4350.3
REV-1
Appendix
4-A
OMB Approval 2502-0204
Exp xx/xx/xxxx
______________________________________________________________________________________
Appendix 4-A
Model Lease for Subsidized Programs (Family Model Lease)
MODEL LEASE FOR SUBSIDIZED PROGRAMS
1. Parties and The parties to this Agreement are ____(A)____
Dwelling ____________________, referred to as the
Unit: Landlord, and ______________________________(B)____________________________,
referred to as the Tenant. The Landlord leases
to the Tenant(S) unit number __(C)____, located
at
__________________________(D)_______________________________________
in the project known as______(E)_______________________________.
2. Length of Time The initial term of this Agreement shall begin
(Term): on ____(F)_____ and end on ____(G)_____. After
the initial term ends, the Agreement will
continue for successive terms of one _______(H)____ each unless
automatically terminated as permitted by paragraph 23 of this
Agreement.
3. Rent: The Tenant agrees to pay $____(I)__ for the
partial month ending on _____(J)______. After
that, Tenant agrees to pay a rent of $_(K)_ per
month. This amount is due on the ____(L)____ day of the month at
____________________(M)___________________________________________
__________________________________________________________________.
The Tenant understands that this monthly rent is less than the
market (unsubsidized) rent due on this unit. This lower rent is
available either because the mortgage on this project is subsidized
by the Department of Housing and Urban Development (HUD) and/or
because HUD makes monthly payments to the Landlord on behalf of the
Tenant. The amount, if any, that HUD makes available monthly on
behalf of the Tenant is called the tenant assistance payment and is
shown on the "Assistance Payment" line of the **Owner’s
Certification of Compliance with HUD’s Tenant Eligibility and Rent
Procedures** form which is Attachment No. 1 to this Agreement.
4. Changes in the The Tenant agrees that the amount of rent the
Tenant's Share Tenant pays and/or the amount of assistance that
of the Rent: HUD pays on behalf of the Tenant may be changed
during the term of this Agreement if:
a. HUD or the Contract Administrator (such as a Public Housing
Agency) determines, in accordance with HUD procedures, that an
increase in rents is needed;
b. HUD or the Contract Administrator changes any allowance for
utilities or services considered in computing the Tenant's
share of the rent;
c. the income, the number of persons in the Tenant's household or
other factors considered in calculating the Tenant's rent
change and HUD procedures provide that the Tenant's rent or
assistance payment be adjusted to reflect the change;
d. changes in the Tenant's rent or assistance payment are required
by HUD's recertification or subsidy termination procedures;
e. HUD's procedures for computing the Tenant's assistance payment
or rent change; or
f. the Tenant fails to provide information on his/her income,
family composition or other factors as required by the
Landlord.
The Landlord agrees to implement changes in the Tenant's rent or
tenant assistance payment only in accordance with the time frames
and administrative procedures set forth in HUD's handbooks,
instructions and regulations related to administration of
multifamily subsidy programs. The Landlord agrees to give the
Tenant at least 30 days advance written notice of any increase in
the Tenant's rent except as noted in paragraphs 11, 15 or 17. The
Notice will state the new amount the Tenant is required to pay, the
date the new amount is effective, and the reasons for the change in
rent. The Notice will also advise the Tenant that he/she may meet
with the Landlord to discuss the rent change.
5. Charges for Late If the Tenant does not pay the full amount of
Payments and the rent shown in paragraph 3 by the end of Returned Checks: the 5th day of the month, the Landlord may
Collect a fee of $5 on the 6th day of the
month. Thereafter, the Landlord may collect $1
for each additional day the rent remains
unpaid during the month it is due.
The Landlord may not terminate this Agreement for failure to pay late charges, but may terminate this Agreement for non-payment of rent, as explained in paragraph 23. The Landlord may collect a fee of $__(N)___ on the second or any additional time a check is not honored for payment (bounces). The charges discussed in this paragraph are in addition to the regular monthly rent payable by the Tenant.
6. Condition of By signing this Agreement, the Tenant
Dwelling acknowledges that the unit is safe, clean and
Unit in good condition. The Tenant agrees that all
Appliances and equipment in the unit are in
good working order, except as described on the
Unit Inspection Report which is Attachment
No. 2 to this Agreement. The Tenant also
agrees that the Landlord has made no promises to decorate, alter, repair or improve the unit, except as listed on the Unit Inspection Report.
7. Charges for The following charts describe how the cost of
Utilities and utilities and services related to occupancy
Services: of the unit will be paid. The Tenant agrees
that these charts accurately describe the
utilities and services paid by the Landlord and those paid by the Tenant.
a. The Tenant must pay for the utilities in column (1). Payments
should be made directly to the appropriate utility company.
The items in column (2) are included in the Tenant's rent.
(1) (2)
Put "x" by any Type of Put "x" by any
Utility Tenant Utility Utility Included
pays directly in Tenant Rent
___(O)___ Heat ___(O)____
_________ Lights, Electric __________
_________ Cooking __________
_________ Water __________
Other (Specify.
_________ ____________ __________
_________ ____________ __________
The Tenant agrees to pay the Landlord the amount shown in
column (3) on the date the rent is due. The Landlord certifies that HUD had authorized him/her to collect the type of charges shown in column (3) and that the amounts shown in column (3) do not exceed the amounts authorized by HUD.
(3)
Show $ Amount Tenant
Pays to Landlord in
Addition to Rent
Parking $___(O)_______
Other (Specify.)
_______________ $__________
_______________ $__________
8. Security Deposits: The Tenant has deposited $__(P)__ with the
Landlord. The Landlord will hold this
security deposit for the period the Tenant
occupies the unit. After the Tenant has moved
from the unit, the Landlord will determine
whether the Tenant is eligible for a refund of any or all of the security deposit. The amount of the refund will be determined in accordance with the following conditions and procedures.
The Tenant will be eligible for a refund of the security
Deposit only if the Tenant provided the Landlord with the 30-day written notice of intent to move required by paragraph 23, unless the Tenant was unable to give the notice for reasons beyond his/her control.
b. After the Tenant has moved from the unit, the Landlord will
inspect the unit and complete another Unit Inspection Report.
The Landlord will permit the Tenant to participate in the
inspection, if the Tenant so requests.
The Landlord will refund to the Tenant the amount of the
security deposit plus interest computed at _(Q) _%, beginning ___(R)___ ,less any amount needed to pay the cost of:
(1) unpaid rent;
(2) damages that are not due to normal wear and tear and are
not listed on the Unit Inspection Report;
(3) charges for late payment of rent and returned checks, as
described in paragraph 5; and
(4) charges for unreturned keys, as described in paragraph 9.
d. The Landlord agrees to refund the amount computed in paragraph
8c within _(S) _ days after the Tenant has permanently moved
out of the unit, returned possession of the unit to the
Landlord, and given his/her new address to the Landlord. The
Landlord will also give the Tenant a written list of charges
that were subtracted from the deposit. If the Tenant
disagrees with the Landlord concerning the amounts deducted
and asks to meet with the Landlord, the Landlord agrees to
meet with the Tenant and informally discuss the disputed
charges.
If the unit is rented by more than one person, the Tenants
agree that they will work out the details of dividing any
refund among themselves. The Landlord may pay the refund to
any Tenant identified in Paragraph 1 of this Agreement.
f. The Tenant understands that the Landlord will not count the
Security Deposit towards the last month's rent or towards
repair charges owed by the Tenant in accordance with
paragraph 11.
9. Keys and Locks: The Tenant agrees not to install additional
or different locks or gates on any doors or
windows of the unit without the written
permission of the Landlord. If the Landlord
approves the Tenant's request to install such locks, the Tenant agrees to provide the Landlord with a key for each lock. When this Agreement ends, the Tenant agrees to return all keys to the dwelling unit to the Landlord. The Landlord may charge the Tenant $ ___(T)_ for each key not returned.
10. Maintenance:
a. The Landlord agrees to:
(1) regularly clean all common areas of the project;
(2) maintain the common areas and facilities in a safe
condition;
(3) arrange for collection and removal of trash and garbage;
(4) maintain all equipment and appliances in safe and working
order;
(5) make necessary repairs with reasonable promptness;
(6) maintain exterior lighting in good working order:
(7) provide extermination services, as necessary; and
(8) maintain grounds and shrubs.
b. The Tenant agrees to:
(1) keep the unit clean;
use all appliances, fixtures and equipment in a safe
manner and only for the purposes for which they are intended;
(3) not litter the grounds or common areas of the project;
(4) not destroy, deface, damage or remove any part of the
unit, common areas, or project grounds;
(5) give the Landlord prompt notice of any defects in the
plumbing, fixtures, appliances, heating and cooling
equipment or any other part of the unit or related
facilities; and
(6) remove garbage and other waste from the unit in a clean
and safe manner.
11. Damages: Whenever damage is caused by carelessness,
misuse, or neglect on the part of the Tenant,
his/her family or visitors, the Tenant agrees to pay:
a. the cost of all repairs and do so within 30 days after
receipt of the Landlord's demand for the repair charges; and
b. rent for the period the unit is damaged whether or not the
unit is habitable. The Tenant understands that HUD will not
make assistance payments for any period in which the unit is
not habitable. For any such period, the Tenant agrees to
pay the HUD-approved market rent rather than the Tenant rent
shown in paragraph 3 of this agreement.
12. Restrictions on No alteration, addition, or improvements shall
Alterations: be made in or to the premises without the
prior consent of the Landlord in writing. The
Landlord agrees to provide reasonable accommodation to an otherwise eligible tenant’s
disability, including making changes to rules, policies, or procedures, and making and paying for structural alterations to a unit or common areas. The Landlord is not required to provide accommodations that constitute a fundamental alteration to the Landlord’s program or which would pose a substantial financial and administrative hardship. See the regulations at 24 CFR Part 8. In addition, if a requested structural modification does pose a substantial financial and administrative hardship, the Landlord must then allow the tenant to make and pay for the modification in accordance with the Fair Housing Act.
13. General The Tenant must live in the unit and the
Restrictions: unit must be the Tenant's only place of
residence. The Tenant shall use the
premises only as a private dwelling for
himself/herself and the individuals listed on the **Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures, Attachment 1**. The Tenant agrees to permit other individuals to reside in the unit only after obtaining the prior written approval of the Landlord. The Tenant agrees not to:
a. sublet or assign the unit, or any part of the unit;
b. use the unit for unlawful purposes;
c. engage in or permit unlawful activities in the unit, in the
common areas or on the project grounds;
d. have pets or animals of any kind in the unit without the prior written permission of the Landlord, but the landlord will allow the tenant to keep an animal needed as a reasonable accommodation to the tenant’s disability, and will allow animals to accompany visitors with disabilities who need such animals as an accommodation to their disabilities; or
e. make or permit noises or acts that will disturb the rights or
comfort of neighbors. The Tenant agrees to keep the volume
of any radio, phonograph, television or musical instrument at
a level which will not disturb the neighbors.
14. Rules: The Tenant agrees to obey the House Rules which are
Attachment No. 3 to this Agreement. The tenant agrees
to obey additional rules established after the effective
date of this Agreement if:
a. the rules are reasonably related to the safety, care and
cleanliness of the building and the safety, comfort and
convenience of the Tenants; and
b. the Tenant receives written notice of the proposed rule at
least 30 days before the rule is enforced.
