HUD 90105b Appendix 4-B - Model Lease

OMB Approval No. 2502-0204
(Exp. 05/31/2011)

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
____________________________
Project Name
____________________________
HUD Project Number
Model Lease For Use Under:
(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,
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.
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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.

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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.

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(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;

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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

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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 HUDOwned 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

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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.

24. Interim recertifications.

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(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 HUDapproved 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.

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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
Agreementincluding 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.
28. 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.
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:
_______________P)______________________LANDLORD
_________________________
Date

By:_ _________________________________________

_________________________
Date

__________(P)_________________________TENANT

_________________________

_____________________________________________

Date

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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. 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, 891.425, 891.625 and 891.765 cover lease requirements and
provisions. This information is considered non-sensitive and does not require
any special protection.

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