HB-2-3560 

6.1 INTRODUCTION 

The purpose of this chapter is to present the occupancy rules for multi-family housing 

projects and the Agency’s procedures for determining borrower compliance. Agency procedures 

for ensuring borrower compliance are summarized at the end of the chapter. 

SECTION 1: TENANT ELIGIBILITY REQUIREMENTS [7 CFR 3560.152]

6.2 GENERAL ELIGIBILITY—INCOME ELIGIBILITY 

To be admitted to multi-family housing, applicants must meet basic requirements. 

 Have income that does not exceed the limits defined by the Agency; 

 Meet the program definition of an eligible household. 

A borrower may determine an applicant ineligible for occupancy based on screening 

criteria other than those required by the Agency only if such criteria are included in the project’s 

management plan. The screening criteria may not contain arbitrary or discriminatory rejection 

criteria, but may consider an applicant’s past rental and credit history and relations with other 

tenants. 

6.3 INCOME REQUIREMENTS 

Three different income limits are used to establish eligibility for Multi-Family Housing 

programs. The National Office determines the income limits and updates the limits whenever 

they are revised. Adjusted income should be compared with the below-listed income limits to 

determine the category in which each household falls: 

 The very low-income limit is established at approximately 50 percent of the median 

income for the area, adjusted for household size; 

 The low-income limit is established at approximately 80 percent of the median 

income for the area, adjusted for household size; and 

 The moderate-income limit is established by adding $5,500 to the low-income limit 

for each household size. 

The borrower has the right to determine a minimum income level for households of 

various sizes for applicants who will not be receiving rental assistance. These guidelines must be 

administered consistently for all potential applicants. 

6.4 RESERVED 

6.5 DETERMINING AN ELIGIBLE HOUSEHOLD 

CHAPTER 6: PROJECT OCCUPANCY 

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Although it may seem obvious, deciding who is a part of an applicant’s household is an 

important, but not always simple, task. The word “household” applies to individuals and family 

members who intend to live in a unit. 

A. Defining a Household 

Deciding who can be considered a household member affects many decisions the 

borrower must make, including: 

 The number of bedrooms the family needs; 

 The members’ income that must be counted and the income limits that should be 

used; 

 The extent to which the family qualifies for certain income deductions and certain 

preferences; and 

 The household member who can sign legal documents. 

B. Who Can Be Counted as a Household Member? 

A household may be made up of a variety of members and may have a specific 

definition. The following are examples of members and types: 

 Elderly families: A household where the tenant, co-tenant, member, or co-member 

is at least 62 years old, or disabled, as defined below. An elderly family may include 

a person younger than 62 years of age. (To receive an elderly family deduction, the 

person who is elderly, disabled must be the tenant, cotenant, member, or co-member.) 

 Individual with Disabilities: The term disability is considered equivalent to the term 

handicap. Eligibility requirements for fully accessible units are contained in 7 CFR 

3560.154(g)(1)(i) and 3560.155(b). A person is considered to have a disability if 

either of the following two situations occur: 

(1) As defined in section 501(b) of the Housing Act of 1949. The person is the head 

of household (or his or her spouse) and is determined to have an impairment which: 

(i) Is expected to be of long-continued and indefinite duration; 

(ii) Substantially impedes his or her ability to live independently; and 

(iii)Is of such a nature that such ability could be improved by more suitable housing 

conditions, or if such person has a developmental disability as defined in section 102(7) 

of the Developmental Disability and Bill of Rights Act (42 U.S.C. 6001(7)). 

(2) As defined in the Fair Housing Act; the Americans with Disabilities Act; and 

section 504 of the Rehabilitation Act of 1973. The person has a physical or mental 

impairment which substantially limits one or more of such person's major life 

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activities; a record of such impairment; or being regarded as having such an 

impairment. The term does not include current, illegal use of or addiction to a 

controlled substance. As used in this definition, physical or mental impairment 

includes: 

(i) Any physiological disorder or condition, cosmetic disfigurement, or 

anatomical loss affecting one or more of the following body systems: 

neurological; musculoskeletal; special sense organs; respiratory, including speech 

organs; cardiovascular; reproductive; digestive; genito-urinary; hemic and 

lymphatic; skin; and endocrine; 

(ii) Any mental or psychological disorder, such as mental retardation, organic 

brain syndrome, emotional or mental illness, and specific learning disabilities. 

The term "physical or mental impairment" includes, but is not limited to, such 

diseases and conditions as orthopedic, visual, speech and hearing impairments, 

cerebral palsy, autism, epilepsy, muscular dystrophy, multiple sclerosis, cancer, 

heart disease, diabetes, Human Immunodeficiency Virus infection, mental 

retardation, emotional illness, drug addiction (other than addiction caused by 

current, illegal use of a controlled substance), and alcoholism; 

(iii) Major life activities means functions such as caring for one's self, performing 

manual tasks, walking, seeing, hearing, speaking, breathing, learning, and 

working; 

(iv) Has a record of such an impairment means has a history of, or has been 

misclassified as having, a mental or physical impairment that substantially limits 

one or more major life activities; 

(v) Is regarded as having an impairment means: 

(A) Has a physical or mental impairment that does not substantially limit 

one or more major life activities but that is treated by the borrower or 

management agent as constituting such a limitation; 

(B) Has a physical or mental impairment that substantially limits one or 

more major life activities only as a result of the attitudes of others toward 

such impairment; or 

(C) Has none of the impairments described in this definition but is treated 

by another person as having such an impairment. 

 Household. One or more persons who maintain or will maintain residency in one 

rental or cooperative unit, but not including a resident assistant or chore service 

worker. 

 Resident assistant. A person residing in a tenant’s housing unit who is essential to 

the well-being and care of the persons who are elderly or have handicaps or 

disabilities residing in the unit, but is not obligated for the person’s financial support 

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and would not be living in the unit except to provide the needed support services. 

While the resident assistant may be a family member, the resident assistant may not 

be a dependent of the household for tax purposes and is not subject to the eligibility 

requirements of a tenant or member. A resident assistant is not a chore service 

worker. A resident assistant may function in any type of housing affected by this 

section.

 Foster children. Eligible families may include foster children, as long as the 

children do not cause overcrowding. However, foster children are not considered 

family members for the purposes of determining income or deductions from income, 

or to determine household size to compare with income limits. 

 Remaining family members. Remaining members of resident families are family 

members who stay in a unit after other members of the household leave. These 

members will be reevaluated for eligibility in accordance with Section 7 of this 

chapter. Agency regulations may require remaining tenants to move to a unit of 

appropriate size or exit the project. 

 Students. A student or other seemingly temporary resident of the community who 

may be considered an eligible tenant when all of the following conditions are met: 

 The student is of legal age in accordance with the applicable state law or is 

otherwise legally able to enter into a binding contract under state law; 

 The person seeking occupancy has established a household separate and distinct 

from the person’s parents or legal guardians; 

 The person seeking occupancy is no longer claimed as a dependent by the 

person’s parents or legal guardians pursuant to Internal Revenue Service 

regulations, and evidence is provided to this effect; and 

 The person seeking occupancy signs a written statement indicating whether or not 

the person’s parents, legal guardians, or others provide any financial assistance 

and this financial assistance is considered as part of current annual income and is 

verified in writing by the borrower. 

6.6 ADDITIONAL REQUIREMENTS FOR ELDERLY UNITS, CONGREGATE 

HOUSING, AND GROUP HOMES 

In addition to the requirements listed in Paragraph 6.2, applicants for elderly units, 

congregate housing, or group homes must meet the additional requirements described below. 

A. Elderly Units and Congregate Housing 

To be admitted to elderly units or congregate housing: 

 Applicants and tenants must qualify as an elderly or disabled. 

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 Nonelderly persons are eligible for occupancy as long as they are members of an 

elderly household and live in the same unit. 

 Priority can be given to tenants who agree to participate in the services provided by 

the facility. 

B. Group Homes 

To be admitted to a group home: 

 Applicants/tenants must be in need of the special services provided by the group 

home. 

 Applicants must demonstrate a need for such housing and cannot be required to be a 

part of an ongoing training or rehabilitation program. 

 Applicants must be selected from the market area prior to considering applicants from 

other areas. 

A group home may limit occupancy to a specific group of tenants (e.g., eligible 

elderly tenants, developmentally disabled or mentally impaired tenants) if it is outlined in 

the borrower’s management plan. 

6.7 INELIGIBLE TENANT WAIVERS 

The Agency may authorize the borrower in writing, upon receiving the borrower’s 

written request with the necessary documentation, to rent vacant units to ineligible persons for 

temporary periods to protect the financial interest of the Government. Likewise, this provision 

may extend to a cooperative. This authority will be for the entire project for periods not to 

exceed one year. Within the period of the lease, the tenant may not be required to move to allow 

an eligible applicant to obtain occupancy, should one become available. The Agency must make 

the following determinations. Age restrictions may not be waived. 

 There are no eligible persons on a waiting list. 

 The borrower provided documentation that a diligent but unsuccessful effort to rent 

any vacant units to an eligible tenant household has been made. Such documentation 

may consist of advertisements in appropriate publications, in several public places, 

and in other places where persons seeking rental housing would likely make contact; 

holding open houses; and making appropriate contacts with public housing agencies 

and organizations, Chambers of Commerce, and real estate agencies. 

 The borrower agrees to publish a notice in the local newspaper to inform the public of 

the borrower’s intent to temporarily rent apartments to all persons without regard to 

income restrictions. 

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 The borrower is temporarily unable to achieve or maintain a level of occupancy 

sufficient to prevent financial default and foreclosure and the Agency’s approval of 

the waiver will be for a limited duration. 

 That the lease agreement will not be more than 12 months and at its expiration will 

convert to a month-to-month lease. The monthly lease will require that the unit be 

vacated upon 30 days’ notice when an eligible applicant is available. 

 Tenants residing in Rural Rental Housing (RRH) units who are ineligible because 

their adjusted annual income exceeds the maximum for the RRH projects will be 

charged the RHS approved note rate rental rate for the size of unit occupied in a Plan 

II RRH project. In projects operated under Plan I, ineligible tenants will be charged 

rental surcharge of 25 percent of the approved note rate rental rate. Plan I and Plan II 

projects are defined in 7 CFR 3560.11. 

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SECTION 2: CALCULATING INCOME AND INITIAL CERTIFICATION 

6.8 BORROWER AND APPLICANT/TENANT RESPONSIBILITY 

Borrowers of all Rural Rental Housing properties must verify and document in the tenant’s file 

all income, assets, expenses, deductions, family characteristics, and any other factors that affect 

family eligibility or level of assistance. This requirement excludes those residents of On Farm 

Labor Housing who are living in housing provided on a non-rental basis. With USDA guidance 

the borrower should develop verification and documentation procedures for the properties they 

manage and ensure that on-site property staff responsible for these functions are trained to 

understand and properly implement these procedures. Effective and efficient borrower, agent, 

and property staff performance in this area is fundamental to obtaining the correct information 

needed for accurate rent determinations and assistance payments. The following are essential 

procedures to reduce the incidence of improper reporting. 

 Applicants/tenants and their adult family members must sign consent forms to authorize the 

borrower to collect information to verify eligibility, income, assets, expenses, and 

deductions. Applicants and tenants who do not sign required consent forms will not receive 

assistance. 

 Family members 6 years of age and older must provide the borrower with a complete and 

accurate social security number. For any members of the family who do not have a social 

security number, the applicant or family member must certify that the individual has never 

received a social security number. 

 Information received via third party verification should be reviewed and interpreted, and 

allowable deductions applied to determine the income used to calculate rent and rental 

assistance. 

 The borrower must develop tracking and monitoring procedures to ensure that the required 

re-certifications are initiated and completed on time. 

 The borrower must handle any information obtained to verify eligibility or income in 

accordance with the Privacy Act.

6.9 CALCULATION OF TENANT INCOME 

Borrowers use tenant income information to: (1) help determine whether an applicant is 

eligible to reside in multi-family housing; (2) calculate the applicant’s ability to pay rent; and (3) 

determine the amount of rental assistance the household is eligible to receive. This section 

provides guidance for calculating and verifying income for each of these purposes. 

A. Key Concepts for Income Determinations 

1. Income Definitions 

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Example—Annualizing Short-Term 

Income

Assume a family member who currently 

has no income historically has seasonal 

income during the summer months and earns 

on an average of $4,000 during that time. 

Confirm with the applicant that the same 

seasonal pattern is expected and use historical 

data to project income for the coming 12 

months. 

Two income definitions are used: annual income and adjusted income. Whenever 

income determinations are made, it is essential that borrowers use the correct income 

definition and consider income from the appropriate household members. 

 Annual income. Annual income is used as the base for computing adjusted income. 

Income of all household members should be considered when computing annual 

income. Attachment 6-A, Annual Income Inclusions and Exclusions can be used to 

determine which sources of income to count and which to exclude. Form RD 3560-8, 

Tenant Certification illustrates the calculation of annual income. Paragraph 6.8 B in 

this section provides additional information on calculating annual income. 

 Adjusted income. Adjusted income is used to determine whether an applicant is 

income eligible to reside in multi-family rental housing or to receive rental subsidies. 

For guidance on calculating adjusted income, see Paragraph 6.8 C in this section. 

2. Projecting Income for a 12-Month Period 

Current income and family 

circumstances may be used to estimate 

the household’s income over the next 12 

months, unless there is verifiable 

evidence of a likely change in 

circumstances. Historical information 

may be used to estimate income that is 

anticipated to be received for less than 

12 months. For example, if one of the 

household members is a seasonal 

worker, the income attributable to that 

worker should be based upon past 

history, rather than annualizing current income. 

3. Income of Temporarily Absent Household Members 

Members may be temporarily 

absent from the household for a variety 

of reasons, such as temporary military 

duty activation, temporary employment, 

or students who live away from home 

during the school year. The income of 

these household members is considered 

when computing annual income. 

Households with a member 

permanently confined to a hospital or 

nursing home may choose to either 

include annual income attributable to such person, less deductions for which the person 

would qualify, or exclude the annual income attributable to such person and not take any 

deductions for which the person would qualify. 

Example—Temporarily Absent Member

James Brown and his wife have applied for 

a unit. At the moment, James is working on a 

construction job on the other side of the state 

and comes home every other weekend. He 

earns $600 per week and uses approximately 

one-third of that amount for temporary living 

expenses. The full amount of the income 

earned would be counted for both repayment 

and annual income. 

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4. Zero Income. 

 It is the policy of Rural Development not to accept a tenant certification for an 

applicant or tenant with zero income unless all income is specifically exempted. If the 

tenant or applicant experiences regular lay-off, as part of his or her employment, the 

tenant or applicant will not be certified as a zero income tenant. The tenant will be 

certified based on their annual income. Third party verifications must be obtained from 

the employer. If the tenant or applicant typically receives unemployment during periods 

of layoff, the unemployment income is included in the income calculation. The tenant 

will not be re-certified when laid off unless the layoff is inconsistent the employment or 

income history of the tenant. 

 In cases where an applicant or tenant is claiming they have no household income, nor 

can the tenant or applicant anticipate a source of income, it will be necessary for the 

applicant or tenant to demonstrate financial capability to meet other basic living expenses 

and the rental charge. This amount must include income for essential living expenses 

such as, food, clothing, diapers, transportation and any nonessentials items being paid 

such as telephone, cable television, internet service etc. The basis for this income must 

be documented in the file. Guidance for the verification of zero income is found in 

Attachment 6-B. 

 The borrower must review the circumstances of the tenant quarterly to ascertain if 

circumstances have changed. The borrower must remind the tenant that the lease 

specifically states that it is the tenant’s responsibility to immediately report changes in 

income to management. 

B. Calculating Annual Income 

Attachment 6-A, Annul Income Inclusions and Exclusions provides a list of possible 

income and indicates whether the source is counted or excluded from annual income. 

C. Calculating Adjusted Income 

Adjusted income is used to determine eligibility for Multi-Family Housing programs, 

as well as eligibility for and the amount of payment subsidies under rental assistance. 

Adjusted income is calculated by subtracting from annual income any of five 

deductions that apply to the household. Not all households are eligible for all deductions. 

Exhibit 6-1 summarizes these deductions. Attachment 6-C, Allowable Deductions, 

provides detail concerning allowable deductions. The remainder of this paragraph 

provides guidance on determining whether a family is eligible for each deduction and 

verifying and calculating these amounts. 

Exhibit 6-1 

Allowable Deductions from Annual Income 

 Elderly Nonelderly 

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HB-2-3560 

Deduction Households Households 

Dependent deduction 

Child care expenses 

Elderly household 

Disability assistance 

Medical expenses 

Yes 

Yes 

Yes 

Yes 

Yes 

Yes 

Yes 

No 

Yes 

No 

1. Dependent Deduction 

A deduction from annual income of $480 is made for each household member who 

qualifies as a dependent. Dependents are household members who are not the head or 

spouse and who are age 17 or younger, an individual with a disability, or a full-time 

student. If an applicant requests a deduction for dependents attending school full time, 

the applicant must provide documentation from the school that the dependent is enrolled 

as a full-time student. 

2. Child Care Expenses 

Reasonable unreimbursed child care expenses for the care of children under the age 

of 13 are deducted from annual income if: (1) the care enables a household member to 

work or go to school; (2) no other adult household member is available to care for the 

children; and (3) in the case of child care that enables a household member to work, the 

expenses deducted do not exceed the income generated by that household member. If the 

child care provider is a household member, the cost of the children’s care cannot be 

deducted. 

To qualify for the deduction, the 

applicant must: 

 Identify the children who are 

receiving the child care and the 

household member who can work 

or go to school as a result of the 

care; 

 Demonstrate that there is no adult household member available or able to care for the 

children; 

 Identify the child care provider, the hours of child care provided, and the costs; and 

 If the expenses enable a household member to go to school, identify the educational 

institution. The household member need not be a full-time student. 

3. Elderly Household Deduction 

A single $400 deduction is made from annual income for any elderly household. To 

be considered an elderly household, the head of household, spouse, or sole member of a 

Verification of Child Care Expenses 

Child care hours must parallel the hours the 

household member works or goes to school. 

An acceptable format for verifying child care 

expenses is a letter on the child care provider’s 

letterhead or a copy of a signed child care 

contract. 

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Typical Disability Assistance Expenses

 Care attendant to assist an individual with disabilities 

with activities of daily living directly related to 

permitting the individual or another household member 

to work. 

 Special apparatus, such as wheelchairs, ramps, and 

adaptations to vehicles or workplace equipment, if 

directly related to permitting the individual with 

disabilities or another household member to work. 

household who is party to the lease must be 62 years of age or older, or an individual 

with a disability. 

In the case of a family where the deceased tenant or spouse was at least 62 years old 

or an individual with disabilities, the surviving household members may continue to 

reside in a housing project after the departure or death of the tenant or co-tenant, provided 

that: 

 They are eligible with respect to adjusted income; 

 The surviving household members occupied the dwelling with the deceased member 

at the time of death; 

 They execute a tenant certification form establishing their own tenancy; and 

 They have the legal ability to sign a lease for the rental unit, except where a legal 

guardian may sign when the tenant or member is otherwise eligible. 

Nonelderly or nondisabled surviving members of an elderly or disabled household are 

not entitled to the elderly family adjustment to income. 

4. Deductions for Disability Expenses 

Reasonable expenses for the care of an individual with disabilities in excess of three 

percent of annual income may be deducted from annual income if the expenses: 

 Enable the individual with 

disabilities or another 

household member to work; 

 Are not reimbursable from 

insurance or any other source; 

and 

 Do not exceed the amount of 

income earned by the person 

who is able to work as a result 

of the expenses. 

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Along with other forms of documentation, to qualify for this deduction applicants must 

identify the individual with a disability on 

the application. 

5. Deduction for Medical Expenses (for 

elderly households only) 

Medical expenses may be deducted 

from annual income for elderly households 

if the expenses (1) will not be reimbursed 

by insurance or another source; and (2) 

when combined with any disability 

assistance expenses are in excess of three 

percent of annual income. See Attachment 

6-C for eligible deductions 

If the household qualifies for the 

medical expenses deduction, expenses of all 

members are considered. For example, if a 

household included the head (grandmother, 

age 64), her son (age 37), and her granddaughter (age 6), the medical expenses of all 

three household members would be considered. 

One of the most challenging 

aspects of determining allowable 

medical expenses is estimating a 

household’s medical expenses for the 

coming year. While some anticipated 

expenses can be documented easily 

(for example, Medicare or other 

health insurance premiums and 

ongoing prescriptions), others need to 

be estimated. The borrower should 

use historical information about 

medical bills to estimate future 

expenses. However, the estimates 

should be realistic. For example, if the household has a significant medical bill, the 

borrower would count only that portion of the bill that is likely to be paid during the 

coming year. 

6.10 EVALUATING APPLICANTS’ ASSETS

Assets can affect an applicant’s ability to be qualified as an eligible tenant. Many types 

of assets generate income that must be included in the calculations of annual income. 

Attachment 6-D, Net Family Assets presents a list of assets that must be considered when 

making these determinations and also identifies certain types of assets that are not considered. 

Typical Medical Expenses

 Services of physicians other healthcare providers; 

 Services of hospitals other healthcare facilities; 

 Medical premiums; 

 Prescription and nonprescription medicine; 

 Dental expenses; 

 Eyeglasses and eye examinations; 

 Medical or health products or apparatus (hearing 

aids, wheel chairs, etc.); 

 Live-in or periodic medical care (e.g., visiting 

nurses or care attendants); 

 Bandages, syringes, continence shields, and other 

nonprescription items recommended by a 

physician; and 

 Periodic payments on accumulated medical bills. 

Example – Calculating the 

Medical Expense Deduction

The Jensons are an elderly household with 

annual income of $25,000 and anticipated medical 

expenses of $3,000 that are not covered by 

insurance or another source. The allowable 

medical expenses would be: 

Total medical expenses $3,000 

(less) 3% annual income -$ 750 

 ($25,000 x 0.03) 

Allowable medical expenses $2,250 

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Example—Calculating Cash Value 

of an Asset

Mr. Smith has $10,000 in an IRA account. 

The account’s market value is $10,000. To 

withdraw funds from the account, Mr. Smith 

must both pay a withdrawal penalty and taxes 

on the amount withdrawn. 

The cash value of the IRA account is: 

Market value $10,000 

Withdrawal penalty less 200 

Tax less 2,000 

Cash Value $7,800

A. Reporting Assets 

Applicants must provide information about household assets at the time of application 

and whenever an income is reverified. Applicants must provide sufficient information to 

enable the borrower to verify the asset information and compute the market and cash 

value of the asset. 

B. Calculating Market and Cash Value 

The market value of an asset is 

simply its dollar value on the open 

market. For example, the market value 

of $2,000 in a savings account is $2,000 

and the market value of real estate is its 

appraised value. The cash value of an 

asset is the market value, less reasonable 

expenses to convert the asset to cash. 

For example, the cash value of stock 

worth $5,000 would be $5,000 less any 

broker’s fee. 

C. Retirement Assets 

Retirement assets are savings and investments that have been specifically designated 

as retirement funds. Not all retirement assets are considered. If the applicant can receive 

the retirement funds only by borrowing them, or upon retirement or termination of 

employment, the funds are not counted as assets for determining income. If the applicant 

can withdraw retirement funds without retiring or terminating employment, the funds are 

counted as assets, even though penalties may apply. 