15. Regularly Scheduled Every year around the __(U)___ day of _(V)_,
Recertifications: the Landlord will request the
Tenant to report the income and composition
of the Tenant's household and to supply any
other information required by HUD for the
purposes of determining the Tenant's rent and assistance payment, if any. The Tenant agrees to provide accurate statements of this information and to do so by the date specified in the Landlord's request. The landlord will verify the information supplied by the Tenant and use the verified information to recompute the amount of the Tenant's rent and assistance payment, if any.
a. If the Tenant does not submit the required recertification
information by the date specified in the Landlord's request,
the Landlord may impose the following penalties. The
Landlord may implement these penalties only in accordance
with the administrative procedures and time frames specified
in HUD's regulations, handbooks and instructions related to
the administration of multifamily subsidy programs.
Require the Tenant to pay the higher, HUD-approved market rent for the unit.
(2) Implement any increase in rent resulting from the
recertification processing without providing the 30-day
notice otherwise required by paragraph 4 of this
Agreement.
b. The Tenant may request to meet with the Landlord to discuss
any change in rent or assistance payment resulting from the
recertification processing. If the Tenant requests such a
meeting, the Landlord agrees to meet with the Tenant and
discuss how the Tenant's rent and assistance payment, if any,
were computed.
16. Reporting Changes Between Regularly Scheduled
Recertifications:
a. If any of the following changes occur, the Tenant agrees
to advise the Landlord immediately.
(1) Any household member moves out of the unit.
(2) An adult member of the household who was reported
as unemployed on the most recent certification or
recertification obtains employment.
(3) The household's income cumulatively increases by
$200 or more a month.
b. The Tenant may report any decrease in income or any
change in other factors considered in calculating the
Tenant's rent. Unless the Landlord has confirmation
that the decrease in income or change in other factors
will last less than one month, the Landlord will verify
the information and make the appropriate rent reduction.
However, if the Tenant's income will be partially or
fully restored within two months, the Landlord may delay
the certification process until the new income is known,
but the rent reduction will be retroactive and the
Landlord may not evict the Tenant for nonpayment of rent
due during the period of the reported decrease and the
completion of the certification process. The Tenant has
thirty days after receiving written notice of any rent
due for the above described time period to pay or the
Landlord can evict for nonpayment of rent. (Revised
3/22/89)
c. If the Tenant does not advise the Landlord of these
interim changes, the Landlord may increase the Tenant's
rent to the HUD-approved market rent. The Landlord may
do so only in accordance with the time frames and
administrative procedures set forth in HUD's
regulations, handbooks and instructions on the
administration of multifamily subsidy programs.
d. The Tenant may request to meet with the Landlord to
discuss how any change in income or other factors
affected his/her rent or assistance payment, if any.
If the Tenant requests such a meeting, the Landlord
agrees to meet with the Tenant and explain how the
Tenant's rent or assistance payment, if any, was
computed.
17. Removal of Subsidy:
a. The Tenant understands that assistance made available
on his/her behalf may be terminated if events in either
items 1 or 2 below occur. Termination of assistance
means that the Landlord may make the assistance
available to another Tenant and the Tenant's rent will
be recomputed. In addition, if the Tenant's assistance
is terminated because of criterion (1) below, the
Tenant will be required to pay the HUD-approved market
rent for the unit.
(1)The Tenant does not provide the Landlord with
the information or reports required by
paragraph 15 or 16 within 10 calendar days
after receipt of the Landlord's notice of
intent to terminate the Tenant's assistance
payment.
(2)The amount the Tenant would be required to pay
towards rent and utilities under HUD rules and
regulations equals the Family Gross Rent shown on
Attachment 1.
b. The Landlord agrees to give the Tenant written notice
of the proposed termination. The notice will advise
the Tenant that, during the ten calendar days following
the date of the notice, he/she may request to meet with
the Landlord to discuss the proposed termination of
assistance. If the Tenant requests a discussion of the
proposed termination, the Landlord agrees to meet with
the Tenant.
c. Termination of assistance shall not affect the Tenant's
other rights under this Agreement, including the right
to occupy the unit. Assistance may subsequently be
reinstated if the Tenant submits the income or other
data required by HUD procedures, the Landlord
determines the Tenant is eligible for assistance, and
assistance is available.
18. Tenant If the tenant submits false information on
Obligation any application, certification or request
To Repay: for interim adjustment or does not report
interim changes in family income or other
factors as required by paragraph 16 of this
Agreement, and as a result, is charged a rent less than the amount required by HUD's rent formulas, the Tenant agrees to reimburse the Landlord for the difference between the rent he/she should have paid and the rent he/she was charged. The Tenant is
not required to reimburse the Landlord for undercharges caused solely by the Landlord's failure to follow HUD's procedures for computing rent or assistance payments.
19. Size of The Tenant understands that HUD requires the
Dwelling Landlord to assign units **in accordance with the
Landlord’s written occupancy standards. These
standards include consideration of unit size,
relationship of family members, age and sex of
family members and family preference.** If the Tenant is or becomes eligible for a different size unit, and the required size unit becomes available, the Tenant agrees to:
a. move within 30 days after the Landlord notifies him/her that
unit of the required size is available within the project; or
b. remain in the same unit and pay the HUD-approved market rent.
**Access by Landlord:
The Landlord agrees to enter the unit only during reasonable
hours, to provide reasonable advance notice of his/her intent to enter the unit, and to enter the unit only after receiving the Tenant's consent to do so, except when urgency situations make such notices impossible or except under paragraph (c) below.
The Tenant consents in advance to the following entries into the unit:
(i) The tenant agrees to permit the Landlord, his/her agents or other persons, when authorized by the Landlord, to enter the unit for the purpose of making reasonable repairs and periodic inspections.
(ii) After the Tenant has given a notice of intent to move,
the Tenant agrees to permit the Landlord to show the unit to prospective tenants during reasonable hours.**
c. If the Tenant moves before this Agreement ends, the Landlord
may enter the unit to decorate, remodel, alter or otherwise
prepare the unit for re-occupancy.
21. Discrimination The Landlord agrees not to discriminate
Prohibited: based upon race, color, religion, creed,
National origin, sex, age, familial status,
and disability.
22. Change in Rental The Landlord may, with the prior approval of
Agreement: HUD, change the terms and conditions of this
Agreement. Any changes will become
effective only at the end of the initial
term or a successive term. The Landlord must notify the Tenant of any change and must offer the Tenant a new Agreement or an
amendment to the existing Agreement. The Tenant must receive the notice at least 60 days before the proposed effective date
of the change. The Tenant may accept the changed terms and conditions by signing the new Agreement or the amendment to the
existing Agreement and returning it to the Landlord. The Tenant may reject the changed terms and conditions by giving the
Landlord written notice that he/she intends to terminate the tenancy. The Tenant must give such notice at least 30 days before the proposed change will go into effect. If the Tenant does not accept the amended agreement, the Landlord may require the Tenant to move from the project, as provided in paragraph 23.
23. Termination of
Tenancy:
a. To terminate this Agreement, the Tenant must give the
Landlord 30-days written notice before moving from the unit.**
b. Any termination of this Agreement by the Landlord must be
carried out in accordance with HUD regulations, State and
local law, and the terms of this Agreement.
c. The Landlord may terminate this Agreement for the following
reasons:
the Tenant’s material noncompliance with the terms of
this Agreement;
the Tenant’s material failure to carry out obligations under any State Landlord
and Tenant Act;
drug related criminal activity engaged in on or near the premises, by any tenant, household member, or guest, and any such activity engaged in on the
premises by any other person under the tenant’s
control;
determination made by the Landlord that a household member is illegally using a drug;
determination made by the Landlord that a pattern of illegal use of a drug interferes with the health, safety, or right to peaceful enjoyment of the
premises by other residents;
criminal activity by a tenant, any member of the tenant’s household, a guest or another person under the tenant’s control:
that threatens the health, safety, or right to
peaceful enjoyment of the premises by other
residents (including property management staff
residing on the premises); or
that threatens the health, safety, or right to
peaceful enjoyment of their residences by persons
residing in the immediate vicinity of the
premises;
if the tenant is 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 flees,
or that in the case of the State of New Jersey, is a
high misdemeanor;
if the tenant is violating a condition of probation or parole under Federal or State law;
determination made by the Landlord that a household member’s abuse or pattern of abuse of alcohol threatens the health, safety, or right to peaceful enjoyment of the premises by other residents;
if the Landlord determines that the tenant, any member of the tenant’s household, a guest or another person under the tenant’s control has engaged in the criminal activity, regardless of whether the tenant, any member of the tenant’s household, a guest or another person under the tenant’s control has been arrested or convicted for such activity.
d. The Landlord may terminate this Agreement for other good cause, which includes, but is not limited to, the tenant’s refusal to accept change to this agreement. Terminations for “other good cause” may only be effective as of the end of any initial or successive term.
The term material noncompliance with the lease includes: (1) one or more substantial violations of the lease; (2) repeated minor violations of the lease that (a) disrupt the livability of the project; (b) adversely affect the health or safety of any person or the right of any tenant to the quiet enjoyment to the leased premises and related project facilities, (c) interfere with the management of the project, or (d) have an adverse financial effect on the project (3) failure of the tenant to timely supply all required information on the income and composition, or eligibility factors, of the tenant household (including, but not limited to, failure to meet the disclosure and verification requirements for Social Security Numbers, or failure to sign and submit consent forms for the obtaining of wage and claim information from State Wage Information Collection Agencies), and (4) Non-payment of rent or any other financial obligation due under the lease beyond any grace period permitted under State law. The payment of rent or any other financial obligation due under the lease after the due date but within the grace period permitted under State law constitutes a minor violation.
e. If the Landlord proposes to terminate this Agreement, the
Landlord agrees to give the Tenant written notice and the grounds for the proposed termination. If the Landlord is terminating this agreement for “other good cause,” the termination notice must be mailed to the Tenant and hand-delivered to the dwelling unit in the manner required by HUD at least 30 days before the date the Tenant will be required to move from the unit and in accordance with State law requirements. Notices of proposed termination for other reasons must be given in accordance with any time frames set forth in State and local law. Any HUD-required notice period may run concurrently with any notice period required by State or local law. All termination notices must:
specify the date this Agreement will be terminated;
state the grounds for termination with enough detail for the Tenant to prepare a defense;
advise the Tenant that he/she has 10 days within which to discuss the proposed termination of tenancy with the
Landlord. The 10-day period will begin on the earlier of the date the notice was hand-delivered to the unit or the day after the date the notice is mailed. If the Tenant requests the meeting, the Landlord agrees to discuss the proposed termination with the Tenant; and
advise the Tenant of his/her right to defend the action in court.
f. If an eviction is initiated, the Landlord agrees to rely
only upon those grounds cited in the termination notice
required by paragraph e.
24. Hazards: The Tenant shall not undertake, or permit his/her
family or guests to undertake, any hazardous acts
or do anything that will increase the project's insurance premiums. Such action constitutes a material non-compliance. If the unit is damaged by fire, wind, or rain to the extent that the unit cannot be lived in and the damage is not caused or made worse by the Tenant, the Tenant will be responsible for rent only up to the date of the destruction. Additional rent will not accrue until the unit has been repaired to a livable condition.
25. Penalties for Knowingly giving the Landlord false
Submitting False information regarding income or other
Information: factors considered in determining
Tenant's eligibility and rent is a
material noncompliance with the lease subject to termination of tenancy. In addition, the Tenant could become subject to
penalties available under Federal law. Those penalties include fines up to $10,000 and imprisonment for up to five years.
26. Contents of this This Agreement and its Attachments make
Agreement: up the entire agreement between the
Landlord and the Tenant regarding the unit. If any Court declares a particular provision of this Agreement to be invalid or illegal, all other terms of this Agreement will remain in effect and both the Landlord and the Tenant will continue to be bound by them.
