HUD Handbook 4350.3 § 7-12
Processing Interim Recertifications (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
Operative Text
A. When a tenant requests an interim recertification or when a tenant reports
changes in income or other circumstances as required, the owner must take the
following steps when processing an interim recertification.
1. Interview the tenant to obtain information on the reported change. The
owner must also review and ask if there have been other changes to
family composition, income, assets, or allowances since the most recent
certification.
2. Obtain third-party verification of the income or other facts reported as
changed since the last recertification and maintain documentation in the
tenant file. (See Chapter 5, Section 3 for more information about
verification.)
3. *The EIV system must be used at the time a tenant reports a change in
employment or income to determine if any information has been provided
by the employer or if the tenant had unreported income. However,
because of the delay in reporting requirements by state agencies, EIV
may not contain data that can be used to verify employment or income for
use in processing interim recertifications in instances where tenants
report a change in employment or income. In these cases, the owner will
need to use another method of verification.*input any changes to the
tenant’s income or other characteristics in the owner’s software program
and print *the* HUD-50059.*
4. Document the resulting changes in the tenant’s rent and assistance
payment by obtaining signatures on the HUD-50059 from the head, co-
head, and spouse and all other adult family members. Maintain copy
with original signatures in the tenant file. Provide the tenant with a
separate copy.
5. After obtaining tenant and owner representative signatures, electronically
transmit interim recertification to the Contract Administrator or HUD to
update the tenant information in TRACS.
B. Owners must take the following steps upon learning that a tenant failed to report
a change in income or family composition, as stated in the lease.
1. Tenant notification. When owners learn that a tenant has experienced a
change in family income or composition listed in paragraph 7-11 A, they
must immediately notify the tenant in writing of his or her responsibility to
provide information about such changes. *This includes the owner using
the EIV New Hires Report in accordance with their written policies and
learning that the tenant, or a member of the tenant’s household, has new
employment. (The owner must have policies in place to use the New
Hires Report at least quarterly. See Chapter 9, Enterprise Income
Verification (EIV).* The owner’s notice must:
a. Refer the tenant to the lease clause that requires the interim
recertification;
b. Give the tenant 10 calendar days to respond to the notice; and
c. Inform the tenant that his or her rent may be raised to the market
rent if the 10-day deadline is not met.
NOTE: See Exhibit 7-7 for a sample letter.
2. Timely tenant response. If the tenant responds to the notice and supplies
the required information within 10 days, the owner must process the
request in accordance with subparagraph A above and implement any
resulting rent changes in accordance with paragraphs 7-13 C and D.
3. Tenant fails to respond within 10 calendar days of notice. If the tenant
fails to respond within the 10 calendar days, the owner must require the
tenant to pay market rent as of the first rent period following the 10-day
notice period. (See sample notice provided in Exhibit 7-8.) If the tenant
subsequently submits the required information, the owner must reduce
the tenant’s rent on the first of the following month. In a Section 202
PRAC or 811 PRAC project, the owner may evict the tenant for
noncompliance with the lease requirement to report changes in family
income or composition.HUD Handbook 4350.3 REV-1 CHG-4 § 7-12 establishes the procedural steps that must be followed when processing an interim recertification in HUD-assisted housing. When a tenant reports a change in income, family composition, or other relevant circumstances, the owner is required to interview the tenant, obtain third-party verification, use the EIV system to check employment and income data, update the HUD-50059 form, collect required signatures, and transmit the updated information to the Contract Administrator or HUD via TRACS. If a tenant fails to report a required change, the owner must provide written notice giving the tenant 10 calendar days to respond; failure to respond within that window can result in the tenant being charged market rent, and in Section 202 PRAC or 811 PRAC properties, potential eviction.
Plain English — not legal advice.
Under HUD Handbook 4350.3 REV-1 CHG-4 § 7-12, compliant operators maintain a consistent process for handling interim recertifications that includes conducting a tenant interview, running the EIV system at the time a change in employment or income is reported, obtaining third-party verification, and updating the HUD-50059 with all required signatures before transmitting to TRACS. When an owner discovers an unreported change—including through the EIV New Hires Report, which policies must require be checked at least quarterly—written notice to the tenant is required immediately, specifying the relevant lease clause, the 10-day response window, and the consequence of market rent if the deadline is missed. Operators of Section 202 PRAC or 811 PRAC properties also maintain lease enforcement procedures that account for the possibility of eviction for noncompliance with reporting requirements.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
HUD Handbook 4350.3 REV-1 CHG-4 § 7-12 gives tenants in HUD-assisted housing the right to have changes in income or family composition processed through a defined recertification procedure, including an interview and third-party verification, with resulting rent adjustments documented on a signed HUD-50059 of which the tenant receives a copy. If an owner sends written notice that a change was not reported, tenants generally have 10 calendar days to respond with the required information before market rent can be imposed; if the information is later submitted, rent must be reduced on the first of the following month. Tenants who believe this process has not been followed correctly may raise the issue with their local HUD field office, contact a HUD-approved housing counseling agency, or reach out to a tenant-rights organization for general guidance on available options.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 30, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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