D. Calculating Income from Assets 

For the purpose of computing annual income, the assets of all household members are 

considered. In addition, if any household member has disposed of assets for less than fair 

market value during the two years preceding the effective date of certification or 

recertification, the asset must be considered when calculating income from assets for 

annual income. 

1. Two Methods for Calculating Income from Assets 

Two different methods of calculating income from assets are used, depending upon 

the total cash value of household assets: 

If the cash value of total assets is $5,000 or less, the amount of asset income included 

in annual income is the actual income to be derived from these assets. 

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If the cash value of total assets is more than $5,000, the amount of asset income 

included in annual income is the greater of (1) the actual income to be derived from the 

assets; or (2) an imputed income from assets that is calculated by multiplying the total 

cash value of assets by the current HUD passbook rate, which can be found in the HUD 

4350.3 Occupancy Handbook, Chapter 5, available at Occupancy Requirements of 

Subsidized Multifamily Housing Programs (4350.3). Generally, the imputed income 

from assets is larger than the actual income to be derived from the assets when an 

applicant owns non-income-producing assets of significant value. 

Example—Income from Assets for Annual Income Calculation 

Charles and Patty Brown, both age 40, have applied for a Section 515 unit. The Brown family has 

the following assets. 

A certificate of deposit of $6,500 they have been saving for a down payment. It earned 6.8 percent 

or $442 of interest last year. 

A savings account of $4,000 earning four percent interest annually. 

The six-month average balance in the checking account is $300 (non interest-bearing account). 

The cash value of the Browns’ assets is $10,800 ($6,500 + $4,000 + $300). The assets are more 

than $5,000. To compute income from assets, use the greater of actual income or imputed income.

Cash 

Value 

Actual Income 

Earned 

Imputed Income 

Checking Account 6 mo average balance $300 $0 

Certificate of Deposit $6,500 $442 ($6,500 x 0.068) $216 ($10,800 x 

0.02)

Savings $4,000 $160 ($4,000x 0.04) 

 Total $10,800 $602 

 

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Example—Valuing a Disposed Asset

An applicant sold a property to a relative 

for $15,000 on July 1, 1996. The property 

was valued at $30,000 and had no loans 

against it.

Market value $30,000 

(Less) Settlement costs $2,000 

(Less) Sales price $15,000 

Cash value $13,000 

The $13,000 would be counted as an 

asset for any annual income determination 

conducted until July 1, 1998. Even though 

there would be no actual income from this 

asset, the $13,000 would be used to 

establish total assets to determine the 

amount to be counted as annual income. 

2. Assets Disposed of for Less than Fair Market Value 

Applicants who dispose of assets for 

less than fair market value have, in 

essence, voluntarily reduced their ability 

to afford housing. Therefore, assets 

disposed of for less than fair market value 

during the two years preceding a 

determination of annual income must be 

used in the annual income calculation. 

Assets disposed of for less than fair 

market value as a result of foreclosure, 

bankruptcy, divorce, or separation are not 

included in this calculation. 

The amount of income to be included 

in annual income is the difference 

between the market value of the asset and 

the amount that was actually received (if 

any) in the disposition of the asset. 

6.11 VERIFICATION PROCEDURES 

Each applicant must provide the income, expense, and household information needed to 

enable the borrower to make income determinations. Most of this information should be 

provided on the application, but some additional follow-up with the applicant may be required. 

The borrower must verify information provided by the applicant prior to admission. 

A. Verification Requirements 

Verification of employment income, as well as any household income from sources 

other than employment, must be verified by the borrower prior to submission of Form 

RD 3560-8 to the Agency. Each applicant must sign a request for verification of 

employment at the time of application. Copies of this form must accompany any request 

for verification from third-party sources. Written verifications provided by third-party 

sources or documents prepared by third-party sources are generally preferred. Oral 

verifications, if accepted, must be documented carefully. 

Written income-related verifications are valid for 90 days and may be valid for an 

additional 90 days with oral reverification at the end of the 90-day period. In no case 

may information that is older than 180 days be used. 

When it is not immediately possible to obtain the written verification from the income 

source, the income may be temporarily verified by actually examining the income checks, 

check stubs, or other reliable data the person possesses which indicates gross income. 

Income verification is required for tenants of Off-Farm Labor Housing—domestic 

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laborers including migrant farmworkers. Income verification is not required for tenants 

of On-Farm Labor Housing. 

Farm labor employment verification is required for all domestic farm laborers, 

whether they are year-round, seasonal, or migrant farmworkers, or farmworkers living in 

On-Farm Labor Housing. 

Third-party verification of income and employment, as applicable, is required 

whenever it is possible or available. 

When third-party verification of income and employment is not possible or available, 

the applicant or tenant may provide the borrower with an award and benefit letter, cost of 

living adjustment notice, benefit statement, bank statement, or actual benefit check. 

Using this documentation, the borrower may “self-certify” the farmworker’s application 

using any available documents or records the applicant may have or information the 

applicant can provide. In the absence of available income and employment records, the 

borrower may forecast income expected to be received by the tenant during occupancy 

for determining eligibility and rental assistance. 

B. Verification Procedure 

The borrower must establish a verification procedure to review applicant information. 

The procedure must ensure accurate determinations of eligibility and respect the 

confidentiality of all information on applicants and residents. See Attachment 6-I, 

Eligibility, Income, and Deduction Checklist, for a sample eligibility, income, and 

deduction checklist. 

1. Information to Verify 

The borrower must verify the following information: 

 Disability: Disabilities are verified only if necessary to qualify the household as an 

elderly family, or if a disability affects the household's eligibility for deductions from 

income. Verification may be provided by a physician, a clinic, welfare agency, the 

Social Security Administration, or other knowledgeable service. 

 Household composition: Verification of household composition can be 

accomplished through a variety of sources and documents. For example, a birth 

certificate or custody agreement verifies that a minor child is part of the household. 

Also, divorce or separation agreements can verify that an individual is no longer a 

member of the household. 

 Income: Acceptable Income Verification Sources for verifying income are described 

below in Exhibit 6-3. 

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Exhibit 6-3 

Acceptable Income Verification Sources 

 Verification of Employment: After the applicant/tenant submits a form authorizing the borrower to verify

employment, the borrower must send this form to each employer for verification of employment of each 

household member.

 Zero Income Persons: For Verification Guidance, see Attachment 6-B. 

 Self-Employed Persons: Self-employed applicants/ tenants must provide current documentation of income 

and expenses, which cannot be older than the previous fiscal year. The borrower must compare the income 

and expenses information provided by the applicant with the latest income tax return and clarify any 

discrepancies. 

 Unemployment and Unemployment Benefits: Unemployed applicants/tenant must complete a form, 

which provides their current employment status and requires them to agree to inform the Borrower 

immediately, in writing, if their employment status changes. Applicants/tenants receiving unemployment 

benefits must provide the most recent award or benefit letter prepared and signed by the authorizing agency 

to verify the unemployment income. 

 Regular, Unearned Income (e.g., Social Security, pensions, workers compensation):

Applicants/tenants must provide a copy of the most recent award or benefit letter prepared and signed by 

the authorizing agency. Information must be updated every 12 months to account for cost-of-living 

increases or changes in benefits. 

 Public Assistance: Applicants/tenants must provide a copy of the most recent award or benefits letter 

prepared and signed by the authorizing agency to verify the amount of public assistance received. 

 Alimony or Child Support Payments: The applicant/tenant must provide a copy of the divorce decree, 

separation agreement, or other document indicating the amount of the required support payments. The 

applicant/tenant must also report the amount received during the past twelve months. If the 

applicant/tenant reports that the amount required by the agreement is not being received, the 

applicant/tenant must document that assistance has been requested from the state or local entity responsible 

for enforcing payment. 

 Support for Foster Children or Adults: Payments received for the care of foster children or foster adults 

may be considered when calculating repayment income. Documentation must be provided indicating the 

amount of money received for the care of foster children or adults, and the anticipated period of time the 

support will be provided. 

 Income Tax Return: For self employment, a complete, legible copy of the most recently filed Federal 

income tax form may be submitted for each applicant/tenant, unless the person was exempted from filing a 

return.

 Verification of Assets and Income from Assets: The borrower requests that financial institutions verify 

account balances. For some assets such as mutual funds or 401(k) accounts, copies of year-end statements 

can provide information about annual income. Applicants/tenants must certify whether any asset has been 

disposed of for less than fair market value. 

2. Release and Consent Form 

A form verifying employment (developed by the borrower) gives applicant or resident 

permission for the borrower to ask questions about and verify information related to the 

household income and other circumstances that affect eligibility and the amount the household 

must pay. Applicants must sign the form as a condition of admission and continued occupancy. 

The form must be signed by the household head and all other household members whose 

income, assets, or other circumstances require verification. As long as the borrower retains the 

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form with original signatures in its file, a photocopy of the authorization may be provided 

to verification sources. 

The borrower must ask applicants/residents to execute the form even in cases where 

the person has not reported any income. 

3. Social Security Numbers 

Prospective tenants must provide the borrower with Social Security Numbers for 

every tenant or co-tenant in the household. The borrower may use Social Security 

Numbers to verify income information that is provided. Social Security Numbers must 

be verified only once for each resident. 

Documentation of the Social Security Number will be provided with a valid Social 

Security card or other evidence of the Social Security Number, such as a driver's license. 

If the documentation is sent by mail, the applicant may submit a photocopy. 

If the applicant does not have the documentation, the applicant should submit a 

signed certification stating his/her Social Security Number. The applicant then has 60 

days to submit acceptable documentation of the Social Security Number. This 60-day 

period can be extended for another 60 days for elderly applicants. 

4. Wage Matching Requirement 

If permitted by State law, states are required to fully implement and utilize income 

matching of tenants. See Chapter 9 of the HB-2-3560 for more information. 

 5. Tenant File Documentation 

 Borrowers must retain executed tenant certification forms and any supporting 

documentation in the tenant file for at least 3 years or until the next Agency monitoring 

visit or compliance review, whichever is longer. See Attachment 6-J, Required Tenant 

File Documentation, for a list of required documentation that must be retained in each 

tenant file. 

6.12 THE SOLDIERS AND SAILORS’ RELIEF CIVIL ACT 

 Rural Housing Service is required to provide tenants the benefits of the Soldiers and 

Sailors’ Civil Relief Act of 1940, as amended 

 The Soldiers’ and Sailors’ Relief Act of 1940 was established to protect those who serve 

the United States in the Armed Forces. The Act applies to all persons on active duty including 

reserve component service members called to active duty. 

 A tenant, co-tenant or spouse may terminate a lease covering premises occupied as a 

dwelling at any time following the date of the beginning of the period of the military service. The 

termination will be in writing and delivered to the property manager or the management firm in 

person or by mail; following the date of the beginning of the military service (a set of appropriate 

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military orders should accompany the termination letter). However, the lease termination will not 

be effective until 30 days after the first date on which the next rental payment is due. Example: 

next rent payment date is March 1; termination will be effective March 30. 

 Guardians who were not originally listed as tenants, but are so designated by the tenant or 

co-tenant, will be permitted to reside in the unit to care for minors while the tenant or co-tenant 

is absent due to military service. The term “guardian” means immediate family member, relative 

or friend. 

The Act does not relieve the recently activated military person or that persons’ household 

from meeting financial obligations. However, the Act does protect the soldier’s dependent(s) left 

behind (occupying family dwellings) from undue eviction or distress. 

A. Should eviction be necessary for violation of lease requirements, the Act provides 

opportunity for a stay of eviction for up to three consecutive months. Under no 

circumstance are borrowers entitled to take eviction matters into their own hands or to 

inform tenants that they must move because they no longer can afford the rent. The 

borrower may give the tenant notice of lease violation and termination for repeated late 

payment or nonpayment of rent in normal fashion, but evictions require court action. 

Evictions, three-month stays and relief actions are within the discretion of the court. 

Borrowers may not evict affected tenants without prior court approval. 

B. All tenants affected by the Soldiers’ and Sailors’ Civil Relief act are to be 

recertified (upon receipt of their military orders) in accordance with RD Instruction 1930-

C, in order to reflect their true rent contribution. Recertification should include all income 

such as severance pay, salary, reservist pay, housing allowance, etc. Hazard duty pay is 

not counted. Upon completion of tenant recertification, rents will be increased or 

decreased. Tenant recertification may be processed by the co-tenant, spouse or guardian 

during the period of military service. 

 Example: If a tenant was contributing $275.00 (basic rent) per month towards 

rent, and their salary has decreased or increased due to leaving a previous position for 

military service, the new contribution towards rent may be significantly decreased or 

increased. If a tenant’s salary decreased so low that their rent contribution falls below 

basic rent, the Rental Assistance (RA) allowance will increase. If no RA is available for 

the unit, the tenant, like other tenants without RA, will pay the basic rent. 

C. Single soldiers should be encouraged to place their personal belongings and 

furnishings in storage for safekeeping. Monthly rents would be due as scheduled. 

However, if a single tenant elects to leave their belongings in the apartment, they should 

be encouraged to grant a power of attorney to a competent person, and provide the 

manager with pertinent information concerning this person. If a single person does leave 

their furniture on the premises and rent is delinquent, the borrower should make 

application to the court for authorization to act. 

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SECTION 3: OCCUPANCY POLICIES AND 

OCCUPANCY RULES [7 CFR 3560.157]

6.13 OCCUPANCY POLICIES 

The purpose of the occupancy policy in a multi-family property is to establish: 

 Unit density standards; and 

 Procedures for assigning units. 

A. Unit Density Standards 

Occupancy policies set standards regarding the number of people that can be 

adequately housed in a unit of a particular size. In developing the occupancy policy for 

each unit, the borrower must take into account the following: 

 State and local codes regarding the number of persons permitted to dwell in a unit of 

a particular size; 

 The size of the rooms in the particular unit; 

 Procedures for sizing households for different unit types (how to consider temporarily 

absent household members); and 

 The order in which the property will house eligible applicants and rehouse existing 

tenants. 

 A tenant who is disabled will not be considered over housed if the tenant requests an 

additional room for a live-in aide or an apparatus related to the tenant’s disability. 

For some properties, state and local codes regarding occupancy standards may not 

exist. In these cases, the borrower should make a judgment as to how many people may 

be adequately housed, basing it on the square foot size and layout of the unit. For 

example, some properties may have several types of two-bedroom units. If one is 600 

square feet and the second type is 900 square feet, the borrower may have different 

occupancy policies for the different unit types. An example of what an occupancy policy 

might look like for the above example is detailed below: 

Unit Type Minimum Density Maximum Density 

2 Bedroom (600 sq. feet) 1 person 3 persons 

2 Bedroom (900 sq. feet) 2 persons 4 persons 

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The following is an ideal range of persons per housing unit: 

Number of Bedrooms 

Occupancy Density Range 

Minimum Maximum 

0 1 1 

1 1 2 

2 2 4 

3 3 6 

4 4 8 

5 5 10 

B. Procedures for Assigning Units 

Occupancy policies also establish the order in which eligible applicants and existing 

tenants will be housed or rehoused. 

Borrowers are required to comply with Section 5 of this chapter in selecting and 

assigning applicants to new units or relocating over- or under housed existing tenants. 

However, it is important that these requirements are detailed in the borrower’s occupancy 

policies, so that it is clear to new applicants and existing tenants how a vacant unit will be 

assigned. 

6.14 AGENCY REVIEW AND MONITORING OF OCCUPANCY POLICIES 

The Agency must concur with the borrower’s occupancy policies prior to initial 

occupancy of the project and in all future modifications. In reviewing the policies, the Agency 

must assure that the standards are in compliance with state and local laws and that they appear 

reasonable based on the unit size and type. The Agency should review compliance with the 

policies during the compliance review. If a household is residing in the property and is out of 

compliance with the occupancy policy, the borrower must follow procedures outlined in 

Paragraph 6.29 for tenants in violation of occupancy rules. 

6.15 OCCUPANCY RULES 

The purpose of the occupancy rules is to establish the basis for the tenant and 

management relationship. 

A. Basic Rules 

Exhibit 6-4 lists the basic items that borrowers must address in the occupancy rules 

for their projects. 

Occupancy rules for each project will be in writing, attached to each tenant’s lease 

upon initial occupancy, and posted in a central location (such as a central mail location) 

so that tenants may easily access the information. Modifications to these rules will be 

provided to the tenant at least 30 days prior to implementation and in accordance with the 

requirements of Section 8 of this chapter. 

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B. Pets 

For each elderly designated multi-family housing project the borrower must have 

established project rules permitting elderly or disabled tenants to keep commonly accepted 

household pets. 

Borrowers must not prohibit elderly households from keeping domestic animals in their 

unit; however the borrower may require the household to pay a pet deposit. 

Pet rules must not: 

 Prohibit, prevent, restrict, or discriminate against any tenant who owns or keeps a pet 

in their apartment unit, with respect to continued occupancy in the project unless the 

approved project pet rules are violated; 

 Prohibit, prevent, restrict, or discriminate against any applicant who owns a pet with 

respect to obtaining occupancy in the project; and 

 Charge an extra monthly rental charge for pets. 

Borrowers with existing projects must consult with the tenants of the project when 

revising pet rules and retain documentation on how the consultation process was 

conducted. 

Borrowers with new projects will establish pet rules prior to occupancy, but may 

revise those rules based on tenant comments and suggestions received after rent-up 

begins. 

Pet rules will be reasonable and will be written to consider at least the following 

factors: 

 Density of project units; 

 Pet size; 

 Type of pet; 

 Potential financial obligations of tenants who own or keep pets; 

 Standards of pet care; 

 Pet exercise areas; 

 State and local animal laws or ordinances; and 

 Liability insurance. 

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Pet rules must allow the borrower or project manager authorization to remove from 

the project any pet whose conduct or condition is duly determined to constitute a 

nuisance or threat to the health or safety of other tenants or members in the project or 

persons in the surrounding community. 

Exhibit 6-4 

Required Items for Multi-Family Housing Occupancy Rules

At minimum, the occupancy rules should include: 

 An explanation of the tenant’s rights and responsibilities under the lease or 

occupancy agreement; 

 An explanation of the tenant’s rights, protections, and responsibilities under 

VAWA (See Attachment 6-K, Section I) 

 The rent payment or occupancy charge policies; 

 The policies regarding periodic inspection of units; 

 The system for responding to tenant complaints; 

 The maintenance request and work-order procedures; 

 The project services and facilities available to tenants or members; 

 The office locations, hours, and emergency telephone numbers; 

 The restrictions on storage and prohibitions on abandoning vehicles in the 

project area; 

 The way to obtain community and public transportation schedules; 

 The policies regarding guests that become household members; 

 Other requirements related to the subsidy provided to the tenant from non–

Agency sources; and 

 The procedures tenants must follow to request reasonable accommodations. 

Regardless of the occupancy rules established for the project, the borrower must adhere to the 

following: 

 Borrowers must not prohibit animals that provide assistance to the handicapped or disabled 

from residing in the unit with the person to whom the animal is providing assistance. 

 Borrower may not require the household to pay a pet deposit for a 

service/assistance/companion animal. 

C. Tenant Organizations 

In developing and implementing the occupancy rules, borrowers must not infringe on the 

rights of tenants to organize an association of tenants. The project manager (or designated 

management representative) should be available and willing to work with a tenant organization. 

Borrowers may not unreasonably withhold the use of community rooms or other 

available space within the project when requested by: 

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 A resident organization in connection with the representational functions of the 

organization; or 

 Residents seeking to organize or to collectively consider any matter pertaining to the 

operation of the project. 

D. Community Rooms 

In developing the occupancy rules, borrowers must not place unreasonable 

restrictions on tenants that desire to use Federally financed community rooms for their 

enjoyment. While a schedule of fees may be developed for the use of the community 

space, fees should be reasonable and meant only to cover the costs of cleaning and 

maintenance of the facility being used. 

6.16 AGENCY REVIEW AND MONITORING OF OCCUPANCY RULES 

Borrowers must obtain concurrence from the Agency prior to the implementation of the 

occupancy rules, and must obtain Agency concurrence before making any modifications to the 

rules. 

If tenants believe the borrower is in violation of occupancy rules, they must be directed to 

follow the tenant grievance process outlined in Section 8 of this chapter. 

The Loan Servicer will review adherence to the occupancy rules during the compliance 

review. In a situation where the Loan Servicer believes management is in violation of the 

occupancy rules, the Agency must state the violation as a finding and require the borrower to 

resolve the problem in a specified time frame. 

In situations where the tenant is in violation of the occupancy rules and the tenant fails to 

correct the problem, the borrower should proceed to evict the tenant for material noncompliance 

with the lease. In the event that an eviction action is filed with the court, the tenant should set up 

an escrow account for the rent. 

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SECTION 4: MARKETING AND APPLICATION PROCESSING 

[7 CFR 3560.104 and 7 CFR 3560.154]

6.17 REQUIREMENTS FOR AFFIRMATIVE FAIR HOUSING MARKETING PLANS 

Borrowers with four or more units are required to prepare and maintain an Affirmative 

Fair Housing Marketing Plan (AFHMP) using Form HUD 935.2, Affirmative Fair Housing 

Marketing Plan. The purpose of this plan is to set forth how the borrower will meet their Fair 

Housing responsibilities. This plan will be submitted to the Agency for approval prior to loan 

closing. The Agency may also require periodic modifications to the plan if implementation is 

not reaching the population groups targeted by the plan. At a minimum, the AFHMP will 

address the following: 

 Outreach efforts of the property; 

 Marketing strategies; and 

 Education and training of all staff on Civil Rights laws (e.g., Title VI, Fair Housing, 

Section 504, Title IX). 

The approved plan must be posted by the borrower in a prominent location for public 

inspection. This could include the project site, the rental office, or other location where 

applications are received for the property. 

The borrower must develop and maintain a system for conducting self-assessments of the 

property staff’s performance in implementing an approved AFHMP. 

6.18 APPLICATION REQUIREMENTS AND PROCESSING 

The purpose of the tenant application process is to collect enough information regarding 

the household status to determine applicant eligibility for the specific property. This information 

should also be comprehensive enough for the borrower to make a determination about waiting 

list placement. 

A. Application Forms 

Borrowers may develop their own application form in accordance with the 

requirements of Exhibit 6-5. The borrower must retain application forms for at least 

three years or until the next compliance review is conducted by the Agency. 

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Exhibit 6-5 

Minimum Requirements for a Tenant Application

 Name and present address; 

 Household income information, including all information from sources that 

would be counted in calculating annual income, adjusted income, and net 

assets; and consent to release wage matching data to RHS and the borrower 

 Number of household members, including all members who would live in the 

dwelling unit, even those who would only live there on a part-time basis, and 

their birthdates; 

 Indication of a need for a handicap accessible unit and/or handicap or 

disability adjustments to income; 

 Applicant certification that the unit will serve as the household's primary 

residence; 

 Social Security Number for all member of the household; 

 Adjustments to income for which the household may qualify, which should be 

verified; 

 Signature and date; 

 Race, ethnicity, and gender designation; and 

 Disclosure notice. 