27. Attachments to The Tenant certifies that he/she has
the Agreement: received a copy of this Agreement and the
following Attachments to this Agreement
and understands that these Attachments are part of this Agreement.
Attachment No. 1 – Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures, form HUD-50059**
b. Attachment No. 2 - Unit Inspection Report.
c. Attachment No. 3 - House Rules (if any).
Tenants’ rights to organize: Landlord agrees to allow tenant
and tenant organizers to conduct on the property the activities
related to the establishment or operation of a tenant
organization set out in accordance with HUD requirements.
Tenant Income Verification: The Tenant must promptly provide the
Landlord with any letter or other notice by HUD to a member of
the family that provides information concerning the amount or
verification of family income in accordance with HUD
requirements.
The lease agreement will terminate automatically, if the Section
8 Housing Assistance contract terminates for any reason.
31. Signatures:
TENANT
BY:
________________(W)________________________ _____/____/____
Date Signed
2. __________________________________________ ____/____/____
Date Signed
3. __________________________________________ ____/____/____
Date Signed
LANDLORD
BY:
_________________(W)_____________________ ____/____/____
Date Signed
Public reporting burden - HUD is not requesting approval of any burden hours for the model leases since use of leases are a standard business practice in the housing rental industry. This information is required to obtain benefits and is voluntary. HUD may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. The request and required supporting documentation are sent to HUD or the Contract Administrator (CA) for approval. The lease is a contract between the owner of the project and the tenant(s) that explains the terms for residing in the unit. Leases are a standard business practice in the housing rental industry. Owners are required to use the HUD model lease which includes terms normally covered by leases used in the housing rental industry plus terms required by HUD for the program under which the project was built and/or the program providing rental assistance to the tenants.
This information is authorized by 24 CFR 5.360, 236.750, 880.606, 883.701, 884.215, 886.127, 886.327, 891.425, 891.625 and 891.765 cover lease requirements and provisions. This information is considered non-sensitive and does no require any special protection.
Appendix 4-B
Model
Lease for Section 202/8
or Section 202 PACs
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
____________________________
Project Name
____________________________
HUD Project Number
(1) The Section 202 Program of Housing for the Elderly or Handicapped in conjunction with the Section 8 Housing Assistance Payments Program; and (2) the Section 202 Program for Nonelderly Handicapped Families and Individuals in conjunction with Section 162 assistance and Project Assistance Contracts.
This agreement made and entered into this __(A)_____ day of ___________, 20__, between _______________(B)______________________________________, as LANDLORD, and _______________(C)__________________________________________, as TENANT.
WITNESSETH
WHEREAS, the LANDLORD is the Mortgagor under a Mortgage covering the project in which the hereinafter described unit is situated, which secures a loan made by the Secretary of Housing and Urban Development (HUD)(hereinafter "Secretary") pursuant to Section 202 of the Housing Act of 1959, as amended, and
WHEREAS, the LANDLORD has entered into a Housing Assistance Payments (HAP) Contract with the Secretary, or the LANDLORD has entered into a Project Assistance Contract (PAC) with the Secretary, (STRIKE INAPPLICABLE CONTRACT), and
WHEREAS, pursuant to a Regulatory Agreement entered into between the LANDLORD and the Secretary, the LANDLORD has agreed to limit occupancy of the project to elderly or handicapped families and individuals as defined in Section 202 of the Housing Act of 1959, as amended, and applicable HUD regulations under criteria for eligibility of TENANTS for admission to Section 8 assisted units and conditions of continued occupancy in accordance with the terms and provisions of the HAP Contract, or applicable HUD regulations under criteria for eligibility of TENANTS for admission to Section 162 assisted units and conditions of continued occupancy in accordance with the terms and provisions of the PAC, (STRIKE INAPPLICABLE REGULATIONS); and
WHEREAS, the LANDLORD has determined that the TENANT is eligible to pay less than the contract rent for the described unit,
NOW THEREFORE,
The LANDLORD leases to the TENANT, and the TENANT leases from the
LANDLORD dwelling unit in the project known as
____________(D)_____________________________________________________
for a term of one year commencing on the _____ day of _______(E)______________________, 20__,
and ending on the _____ day of ____________(F)____________________, 20__.
2. The total rent (Contract Rent) shall be $____(G)____ per month.
3. The total rent specified in Paragraph 2, above, shall include the following utilities:
_________(H)_________________________ _______________________________________
__________________________________ _______________________________________
(If the total rent includes all utilities, enter "ALL"; where TENANTS pay some or all utilities, enter the following additional paragraph as 3a.)
The total rent stipulated herein does not include the cost of the following utility service(s), for which the Utility Allowance is $_____(I)_______:
_________(J)_________________________ _______________________________________
__________________________________ _______________________________________
Charges for such service(s) is/are to be paid directly by the TENANT to the utility company/companies providing such service(s). If the Utility Allowance exceeds the required TENANT's share of the total housing expense per HUD-approved schedule and criteria, the LANDLORD shall pay the TENANT the amount of such excess on behalf of the Government upon receipt of funds
from HUD for that purpose. (Note: Utility Allowance is not applicable to non-Section 8 tenants.)
4. Where meal service is a condition of occupancy, the charge for such meals shall be $___(K)___ per month, and a mandatory meals agreement will be made a part of this lease.
5. Of the total rent, $___(L)_____ shall be payable by or at the direction of HUD as housing assistance payments, or project assistance payments (STRIKE INAPPLICABLE PAYMENTS) on behalf of the TENANT, and $_(M)____ shall be payable by the TENANT. These amounts shall be subject to change by reason of changes in HUD requirements, changes in the TENANT's family
income, family composition, or extent of exceptional medical or other unusual expenses in accordance with HUD-established schedules and criteria; or by reason of adjustment by HUD of any applicable Utility Allowance. Any such change shall be effective as of the date stated in a Notice to the TENANT. (Note: This paragraph is not applicable to non-Section 8 tenants.)
6. The TENANT's share of the rent shall be due and payable on or before the first day of each month at _____(N)______________ to the LANDLORD, or to such other person or persons or at such places as the LANDLORD may from time to time designate in writing.
7. A security deposit equal to one month's total tenant payment or $50, whichever is greater, shall be required at the time of execution of this Agreement. Accordingly, TENANT hereby makes a deposit of $_______(O)___________ against any damage except reasonable wear done to the premises by the TENANT, his/her family, guests, or agents; and agrees to pay when billed the full amount of any such damage in order that the deposit will remain intact. Upon termination of this Lease, the deposit is to be refunded to the TENANT or to be applied to any such damage or any rent delinquency. The LANDLORD shall comply with all State and local laws regarding interest payments on security deposits.
8. The LANDLORD shall not discriminate against the TENANT in the provision of services or in any other manner on the grounds of race, color, creed, religion, sex, familial status, national origin, or disability.
9. Unless terminated or modified as provided herein, this Agreement shall be automatically renewed for successive terms of one month each at the aforesaid rental, subject to adjustment as herein provided.
(a) The TENANT may terminate this Agreement at the end of the initial term or any successive term by giving 30 days written notice in advance to the LANDLORD. Whenever the LANDLORD has been in material noncompliance with this Agreement, the TENANT may in accordance with State law terminate this Agreement by so advising the LANDLORD in writing.
(b) The LANDLORD's right to terminate this Agreement is governed by the regulation at 24 CFR Part 247. The HUD Regulation provides that the LANDLORD may terminate this Agreement only under the following circumstances:
(1) The LANDLORD may terminate, effective at the end of the initial term or any successive term, by giving the TENANT notification in the manner prescribed in paragraph (g) below that the term of this Agreement is not renewed and this Agreement is accordingly terminated. This termination must be based upon either material noncompliance with this Agreement, material failure to carry out obligations under any State landlord or tenant act, or other good cause. When the termination of the tenancy is based on other good cause, the termination notice shall so state, at the end of a term and in accordance with the termination provisions of this Agreement, but in no case earlier than 30 days after receipt by the TENANT of the notice. Where the termination notice is based on material noncompliance with this Agreement or material failure to carry out obligations under a State landlord and tenant act, the time of service shall be in accordance with the previous sentence or State law, whichever
is later.
(2) Notwithstanding subparagraph (1), whenever the TENANT has been in material noncompliance with this Agreement, the LANDLORD may, in accordance with State law and the HUD Regulation, terminate this Agreement by notifying the TENANT in the manner prescribed in paragraph (g) below.
(c) If the TENANT does not vacate the premises on the effective date of the termination of this Agreement, the LANDLORD may pursue all judicial remedies under State or local law for the eviction of the TENANT, and in accordance with the requirements in the HUD Regulation.
(d) The term "material noncompliance with this Agreement" shall, in the case of the TENANT, include (1) one or more substantial violations of this Agreement, (2) repeated minor violations of this Agreement which disrupt the livability of the project, adversely affect the health or safety of any person or the right of any tenant to the quiet enjoyment of the leased premises and related project facilities, interfere with the management of the project or have an adverse financial effect on the project, or (3) failure of the TENANT to timely supply all required information on the income and composition, or eligibility factors of the TENANT household (including failure to meet the disclosure and verification requirements for Social Security Numbers, as provided by 24 CFR Part 5, or knowingly providing incomplete or inaccurate information). Nonpayment of rent or any other financial obligation due under this Agreement
(including any portion thereof) beyond any grace period permitted under State law shall constitute a substantial violation. The payment of rent or any other financial obligation due under this Agreement after the due date but within any grace period permitted under State law shall constitute a minor violation.
(e) The conduct of the TENANT cannot be deemed other good cause unless the LANDLORD has given the TENANT prior notice that said conduct shall henceforth constitute a basis for termination of this Agreement. Said notice shall be served on the TENANT in the manner prescribed in paragraph (g) below.
(f) The LANDLORD's determination to terminate this Agreement shall be in writing and shall (1) state that the Agreement is terminated on a date speciified therein, (2) state the reasons for the LANDLORD's action with enough specificity so as to enable the TENANT to prepare a defense, (3) advise the TENANT that if he or she remains in the leased unit on the date specified for termination, the LANDLORD may seek to enforce the termination only by bringing a judicial action at which time the TENANT may present a defense, and (4) be served on the TENANT in the manner prescribed by paragraph (g) below.
(g) The LANDLORD's termination notice shall be accomplished by (1) sending a letter by first class mail, properly stamped and addressed, to the TENANT at his/her address at the project, with a proper return address, and (2) serving a copy of said notice on any adult person answering the door at the leased dwelling unit, or if no adult responds, by placing the notice under or through the door, if possible, or else by affixing the notice to the door. Service shall not be deemed effective until both notices provided for herein have been accomplished. The date on which the notice shall be deemed to be received by the TENANT shall be the date on which the first class letter provided for in clause (1) herein is mailed, or the date on which the notice provided for in clause (2) is properly given, whichever is later.
(h) The LANDLORD may, with the prior approval of HUD, modify the terms and conditions of the Agreement, effective at the end of the initial term or a successive term, by serving an appropriate notice on the TENANT, together with the tender of a revised Agreement or an addendum revising the existing Agreement. Any increase in rent shall in all cases be governed by 24 CFR Part 245 and other applicable HUD regulations. This notice and tender shall be served on the TENANT in the manner prescribed in paragraph (g) and must be received by the TENANT (as defined in paragraph (g)) at least 30 days prior to the last date on which the TENANT has the right to terminate the tenancy without being bound by the codified terms and conditions. The TENANT may accept it by executing the tendered revised Agreement or addendum, or may reject it by giving the LANDLORD written notice at least 30 days prior to its effective date that he/she intends to terminate the tenancy. The TENANT's termination notice shall be
accomplished by sending a letter by first class mail, properly stamped and addressed to the LANDLORD at his/her address.
