HUD Handbook 4350.3 § 7-18
Submission and Approval Process (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
Operative Text
A. Owners must submit requests for rent increases to HUD or the Contract
Administrator following the submission requirements described in the following:
1. HUD Handbook 4350.1, Multifamily Asset Management and Project
Servicing, for budget-based rent increases, annual adjustment factor
increases, and utility allowance changes; or
2. The Section 8 Contract Renewal Policy Guide for rent adjustments, if the
Section 8 contract has been renewed pursuant to Multifamily Assisted
Housing Reform and Affordability Act (MAHRA).
B. Owners must implement approved rent changes on the effective date approved
by HUD or the Contract Administrator. In some cases, this date may reflect a
retroactive approval, and the owner must change the tenant certification and
adjust the monthly subsidy voucher. Revised data must be transmitted to the
Contract Administrator or to TRACS to reflect the retroactive changes.
C. Owners must make changes to the Utility Allowances effective the same date as
the rent effective date for the annual analysis submitted at the time of the rent
adjustment. In cases where the Utility Analysis is completed mid-year due to a
10% or greater rate increase, the effective date of the Utility Allowance must be
the first day of the first month following approval by HUD or the Contract
Administrator.
D. Owners must prepare tenant certifications reflecting gross rent changes using the
on-site software and submit the changes to their Contract Administrator or
TRACS for each tenant in the project/contract.HUD Handbook 4350.3 REV-1 CHG-4 § 7-18 establishes the process by which owners of HUD-assisted multifamily properties must request, implement, and document rent increases and utility allowance changes. Approved rent changes must be put into effect on the date HUD or the Contract Administrator specifies, which may sometimes be retroactive, requiring updates to tenant certifications and subsidy vouchers. Utility allowance adjustments are tied to specific effective dates depending on whether they arise from an annual review or a mid-year rate spike of 10% or more.
Plain English — not legal advice.
Under HUD Handbook 4350.3 REV-1 CHG-4 § 7-18, compliant operators submit rent increase requests to HUD or the Contract Administrator using the procedures outlined in HUD Handbook 4350.1 or the Section 8 Contract Renewal Policy Guide, depending on the type of adjustment and contract status. Once an approval is received, operators implement the change on the exact effective date specified, update tenant certifications, adjust monthly subsidy vouchers, and transmit revised data to the Contract Administrator or TRACS—including when the approval is retroactive. Utility allowance changes are coordinated with the rent effective date for annual analyses, or set to the first day of the month following approval for mid-year adjustments triggered by a rate increase of 10% or greater.
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 § 7-18 governs how and when rent and utility allowance changes take effect in HUD-assisted multifamily housing, meaning tenants in these properties should receive updated certifications whenever a gross rent change is approved. If a retroactive approval is issued, the owner is required to adjust tenant certifications and subsidy vouchers to reflect the corrected figures back to the applicable date. Tenants who believe their certification was not properly updated or that a rent change was applied incorrectly may consider contacting their local HUD office, raising the issue with the Contract Administrator, or reaching out to a tenant-rights organization for general guidance.
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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