Borrowers using application forms must establish a section at the end of the form, 

below the signature and date block, to collect race/national origin/gender information. To 

meet the requirements of Federal Register Vol. 62 No. 210, Revision to the Standards for 

the Classification of Federal Data on Race and Ethnicity, the data collection needs to 

appear as follows: 

“The information regarding race, ethnicity, and sex designation solicited on this 

application is requested in order to assure the Federal Government, acting through the 

Rural Housing Service that the Federal laws prohibiting discrimination against tenant 

applications on the basis of race, color, national origin, religion, sex, familial status, age, 

and disability are complied with. You are not required to furnish this information, but are 

encouraged to do so. This information will not be used in evaluating your application or 

to discriminate against you in any way. However, if you choose not to furnish it, the 

owner is required to note the race, ethnicity, and sex of individual applicants on the basis 

of visual observation or surname. 

Ethnicity: 

Hispanic or Latino____ 

Not Hispanic or Latino____ 

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Race: (Mark one or more) 

1 American Indian/Alaska Native____ 

2 Asian____ 

3 Black or African American______ 

4 Native Hawaiian or Other Pacific Islander____ 

5 White_____ 

Gender: Male______ Female_____” 

The race and the ethnicity of each applicant shall be recorded on the waiting list. This 

information shall be collected for statistical purposes only and must not be used when 

making eligibility determinations or in any other discriminatory manner. The information 

shall be recorded using the race and ethnicity codes that are utilized on the Agency tenant 

certification form available in the Servicing Office. 

Borrowers must establish and maintain a specific place and time where applications will 

be accepted. This information should be posted in a central location on the property. It must 

also be documented in the Management Plan and the AFHMP and to the greatest extent 

possible communicated through outreach and marketing efforts. 

Applicants are to be provided a list of any additional information that must be submitted 

with the application for the application to be considered complete (an application will be 

considered complete without verification of the applicant information). The list of 

information must be restricted to the same items for all Agency-assisted properties of a 

particular type, such as a family or elderly complex. 

B. Application Fees 

 Application fees are discouraged, but when used, any fee charged to an applicant must be 

limited to the cost of actual services incurred for obtaining necessary information associated 

with completing a tenant certification. 

C. Maintaining Waiting Lists 

 When an applicant has submitted an application form the borrower must place the 

applicant on the waiting list. All applications, whether complete, eligible, or ineligible, will 

be placed on the list. The waiting list will document the final disposition of all applications 

(rejected, withdrawn, or placed in a unit). 

 The date and time a complete application was submitted will be recorded on the waiting 

list and will establish priority for selection from the list. If an applicant submits an 

incomplete application they must be notified in writing within 10 days of the items that are 

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needed for the application to be considered complete and that priority will not be established 

until the additional items are received. 

 The race and the ethnicity of each applicant shall be recorded on the waiting list. This 

information shall be collected for statistical purposes only and must not be used when 

making eligibility determinations or in any other discriminatory manner. The information 

shall be recorded using the race and ethnicity codes that are utilized on the Agency tenant 

certification form. 

1. Electronic Waiting Lists 

Electronic waiting lists must have a mechanism for maintaining the date and time of 

each applicant’s placement on or selection from the waiting list and a way to document 

changes made to the list. The following are examples of methods that borrowers might 

use to track inputs to the electronic waiting list and changes to it: 

 Use a data backup function to record the time and date of entry of new applications 

and changes to existing records in the electronic waiting list. 

 Print a record of the appearance of the waiting list as often as necessary (at least 

monthly) to show each applicant’s placement on and selection from the list. The time 

and the date of the printout should appear on the report. The owner can file this 

information in the tenant file and in a central waiting list file. 

 Whenever status changes occur, such as changes in family composition and unit size, 

record the change with an explanation, and print the re-sorted list. 

To the extent possible, the borrower should use electronic safeguards, such as 

assigning waiting list password access only to individuals responsible for maintaining the 

system. Ideally, a system should record the user name and the time, date, and action 

entered whenever a record is changed or entered in the electronic waiting list. 

2. Selecting Applications from the Waiting List 

Once an applicant has submitted a complete application and signed a form 

authorizing the borrower to verify employment, the date and time must be recorded on 

the waiting list to establish priority for selection. Selection from the waiting list will be 

made according to date and time in the following order: 

 Very low-income applicants; 

 Low-income applicants; and 

 Moderate-income applicants. 

See Paragraph 6.3 for information regarding how to determine the specific income 

level of an applicant. 

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Within 10 calendar days of receipt of a complete application, the borrower must notify 

the applicant in writing that he has been selected for immediate occupancy, placed on a 

waiting list, or rejected. 

The procedures used by the borrower to purge the project’s waiting list must be described 

in the project’s management plan. These procedures must be based on the length of the 

waiting list or the extent of time the applicant will be expected to wait for housing. 

6.19 REJECTION OF APPLICATIONS 

Borrowers may deny admission for criminal activity or alcohol abuse by household members. 

Borrowers must not reject an applicant solely on the basis or as a result of criminal activity 

directly relating to domestic violence, dating violence, sexual assault, or stalking, if the applicant 

otherwise qualifies for occupancy. The Direct Result provision prohibits Borrowers from rejecting 

admission to an applicant based on an adverse factor, if the adverse factor is determined to be a direct 

result of the fact that the applicant is or has been a victim of domestic violence, dating violence, 

sexual assault, or stalking. (See VAWA Attachment 6-K Section F) 

Borrowers are required to notify all applicants in writing of their ineligibility. If applicants 

are determined to be ineligible, the rejection letter must outline the reason for rejection of the 

application and their right to appeal such a decision in accordance with 7 CFR 3560.154 and 7 CFR 

3560.160. The rejection letter must advise the applicants of their right to appeal the decision within 

10 calendar days, as well as the right to a hearing. If the project is located in an area with a high 

concentration of non–English-speaking individuals, the letter must be in English and the non–English 

language that is prevalent in the area. When an applicant is rejected due to credit bureau reporting 

information, the source of the credit bureau must be revealed to the applicant in accordance with the 

Fair Credit Reporting Act. 

6.20 AGENCY REVIEW AND MONITORING OF APPLICATION PROCESSING 

In reviewing the application process employed by the borrower, the Agency should review 

the following: 

 Is adequate documentation available to determine compliance with applicant processing 

requirements? 

 Are applicants properly informed of where and when applications may be obtained and 

submitted? 

 Are applicants properly notified of their rights and protections under VAWA (VAWA 

Lease Addendum, HUD-5380 and HUD 5382 forms distribution)? 

 Does the application provide the borrower with adequate information to determine the 

applicant's place on the waiting list? 

 Is there an element in the application process that discourages targeted populations from 

submitting an application? If so, will modifying the application process encourage 

targeted, but underserved populations to apply? 

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 Are applications processed in a timely manner? 

 Are ineligible applicants adequately notified of their appeal rights under Section 8 of this 

chapter? 

Loan Servicers should review the application during the compliance review to ensure that 

adequate information is being obtained and that the above-listed questions are answered to the satisfaction 

of the Agency. 

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SECTION 5: TENANT SELECTION AND UNIT ASSIGNMENT 

[7 CFR 3560.154 AND 7 CFR 3560.155] 

6.21 ASSIGNING AN AVAILABLE UNIT 

Once a unit becomes available, the borrower must decide who is entitled to that unit 

based on a variety of factors. 

Eligible tenants residing in the property who are either under- or over-housed receive 

priority over new applicants if relocating them into the newly vacant unit would bring the 

household into compliance with the occupancy policy for the property. If there are no such overor under-housed existing tenants, the borrower must select a new applicant from the waiting list 

to fill the newly vacant unit. The borrower must use the project’s occupancy policy to look at 

applicants on the waiting list who are eligible based on the unit size. From that universe, the 

borrower must then determine, based on income levels and priorities, which applicant is entitled 

to the unit. The order in which applicant households are entitled to housing depends on two 

factors: 

 The income level of the household; and 

 The priorities for which the household may qualify. 

When an applicant first submitted an application, the borrower made an initial 

determination as to whether the household was very low-, low-, or moderate-income. Based on 

this assessment, the applicant was assigned to the very low-, low-, or moderate-income waiting 

list. When looking for the next eligible tenant for the vacant unit, the borrower must first go to 

the very-low income waiting list. If there are no applicants on the very low-income waiting list 

who qualify for the vacant unit based on the property's occupancy policy, then the borrower may 

go to the low-income waiting list. Only if there are no eligible applicants for the unit on the lowincome waiting list may the borrower select an eligible applicant from the moderate-income 

waiting list. 

6.22 PRIORITIES FOR UNITS 

A. Exceptions to Income Standard Assignment Policies 

While the basic standard is to house all very low-income applicants prior to low- and then 

moderate-income applicants, there are situations where this process may be bypassed. However, 

an individual in one of the situations identified below would not be eligible for housing before 

applicants on the waiting list for a lower income category. 

 If the unit is a handicapped accessible unit, then an eligible household that needs the 

features of that unit will receive priority over all other applicants, regardless of 

income. If more than one applicant needs the features of the handicapped accessible 

unit, then applicants who are very low-income would have priority, followed by lowand then moderate-income households. 

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 In congregate housing facilities, applicants who qualify for and agree to utilize the 

services provided by the facility will be housed over all other applicants on the 

waiting list. Where there is more than one applicant that meets this criterion, the 

applicants meeting this condition will be ranked by very low-, low-, and moderateincome and housed in accordance with the occupancy policies established at the 

property. 

 Borrowers with projects receiving low-income housing tax credits (LIHTCs), may 

leave a housing unit vacant if they are required to rent the available unit to an LIHTCeligible applicant, and none of the applicants on the waiting list meet the applicable 

LIHTC eligibility requirements. 

Example— Exceptions 

Project B has two handicap-accessible units. There are three 

handicapped individuals who need the features of the handicapaccessible units on the waiting list: one moderate income and two 

low-income. The property has a waiting list of 20 very low-income 

applicants. The borrower must rent the two handicap-accessible 

units to the two low-income applicants. 

Project Z is a congregate housing facility and has a vacant onebedroom unit. There are three individuals eligible for a onebedroom unit on the waiting list: two very low-income applicants 

and one low-income applicant. All qualify for congregate care 

services. Only one of the very low-income applicants, however, 

would agree to use the congregate care facilities. The borrower 

would have to offer one of the vacant units to the very low-income 

applicant who agrees to use the services and the other unit to the 

low-income applicant who agrees to use the services.

 Letter of Priority Entitlement (LOPE), Handbook Letter 201. A letter issued by the 

Agency providing a tenant with priority entitlement to rental units in other Agencyfinanced housing projects for 120 days from the date of the LOPE. Persons receiving 

a VAWA LOPE, displaced persons in a Federally declared disaster area have priority 

over all other applicants of the individual applicant’s income group 

Example 

Project C has a vacant three-bedroom apartment. There are no 

applicants eligible for a three-bedroom unit on the very low-income 

waiting list. There are 20 applicants eligible for a three-bedroom unit 

on the low-income waiting list. A holder of a LOPE applies for 

occupancy at the project. The applicant is low-income and qualifies 

for a two-bedroom unit. Despite the number of applicants on the 

waiting list, the borrower must offer the available unit to the LOPE 

holder, and the LOPE holder agrees to move to the appropriate-size 

unit when one becomes available. 

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 Borrowers who have adopted an admission or waiting list priority for victims of 

domestic violence, dating violence, sexual assault, or stalking who are non-RD 

tenants referred by other federal, state, or local housing agencies, or a partnering 

service organization. Such victims may receive priority over all other applicants of 

the individual applicant’s income group. (See Attachment 6-K Section Q) 

B. Assignment of Rental Units Accessible to Individuals with Disabilities 

If a rental unit accessible to individuals with disabilities is available and there are no 

applicants that require the features of the unit, the borrower may rent the unit to a nondisabled tenant under the following conditions: 

 The borrower must include a provision in the lease requiring the tenant to vacate the 

unit within 30 days of notification to an appropriate sized vacant unit within the 

project, if one is available from management that an eligible individual with 

disabilities requires the unit; 

 The unit has been marketed as an accessible unit; 

 Outreach has been made to organizations representing the disabled; and 

 Marketing of the unit as an accessible unit continues after it is rented to a tenant who 

is not in need of the special design features. 

Borrowers receiving HUD Section 8 project-based assistance may establish 

preferences in accordance with HUD regulations. The use of such preferences must be 

documented in the project’s management plan. 

6.23 AGENCY MONITORING AND REVIEW OF UNIT ASSIGNMENT 

The selection and assignment of units is one of the most important aspects to managing a 

property. Borrowers and management agents must assure onsite management staff are well 

versed in Agency policy and guidance regarding this subject or require the borrower to modify 

the management plan to reflect increased training in this area. The Loan Servicers will review 

the waiting lists and completed applications to ensure that: 

 Units which are not needed to relocate existing tenants are first offered to eligible 

very low-income families; and 

 Units are offered to households in accordance with the borrower's occupancy policy. 

If Loan Servicers find that the borrower or the agent is failing to follow Agency policy in 

assigning available units, Loan Servicers may require the borrower modify the management plan 

to clearly reflect Agency policy and/or enhance the training of management staff responsible for 

assigning units. 

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SECTION 6: DWELLING LEASES [7 CFR 3560.156]

6.24 OVERVIEW OF DWELLING LEASES 

A lease between the borrower and the tenant is required to be executed before any tenant 

occupies a unit in a multi-family housing project. This section will provide information 

regarding how the borrower will develop that lease and what action is needed by the Agency 

before the lease may be used. The Agency must approve the lease before the borrower enters 

into a lease agreement with any tenant. 

6.25 DEVELOPMENT OF A LEASE 

The borrower is responsible for the development of the tenant lease that will be used at 

the property. This lease must contain the required items, provisions and clauses outlined in 

Attachment 6-E and must be free of prohibited clauses listed in Attachment 6-F. It must also 

be in compliance with state and local laws. If there are conflicting requirements between 

Federal, state, and local laws, the borrower must notify the Agency of the conflict and request 

guidance. Once a lease is developed by the borrower, the borrower's attorney must certify that 

the lease is in compliance with the requirements of 7 CFR 3560.156 and Attachments 6-E and 

6-F prior to submission of the lease to the Agency for approval. The Agency must approve with 

all leases proposed for use at an Agency-related property, prior to the use of that lease. 

6.26 EXECUTION OF THE LEASE WITH THE TENANT 

Prior to the occupancy of any unit by an applicant, the applicant and the borrower must 

execute a lease that has been approved by the Agency. Once a lease has been executed with the 

applicant, they are entitled to occupy the unit so long as they remain eligible and comply with 

lease renewal requirements. Expiration of the lease is not of itself grounds for a termination of 

tenancy. 

6.27 AGENCY REVIEW AND MONITORING OF LEASE REQUIREMENTS 

The management agent must review and monitor the implementation of the lease with the 

applicant/tenant to ensure that they are properly informed of their rights and responsibilities 

under the lease. During the compliance review process, the Agency should look to assure: 

 The occupancy rules are attached to the initial lease; 

 The applicant understands their rights to the tenant grievance process under HUD 

Section 8 and 7 CFR 3560.160; and 

 The applicant understands the process for relaying information such as maintenance 

requests and income information to management and the responsibility to do so in a 

timely manner. 

 The applicant understands their rights, protections, and responsibilities under the 

VAWA Lease Addendum. (See Attachment 6-K Section I, paragraph 5) 

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If the Loan Servicer finds the borrower is failing to provide adequate information 

regarding the rights and responsibilities of the tenant and the management agent, the Loan 

Servicers should require the borrower to improve the management plan and training of onsite 

staff. 

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SECTION 7: TENANT RECERTIFICATION AND 

CHANGES IN ELIGIBILITY [7 CFR 3560.152 and 7 CFR 3560.158]

The recertification process developed in this section is designed to ensure a tenant 

remains eligible to reside in multi-family housing. As household status changes, the size of the 

unit needed by the household or the amount of rent that they are obligated to pay may change. 

This section discusses when a recertification is required and what action the borrower will be 

required to take if a household is determined ineligible to continue residing at the property. 

6.28 REQUIREMENTS TO RECERTIFY TENANTS 

A. The Annual Recertification Process 

Each time a resident is recertified, the certification is good for one year, unless 

subpart 2 of this paragraph requires a recertification to be completed more frequently. At 

the end of the year the certification will expire and the borrower is required to recertify 

the household. The effective date of the tenant’s recertification is the first day of the 

month following the expiration of the current certification. Using the procedures outlined 

in Section 1 of this chapter, the borrower will complete a new certification. The key 

steps to this process include: 

1. Notifying the Tenant of the Recertification Requirement 

At least 75 to 90 days prior to the date that the certification expires, the borrower 

must notify the tenant in writing that they must be recertified to remain eligible to 

continue residence at the property. This letter will also include what information the 

borrower needs from the household in order to complete the certification. 

If the household still fails to respond to the letter, the borrower should issue a second 

letter 30 days prior to the date which the certification expires informing the tenant of the: 

 Information needed to recertify; 

 The time frame in which the new certification must be submitted to the Agency; and 

 The consequences for failure to comply with the recertification process. 

2. Execution of the New Certification 

Upon receiving the information regarding household size and income from the tenant, 

the borrower will verify the information and the borrower and the tenant will complete a 

new Form RD 3560-8. This form will document the calculation of annual income and 

adjusted income (in accordance with Section 1 of this chapter) and the calculation of the 

tenant payment (in accordance with Chapters 7 and 8). Management agents must give 

each new adult household member the VAWA Form HUD-5380, “Notice of Occupancy 

Rights” and the Form HUD-5382, “Certification of Domestic Violence” with 

acknowledgement of receipt. (See Attachment 6-K Section R) 

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B. Interim Recertification Process 

Tenants and borrowers must execute an Agency-approved tenant certification form 

establishing the tenant’s eligibility prior to occupancy. In addition, tenant households 

must be recertified and must execute a tenant certification form at least annually or 

whenever a change in household income of $100 or more per month occurs. Borrowers 

must recertify for changes of $50 per month, if the tenant requests that such a change be 

made. 

1. Tenant Requirements 

 Tenants must provide borrowers with the necessary income and other household 

information required by the Agency to determine eligibility. 

 Tenants must authorize borrowers to verify information provided to establish their 

eligibility or determination of tenant contribution. 

 Tenants must report all changes in household status that may affect their eligibility to 

borrowers. 

 Tenants who fail to comply with tenant certification and recertification requirements 

will be considered ineligible for occupancy and will be subject to unauthorized 

assistance claims, if applicable, as specified in 7 CFR part 3560, subpart O. 

2. Borrower Requirements 

 Borrowers must verify household income and other information necessary to establish 

tenant eligibility for the requested rental unit type, in a format approved by the 

Agency, prior to a tenant’s initial occupancy and prior to annual or other 

recertifications. 

 Borrowers must review all reported changes in household status and assess the impact 

of these changes on the tenant’s eligibility or net tenant contribution. 

 Borrowers must submit initial or updated tenant certification forms to the Agency 

within 10 days of the effective date of an initial certification or any changes in a 

tenant’s status. The effective date of an initial or updated tenant certification form 

will always be a first day of the month. 

 Since tenant certifications are used to document interest credit and rental assistance 

eligibility and are a basic responsibility of the borrower under the loan documents, 

borrowers who fail to submit annual or updated tenant certification forms within the 

time period specified in Paragraph 6.27 B of this section will be charged overage, as 

specified in 7 CFR 3560 203(c). Unauthorized assistance, if any, will be handled in 

accordance with 7 CFR part 3560, subpart O. 

 Borrowers must give each adult household member the VAWA Form HUD-5380, 

“Notice of Occupancy Rights” and the Form HUD-5382, “Certification of Domestic 

Violence” with acknowledgement of receipt. (See Attachment 6-K Section R) 

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 Borrowers must submit tenant certification forms to the Agency using a format 

approved by the Agency. 

 Borrowers must retain executed tenant certification forms and any supporting 

documentation in the tenant file for at least 3 years or until the next Agency 

supervisory visit, whichever is longer. 

 The Agency maintains the right to independently verify tenant eligibility information. 

C. Submission of the Certification to the Agency 

Once the borrower and the tenant execute a certification, it must be submitted to the 

Agency within 10 days of the effective date of the certification. In order for a 

certification to be valid, it must be signed and dated by all parties on or before the 

effective date and maintained in the tenant file. If a borrower fails to submit a 

certification by the effective date, it will result in monetary penalties to the borrower as 

established in Chapter 7. 

6.29 AGENCY REVIEW AND MONITORING OF THE RECERTIFICATION 

PROCESS 

A. Agency Review 

The recertification process is designed to ensure that Agency programs are 

serving income-eligible households on an ongoing basis. Loan Servicers review of the 

recertification process should be designed to ensure that recertifications are executed in a 

timely manner. The Loan Servicers should make the following assessments: 

 Are tenants receiving the proper notice—at least 90 days in advance of the expiration 

of the current certification? 

 Are adult household members acknowledging receipt of the forms HUD-5380 and 

HUD-5382? (See Attachment 6-K Section R) 

 Does the notice provide the tenant with a list of the information needed for the 

completion of the recertification process? 

 Are borrowers accurately determining when an interim recertification is needed? 

Are interim recertifications being executed on a timely basis (i.e., no later than 30 

days from the time the information is provided to the borrower)? 

 Does the certification form provide the information needed by the Agency to 

determine that the tenant payment and rental subsidy have been calculated correctly? 

 Is the borrower completing the verification of information on a timely basis? 

 

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If the Loan Servicer concludes that the borrower is deficient in recertifying 

existing tenants, the Agency must require the borrower and the management agent to 

modify existing practices and procedures to ensure a more timely delivery of 

recertifications to the Agency. This could include: 

 Modification of the management plan to incorporate stronger or more specific 

procedures with regard to recertifications; 

 Enhanced training for onsite staff in processing Agency certifications; and 

 Stronger enforcement of the penalties for tenants who fail to comply with the 

recertification process. 

B. Management Agent Interactive Network Connection (MINC) 

MINC is the mechanism by which borrowers submit tenant certifications to the 

Agency electronically on a monthly basis. 

Within twelve months of the date of publication of the interim final regulation, for 

projects with eight units or more, all borrowers will be required to submit tenant 

certifications through MINC. The Agency may make an exception to this requirement if 

the borrower submits documentation that the costs associated with electronic submission 

of tenant certifications would pose a financial hardship to the project. 

If the borrower is using MINC, certifications must be submitted by the tenth of the 

month for which they are due. For instance, if the borrower is submitting certification 

due in May with an effective date of May 1, the certifications must be electronically 

transmitted to the Agency by May 10. If for any reason the borrower is unable to 

transmit the certifications electronically during a given month, the borrower must submit 

the hard copies of the certifications to the Agency for receipt by the tenth of the month. 

Borrowers who are not using MINC must either submit certifications by diskette or 

hard copies to the Agency for receipt by the tenth of the month. 

Regardless of the transmission method used—MINC or hard copies—if the Agency 

does not receive certifications by the tenth of the month in which they are due and the 

borrower has not notified the Agency that the transmission will be late; the borrower will 

be subject to overage penalty. 

Attachment 6-G provides guidance on the allowable sources of funds for obtaining 

automation capabilities. 

