HUD HCV Guidebook § 5.3

The tenancy addendum sets forth the tenancy requirements for the program and the composition of
the household, as approved by the PHA. As the assisted lease includes the tenancy addendum,
portions of the language from Part B of the HAP Contract are restated in Part C of the HAP Contract:
Tenancy Addendum. In addition, language exists to protect the tenant’s rights of tenancy under the
program and to state allowable owner actions under the program.

Part C of HAP Contract: Tenancy Addendum
                                      Contents by Section Number
                1. Section 8 Voucher Program           10. Eviction by Court
                2. Lease                                   Action
                3. Use of Contract Unit                11. Owner Notice of
                4. Rent to Owner                           Grounds
                5. Family Payment to Owner             12. Lease: Relation to HAP Contract
                6. Other Fees and Charges              13. PHA Termination of Assistance
                7. Maintenance, Utilities, and Other   14. Family Move Out
                   Services                            15. Security Deposit
                8. Termination of Tenancy by           16. Prohibition of Discrimination
                   Owner                               17. Conflict with Other Provisions of
                9. Protections for Victims of              Lease
                   Domestic Violence, Dating           18. Changes in Lease or Rent
                   Violence, Sexual Assault, or        19. Notices
                   Stalking                            20. Definitions

1. Section 8 Voucher Program. The tenancy addendum states that the owner is leasing the contract

47 Form HUD-52641, Page 8, Part B Section 16
48 Form HUD-52641, Page 8, Part B Section 17

unit to the tenant for occupancy with assistance for a tenancy under the HCV program. The
    owner has entered into a HAP contract with the PHA under which the PHA will make housing
    assistance payments to the owner to assist the tenant in leasing the unit from the owner.

2. Lease. The owner has provided the PHA with a copy of the lease and certifies that the terms of
   the lease are in accordance with the HAP contract and that the lease includes the tenancy
   addendum.

    The tenant has the right to enforce the tenancy addendum against the owner. The terms of the
    tenancy addendum prevail over any other provisions of the lease.

3. Use of Contract Unit. During the lease term, the family will reside in the contract unit with
   assistance under the voucher program. The household composition must49 be approved by the
   PHA; therefore, the family must promptly inform the PHA of the birth, adoption or court-awarded
   custody of a child. Other persons may not be added without prior written approval of both the
   owner and the PHA.

    The unit must50 be the family’s only residence. Household members may engage in legal profit-
    making activities incidental to use of the unit as a residence. The tenant may not sublease, let,
    or transfer the unit, or assign the lease.

4. Rent to Owner. The initial rent to owner may not exceed the amount approved by the PHA.
   Changes in rent to owner are determined by the lease provisions, but the owner may not raise the
   rent during the initial lease term.

    During the term of the lease, the rent to owner may not exceed the amount determined as
    reasonable by the PHA. The rent may also not exceed rent charged by the owner for comparable
    unassisted units in the premises.

5. Family Payment to Owner. The family is responsible for paying the portion of the rent to owner
   that is not covered by the PHA housing assistance payment. The housing assistance payment
   amount is determined by the PHA in accordance with program requirements and shall be credited
   against the monthly rent to owner for the contract unit.

    The family is not responsible for paying the portion of rent to owner covered by the PHA housing
    assistance payment under the HAP contract. PHA failure to pay the housing assistance payment
    to the owner is not a violation of the lease and the owner may not terminate tenancy for
    nonpayment of the PHA housing assistance payment.

49 Form HUD-52641, Page 9, Part C Section 3b
50 Form HUD-52641, Page 9, Part C Section 3d

The owner may not charge or accept from any source any payment for rent of the unit in addition
    to the rent to owner. Rent to owner includes all housing services, maintenance, utilities and
    appliances to be provided for and paid by the owner in accordance with the lease.

    The owner must51 immediately return any excess rent payment made by the tenant to the tenant.

6. Other Fees and Charges. Rent to owner does not include costs of meals, supportive services, or
   furniture which may be provided by the owner. The owner may not require the tenant to pay such
   charges. Nonpayment of such charges is not grounds for termination of tenancy.

    The owner may not charge the tenant extra amounts for items customarily included in rent to
    owner in the locality or provided at no additional cost to unsubsidized tenants in the premises.

7. Maintenance, Utilities, and Other Services. The owner must52 maintain the unit and premises in
   accordance with HQS. Maintenance and replacement must53 be in accordance with the owner’s
   standard practice for the building. The owner must provide all housing services as stated in the
   lease and must54 provide all utilities needed to comply with HQS.

    The owner is not responsible for a breach of HQS caused by the tenant’s failure to pay for utilities
    required to be paid for by the tenant, or by the tenant’s failure to provide and maintain
    appliances required to be provided by the tenant. The owner is also not responsible for a breach
    of HQS because of damages beyond normal wear and tear caused by any household member or
    guest.

