Form HUD 90105 c HUD 90105 c Appendix 4-C 202 PRAC Lease

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

202 PRAC LEASE
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.)

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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

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OMB Approval No. 2502-0204
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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
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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:
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OMB Approval No. 2502-0204
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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.

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OMB Approval No. 2502-0204
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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"

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OMB Approval No. 2502-0204
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(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
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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.

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OMB Approval No. 2502-0204
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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.
24.

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.

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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: ________________________________

_________________
Date

____________(O)_____________________TENANT

_________________

___________________________________

_________________

___________________________________

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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