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Applying the Model Lease for Subsidized Programs to Individual Tenants

Paragraph 8: Security Deposits:

HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs · 2026 edition · updated 2026-07-29 · United States

P - Amount must be within HUD limitations specified in Chapter 6, Section 1 of this handbook. If the security deposit will be collected in installments, edit first sentence to specify amount and due dates of installments.

Q and R – If the tenant will receive interest, enter interest rate the tenant will receive and date interest will begin to accrue. If the tenant will not receive interest on his/her security deposit (i.e., deposits will not be invested or interest will be deposited in the project’s operating account), strike portion in brackets. HUD requirements regarding the amount and investment of security deposits as well as the disposition of any interest earned on invested deposits are explained in Chapter 6, Section 2 of this handbook.

S - Enter 30 days or any smaller number required by State law.

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Contents — HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs

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