(i) The Landlord may terminate this Agreement for the following reasons:
1. drug related criminal activity engaged in on or near the premises, by any tenant, household member, or guest, and any such activity engaged in on the premises by any other person under the tenant’s control;
2. determination made by the Landlord that a household member is illegally using a drug;
3. determination made by the Landlord that a pattern of illegal use of a drug interferes with the health, safety, or right to peaceful enjoyment of the premises by other residents;
4. criminal activity by a tenant, any member of the tenant’s
household, a guest or another person under the tenant’s control:
(a) that threatens the health, safety, or right to peaceful enjoyment of the premises by other residents (including property management staff residing on the premises); or
(b) that threatens the health, safety, or right to peaceful enjoyment of their residences by persons residing in the immediate vicinity of the premises;
5. if the tenant is 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 flees, or that in the case of the State of New Jersey, is a high misdemeanor; or
6. if the tenant is violating a condition of probation or parole under Federal or State law;
7. determination made by the Landlord that a household member’s abuse or pattern of abuse of alcohol threatens the health, safety, or right to peaceful enjoyment of the premises by other residents;
8. if the Landlord determines that the tenant, any member of the tenant’s household, a guest or another person under the tenant’s control has engaged in criminal activity, regardless of whether the tenant, any member of the tenant’s household, a guest or another person under the tenant’s control has been arrested or convicted for such activity.
10. TENANT agrees that the family income, family composition and other eligibility requirements shall be deemed substantial and material obligations of his/her tenancy with respect to the amount of rental he/she will be obligated to pay and his/her right of occupancy, and that a recertification of income shall be made to the LANDLORD annually from the date of this lease in accordance with HUD regulations and requirements. (Note: This paragraph is not applicable to non-Section 8 tenants.)
11. TENANT agrees that the TENANT's share of the monthly rental payment is subject to adjustment by the LANDLORD to reflect income changes which are disclosed on any of TENANT's recertification of income, and TENANT agrees to be bound by such adjustment. LANDLORD agrees to give 30 days written notice of any such adjustment to the TENANT, by an addendum to be made a part of this lease, stating the amount of the adjusted monthly rental which the TENANT will be required to pay. (Note: This paragraph is not applicable to non-Section 8 tenants.)
12. LANDLORD and TENANT agree that if, upon recertification, TENANT'S income is found to be sufficient to pay the Contract Rent plus any Utility Allowance, the TENANT shall then be required to bear the cost of all such housing expense, but he/she will no longer be required to make income certifications under this lease.
13. The TENANT shall not assign this lease, sublet the premises, give accommodation to any roomers or lodgers, or permit the use of the premises for any purpose other than as a private dwelling solely for the TENANT and his/her family. The TENANT agrees to reside in this unit and agrees that this unit shall be the TENANT's and his/her family's only place of residence.
14. TENANT agrees to pay to the LANDLORD any rental which should have been paid but for (a) TENANT's misrepresentation in his/her initial income certification or recertification, or in any other information furnished to the LANDLORD or (b) TENANT's failure to supply income recertification when required or to supply information requested by the LANDLORD.
15. TENANT for himself/herself and his/her heirs, executors and administrators agrees as follows:
(a) To pay the rent herein stated promptly when due, without any deductions whatsoever, and without any obligation on the part of the LANDLORD to make any demand for the same;
(b) To keep the premises in a clean and sanitary condition, and to comply with all obligations imposed upon TENANTS under applicable provisions of building and housing codes materially affecting health and safety with respect to said premises and appurtenances, and to save the LANDLORD harmless from all fines, penalties and costs for violations or noncompliance by TENANT with any of said laws, requirements or regulations, and from all liability arising out of any such violations or noncompliance.
(c) Not to use premises for any purpose deemed hazardous by insurance companies carrying insurance thereon;
(d) That if any damage to the property shall be caused by his/her acts or neglect, the TENANT shall forthwith repair such damage at his/her own expense, and should the TENANT fail or refuse to make such repairs within a reasonable time after the occurrence of such damage, the LANDLORD may, at his/her option, make such repairs and charge the cost thereof to the TENANT, and the TENANT shall thereupon reimburse the LANDLORD for the total cost of the damages so caused;
(e) To permit the LANDLORD, or his/her agents, or any representative of any holder of a mortgage on the property, or when authorized by the LANDLORD, the employees of any contractor, utility company, municipal agency or others, to enter the premises for the purpose of making reasonable inspections and repairs and replacements;
(f) Not to install a washing machine, clothes dryer, or air conditioning unit in the apartment without the prior approval of the LANDLORD; and
(g) To permit the LANDLORD or his/her agents to bring appropriate legal action in the event of a breach or threatened breach by the TENANT of any of the covenants or provisions of this lease.
16. The TENANT is permitted to keep common household pets in his/her dwelling unit (subject to the provisions in 24 CFR Part 5 and the pet rules promulgated under 24 CFR Part 5). Any pet rules promulgated by the LANDLORD are attached hereto and incorporated hereby. The TENANT agrees to comply with these rules. A violation of these rules may be grounds for removal of the pet or termination of the TENANT's (pet owner's) tenancy (or
both), in accordance with the provisions of 24 CFR Part 5 and applicable regulations and State or local law. These regulations include 24 CFR Part 5 (Evictions From Certain Subsidized and HUD-Owned Projects) and provisions governing the termination of tenancy under the Section 8 housing assistance payments and project assistance payments programs.
Note: The Part 5 Pet Rules do not apply to an animal used by a Tenant or visitor that is needed as a reasonable accommodation for the Tenant or visitor’s disability. Optional: The LANDLORD may after reasonable notice to the TENANT and during reasonable hours, enter and inspect the premises. Entry and inspection is permitted only if the LANDLORD has received a signed, written complaint alleging (or the LANDLORD has reasonable grounds to believe) that the conduct or condition of a pet in the dwelling unit constitutes, under
applicable State or local law, a nuisance or a threat to the health or safety of the occupants of the project or other persons in the community where the project is located.
If there is no State or local authority (or designated agent of such an authority) authorized under applicable State or local law to remove a pet that becomes vicious, displays symptoms of severe illness, or demonstrates other behavior that constitutes an immediate threat to the health or safety of the tenancy as a whole, the LANDLORD may enter the premises (if necessary), remove the pet, and take such action with respect to the pet as may be permissible under State and local law, which may include placing it in a facility that will provide care and shelter for a period not to exceed 30 days. The LANDLORD shall enter the premises and
remove the pet or take such other permissible action only if the LANDLORD requests the TENANT (pet owner) to remove the pet from the project immediately, and the TENANT (pet owner) refuses to do so, or if the LANDLORD is unable to contact the TENANT (pet owner) to make a removal request. The cost of the animal care facility shall be paid as provided in 24 CFR Part 5.
17. The LANDLORD agrees to comply with the requirement of all applicable Federal, State, and local laws, including health, housing and building codes and to deliver and maintain the premises in safe, sanitary and decent condition.
18. The TENANT, by the execution of this Agreement, agrees that the dwelling unit described herein has been inspected by him/her and meets with his/her approval. The TENANT acknowledges hereby that said premises have been satisfactorily completed and that the LANDLORD will not be required to repaint, replaster, or otherwise perform any other work, labor, or service which it has already performed for the TENANT. The TENANT admits that he/she has inspected the unit and found it to be in good and tenantable condition, and agrees that at the end of the occupancy hereunder to deliver up and surrender said premises to the LANDLORD in as good condition as when received, reasonable wear and tear excepted.
19. No alteration, addition, or improvements shall be made in or to the premises without the prior consent of the LANDLORD in writing. The LANDORD agrees to provide reasonable accommodation to an otherwise eligible tenant’s disability, including making changes to rules, policies, or procedures, and making and paying for structural alterations to a unit or common areas. The Landlord is not required to provide accommodations that constitute a fundamental alteration to the Landlord’s program or which would pose a substantial financial and administrative hardship. See the regulations at 24 CFR Part 8. In addition, if a requested structural modification does pose a substantial financial and administrative hardship, the Landlord must then allow the tenant to make and pay for the modification in accordance with the Fair Housing Act.
20. TENANT agrees not to waste utilities furnished by the LANDLORD; not to use utilities or equipment for any improper or unauthorized purpose; and not to place fixtures, signs, or fences in or about the premises without the prior permission of the LANDLORD in writing. If such permission is obtained, TENANT agrees, upon termination of the lease, to remove any fixtures, signs or fences, at the option of the LANDLORD, without damage to the premises.
21. This Agreement shall be subordinate in respect to any mortgages that are now on or that hereafter may be placed against said premises, and the recording of such mortgage or mortgages shall have preference and precedence and be superior and prior in lien to this Agreement, and the TENANT agrees to execute any such instrument without cost, which may be
deemed necessary or desirable to further effect the subordination of this Agreement to any such mortgage or mortgages and a refusal to execute such instruments shall entitle the LANDLORD, or the LANDLORD's assigns and legal representatives to the option of cancelling this Agreement without incurring any expense or damage, and the term hereby granted is expressly limited accordingly.
22. Tenant Income Verification: The Tenant must promptly provide the Landlord with any letter or other notice by HUD to a member of the family that provides information concerning the amount or verification of family income. in accordance with HUD requirements.
23. Tenants’ rights to organize: Landlord agrees to allow tenant and tenant organizers to conduct on the property the activities related to the establishment or operation of a tenant organization set out in accordance with HUD requirements.
Interim recertifications.
(a) The TENANT agrees to advise the Landlord immediately if any of the following changes occur.
1. Any household member moves out of the unit.
2. Any adult member of the household who was reported as unemployed on the most recent certification or recertification obtains employment.
3. The household’s income cumulatively increases by $200 or more a month.
(b) The Tenant may report any decrease in income or any change in other factors considered in calculating the Tenant’s rent. Unless the Landlord has confirmation that the decrease in income or change in other factors will last less than one month, the Landlord will verify the information and make the appropriate rent reduction. However, if the Tenant’s income will be partially or fully restored within two months, the Landlord may delay the certification process until the new income is known, but the rent reduction will be retroactive and Landlord may not evict the Tenant for nonpayment of rent due during the period of the reported decrease and the completion of the certification process. The Tenant has thirty days after receiving written notice of any rent due for the above described time period to pay or the Landlord can evict for nonpayment of rent.
(c) If the Tenant does not advise the Landlord of the interim changes concerning household members or increase in income, the Landlord may increase the Tenant’s rent to the HUD-approved market rent. The Landlord may do so only in accordance with the time frames and administrative procedures set forth in HUD’s regulations, handbooks and instructions on the administration of multifamily subsidy programs.
(d) The Tenant may request to meet with the Landlord to discuss how any change in income or other factors affected his/her rent or assistance payment, if any. If the Tenant requests such a meeting, the Landlord agrees to meet with the Tenant and explain how the Tenant’s rent or assistance payment, if any, was computed.
25. Removal of Subsidy:
(a) The Tenant understands that assistance made available on his/her behalf may be terminated if events in either item 1 or 2 below occur. Termination of assistance means that the Landlord may make the assistance available to another Tenant and the Tenant’s rent will be recomputed. In addition, if the Tenant’s assistance is terminated because of criterion (1) below, the Tenant will be required to pay the HUD-approved market rent for the unit.
