HUD Handbook 4350.3 § 7-13

A.        Owners must provide the tenant with written notice of the effective date and the
                   amount of the change in TTP or tenant rent resulting from the interim
                   recertification.

         B.        For interim recertifications, both the change in assistance payment and change in
                   TTP or tenant rent are effective on the same day.

         C.        If the tenant complies with the interim reporting requirements, rent changes must
                   be implemented as follows:

                   1.      Rent increases. If the tenant’s rent increases because of an interim
                           adjustment, the owner must give the tenant 30 days advance notice of the
                           increase. The effective date of the increase will be the first of the month
                           commencing after the end of the 30-day period.

HUD Multifamily Occupancy Handbook                 7-27                                              8/13
Chapter 7: Recertification, Unit Transfers,
and Gross Rent Changes

2.       Rent decreases. If the tenant’s rent will decrease, the change in rent is
                           effective on the first day of the month after the date of action that caused
                           the interim certification, *e.g., first of the month after the date of loss of
                           employment.* A 30-day notice is not required for rent decreases.

         D.       If the tenant does not comply with the interim reporting requirements, and the
                  owner discovers the tenant has failed to report changes as required in paragraph
                  7-10, the owner initiates an interim recertification and implements rent changes
                  as follows:

                  1.       Rent increases. Owners must implement any resulting rent increase
                           retroactive to the first of the month following the date that the action
                           occurred.

                  2.       Rent decreases. Any resulting rent decrease must be implemented
                           effective the first rent period following completion of the recertification.