Form Changes

OMB Approval No. 2502-XXXXX
(exp. XX/XX/XXXX)

Part I of the
Agreement to Enter into a
Section 811 Rental Assistance
Contract
For use under Section 811 of the National Affordable
Housing Act
PRA Project No.:

811 PRA Contract Number:

FHA Project No. (if applicable):

This Agreement to Enter into a Section 811 Rental Assistance Contract (Agreement) is entered into between the
____________________________________ (Grantee) and ____________________________________________
__________________________________________________________________________________________________ (Owner). The
Owner proposes to complete a housing project or commit an existing housing project as described in the approved Application. Upon the
acceptable completion of the project or start-up of the Section 811 Project Rental Assistance (PRA) Program, the Owner and Grantee will
enter into a Section 811 Rental Assistance Contract (Contract) for the purpose of making rental assistance payments to enable eligible
Extremely Low-Income Households to occupy units in the project.
1.1 Significant Dates, Contents, and Scope of Agreement.
(a) Effective Date of Agreement:(mm/dd/yyyy) _______________________ .
(b) Contents of Agreement. This Agreement consists of Part Iand the following exhibits:
(1) Exhibit A: Rental Assistance Contract, Part I and II (HUD-92235-PRA and HUD-92237-PRA) to be executed upon
acceptable completion of the project or start-up of the Section 811 PRA Program.
.
(2) Exhibit B: The schedule of Davis-Bacon wage rates, if applicable.
.
(3) Additional Exhibits: Specify additional exhibits, if any. If none, insert "None."

(c) Scope of Agreement. This Agreement, including the exhibits, whether attached or incorporated by reference, comprises the entire
agreement between the Owner and Grantee with respect to the matters contained in it. Neither party is bound by any
representations or agreements of any kind except as contained in this Agreement, any applicable regulations, and agreements
entered into in writing by the parties which are consistent with this Agreement. Nothing contained in this Agreement shall create of
affect any relationship between Grantee and any contractors or subcontractors employed by the Owner in the completion of the
project.

1.2 Grantee Assurance. The approval of this Agreement by Grantee is an assurance by the Grantee to the Owner that:
(a) The faith of the Grantee is solemnly pledged to the payment of rental assistance payments pursuant to the Contract,
and
(b) HUD has obligated funds for these payments.

form HUD-92240-PRA

Grantee

Owner

Signature

By

Signature

By
Name

Name

Official Title

Official Title

Date (mm/dd/yyyy)

Date (mm/dd/yyyy)

Public reporting burden for this collection of information is estimated to average 4 hours per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. HUD may not
collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number.
This information collection is necessary to ensure that viable projects are developed. It is important to obtain information from applicants to assist HUD in
determining if nonprofit organizations initially funded continue to have the financial and administrative capacity needed to develop a project and that the
project design meets the needs of the residents. The Department will use this information to determine if the project meets statutory requirements with
respect to the development and operation of the project, as well as ensuring the continued marketability of the projects. This information is required in
order to obtain benefits. This information is considered non-sensitive and no assurance of confidentiality is provided.

Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802

form HUD-92240-PRA

Part I of the
Rental Assistance Contract
Section 811 Project Rental Assistance (PRA Demo)
Demonstration

U.S. Department of Housing
and Urban Development
Office of Housing
Federal Housing Commissioner

OMB Approval No. 2502-XXXXX
(exp. XX/XX/XXXX)

Public reporting burden for this collection of information is estimated to average 40 hours per response, including the time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of
information. HUD may not collect this information, and you are not required to complete this form, unless it displays a currently valid
OMB control number.
This information collection is necessary to ensure that viable projects are developed. It is important to obtain information from applicants
to assist HUD in determining if nonprofit organizations initially funded continue to have the financial and administrative capacity needed
to develop a project and that the project design meets the needs of the residents. The Department will use this information to determine if
the project meets statutory requirements with respect to the development and operation of the project, as well as ensuring the continued
marketability of the projects. This information is required in order to obtain benefits. This information is considered non-sensitive and no
assurance of confidentiality is provided.
PRA Project Number:

811 PRA Contract Number:

FHA Project Number (if applicable):

This Rental Assistance Contract (RAC) is entered into by and between ___________________________
(Grantee), and __________________________ (Owner Legal Name), for rental assisted units at
___________________________ (Project Name)).
Statutory and Administrative Authority. Section 811 of the Cranston-Gonzalez National Affordable Housing Act of 1990,
42.U.S.C. 8013, as amended by the Frank Melville Supportive Housing Investment Act of 2010, Pub. L. No. 111-374; the
Department of Housing and Urban Development Act, 42 U.S.C. 3531, et seq, and pursuant to the applicable HUD
administrative and regulatory requirements.
Purpose. The purpose of this Contract is to provide Project Rental Assistance Payments on behalf of Eligible Families
leasing Decent, Safe and Sanitary Assisted Units from the Owner.

1.1 Significant Dates and Other Items; Contents and Scope of Contract.
(a) Effective Date of Contract:_________________________________________________________________,
(b) Fiscal Year. The ending date of each Fiscal Year shall be _________________________________________.
([Insert March 31, June 30, September 30, or December 31, as approved by HUD.) The Fiscal Year for the project shall
be the 12-month period ending on this date. However, the first Fiscal Year for the project is the period beginning with the
effective date of the Contract and ending on the last day of the Fiscal Year which is not less than 12 months after the
effective date. If the first Fiscal Year exceeds 12 months, the maximum total annual rental assistance payment in
section 1.1(c) will be adjusted by the addition of the pro rata amount applicable to the period of operation in excess of 12
months.
(c) Maximum Annual Contract Commitment.
(d) Project Address/Description: Include the projects street address, city, county, state and zip code, block and lot
number (if known), and any other information necessary to clearly designate the covered project:

(e) Statement of Services, Maintenance and Utilities Provided by the Owner:

(1) Services and Maintenance:

form HUD-92235-PRA (10/2013)

(2) Equipment:

(3) Utilities:

(4) Other:

(f) Contents of Contract. This Contract consists of Part I, Part II and the following Exhibits:
(1) Exhibit 1: The schedule showing the number of units by size (Contract Units) and their applicable rents (Contract
Rents).
(2) Exhibit 2: iREMS Data Record
(3) Exhibit 3: Grantee Affirmative Fair Housing Marketing Plan
(4) Exhibit 4: Use Agreement, HUD-92238-PRA
(5) Exhibit 5: Lease, HUD-92236-PRA
(6) Exhibit 6. Definitions
(7) Exhibit 7: Program Guidelines
Additional exhibits (Specify additional exhibits, if any, such as Special Conditions for Acceptance. If none, insert
“None”):

(g) Scope of Contract. This Contract, including the Exhibits, whether attached or incorporated by reference, comprises the
entire agreement between the Owner and the Grantee with respect to the matters contained in it. Neither party is bound
by any representations or agreements of any kind except as contained in this Contract, any applicable regulations, and
agreements entered into in writing by the parties which are not inconsistent with this Contract.
1.2 Term of Contract, Obligation to Operate Project for Full Term.
(a) Term of Contract. The term of this Contract for any unit shall be ______ years. (Note: Minimum contract term
shall be 20 years).
(b) Obligation to Operate Project for Full Term. The Owner agrees to continue operation of the Assisted Units
within the project in accordance with this Contract for the full term specified in paragraph (a).
1.3 Grantee Assurance.
(a) Grantee has or will receive funds from HUD, pursuant to Section 811 of the Cranston-Gonzalez National Affordable
Housing Act of 1990, as amended, and subject to appropriations, will provide Project Rental Assistance Payments for
the Assisted Units.
(b) Consistent with the Cooperative Agreement between HUD and the Grantee, Grantee shall provide Project Rental
Assistance Payments for Assisted Units to the Eligible Multifamily Owner, as identified under this Contract.

