HUD HCV Guidebook § 10

Notification to Owner and Family
After receiving the family’s request for tenancy approval and determining whether assisted tenancy may be
approved based on the requirements listed within this chapter, including the unit meeting the HQS (see
Section 9.3 of this chapter)82, the PHA must83 promptly notify the family and owner of whether the assisted
tenancy is approved. If the PHA approves the tenancy, the family and the owner enter into a lease, the PHA
prepares the HAP contract, and the owner and the PHA execute the HAP contract (see the HAP Contracts
chapter). For units constructed prior to January 1, 1978, where a child under age 6 will be residing, if any
deteriorated paint surfaces are identified by the PHA‘s trained inspector, the owner must stabilize each such
surface before the family occupies the unit (see Section 9.3 of this chapter for details and exceptions).
In addition, the PHA must provide the applicant for HCV assistance with the Notice of Occupancy Rights under
VAWA and the Certification Form at the time the applicant is provided assistance or admission to the program.
For the HCV program, this term refers to the date that the HAP contract is executed, though the PHA may
provide the notice earlier.

Lease
As the tenant is bound by the terms of the lease and may enforce the terms of the lease against the owner,
the tenant must84 have legal capacity to enter into a lease under State or local law.
The tenant and the owner must85 enter and execute a written lease for the unit. The lease must86 be in the
standard form the owner uses in the locality or the premises for rental to unassisted tenants. The HAP
contract prescribed by HUD contains the owner’s certification that, if the owner uses a standard lease form for
rental to unassisted tenants, that lease form is used for the assisted unit as well. If the owner does not use a
standard form of lease to unassisted tenants, another form of lease may be used.
The lease must87 include the following information:
     •   Names of the owner and tenant;
     •   Unit address;
     •   The unit rented (address, apartment number, and any other information needed to identify the
         contract unit);
     •   Term of the lease, including initial term and any provision for renewal;
     •   Amount of monthly rent to owner; and
     •   Specification of what utilities and appliances are to be supplied by the owner and what utilities and
         appliances are to be supplied by the family.

82
   24 CFR 5.703(a); exceptions may apply if the PHA uses the initial inspection’s alternative inspection option (24
CFR 5.703(g), 24 CFR 982.406) or the initial inspection’s no life-threatening deficiencies option, 24 CFR
982.405(j).
83
   24 CFR 982.305(d)
84
   24 CFR 982.308(a)
85
   24 CFR 982.308(b)(1)
86
   24 CFR 982.308(b)(2)
87
   24 CFR 982.308(d)

The HAP Contract must88 include verbatim the HUD-prescribed tenancy addendum. The tenancy addendum
(Form HUD-52641-A or its translated version) can also be found in Part C of Form HUD-52641, HAP Contract
for the Housing Choice Voucher Program. The tenancy addendum sets forth the tenancy requirements for the
program. The tenant has the right to enforce the tenancy addendum against the owner. The terms of the
tenancy addendum prevail over any conflicting provisions of the lease.
For a unit constructed before 1978,89 the lease must90 include an attachment (or language inserted in the
lease itself),91 which includes a Lead Warning Statement92 and confirms that the owner has complied with all
notification requirements, including the owner:
     •   Disclosing the presence of known lead-based paint and/or lead-based paint hazards in the housing or
         indicating no knowledge of the presence of lead-based paint and/or lead-based paint hazards;
     •   Disclosing any additional information available concerning known lead-based paint and/or lead-based
         paint hazards, such as the basis for the determination that lead-based paint and/or lead-based paint
         hazards exist in the housing, the location of the lead-based paint and/or lead-based paint hazards,
         and the condition of the painted surfaces; and
     •   Including a list of any records or reports available to the owner pertaining to lead-based paint and/or
         lead-based paint hazards in the housing that have been provided to the family.93 If no such records or
         reports are available, the owner shall so indicate.
The family’s affirming receiving from the owner the Protect Your Family lead hazard information pamphlet (see
Section 2.5.1 of this chapter) and the information above.
The Lead Disclosure Rule attachment is to be provided in the same language used in the rest of the lease.
The owner and any agents on the transaction for the owner, as well as the family member signing the lease,
must sign and date the attachment.
The PHA may choose to review the lease to determine compliance with State and local laws and may deny the
request for tenancy if the PHA determines noncompliance. If the owner does not use a standard lease form,
PHAs may encourage the owner to obtain a standard form from a local licensed real estate agent or other
reliable source. The use of a model lease provided by the PHA should be limited to those rare cases where
the owner cannot locate an acceptable standard form. If a PHA-provided model lease is used, the model
lease should not refer specifically to the PHA or the HCV program.