(1) The Tenant does not provide the Landlord with the information or reports required by paragraph **10 or 24** within 10 calendar days after receipt of the Landlord’s notice of intent to terminate the Tenant’s assistance payment.
(2) The amount the Tenant would be required to pay towards rent and utilities under HUD rules and regulations equals the Family Gross Rent shown on Attachment 1.
(b) The Landlord agrees to give the Tenant written notice of the proposed termination. The notice will advise the Tenant that, during the ten calendar days following the date of the notice, he/she may request to meet with the Landlord to discuss the proposed termination of assistance. If the Tenant requests a discussion of the proposed termination, the Landlord agrees to meet with the Tenant.
(c) Termination of assistance shall not affect the Tenant’s other rights under this Agreement, including the right to occupy the unit. Assistance may subsequently be reinstated if the Tenant
submits the income or other data required by HUD procedures, the Landlord determines the Tenant is eligible for assistance, and assistance is available.
26. Failure of the LANDLORD to insist upon the strict performance of the terms, covenants, agreements and conditions herein contained, or any of them, shall not constitute or be construed as a **waiver** or relinquishment of the LANDLORD's right thereafter to enforce any such term, covenant, agreement, or condition, but the same shall continue in full force and
effect.
27. In return for the TENANT's continued fulfillment of the terms and conditions of this Agreement, the LANDLORD covenants that the TENANT may at all times, while this Agreement remains in effect, have and enjoy for his/her sole use and benefit the above described property.
The lease agreement will terminate automatically, if the Section
8 Housing Assistance contract terminates for any reason.
29. Attachments to the Agreement: The Tenant certifies that he/she has received a copy of the Agreement and the following attachments to the Agreement and understands that these attachments are part of the Agreement.
Attachment No. 1 – **Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures, form HUD-50059**
Attachment No. 2 – Unit Inspection Report.
Attachment No. 3 – House Rules (if any).
Attachment No. 4 – Pet Rules.
WITNESS:
_______________P)______________________LANDLORD
_________________________ By:_ _________________________________________
Date
_________________________ __________(P)_________________________TENANT
Date
_________________________ _____________________________________________
Date
_________________________ _____________________________________________
Date
Public reporting burden - HUD is not requesting approval of any burden hours for the model leases since use of leases are a standard business practice in the housing rental industry. This information is required to obtain benefits and is voluntary. HUD may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. The request and required supporting documentation are sent to HUD or the Contract Administrator (CA) for approval. The lease is a contract between the owner of the project and the tenant(s) that explains the terms for residing in the unit. Leases are a standard business practice in the housing rental industry. Owners are required to use the HUD model lease which includes terms normally covered by leases used in the housing rental industry plus terms required by HUD for the program under which the project was built and/or the program providing rental assistance to the tenants.
This information is authorized by 24 CFR 5.360, 236.750, 880.606, 883.701, 884.215, 886.127, 886.327, 891.425, 891.625 and 891.765 cover lease requirements and provisions. This information is considered non-sensitive and does no require any special protection.
Appendix 4-C
Model Lease for Section 202 PRACs
Supportive Housing for the Elderly
This agreement made and entered into this _____(A)______ day of ____________________________, 20___, between ______________________(B)__________________________________, as LANDLORD, and
_________________________(C)______________________________________, as TENANT.
WITNESSETH:
WHEREAS, the LANDLORD is the Mortgagor under a Mortgage covering the project in which the hereinafter described unit is situated, which secures a capital advance made by the Secretary of Housing and Urban Development (HUD) (hereinafter "Secretary") pursuant to Section 202 of the Housing Act of 1959, as amended, and
WHEREAS, the LANDLORD has entered into a Project Rental Assistance Contract (PRAC) with the Secretary.
WHEREAS, pursuant to a Regulatory Agreement entered into between the LANDLORD and the Secretary, the LANDLORD has agreed to limit occupancy of the project to elderly families and individuals as defined in Section 202 of the Housing Act of 1959, as amended, and applicable HUD regulations under criteria for eligibility of TENANTS for admission to assisted units and conditions of continued occupancy in accordance with the terms and provisions of the PRAC Contract, and
NOW THEREFORE,
1. The LANDLORD leases to the TENANT, and the TENANT leases from the LANDLORD dwelling unit in the project known as _______(D)________ for a term of one year, commencing on the _____ day of ___(E)_________, 20__, and ending on the _____ day of _____(F)___________, 20__.
2. The total rent (Contract Rent) shall be $_____(G)_____________ per month.
3. The total rent specified in Paragraph 2, above, shall include the following utilities:
_________(H)___________________________ ________________________
____________________________________ ________________________
(If the total rent includes all utilities, enter "ALL"; where TENANTS pay some or all utilities, enter the following additional paragraph as 3a.)
The total rent stipulated herein does not include the cost of the following utility service(s), for which the Utility allowance is $__(I)______.
______(J)_____________________ __________________________________
___________________________ __________________________________
Charges for such service(s) is/are to be paid directly by the TENANT to the utility company/companies providing such service(s). If the Utility Allowance exceeds the required TENANT's share of the total housing expense per HUD-approved schedule and criteria, the LANDLORD shall pay the TENANT the amount of such excess on behalf of the Government upon receipt of funds from HUD for that purpose.
4. Of the total rent, $____(K)_______ shall be payable by or at the direction of HUD as project rental assistance payments on behalf of the TENANT, and $__________(L)_________ shall be payable by the TENANT. These amounts shall be subject to change by reason of changes in HUD’s requirements, changes in the TENANT's family income, family composition, or extent of exceptional medical or other unusual expenses in accordance with HUD-established schedules and criteria; or by reason of adjustment by HUD of any applicable Utility Allowance. Any such change shall be effective as of the date stated in a Notice to the TENANT.
5. The TENANT"S share of the rent shall be due and payable on or before the first day of each month at _____(M)____________________ to the LANDLORD, or to such other person or persons or at such places as the LANDLORD may from time to time designate in writing.
6. A security deposit in an amount equal to one month's total tenant payment or $50, whichever is greater, shall be required at the time of execution of this Agreement. Accordingly, TENANT hereby makes a deposit of $______(N)______________ against any damage except reasonable wear done to the premises by the TENANT, his/her family, guests, or agents, and agrees to pay when billed the full amount of any such damage in order that the deposit will remain intact. Upon termination of this Lease, the deposit is to be refunded to the TENANT or to be applied to any such damage or any rent delinquency. The LANDLORD shall comply with all State and local laws regarding interest payments on security deposits.
7. The LANDLORD shall not discriminate against the TENANT in the provision of services or in any other manner on the grounds of race, color, creed, religion, sex, familial status, national origin, or disability.
8. Unless terminated or modified as provided herein, this Agreement shall be automatically renewed for successive terms of one month each at the aforesaid rental, subject to adjustment as herein provided.
(a) The TENANT may terminate this Agreement at the end of the initial term or any successive term by giving 30 days written notice in advance to the LANDLORD. Whenever the LANDLORD has been in material noncompliance with this Agreement, the TENANT may in accordance with State law terminate this Agreement by so advising the LANDLORD in writing.
(b) The LANDLORD's right to terminate this Agreement is governed by the regulation of the Secretary at 24 CFR 891.430 and 24 CFR Part 247 (herein referred to as the HUD Regulation). The HUD Regulation provides that the LANDLORD may terminate this Agreement only under the following circumstances:
(1) The LANDLORD may terminate, effective at the end of the initial term or any successive term, by giving the TENANT notification in the manner prescribed in paragraph (a) below that the term of this Agreement is not renewed and this Agreement is accordingly terminated. This termination must be based upon either material noncompliance with this Agreement, material failure to carry out obligations under any State landlord or tenant act, or criminal activity that threatens the health, safety, or right to peaceful enjoyment of their residences by persons residing in the immediate vicinity of the premises-, any criminal activity that threatens the health or safety of any on-site property management staff responsible for managing the premises; or any drug-related criminal activity on or near such premises, engaged in by a resident, any member of the resident's household or other person under the resident's control; or other good cause. When the termination of the tenancy is based on other good cause, the termination notice shall so state, and the tenancy shall terminate at the end of a term and in accordance with the termination provisions of this Agreement, but in no case earlier than 30 days after receipt by the TENANT of the notice. Where the termination notice is based on material noncompliance with this Agreement or material failure to carry out obligations under a State landlord and tenant act, the time of service shall be in accordance with the previous sentence or State law, whichever is later.
(2) Notwithstanding subparagraph (1), whenever the TENANT has been in material noncompliance with this Agreement, the LANDLORD may, in accordance with State law and the HUD Regulation, terminate this Agreement by notifying the TENANT in the manner prescribed in paragraph (g) below.
(c) If the TENANT does not vacate the premises on the effective date of the termination of this Agreement, the LANDLORD may pursue all judicial remedies under State or local law for the eviction of the TENANT, and in accordance with the requirements in the HUD
Regulation.
(d) The term "material noncompliance with this Agreement" shall, in the case of the TENANT, include (1) one or more substantial violations of this Agreement, (2) repeated minor violations of this Agreement which disrupt the livability of the project, adversely affect the health or safety of any person or the right of any tenant to the quiet enjoyment of the leased premises and related project facilities, interfere with the management of the project or have an adverse financial effect on the project, (3) failure of the TENANT to timely supply all required information on the income and composition, or eligibility factors of the TENANT household (including failure to meet the disclosure and verification requirements for Social Security Numbers, as provided by 24 CFR Part 5, or knowingly providing incomplete or inaccurate information). Nonpayment of rent or any other financial obligation due under this Agreement (including any portion thereof) beyond any grace period permitted under State law shall constitute a substantial violation. The payment of rent or any other financial obligation due under this Agreement after the due date but within any grace period permitted under State law shall constitute a minor violation.
(e) The conduct of the TENANT cannot be deemed other good cause unless the LANDLORD has given the TENANT prior notice that said conduct shall henceforth constitute a basis for termination of this Agreement. Said notice shall be served on the TENANT in the manner
prescribed in paragraph (g) below.
(f) The LANDLORD's determination to terminate this Agreement shall be in writing and shall (1) state that the Agreement is terminated on a date specified therein, (2) state the reasons for the LANDLORD's action with enough specificity so as to enable the TENANT to prepare a defense, (3) advise the TENANT that if he or she remains in the leased unit on the date specified for termination, the LANDLORD may seek to enforce the termination only by bringing a judicial action at which time the TENANT may present a defense, and (4) be served on the TENANT in the manner prescribed by paragraph (g) below.
(g) The LANDLORD's termination notice shall be accomplished by (1) sending a letter by first class mail, properly stamped and addressed, to the TENANT at his/her address at the project, with a proper return address, and (2) serving a copy of said notice on any adult person answering the door at the leased dwelling unit, or if no adult responds, by placing the notice under or through the door, if possible, or else by affixing the notice to the door. Service shall not be deemed effective until both notices provided for herein have been accomplished. The date on which the notice shall be deemed to be received by the TENANT shall be the date on which the first class letter provided for in clause (1)herein is mailed, or the date on which the notice provided for in clause (2) is properly given, whichever is later.
(h) The LANDLORD may, with the prior approval of HUD, modify the terms and conditions of the Agreement, effective at the end of the initial term or a successive term, by serving an appropriate notice on the TENANT, together with the tender of a revised Agreement or an addendum revising the existing Agreement. Any increase in rent shall in all cases be governed by 24 CFR Part 245, and other applicable HUD regulations. This notice and tender shall be served on the TENANT (as defined in paragraph (g)) at least 30 days prior to the last date on which the TENANT has the right to terminate the tenancy without being bound by the codified terms and conditions. The TENANT may accept it by executing the tendered revised Agreement or addendum, or may reject it by giving the LANDLORD written notice at least 30 days prior to its effective date that he/she intends to terminate the tenancy. The TENANT's termination notice shall be accomplished by sending a letter by first class mail, properly stamped and addressed to the LANDLORD at his/her address.