6.30 INELIGIBLE TENANTS 

Ineligible tenants are those who, upon recertification, fail to meet either the income or the 

occupancy requirements for the unit and property that they currently occupy. Regulations 

require that tenants who are no longer eligible to reside at the property be given notice that they 

must vacate the property within 30 days or at the end of their lease, whichever is longer. 

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A. Continuation of Tenancy—Tenants Who Fail to Comply with the Occupancy 

Policy 

In some situations, a tenant may be ineligible based on the size of the unit currently 

occupied, but could become eligible if shifted to a unit of a different size (either larger or 

smaller) within the property. In this situation, a tenant may continue tenancy as an 

ineligible tenant, but the borrower should relocate the household to the proper unit size as 

soon as a unit of that size becomes available. 

In some cases, a household may require a unit size that is unavailable at the property. 

In this situation the tenant would be considered ineligible and required to vacate the 

property within 30 days or at the end of their lease, whichever is longer. 

B. Continuation of Tenancy—Tenants Who Fail to Comply with the Income 

Requirements for the Property 

In most cases, if tenant certifications indicate that they no longer comply with the 

income limits set for the property, tenants must be notified about vacating the property in 

30 days or at the end of their lease, whichever is longer. 

In two specific situations, borrowers may permit ineligible households to reside at the 

project with prior Agency approval: 

 The waiting list for the specific unit type has no eligible tenants; or 

 The required time period for vacating the unit would create a hardship on the 

household. 

Elderly households with incomes above the moderate-income level may occupy 

projects with an Agency loan approved prior to 1968 with a loan agreement that does not 

restrict occupancy by income. 

C. Cooperative Members 

Any persons who are eligible members of a cooperative will not be considered 

ineligible or subsequently deprived of their membership by reason of no longer meeting 

the income-eligibility requirements as defined in 7 CFR 3560.152. 

D. Remaining Household Members 

Members of a household residing in a multi-family housing project may continue to 

occupy the unit after the departure of the original tenant, regardless of age, provided that: 

 They are eligible with respect to income; 

 They were either a cotenant or member of the household, have the legal capacity to 

sign the lease, and are U.S. citizens or qualified aliens; 

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 They occupied the unit with the original tenant at the time the original tenant died or 

departed; 

 They sign a new tenant certification establishing their own tenancy; and 

 They have the legal ability to sign a lease for the rental unit, except where a legal 

guardian may sign when the tenant or member is otherwise eligible. 

Remaining household members that are over housed must move to a suitably sized 

rental unit within 30 days of its availability. If a suitably sized unit does not exist at the 

property, the tenant will be required to vacate the property in accordance with Paragraph 

6.32 A. 

E. Surviving Household Members 

Members of an elderly household residing in an elderly project may continue to 

occupy the unit after the death of the original tenant, regardless of age, provided that: 

 They are eligible with respect to income; 

 They were either a co-tenant or member of the household and have the legal capacity 

to sign the lease; 

 They occupied the unit with the original tenant at the time the original tenant died or 

departed; 

 They sign a new tenant certification establishing their own tenancy; and 

 They have the legal ability to sign a lease for the rental unit, except where a legal 

guardian may sign when the tenant or member is otherwise eligible. 

Surviving household members who are over housed may remain in the unit, but must 

move to a suitably sized rental unit within 30 days of its availability. If a suitably sized 

unit is not available, surviving household members may remain in the rental unit 

according to the housing project’s occupancy rules as follows: 

 Continued occupancy of the rental unit will not be allowed when: 

 The rental unit has accessibility features for individuals with disabilities; 

 The household no longer has a need for such accessibility features; and 

 The housing project has a tenant application from an individual with a need for 

the accessibility features. 

 If the housing project does not have a tenant application from an individual with a 

need for the accessibility features, the household may remain in the rental unit until 

the housing project receives an application from an individual in need of the 

accessibility features, at which point, the household will be required to move within 

30 days; and 

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 If a suitably sized unit is not available in the project within 30 days, the tenant may 

remain in the unit with accessibility features until a unit becomes available, and must 

then move within 30 days. 

F. Agency Review and Monitoring of Ineligible Tenants 

For an ineligible tenant to remain at the property beyond the allowable time frame of 

30 days or the end of the lease, whichever is longer, the borrower must obtain written 

permission from the Agency. In granting such permission, the Agency should assure that 

one of two criteria exist: 

 The waiting list for the specific unit type has no eligible tenants; or 

 The required time period for vacating the unit would create a hardship for the 

household. 

In reviewing whether the borrower is in compliance with the requirements to remove 

ineligible tenants the Agency should check to ensure: 

 The borrower is requesting approval for ineligible tenants to remain on the property 

in a timely manner. 

 The borrower is properly documenting any reason for which an ineligible tenant is 

being allowed to continue to reside in the property. Some of these reasons may 

include: 

 Permission has been granted by the Agency for the tenant to remain temporarily; 

 The tenant is a surviving member of an elderly household; or 

 The household is still income eligible and will be moved to an appropriate-size 

unit when one becomes available at the property. 

 The borrower is providing proper notice to tenants regarding the time frames for 

vacating the property. 

6.31 LEASE VIOLATIONS 

Borrowers may require tenants in violation of occupancy rules or the terms of their lease 

to vacate the property in accordance with the terms of their lease agreement. However, 

borrowers must provide notice to such tenant in a format that is in compliance with state and 

local laws and is approved by the Agency. 

6.32 TERMINATION OF OCCUPANCY 

A. Tenants in Violation of the Lease 

In accordance with the lease, a borrower may terminate or refuse to renew a tenant’s 

lease for material noncompliance with the lease or occupancy rules or for other good cause. 

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Borrowers must not terminate occupancy solely on the basis of criminal activity directly relating 

to domestic violence, dating violence, sexual assault, or stalking that is engaged in by a member 

of the household of the tenant or any guest or other person under the control of the tenant, if the 

tenant or an affiliated individual of the tenant is the victim or threatened victim of such domestic 

violence, dating violence, sexual assault, or stalking. Good cause for purposes of occupancy 

terminations does not include an incident of actual or threatened domestic violence, dating 

violence, sexual assault, or stalking where the tenant or affiliated individual of the tenant is a 

victim or threatened victim of such incident. The Direct Result provision prohibits Borrowers from 

terminating tenancy based on an adverse factor, if the adverse factor is determined to be a direct 

result of the fact that the tenant is or has been a victim of domestic violence, dating violence, sexual 

assault, or stalking. (See Attachment 6-K Section F) 

Material noncompliance with lease provisions or occupancy rules includes actions such as: 

 Violations of lease provisions or occupancy rules that are substantial and repeated; 

 Nonpayment or repeated late payment of rent or other financial obligations due to the 

borrower; and 

 Admission to or conviction for use, attempted use, possession, manufacture, sale or 

distribution of an illegal controlled substance. Such activity must have occurred on 

the project’s premises by the tenant, a member of the tenant household, or any other 

person under the tenant’s control at the time of the activity. 

For purposes of terminating a tenant’s occupancy, good cause includes actions by the 

tenant or member of the tenant’s household that: 

 Threaten the health and safety of other persons or the right of other persons to 

peaceful enjoyment of their dwelling; 

 Result in substantial physical damage causing an adverse financial effect on the 

housing or other persons’ property; and 

 Are actions prohibited by state or local law. 

If the borrower terminates the tenant’s lease, the borrower must document in writing 

in the tenant’s file: 

 The incidences related to the lease; and 

 That the tenant was given notice prior to the termination that the tenant’s activities 

would result in occupancy termination. 

Prior to terminating a lease, the borrower must give the tenant written notice of the 

violation and give the tenant an opportunity to correct the violation. Subsequently, 

termination may only occur when the incidences related to the termination are 

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documented and there is documentation that the tenant was given notice prior to the 

initiation of the termination action that their activities would result in occupancy 

termination. 

B. Other Lease Terminations 

A landlord may terminate occupancy for conditions beyond the tenant’s control, 

such as: 

 Required repair or rehabilitation of the building; or 

 Natural disaster. 

Under these circumstances, the affected tenants may request a LOPE from the 

Agency. The LOPE will provide the tenant with priority entitlement to rental units in 

other Agency-financed projects for 120 days from the date of the LOPE. If tenants need 

additional time to secure replacement housing, the Agency may, at the tenant’s request, 

extend the LOPE entitlement period. Tenants that are displaced due to circumstances 

beyond their control are entitled to benefits under the Uniform Relocation Act. 

 SECTION 8: TENANT GRIEVANCE PROCEDURES [7 CFR 3560.160]

This section presents the process for resolving tenant grievances. Every step of the 

process will be explained with the responsibilities of each party involved. Topics covered in this 

section include when to file a complaint, the hearing process, requirements governing the 

hearing, and the hearing decision. It is important to note that a resolution that is in the best 

interest of everyone should have gone through the entire grievance process before a final 

decision was made. 

Tenants or prospective tenants may file a grievance in writing with the borrower in 

response to a borrower action, or failure to act, in accordance with the lease or Agency 

regulations that results in a denial, significant reduction, or termination of benefits or when a 

tenant or prospective tenant contests a borrower’s notice of proposed adverse action as provided 

in Paragraphs 6.31 and 6.32. 

6.33 NOTICE OF ADVERSE ACTION 

In the case of a proposed action that may have adverse consequences for tenants or 

prospective tenants such as denial of admission to occupancy and changes in the occupancy rules 

or lease, the borrower must notify the tenant or prospective tenant in writing. The notice must 

give specific reasons for the proposed action. The notice must also advise the tenant or 

prospective tenant of “the right to respond to the notice within 10 calendar days after date of the 

notice” and of “the right to a hearing in accordance with 7 CFR 3560.160 (f), which is available 

upon request.” The notice must contain the information specified in 7 CFR 3560.160 (a)(2). For 

housing projects in areas with a concentration of non-English-speaking individuals, the notice 

must be in English and the non-English language. 

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6.34 OVERVIEW OF THE PROCESS 

The grievance process should always begin with an informal meeting between the 

grieved party and the borrower/management agent. It is the Agency’s belief that the best way to 

resolve grievances is through an informal meeting between the two parties. Borrowers must 

offer to meet with tenants to discuss the grievance within 5 calendar days of receiving the 

grievance. If an informal meeting is held, the borrower must provide a summary of the meeting 

to the tenant within 10 calendar days of the meeting date. The Agency encourages borrowers 

and tenants or prospective tenants to make an effort to reach a mutually satisfactory resolution to 

the grievance at the meeting. 

The parties will select a hearing panel or hearing officer to govern the hearing. Within 10 

calendar days after the hearing, all parties are informed of the decision. Exhibit 6-6 provides an 

example of the grievance process. 

6.35 WHEN IS A TENANT GRIEVANCE LEGITIMATE? 

It is important for the management agent to determine if a tenant or prospective tenant’s 

grievance is within the requirements established for the program. For example, “I want to file a 

complaint because the manager does not speak to me,” is not a legitimate complaint. On the 

other hand, a complaint that the building manager fails to maintain the property according to the 

Agency guidelines is a legitimate complaint. Exhibit 6-7 lists the circumstances in which a 

tenant may or may not be able to file a complaint. 

6-46 

RESOLUTION 

within 5 

calendar 

days 

Owner or 

manager 

proposes an 

adverse 

action (in 

within 10 

calendar 

days 

Exhibit 6-6 

The Grievance and Appeals Process 

Cause for 

grievance 

Schedule 

hearing

Hold 

hearing

Applicant/tenant 

presents grievance 

or response to 

notice of proposed 

adverse action.

Informal 

meeting 

to resolve

Applicant/tenant 

requests a hearing

Within 15 calendar days 

within 10 calendar days 

Borrower and 

tenant select 

hearing officer or 

hearing panel 

Hearing panel 

delivers written 

decision to borrower, 

applicant, tenant and 

Agency 

within 10 calendar days 
HB-2-3560 

Exhibit 6-7 

Tenant Complaints—Allowable Circumstances 

A complaint may NOT be filed if: A complaint MAY be filed if:

 There is a proposed rent change that is 

authorized by the Agency. 

 A tenant or prospective tenant believes 

that they have been discriminated against. 

If a person believes that discrimination has 

occurred, they should file a complaint with 

the USDA’s Office of Civil Rights or the 

Secretary of HUD. 

 A project has formed a tenant’s 

association and all parties involved have 

agreed to use this association as a method 

of settling grievances. 

 There are changes in the rules that are 

required by the Agency and proper notice 

has been given. 

 The tenant is in violation of the lease and 

those violations result in termination of 

tenancy. 

 Disputes between tenants that do not 

involve the borrower/management agent. 

 Displacement or other effects as a result of 

prepayment. 

 There is a modification of the lease, 

change in the rules, or changes in the rent 

that are not authorized by the Agency. 

 The borrower/management agent fails to 

maintain the property in a manner that is 

decent, safe, and sanitary. 

 The borrower violates a lease provision or 

occupancy rule. 

 Denial of admission to the project by a 

prospective tenant. 

6.36 BORROWER/MANAGEMENT AGENT RESPONSIBILITIES 

The borrower/management agent is responsible for providing all tenants and prospective 

tenants with decent, safe, and sanitary housing. The following is a list of all of the 

responsibilities of the borrower/agent: 

 Post all regulations, summary of regulations, or tenant information, including the 

equal housing opportunity poster, “and justice for all” poster, tenant grievance and 

appeals procedures, the AFHMP, occupancy rules, and office and emergency hours 

and phone numbers in a conspicuous place. 

 Provide all tenants with a summary of their rights at the time the lease is signed and at 

each lease renewal. For tenants that are currently living in the project, a summary 

must be submitted once the summary is created. 

 If the project has a large population of non-English-speaking tenants, the 

borrower/agent must provide the summary and any other documents that pertain to 

the tenant’s rights, in the non–English language. 

6-47 

(02-24-05) SPECIAL PN 
HB-2-3560 

6.37 THE HEARING PROCESS 

A. Request for a Hearing 

 Each hearing process must begin with the request for a hearing. The tenant or 

prospective tenant must present their request within 10 days after the receipt of the 

summary of the informal meeting. The request must contain the following 

information: 

 The reason for the grievance or contest of the borrower/management agent’s 

proposed action; 

 The action relief sought; and 

 Additional information. 

 If the tenant or prospective tenant’s request for a hearing is not received within the 

given time, the borrower or management agent’s decision will become final. 

B. Scheduling the Hearing 

The hearing must be scheduled within 15 days after the receipt of the tenant’s request 

for a hearing. If a hearing officer or hearing panel must be selected, the hearing will be 

scheduled within 15 days after the selection or appointment of a hearing officer or 

hearing panel. It is the responsibility of the two parties to agree upon a place and time 

that is mutually convenient to hold the hearing. If the two parties cannot agree on a place 

and time, it will become the responsibility of the hearing officer or hearing panel to make 

the decision. 

C. Selection of the Hearing Officer or Hearing Panel 

The two parties must select a hearing officer. If the hearing officer cannot be agreed 

upon, the two parties will choose members to serve on the hearing panel. The hearing 

panel should consist of three members. The tenant and the borrower/management agent 

will each elect one person to the panel. It is then the responsibility of the two chosen 

members to elect a third member to the panel. If within 30 days from the time the request 

for the hearing was submitted a hearing panel has not been formed, the borrower/ 

management agent must inform the Agency. Within 10 days of reviewing the facts, the 

Agency must appoint a hearing officer. Once a hearing officer or panel is selected the 

Agency must inform them in writing of their responsibilities for conducting the hearing. 

Some helpful information that should be remembered by all parties involved in the 

process when selecting a hearing officer or hearing panel includes: 

6-48 
HB-2-3560 

Potential Hearing Panel Members 

1. Legal aid counsel; 

2. Someone with knowledge of the 

program; or 

3. A Minister. 

 Hearing panel members should be impartial, 

disinterested persons; 

 The hearing officer cannot be a person 

previously considered by the tenant or 

borrower/management agent; and 

 The hearing officer cannot be an Agency 

staff member. 

 The hearing officer may not receive any payment unless that payment is made by the 

Agency. 

To minimize time and the level of effort, a management agent may elect to have a 

standing hearing panel for each project that they manage. If a standing panel is chosen, 

the above-listed process will have to be forfeited in lieu of the following process. 

 A hearing panel consists of three members: one tenant panelist, one 

borrower/management agent panelist, and a chair. 

 Tenants will get to nominate and vote for their panel members. A meeting must be 

held to allow the tenants the opportunity to choose two members to serve on the 

standing panel; one member will serve as the alternate. All residents should be 

notified of the time, date, and place where the election is going to take place. The 

borrower is responsible for ensuring that the notice is placed in a conspicuous place, 

within 2 weeks of the time the person is expected to start serving as a panel member. 

The meeting must also be held in a place that is convenient and accessible to the 

tenants. 

 The borrower/management agent is responsible for selecting one or two members to 

serve on the standing panel. If two members are chosen, one will serve as the 

alternate. 

 The third and “mutual” member of the panel will serve as the chair for the panel. The 

other two interested parties will elect the chairperson. Each party will only have the 

opportunity to give one vote, even if two people were elected to serve on the panel. 

 Each member will serve on the panel for one year, with the opportunity for reelection. 

All members of the standing panel must be willing to render their services without 

compensation. 

D. Examination of Records 

At a reasonable time before the hearing, the borrower/agent must allow the tenant the 

opportunity to examine all files that are going to be used during the hearing. Documents 

can be examined and copied if: 

6-49 

(02-24-05) SPECIAL PN 
HB-2-3560 

Documents That May Not Be Copied

1. Credit reports; 

2. Project budgets; and 

3. Supervisory findings. 

 The tenant is willing to cover any expenses that may be incurred; 

 The document, record, or policy is one 

that will be used during the hearing 

process; and 

 The document, record, or policy is not 

subject to any laws or confidentiality 

agreements that prohibit reproductions. 

E. Escrow Deposits 

Tenants may establish escrow accounts if a grievance involves a rent increase not 

authorized by the Agency or if the borrower/agent is not maintaining the property in a 

decent and sanitary manner. The escrow account will allow the tenant the opportunity to 

make timely rent payments without having the borrower/agent receive the payment until 

the grievance has been settled. To maintain an escrow account, tenants must adhere to 

the following rules: 

 All deposits must continue until the grievance is resolved; 

 The institution that the escrow account is established in must be a Federally insured 

institution; 

 All deposits must be made on time—failure to do so will terminate the entire process 

and all sums will be due immediately; and 

 Tenants must make all receipts of deposit available for examination by the 

borrower/agent. 

6.38 REQUIREMENTS GOVERNING THE HEARING 

The hearing is an informal proceeding at which evidence is presented to a hearing officer 

or hearing panel. The hearing must be designed to ensure that the rights of all parties involved 

are protected. The hearing must protect: 

 The right of both parties to be represented by counsel or another person(s) chosen as 

their representative; 

 The right of the tenant or prospective tenant to a private hearing unless a public one is 

requested; 

6-50 
HB-2-3560 

Remember 

The Agency approval is only to make 

sure that the decision is in compliance 

with other Agency programs. 

 The right of the tenant or prospective tenant to present oral and written evidence and 

arguments in support of their grievance or appeal, and to refute the evidence and 

cross-examine all witnesses on whose testimony or information the borrower or 

management agent relies; and 

 The right of the borrower or management agent to present oral and written evidence 

and arguments in support of the decision, to refute evidence relied upon by the tenant 

or prospective tenant, and to confront and cross-examine all witnesses on whose 

testimony or information the tenant or prospective tenant relies. 

During the hearing, each party must present 

evidence to support their position. All participants 

at the hearing must conduct themselves in an orderly 

manner. Participants that cannot conduct themselves 

in an orderly manner will be excluded from the 

proceedings or will cause the hearing panel or 

hearing officer to make a decision that is not in favor 

of the disorderly party. 

If the tenant or prospective tenant or management agent fails to appear at a scheduled 

hearing, the hearing officer or hearing panel may choose to postpone the hearing for no more 

than 5 days or may determine that the party has waived their right to a hearing under this subpart. 

If the determination is made that the absent party has waived their rights, the hearing officer or 

hearing panel will make a decision on the grievance. All parties involved in the hearing must be 

informed of the hearing panel’s decision. 

6.39 THE HEARING DECISION 

It is the responsibility of the hearing officer or hearing panel to prepare and submit a 

written decision to both parties within 10 calendar days of the hearing. The hearing officer or 

hearing panel must inform the Agency of the decision and the reasons for making that decision. 

The decision should be based on the facts that were presented during the hearing. The decision is 

not final until it has been approved by the Agency for compliance. This contingent form of 

approval should be noted in the decision letter. Upon receipt of the letter, the borrower and the 

tenant must comply with the directives specified in the decision. 

SECTION 9: SPECIAL REQUIREMENTS FOR LABOR HOUSING 

[7 CFR 3560.575 AND 7 CFR 3560.624]

While the Agency-sponsored Labor Housing programs have similar requirements in 

many respects to the Rural Rental Housing programs, because the target populations that these 

programs serve vary, there are some differences in program rules. 

6-51 

(02-24-05) SPECIAL PN 

Revised (07-27-05) PN 388 
HB-2-3560 

This section is designed to highlight these differences with regard to the occupancy rules. 

Unless otherwise noted below, the requirements throughout this chapter also apply to Labor 

Housing projects. 

6.40 OFF-FARM LABOR HOUSING 

A. Eligible Tenants 

Labor Housing tenants must meet all of the following criteria in order to be defined as 

an eligible tenant for the purposes of residing in labor housing: 

 Occupational. An eligible household must include a tenant or co-tenant who is a 

domestic farm laborer, a retired or disabled domestic farm laborer, or must be a 

surviving household of a deceased domestic farm laborer. 

 Income. The household must meet the definition of income eligibility as defined in 

Section 1 of this chapter. The current income limits for off-farm labor housing may 

be found in Attachment 6-H.

 Occupancy. The household must remain in compliance with the borrower’s 

occupancy policy as established in Section 3 of this chapter. 

If a household, upon recertification, is not in compliance with any of the above 

criteria, then it will be defined as an ineligible tenant and will be covered by Section 6. 

B. Occupancy Priorities 

When a borrower of a labor housing project is selecting the appropriate applicant for 

a vacant unit from the waiting list, the selection will be regulated by the following 

priorities: 

 First priority must be given to eligible active farm laborer households, with first 

priority going to very low-income households, next to low-income households, and 

last to moderate-income households. 

 Second priority must be given to retired or disabled domestic farm laborer 

households who were active in the local farm labor market area at the time of 

retirement or becoming disabled, with first priority going to very low-income 

households, next to low-income households, and last to moderate-income households. 

 Third priority must be given to other retired or disabled domestic farm laborer 

households who were not active in the local farm labor market at the time of retiring 

or becoming disabled. Occupancy priority will be given first to very low-income 

households, next to low-income households, and last to moderate-income households. 

Within each of the above priorities, occupancy priority within each ranking category 

is according to the household's income: very low, low, and then moderate. 

6-52 
HB-2-3560 

Example 

Project D has a vacant two-bedroom unit. On the waiting list, there are seven applicants 

eligible for a two-bedroom unit. 