Page 2 of 9
form HUD-92235-PRA (10/2013)

1.4 No Recourse Provision.
(a) In the event HUD cancels the Cooperative Agreement with the Grantee of the Grantee cancels the Rental
Assistance Contract in accordance with the provisions of the RAC, the Owner agrees that it shall have no financial
or legal recourse against the grantee.”
Warning: 18 U.S.C. 1001 provides, among other things, that whoever knowingly and willfully makes or uses a document
or writing containing any false, fictitious, or fraudulent statement or entry, in any matter within the jurisdiction of any
department or agency of the United States, shall be fined not more than $10,000 or imprisoned for not more than five
years, or both.

Signature Page

Name of Owner (Print)
_____________________________________________________________________________________________
_____________________________________________________________________________________________
By: ____________________________________________________________________________________________
Signature of authorized representative
Name (Print) ____________________________________________________________________________________

Official Title (Print) ________________________________________________________________________________

Date: _________________________________________

Grantee
By: ____________________________________________________________________________________________
Signature of authorized representative
Name (Print) ____________________________________________________________________________________

Official Title (Print) ________________________________________________________________________________

Date: _________________________________________

Page 3 of 9
form HUD-92235-PRA (10/2013)

Exhibit 1
Schedule of Contract Units and Contract Rents 1
Number of
Contract Units

Number of
Bedrooms

Contract
Rent

Utility
Allowance

Gross
Rent

Maximum Annual Contract
Commitment
(Number of Contract Units
x Gross Rent)

Total Maximum Annual Contract Commitment: _________________
1

This Exhibit must be completed and attached to the Contract at the time the Agreement is executed. It may, however, be amended in
accordance with program rules before the Contract is executed.

Page 4 of 9
form HUD-92235-PRA (02/2014)

Exhibit 2
This Exhibit shows the initial and subsequent amounts of Contract and budget authority obligated for Project Number:
________________________.

Contract Authority
As of the Effective Date of Agreement

____________

Effective Date of Agreement Amendment: ______ Show Increase or Decrease
Revised Total

____________
____________

Effective Date of Agreement Amendment: ________ Show Increase or Decrease __________
Revised Total
__________
As of the Effective Date Contract

______________

Effective Date of Agreement Amendment: ________ Show Increase or Decrease __________
Revised Total
___________
Effective Date of Contract Amendment: ________ Show Increase or Decrease __________
Revised Total
__________

Exhibit 3
Affirmative Fair Housing Marketing Plan
Page 5 of 9
form HUD-92235-PRA (02/2014)

Page 6 of 9
form HUD-92235-PRA (02/2014)

Exhibit 4
Use Agreement

Exhibit 5
Lease
Page 7 of 9
form HUD-92235-PRA (02/2014)

Page 8 of 9
form HUD-92235-PRA (02/2014)

Exhibit 6
Definitions

Page 9 of 9
form HUD-92235-PRA (02/2014)

\OMB Approval No. 2502-XXXXX
(exp. XX/XX/XXXX)

811 Project Rental Assistance Lease
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 a multifamily property receiving federal
project-based rental assistance pursuant to Section 811 of the CranstonGonzalez National Affordable Housing Act, as amended by the Frank
Melville Supportive Housing Act of 2010.
WHEREAS, the LANDLORD has entered into a Rental Assistance Contract
(RAC) with the State Housing Agency (SHA).
WHEREAS, pursuant to a Cooperative Agreement between HUD and the SHA,
the SHA agrees to disburse Section 811 Rental Assistance (PRA) funds to
the Landlord , conditioned on the LANDLORD limiting occupancy, based
upon a SHA agreed specified number of PRA units, to extremely low
income persons with disabilities as defined in Section 811 of the
National Affordable Housing Act 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 RAC and
NOW THEREFORE,
1.
1.

The LANDLORD leases to the TENANT, and the TENANT leases from
the LANDLORD dwelling unit number ____(D)_____ located at
_____________(E)_______________________ for a term of one year
commencing on the _____ day of ________(F)___________________,
20__, and ending on the _____ day of _________(G)____________,
20__

2.
month.

The total rent (Contract Rent) shall be $___(H)_______ per

3.
The total rent specified in Paragraph 2, above, shall include
the following utilities:
_________(I)_______________

____________________________

(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
$_(J)___.
____________(K)____________
_____________________________
Page 1 of 10
form HUD-92236-PRA (02/2014)

________________________

_____________________________

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 State-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, $___(L)______ shall be payable by or at the
direction of HUD as rental assistance 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 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 SHA 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 ______(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.
6.
A security deposit in an amount equal to one month's total
TENANT payment or $50, whichever is greater, may be collected 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 amount listed in this paragraph 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 of HUD at Title 24, Part 5,
Subpart I 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:
Page 2 of 10
form HUD-92236-PRA (02/2014)

(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 must be effective, at the end of the lease
term, but in no case earlier than 30 days after receipt of the notice by
the TENANT. 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
Page 3 of 10
form HUD-92236-PRA (02/2014)

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, (4) advise the persons with
disabilities have the right to request reasonable accommodations to
participate in the hearing process and (5) 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, cc’ing the SHA and the
individual listed on the Supplement to Application for Federally
Assisted Housing (Form HUD-92006), if any, 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 review of the SHA and 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;
Page 4 of 10

form HUD-92236-PRA (02/2014)

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.

Page 1 of 10

form HUD-92236-PRA (02/2014)

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 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.

Page 6 of 10

form HUD-92236-PRA (02/2014)

14. 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.
15. 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.
16. No alteration, addition, or improvements shall be made in or
to the premises without the prior consent of the LANDLORD in writing.
17. Reasonable Accommodations: 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.
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
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form HUD-92236-PRA (02/2014)

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 information relating to 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,
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form HUD-92236-PRA (02/2014)

the LANDLORD agrees to meet with the TENANT and explain how the TENANT’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 (if any)
e. Owner’s Live-in Aide Addendum (if any)

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 SHA 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.