88
   24 CFR 982.308(f)
89
   Exceptions apply if the unit is a 0-bedroom unit and no child under age 6 will reside in the unit, or if a
certified lead-based paint inspector has found the unit to be lead-based paint free.
90
   24 CFR 35.88, 24 CFR 35.92(b)
91
   A sample attachment is provided in English at
https://www.epa.gov/sites/default/files/documents/lesr_eng.pdf, and in Spanish at
https://www.hud.gov/sites/dfiles/HH/documents/Ejemplo_de_formulario_de_divulgaci%C3%B3n_del_arrendado
r-508.pdf
92
   24 CFR 35.92(b)(1)
93
   If the owner provides a list of records or reports, and not the documents themselves as well, the owner must
provide the family with the opportunity to review the complete documents in a central location on the premises,
if feasible, and the opportunity to receive copies of any documents not provided, upon request, and at no cost to
the family.

Before preparing the HAP contract, the PHA should review the lease to ensure that the following information is
consistent with the request for tenancy approval:
     •   Family composition;
     •   Unit address (address, apartment number, and any other information needed to identify the contract
         unit);
     •   Effective date of the lease;
     •   Initial term and renewal terms of the lease;
     •   Initial rent to owner; and
     •   Information regarding what utilities and appliances are to be supplied by the owner and what utilities
         and appliances are to be supplied the family.
The PHA may approve the tenancy and execute a HAP contract even if there is less than one year remaining
from the beginning of the lease term to the end of the last expiring funding increment under the PHA’s
consolidated ACC.
It is important that the family and owner understand the terms of the lease, tenancy addendum, and HAP
contract. Ideally, PHAs schedule a joint meeting with the family and owner to review these documents. In
addition to reviewing the specific terms of the lease and contract, the PHA can use this meeting to clarify
owner requirements for participating in the program, reinforce tenant requirements for participating in the
program, clarify points of contact within the PHA, and answer any questions or respond to any comments or
concerns.

Changes in Lease or Rent
If the tenant and the owner agree to any changes in the lease, the changes must94 be in writing and the owner
must95 immediately give the PHA a copy of the changes. The lease, including any changes, must96 be in
accordance with the requirements of the above section.
In the following cases, tenant-based assistance shall not be continued unless the PHA has approved a new
tenancy in accordance with program requirements and has executed a new HAP contract with the owner:
     •   Requirements governing tenant or owner responsibilities for utilities or appliances;
     •   If there are any changes in lease provisions governing the term of the lease; or
     •   If the family moves to a new unit, even if the unit is in the same building or complex.
PHA approval of the tenancy, and execution of a new HAP contract, are not required for other changes in the
lease.
The owner must97 also notify the PHA of any changes in the amount of the rent to owner at least 60 days
before any such changes go into effect, and any such changes shall be subject to rent reasonableness
requirements.

94
   24 CFR 982.308(g)
95
   24 CFR 982.308(g)
96
   24 CFR 982.308(g)
97
   24 CFR 982.308(g)(4)

Term of Assisted Tenancy
The initial lease term must be for at least one year, except that the PHA may approve a shorter term if the PHA
determines that doing so would improve housing opportunities for the tenant and is the prevailing local
market practice.98 If the PHA allows this exception, it needs to be stated in the PHA’s policies.
During the initial lease term, the owner may not raise the rent to owner. The lease must99 include any
provisions for its renewal.
The HAP contract term runs concurrently with the lease term. If the lease terminates, the HAP contract
terminates. Whenever the owner elects to execute a new lease, a new HAP contract is also required.
The term of the new lease or contract for a new unit may begin in the same month in which the participant
moves out of his/her previous assisted unit. This is not considered a duplicative subsidy.