(i) The LANDLORD may terminate this Agreement for the following reasons:
1. drug related criminal activity engaged in on or near
the premises, by any TENANT, household member, or guest, and any such activity engaged in on the premises by any other person under the tenant’s control;
2. determination made by the LANDLORD that a household member is illegally using a drug;
3. determination made by the LANDLORD that a pattern of illegal use of a drug interferes with the health, safety, or right to peaceful enjoyment of the premises by other residents;
4. criminal activity by a tenant, any member of the TENANT’S household, a guest or another person under the TENANT’S control:
(a) that threatens the health, safety, or right to peaceful enjoyment of the premises by other residents (including property management staff residing on the premises); or
(b) that threatens the health, safety, or right to peaceful enjoyment of their residences by persons residing in the immediate vicinity of the premises;
5. if the TENANT is 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 flees, or that in the case of the State of New Jersey, is a high misdemeanor; or
6. if the TENANT is violating a condition of probation or parole under Federal or State law;
7. determination made by the LANDLORD that a household member’s abuse or pattern of abuse of alcohol threatens the health, safety, or right to peaceful enjoyment of the premises by other residents;
8. if the LANDLORD determines that the tenant, any member of the TENANT’S household, a guest or another person under the TENANT’S control has engaged in criminal activity, regardless of whether the tenant, any member of the tenant’s household, a guest or another person under the tenant’s control has been arrested or convicted for such activity.
9. TENANT agrees that the family income, family composition and other eligibility requirements shall be deemed substantial and material obligations of his/her tenancy with respect to the amount of rental he/she will be obligated to pay and his/her right of occupancy, and that a recertification of income shall be made to the LANDLORD annually from the date of this lease in accordance with HUD regulations and requirements.
10. TENANT agrees that the TENANT's share of the monthly rental payment is subject to adjustment by the LANDLORD to reflect income changes which are disclosed on any of TENANT's recertification of income, and TENANT agrees to be bound by such adjustment. LANDLORD agrees to give 30 days written notice of any such adjustment to the TENANT, by an addendum to be made a part of this lease, stating the amount of the adjusted monthly rental which the TENANT will be required to pay.
11. The TENANT shall not assign this lease, sublet the premises, give accommodation to any roomers or lodgers, or permit the use of the premises for any purpose other than as a private dwelling solely for the TENANT and his/her family. The TENANT agrees to reside in this unit and agrees that this unit shall be the TENANT's and his/her family's only place of residence.
12. TENANT agrees to pay the LANDLORD any rental which should have been paid but for (a) TENANT's misrepresentation in his/her initial income certification or recertification, or in any other information furnished to the LANDLORD or (b) TENANT's failure to supply income recertification when required or to supply information requested by the LANDLORD.
13. TENANT for himself/herself and his/her heirs, executors and administrators agrees as follows:
(a) To pay the rent herein stated promptly when due, without any deductions whatsoever, and without any obligation on the part of the LANDLORD to make any demand for the same;
(b) To keep the premises in a clean and sanitary condition, and to comply with all obligations imposed upon TENANT under applicable provisions of building and housing codes materially affecting health and safety with respect to said premises and appurtenances, and to save the LANDLORD harmless from all fines, penalties and costs for violations or noncompliance by TENANT with any of said laws, requirements or regulations, and from all liability arising out of any such violations or noncompliance.
(c) Not to use premises for any purpose deemed hazardous by insurance companies carrying insurance thereon;
(d) That if any damage to the property shall be caused by his/her acts or neglect, the TENANT shall forthwith repair such damage at his/her own expense, and should the TENANT fall or refuse to make such repairs within a reasonable time after the occurrence of such damage, the LANDLORD may, at his/her option, make such repairs and charge the cost thereof to the TENANT, and the TENANT shall thereupon reimburse the LANDLORD for the total cost of the damages so caused;
(e) To permit the LANDLORD, or his/her agents, or any representative of any holder of a mortgage on the property, or when authorized by the LANDLORD, the employees of any contractor, utility company, municipal agency or others, to enter the premises for the
purpose of making reasonable inspections and repairs and replacements"
(f) Not to install a washing machine, clothes dryer, or air conditioning unit in the apartment without the prior approval of the LANDLORD, and
(g) To permit the LANDLORD or his/her agents to bring appropriate legal action in the event of a breach or threatened breach by the TENANT of any of the covenants or provisions of this lease.
14. The TENANT is permitted to keep common household pets in his/her dwelling unit(subject to the provisions in 24 CFR Part 5 Subpart C) and the pet rules promulgated under 24 CFR 5.315). Any pet rules promulgated by the LANDLORD are attached hereto and incorporated hereby. The TENANT agrees to comply with these rules. A violation of these rules may be grounds for removal of the pet or termination of the TENANT's (pet owner's) tenancy (or both), in accordance with the provisions of 24 CFR Part 5, Subpart C and applicable regulations and State or local law. These regulations include 24 CFR Part 247 (Evictions From Certain Subsidized and HUD-Owned Projects) and provisions governing the termination of tenancy under the Project Rental Assistance Contract.
Note: The Part 5 Pet Rules do not apply to an animal used by a Tenant or visitor that is needed as a reasonable accommodation for the Tenant’s or visitor’s disability.
[Optional] The LANDLORD may after reasonable notice to the TENANT and during reasonable hours, enter and inspect the premises. Entry and inspection is permitted only if the LANDLORD has received a signed, written complaint alleging (or the LANDLORD has reasonable grounds to
believe) that the conduct or condition of a pet in the dwelling unit constitutes, under applicable State or local law, a nuisance or a threat to the health or safety of the occupants of the project or other persons in the community where the project is located.
If there is not State or local authority (or designated agent of such an authority) authorized under applicable State or local law to remove a pet that becomes vicious, displays symptoms of severe illness, or demonstrates other behavior that constitutes an immediate threat to the health or safety of the tenancy as a whole, the LANDLORD may enter the premises (if necessary), remove the pet, and take such action with respect to the pet as may be permissible under State and local law, which may include placing it in a facility that will provide care and shelter for a period not to exceed 30 days. The LANDLORD shall enter the premises and remove the pet or take such other permissible action only if the LANDLORD requests the TENANT (pet owner) to remove the pet from the project immediately, and the TENANT (pet owner) refuses to do so, or if the LANDLORD is unable to contact the TENANT (pet owner) to make a removal request. The cost of the animal care facility shall be paid as provided in 24 CFR 5.363.
15. The LANDLORD agrees to comply with the requirement of all applicable Federal, State, and local laws, including health, housing and building codes and to deliver and maintain the premises in safe, sanitary decent condition.
16. The TENANT, by the execution of this Agreement, admits that the dwelling unit described herein has been inspected by him/her and meets with his/her approval. The TENANT acknowledges hereby that said premises have been satisfactorily completed and that the LANDLORD will not be required to repaint, replaster, or otherwise perform any other work, labor, or service which it has already performed for the TENANT. The TENANT admits that he/she has inspected the unit and found it to be in good and tenantable condition, and agrees that at the end of the occupancy hereunder to deliver up and surrender said premises to the LANDLORD in as good condition as when received, reasonable wear and tear excepted.
17. No alteration, addition, or improvements shall be made in or to the premises without the prior consent of the LANDLORD in writing. The LANDORD agrees to provide reasonable accommodation to an otherwise eligible tenant’s disability, including making changes to rules, policies, or procedures, and making and paying for structural alterations to a unit or common areas. The Landlord is not required to provide accommodations that constitute a fundamental alteration to the Landlord’s program or which would pose a substantial financial and administrative hardship. See the regulations at 24 CFR Part 8. In addition, if a requested structural modification does pose a substantial financial and administrative hardship, the Landlord must then allow the tenant to make and pay for the modification in accordance with the Fair Housing Act.
18. TENANT agrees not to waste utilities furnished by the LANDLORD; not to use utilities or equipment for any improper or unauthorized purpose; and not to place fixtures, signs, or fences in or about the premises without the prior permission of the LANDLORD in writing. If such permission is obtained, TENANT agrees, upon termination of the lease, to remove any fixtures, signs of fences, at the option of the LANDLORD, without damage to the premises.
19. This Agreement shall be subordinate in respect to any mortgages that are now on or that hereafter may be placed against said premises, and the recording of such mortgage or mortgages shall have preference and precedence and be superior and prior in lien to this Agreement, and the TENANT agrees to execute any such instrument without cost, which may be deemed necessary or desirable to further effect the subordination of this Agreement to any such mortgage or mortgages and a refusal to execute such instruments shall entitle the LANDLORD, or the LANDLORD's assigns and legal representatives to the option of canceling this Agreement without incurring any expense or damage, and the term hereby granted is expressly limited accordingly.
20. Failure of the LANDLORD to insist upon the strict performance of the terms, covenants, agreements and conditions herein contained, or any of them, shall not constitute or be construed as a waiver or relinquishment of the LANDLORD's right thereafter to enforce any such term, covenant, agreement, or condition, but the same shall continue in full force and effect.
21. In return for the TENANT's continued fulfillment of the terms and conditions of this Agreement, the LANDLORD covenants that the TENANT may at all times, while this Agreement remains in effect, have and enjoy for his/her sole use and benefit the above described property.
22. Tenant Income Verification: The TENANT must promptly provide the LANDLORD with any letter or other notice by HUD to a member of the family that provides information concerning the amount or verification of family income in accordance with HUD requirements.
23. Tenants’ rights to organize: LANDLORD agrees to allow TENANT organizers to conduct on the property the activities related to the establishment or operation of a TENANT organization set out in accordance with HUD requirements.
Interim recertifications:
a. The TENANT agrees to advise the LANDLORD immediately if any of the following changes occur:
1. Any household member moves out of the unit.
2. Any adult member of the household who was reported as unemployed on the most recent certification or recertification obtains employment.
3. The household’s income cumulatively increases by $200 or more a month.
b. The TENANT may report any decrease in income or any change in other factors considered in calculating the Tenant’s rent. Unless the LANDLORD has confirmation that the decrease in income or change in other factors will last less than one month, the LANDLORD will verify the information and make the appropriate rent reduction. However, if the TENANT’S income will be partially or fully restored within two months, the LANDLORD may delay the certification process until the new income is known, but the rent reduction will be retroactive and LANDLORD may not evict the TENANT for nonpayment of rent due during the period of the reported decrease and the completion of the certification process. The TENANT has thirty days after receiving written notice of any rent due for the above described time period to pay or the LANDLORD can evict for nonpayment of rent.
c. If the TENANT does not advise the LANDLORD of the interim changes concerning household members or increase in income, the TENANT may be subject to eviction. The LANDLORD may evict TENANT only in accordance with the time frames and administrative procedures set forth in HUD’s regulations, handbooks and instructions on the administration of multifamily subsidy programs.
d. The TENANT may request to meet with the LANDLORD to discuss how any change in income or other factors affected his/her rent or assistance payment, if any. If the TENANT requests such a meeting, the LANDLORD agrees to meet with the TENANT and explain how the TENTANT’S rent or assistance payment, if any, was computed.