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form HUD-92236-PRA (02/2014)

OMB Approval No. 2502-XXXXX
(exp. XX/XX/XXXX)

Part II of the
Rental Assistance Contract
Section 811 Project Rental Assistance (PRA)

PRA Project Number:

U.S. Department of
Housing and Urban
Development
Office of Housing
Federal Housing Commissioner

811 PRA Contract Number

FHA Project Number (if applicable):

2.1 OWNER'S RESPONSIBILITIES AND OWNER’S WARRANTIES.
(a) Owner Responsibilities.. The Owner is Responsible for:
1) Performing all management and rental functions for the contract units.
2) Enforcing tenant obligations under the lease.
3) Paying for utilities and housing services (unless paid by the family under the lease)
4) (4) Collecting from the tenant:
(i) Security Deposit, if applicable.
(ii) The tenant rent.
(iii) Any charge for unit damage by the family allowed by state and federal law.
(b) Owner Warranties.
.
1) Legal Capacity. The Owner warrants that it has the legal right to execute this Contract and to lease Assisted Units
covered by this Contract.
2) Completion of Work. The Owner warrants that the project as described in section 1.1 is Decent, Safe and Sanitary
and, if applicable, that the Assisted Units comply with the terms and conditions of the Agreement to Enter into the
Rental Assistance Contract.
2.2 FAMILIES TO BE HOUSED; GRANTEE ASSISTANCE.
(a) Families to Be Housed. The Assisted Units are to be leased by Eligible Families solely as private dwellings and as
their principal place of residence. (See also section 2.8.) Families to be housed must be consistent with the Grantee’s
Cooperative Agreement, including Grantee’s Program Description (as contained in Exhibit4 of the Cooperative
Agreement), and Grantee’s Inter-Agency Partnership Agreement.
(b) Grantee Assistance.
(1) The Grantee agrees to make Rental Assistance Payments on behalf of Eligible Families for the Assisted Units, to
enable the Eligible Families to lease Decent, Safe, and Sanitary housing pursuant to Section 811 of the CranstonGonzalez National Affordable Housing Act, 42 U.S.C. 8013, as amended by the Frank Melville Supportive Housing
Investment Act of 2010, Pub. L. No. 111-374 and the applicable HUD administrative and regulatory requirements.
(2) If there is a Utility Allowance and if the Utility Allowance exceeds the total Eligible Family contribution, the Owner
shall pay the Eligible Family or the appropriate entity the amount of the excess. The Grantee will pay funds to the

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form HUD-92237-PRA (10/2013)

Owner in trust solely for the purpose of making this payment. Any pledge by the Owner of payments properly
payable under this Contract shall not be construed to include payments covered by paragraph (b)(2) of section
2.2.
2.3 MAXIMUM HOUSING ASSISTANCE COMMITMENT; PROJECT ACCOUNT.
(a) Maximum Annual Contract Commitment. The Grantee shall not make any Rental Assistance Payments in
excess of the amount identified in section 1.1(c) and Exhibit 1, Part I of the RAC, unless Grantee, at its discretion,
approves Owner’s request to adjust the amount of Rental Assistance Payments in cases where the Rental
Assistance Payments are inadequate to provide for reasonable operating costs for the Assisted Units.
The Grantee may reduce the amount identified in section 1.1(c) where there is a reduction in the number of
Assisted Units, in the Contract Rents or pursuant to any other provision of this Contract.
2.4 RENTAL ASSISTANCE PAYMENTS TO OWNERS.
(a) Rental Assistance Payments on Behalf of Families.
(1) Rental Assistance Payments shall be paid to the Owner for Assisted Units under lease for occupancy by Eligible
Families in accordance with the Contract as attached in Exhibit 1, Part I of the RAC. The Rental Assistance
Payments will cover the difference between the Contract Rent and that portion of the rent payable by the Eligible
Family as determined in accordance 24 C.F.R. Part 5 and other applicable administrative and regulatory
requirements.
(2) The amount of Rental Assistance Payments payable on behalf of the Eligible Family and the amount of rent
payable by the Eligible Family shall be subject to change by reason of changes in Eligible Family Income, Eligible
Family composition, or pursuant to any HUD regulations or administrative guidance related to the Assisted Units;
or by reason of a change in any applicable Utility Allowance, as approved or required by the Grantee. Any such
change shall be effective as of the date stated in a notification of the change to the Eligible Family, which need not
be at the end of the Lease Term.
(b) Vacancies During Rent-Up. Grantees can determine whether to include payment of vacancies in its Rental
Assistance program. If the Grantee decides to provide vacancy payments, for each Assisted Unit that is not leased as
of the effective date of this contract, the Owner is entitled to vacancy payments that may not exceed 80 percent of the
Contract Rent for up to 60 days of vacancy, provided that the Grantee/Owner: (1) commences and performs
appropriate feasible actions to fill the vacancy, consistent with Grantee’s PRA program and otherwise complied with
section 2.2 of the Agreement, and (2) has not rejected any eligible applicants, except for good cause acceptable to the
Grantee.
(c) Vacancies after Rent-Up. If an Eligible Family vacates an Assisted Unit and the Grantee program includes vacancy
payments, the Owner is entitled to Rental Assistance Payments (except as provided in paragraph (d) of this section)
that may not exceed 80 percent of the Contract Rent for up to 60 days of vacancy if the Owner:
(1) Certifies that it did not cause the vacancy by violating the lease, the Contract or any applicable law;
(2) Notified the Grantee of the vacancy or prospective vacancy and the reasons for it immediately upon learning of the
vacancy or prospective vacancy;
(3) Has fulfilled and continues to fulfill the requirements under this Contract; and
(i) Commence and perform appropriate feasible actions to fill the vacancy, consistent with the Grantee’s PRA
program and
(ii) Has not rejected any eligible applicant, except for good cause acceptable to the Grantee.

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form HUD-92237-PRA (10/2013)

(4) Certifies that any eviction of an Eligible Family resulting in a vacancy was carried out in compliance with section
2.9.
(d) Vacancies for Longer than 60 Days. If an Assisted Unit continues to be vacant for more than 60 consecutive days
either during rent-up or after rent-up the Owner shall not be entitled to any payments under 2.4(b)-(c). Grantee and
Owner shall comply with any administrative requirements imposed by HUD as related to vacancies for the Section 811
Rental Assistance program.
(e) Grantee Not Obligated for the Eligible Family’s Rent. The Grantee has not assumed any obligation for the amount
of rent payable by any Eligible Family or the satisfaction of any claim by the Owner against any Eligible Family other
than in accordance with section 2.4 of this Contract. The financial obligation of the Grantees limited to making Rental
Assistance Payments on behalf of Eligible Families in accordance with this Contract.

