases in income except in the circumstance described in
                           subparagraph D below; or

                   5.      A change in citizenship or eligible immigration status of any family
                           members.

                           NOTE: See Chapters 3, 4, and 8 for other citizenship and eligible
                           immigration status requirements. (Restriction on assistance to
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noncitizens is addressed in paragraph 3-12, denial of assistance is
                           addressed in paragraph 4-31, and termination of assistance is addressed
                           in paragraph 8-7.)

         B.        If a tenant reports a change in income that does not increase the household’s
                   cumulative income by $200 or more a month, the owner should not process an
                   interim recertification to increase the tenant’s rent. If a tenant reports any other
                   change addressed above along with an increase in income that does not
                   increase the household’s cumulative income by $200 or more a month, the
                   owner should not include the increase in income in processing the interim
                   recertification.
                   1.       Example: The tenant reports that a family member has gone to work
                            part-time. The owner verifies the employment income and learns that the
                            household’s cumulative income will only increase by $150 per month.
                            The owner should not process an interim recertification.

                   2.      Example: The tenant reports they have a new baby and also that a family
                           member has gone to work part-time. The owner verifies the employment
                           income and learns that the household’s cumulative income will only
                           increase by $100 per month. The owner should process an interim
                           recertification to include the new baby as a dependent but should not
                           include the increase in income.

         C.        Upon receiving a tenant request for an interim recertification, owners must
                   process a recertification of family income and composition within a reasonable
                   time, which is only the amount of time needed to verify the information provided
                   by the tenant. Generally, this should not exceed 4 weeks.

                   1.      If the reason for interim recertification is a proposed change in family
                           composition, the owner must screen the proposed additional person(s),
                           including live-in aides, for drug abuse and other criminal activity,
                           *including a State lifetime sex offender registration check. The owner
                           must also obtain the new household member’s SSN, unless the
                           household member does not contend eligible immigration status or is an
                           individual age 62 or older as of January 31, 2010, and does not have a
                           SSN but was receiving HUD rental assistance at another location on
                           January 31, 2010. (See Chapter 3, Paragraph 3-9.D.7, Adding New
                           Household Members.)*

                   2.      The owner may also apply additional owner established screening used
                           for applicants to proposed new persons. In the case of live-in aides, the
                           owner established screening criteria may also be applied, except for the
                           criteria to pay rent on time.

         D.        Owners may refuse to process an interim recertification when the tenant reports
                   a decrease in income only if the following apply:

                   1.      The decrease was caused by a deliberate action of the tenant to avoid
                           paying rent. For example, the owner receives documented evidence that
                           a tenant quit a job in order to qualify for a lower rent.

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2.      The owner has confirmation that the decrease will last less than one
                           month. For example, an owner receives confirmation from the tenant’s
                           employer that the tenant will be laid off for only two weeks.

                           a.       If the owner determines that the decrease in income will last less
                                    than one month, the owner may choose, but is not obligated, to
                                    process an interim recertification.

                           b.       The owner must, however, implement this policy consistently for
                                    all tenants in the property who experience a decrease in income
                                    that will last for less than one month.

         E.        Owners should not recertify a tenant receiving welfare assistance in an as-paid
                   welfare program when the Public Assistance Agency reduces the tenant’s shelter
                   and utility allowance because it is greater than the tenant’s actual rent.

         F.        Owners may delay, but not refuse, to process an interim recertification if they
                   have confirmation that a tenant’s income will be partially or fully restored within
                   two months. Processing may be delayed only until the new income is known.

                             Example – Delaying an Interim Recertification
                          A tenant, Bob Jenkins, reports to the owner that he was
                          laid off from his job last week. The owner verifies that Bob
                          lost his job and has filed for unemployment benefits. The
                          processing of his application for unemployment benefits
                          has not yet been completed. The owner may wait until the
                          processing of the unemployment claim has been
                          completed.

                   1.      When owners decide to delay processing, the following apply:
                           a.       May require the tenant to pay the current amount of rent until the
                                    interim recertification is complete.
                           b.       Must not evict the tenant for nonpayment of rent.
                           c.       Must not charge the tenant a late fee for paying rent after the 5th of
                                    the month because the owner elected to delay processing,
                                    knowing the tenant has experienced a change in income.
                   2.      Once owners are able to verify the tenant’s new income, they must do as
                           follows:
                           a.       Recertify the tenant, as described in paragraph 7-12.
                           b.       Retroactively apply any reduction in rent to the first day of the
                                    month after the date of the action that caused the decrease in
                                    income.
                           c.       Notify the tenant in writing of any rent due for the period of delay.
                                    If the tenant fails to pay this amount within 30 days of notification,
                                    the owner may pursue eviction for nonpayment of rent.

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NOTE: Owners must not enforce language, in any existing lease with a tenant,
                   based on any previous version of Section 16(b) of the model lease other than
                   that presently contained in Appendix 4 and designated “revised 3/22/89." In
                   cases where existing leases contain the previous version of Section 16(b), at the
                   next recertification of each tenant, owners are to attach a copy of the revised
                   paragraph to the lease, dated and signed by the owner and initialed by the
                   tenant, and give the tenant a copy. The revised version will therefore supersede
                   the old version. All new leases will use the revised form as contained in
                   Appendix 4.
         G.        Owners do not have to perform interim recertifications for individual tenants who
                   are paying market rent.