8. Termination of Tenancy by Owner. The owner may only terminate the tenancy in accordance with
   the lease and HUD requirements. The following details the right of the owner to terminate
   tenancy:
       a. During any term of the lease (the initial term of the lease or any extension term), the
          owner may only terminate the tenancy because of serious and repeated lease violations,
          violations of federal, state, or local law that impose obligations on the tenant in
          connection with occupancy or use of the unit and its premises, criminal activity or alcohol
          abuse (see below) or other good cause (defined below).

            In the case of criminal activity, the owner may terminate tenancy during the term of the
            lease if any member of the household, a guest, or another person under the resident’s
            control commits criminal activity that threatens the health, safety of, or the right to
            peaceful enjoyment of the premises by other residents, or of their residences by persons
            residing in the immediate vicinity of the premises. The owner may terminate tenancy

51 Form HUD-52641, Page 9, Part C Section 5f
52 Form HUD-52641, Page 9, Part C Section 7a(1)
53 Form HUD-52641, Page 9, Part C Section 7a(2)
54 Form HUD-52641, Page 9, Part C Section 7b

during any term of the lease if any member of the household, a guest, or another person
            under the resident’s control commits any violent or drug related criminal activity on or
            near the premises.

            The owner’s ability to terminate tenancy for criminal activity extends to those households
            which contain a household member fleeing to avoid prosecution, or custody or
            confinement after conviction, for a crime, or attempt to commit a crime, that is a felony
            under the laws of the place from which the individual is fleeing (or, if fleeing from the
            State of New Jersey, is a high misdemeanor). It also extends to those households which
            contain a household member who is violating a condition of probation or parole under
            Federal or state law. If the owner determines the household member has committed the
            criminal activity, the owner may terminate the tenancy regardless of whether the
            household member has been arrested or convicted for the activity.

            In the case of alcohol abuse, the owner may terminate the tenancy during the term of the
            lease if any household member has engaged in alcohol abuse that threatens the health,
            safety, or right to peaceful enjoyment of the premises by other residents.

        b. During the initial lease term, the owner may terminate tenancy for ‘other good cause.’
           During the initial lease term, other good cause must55 be something the family did or
           something the family failed to do. During the initial lease term or any extension, other
           good cause may include disturbing neighbors, destruction of property, or living or
           housekeeping habits that cause damage to the unit or premises.

        c. After the initial lease term, other good cause may also include the tenant’s failure to
           accept the owner’s offer of a new or revised lease, the owner’s desire to use the unit for
           personal or family use or for a purpose other than use as a residential rental unit, or
           another business or economic reason to terminate tenancy, including sale of property,
           unit renovation, or the owner’s desire to increase the rent.

            ‘Good cause’ examples as included in the Tenancy Addendum do not preempt any state or
            local laws to the contrary.

        d. In the case of foreclosure during the term of the lease, the owner that is the immediate
           successor in interest as a result of the foreclosure may not require the tenant to vacate
           the property prior to sale, as it does not constitute other good cause. However, the owner
           may terminate tenancy on the effective date of transfer if the owner will occupy the unit as
           a primary residence and has provided the tenant with a notice to vacate at least 90 days
           before the effective date of such notice. Any state or local law providing for longer time

55 Form HUD-52641, Page 10, Part C Section 8d(1)

periods or additional tenant protections are not affected by this requirement56.

9. Protections for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking The
   tenancy addendum adds language which protects an incident(s) of actual or threatened domestic
   violence, dating violence, sexual assault, or stalking from being construed as serious or repeated
   violations of the lease or other “good cause’ for termination of the assistance, tenancy, or
   occupancy rights of such a victim. Criminal activity directly relating to abuse, engaged in by a
   member of a tenant’s household or any guest or other person under the tenant’s control, shall
   not be cause for termination of assistance, tenancy, or occupancy rights if the tenant or an
   immediate member of the tenant’s family is the victim or threatened victim of domestic violence,
   dating violence, sexual assault, or stalking.

    Subject to any lease termination requirements or procedures prescribed by federal, state, or local
    law, if any member of the tenant’s household engages in criminal activity directly relating to
    domestic violence, dating violence, sexual assault, or stalking, the landlord may “bifurcate” the
    lease, or remove that household member from the Lease, without regard to whether that
    household member is a signatory to the lease, in order to evict, remove, or terminate the
    occupancy rights of that household member without evicting, removing, or otherwise penalizing
    the victim of the criminal activity who is also a tenant or lawful occupant. A tenant who is a victim
    of domestic violence, dating violence, sexual assault, or stalking may request an emergency
    transfer in accordance with the PHA’s emergency transfer plan. The tenancy addendum details
    additional VAWA protections.

10. Eviction By Court Action. The owner may only evict the tenant by a court action.

11. Owner Notice of Grounds. At or before the beginning of the court action to evict, the owner
    must57 give the tenant a notice specifying the grounds for termination of tenancy. This notice
    may be included in or combined with the owner eviction notice. At the same time the owner
    notifies the tenant, the owner must give the PHA a copy of any owner eviction notice. Eviction
    notice means a notice to vacate, or a complaint or other initial pleading used to begin an eviction
    action under state or local law.