(f) Owner's Monthly Requests for Payments.
(1) The Owner shall submit monthly requests to the Grantee or as directed by the Grantee for Rental Assistance
Payments. Each request shall set forth: (i) the name of each Eligible Family and the address and/or number of the
unit leased by the Eligible Family; (ii) the address and/or the number of each unit, if any, not leased to Families for
which the Owner is claiming payments; (iii) the Contract Rent as set forth for each unit for which the Owner is
claiming payments as listed in (1) Exhibit 1, Part I of the RAC for the initial year, and (2) the Grantee approved
Rent Schedule (form HUD-92458) for subsequent years; (iv) the amount of rent payable by the Eligible Family
leasing the unit; and (v) the total amount of Rental Assistance Payments requested by the Owner.
(2) Each of the Owner's monthly requests shall contain a certification by it that to the best of its knowledge and belief
(i) the Assisted Units are in Decent, Safe, and Sanitary condition, (ii) all the other facts and data on which the
request for funds is based are true and correct, (iii) the amount requested has been calculated in accordance with
the provisions of this Contract and is payable under the Contract, (iv) none of the amount claimed has been
previously claimed or paid under this Contract, and (v) the Owner has not received and will not receive any
payments or other consideration from the Eligible Family, the Grantee, HUD, or any other public or private source
for the Assisted Unit beyond that authorized in this Contract and the lease.
(3) If the Owner has received an excessive payment, the Grantee, in addition to any other rights to recovery, may
deduct the amount from any subsequent payment or payments.
(4) The Owner's monthly requests for Rental Assistance Payments are subject to penalty under 18 U.S.C. 1001,
which provides, among other things, that whoever knowingly and willfully makes or uses a document or writing
containing any false, fictitious, or fraudulent statement or entry, in any matter within the jurisdiction of any
department or agency of the United States, shall be fined not more than $10,000 or imprisoned for not more than
five years, or both.
2.5 MAINTENANCE, OPERATION AND INSPECTION.
(a) Maintenance and Operation. The Owner agrees to maintain and operate the Assisted Units and related facilities in a
Decent, Safe, and Sanitary condition in accordance with the requirements in 24 CFR part 5, subpart G including the
provision of all the services, maintenance and utilities set forth in section 1.1(e). The Owner also agrees to comply with
the lead-based paint regulations at 24 CFR Part 35. If the Grantee determines that the Owner is not meeting one or
more of these obligations, the Grantee shall have the right to take action under section 2.19(b).

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form HUD-92237-PRA (10/2013)

(b) Inspection.
(1) Prior to occupancy of any Assisted Unit by an Eligible Family, the Eligible Family must be given the
opportunity to be present for the move-in unit inspection. The inspection of the Assisted Unit would be completed
by both the Owner and the Eligible Family and both shall certify, on a form prescribed or approved by the Grantee
that they have inspected the Assisted Unit and have determined it to be in Decent, Safe, and Sanitary condition in
accordance with the criteria provided in the form. The Owner shall keep a copy of this inspection and make part of
the lease as an attachment to the lease. If the Eligible Family waives the right to this inspection, a form prescribed
or approved by the Grantee would be signed by the Eligible Family indicating they have waived this right.
(2) The Owner shall perform unit inspections of the Assisted Units on at least an annual basis to determine
whether the appliances and equipment in the unit are functioning properly and to assess whether a component
needs to be replaced or repaired. This will ensure that the Owner is meeting its obligation to maintain the Assisted
Units in Decent, Safe, and Sanitary condition.
(3) In addition to annual Owner inspections described in 2.5(b)(2) above, a physical inspection pursuant to
Uniform Physical Condition Standards (UPCS) must also be performed of the Assisted Units and related facilities
at a frequency that conforms to the property’s other existing federal or state housing programs, but at least every 3
years, and at such other times as may be necessary. If multiple federal or state housing programs are layered at
the property, the frequency of the physical inspection shall be determined by the most stringent UPCS standard,
with a minimum of every 3 years.
(c) Units Not Decent, Safe, and Sanitary. If the Grantee notifies the Owner that it has failed to maintain an Assisted Unit
in a Decent, Safe, and Sanitary condition and the Owner fails to take corrective action within the time prescribed in the
notice, the Grantee may exercise any of its rights or remedies under the Contract, including reduction or suspension of
Rental Assistance Payments.
(d) Notification of Abatement. Any reduction or suspension of Rental Assistance Payments shall be effective as
provided in written notification to the Owner. The Owner shall promptly notify the Eligible Family of any such
abatement.
(e) Overcrowded and Underoccupied Units. Where the Grantee determines a unit is larger or smaller than appropriate
for an Eligible Family, the Owner agrees to correct the situation in accordance with PRA Program requirements and
HUD guidelines in effect at the time of the determination.
Accessibility Requirements. The Owner agrees to maintain the Assisted Units and related facilities in compliance
with the following accessibility requirements as applicable at the time of construction or rehabilitation: The Uniform
Federal Accessibility Standards at 24 CFR 40.7, section 504 of the Rehabilitation Act of 1973 as implemented by 24
CFR part 8, the design and construction requirements of the Fair Housing Act and HUD’s implementing regulations at
24 CFR part 100.
2.6 FINANCIAL REQUIREMENTS.
The Grantee is required to submit to HUD audited annual financial statements that comply with the requirements of
OMB Circular A-133. The Grantee shall establish control measures with the Owner to meet the Grantee’s financial
requirements. The Owner agrees to the Grantee’s control measures.
2.7 INITIAL RENTS; RENT ADJUSTMENTS; UTILITY ALLOWANCE.

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form HUD-92237-PRA (10/2013)

(a) With respect to the initial rents, Grantee and Owner agrees that in no circumstance may the initial RAC rent level
exceed the applicable Section 8 Fair Market Rent (FMR) level as determined by HUD, unless such rent level is
substantiated by a market study that has been prepared in accordance with the requirements of a state housing
agency, Chapter 9 of HUD’s Section 8 Renewal Guide or as approved by HUD. In cases where the initial RAC rent
level exceeds Fair Market Rent, Exhibit 1 shall identify how the initial rent settings were determined, as approved by
HUD.
(b) Annual Adjustments.
(1) After initial rent setting made in the first year of the Contract, subsequent rents shall be adjusted annually based
on [CHECK ONE BOX ONLY]:
[

] HUD’s Operating Cost Adjustment Factor (OCAF).

[ ] other operating cost index as has been adopted by the Grantee for purposes of subsidizing affordable
housing, as approved by HUD and as further described in Exhibit 2.
[

] other means as may be approved by HUD, and as further described in Exhibit 2.