1. One applicant is a very low-income disabled farm laborer household from the 

local farm market area; 

2. One applicant is a low-income active farm labor household; 

3. One applicant is a low-income retired farm laborer household from another state; 

4. One applicant is a very low-income retired farm laborer household from the local 

farm market area; 

5. One applicant is a very low-income disabled farm laborer household from another 

county; and 

6. One applicant is a very low-income active farm labor household. 

The borrower must offer the vacant unit to these applicants in the following order. 

1. First to the very low-income active farm labor applicant; 

 2. Second to the low-income active farm labor applicant; 

3. Third to the very low-income disabled farm laborer household from the local 

farm market area; 

4. Fourth to the low-income retired farm laborer household from the local farm 

market area; and 

5. Fifth to the very low-income disabled farm laborer household from outside the 

local farm market area. 

6. Sixth to the low-income retired farm laborer household from another state. 

C. Projects with Diminished Need 

When there is a diminished need for housing by persons or families who are eligible 

to reside in labor housing, units may be made available to persons or families eligible for 

occupancy under Section 1 of this chapter. Tenants admitted under this exception may 

occupy the labor housing until such time the units are again needed by persons or 

families eligible under Paragraph 6.40 A of this section. As the basis for Agency 

approval or disapproval of the borrower’s determination of diminished need, the 

borrower must submit a current analysis of need and demand to the Agency, identical to 

the market analysis that is required of loan applicants in the loan origination process. The 

borrower’s determination and the State Director’s recommendation should be forwarded 

to the National Office for concurrence. 

(02-24-05) SPECIAL PN 6-53 

Revised (02-27-09) PN 427 
HB-2-3560 

6.41 ON-FARM LABOR HOUSING 

A. Eligible Tenants 

The income restrictions and occupancy priorities listed throughout this chapter do not 

affect the occupancy of on-farm labor housing. This housing is owned by farm 

borrowers and is for the purpose of providing decent, safe, and sanitary housing to the 

specific farmer’s employees. Occupancy of on-farm labor housing owned by farm 

borrowers is restricted to employees of the farmer or is governed by an employment 

contract with the farmer. 

B. Ineligible Tenants 

For on-farm labor housing, ineligible occupants will include: 

 The immediate relatives of the borrower(s); and 

 Anyone who is not employed in domestic farm labor. 

Ineligible tenants may occupy housing owned by farm borrowers with the permission 

of the Agency. 

6-54 
HB-2-3560 

Attachment 6-A 

Page 1 of 6

ATTACHMENT 6-A 

ANNUAL INCOME INCLUSIONS AND EXCLUSIONS 

Annual income is defined in 7 CFR 3560.153, calculating income in accordance with 24 CFR 5.609 as 

amended. Public Housing Authority denotes the certifying entity for Rural Development it is usually the 

Borrower or the Management Agent. 

(a) Annual Income Means All Amounts, Monetary or Not, Which: 

(1) Go to, or on behalf of, the family head or spouse (even if temporarily absent) or to any other 

family member; or 

(2) Are anticipated to be received from a source outside the family during the 12-month period 

following admission or annual reexamination effective date; and 

(3) Are not specifically excluded in Paragraph (c) of this attachment. 

Annual income also means amounts derived (during the 12-month period) from assets to which 

any member of the family has access. 

(b) Annual Income Includes, But Is Not Limited To: 

(1) The full amount, before any payroll deductions, of wages and salaries, overtime pay, 

commissions, fees, tips and bonuses, and other compensation for personal services. 

(2) The net income from the operation of a business or profession. Expenditures for business 

expansion or amortization of capital indebtedness shall not be used as deductions in determining 

net income. An allowance for depreciation of assets used in a business or profession may be 

deducted, based on straight line depreciation, as provided in Internal Revenue Service 

regulations. Any withdrawal of cash or assets from the operation of a business or profession will 

be included in income, except to the extent the withdrawal is reimbursement of cash or assets 

invested in the operation by the family. 

(3) Interest, dividends, and other net income of any kind from real or personal property. 

Expenditures for amortization of capital indebtedness shall not be used as deductions in 

determining net income. An allowance for depreciation is permitted only as authorized in 

Paragraph (b)(2) of this attachment. Any withdrawal of cash or assets from an investment will 

be included in income, except to the extent the withdrawal is reimbursement of cash or assets 

invested by the family. Where the family has net family assets in excess of $5,000, annual 

income shall include the greater of the actual income derived from all net family assets or a 

percentage of the value of such assets based on the current passbook savings rate, as determined 

by HUD. 

(02-24-05) SPECIAL PN 

Revised (02-07-13) SPECIAL PN
HB-2-3560 

Attachment 6-A 

Page 2 of 6 

(4) The full amount of periodic amounts received from Social Security, annuities, insurance 

policies, retirement funds, pensions, disability or death benefits, and other similar types of 

periodic receipts, including a lump sum amount or prospective monthly amounts for the delayed 

start of a periodic amount (except as provided in Paragraph (c)(14) of this attachment). 

(5) Payments in lieu of earnings, such as unemployment and disability compensation, worker’s 

compensation and severance pay (except as provided in Paragraph (c)(3) of this attachment). 

(6) Welfare assistance payments. 

(i) Welfare assistance received by the family. 

(ii) If the welfare assistance payment includes an amount specifically designated for shelter and 

utilities that is subject to adjustment by the welfare assistance agency in accordance with the 

actual cost of shelter and utilities, the amount of welfare assistance income to be included as 

income shall consist of: 

(A) The amount of the allowance or grant exclusive of the amount specifically designated 

for shelter or utilities; plus 

(B) The maximum amount that the welfare assistance agency could in fact allow the 

family for shelter and utilities. If the family’s welfare assistance is ratably reduced from 

the standard of need by applying a percentage, the amount calculated under this 

paragraph shall be the amount resulting from one application of the percentage. 

(7) Periodic and determinable allowances, such as alimony and child support payments, and 

regular contributions or gifts received from organizations or from persons not residing in the 

dwelling. 

(8) All regular pay, special pay and allowances of a member of the Armed Forces (except as 

provided in Paragraph (c)(7) of this attachment). 

(c) Annual Income Does Not Include The Following: 

(1) Income from employment of children (including foster children) under the age of 18 years; 

(2) Payments received for the care of foster children or foster adults (usually persons with 

disabilities, unrelated to the tenant family, who are unable to live alone); 

(3) Lump-sum additions to family assets, such as inheritances, insurance payments (including 

payments under health and accident insurance and worker’s compensation), capital gains and 

settlement for personal or property losses (except as provided in Paragraph (b)(5) of this 

attachment). 
HB-2-3560 

Attachment 6-A 

Page 3 of 6 

(4) Amounts received by the family that are specifically for, or in reimbursement of, the cost of 

medical expenses for any family member; 

(5) Income of a live-in aide, as defined in 24 CFR 5.403; 

(6) Subject to Paragraph (c)(16)(viii) of this attachment which applies only to Section 515 with 

project based Section 8 programs, the full amount of student financial assistance paid directly to 

the student or to the educational institution; 

(7) The special pay to a family member serving in the Armed Forces who is exposed to hostile 

fire; 

(8) Amounts received for training programs and stipends. 

(i) Amounts received under training programs funded by HUD; 

(ii) Amounts received by a person with a disability that are disregarded for a limited time for 

purposes of Supplemental Security Income eligibility and benefits because they are set aside for 

use under a Plan to Attain Self-Sufficiency (PASS); 

(iii) Amounts received by a participant in other publicly assisted programs which are specifically 

for or in reimbursement of out-of-pocket expenses incurred (special equipment, clothing, 

transportation, child care, etc.) and which are made solely to allow participation in a specific 

program; 

(iv) Amounts received under a resident service stipend. A resident service stipend is a modest 

amount (not to exceed $200 per month) received by a resident for performing a service for the 

PHA or owner, on a part-time basis, that enhances the quality of life in the development. Such 

services may include, but are not limited to, fire patrol, hall monitoring, lawn maintenance, 

resident initiatives coordination. No resident may receive more than one such stipend during the 

same period of time; 

(v) Incremental earnings and benefits resulting to any family member from participation in 

qualifying State or local employment training programs (including training programs not 

affiliated with a local government) and training of a family member as resident management 

staff. Amounts excluded by this provision must be received under employment training programs 

with clearly defined goals and objectives, and are excluded only for the period during which the 

family member participates in the employment training program; 

(02-24-05) SPECIAL PN 

Revised (02-07-13) SPECIAL PN 
HB-2-3560 

Attachment 6-A 

Page 4 of 6 

(9) Temporary, nonrecurring or sporadic income (including gifts); 

(10) Reparation payments paid by a foreign government pursuant to claims filed under the laws 

of that government by persons who were persecuted during the Nazi era; 

(11) Earnings in excess of $480 for each full-time student 18 years old or older (excluding the 

head of household and spouse); 

(12) Adoption assistance payments in excess of $480 per adopted child; 

(13) Deferred periodic amounts from supplemental security income and social security benefits 

that are received in a lump sum amount or in prospective monthly amounts; 

(14) Amounts received by the family in the form of refunds or rebates under State or local law 

for property taxes paid on the dwelling unit; 

(15) Amounts paid by a State agency to a family with a member who has a developmental 

disability and is living at home to offset the cost of services and equipment needed to keep the 

developmentally disabled family member at home; or 

(16) Amounts specifically excluded by any other Federal statute from consideration as income 

for purposes of determining eligibility or benefits under a category of assistance programs that 

includes assistance under any program to which the exclusions set forth in 24 CFR 5.609(c) 

apply. The following is a list of income sources that qualify for exclusion: 

(i) The value of the allotment provided to an eligible household under the Food Stamp Act 

of 1977 (7 U.S.C. 2017(b)); 

(ii) Payments to Volunteers under the Domestic Volunteer Services Act of 1973 (42 U.S.C. 

5044(f)(1), 5058); 

(iii) Payments received under the Alaska Native Claims Settlement Act (43U.S.C. 1626(c)); 

(iv) Income derived from certain sub-marginal land of the United States that is held in trust 

for certain Indian tribes (25 U.S.C. 459e); 

(v) Payments or allowances made under the Department of Health and Human Services’ 

 Low-Income Home Energy Assistance Program (42 U.S.C. 8624(f)); 

(vi) Income derived from the disposition of funds to the Grand River Band of Ottawa Indians 

 (Pub. L. 94–540, 90 Stat. 2503–04); 

(vii) The first $2000 of per capita shares received from judgment funds awarded by the Indian 

 Claims Commission or the U.S. Claims Court, the interests of individual Indians in trust 

 or restricted lands, including the first $2000 per year of income received by individual 

 Indians from funds derived from interests held in such trust or restricted lands (25 U.S.C. 

 1407–8); 

______________________________________________________________________________ 
HB-2-3560 

 Attachment 6-A 

 Page 5 of 6 

(viii) Amounts of scholarships funded under Title IV of the Higher Education Act of 1965, 

 including awards under Federal work-study programs or under the Bureau of Indian 

 Affairs student assistance programs (20 U.S.C. 1087uu). The exception found in 

 § 237 of Public Law 109–249 applies and requires that the amount of financial 

 assistance in excess of tuition shall be considered income in accordance with the 

 provisions codified at 24 CFR 5.609(b)(9), except for those persons with disabilities as 

 defined by 42 U.S.C. 1437a(b)(3)(E) (Pub. L. 109– 247). This applies to Section 

 515 with project based Section 8 only; 

(ix) Payments received from programs funded under Title V of the Older Americans Act of 

 1965 (42 U.S.C. 3056g); 

(x) Payments received on or after January 1, 1989, from the Agent Orange Settlement Fund 

 or any other fund established pursuant to the settlement in the In Re Agent Orange 

 liability litigation, M.D.L. No. 381 (E.D.N.Y.) (Pub. L. 101–201 and 101–39); 

(xi) Payments received under the Maine Indian Claims Settlement Act of 1980 (Public Law 

 96–420, 25 U.S.C. 1721) pursuant to 25 U.S.C. 1728(c); 

(xii) The value of any child care provided or arranged (or any amount received as payment for 

 such care or reimbursement for costs incurred for such care) under the Child Care and 

 Development Block Grant Act of 1990 (42 U.S.C. 9858q); 

(xiii) Earned income tax credit (EITC) refund payments received on or after January 1, 1991 

 (26 U.S.C. 32(l)); 

(xiv) Payments by the Indian Claims Commission to the Confederated Tribes and Bands of 

 Yakima Indian Nation or the Apache Tribe of Mescalero Reservation (Pub. L. 95–433); 

(xv) Allowances, earnings and payments to AmeriCorps participants under the National and 

 Community Service Act of 1990 (42 U.S.C. 12637(d)); 

(xvi) Any amount of crime victim compensation (under the Victims of Crime Act) received 

 through crime victim assistance (or payment or reimbursement of the cost of such 

 assistance) as determined under the Victims of Crime Act because of the commission of a 

 crime against the applicant under the Victims of Crime Act (42 U.S.C. 10602); 

(xvii) Allowances, earnings and payments to individuals participating in programs under the 

 Workforce Investment Act of 1998 (29 U.S.C. 2931); 

(xviii) Any amount received under the School Lunch Act and the Child Nutrition Act of 1966 

 (42 U.S.C. 1780(b)), including reduced-price lunches and food under the Special 

 Supplemental Food Program for Women, Infants, and Children (WIC); 

(xix) Payments, funds or distributions authorized, established, or directed by the Seneca Nation 

Settlement Act of 1990 (25 U.S.C. 1774f(b)); 

(xx) Payments from any deferred Department of Veteran’s Affairs disability benefits that are 

received in a lump sum amount or in prospective monthly amounts as provided by an 

amendment to the definition of annual income in the U.S. Housing Act of 1937 (42 

U.S.C. 1437) by Section 2608 of the Housing and Economic Recovery Act of 2008 (Pub. 

L. 110–289, 42 U.S.C. 4501). This exclusion applies to Section 515 with project based 

Section 8 programs only; 

(02-24-05) SPECIAL PN 

Revised (02-07-13) SPECIAL PN 
HB-2-3560 

Attachment 6-A 

Page 6 of 6 

(xxi) Compensation received by or on behalf of a veteran for service-connected disability, 

death, dependency, or indemnity compensation as provided by an amendment by the 

Indian Veterans Housing Opportunity Act of 2010 (Pub. L. 111–269) to the definition of 

income applicable to programs authorized under the Native American Housing 

Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101) and administered by the 

Office of Native American Programs; and 

(xxii) A lump sum or a periodic payment received by an individual Indian pursuant to the Class 

Action Settlement Agreement in the case entitled Elouise Cobell et al. v. Ken Salazar et 

al., United States District Court, District of Columbia, as provided in the Claims 

Resolution Act of 2010 (Pub. L. 111–291). 

(d) Annualization Of Income. If it is not feasible to anticipate a level of income over a 12-month 

period (e.g., seasonal or cyclic income), or the PHA believes that past income is the best 

available indicator of expected future income, the PHA may annualize the income anticipated for 

a shorter period, subject to a redetermination at the end of the shorter period.
 ATTACHMENT 6-B 

 ZERO INCOME VERIFICATION CHECKLIST 

(A) 

EXPENSE 

(B) 

RECURRING 

EXPENSE? 

(C) 

PAYMENT 

SOURCE 

(D) 

EXEMPT 

{If no, Col. E} 

(E) 

AMOUNT 

FOOD Yes No 

 Food Stamps 

 WIC 

 Food Bank

 Cash 

Contributions 

Yes No 

 In Kind 

Donations 

Yes No 

 Other Yes No 

SHELTER COSTS 

Housing Yes No 

 Cash 

Contributions 

Yes No 

 Other Yes No 

Electricity Yes No 

 Cash 

Contributions 

Yes No 

 Other Yes No 

Gas Yes No 

 Cash 

Contributions 

Yes No 

 Other Yes No 

Water Yes No 

 Cash 

Contributions 

Yes No 

 Other Yes No 

CLEANING/GROOMING Yes No In kind 

Donation

Yes No 

 Cash 

Contribution 

Yes No 

 Other Yes No 

TRANSPORTATION Yes No 

 In kind 

Donation

Yes No 

 Cash 

Contribution

Yes No 

 Other Yes No 

Automobile Payment Yes No 

HB-2-3560 

Attachment 6-B 

Page 1 of 4 

(02-24-05) SPECIAL PN 
(A) 

EXPENSE 

(B) 

RECURRING 

EXPENSE? 

(C) 

PAYMENT 

SOURCE 

(D) 

EXEMPT 

{If no, Col. E} 

(E) 

AMOUNT 

 In kind 

Donation

Yes No 

 Cash 

Contribution

Yes No 

 Other Yes No 

Automobile Insurance Yes No 

 Cash 

Contribution

Yes No 

 Other Yes No 

Gas Yes No 

 Cash 

Contribution

Yes No 

 Other Yes No 

Automobile Maintenance Yes No 

 Cash 

Contribution

Yes No 

 Other Yes No 

ENTERTAINMENT Yes No 

Cable/Satellite Cash 

Contribution

Yes No 

 Other Yes No 

Video Rentals Yes No 

 Cash 

Contribution

Yes No 

 Other Yes No 

Sporting Events Yes No 

 Cash 

Contribution

Yes No 

 Other Yes No 

Other Entertainment Yes No 

 Cash 

Contribution

Yes No 

 Other Yes No 

CLOTHING EXPENSES 

Clothes/Shoes Yes No Cash 

Contributions 

Yes No 

 In Kind 

Donations 

 Other Yes No 

Laundry Yes No 

 Cash 

Contributions 

Yes No 

HB-2-3560 

Attachment 6-B 

Page 2 of 4 
(A) 

EXPENSE 

(B) 

RECURRING 

EXPENSE? 

(C) 

PAYMENT 

SOURCE 

(D) 

EXEMPT 

{If no, Col. E} 

(E) 

AMOUNT 

 In Kind 

Donations 

Yes No 

 Other Yes No 

COMMUNICATIONS 

Telephone Yes No 

 Cash 

Contributions 

Yes No 

 In Kind 

Donations 

Yes No 

 Other Yes No 

Cellular Telephone Yes No 

 Cash 

Contributions 

Yes No 

 In Kind 

Donations 

Yes No 

 Other Yes No 

Pager/Beeper Yes No 

 Cash 

Contributions 

Yes No 

 In Kind 

Donations 

Yes No 

 Other Yes No 

Internet Yes No 

 Cash 

Contributions 

Yes No 

 In Kind 

Donations 

Yes No 

 Other Yes No 

MEDICAL EXPENSES 

 Cash 

Contributions 

 Other

MISCELLANEOUS EXPENSES 

Non-reimbursable Education Yes No Yes No 

 

Non-reimbursable Childcare Yes No Yes No 

 

Non-reimbursable Job Expenses Yes No Yes No 

 

HB-2-3560 

Attachment 6-B 

Page 3 of 4 

(02-24-05) SPECIAL PN 
Part II 

(A) 

BENEFIT SOURCE 

(B) 

ELIGIBLE 

{If yes, Col. C} 

(C) 

APPLIED 

{If yes, Col. D} 

(D) 

STATUS 

 

SOCIAL SECURITY Yes No Yes No 

 

UNEMPLOYMENT Yes No Yes No 

 

HEALTH AND WELFARE Yes No Yes No 

 

VETERANS 

ADMINISTRATION 

Yes No Yes No 

 

OTHER Yes No Yes No 

Attach receipts, applications and other documentation to the completed checklist and retain in 

application or tenant file. 

HB-2-3560 

Attachment 6-B 

Page 4 of 4 
ATTACHMENT 6-C 

Allowable Deductions 

Allowable deductions or allowances are: 

 $480 for each member of the family residing in the household (other than the tenant, cotenant, member, or co-member or spouse of either, or foster children) who is under 18 

years of age, or who is 18 years of age or older and is disabled, handicapped or a fulltime student. The student must carry a subject load considered full-time by the 

educational institution attended. This deduction does not apply to an unborn child in the 

household. 

 $400 for any elderly family. 

 In the case of an elderly family, the total of actual medical and/or handicap assistance 

expenses paid in excess of 3 percent of annual income must first be deducted from 

handicap assistance any remainder then deducted from medical expenses. 

 Total medical expense includes medical expenses not covered by insurance that the 

tenant or member anticipates incurring over the 12 months following the effective date of 

the certification, using past experience as a guide. 

Examples of medical expenses are dental expenses, prescription and nonprescription medicines, medical insurance premiums including Medicare, 

eyeglasses, hearing aids and batteries, medical related travel cost, the cost of 

attendant care including a live-in-resident assistant, monthly payments required 

on accumulated major medical bills including that portion of a household 

member's nursing home care paid from household income(s). 

Note: Premiums paid for nursing home insurance are not an allowable deduction unless a 

household member is housed at a nursing home and that person’s income is included in 

the household income.) 

 Handicap assistance includes reasonable attendant care and auxiliary apparatus expense 

described as follows for each member with handicaps of the family to the extent needed 

to enable any family member (including such member with handicaps) to be employed. 

That portion of attendant care attributable to specialized medical reasons (the portion 

attributable to companionship is not counted). 

 Auxiliary apparatus including but not limited to wheelchairs, oxygen equipment, 

reading devices for the visually impaired, and the cost of equipment added to cars 

and vans to permit their use by the handicapped or disabled family member 

proportionate to the amount of use by such persons. 

 In the case of any non-elderly family, total handicap assistance expense in excess of 3 

percent of annual family income may be deducted: 

 For any handicap assistance expense above that is anticipated to occur over the 12 

months following the effective date of the certification, using past experience as a 

HB-2-3560 

Attachment 6-C 

Page 1 of 2 

(02-24-05) SPECIAL PN 
guide, to the extent needed to enable any family member (including the handicapped 

or disabled family member) to be employed. 

 The amount of deduction may not exceed the LESSER of the amount by which total 

expenses for handicap assistance exceed 3 percent of annual family income, or the 

amount of income received by adult members from such employment. 

 The amounts paid by the family for the care of minors under 13 years of age may be 

deducted only to the extent such expenses are not reimbursed. In the case of families 

assisted by American Indian housing authorities, the amount will be the greater of child 

care expenses; or excessive travel expenses, the to exceed $25 per family per week. 

Deductions for these expenses are permitted only when such care is necessary to enable a 

family member to further his or her education or to be gainfully employed, including the 

gainful employment of the disabled or handicapped family member. When the deduction 

is to enable gainful employment the amount may not exceed the amount of income 

received from such employment. When the deduction is to facilitate further education, 

the amount must not exceed a sum reasonably expected to cover class time and travel 

time to and from classes. The tenant file must contain justifying documentation. (Child 

support payments made on behalf of a minor child who does not reside in the unit may 

not be deducted as a child care expense). 

HB-2-3560 

Attachment 6-C 

Page 2 of 2 
ATTACHMENT 6-D 

FAMILY ASSETS 

 Net family assets include cash on hand and the value of savings, certificates of deposit, and 

dollars in checking accounts reported as “cash on hand.” It will be such amounts reported on the 

day of third party verification. This definition also includes: 

 The net cash value of real property. 

 The cash value of whole life insurance policies. 

 Individual Retirement Accounts (IRAs). 

 Market value of bonds or other forms of capital. 