12. Lease: Relation to HAP Contract. If the HAP contract terminates, the lease automatically
    terminates.

13. PHA Termination of Assistance. The PHA may terminate program assistance for the family in
    accordance with HUD requirements. If the PHA terminates program assistance for the family, the
    lease automatically terminates.

56 Form HUD-52641, Page 10, Part C Section 8d(5)
57 Form HUD-52641, Page 12, Part C Section 11

14. Family Move Out. The tenant must58 notify the PHA and the owner before moving out of the unit.

15. Security Deposit. The owner may collect a security deposit from the tenant, subject to state and
    local law. Any PHA restriction in place prohibiting the owner from collecting a security deposit in
    excess of private market practice, or in excess of amounts charged by the owner to unrestricted
    tenants must59 be specified in the HAP contract.

    When a family moves out of the contract unit, the owner, subject to state and local law, may use
    the security deposit plus any interest earned on the deposit as reimbursement for any unpaid
    rent, damages to the unit, or other amounts the tenant owes under the lease. The owner must60
    give the tenant a list of all items charged against the security deposit, including the amount for
    each item. The owner must61 promptly refund the full amount of any unused balance to the
    tenant. If the security deposit is not sufficient to cover amounts owed by the tenant under the
    lease, the owner may collect the balance from the tenant.

16. Prohibition of Discrimination. The owner must62 not discriminate against any person because of
    race, color, religion, sex, national origin, age, familial status or disability in connection with the
    lease. Eligibility for HUD’s programs must be made without regard to actual or perceived sexual
    orientation, gender identity, or marital status.

17. Conflict with Other Provisions of Lease. The terms of the tenancy addendum are prescribed by
    HUD in accordance with federal law and regulation as a condition for federal assistance to the
    tenant and the tenant’s family under the HCV program. In case of any conflict between the
    tenancy addendum and any lease provisions or other agreement between the owner and the
    tenant, the requirements of the HUD-required tenancy addendum prevail.

18. Changes in Lease or Rent. The tenant and the owner may not make any changes to the tenancy
    addendum. If the tenant and owner agree to any other changes in the lease, those changes
    must63 be in writing and the owner must immediately give a copy of the changes to the PHA.

    In the following cases, tenant-based assistance will be discontinued unless the PHA has
    approved a new tenancy in accordance with program requirements and has executed a new HAP
    contract with the owner:
         If there are changes in lease requirements governing tenant or owner responsibilities for
            utilities or appliances;
         If there are changes in lease provisions governing the term of the lease;

58 Form HUD-52641, Page 12, Part C Section 14
59 Form HUD-52641, Page 11, Part C Section 15
60 Form HUD-52641, Page 12, Part C Section 15
61 Form HUD-52641, Page 12, Part C Section 15
62 Form HUD-52641, Page 12, Part C Section 16
63 Form HUD-52641, Page 13, Part C Section 18

   If the family moves to a new unit, even if in the same building or complex.

    PHA approval of the tenancy and execution of a new HAP contract are not required for agreed
    changes in the lease, other than as specified above.

    The owner is required to notify the PHA of any changes in the rent to owner amount at least 60
    days before any such rent change goes into effect. The amount of the rent to owner may not
    exceed the reasonable rent for the unit as most recently determined or re-determined by the PHA.

19. Notices. All notices under the lease between the tenant and the owner must64 be in writing.
20. Definitions.
    Contract unit. The housing unit rented by the tenant with assistance under the program.
    Family. The persons who may reside in the unit with assistance under the program.
    HAP contract. The housing assistance payments contract between the PHA and the owner. The
    PHA pays housing assistance payments to the owner in accordance with the HAP contract.
    Household. The persons who may reside in the contract unit. The household consists of the family
    and any PHA-approved live-in aide. (A live-in aide is a person who resides in the unit to provide
    necessary supportive services for a member of the family who is a person with disabilities.)
    Housing quality standards (HQS). The HUD minimum quality standards for housing assisted
    under the Section 8 tenant-based programs.
    HUD. The U.S. Department of Housing and Urban Development.
    HUD requirements. HUD requirements for the Section 8 program. HUD requirements are issued
    by HUD headquarters, as regulations, Federal Register notices or other binding program
    directives.
    Lease. The written agreement between the owner and the tenant for the lease of the contract
    unit to the tenant. The lease includes the tenancy addendum prescribed by HUD.
    PHA. Public Housing Agency.
    Premises. The building or complex in which the contract unit is located, including common
    areas and grounds.
    Program. The Section 8 housing choice voucher program.
    Rent to owner. The total monthly rent payable to the owner for the contract unit. The rent to
    owner is the sum of the portion of rent payable by the tenant plus the PHA housing assistance
    payment to the owner.
    Section 8. Section 8 of the United States Housing Act of 1937 (42 United States Code
    1437f).
    Tenant. The family member (or members) who leases the unit from the owner.

64 Form HUD-52641, Page 13, Part C Section 19

Voucher program. The Section 8 housing choice voucher program. Under this program, HUD
    provides funds to a PHA for rent subsidy on behalf of eligible families. The tenancy under the
    lease will be assisted with rent subsidy for a tenancy under the voucher program.