(2) Upon request from the Owner to the Grantee, Contract Rents will be adjusted on the anniversary date of the
Contract in accordance with this Contract. Within the first year of the Contract and with approval from HUD, the
Owner may request to align their Contract anniversary date with the existing federal or state housing programs
layered at the property.
(3) Contract Rents may be adjusted upward or downward, as may be appropriate; however, in no case shall the
annual adjustment result in Contract Rents less than the Contract Rents on the effective date of the Contract.
(c) Funding of Adjustments. Rental Assistance Payments will be made in amounts commensurate with Contract Rent
adjustments under this section up to the maximum amount authorized under section 2.3(a) of this Contract.
(d) Overall Limitation. Notwithstanding any other provision of this Contract, adjustments after Contract execution, shall
not result in higher rents charged for Assisted Units as compared to the unassisted units, as determined by Grantee. .
(e) Incorporation of Rent Adjustment. Any adjustment in Contract Rents shall be incorporated into a Rental Schedule
(form HUD-92458) establishing the effective date of the adjustment.
(f) Utility Allowance.
If there is a utility allowance, the utility analysis methodology shall be reviewed and if needed adjusted annually based
on [CHECK ONE BOX ONLY AND ATTACH UTILITY POLICY IN EXHIBIT 2]:
[ ] HUD Multifamily Housing Policy
[ ] Public Housing Authority Policy
[ ] Rural Housing Services (RHS) Policy
[ ] State or Local Housing Agency
[ ] Other means as may be approved by HUD, and as further described in Exhibit 2

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form HUD-92237-PRA (10/2013)

2.8 LEASING OF UNITS.
(a) Compliance with Equal Opportunity Requirements. Projects shall be managed and in accordance with all
applicable EEO requirements.
(b) Security Deposits.
(1) The Owner may collect a security deposit from the family.
(2) The Owner must comply with HUD Security Deposit requirements, which may change from time to time, regarding
security deposits from a tenant.
(3) When the family moves out of the contract unit, the Owner, subject to State and local law, may use the security
deposit, including any interest on the deposit, in accordance with the lease, as reimbursement for any unpaid tenant
rent, damages to the unit or other amounts which the family owes under the lease. The Owner must give the family a
written list of all items charged against the security deposit and the amount of each item. After deducting the amount
used as reimbursement to the Owner, the Owner must promptly refund the full amount of the balance to the family.
(4) If security deposit is not sufficient to cover amounts the family owes under the lease, the Owner may seek to collect
the balance from the tenant.
(c) Eligibility, Selection and Admission of Families.
(1) The Owner shall be responsible for the screening of Eligible Families in accordance with a grantee-approved
tenant selection plan, from among those referred to the Owner by the Grantee or their designee. Additionally,
Owner shall be responsible for the determination of income eligibility of applicants, computation of the amount of
Rental Assistance Payments on behalf of each selected Eligible Family and of total Eligible Family contributions
and recordkeeping in accordance with applicable HUD regulations and requirements. .
(2) The Owner shall not charge any Eligible Family any amount in excess of the total Eligible Family contribution.
(3) The Owner must lease Assisted Units only to Eligible Families. The Owner must inform the Grantee or their
designee of a vacancy and hold the unit open for a reasonable period of time. If no Eligible Tenants are identified
within a reasonable period of time, as determined by the Grantee, the Owner may lease the unit to families which
are not eligible for the PRA Program; this household is not entitled to the benefit of the rental assistance. If the
number of occupied PRA Assisted Units at the property falls below the Total Number of Assisted Units listed in
Exhibit 1 of Part I of the RAC, the Owner will designate the next available appropriate unit as an Assisted Unit until
the total number of occupied PRA Assisted Units meets the Total Number of Assisted Units listed in Exhibit 1 or
Part I of the RAC.
(4) The Lease entered into between the Owner and the Eligible Family shall be on the form as prescribed by HUD.
(5) (i) The Owner shall make a reexamination of Eligible Family income, composition, and the extent of medical or
other unusual expenses incurred by the Eligible Family at least annually, and appropriate redeterminations shall
be made by the Owner of the amount of Eligible Family contribution and the amount of Rental Assistance
Payment, in accordance with applicable HUD regulations and requirements.
(ii) If an Eligible Family reports a change in income or other circumstances that would result in a
decrease/increase of total Eligible Family contribution between regularly scheduled reexaminations, the Owner,
upon receipt of verification of the change, must promptly make appropriate adjustments in the total Eligible
Family contribution.
(iii) An Eligible Family's eligibility for Rental Assistance Payments continues until the total Eligible Family
contribution equals the total housing expense for the unit it occupies. The termination of availability at this point

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form HUD-92237-PRA (10/2013)

will not affect the Eligible Family's other rights under the lease nor preclude resumption of payments as a result
of later changes in income or other circumstances during the term of this Contract.
(6) The Owner shall maintain as confidential all information relating to PRA applicants and Eligible Families, the
disclosure of which would constitute an unwarranted invasion of personal privacy.
(d) Rent Redetermination after Adjustment in Utility Allowance. Consistent with section 2.7 and any HUD
administrative requirements related to Utility Allowance, Owner agrees to adjust the rents of assisted Eligible Families
in cases where there is a Utility Allowance adjustment.
(e) Processing of Applications and Complaints. The Owner shall process applications for admission, notifications to
applicants, and complaints by applicants in accordance with applicable Grantee requirements and shall maintain
records and furnish such copies or other information as may be required by HUD or the Grantee.
(f) Review: Incorrect Payments. In making Rental Assistance Payments to Owners, the Grantee will review the Owner's
determinations under this section. If as a result of reviews, audits or information received by the Grantee, it is
determined that the Owner has received improper or excessive Rental Assistance Payments, the Grantee shall have
the right to deduct the amount of such overpayments from any amounts otherwise due the Owner, or otherwise effect
recovery.
2.9 TERMINATION OF TENANCY OR PRA RENTAL ASSISTANCE BY THE OWNER.
The Owner agrees not to terminate any tenancy of or assistance on behalf of an assisted Eligible Family except in
accordance with the lease, all applicable HUD regulations and other requirements in effect at the time of the
termination, and any State and local law.
2.10 NONDISCRIMINATION.
(a) General. The Owner shall not in the selection of Eligible Families, in the provision of services, or in any other manner,
discriminate against any person on the grounds of race, color, creed, religion, sex, handicap, familial status, or
national origin.
(b) The Fair Housing Act. The Owner shall comply with all requirements imposed by the Fair Housing Act, which
prohibits discrimination in the sale, rental, financing and advertising of housing on the basis of race, color, religion,
sex, handicap, familial status, or national origin, and any related rules and regulations.
(c) Title VI of the Civil Rights Act of 1964 and Executive Order 11063. The Owner shall comply with all requirements
imposed by Title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d. et seq.; the HUD Regulations issued thereunder,
24 CFR, Subtitle A, Part 1; the HUD requirements pursuant to these regulations; and Executive Order 11063 and any
regulations and requirements issued thereunder, to the end that, in accordance with that Act, Executive Order 11063,
and the regulations and requirements of HUD, no person in the United States shall, on the grounds of race, color,
creed, or national origin, be excluded from participation in, or be denied the benefits of, the Rental Assistance
Payments Program, or be otherwise subjected to discrimination. This provision is included pursuant to the regulations
of HUD, 24 CFR, Subtitle A, Part 1 issued under Title VI of the Civil Rights Act of 1964, HUD regulations issued
pursuant to Executive Order 11063 and the HUD requirements pursuant to the regulations. The obligation of the
Owner to comply therewith inures to the benefit of the United States of America, HUD, any of which shall be entitled to
invoke any remedies available by law to redress any breach or to compel compliance by the Owner.

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form HUD-92237-PRA (10/2013)

(d) Section 504 of the Rehabilitation Act of 1973. The Owner shall comply with all the requirements imposed by section
504 of the Rehabilitation Act of 1973, as amended, and any related rules and regulations. Section 504 provides that
no qualified handicapped person shall, on the basis of handicap, be excluded from participation in, be denied the
benefits of, or otherwise be subjected to discrimination under any program or activity which receives or benefits from
Federal financial assistance. Accordingly, the Owner shall not discriminate against any qualified handicapped person
on the basis of handicap..