 Personal property held as investments, irrespective of location, minus debts against them, 

minus cost of converting such assets to cash. Examples of conversion costs are penalties for 

early withdrawal, broker/legal fees assessed to sell an asset, and real estate settlement costs 

for transactions. 

 Net family assets also include the value of equity of any business or household assets disposed of 

by a member of the household for less than fair market value (including disposition in trust, but 

not in a foreclosure or bankruptcy sale) in excess of the consideration received therefrom during 

the 2 years preceding the effective date of certification/re-certification. In the case of a 

disposition as part of a divorce settlement, the disposition shall not be considered to be for less 

than fair market value if the household member received important consideration not measurable 

in dollar terms. 

 Income from net family assets which is included in annual income is determined as follows: 

 If net family assets equal $5,000 or less, annual income includes the actual income derived 

from the net family assets. 

 If net family assets exceed $5,000, annual income includes the greater of: 

 Actual income derived from all net family assets, or 

 A percentage of the cash value of such assets based on the bank passbook annual savings rate. 

 Net family assets exclude: 

 Interests in Indian trust land. 

 The value of necessary items of personal property such as furniture and automobiles(s), and the debts 

against them. 

 The assets that are part of the business, trade, or farming operation in the case of any member of the 

household who is actively engaged in such operation. 

HB-2-3560 

Attachment 6-D 

Page 1 of 2 

(02-24-05) SPECIAL PN 
 The value of a trust fund (i.e., for a minor or legally incompetent household member) that has been 

established and the trust is not revocable by, or under the control of, any member of the household, so 

long as the fund continues to be held in trust. 

 A vehicle specially equipped for the handicapped. 

 Face value of life insurance policies. 

 A cooperative member’s patronage capital in the housing cooperative unit in which the family 

resides. 

 Prepaid funerary arrangements and expenses. 

 Retirement funds not accessible for withdrawal by a household member. 

 Assets legally owned but not accessible or that accrue income to someone else. 

 Savings accounts of dependent minors when such accounts are under the minor’s social security 

number. 

HB-2-3560 

Attachment 6-D 

Page 2 of 2 

6-69 

(02-24-05) SPECIAL PN 
ATTACHMENT 6-E 

LEASE REQUIREMENTS 

A. Lease Structure

 All leases must be in writing. 

 Initial leases must cover a one-year period. 

 If the tenant is not subject to occupancy termination according to 7 CFR 3560.158 

and 7 CFR 3560.159, a renewal lease or lease extension addendum must cover a oneyear period. 

 In areas with a concentration of non-English speaking tenants, leases must be 

available to tenants in both English and the appropriate additional language. 

 Leases must give address (es) to which to direct complaints. 

 Leases must include statement terms and conditions for modifying the lease. 

B. Required Lease Clauses

Leases for all multi-family housing must include a number of specific clauses as listed 

below: 

 The requirement to move or pay an increased rent if household income increases 

above moderate income. (This clause does not apply to leases for persons who are 

elderly, disabled, or handicapped and living in a full-profit plan development.) 

 The requirement that tenants move out of the project within 30 days of being notified 

by the borrower that they are no longer eligible for occupancy unless the conditions 

cited in 7 CFR 3560.158(c) exist. 

 The requirement that tenants notify borrowers regarding changes in income, 

citizenship, or number of persons living in the unit. 

 The requirement for tenants to notify borrowers in a situation of extended tenant 

absences. 

 The requirements for making restitution when a household receives benefits to which 

it is not entitled and a statement advising tenants that the submission of false 

information could result in the initiation of legal action by the Agency. 

 The requirement that tenants agree to income certification. 

 The requirement that the household’s tenancy is subject to compliance with the terms 

of all applicable assistance programs covering the unit and/or project. 

 The requirement that during acceleration and foreclosure proceedings: 

 The tenant contribution must remain as if interest credit and/or rental subsidy 

were still in place and available had acceleration not occurred; and 

 The terms of the lease will remain in effect until the date acceleration and/or 

foreclosure is resolved. 

HB-2-3560 

Attachment 6-E 

Page 1 of 5 

(02-24-05) SPECIAL PN 

Revised (09-30-22) PN 569 
Leases for tenants who have a Handbook Letter 201, Letter of Priority Entitlement (LOPE)

and are temporarily occupying a unit for which they are not eligible must include a clause 

establishing the tenant’s responsibility to move when a suitable unit becomes available. 

Leases must contain an escalation clause permitting changes in basic/note rate rents before 

the lease expires. Changes must be approved by the Agency. 

Leases must specify no escalation in tenant contribution due to loan prepayment or when 

rental assistance or interest credit is terminated due to the fault of management or the owner, or due 

to liquidation and acceleration of the note. 

Leases must include statement that tenant's payment will not change if Federal subsidies paid 

to borrower on behalf of tenants are suspended or canceled, for the term of the lease. 

Leases must include statement that the project is financed by the Agency and that the Agency 

has the right to further verify information provided by the applicant. 

Leases must say that project is subject to: 

 Title VI of the Civil Rights Act of 1964 

 Title VIII of the Fair Housing Act 

 Section 504 of the Rehabilitation Act of 1973 

 The Age Discrimination Act of 1975 

 The Americans with Disabilities Act 

 The Violence Against Women Reauthorization Act of 2013 

Leases must specify requirements (and exceptions) to move to the next available 

appropriately sized unit, if the unit becomes overcrowded, underused, or should the tenant no longer 

meet eligibility requirements. 

Leases must include a provision that establishes when a guest will be considered a member of 

the household and be required to be added to the tenant certification. 

Leases must include a provision that tenancy remains in place as long as the tenant’s 

possessions remain in the apartment, even after tenant has left. This is the case until possessions are 

removed voluntarily or by legal means, subject to state and local law. 

Leases for rental assistance units must include specific clauses. These clauses must be signed 

by the lessor and lessee, and specify: 

 The tenant’s gross monthly contribution, and under what circumstances it may change; 

and that 

 The tenant contribution will not increase if rental assistance is terminated due to actions 

by borrowers. 

For tenants living in Plan II interest credit units, leases must include a provision on gross 

monthly contribution. 

All leases, including renewals, must include the following language: 

“It is understood that the use, or possession, manufacture, sale, or distribution of an 

illegal controlled substance (as defined by local, state, or Federal law) while in or on any part 

of this apartment complex or cooperative is an illegal act. It is further understood that such 

HB-2-3560 

Attachment 6-E 

Page 2 of 5 
action is a material lease violation. Such violations (hereinafter called ‘drug 

violation[s]’) may be evidenced upon the admission to or conviction of a drug violation. 

It is further understood that domestic violence will not be tolerated on Rural Housing 

properties, and that such action is a material lease violation. All perpetrators will be 

evicted, while the victim and other household occupants may remain in the unit in 

accordance with eligibility requirements. 

The landlord may require any lessee or other adult member of the tenant 

household occupying the unit (or other adult or non-adult person outside the tenant 

household who is using the unit) who commits a drug violation or domestic violence to 

vacate the leased unit permanently, within time frames set by the landlord, and not 

thereafter enter upon the landlord’s premises or the lessee’s unit without the landlord’s 

prior consent as a condition for continued occupancy by members of the tenant 

household. The landlord may deny consent for entry unless the person agrees not to 

commit a drug violation or domestic violence in the future and is either actively 

participating in a counseling or recovery program, complying with court orders related to 

a drug violation or domestic violence, or has completed a counseling or recovery 

program. 

The landlord may require any lessee to show evidence that any non-adult member 

of the tenant household occupying the unit, who committed a drug violation or domestic 

violence, agrees to not commit a drug violation or domestic violence in the future, and to 

show evidence that the person is either actively seeking or receiving assistance through a 

counseling or recovery program, complying with court orders related to a drug violation 

or domestic violence, completed a counseling or recovery program within time frames 

specified by the landlord as a condition for continued occupancy in the unit. Should a 

further drug violation or domestic violence be committed by any non-adult person 

occupying the unit, the landlord may require the person to be severed from tenancy as a 

condition for continued occupancy by the lessee. 

If a person vacating the unit, as a result of the above policies, is one of the lessees, 

the person shall be severed from the tenancy and the lease shall continue among any 

other remaining lessees and the landlord. The landlord may also, at the option of the 

landlord, permit another adult member of the household to be a lessee. 

Should any of the above provisions governing a drug violation be found to violate 

any of the laws of the land, the remaining enforceable provisions shall remain in effect. 

The provisions set out above do not supplant any rights of tenants afforded by law.” 

For handicapped-accessible units occupied by those not needing its special 

features, a lease must discuss situations where management has made a temporary unit 

assignment, and specify who bears the cost of moving the tenant to another unit. 

Additionally, the lease clause must require the management to provide the tenant written 

notification when they must move within 30 days of notification from management that 

an eligible applicant with disabilities requires the unit. 

The household in the unit with accessibility features will be required to move within 

30 days of the housing project’s receipt of a tenant application requiring accessibility 

features if another suitably sized unit without accessibility features is available in the 

project. If a suitably sized unit is not available in the project within 30 days, the tenant 

HB-2-3560 

Attachment 6-E 

Page 3 of 5 

(02-24-05) SPECIAL PN 
may remain in the unit with accessibility features until the first available unit in the 

project becomes available and then must move within 30 days. 

Prepayment is subject to restrictive-use covenants. If prepayment occurs, leases and 

renewals must be amended to include a clause specifying tenant protections. 

C. Required Information

All leases must contain the following information and provisions: 

 The name of the tenant, any co-tenants, and all members of the household residing in 

the unit. 

 The identification of the unit. 

 The amount and due date of monthly tenant contributions and late payment penalties. 

 The utilities, services, and equipment to be provided for tenants. 

 The tenant’s utility payment responsibility. 

 The certification process for determining tenant occupancy eligibility and 

contribution. 

 The limitations of the tenant’s right to use or occupancy of the dwelling. 

 The tenant’s responsibilities regarding maintenance and obligations if tenant fails to 

fulfill these responsibilities. 

 The agreement of management to accept tenant payment regardless of other charges 

that the tenant owes, and management’s agreement to seek legal remedy for 

collecting other charges accrued by the tenant. 

 The maintenance responsibilities of management in buildings and common areas, 

according to state and local codes, Agency rules, and fair housing requirements. 

 The responsibility of management at move-in and move-out to provide tenants with a 

written statement of the unit’s condition, and provisions for tenant participation in 

inspection. 

 The provision for periodic inspections by the borrower or management, and other 

circumstances under which management may enter the premises while a tenant is 

renting. 

 The tenant’s responsibility to notify management of an extended absence, as defined 

in the lease. 

 The agreement that tenants may not sublet the property without management or 

Agency consent. 

 The provision regarding transfer of the lease if the project is sold to an Agencyapproved buyer. 

 The procedures that must be followed by management and the tenant in giving notice 

required under terms of the lease. 

HB-2-3560 

Attachment 6-E 

Page 4 of 5 
 The good-cause circumstances under which management may terminate the lease and 

length of notice required. 

 The disposition of the lease if the housing becomes uninhabitable due to fire or other 

disaster, including the borrower’s rights to repair the building or terminate the lease. 

 The procedures for resolution of tenant grievances consistent with the requirements of 

7 CFR 3560.160. 

 The terms under which a tenant may, for good cause, terminate a lease with 30 days’ 

notice prior to lease expiration. 

 The signature clause indicating that the lease has been executed by the borrower and 

the tenant. 

 A description of the rights and protections afforded to victims of domestic violence, 

dating violence, sexual assault, or stalking and the required provisions. (See 

Attachment 6-K Section I, paragraph 5) 

D. Projects and Units Receiving HUD Assistance

In multi-family projects receiving project-based assistance under Section 8 of the 

Housing Act of 1937, borrowers may use the HUD model lease. The provisions of the 

HUD model lease will prevail, unless they conflict with Agency lease requirements in 

accordance with this section. If there is conflict between HUD requirements and Agency 

requirements, the provision that will be enforced will be the one that is most favorable to 

the tenant. 

A clause must be inserted into the lease requiring that tenants ineligible at 

recertification must leave the property unless allowed to stay under their HUD lease. 

For HUD Section 8 certificate and voucher holders, borrowers may use: 

 A standard HUD-approved lease; 

 A HUD-approved lease that includes a number of modifications; or 

 An Agency-approved lease if acceptable to HUD or the local housing authority. 

E. State and Local Requirements 

Borrowers must use a lease that is consistent with state and local requirements. 

 If any lease provision is in violation of state or local law, the lease may be modified 

to the extent needed to comply with the law, but any changes must be consistent, to 

the greatest extent possible, with the required provisions established in 7 CFR 

3560.156(c). 

 Leases must include procedure for handling tenant’s abandoned property, as provided 

by state law. 

HB-2-3560 

Attachment 6-E 

Page 5 of 5 

(02-24-05) SPECIAL PN 

Revised (09-30-22) PN 569 
This page intentionally left blank 

HB-2-3560 
ATTACHMENT 6-F 

PROHIBITED LEASE CLAUSES 

Borrowers are prohibited from including any of the following clauses in the lease: 

 Clauses prohibiting families with children under 18. 

 Clauses prohibiting occupancy by a handicapped person willing and able to modify 

the unit at their own expense. 

 Clauses requiring prior consent by tenant to any lawsuit that borrowers may bring 

against the tenant in connection with the lease. 

 Clauses authorizing borrowers to hold any of a tenant’s property until the tenant 

fulfills an obligation. 

 Clauses in which tenants agree not to hold borrowers liable for anything they may do 

or fail to do. 

 Clauses in which tenants agree that borrowers may bring suit against the tenant 

without notice. 

 Clauses in which tenants agree that borrowers may evict the tenant or sell their 

possessions whenever they determine that a breach or default has occurred. 

 Clauses authorizing the borrower’s attorney to appear in court on behalf of the tenant, 

and to waive their right to a trial by jury. 

 Clauses authorizing the borrower’s attorney to waive the tenant’s right to appeal or to 

file suit. 

 Clauses requiring the tenant to agree to pay legal fees and court costs whenever the 

borrower takes action against the tenant, even though court may find in favor of the 

tenant. 

HB-2-3560 

Attachment 6-F 

Page 1 of 1 

(02-24-05) SPECIAL PN 
This page intentionally left blank 

HB-2-3560 
ATTACHMENT 6-G 

ACQUIRING AUTOMATION SUPPORT FOR MINC OR OTHER 

AUTOMATION NEEDS 

The Agency will approve the use of project funds to acquire automated support to 

participate in MINC. While operating costs will be reduced in the long term, there may be some 

short-term increases to accommodate the initial acquisition of automated support. 

Guidelines for obtaining automated support for MINC are as follows: 

 With prior Agency approval, borrowers may use project operating or reserve funds to 

purchase or lease hardware or software needed to participate in MINC. 

 Once borrowers have acquired automation capabilities, they may allow their 

management agent to use them to participate in MINC. This cost may be prorated 

over several projects owned by different borrower entities with a common 

management agent. 

 When the cost of acquiring management software or hardware is not cost effective for 

a project (or multiple projects with common management), the Agency may allow the 

cost of contracting with a service bureau to provide automation support as a project 

operating expense. 

 To request Agency approval, borrowers must submit a brief proposal that documents 

the anticipated costs and benefits of adopting the automation strategy being proposed. 

1. Acquiring Additional Automation Capabilities 

It is important to note that the approval for the use of project funds discussed above 

extends only to the portion of the computer software and hardware needed to participate in 

MINC. If additional software or hardware capacity is desired by the borrower, the following 

applies: 

MFH borrowers are encouraged to use automated systems to manage MFH 

projects and to prepare and process paperwork associated with project 

management. Where economically feasible, computer applications can improve 

management efficiency and reduce errors and omissions. However, the purchase 

of computer hardware and software out of project funds should be carefully 

analyzed. 

If a borrower entity’s purchase of computer hardware or software to be used 

solely at a project can be expected to show a reduction in project operating and 

maintenance expenses, the purchase cost may be approved by the Agency as a 

line item project expense. The expense may be approved at project inception out 

of the project’s two percent initial operating account or subsequent to project 

start-up out of annual operating revenues. The cost may be prorated over several 

projects owned by the same borrower entity. Any computer hardware or software 

purchased with project funds must remain with the project if there is any 

subsequent change in management or ownership of the project. 

HB-2-3560 

Attachment 6-G 

Page 1 of 4 

(02-24-05) SPECIAL PN 
The purchase or use of computer hardware or software by a management 

company, versus a borrower entity with or without an identity of interest with a 

borrower, may not be considered an allowable line item expense on an Agency 

approved project budget. 

2. Choosing to Use a Service Bureau 

If acquiring automation is not a sound decision, borrowers may consider using a service 

bureau to provide automation services at a fee. The fee can be a project expense and should be 

reasonable. The Agency must approve a borrower’s determination that it is in the best interest of 

the project to contract with a service bureau. 

The cost of a service bureau is essentially an “add-on expense” to an operating budget, 

since the function is not currently performed by any project. Borrowers who find that their 

project budget will not support the cost of acquiring automation support or a service bureau fee 

should contact their servicing office to be exempted from mandatory participation in MINC. 

The Agency will not allow an add-on fee for the cost of a service bureau if the borrower’s 

analysis demonstrates that it is less expensive to acquire an automation capacity, unless 

extenuating circumstances exist. 

The Agency will not approve the use of an add-on service bureau fee as a project 

expenses for a contract with a firm that has an Identify-of-Interest (IOI) with the project 

borrower or management agent, without detailed documentation indicating that the IOI service 

bureau is clearly more cost effective than a non-IOI service bureau. While this policy does not 

restrict the formation of IOI firms to process tenant certifications, service bureau companies or 

the payment for their services from a management fee, it is intended to address concerns 

expressed by the Office of the Inspector General (OIG) that IOI firms may unnecessarily inflate 

project operating expenses. 

The following individuals and companies have expressed an interest in developing or 

marketing software to provide an industry interface with Rural Development’s housing programs 

Multiple Family Housing tenant files, or providing automated support through a service bureau 

to transmit tenant certifications to the Agency. Rural Development expresses no preference or 

opinion on the products or services of any of the individuals and companies listed below. 

HB-2-3560 

Attachment 6-G 

Page 2 of 4 
LISTING OF PRIVATE SOFTWARE DEVELOPERS AND VENDERS WHO HAVE 

INDICATED AN INTEREST IN THE MANAGEMENT AGENT INTERACTIVE 

NETWORK CONNECTION (MINC) VOLUNTARY FIELD TEST 

(Updated as of March 2004) 

(Service Bureau) 

Accounting & Management 

Brenda Simpson 

P.O. Box 5058 

Topeka, KS 66605 

785-862-2068 

785-862-1441 – fax 

brenda@bls_accounting.biz

(Service Bureau & Consulting) 

C&L Consulting 

Charles J. Kraebal, COS 

Laura D. Palmer, AHM 

4253 Cactus Circle 

Liverpool, NY 13090 

315-652-7100 

315-652-7106 –fax 

cl@twcny.rr.com

(Service Bureau) 

Costello Property Management 

Corina Bittner 

P.O. Box 2238 

Sioux Falls, SD 57101 

605-336-9131 

605-336-0527 – fax 

cbittner@costelloco.com

www.costelloco.com

(Service Bureau) 

EPS, Inc. 

Fred Hutchins 

18 Blair Park, Suite 208 

Williston, VT 05495 

802-872-0818 

802-872-0820 – fax 

FHUTCH056@aol.com

(Service Bureau) 

KUSTOM BOOKKEEPING 

Ardith Scammehorn 

1007 North Elm 

P.O. Box 217 

Healy, KS 67850 

620-398-2500 

620-398-2501 – fax 

scamm@st-tel.net

(Service Bureau) 

RDC Data Processing Center 

Oleva Riney 

P.O. Box 238 

326 E. Jefferson 

Memphis, MO 63555 

660-465-7281 – voice 

660-465-7163 – fax 

660-465-2442 – tdd

Ausmus and Associates, Inc. 

Sam Ausmus III 

3335 Federal Road 

Pasadena, TX 77504-1737 

800-944-5572, ext. 201 

713-944-2554 – fax 

sausmus.iii@ipm-software.net

Bostonpost Technology, Inc. 

Janet Wittenberg 

Dean Nicholdaides 

436B S. River Rd. 

Bedford, NH 03110 

603-669-8553 ext. 223 

603-663-0085 – fax 

janet@bostonpost.com

deann@bostonpost.com

BP Software 

Bennet and Ron Barlean 

708 Nooksack Ave. 

Nooksack, WA 98276 

360-966-5705 

800-344-7611 

360-966-3125 – fax 

bpsoftware@alphahunt.com

www.bpsoftware.com

CAMS of Atlanta, Inc. 

Paul Angelich President 

3340 Peachtree Road, NE 

Suite 1800 

Atlanta, GA 30326 

800-544-7569 

404-814-5299 – fax 

Camsatl@Sprynet.com

Clancy Knaup 

1333 Wayland Street 

P.O. Box 901 

Beaver Dam, WI 53916 

cbknaup@internetwis.com

Classic Real Estate Systems 

Mitch Copman 

400 Pinnacle Way, Suite 420 

Norcross, GA 30071-3661 

770-729-0007 

770-729-0065 – fax 

mitchc@classicresystems.com

classic@classicresystems.com

www.classicresystems.com

David Stathis Consulting 

David Stathis 

315-247-1027 

Dorsettt Computer Services 

Cleve Dorsett 

806-793-9359 

806-793-7510 – fax 

admin@dorsett.net

Fresno Housing Authority 

Bob Friesen 

559-457-4130 

559-457-4149 – fax 

rfriesen@pcabell.net

Michael Powers 

559-443-8463 

559-443-8495 – fax 

mpowers@hafresno.org

HB-2-3560 

Attachment 6-G 

Page 3 of 4 

(02-24-05) SPECIAL PN 
High Tech Solutions 

Maurice King 

1509 6th Street 

Marysville, WA 98270 

360-653-1570 

360-653-1722 – fax 

maurice@hightechsolutions.com

HUD Billing 

Joe Reeves 

33616 25th Ave. Court South 

Roy, WA 98580 

800-925-2276 

253-843-0289 

angelacres@foxinternet.net

IPM Software, Inc. 

4008-C Vista Road, Suite 250 

Pasadena, TX 77504 

RHS Control 

800-944-5572 ext. 212 

info@ipm-software.net

www.ipm-software.net

IPM-Software 

Jed Graef 

P.O. Box 880 

Shelbume, VT 05482 

802-985-2029 

802-985-2668 – fax 

jgraef@worldnet.att.net

JF Gray 

Dusty Culler 

Farmington, NM 

505-325-6515, ext 27 

505-325-4305 – fax 

dusty@jlgray.com

Lindsey & Company Inc. 

