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Document Package for Applicant's/Tenant's Consent to the Release Of Information

6-15 Collection of the Security Deposit

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

  • A. It is recommended the owner collect a security deposit at the time of the initial lease execution.

  • B. Security deposits provide owners with some financial protection when a tenant moves out of the unit and fails to fulfill his/her obligations under the lease. Additionally, many programs require that owners place security deposits in interest-bearing accounts and allocate the interest to the tenant. This requirement varies by programs and depends to a certain extent on state and local laws.

  • C. The owner must collect a security deposit at the time of the initial lease execution for the following properties:

HUD Occupancy Handbook Chapter 6: Lease Requirements and Leasing Activities

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Section 2: Security Deposits

4350.3 REV-1

  1. Section 8 New Construction with an AHAP executed on or after November 5, 1979;

  2. Section 8 Substantial Rehabilitation with an AHAP executed on or after February 20, 1980;

  3. Section 8 State Agency with an AHAP executed on or after February 29, 1980;

  4. Section 202/8;

  5. Section 202 PAC;

  6. Section 202 PRAC; and

  7. Section 811 PRAC.

  • D. The amount of the security deposit established at move-in does not change when a tenant’s rent changes.

  • E. The amount of the security deposit to be collected is dependent upon:

    1. The type of housing program;

    2. The date the AHAP or HAP contract for the unit was signed; and

    3. The amount of the total tenant payment or tenant rent.

      • Figure 6-7 outlines the amount of the security deposit the owner may collect for each of the different programs.

  • F. The owner must comply with any applicable state and local laws governing the security deposit.

  • G. The tenant is expected to pay the security deposit from his/her own resources, and/or other public or private sources.

  • H. The owner may collect the security deposit on an installment basis.

  • I. The security deposit is refundable. (See paragraph 6-18 for more information on refunding a security deposit.)

  • J. An applicant may be rejected if he/she does not have sufficient funds to pay the deposit.

HUD Occupancy Handbook Chapter 6: Lease Requirements and Leasing Activities

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Section 2: Security Deposits

