HUD Handbook 4350.3 § 7-17
Key Requirements (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
Operative Text
A. A gross rent change may occur due to a rent change only, a change in the utility
allowance only, or due to a change in both the rent and utility allowance.
B. Owners must comply with the tenant comment and posting procedures described
in the Code of Federal Regulations at 24 CFR 245.
C. Owners must submit approved gross-rent changes through their software
package to the Contract Administrator or to TRACS.
D. Owners must provide the tenant a new HUD-50059-A reflecting all changes in
rents, utility allowances, total tenant payment, tenant rent, and assistance
payments.
E. A copy of the HUD-50059-A reflecting any change in the tenant rent, utility
reimbursement, total tenant payment or assistance payment must be placed in
the tenant file.
F. Tenants need only sign and date the HUD-50059-A if the gross rent change
results in a change in the amount of rent the tenant is required to pay or in the
utility reimbursement the tenant will receive. Owners must sign and date the
HUD-50059-A.Under HUD Handbook 4350.3 REV-1 CHG-4 § 7-17, a gross rent change in HUD-assisted housing can stem from a rent adjustment, a utility allowance adjustment, or both simultaneously. When such a change occurs, owners are required to follow federal tenant-comment and posting procedures, submit the approved changes through official channels, and provide tenants with an updated HUD-50059-A form documenting all affected payment figures. Tenant signatures on the HUD-50059-A are only required when the change actually affects the amount the tenant pays or the utility reimbursement they receive, though owners must always sign and date the form.
Plain English — not legal advice.
Property owners and managers subject to HUD Handbook 4350.3 REV-1 CHG-4 § 7-17 generally ensure that any gross rent change—whether driven by rent, utility allowances, or both—is processed in full compliance with the tenant-comment and posting requirements found at 24 CFR 245. Compliant operators submit approved gross-rent changes through their designated software to the Contract Administrator or TRACS, and they issue each affected tenant a completed HUD-50059-A that reflects all updated figures, including total tenant payment, tenant rent, and assistance payments. A copy of that form is retained in the tenant's file, and the owner signs and dates every HUD-50059-A regardless of whether a tenant signature is also required.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under HUD Handbook 4350.3 REV-1 CHG-4 § 7-17, tenants in HUD-assisted housing have a right to receive an updated HUD-50059-A form whenever a gross rent change affects their rent, utility allowance, total tenant payment, or assistance payment. Federal regulations at 24 CFR 245, referenced in this provision, also establish tenant-comment and posting procedures that give residents an opportunity to respond before certain changes take effect. Tenants who believe these procedures were not followed may consider contacting the U.S. Department of Housing and Urban Development or a local tenant-rights organization to understand 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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