Colleen Caldwell 

2302 Llama Drive 

Searcy, AR 72143 

501-268-5324 

501-268-1198 – fax 

ccaldwel@lindseysoftware.com

www.lindseysoftware.com

Millennium Software 

Valerie Gatson 

1503 Goodwin Road 

Ruston, LA 71270 

318-251-2392 

318-255-7397 – fax 

support@millennium-software.com

MultiSite Systems, LLC 

Brent Lawrence 

404 Thornwood Drive 

Jamestown, NC 27282 

336-454-0147 

336-454-5096 – fax 

brentl@multisitesystems.com

Pacific Cost Computer Services 

William Antoucci 

916-348-7051 

PMAS, IIC 

Frank Patterson 

164 Rollins Ave., 2nd Floor 

Rockville, MD 20852-4038 

301-770-2600 

301-770-6508 – fax 

sfp@pmas.com

info@pmas.com

PSL Consultants 

Steve Lang 

P.O. Box 241516 

Memphis, TN 38124-1516 

901-681-9831 

901-763-2588 – fax 

slang@pslmgmt.com

patlang@pslmgmt.com

www.pslmgmt.com

Real Page Inc. 

4000 International Parkway 

Carrollton, TX 75007-1913 

1-87REALPAGE 

972-820-3383 – fax 

972-820-3137 – Scott Nelson 

scott.nelson@realpage.com

972-820-3383 – Susan Sloan 

susan.sloan@realpage.com

972-820-3354 – Janel Ganim 

janel.ganim@realpage.com

Shreve Group 

John Veach 

1622 Taylor Ave. 

Washington, DC 

202-882-6306 

301-562-3006 

ShreveGroup@msn.com

Veachiii@aol.com

Simply Computer Software, Inc. 

Duane D. Tinsley, President 

7310 N Alpine Rd. 

Loves Park, IL 61111 

800-626-2431, ext #3 

815-231-0065 – fax 

DuSCS@aol.com

www.SimplyComputer.net

TCG Technologies LLC 

Gustavo Sapiurka 

1012 N Street, NW 

Washington, DC 20001 

800-226-999 

202-667-3002, ext 390 

202-667-3035 – fax 

sapiurka@tcgtechnologies.com

Doug Stastny - 678-213-2805 

d.stastny@cam-systems.com

Anne O’Dell – 845-692-3048 

a.odell@cam-systems.com

www.tcgtechnologies.com

Tenmast Software 

James Mauch, President 

132 Venture Court, Suite 1 

Lexington, KY 40511 

859-455-8061 

856-367-7480 – fax 

jbatts@tenmast.com

Markl@tenmast.com

Williams Mgmt & Consulting 

Bryan Porter 

P.O. Box 40 

Blue Springs, MO 64015 

816-220-0070 

816-220-9164 – fax 

bryan@tenantcert.com

Yardi Systems, Inc. 

David Kessler 

819 Reddick Avenue 

Santa Barbara, CA 93103 

805-966-3373 ext. 227 

1-800-947-2233 

805-963-3155 – fax 

dave.kessler@yardi.com

www.yardi.com

HB-2-3560 

Attachment 6-G Page 

4 of 4 
ATTACHMENT 6-H 

FEDERAL REGIONAL INCOME LIMITS 

FOR HIRED FARMWORKERS 

Region I—($7,200) Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and 

Vermont. 

Region II—($5,400) New Jersey and New York. (Includes Puerto Rico and the USVI).) 

Region III—($6,000) Delaware, District of Columbia, Maryland, Pennsylvania, Virginia, and 

West Virginia. 

Region IV—($6,150) Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South 

Carolina, and Tennessee. 

Region V—($6,300) Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin. 

Region VI—($6,900) Arkansas, Louisiana, New Mexico, Oklahoma, and Texas. 

Region VII—($7,200) Iowa, Kansas, Missouri, and Nebraska. 

Region VIII—($7,350) Colorado, Montana, North Dakota, South Dakota, Utah, and Wyoming. 

Region IX—($8,850) Arizona, California, Hawaii, and Nevada. 

Region X—($7,050) Alaska, Idaho, Oregon, and Washington. 

HB-2-3560 

Attachment 6-H 

Page 1 of 1 

(02-24-05) SPECIAL PN 
This page intentionally left blank 

HB-2-3560 
ATTACHMENT 6-I 

ELIGIBILITY, INCOME, AND DEDUCTION CHECKLIST 

Head of household and/or the co-head should complete. 

LIST ALL HOUSEHOLD MEMBERS: 

Name (Last, First, M.I.) Relationship Date of Birth Sex Social Security # 

_____________________ ___________ ___/___/___ ___ ______________ 

_____________________ ___________ ___/___/___ ___ ______________ 

_____________________ ___________ ___/___/___ ___ ______________ 

_____________________ ___________ ___/___/___ ___ ______________ 

_____________________ ___________ ___/___/___ ___ ______________ 

_____________________ ___________ ___/___/___ ___ ______________ 

_____________________ ___________ ___/___/___ ___ ______________ 

_____________________ ___________ ___/___/___ ___ ______________ 

ELIGIBILITY: YES NO 

1. I have a household member who is absent from the home due to: 

 

Employment 

Military service 

Placement in foster care 

Temporarily in nursing home or hospital 

Permanently confined to nursing home 

Away at school 

Other 

 

2. I have a live-in attendant 

 

3. Expected changes in household: 

 Baby due on ________________ 

 Adopting a child(ren) on ___________ 

 Obtaining custody of a child(ren) on ____________ 

 Obtaining joint custody of a child(ren) on _______________ 

 Receiving a foster child(ren) on _______________ 

HB-2-3560 

Attachment 6-I 

Page 1 of 4 

(02-24-05) SPECIAL PN 

Added (02-27-09) PN 427 
INCOME, ASSET, AND DEDUCTIONS 

A. Income: YES NO 

1. Are you or any other members of the household currently receiving 

income from any of the following sources? 

 

 Wages/salaries 

 Wages earned through a government program such as Senior 

Aides, Older American Community Service Employment Program, 

AmeriCorps 

 If yes, which program:_______________________________

 

 Tips, bonuses, or commissions 

Overtime pay 

Income from operation of a business 

Social Security 

Disability / SSI 

Death Benefits 

Pension / retirement funds 

Annuities or non-revocable trust 

Unemployment 

Military pay 

Workman’s Compensation 

Public assistance / TANF 

Alimony 

Child Support 

Income from rent or sale of property 

Periodic payment from lottery winnings 

Regular recurring contributions from persons or agencies outside of 

household

 

Insurance policies 

Severance pay 

Other 

 

2. Are there any adult members of the household (18 years of age or 

older) receiving income not listed above? 

If yes, specify the source of the income___________________ 

 

HB-2-3560 

Attachment 6-I 

Page 2 of 4 
B. Assets: YES NO 

1. Do you or any other members of the household have any of 

The following: 

 Checking accounts – average balance last 6 months 

 Savings accounts –current balance 

Certificates of deposit 

Money market funds 

 IRA/Keogh account 

Stocks 

Bonds 

 Treasury bills 

 Trust funds (do you have access to the funds?) 

 If yes, is the trust irrevocable? 

 Real estate 

Whole life or universal life insurance policy (term not included) 

Cash held in safety deposit boxes or home 

Assets held in another state or foreign country 

Other 

 

2. Have you or any other members of the household received any 

 lump sum payments, such as: 

 Inheritance 

 Lottery winnings 

 Insurance settlements 

 Other 

 

3. Have you or any other household members disposed of any asset(s) 

for less than fair market value in the past two (2) years? 

 

 

4. Do you or any other household members have any assets that are 

held jointly with another person? 

HB-2-3560 

Attachment 6-I 

Page 3 of 4 

(02-24-05) SPECIAL PN 

Added (02-27-09) PN 427 
C. Deductions: YES NO 

1. Are there any fulltime students 18 years of age or older in the 

household? 

 

 

2. Does any household member qualify for elderly deduction (age 62 

or older or a person with disabilities)? 

 

3. Do you have medical expenses that are not paid for by an outside 

source such as insurance (applicable to elderly/disabled)? 

 

4. Do you have disability expenses that are not paid for by an outside 

source? 

 

 If yes, is this service necessary to enable a household member 

(including the member with a disability) to be employed? 

 

 

5. Do you have attendant care expenses? 

 If yes, is this service necessary to enable a household member 

(including the member with a disability) to be employed? 

 

 

6. Do you currently pay for childcare services for any children under 

the age of 13 residing in your household? 

 

 If yes, is this service necessary in order for you to be employed 

or to attend school? 

 

 If yes, are any of these expenses reimbursed by an outside source? 

HB-2-3560 

Attachment 6-I 

Page 4 of 4 
ATTACHMENT 6-J 

Required Tenant File Documentation 

Tenant file records are critical pieces of source documentation, perhaps the critical source 

documentation, used as evidence to support determinations and conclusions in all areas of 

occupancy monitoring. The tenant file records must be complete and contain all information and 

forms relevant to occupancy at the project. The tenant files must be retained for at least 3 years 

or until the next Agency Supervisory Visit, whichever is longer. At a minimum the files should 

include: 

I. Application/Household Information 

A. Application (signed, dated, and date stamped); 

B. Verification/certification of social security numbers, if available; 

C. Citizenship declaration/immigration status (all household members) FARM 

LABOR ONLY; 

D. Eligibility verification documents (e.g., person with disabilities, elderly, resident 

assistant, assistance animal, etc.); 

E. Release and consent form for income verification for each adult household member; 

and 

F. Acknowledgement of the head of household’s receipt of lead based paint disclosure 

brochure, if applicable. 

 

II. Lease 

A. Lease (signed and dated); 

B. Lease amendments/addendums/agreements; 

C. Project rules and regulations; 

D. Pet rules and pet deposit receipt, if applicable; 

E. Security deposit receipt, if applicable; 

F. Move-in inspection report; 

G. Annual inspection reports; and 

H. Lead-based paint addendum, if applicable. 

HB-2-3560 

Attachment 6-J 

Page 1 of 2 

(02-24-05) SPECIAL PN 

Added (02-27-09) PN 427 
III. Certification/Recertification 

A. Initial and annual recertifications; 

B. Recertification notices (initial and, if applicable, first, second, and third); 

C. Verifications for income, assets, and deductions; 

D. Disposal of assets verification (head of household, spouse, co-head); 

E. Payment plans, if applicable; 

F. Correspondence either issued to, or received from, tenant(s); and 

 G. Copy of Certified Mail Receipt.

IV. Other Files That Need to Be Maintained 

A. Move-out files. 

The current tenant file will become the move-out file. In addition to the above 

items, the move-out files must contain: 

1. Copy of the intent to vacate notice received from the tenant; 

2. Move-out inspection report; 

3. Copy of the security deposit disposition notice provided to the tenant; and 

4. Documents supporting retaining all or a portion of the security deposit. 

B. Application/Reject Files. 

1. Application; 

2. Documentation to support the reason(s) for rejecting, such as screening 

information from previous landlords, personal references, credit reports, criminal 

activity, and refusal to sign consent form; 

3. Copy of the written notice of rejection sent to the applicant; and 

4. Any information or letters regarding appeals by applicants.

______________________________________________________________________________ 

HB-2-3560 

Attachment 6-J 

Page 2 of 2 
HB‐2‐3560

Attachment 6‐K

Page 1 of 42

ATTACHMENT 6-K

Guide for Administering and Complying with the 

Violence Against Women Reauthorization Act of 2013 

Rural Development Multifamily Housing 

INDEX 

SECTION PAGE 

A. About this Guide 3 

B. Fair Housing and Non-Discrimination 3 

C. What is VAWA 4 

D. Key Definitions 4 

E. Who is Covered Under the VAWA Protections 5 

F. Eligibility and Adverse Factors As a Direct Result 5 

 1. Determining When Adverse Factors Are a Direct Result 6 

2. Examples of Adverse Factors That Might Be a Direct Result 7 

G. Ineligibility for VAWA Protections 9 

H. Notification of Denial, Termination, and Eviction 10 

I. HUD’s Forms and Documentation of Domestic Violence, Dating Violence, 

 Sexual Assault, and Stalking 10 

 

 1. The Form HUD-5380 Notice of Occupancy Rights 11 

 2. The Form HUD-5381 Model Emergency Transfer Plan 11 

 3. The Form HUD-5382 Certification of Domestic Violence, 

 Dating Violence, Sexual Assault, and Stalking 11 

 4. The Form HUD-5383 Emergency Transfer Document 14 

 5. The Form HUD-91067 and the RD Sample VAWA Lease 

Addendum 15 

J. Requests for Third-Party Documentation of Victim Status 16 

K. The Management Plan and Borrower’s VAWA Policies 17 

L. Victim Confidentiality and Best Practices for Communications 20 

(02-24-05) SPECIAL PN 

Added (09-30-22) PN 569 

 
HB‐2‐3560

Attachment 6‐K

Page 2 of 42

SECTION PAGE 

M. The Emergency Transfer Plan 22 

 1. Internal Transfers 23 

 2. External Transfers 24 

 3. RD’s Emergency Transfer Process 24 

 

4. Processing an Emergency Transfer Request 25 

 - Example 26 

N. Eligibility for An Emergency Transfer 27 

O. Lease Bifurcation 27 

1. Reasonable Time to Establish Eligibility Following 

 Lease Bifurcation 28 

2. Family Break-Up Example 29 

 

P. Termination of the Victim Due to “Actual and Imminent Threat” 

 and Any Violation Not Premised on an Act of Domestic Violence, 

 Dating Violence, Sexual Assault, or Stalking 30 

Q. Establishing an Admissions Preference 32 

R. Agency Monitoring, Record Keeping and Reporting 32 

S. Developing Partnerships with Victim Service Providers 34 

T. Additional Resources 35 

EXHIBITS: 

Exhibit A – RD’s Emergency Transfer Process 37 

Sample VAWA Letter of Priority Entitlement 39 

Exhibit B – RD’s Sample VAWA Lease Addendum 41 

__________________________________________________________________________________ 

 
HB‐2‐3560

Attachment 6‐K

Page 3 of 42

Guide for Administering and Complying with the 

Violence Against Women Reauthorization Act of 2013 

A. About this Guide 

This guide is for Rural Development (RD) Multifamily Housing’s (MFH) Loan Servicing Officials and contains 

the program requirements for administering and complying with the Violence Against Women Reauthorization 

Act of 2013 (VAWA), as amended. This guide does not encompass every aspect of VAWA, and therefore, should 

be used in conjunction with Public Law 113-4, Title VI of VAWA “Safe Homes for Victims of Domestic 

Violence, Dating Violence, Sexual Assault, and Stalking,” and the U.S. Department of Housing and Community 

Development’s (HUD) Housing Protections for Victims of Domestic Violence, Dating Violence, Sexual Assault, 

and Stalking regulation at 24 CFR Part 5 Subpart L ‐‐ Protection for Victims of Domestic Violence, Dating

Violence, Sexual Assault, or Stalking.

Related reference documents include RD’s Multifamily Housing Program regulation 7 CFR 3560, and the RD 

Multifamily Housing Asset Management Handbook (HB-2-3560). All of HUD’s documents referenced in this 

guide are available on HUD’s website, VAWA Resources for Multifamily Assisted Housing. When there is a 

conflict between VAWA and RD’s program regulations, whichever law, regulation, or policy that provides 

greater protections for victims applies. 

B. Fair Housing and Non-Discrimination 

Borrowers are subject to the Civil Rights laws as stated in 7 CFR 3560.2. VAWA protections are not limited 

to women. Persons who are threatened or actual victims of domestic violence, dating violence, sexual 

assault, or stalking are eligible for protections without regard to sex, gender identity, or sexual orientation, 

and cannot be discriminated against on the basis of any protected characteristic, including race, color, 

national origin, religion, sex, familial status, disability, or age. When obtaining information from a victim of 

domestic violence, dating violence, sexual assault, or stalking, Borrowers must take appropriate steps to ensure 

effective communication with applicants and tenants with disabilities using appropriate auxiliary aids and 

services, such as large print or Braille documents, readers, interpreters, and accessible electronic documents. 

Borrowers must also take reasonable steps to ensure meaningful access to their programs and activities to 

Limited English Proficiency individuals such as by providing individualized assistance in completing forms. 

Borrowers must meet physical accessibility requirements when making emergency transfers, which may 

include making physical modifications to dwelling units and common use areas. Borrower non-compliance 

with VAWA leads to violations of federal laws, including civil rights and fair housing laws to which they are 

required to adhere, and enforcement actions against them and their management agents. Acts of Borrower 

non-compliance with VAWA must be reported to the USDA’s Office of Civil Rights. 

(02-24-05) SPECIAL PN 

Added (09-30-22) PN 569 

 
HB‐2‐3560

Attachment 6‐K

Page 4 of 42

C. What is VAWA 

On March 7, 2013, the VAWA Act of 2013 was signed into law as Public Law 113-4. It applies to RD’s 

Sections 515, 515/8, 514/516, 533, and 538 housing programs (referred collectively as the RD-covered 

programs). Applicants, tenants, and household members of tenants assisted under these programs may not be 

denied admission to, denied assistance under, terminated from participation in, or evicted from the housing 

as a direct result of the fact that the applicant, tenant, or household member is or has been a victim or there is 

an imminent threat of domestic violence, dating violence, sexual assault, or stalking, if the applicant or tenant 

otherwise qualifies for admission, assistance, participation, or occupancy. 

D. Key Definitions 

RD’s Loan Servicing Officials and Borrowers should familiarize the meaning of the following terms: 

Actual and imminent threat refers to a physical danger that is real, would occur within an immediate time 

frame, and could result in death or serious bodily harm. In determining whether an individual would pose an 

actual and imminent threat, the factors to be considered include: the duration of the risk, the nature and 

severity of the potential harm, the likelihood that the potential harm will occur, and the length of time before 

the potential harm would occur. 

Affiliated individual, with respect to an individual, means: 

a. A spouse, parent, brother, sister, or child of that individual, or a person to whom that individual stands in 

the place of a parent or guardian (for example, the affiliated individual is a person in the care, custody, or 

control of that individual); or 

b. Any individual, tenant, or lawful occupant living in the household of that individual. 

Bifurcate means to divide a lease as a matter of law, subject to the permissibility of such process under the 

requirements of the applicable RD-covered program and State or local law, such that certain tenants or 

lawful occupants can be evicted or removed and the remaining tenants or lawful occupants can continue to 

reside in the unit under the same lease requirements or as may be revised depending upon the eligibility for 

continued occupancy of the remaining tenants and lawful occupants. 

Borrower refers to an entity under RD’s covered housing programs that has responsibility for the 

administration and/or oversight of VAWA protections. This includes property management agents, Tribal, 

and State/local governments or agencies. 

Covered Housing Program refers to RD’s Sections 515 RRH, 515/8, 514/516 Off-FLH, 533 HPG, and 538 

GRRH programs and the housing programs listed in HUD’s Definitions under 24 CFR part 5.2003.

Dating violence means violence committed by a person: 

a. Who is or has been in a social relationship of a romantic or intimate nature with the victim; and 

b. Where the existence of such a relationship shall be determined based on a consideration of the following 

factors: 

_______________________________________________________________________________________ 

 
HB‐2‐3560

Attachment 6‐K

Page 5 of 42

1) The length of the relationship; 

2) The type of relationship; and 

3) The frequency of interaction between the persons involved in the relationship. 

Domestic violence includes felony or misdemeanor crimes of violence committed by: 

a. a current or former spouse or intimate partner of the victim, 

b. by a person with whom the victim shares a child in common, 

c. by a person who is cohabitating with or has cohabitated with the victim as a spouse or intimate partner, 

d. by a person similarly situated to a spouse of the victim under the domestic or family violence laws of the 

jurisdiction receiving grant monies, or 

e. by any other person against an adult or youth victim who is protected from that person's acts under the 

domestic or family violence laws of the jurisdiction. 

Imminent Harm from Further Violence means the tenant’s or household member’s belief of the threat or 

danger, based on their experiences and responses to violence, threats, and trauma that they will (may) face 

without the emergency transfer.

“Safe” Unit means a unit that the victim of domestic violence, dating violence, sexual assault, or 

stalking believes is safe, based on his/her own beliefs and experiences.

Sexual assault means any nonconsensual sexual act proscribed by Federal, Tribal, or State law, including 

when the victim lacks capacity to consent. 

Spouse or intimate partner means a person who is or has been in a social relationship of a romantic or 

intimate nature with the victim, as determined by the length of the relationship, the type of the relationship, 

and the frequency of interaction between the persons involved in the relationship. 

 

Stalking means engaging in a course of conduct directed at a specific person that would cause a reasonable 

person to: 

(1) Fear for the person’s individual safety or the safety of others; or 

(2) Suffer substantial emotional distress. 

VAWA means the Violence Against Women Act of 1994, as amended (42 U.S.C. 13925 and 42 U.S.C. 

14043e et seq.) 

E. Who is Covered Under the VAWA Protections 

VAWA protections cover tenants and members of their household, as defined under RD’s program 

regulations. VAWA protections also apply to applicants when they are applying for admission to RD’s 

covered housing programs. Many victims of sexual assault experience violence perpetrated by individuals 

with whom they did not have intimate relationships, such as strangers, friends, and family members. Sexual 

assault often happens outside of the home and can be perpetrated by individuals with whom the victim has no 

intimate relationship. 

(02-24-05) SPECIAL PN 

Added (09-30-22) PN 569 

 
HB‐2‐3560

Attachment 6‐K

Page 6 of 42

A Borrower may find instances of domestic violence, dating violence, sexual assault, or stalking against 

youth (those under the age of 18 years old) living in an assisted household for which the family may need to 

exercise VAWA protections to protect the youth victim. Children are often victimized by other family 

members. The same rights and protections apply, and the same documentation and confidentiality procedures 

should be used in assisting this family. 

Unemancipated minors are not eligible to sign leases under RD programs. Borrowers may consider 

contacting child welfare, child protective services, or law enforcement, when a minor claims to be a 

victim of domestic violence, dating violence, sexual assault, or stalking. 

F. Eligibility and Adverse Factors As a Direct Result of Domestic Violence, Dating Violence, Sexual 

Assault, Or Stalking 

The Direct Result provision prohibits Borrowers from denying admission to, denying assistance under, 

terminating participation in, or evicting a tenant based on an adverse factor, if the adverse factor is 

determined to be a direct result of the fact that the applicant or tenant is or has been a victim of domestic 

violence, dating violence, sexual assault, or stalking. 

An adverse factor refers to any factor that can be used as a basis for denying admission or assistance, 

terminating assistance or participation in a program, or evicting a tenant. However, if a denial or termination 

of assistance or eviction is required by a federal statute, based on a particular adverse factor, the Borrower 

must comply with that statute, even if the adverse factor is a direct result of domestic violence, dating 

violence, sexual assault, or stalking. For example, if an applicant is subject to a lifetime registration 

requirement under a State sex offender registration program, the Borrower must deny the applicant 

admission, even if the sex offense(s) was (or were) a direct result of the fact that the applicant was a victim 

of domestic violence, dating violence, sexual assault, or stalking. 

Where an applicant or tenant fails to request VAWA protections, the Borrower is not independently required 

to identify whether adverse factors are the direct result of domestic violence, dating violence, sexual assault, 

or stalking. Borrowers may seek training, where available, from a trained third-party (such as an expert 

victim service provider) on reviewing VAWA documentation. Any communications with a third party must 

be done consistent with the VAWA rule’s confidentiality requirements. 

1. Determining When Adverse Factors Are a Direct Result of Domestic Violence, Dating Violence, 

Sexual Assault, or Stalking 

 

This section provides a framework for determining whether an adverse factor is a direct result of the fact that 

the applicant or tenant is or has been a victim of domestic violence, dating violence, sexual assault, or 

stalking. 