(e) Employees of Owner.
(1) In carrying out the obligations under this Contract, the Owner will not discriminate against any employee or
applicant for employment because of race, color, creed, religion, sex, handicap, familial status, or national origin.
The Owner will take affirmative action to ensure that applicants are employed, and that employees are treated
during employment, without regard to race, color, creed, religion, sex, handicap, familial status, or national origin.
Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer;
recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and
selection for training, including apprenticeship.
(2) The Owner agrees to post in conspicuous places, available to employees and applicants for employment, notices
to be provided by HUD setting forth the provisions of this nondiscrimination clause. The Owner will in all
solicitations or advertisements for employees placed by or on behalf of the Owner state that all qualified applicants
will receive consideration for employment without regard to race, color, creed, religion, sex, handicap, familial
status, or national origin.

2.11 COOPERATION IN EQUAL OPPORTUNITY COMPLIANCE REVIEWS.
The Owner and the Grantee agree to cooperate with HUD in the conducting of compliance reviews and complaint
investigations pursuant to or permitted by all applicable civil rights statutes, Executive Orders, and rules and
regulations.
2.12 FLOOD INSURANCE.
Flood insurance is required in areas designated by FEMA’s Flood Insurance Rate Maps as the 100-year floodplain. If
Flood insurance is required, the Owner agrees that the project will be covered, during its anticipated economic or useful
life, by flood insurance under the National Insurance Program in an amount at least equal to its development or project
cost (less estimated land cost) or to the maximum limit of coverage made available with respect to the particular type of
property under the National Flood Insurance Act of 1968, whichever is less.
2.13 CLEAN AIR ACT AND FEDERAL WATER POLLUTION CONTROL ACT.
In compliance with regulations issued by the Environmental Protection Agency (EPA), 40 CFR Part 15, pursuant to the
Clean Air Act, as amended ("Air Act"), 42 U.S.C. 7401, et seq., the Federal Water Pollution Control Act, as amended
("Water Act"), 33 U.S.C. 1251, et seq., and Executive Order 11738, the Owner agrees to:
(a) Not utilize any facility in the performance of this Contract or any nonexempt subcontractor which is listed on the
EPA List of Violating Facilities pursuant to section 15.20 of the regulations;

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form HUD-92237-PRA (10/2013)

(b) Promptly notify the Grantee of the receipt of any communication from the EPA indicating that a facility to be
utilized for the Contract is under consideration to be listed on the EPA List of Violating Facilities;
(c) Comply with all the requirements of section 114 of the Air Act and section 308 of the Water Act relating to
inspection, monitoring, entry, reports, and information, as well as all other requirements specified in section 114
of the Air Act and section 308 of the Water Act, and all regulations and guidelines issued thereunder; and
(d) Include or cause to be included the provisions of this Contract in every nonexempt subcontract, and take such
action as HUD may direct as a means of enforcing such provisions.
2.14 REPORTS AND ACCESS TO PREMISES AND RECORDS.
(a) The Owner shall furnish any information and reports pertinent to this Contract as reasonably may be required from
time to time by HUD and the Grantee.
(b) The Owner shall permit HUD and the Grantee or any of their duly authorized representatives to have access to the
premises and, for the purpose of audit and examination, to have access to any books, documents, papers and records
of the Owner that are pertinent to compliance with this Contract, including the verification of information pertinent to
the Rental Assistance Payments.
2.15 DISPUTES.
(a) Grantee’s determinations with respect to the Assisted Units which are consistent with this Agreement and any
applicable HUD requirements will generally not be overturned by HUD. Grantee and Owner are encouraged to resolve
disputes through negotiations and mediation, if necessary. However, in the event a dispute may lead to potential
default by either party resulting from an ambiguity under this Agreement, the Grantee and the Owner may submit to
HUD a request for clarification of the contract term(s) or utilize an alternative dispute resolution process agreed to by
both parties and implemented consistent with this section of the RAC. Grantee and the Owner shall explain in writing
the underlying facts and the contract term(s) in dispute. HUD shall review the inquiry and: (i) agree that a contract term
ambiguity exists and make a final determination on the matter; or (ii) conclude no contract term ambiguity exists or
conclude the dispute is outside the scope of HUD review and make no determination as to the issue(s) presented.
(b) The decision of HUD will not be reviewable unless, within 30 calendar days from the date of receipt of the HUD
determination, either party mails or otherwise furnishes to the Secretary of Housing and Urban Development a written
appeal with written justification. Both parties shall proceed diligently with the performance of the Contract and in
accordance with the decision of HUD pending resolution of the appeal.
2.16 INTEREST OF MEMBERS, OFFICERS, OR MEMBERS OF LOCAL GOVERNING BODY, OR OTHER PUBLIC
OFFICIALS:
(a) No person or entity in the following clauses shall have an interest, direct or indirect, in this Agreement or in any
proceeds or benefits arising from it, during his or her tenure or for one year thereafter.
(1) any member or officer of the Grantee, except where his or her interest is as a tenant;
(2) (i) any employee of the Grantee who formulates policy or influences decisions with respect to the PRA project;
(ii) any other employee of the Grantee, except where his or her interest is as a tenant;
(3) any member of the governing body or the executive officer of the locality (city or county) in which the project is
situated;

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(4) any member of the governing body or executive officer of the locality (city or county) in which the Grantee was
activated;
(5) any other State or local public official (including State legislators), who exercise any functions or responsibilities
with respect to the PRA project;
(6) any Grantee, where any of its members, officers, or employees has a personal interest in the project (except an
employee who does not formulate policy or influence decisions with respect to the PRA project may have an
interest as a tenant).
(b) Members of the classes described in paragraph (a) who involuntarily acquire an interest in the PRA Demo program or
in a PRA project, or who had acquired prior to the beginning of their tenure any such interest, must disclose any
interest or perspective interest to the Grantee and the HUD Headquarters and may, with appropriate justification, if
consistent with State law, apply through the Grantee for a waiver. The Grantee will review the waiver request and
forward their recommendation to HUD Headquarters.
(c) No person to whom a waiver is granted shall be permitted (in his or her capacity as member of a class described in
paragraph (a)) to exercise responsibilities or functions with respect to an Agreement or a Contract executed, or to be
executed, on his or her behalf, or with respect to an Agreement or a Contract to which this person is a party.
(d) The provisions of paragraphs (a) through (c) of this section shall not apply to a utility service if the rates are fixed or
controlled by a governmental agency

