In February 2024, the Department of Housing and Urban Development (HUD) provided guidance on existing policies regarding the fees that owners may and may not charge tenants. None of the guidance is new or reflects any change in HUD regulations. The purpose of the guidance is twofold: (1) to remind owners of the current requirements relative to fees and (2) to seek input from stakeholders on any possible changes to the requirements.
Following is an overview of existing HUD policy regarding fees in addition to rent.
Owners may collect the security deposit on an installment basis. The security deposit amount established at move-in does not change when a tenant’s rent changes. The amount of the security deposit to be collected is dependent upon:
The HUD Handbook 4350.3, Figure 6-7, outlines the security deposit amount that may be collected for each program.
When a tenant transfers to a new unit, an owner may:
Owners may charge for parking only in unsubsidized projects where HUD previously approved it. They may also charge for car heaters in cold climates where parking spaces are equipped with them.
An owner may deduct accrued, unpaid late charges from the security deposit at the time of move-out if such a deduction is permitted under state and local laws. An owner may not evict a tenant for failure to pay late charges.
Owners of Section 202/8, Section 202 PAC, Section 202 PRAC, and Section 811 PRAC projects may never charge late rent payment fees.
HUD’s Office of Multifamily Housing Programs is seeking feedback from stakeholders regarding these policies. Owners and Agents of affected programs may provide comments and feedback to HUD at AssetManagementPolicy@HUD.gov. Responses are due by March 29, 2024.
Subscribe to our news articles to stay up to date.
We care about the protection of your data. Read our Privacy Policy.