4350.3 REV-1

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▸ Contents — HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs
HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs
  1. HUD Handbook 4350.3: Occupancy Requirements of Subsidized Mult…
  2. Exhibit 3-12: Section 8, RAP, and Rent Supplement Programs – S…
  3. Exhibit 3-13: Section 236 Without Additional Assistance – Spec…
  4. Exhibit 3-14: Section 236 With Benefit of Additional Assistanc…
  5. ▸ Document Package for Applicant's/Tenant's Consent to the Relea…
    Overview
    1. What Verification Involves
    2. Customer Protections
    3. Consequences for Not Signing the Consent Forms
    4. Programs Covered by this Fact Sheet
    5. Notice and Consent for the Release of Information
    6. Rent Supplement
    7. Section 236
    8. Agencies To Provide Information
    9. Penalties for Misusing this Consent:
    10. Purpose of Requiring Consent to the Release of Information
    11. Instructions to Applicants and Tenants
    12. Authority for Requiring Applicant's/Tenant's Consent to the Re…
    13. Uses of Information to be Obtained
    14. Who Must Sign the Consent Form
    15. Failure to Sign the Consent Form
    16. Conditions
    17. Penalties for Misusing this Consent:
    18. Section 8, RAP, PRAC, PAC
    19. Rent Supplement
    20. Section 236—No Utility Allowance
    21. Section 221(d)(3) BMIR (Below Market Interest Rate)
    22. CHAPTER 6. LEASE REQUIREMENTS AND LEASING ACTIVITIES
    23. 6-1 Introduction
    24. 6-2 Key Terms
    25. Section 1: Leases and Lease Attachments
    26. 6-3 Key Regulations
    27. Pet Regulations
    28. Amending the Lease
    29. 6-4 Leases, Lease Amendments and Lease Attachments – General
    30. 6-5 Lease Requirements
    31. Figure 6-3: HUD Issued Lease Addendum
    32. 6-6 Lease Term
    33. B. Initial Term
    34. Renewal Terms
    35. 6-7 Attachments to the Lease
    36. 6-8 Lead-Based Paint Disclosure Form
    37. Figure 6-5 : Disclosure Rule Exemptions
    38. B. Overview
    39. Disclosure Rule Requirements
    40. D. Record-Keeping Requirements
    41. A. Overview
    42. Example – Possible Topics for House Rules
    43. Figure 6-6 : Reasonable versus Unreasonable House Rules
    44. A. Applicability
    45. B. Overview
    46. C. Key Requirements
    47. D. Lease Provisions for Pets
    48. Remember!
    49. E. Procedures When Pet Rules Are Violated
    50. 6-11 Amending the Lease for Rent Changes
    51. Key Requirements
    52. 6-12 Modifying the Lease
    53. Example – Approving Lease Changes
    54. Section 2: Security Deposits
    55. 6-13 Key Regulations
    56. 6-14 Applicability
    57. 6-15 Collection of the Security Deposit
    58. 6-16 Security Deposits for Tenants Transferring to Another Unit
    59. Figure 6-7 : Amount of Security Deposit to Collect from Tenant
    60. 6-17 Interest Earned on the Security Deposit
    61. 6-18 Refunding and Use of the Security Deposit
    62. Section 3: Charges in Addition to Rent
    63. 6-19 Key Regulations
    64. 6-20 Charges Prior to Occupancy
    65. 6-21 Charges at Initial Occupancy
    66. Reminder!
    67. 6-22 Meal Program
    68. 6-23 Charges for Late Payment of Rent
    69. 6-24 Pet Deposits
    70. Figure 6-8 : Collection of Pet Deposits
    71. A. When Owners May Require Other Charges
    72. Checks Returned for Insufficient Funds
    73. Special Management Services
    74. Court Filing, Attorney, and Sheriff Fees
    75. Section 4: The Leasing Process
    76. 6-26 Key Regulations
    77. 6-27 Briefing with New Tenants
    78. Briefing Topics
    79. 6-28 Form of Payment
    80. 6-29 Unit Inspections
    81. Key Requirements
    82. Example – Wear-and-Tear Versus Damage
    83. 6-30 Documents to Be Provided to Tenants
    84. Figure 6-9 : Summary of Documents for Tenants
    85. Chapter 6 Exhibits
    86. Exhibit 6-1: Required State Agency Lease Provisions
    87. Exhibit 6-2: Required RHS 515 Lease Provisions
    88. Lead Warning Statement
    89. Lessor's Disclosure (initial)
    90. Lessee's Acknowledgment (initial)
    91. Agent's Acknowledgment (initial)
    92. Certification of Accuracy
    93. Exhibit 6-4: Mandatory and Discretionary Pet Rules
    94. Exhibit 6-5: How to Develop Pet Rules [24 CFR 5.353]
    95. Tenant Consultation
    96. Exhibit 6-6: Examples of Tenant Briefing Topics
    97. Signatures
    98. Terms of Lease
    99. Annual/Interim Recertifications
    100. Termination of Tenancy
    101. Termination of Assistance
    102. Rent
    103. Security Deposit
    104. Rent or other payment
    105. Security Deposit
    106. Lease Attachments
    107. Maintenance/Damages
    108. Maintenance
    109. Penalties for Fraud
    110. General Rules
    111. CHAPTER 7. RECERTIFICATION, UNIT TRANSFERS, AND GROSS RENT CHA…
    112. 7-1 Introduction
    113. 7-2 Key Terms
    114. Section 1: Annual Recertification
    115. 7-3 Key Regulations
    116. Key Requirements
    117. Figure 7-2: Comparison of Live-in Aid and Adult Child in 202/8…
    118. 7-5 Timing of Annual Recertifications
    119. C. HUD Approval of Alternative Recertification Anniversary Dates
    120. New Tenants
    121. 7-6 Overview of Annual Recertification Procedures
    122. 7-7 Notices to Tenants
    123. Description of Required Notices
    124. Figure 7-3: Recertification Steps
    125. Example – Initial Recertification Notice Procedures
    126. 2. First Reminder Notice.
    127. 7-8 Effective Dates of Changes in Assistance Payment, Total Te…
    128. Timely Completion of Recertification Process
    129. Example – Timely Recertification of a Tenant
    130. Example – Timely Tenant Response, But Delayed Verification Pro…
    131. Example – Owner or Third-Party Causes Delays in Recertificatio…
    132. 2. Delays in processing due to late tenant response.
    133. Example – Tenant Delays Recertification Process
    134. Example – Tenant Out of Compliance
    135. Example – Tenant Out of Compliance in 202 or 811 PRAC Project
    136. Example – Tenant Out of Compliance and Recertification Complet…
    137. Section 2: Interim Recertification
    138. 7-9 Key Regulations
    139. 7-10 Key Requirements
    140. 7-11 Owner Responsibilities
    141. Example – Delaying an Interim Recertification
    142. 7-12 Processing Interim Recertifications
    143. 7-13 Effective Date of Interim Recertifications
    144. Section 3: Unit Transfers
    145. 7-14 Key Regulations
    146. 7-15 Key Requirements
    147. 7-16 Unit Transfers Due to a Change in Family Composition
    148. Written Policies
    149. Transfer Fees in Section 236 and BMIR Cooperatives
    150. Section 4: Gross Rent Changes
    151. 7-17 Key Requirements
    152. 7-18 Submission and Approval Process
    153. Chapter 7 Exhibits
    154. Exhibit 7-1: Annual Recertification Initial Notice
  6. Exhibit 7-2: Sample Annual Recertification First Reminder Notice
  7. Exhibit 7-4: Sample Annual Recertification Third Reminder Noti…
  8. SAMPLE TENANT CONSENT TO DISCLOSE EIV INCOME INFORMATION
  9. Applying the Model Lease for Subsidized Programs to Individual…
  10. Applying the Model Leases for Section 202 PRAC and Section 811…
  11. Sample Move-In/Move-Out Inspection Form
  12. Memorandum February 5, 2002: Fact Sheets for Project-Based Ass…

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