2.17 INTEREST OF MEMBER OR DELEGATE TO CONGRESS.
No member of or delegate to the Congress of the United States of America or resident commissioner shall be admitted to
any share or part of this Contract or to any benefits which may arise from it.
2.18 ASSIGNMENT, SALE OR FORECLOSURE.
(a) The Owner agrees that it has not made and will not make any sale, assignment, or conveyance or transfer in any
fashion, of this Contract, without the prior written consent of Grantee which shall not be unreasonably withheld.
(b) The Owner and the party signing this Contract on behalf of the Owner represent that they have the authority of all of
the parties having ownership interests in the Owner to agree to this provision on their behalf and to bind them with
respect to it.
(c) Except where otherwise approved by Grantee, this Contract shall continue in effect and Rental Assistance Payments
will continue in accordance with the terms of the Contract in the event:
(1) Of assignment, sale, or other disposition of the project or this Contract,
(2) Of foreclosure, including foreclosure by HUD,
(3) Of assignment of the mortgage or deed in lieu of foreclosure,
(4) The Grantee or HUD takes over possession, operation or ownership,

2.19 DEFAULTS BY GRANTEE AND/OR OWNER.
(a) Rights of Owner if Grantee Defaults under Contract.
(1) Events of Default. The occurrence of any of the following events constitutes a default:

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(i) If the Grantee fails to perform or observe any term or condition of this Contract;
(ii) If the Contract is held to be void, voidable, or ultra vires;
(iii) If the power or right of the Grantee to enter into the Contract is drawn into question in any legal proceeding.
(2) Owner Request for HUD Determination of Default. If the Owner believes that an event as specified in paragraph
(a)(1) has occurred, and the Owner is not in default, the Owner may, within 30 days of the initial occurrence of the
event:
(i) Notify HUD of the occurrence of the event;
(ii) Provide supporting evidence of the default and of the fact that the Owner is not in default; and
(iii) Request HUD to determine whether there has been a default.
(3) HUD Determination of Default and Curing of Default. HUD, after notice to the Grantee giving it a reasonable
opportunity to take corrective action, or to demonstrate that it is not in default, shall make a determination whether
the Grantee is in default and whether the Owner is not in default. If HUD determines that the Grantee is in default
and that the Owner is not, HUD shall take appropriate action to require the Grantee to cure the default. If
necessary for the prompt continuation of the project, HUD may assume the Grantee's rights and obligations under
the Contract. HUD may, subject to appropriations and its ability to recover funds from the Grantee, pay Project
Rental Assistance Payments with respect to the Assisted Units in accordance with this Contract until reassigned to
another Grantee or returned to the original Grantee under this Agreement. All rights and obligations of the Grantee
assumed by HUD will be returned to the same or another Grantee:
(i) when HUD is satisfied that all defaults have been cured and that the Assisted Units will thereafter be
administered in accordance with all applicable requirements, or
(ii) when the Contract is at an end, whichever occurs sooner.
(4) Enforcement by Owner. The provisions of this paragraph (a) are made for the benefit of the Owner and the
Owner's other assignees, if any, who have been specifically approved by HUD prior to the assignment. These
provisions shall be enforceable by these parties against HUD by suit at law or in equity.
(b) Rights of Grantee and HUD if Owner Defaults under Contract.
(1) Events of Default. A default by the Owner under this Contract shall result if:
(i) The Owner has violated or failed to comply with any provision of, or obligation under, this Contract or of any
Lease, including failure to correct any deficiencies identified by the Grantee in connection with any inspection;
or
(ii) The Owner has asserted or demonstrated an intention not to perform some or all of its obligations under this
Contract or under any Lease.
(2) Grantee Determination of Default. Upon a determination by the Grantee that a default has occurred, the Grantee
shall notify the Owner, of;
(i) The nature of the default,
(ii) The actions required to be taken and the remedies to be applied on account of the default (including actions by
the Owner to cure the default), and
(iii) The time within which the Owner shall respond with a showing that all the required actions have been taken.
If the Owner fails to respond or take action to the satisfaction of the Grantee, the Grantee shall have the right to
take corrective action to achieve compliance, in accordance with paragraph (b)(3) or to take other corrective action
to achieve compliance in its discretion, or as directed by HUD
(3) Corrective Actions. Pursuant to paragraph (b)(2) of this section the Grantee, in its discretion may take the
following corrective actions:
(i) Bring any action necessary to enforce any obligations of the Owner growing out of the project operation

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(ii) Apply to any court, State or Federal, for specific performance of this Contract, for an injunction against any
violation of the Contract for such other relief as may be appropriate
(iii) Reduce or suspend Rental Assistance Payments.
(iv) Recover any overpayments.
(4) HUD Rights.
(i) Notwithstanding any other provisions of this Contract, in the event HUD determines that the Owner is in
default of its obligations under the Contract, HUD shall notify Grantee, who shall take action on behalf of HUD.
In the event that the Grantee does not take appropriate action as determined by HUD, HUD shall have the
right, after notice to the Owner, the trustee, if any, and the Grantee giving them a reasonable opportunity to
take corrective action, to proceed in accordance with paragraph (b)(3).
(ii) In the event HUD takes any action under this section, the Owner and the Grantee hereby expressly agree to
recognize the rights of HUD under this Contract to the same extent as if the action(s) were taken by the
Grantee.
(c) Remedies Not Exclusive and Non-Waiver of Remedies. The availability of any remedy under this Contract, shall
not preclude the exercise of any other remedy under this Contract or under any provisions of law, nor shall any action
taken in the exercise of any remedy be considered a waiver of any other rights or remedies. Failure to exercise any
right or remedy shall not constitute a waiver of the right to exercise that or any other right or remedy at any time.
2.20 LEGAL RELATIONSHIP
The Owner is not the agent of HUD. The RAC contract does not create or affect any relationship
between HUD and any lender to the Owner or any suppliers, employees, contractors or subcontractors
used by the Owner in connection with the implementation of the RAC contract.

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form HUD-92237-PRA (10/2013)

Exhibit 1: Initial Rent Setting Methodology, where applicable. [Exhibit 1 is not required if the initial RAC rent level
does not exceed the applicable Section 8 Small Area Fair Market Rent or Fair Market Rent (FMR) level as
determined by HUD.]

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form HUD-92237-PRA (10/2013)

Exhibit 2: Explanation of Rent Adjustments, and/or attachment of Utility Allowance Policy Under
Section 2.7, where applicable.

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form HUD-92237-PRA (10/2013)

OMB Approval No. 2502-XXXXX
(exp. XX/XX/XXXX)
Public reporting burden for this collection of information is estimated to average 4 hours per response, including the
time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and
completing and reviewing the collection of information. HUD may not collect this information, and you are not
required to complete this form, unless it displays a currently valid OMB control number.
This information collection is necessary to ensure that viable projects are developed. It is important to obtain
information from applicants to assist HUD in determining if nonprofit organizations initially funded continue to have
the financial and administrative capacity needed to develop a project and that the project design meets the needs of the
residents. The Department will use this information to determine if the project meets statutory requirements with
respect to the development and operation of the project, as well as ensuring the continued marketability of the projects.
This information is required in order to obtain benefits. This information is considered non-sensitive and no assurance
of confidentiality is provided.