25. Attachments to the Agreement: The Tenant certifies that he/she has received a copy of the Agreement and the following attachments to the Agreement and understands that these attachments are part of the Agreement.
a. Attachment No. 1 - Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures, form HUD-50059**
b. Attachment No. 2 - Unit Inspection Report.
c. Attachment No. 3 - House Rules (if any).
d. Attachment No. 4 – Pet Rules
WITNESS:
_____________(O)_____________________LANDLORD
_________________
Date By: ________________________________
_________________ ____________(O)_____________________TENANT
Date
_________________ ___________________________________
_________________ ___________________________________
Public reporting burden - HUD is not requesting approval of any burden hours for the model leases since use of leases are a standard business practice in the housing rental industry. This information is required to obtain benefits and is voluntary. HUD may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. The request and required supporting documentation are sent to HUD or the Contract Administrator (CA) for approval. The lease is a contract between the owner of the project and the tenant(s) that explains the terms for residing in the unit. Leases are a standard business practice in the housing rental industry. Owners are required to use the HUD model lease which includes terms normally covered by leases used in the housing rental industry plus terms required by HUD for the program under which the project was built and/or the program providing rental assistance to the tenants.
This information is authorized by 24 CFR 5.360, 236.750, 880.606, 883.701, 884.215, 886.127, 886.327, 891.425, 891.625 and 891.765 cover lease requirements and provisions. This information is considered non-sensitive and does no require any special protection.
Appendix 4-D
Model Lease for Section 811 PRACs
SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES
This agreement made and entered into this _____(A)________ day of ______________________, 20___, between ________(B)___________________
as LANDLORD, and ___________(C)________________________as Tenant.
WITNESSETH:
WHEREAS, the LANDLORD is the Mortgagor under a Mortgage covering the project in which the hereinafter described unit is situated, which secures a capital advance made by the Secretary of Housing and Urban Development (HUD) (hereinafter "Secretary") pursuant to Section 811 of the National Affordable Housing Act, as amended by the Housing and Community Development Act of 1992 and
WHEREAS, the LANDLORD has entered into a Project Rental Assistance Contract (PRAC) with the Secretary.
WHEREAS, pursuant to a Regulatory Agreement entered into between the LANDLORD and the Secretary, the LANDLORD has agreed to limit occupancy of the project to persons with disabilities as defined in Section 811 of the National Affordable Housing Act, as amended by the Housing and Community Development Act of 1992 and applicable HUD regulations under criteria for eligibility of TENANTS for admission to assisted units and conditions of continued occupancy in accordance with the terms and provisions of the PRAC Contract, and
NOW THEREFORE,
1. The LANDLORD leases to the TENANT, and the TENANT leases from the LANDLORD dwelling unit in the project known as _____________(D)_______________________ for a term of one year commencing on the _____ day of ________(E)___________________, 20__, and ending on the _____ day of _________(F)____________, 20__.
2. The total rent (Contract Rent) shall be $___(G)_______ per month.
3. The total rent specified in Paragraph 2, above, shall include the following utilities:
_________(H)_______________ ____________________________
(If the total rent includes all utilities, enter "ALL"; where TENANTS pay some or all utilities, enter the following additional paragraph as 3a.)
The total rent stipulated herein does not include the cost of the following utility service(s), for which the Utility Allowance is $_(I)___.
____________(J)____________ _____________________________
________________________ _____________________________
Charges for such service(s) are to be paid directly by the TENANT to the utility company/companies providing such service(s). If the Utility Allowance exceeds the required TENANT's share of the total housing expense per HUD-approved schedule and criteria, the LANDLORD shall pay the TENANT the amount of such excess on behalf of the Government upon receipt of funds from HUD for that purpose.
4. Of the total rent, $___(K)______ shall be payable by or at the direction of HUD as project rental assistance payments on behalf of the TENANT, and $______(L)______ shall be payable by the TENANT. These amounts shall be subject to change by reason of changes in requirements, changes in the TENANT's family income, family composition or extent of exceptional medical or other unusual expenses in accordance with HUD-established schedules and criteria; or by reason of adjustment by HUD of any applicable Utility Allowance. Any such change shall be effective as of the date stated in a Notice to the TENANT.
5. The TENANT's share of the rent shall be due and payable on or before the first day of each month at ______(M)_____________________ to the LANDLORD, or to such other person or persons or at such places as the LANDLORD may from time to time designate in writing.
6. A security deposit in an amount equal to one month's total TENANT payment or $50, whichever is greater, shall be required at the time of execution of this Agreement, Accordingly, TENANT hereby makes a deposit of $____(N)______________ against any damage except reasonable wear done to the premises by the TENANT, his/her family, guests, or agents; and agrees to pay when billed the full amount of any such damage in order that the deposit will remain intact. Upon termination of this Lease, the deposit is to be refunded to the TENANT or to be applied to any such damage or any rent delinquency. The LANDLORD shall comply with all State and local laws regarding interest payments on security deposits.
7. The LANDLORD shall not discriminate against the TENANT in the provision of services or in any other manner on the grounds of race, color, creed, religion, sex, familial status, national origin, or disability.
8. Unless terminated or modified as provided herein, this Agreement shall be automatically renewed for successive terms of One month each at the aforesaid rental, subject to adjustment as herein provided.
(a) The TENANT may terminate this Agreement at the end of the initial term or any successive term by giving 30 days written notice in advance to the LANDLORD. Whenever the LANDLORD has been in material noncompliance with this Agreement, the TENANT may in accordance with State law terminate this Agreement by so advising the LANDLORD in writing.
(b) The LANDLORD's right to terminate this Agreement is governed by the regulation of the Secretary at 24 CFR 891.430 and Part 247 (herein referred to as the HUD Regulation). The HUD Regulation provides that the LANDLORD may terminate this Agreement only under the following circumstances:
(1) The LANDLORD may terminate, effective at the end of the initial term or any successive term, by giving the TENANT notification in the manner prescribed in paragraph (g)below that the term of this Agreement is not renewed and this Agreement is accordingly terminated. This termination must be based upon either material noncompliance with this Agreement, material failure to carry out obligations under any State landlord or tenant act, or criminal activity that threatens the health, safety, or right to peaceful enjoyment of their residences by persons residing in the immediate vicinity of the premises; any criminal activity that threatens the health or safety of any on-site project management staff responsible for managing the premises, or any drug-related criminal activity on or near such premises, engaged in by a resident, any member of the resident's household or other person under the resident's control; or other good cause. When the termination of the tenancy is based on other good cause, the termination notice shall so state, at the end of a term and in accordance with the termination provisions of this Agreement, but in no case earlier than 30 days after receipt by the TENANT of the notice. Where the termination notice is based on material noncompliance with this Agreement or material failure to carry out obligations under a State landlord and tenant act, the time of service shall be in accordance with the previous sentence or State law, whichever is later.
(2) Notwithstanding subparagraph (1), whenever the TENANT has been in material noncompliance with this Agreement, the LANDLORD may, in accordance with State law and the HUD Regulation, terminate this Agreement by notifying the TENANT in the manner prescribed in paragraph (g) below.
(c) If the TENANT does not vacate the premises on the effective date of the termination of this Agreement, the LANDLORD may pursue all judicial remedies under State or local law for the eviction of the TENANT, and in accordance with the requirements in the HUD Regulation.
(d) The term "material noncompliance with this Agreement" shall, in the case of the TENANT, include (1) one or more substantial violations of this Agreement, (2) repeated minor violations of this Agreement which disrupt the livability of the project, adversely affect the health or safety of any person or the right of any tenant to the quiet enjoyment of the leased premises and related project facilities, interfere with the management of the project or have an adverse financial effect on the project, (3) failure of the TENANT to timely supply all required information on the income and composition, or eligibility factors of the TENANT household (including failure to meet the disclosure and verification requirements for Social Security Numbers, as provided by 24 CFR Part 5, Subpart B or knowingly providing incomplete or inaccurate information). Nonpayment of rent or any other financial obligation due under this Agreement (including any portion thereof) beyond any grace period permitted under State law shall constitute a substantial violation. The payment of rent or any other financial obligation due under this Agreement after the due date but within any grace period permitted under State law shall constitute a minor violation.
(e) The conduct of the TENANT cannot be deemed other good cause unless the LANDLORD has given the TENANT prior notice that said conduct shall henceforth constitute a basis for termination of this Agreement. Said notice shall be served on the TENANT in the manner prescribed in paragraph (g) below.
(f) The LANDLORD's determination to terminate this Agreement shall be in writing and shall (1) state that the Agreement is terminated on a date specified therein, (2) state the reasons for the LANDLORD's action with enough specificity so as to enable the TENANT to prepare a defense, (3) advise the TENANT that is he or she remains in the leased unit on the date specified for termination, the LANDLORD may seek to enforce the termination only by bringing a judicial action at which time the TENANT may present a defense, and (4) be served on the TENANT in the manner prescribed by paragraph (g) below.
(g) The LANDLORD's termination notice shall be accomplished by (1) sending a letter by first class mail, properly stamped and addressed, to the TENANT at his/her address at the project, with a proper return address, and (2) serving a copy of said notice on any adult person answering the door at the leased dwelling unit, or if no adult responds, by placing the notice under or through the door, if possible, or else by affixing the notice to the door. Service shall not be deemed effective until both notices provided for herein have been accomplished. The date on which the notice shall be deemed to be received by the TENANT shall be the date on which the first class letter provided for in clause (1) herein is mailed, or the date on which the notice provided for in clause (2) is properly given, whichever is later.
(h) The LANDLORD may, with the prior approval of HUD, modify the terms and conditions of the Agreement, effective at the end of the initial term or a successive term, by serving an appropriate notice on the TENANT, together with the tender of a revised Agreement or an addendum revising the existing Agreement. Any increase in rent shall, in all cases, be governed by 24 CFR Part 245, and other applicable HUD regulations. This notice and tender shall be served on the TENANT (as defined in paragraph (g)) at least 30 days prior to the last date on which the TENANT has the right to terminate the tenancy without being bound by the codified terms and conditions. The TENANT may accept it by executing the tendered revised agreement or addendum, or may reject it by giving the LANDLORD written notice at least 30 days prior to its effective date that he/she intends to terminate the tenancy. The TENANT's termination notice shall be accomplished by sending a letter by first class mail, properly stamped and addressed to the LANDLORD at his/her address.
(i) The LANDLORD may terminate this Agreement for the following reasons:
1. drug related criminal activity engaged in on or near the premises, by any TENANT, household member, or guest, and any such activity engaged in on the premises by any other person under the tenant’s control;
2. determination made by the LANDLORD that a household member is illegally using a drug;
3. determination made by the LANDLORD that a pattern of illegal use of a drug interferes with the health, safety, or right to peaceful enjoyment of the premises by other residents;
4. criminal activity by a tenant, any member of the TENANT’S household, a guest or another person under the TENANT’S control:
(a) that threatens the health, safety, or right to peaceful enjoyment of the premises by other residents (including property management staff residing on the premises); or
(b) that threatens the health, safety, or right to peaceful enjoyment of their residences by persons residing in the immediate vicinity of the premises;
5. if the TENANT is 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 flees, or that in the case of the State of New Jersey, is a high misdemeanor; or
6. if the TENANT is violating a condition of probation or parole under Federal or State law;
7. determination made by the LANDLORD that a household member’s abuse or pattern of abuse of alcohol threatens the health, safety, or right to peaceful enjoyment of the premises by other residents;
8. if the LANDLORD determines that the tenant, any member of the TENANT’S household, a guest or another person under the TENANT’S control has engaged in criminal activity, regardless of whether the tenant, any member of the tenant’s household, a guest or another person under the tenant’s control has been arrested or convicted for such activity.
9. TENANT agrees that the family income, family composition and other eligibility requirements shall be deemed substantial and material obligations of his/her tenancy with respect to the amount of rental he/she will be obligated to pay and his/her right of occupancy, and that a recertification of income shall be made to the LANDLORD annually from the date of this lease in accordance with HUD regulations and requirements.
10. TENANT agrees that the TENANT's share of the monthly rental payment is subject to adjustment by the LANDLORD to reflect income changes which are disclosed on any of TENANT's recertification of income, and TENANT agrees to be bound by such adjustment. LANDLORD agrees to give 30 days written notice of any such adjustment to the TENANT, by an addendum to be made a part of this lease, stating the amount of the adjusted monthly rental which the TENANT will be required to pay.
11. The TENANT shall not assign this lease, sublet the premises, give accommodation to any roomers or-lodgers, or permit the use of the premises for any purpose other than as a private dwelling solely for the TENANT and his/her family. The TENANT agrees to reside in this unit and agrees that this unit shall be the TENANT's and his/her family's only place of residence.
12. TENANT agrees to pay the LANDLORD any rental which should have been paid but for (a) TENANT's misrepresentation in his/her initial income certification or recertification, or in any other information furnished to the LANDLORD or (b) TENANT's failure to supply income recertification when required or to supply information requested by the LANDLORD.
13. TENANT for himself/herself and his/her heirs, executors and administrators agrees as follows:
(a) To pay the rent herein stated promptly when due, without any deductions whatsoever, and without any obligation on the part of the LANDLORD to make any demand for the same;
(b) To keep the premises in a clean and sanitary condition, and to comply with all obligations imposed upon TENANTS under applicable provisions of building and housing codes materially affecting health and safety with respect to said premises and appurtenances, and to save the LANDLORD harmless from all fines, penalties and costs for violations or noncompliance by TENANT with any of said laws, requirements or regulations, and from all liability arising out of any such violations or noncompliance.
(c) Not to use premises for any purpose deemed hazardous by insurance companies carrying insurance thereon;
(d) That if any damage to the property shall be caused by his/her acts or neglect, the TENANT shall forthwith repair such damage at his/her own expense, and should the TENANT fall or refuse to make such repairs within a reasonable time after the occurrence of such damage, the LANDLORD may, at his/her option, make such repairs and charge the cost thereof to the TENANT, and the TENANT shall thereupon reimburse the LANDLORD for the total cost of the damages so caused,
(e) To permit the LANDLORD, or his/her agents, or any representative of any holder of a mortgage on the property, or when authorized by the LANDLORD, the employees of any contractor, utility company, municipal agency or others, to enter the premises for the purpose of making reasonable inspections and repairs and replacements,
(f) Not to install a washing machine, clothes dryer, or air conditioning unit in the apartment without the prior approval of the LANDLORD; and
To permit the LANDLORD or his/her agents to bring appropriate legal action in the event of a breach or threatened breach by the TENANT of any of the covenants or provisions of this lease.
14. The TENANT is permitted to keep common household pets in his/her dwelling unit or in an independent living facility (subject to the provisions in 24 CFR Part 5, Subpart C) and the et rules promulgated under 24 CFR 5.315). Project owners may limit the number of common household pets to one pet in each group home. (24 CFR 5.318(b)(ii)). Any pet rules promulgated by the LANDLORD are attached hereto and incorporated hereby. The TENANT agrees to comply with these rules. A violation of these rules may be grounds for removal of the pet or termination of the TENANT's (pet owner's) tenancy (or both), in accordance with the provisions of 24 CFR Part 5, Subpart C, and applicable regulations and State or local law. These regulations include 24 CFR Part 247 (Evictions From Certain Subsidized and HUD-Owned Projects) and provisions governing the termination of tenancy under the Project Rental Assistance Contract.
Note: The Part 5 Pet Rules do not apply to an animal used by a Tenant or visitor that is needed as a reasonable accommodation for the Tenant’s or visitor’s disability.
[Optional] The LANDLORD may after reasonable notice to the TENANT and during reasonable hours, enter and inspect the premises. Entry and inspection is permitted only if the LANDLORD has received a signed, written complaint alleging (or the LANDLORD has reasonable grounds to believe) that the conduct or condition of a pet in the dwelling unit constitutes, under applicable State or local law, a nuisance or a threat to the health or safety of the occupants of the project or other persons in the community where the project is located.
If there is not State or local authority (or designated agent of such an authority) authorized under applicable State or local law to remove a pet that becomes vicious, displays symptoms of severe illness, or demonstrates other behavior that constitutes an immediate threat to the health or safety of the tenancy as a whole, the LANDLORD may enter the premises (if necessary), remove the pet, and take such action with respect to the pet as may be permissible under State and local law, which may include placing it in a facility that will provide care and shelter for a period not to exceed 30 days. The LANDLORD shall enter the premises and remove the pet or take such other permissible action only if the LANDLORD requests the TENANT (pet owner) to remove the pet from the project immediately, and the TENANT (pet owner) refuses to do so, or if the LANDLORD is unable to contact the TENANT (pet owner) to make a removal request. The cost of the animal care facility shall be paid as provided in 24 CFR 5.363. (NOTE: Paragraph 14 does not apply to individual residents of 811 Group Homes.
15. The LANDLORD agrees to comply with the requirement of all applicable Federal, State, and local laws, including health, housing and building codes and to deliver and maintain the premises in safe, sanitary decent condition.
16. The TENANT, by the execution of this Agreement, admits that the dwelling unit described herein has been inspected by him/her and meets with his/her approval. The TENANT acknowledges hereby that said premises have been satisfactorily completed and that the LANDLORD will not be required to repaint, replaster, or otherwise perform any other work, labor, or service which it has already performed for the TENANT. The TENANT admits that he/she has inspected the unit and found it to be in good and tenantable condition, and agrees that at the end of the occupancy hereunder to deliver up and surrender said premises to the LANDLORD in as good condition as when received, reasonable wear and tear excepted.
17. No alteration, addition, or improvements shall be made in or to the premises without the prior consent of the LANDLORD in writing. The LANDORD agrees to provide reasonable accommodation to an otherwise eligible tenant’s disability, including making changes to rules, policies, or procedures, and making and paying for structural alterations to a unit or common areas. The Landlord is not required to provide accommodations that constitute a fundamental alteration to the Landlord’s program or which would pose a substantial financial and administrative hardship. See the regulations at 24 CFR Part 8. In addition, if a requested structural modification does pose a substantial financial and administrative hardship, the Landlord must then allow the tenant to make and pay for the modification in accordance with the Fair Housing Act.
18. TENANT agrees not to waste utilities furnished by the LANDLORD; not to use utilities or equipment for any improper or unauthorized purpose, and not to place fixtures, signs, or fences in or about the premises without the prior permission of the LANDLORD in writing. If such permission is obtained, TENANT agrees, upon termination of the lease, to remove any fixtures, signs of fences, at the option of the LANDLORD, without damage to the premises.
19. This Agreement shall be subordinate in respect to any mortgages that are now on or that hereafter may be placed against said premises, and the recording of such mortgage or mortgages shall have preference and precedence and be superior and prior in lien to this Agreement, and the TENANT agrees to execute any such instrument without cost, which may be deemed necessary or desirable to further effect the subordination of this Agreement to any such mortgage or mortgages and a refusal to execute such instruments shall entitle the LANDLORD, or the LANDLORD's assigns and legal representatives to the option of canceling this Agreement without incurring any expense or damage, and the term hereby granted is expressly limited accordingly.
20. Failure of the LANDLORD to insist upon the strict performance of the terms, covenants, agreements and conditions herein contained, or any of them, shall not constitute or be construed as a waiver or relinquishment of the LANDLORD's right thereafter to enforce any such term, covenant, agreement, or condition, but the same shall continue in full force and effect.
21. In return for the TENANT's continued fulfillment of the terms and conditions of this Agreement, the LANDLORD covenants that the TENANT may at all times, while this Agreement remains in effect, have and enjoy for his/her sole use and benefit the above described property.
22. Tenant Income Verification: The TENANT must promptly provide the LANDLORD with any letter or other notice by HUD to a member of the family that provides information concerning the amount or verification of family income in accordance with HUD requirements.
23. Tenants’ rights to organize: LANDLORD agrees to allow TENANT organizers to conduct on the property the activities related to the establishment or operation of a TENANT organization set out in accordance with HUD requirements.
Interim recertifications:
a. The TENANT agrees to advise the LANDLORD immediately
if any of the following changes occur.
1. Any household member moves out of the unit.
2. Any adult member of the household who was reported as unemployed on the most recent certification or recertification obtains employment.
3. The household’s income cumulatively increases by $200 or more a month.
b. The TENANT may report any decrease in income or any change in other factors considered in calculating the Tenant’s rent. Unless the LANDLORD has confirmation that the decrease in income or change in other factors will last less than one month, the LANDLORD will verify the information and make the appropriate rent reduction. However, if the TENANT’S income will be partially or fully restored within two months, the LANDLORD may delay the certification process until the new income is known, but the rent reduction will be retroactive and LANDLORD may not evict the TENANT for nonpayment of rent due during the period of the reported decrease and the completion of the certification process. The TENANT has thirty days after receiving written notice of any rent due for the above described time period to pay or the LANDLORD can evict for nonpayment of rent.
c. If the TENANT does not advise the LANDLORD of the interim changes concerning household members or increase in income, the TENANT may be subject to eviction. The LANDLORD may evict TENANT only in accordance with the time frames and administrative procedures set forth in HUD’s regulations, handbooks and instructions on the administration of multifamily subsidy programs.
d. The TENANT may request to meet with the LANDLORD to discuss how any change in income or other factors affected his/her rent or assistance payment, if any. If the TENANT requests such a meeting, the LANDLORD agrees to meet with the TENANT and explain how the TENTANT’S rent or assistance payment, if any, was computed.
25. Attachments to the Agreement: The Tenant certifies that he/she has received a copy of the Agreement and the following attachments to the Agreement and understands that these attachments are part of the Agreement.
a. Attachment No. 1 - Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures, form HUD-50059**
b. Attachment No. 2 - Unit Inspection Report.
Attachment No. 3 - House Rules (if any).
d. Attachment No. 4 – Pet Rules
WITNESS:
_____________(O)_________________LANDLORD
_______________
Date By: __________________________
_______________ _____________(O)_________________TENANT
Date
_______________ ______________________________
_______________ ______________________________
Public reporting burden - HUD is not requesting approval of any burden hours for the model leases since use of leases are a standard business practice in the housing rental industry. This information is required to obtain benefits and is voluntary. HUD may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. The request and required supporting documentation are sent to HUD or the Contract Administrator (CA) for approval. The lease is a contract between the owner of the project and the tenant(s) that explains the terms for residing in the unit. Leases are a standard business practice in the housing rental industry. Owners are required to use the HUD model lease which includes terms normally covered by leases used in the housing rental industry plus terms required by HUD for the program under which the project was built and/or the program providing rental assistance to the tenants.
This information is authorized by 24 CFR 5.360, 236.750, 880.606, 883.701, 884.215, 886.127, 886.327, 891.425, 891.625 and 891.765 cover lease requirements and provisions. This information is considered non-sensitive and does no require any special protection.
Page 2 of 14 7/07
File Type | application/msword |
File Title | Handbook 4350 |
Author | ICF |
Last Modified By | h18889 |
File Modified | 2007-12-28 |
File Created | 2007-12-28 |