USE AGREEMENT
For Projects Assisted Under the Section 811 Project Rental Assistance Program
This Agreement entered into this _____ day of _____, 20__ by and between
____________________________ (herein called “Owner") and the
_______________________ (herein called “Grantee"),
Witnessed:

WHEREAS, HUD is directed, pursuant to Section 811 of the CranstonGonzalez National Affordable Housing Act (NAHA), as amended by the Frank
Melville Supportive Housing Investment Act of 2010, Public Law 111 – 374, to
establish the Section 811 Project Rental Assistance Program (“PRA”) to provide rental
assistance to persons with disabilities at eligible multifamily projects; and
WHEREAS, in consideration of the Grantee promise to provide HUD funding to
Owner, for the property known as __________, located in __________ (City, State),
more particularly described in the RAC or in a separate development legal description
attached as an Exhibit to the Use Agreement, in accordance with HUD requirements
related to the PRA, or any successor program, Owner agrees to implement this Use
Agreement.
NOW THEREFORE, the parties agree as follows:
Owner, for itself, its successors and assigns, covenants with the Grantee that the Owner
will operate a predetermined number of Assisted Units in the Owner’s project in
accordance with the Section 811 Rental Assistance Program, Rental Assistance Contract
(RAC), HUD PRA requirements, including but not limited to any applicable HUD
regulatory, administrative, and contractual requirements, for not less than the thirty
years from the date of the Use Agreement. Accordingly, this Use Agreement shall
remain in effect until _________________________ [insert expiration date]; or until
such time as the number of Assisted Units in the RAC has been reduced to zero, as
approved by the Grantee.

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form HUD-92238-PRA (02/2014)

Subject to the availability of appropriations and so long as Owner is in compliance with
all HUD requirements, including but not limited to this Use Agreement, the Grantee shall
provide to the Owner Rental Assistance Payments for units assisted by section 811 of
NAHA (Assisted Units). If Congress fails to appropriate funds adequate to meet the
financial needs of the Assisted Units, HUD will not require the Grantee to enforce the
Use Agreement covered under a RAC. Under such a circumstance, HUD will allow
Grantee to continue to enforce or terminate the Use Agreement at the Grantee’s
discretion .
In the event of a breach or a threatened breach of any of the above covenants and
agreements by the Owner, Grantee or HUD shall be entitled to institute legal action to
enforce performance and observance of such covenants and agreements and to enjoin
any acts which violate such covenants and agreements. HUD may also seek an award of
damages and/or other relief as may be appropriate.

Owner, for itself, its successors and assigns, hereby agrees and acknowledges that this
Use Agreement shall be recorded in the appropriate land records.
With respect to the eligibility requirements for the Assisted Units, Owner will comply
with the RAC. Owner will comply with all other PRA, or successor program
requirements as promulgated by HUD, as appropriate.
With respect to Assisted Units, Owner will comply with the provisions of any
Federal, State or local law prohibiting discrimination in housing on the grounds of
race, color, religion or creed, sex, handicap, familial status or national origin,
including the Fair Housing Act of 1968, as amended.
The rent charged for Assisted Units shall not exceed the upper limit of the range shown
for such type of unit on a rental schedule approved in writing by Grantee, and shall
include the reasonable use of all utilities (if applicable) shown on the rental schedule.
Notwithstanding any other provision of this Agreement, adjustments after Contract
execution shall not result in higher rents charged for Assisted Units as compared to the
non-Assisted Units, as determined by Grantee.
Any requests for rent adjustments to the Grantee by the Owner shall be consistent with
the requirements of the Rental Assistance Contract and all other PRA or successor
program requirements.
Owner shall maintain the premises and equipment, appurtenant thereto, in good
repair, safe and sanitary condition consistent with HUD requirements.
The books and accounts of the operations of the property shall be kept in
accordance with the relevant HUD requirements related to the PRA, or any
successor program.

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form HUD-92238-PRA (02/2014)

Owner further covenants and agrees that if Owner conveys title to the project prior to
the Use Agreement’s expiration, Owner will prior to transfer of title: (1) confirm the
purchaser has been approved by Grantee ; the Grantee will ensure the purchaser will
operate the project in such a way that it will remain an “Eligible Project” pursuant to 42
U.S.C. 8013(b)(3)(C) and (2) require the purchaser to assume the obligations of this Use
Agreement and the Rental Assistance Contract.
Owner shall provide to Grantee or HUD promptly following receipt of a written request
from HUD copies of all business or any other documents regarding the Housing
Project, so that Grantee or HUD may evaluate Owner's compliance with the terms of
this Agreement. In addition, Owner shall permit Grantee or HUD following notice from
Grantee or HUD to examine the originals of all such documents, at the Project's office
during regular business hours.
Owner must certify annually by _________ of each year (insert date within 30
calendar days of the anniversary date of this Agreement or insert date that will align
with other program reporting requirements), to the Grantee that it is operating the
Project in compliance with this Agreement and, more specifically, that all Assisted
Units and non-Assisted Units, as well as the physical structure of the project as a
whole, for example grounds and equipment, comply with all applicable codes and
requirements of this Agreement or that a remedial program to correct any existing
deficiencies has been implemented.
Should any of the above covenants be held invalid in whole or in part, it shall not
affect or invalidate the balance of such covenant or any other covenants.

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form HUD-92238-PRA (02/2014)

NOW THEREFORE, in consideration of the mutual promises set forth herein, the
parties hereto agree as follows:
In witness whereof, the parties hereto have caused these presents to be executed on
their behalf and their seals affixed the day and year written below.
WITNESS
(Owner)
BY
_________________________________ ________________________
And
Grantee

ACKNOWLEDGEMENT BY OWNER BEFORE
NOTARY
(Complete according to requirements of
ACKNOWLEDGEMENT BY
COMMISSIONER:)
STATE OF________________________)

4

PUBLIC
state of execution.)

SS:

form HUD-92238-PRA (02/2014)

Attachment 1
CITY AND COUNTY OF ___________________)

On this _______________ day of
_______________________,
20___, before me ______________________________, a Notary Public in and for the
City and County of ________________,
_____________________, appeared _________________________
to
me personally known and known to me to be the duly Authorized Agent of
________________________________, and
the person who executed the aforesaid instrument bearing the
date of __________________, 20___, and acknowledged that he executed the aforesaid
instrument for and on behalf of
_______________________________ for the purposes herein.

(NOTARY PUBLIC)
My Commission
Expires:______________________________________

5

form HUD-92238-PRA (02/2014)

ACKNOWLEDGEMENT BY COMMISSIONER:)
STATE OF________________________) SS:
CITY AND COUNTY OF _____________)

ON this __________________ day of ________________,
20___, before me ___________________________, a Notary
Public in and for the City and County of ____________,
________________, appeared ______________________________
to me personally known and known to me to be the duly Authorized Agent of the
Grantee, and the person who executed the aforesaid instrument bearing the date of
_________________, 20___, and acknowledged that he executed the aforesaid
instrument for and on behalf of the said Grantee for the purposes herein.
___________________________________________________________
NOTARY PUBLIC)
My Commission Expires:_____________________________________

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form HUD-92238-PRA (02/2014)