_______________________________________________________________________________________ 

 
HB‐2‐3560

Attachment 6‐K

Page 7 of 42

1. To trigger the direct result analysis, it is the responsibility of the applicant or tenant to: 

 Inform the Borrower that he or she is a victim of domestic violence, dating violence, sexual 

assault, or stalking, and 

 Provide enough information for the Borrower to make a determination regarding the adverse 

factor he or she is claiming was a direct result of domestic violence, dating violence, sexual 

assault, or stalking. 

2. After the Borrower receives this information, the Borrower should consider the individual’s statement and 

any possible supporting documentation in determining if an adverse factor was a direct result of domestic 

violence, dating violence, sexual assault, or stalking. 

3. If further information is necessary for this determination, the Borrower may request additional supporting 

documentation from the applicant or tenant. However, any request for additional documentation must: 

 Be in accordance with the Borrower’s policies or practices; 

 Not require evidence of domestic violence, dating violence, sexual assault, or stalking other 

than as specified in 24 CFR 5.2007 (see Section I – HUD’s Forms and Documentation); and 

 Not violate the VAWA confidentiality requirements or any other laws. 

4. If the Borrower believes any information is not clear, they should speak to the victim and try to clarify the 

information before making an objectively reasonable determination, based on all the circumstances, whether 

the adverse factor is a direct result of the fact that the applicant or tenant is or has been a victim of domestic 

violence, dating violence, sexual assault, or stalking

2. Examples of Adverse Factors That Might Be a Direct Result of Domestic Violence, Dating Violence, 

Sexual Assault, Or Stalking 

On the surface, adverse factors may appear unrelated to domestic violence, dating violence, sexual assault, or 

stalking and may present legitimate reasons for denial, termination, or eviction. However, the presence of an 

adverse factor may be due to an underlying experience of domestic violence, dating violence, sexual assault, 

or stalking. An adverse factor may be present during much of an abusive relationship, or it may present itself 

only when a victim is attempting to leave, or has left, the abusive relationship. 

The following examples #1 through #4 are provided to give Borrowers a sense of the many instances in 

which adverse factors might be the direct result of domestic violence, dating violence, sexual assault, or 

stalking. Note, however, that this list is neither exhaustive nor definitive. 

1. Poor credit history. Depending on the circumstances, poor credit history may be a direct result of domestic 

violence, dating violence, sexual assault, or stalking, when the domestic violence, dating violence, sexual 

assault, or stalking results in, for example- 

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a. Forcing a victim to obtain credit, including credit cards for the perpetrator’s use; 

b. Using a victim’s credit or debit card without permission, or forcing him or her to do so; 

c. Selling victims’ personally identifiable information to identity thieves; 

d. Running up debt on joint accounts; 

e. Obtaining loans/mortgages in a victim’s name; 

f. Preventing a victim from obtaining and/or maintaining employment; 

g. Sabotaging work or employment opportunities by stalking or harassing a victim at the workplace, 

or causing a victim to lose his or her job by physically battering the victim prior to important 

meetings or interviews; 

h. Placing utilities or other bills in a victim’s name and then refusing to pay; 

i. Forcing a victim to work without pay in a family business, or forcing him or her to turn the 

earnings over to the abuser; 

j. Job loss or employment discrimination due to status as a victim of domestic violence, dating 

violence, sexual assault, or stalking; 

k. Job loss or lost wages due to missed work to attend court hearings, seek counseling or medical 

care, or deal with other consequences of domestic violence, dating violence, sexual assault, or stalking;

and 

l. Hospitalization and medical bills the victim cannot pay or cannot pay along with other bills. 

2. Poor rental history. Depending on the circumstances, poor rental history may be a direct result of domestic 

violence, dating violence, sexual assault, or stalking, when the domestic violence, dating violence, sexual 

assault, or stalking results in, for examplea. Property damage; 

b. Noise complaints; 

c. Harassment; 

d. Trespassing; 

e. Threats; 

f. Criminal activity; 

g. Missed or late utility payments(s); 

h. Missed or late rental payment(s); 

i. Writing bad checks to the landlord, and 

j. Early lease termination and/or short lease terms. 

3. Criminal record. Depending on the circumstances, a criminal record may be a direct result of domestic 

violence, dating violence, sexual assault, or stalking, when the domestic violence, dating violence, sexual 

assault, or stalking results in, for example- 

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a. Forcing a victim to write bad checks, misuse credit, or file fraudulent tax returns; 

b. Property damage; 

c. Theft; 

d. Disorderly conduct; 

e. Threats; 

f. Trespassing; 

g. Noise complaints; 

h. Family disturbance/trouble; 

i. 911 abuse; 

j. Public drunkenness; 

k. Drug activity (drug use and the selling of drugs); 

l. Crimes related to sex work; 

m. Failure to protect a child from a batterer’s violence and/or abuse; 

n. Crimes committed by a victim to defend him or herself or in defense of a third party from 

domestic violence, dating violence, sexual assault, or stalking, and 

o. Human trafficking. 

4. Failure to pay rent. Depending on the circumstances, temporary failure to pay rent may be a direct result of 

domestic violence, dating violence, sexual assault, or stalking, when domestic violence, dating violence, 

sexual assault, or stalking results in, for examplea. The victim’s injury or temporary incapacitation; 

b. The arrest of the only wage-earning member of the household; 

c. Preventing the victim from obtaining and/or maintaining employment; 

d. Sabotaging work or employment opportunities by stalking or harassing the victim at the 

workplace; 

e. Causing the victim to lose the victim’s job by physically battering prior to important meetings or 

interviews; 

f. Placing utilities or other bills in the victim’s name and then refusing to pay; 

g. Forcing the victim to turn his or her earnings over to the abuser; 

h. Forcing the victim to work without pay in a family business, Job loss or employment 

discrimination due to status as a victim of domestic violence, dating violence, sexual assault, or 

stalking; 

i. Losing wages or a job due to missing work to attend court hearings, seek counseling or medical 

care, or deal with other consequences of domestic violence, dating violence, sexual assault, or 

stalking, and 

j. Inability to pay bills after significant medical expenses resulting from the victim’s hospitalization. 

 

G. Ineligibility for VAWA Protections 

Guests, unassisted members, and live-in aides of the family are ineligible for VAWA protections that are 

available only to tenants and household members. 

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As a reasonable accommodation, a tenant can request VAWA protections based on the grounds that the livein aid is a victim of domestic violence, dating violence, sexual assault, or stalking. In addition, other 

reasonable accommodations may be needed on a case-by-case basis. 

In cases where a guest or unassisted member is a victim of domestic violence, dating violence, sexual assault 

or stalking, a tenant cannot be evicted or have assistance terminated on the basis of the domestic violence, 

dating violence, sexual assault or stalking of the guest or unassisted member. 

H. Notification of Denial, Termination, and Eviction 

Borrowers must notify the applicant or tenant if it is found that the denial, termination, or eviction is not on 

the basis or as a “direct result” of being a victim of domestic violence, dating violence, sexual assault, or 

stalking, and the applicant or tenant is thus denied admission to, denied assistance under, terminate from 

participation in, or evicted from the housing. (See 24 CFR 5.2005(b)(1).) An applicant or tenant who 

disagrees with a negative determination must use the appeal procedures pursuant to 7 CFR part 11, or he or 

she may contact the local RD Servicing Office. 

 

In the case of a termination or eviction, Borrowers must comply with the prohibition in 24 CFR 5.2005(d)(2), 

which states, “The covered housing provider must not subject the tenant, who is or has been a victim of 

domestic violence, dating violence, sexual assault, or stalking, or is affiliated with an individual who is or 

has been a victim of domestic violence, dating violence, sexual assault or stalking, to a more demanding 

standard than other tenants in determining whether to evict or terminate assistance.” 

Therefore, even if the direct result prohibition does not apply, the Borrower cannot use that violation to 

terminate or evict a tenant who is a victim of domestic violence, dating violence, sexual assault, or stalking, 

if the Borrower does not ordinarily terminate or evict tenants for that violation. 

I. HUD’s Forms and Documentation of Domestic Violence, Dating Violence, Sexual Assault, or 

Stalking 

HUD’s VAWA forms discussed in this section are: 

1. The Form HUD-5380, Notice of Occupancy Rights

2. The Form HUD-5381, Model Emergency Transfer Plan

3. The Form HUD-5382, Certification of Domestic Violence, Dating Violence, Sexual Assault, or 

Stalking, and Alternative Documentation 

4. The Form HUD-5383, Emergency Transfer Request for Certain Victims of Domestic Violence, 

Dating Violence, Sexual Assault, or Stalking 

5. The Form HUD-91067, VAWA Lease Addendum

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1. The Form HUD-5380, Notice of Occupancy Rights

The VAWA Notice of Occupancy Rights is for use by all RD-covered programs and must be distributed to 

adult applicants, adult tenants and adult household members without changes to the core protections and 

confidentiality rights in the Notice. Borrowers must add to the VAWA Notice of Occupancy Rights 

information that identifies the covered housing program (e.g., RD, Section 515 RRH or 514/516 FLH), the 

company/organization or property name, and any additional information and terminology that is used in the 

pertinent program and makes the VAWA Notice of Occupancy Rights more meaningful to applicants or 

tenants. (For example, the term “apartment” or “housing” may be used in lieu of “unit”.) 

The Form HUD-5380, “Notice of Occupancy Rights” must be provided to each adult applicant or tenant no 

later than at each of the following occasions: (See 24 CFR 5.2005(a)(2)) 

 

For applicants: 

 At the time the individual is provided assistance or admission; and 

 At the time the individual is denied assistance or admission. 

For tenants: 

 During the annual tenant recertification and lease renewal process; and 

 With the Borrower’s notification of eviction or termination of assistance. 

The Notice of Occupancy Rights must be posted about the property in conspicuous locations such as 

common use areas (laundry rooms, community room, bulletin boards, leasing office, near the mailboxes), 

and made available in multiple languages when needed, consistent with guidance in accordance with the 

Limited English Proficiency regulation at 7 CFR 3560.2(b). 

2. The Form HUD-5381, Model Emergency Transfer Plan 

VAWA requires that Borrowers adopt an Emergency Transfer Plan. Borrowers may adopt HUD’s Model 

Emergency Transfer Plan or utilize RD’s Emergency Transfer Process (see Exhibit A). Borrowers must 

address the chosen Emergency Transfer Plan in the Management Plan (see Section K – The Management 

Plan). The Model Emergency Transfer Plan must be customized to include the specific details of the 

assistance provided by the Borrower and the project operations that pertain to the emergency transfer 

provisions. Refer to 24 CFR 5.2005(e) and HUD’s guidance on the use of this form.

3. The Form HUD-5382, Certification of Domestic Violence, Dating Violence, Sexual Assault, or 

Stalking, and Alternative Documentation 

The Form HUD-5382, “Certification of Domestic Violence” must be provided to each adult applicant or 

tenant no later than at each of the following occasions: (See 24 CFR 5.2005(a)(2)) 

 

For applicants: 

 At the time the individual is provided assistance or admission; and 

 At the time the individual is denied assistance or admission. 

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For tenants: 

 During the annual tenant recertification and lease renewal process; and 

 With the Borrower’s notification of eviction or termination of assistance. 

The Certification of Domestic Violence should also be posted about the property in conspicuous locations 

such as common use areas (laundry rooms, community room, bulletin boards, leasing office, near the 

mailboxes), and made available in multiple languages when needed, consistent with guidance in accordance 

with the Limited English Proficiency regulation at 7 CFR 3560.2(b). 

The uses of the Form HUD-5382 are as follows: 

 

 Provides that VAWA 2013 protects applicants and tenants from being denied admission, denied 

assistance, terminated from participation, or evicted from housing based on an act of domestic 

violence, dating violence, sexual assault, or stalking; 

 Serves as an optional way for victims to comply with a written request for documentation about the 

incident or incidents of domestic violence, dating violence, sexual assault, or stalking for persons 

seeking VAWA protections; 

 Provides that the victim or someone on the victim’s behalf may complete the form; 

 Provides a list of acceptable forms of third-party documentation to satisfy a request for 

documentation, (See paragraph (b) below regarding requests for documentation); 

 Explains the time for responding to a written request for documentation; 

 Describes the confidentiality protections under VAWA; 

 Requires that the victim or someone filling out the form on the victim’s behalf must answer 10 

numbered questions and provide a brief description of the incident(s); 

 Clarifies that the name of the accused perpetrator does not have to be provided if it is unknown to the 

victim or it cannot be provided safely; 

 Clarifies that the date and time of incident should be completed only if known by the victim; and 

 Requires the victim or someone filling out the form on the victim’s behalf, to certify to the truth and 

accuracy of the information being provided and explains that false information could be the basis for 

denial of admission, termination of assistance, or eviction. 

a) Accepting a Verbal Statement 

Borrowers are not required to ask for documentation when an individual presents a claim for VAWA 

protections; the Borrower may instead choose to provide benefits to an applicant or tenant based 

solely on the individual’s verbal statement or other corroborating evidence. RD asks that Borrowers 

develop written policies for how and under what circumstances a verbal statement will be accepted 

(e.g., the Borrower was aware of the abuse and encouraged the victim to request VAWA 

protections). It is recommended that in cases where a Borrower decides to rely on such information, 

that the Borrower documents, in a confidential manner, the individual’s verbal statement or other 

corroborating evidence in the tenant’s file.

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b) Requesting Documentation 

If the Borrower chooses to request that an applicant or tenant documents his or her claim of domestic 

violence, dating violence, sexual assault, or stalking, the Borrower must make such request in 

writing. Simply providing the victim the certification Form HUD-5382 does not constitute a written 

request for documentation, unless the certification Form HUD-5382 is accompanied by a dated letter 

requesting documentation. (See 24 CFR 5.2007(a)(1).) 

 

An applicant or tenant may satisfy this request by providing any one of the following documents as 

described below: (24 CFR 5.2007(b)(1)) 

i. Form HUD-5382; or 

ii. A signed document: 

iii. A record of a Federal, State, tribal, territorial or local law enforcement agency, court, or 

administrative agency (for example, a police report); or 

iv. At the discretion of a Borrower, a statement or other evidence provided by the applicant or 

tenant. 

Borrowers must develop written policies on how they will exercise discretion as provided for under 

option (iv) above. The policies should indicate whether a statement or other evidence will be 

accepted. If other evidence will be accepted, RD recommends that the Borrower’s policies define 

“acceptable evidence.” 

Borrowers are prohibited from requiring third-party documentation of victim status, except where 

there are conflicting certifications or submitted documentation contains information that conflicts 

with existing information already available to the Borrower. (Section J) 

c) Allotted Time to Submit Documentation 

Given the possible consequences to both the victim and the alleged perpetrator of domestic violence, 

dating violence, sexual assault, or stalking, it is important that any allegations made by one 

individual against another are made with the understanding that there are consequences if the 

allegations are false. In this regard, Form HUD-5382 advises that the submission of false information 

may be a basis for denial of admission, termination of assistance, or eviction. 

 

Borrowers may require submission of documentation within 14 business days after the date that the 

individual received the written request for documentation. However, the Borrower may extend this 

period at its discretion. During the 14-business day period and any granted extensions of that time, no 

adverse actions, such as eviction or termination, can be taken against the individual requesting 

VAWA protection. For example, Borrowers must not schedule an eviction to take place during this 

time frame. (See 24 CFR 5.2007(a)(2).) 

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In determining whether to extend the 14-business day period, Borrowers must consider factors that 

may contribute to the victim’s inability to provide the documentation in a timely manner. These 

factors may include, but are not limited to: cognitive limitations, disabilities, limited English 

proficiency, absence from the unit due to hospitalization or time in an emergency shelter, 

administrative delays in obtaining police or court records, the danger of further violence, and the 

victim’s need to address health or safety issues. Borrowers must also grant reasonable 

accommodations for persons with disabilities. Note that because of these factors, the Borrower might 

not be contacted by the victim with a request to extend the 14-business day period until after the 14-

day period has passed. 

 

d) Acknowledging Receipt of Documentation; Failure to Provide Documentation in a Timely 

Manner 

Once a victim provides documentation of domestic violence, dating violence, sexual assault, or 

stalking, the Borrower must acknowledge receipt of the documentation in a timely manner. If the 

applicant or tenant fails to provide documentation that meets the criteria in 24 CFR 5.2007 within 14 

business days after receiving the written request for that documentation, or within the designated 

extension period, nothing in the VAWA Final Rule may be construed to limit the authority of the 

Borrower to: 

 

 Deny admission by the applicant to the housing or program; 

 Deny assistance under the covered housing program to the applicant or tenant; 

 Terminate the participation of the tenant in the covered housing program, or 

 Evict the tenant, or a lawful occupant that commits a violation of a lease. 

An applicant’s or tenant’s failure to timely provide documentation of domestic violence, dating 

violence, sexual assault, or stalking does not result in a waiver of the individual’s right to challenge 

the denial of assistance or termination, nor does it preclude the individual’s ability to raise an 

incident of domestic violence, dating violence, sexual assault, or stalking at eviction or termination 

proceedings. If the Borrower denies VAWA protections, they must still follow established appeal 

procedures, as set forth in 7 CFR part 11. 

4. The Form HUD-5383, Emergency Transfer Request for Certain Victims of Domestic Violence, Dating 

Violence, Sexual Assault, or Stalking 

The Form HUD-5383, Emergency Transfer Request For Certain Victims of Domestic Violence, Dating 

Violence, Sexual Assault, or Stalking (Emergency Transfer Request document), may be used to request an 

emergency transfer and to certify that the requirements of eligibility for an emergency transfer under VAWA 

have been met. 

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The elements contained in the model Emergency Transfer Request document, Form HUD-5383 are: 

 

 Provides that victims of domestic violence, dating violence, sexual assault, or stalking may use this 

form to request an emergency transfer; 

 May be used to certify that the victim meets the requirements of eligibility for an emergency transfer 

under VAWA; 

 Defines the qualifications for an emergency transfer; 

 Allows victims who have third-party documentation that demonstrates why they are eligible for an 

emergency transfer to submit this information to the Borrower if it is safe to do so; 

 Describes the confidentiality protections under VAWA; 

 Provides examples of acceptable third-party documentation; 

 Requires that the victim answer numbered questions; 

 Clarifies that the name of the accused perpetrator does not have to be provided if it is unknown to the 

victim or it cannot be provided safely, and 

 Requires the victim to certify to the truth and accuracy of the information being provided and 

explains that false information could be the basis for denial of admission, termination of assistance, 

or eviction. 

5. The Form HUD-91067 and the RD Sample VAWA 2013 Lease Addendum 

Borrowers and management agents must ensure that tenant leases are updated with the latest protections 

afforded to victims of domestic violence, dating violence, sexual assault, or stalking, as required in the 

VAWA 2013, final rule. The Form HUD-91067 (9/2008 or later) “HUD VAWA Lease Addendum” may be 

used or Borrowers and Management Agents may utilize RD’s Sample VAWA Lease Addendum (Exhibit B 

of this Attachment) for this purpose. Borrowers must be certain that the appropriate VAWA Lease addendum 

has been issued to all current households. This may be done at each household’s next annual recertification 

or at an earlier or more timely opportunity. All new move-ins must receive the VAWA lease addendum.(24 

CFR 5.2005) 

VAWA Lease Provisions 

1. The Violence Against Women Act (“VAWA”) and the protections in this Lease Addendum are gender 

neutral. An individual does not have to be a female to access the protections. 

2. The Tenant acknowledges receipt of a printed copy of the Form HUD 5380 Notice of Occupancy Rights 

and a Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking under the Violence 

Against Women Act (“VAWA”) and a copy of HUD 5382 Certification of Domestic Violence, Dating 

Violence or Stalking. Landlords must distribute a printed copy of these documents to each adult household 

member. The VAWA Lease Addendum is available on HUD’s VAWA Resources website to print out copies 

in several different languages. 

3. Tenant may not be denied assistance, terminated from participation in, or evicted from housing on the 

basis of or as a direct result of the fact that the tenant or a member of their household is or has been a victim 

of domestic violence, dating violence, sexual assault or stalking if such tenant family is otherwise qualified 

for admission, assistance, participation or occupancy. 

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4. The Landlord may not consider criminal activity directly relating to incidents of domestic violence, dating 

violence, sexual assault or stalking as violations of the lease or other “good cause” for termination of 

assistance, tenancy or occupancy rights of the victim of abuse. 

5. The victim of domestic violence, dating violence, sexual assault or stalking may request protection under 

VAWA. The Landlord may request in writing that the individual is a victim of domestic violence, dating 

violence, sexual assault or stalking. This can include a completed Form HUD 5382 Certification of Domestic 

Violence, Dating Violence or Stalking, or alternate documentation as noted on the Certification such as a 

court order or letter from a lawyer or social worker. The victim, a family member or a third-party on their 

behalf may submit the written proof or certification. Failure to provide the documentation within 14 business 

days of request, or an agreed upon extension date, may result in eviction. 

6. The Landlord may take action to bifurcate the lease to remove or evict the person who committed 

domestic violence, dating violence, sexual assault, or stalking. The victim and other household members will 

be permitted to remain in the unit, subject to ongoing eligibility and occupancy requirements. 

7. The victim of domestic violence, dating violence, sexual assault or stalking may request a transfer to find a 

safe unit. The Landlord may require a completed Form HUD 5383 Emergency Transfer Request form. The 

Landlord will work with the victim to facilitate a transfer in compliance with their Emergency Transfer Plan 

even if that transfer is outside of the project’s control. 

8. If Tenant or a member of their family in the household is a victim of domestic violence, dating violence, 

sexual assault or stalking in the unit or building, the Tenant may terminate the lease without penalty. 

9. Any information submitted to the Landlord will be kept strictly confidential and will not be disclosed to 

any other individual or entity except if disclosure is consented to by the victim, is required for an eviction or 

is otherwise required by law.

J. Requests for Third-Party Documentation of Victim Status 

A Borrower is not permitted to require the victim to provide third-party documentation of victim status, 

unless: 

 More than one applicant or tenant provides documentation to show he or she is a victim of domestic 

violence, dating violence, sexual assault, or stalking, and the information in one person’s 

documentation conflicts with the information in another person’s documentation, or 

 Submitted documentation contains information that conflicts with existing information already 

available to the Borrower. 

In both of the above scenarios, Borrowers are permitted to require the applicants or tenants to submit thirdparty documentation that meets certain criteria. See 24 CFR 5.2007(b) for the permissible documentation and 

submission requirements when requesting third-party documentation. 

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If the Borrower requests, but does not receive, third-party documentation, the Borrower has the option to 

deny VAWA protections and must notify the applicant or tenant. If this results in one of the tenants being 

terminated from assistance, the Borrower must hold a separate hearing for that tenant, pursuant to 7 CFR part 

11. 

 

When the documentation requirements are satisfied and the question of victim status is resolved, the 

Borrower may not require further evidence or question whether the person satisfies the requirements for 

VAWA protections. 

Note: Perpetrators sometimes obtain temporary restraining orders or file police reports against victims as a 

form of retaliation. Further, many victims are unable to timely access the courts or law enforcement due to 

language barriers, disabilities, cultural norms, or fear for their safety. As a result, the fact that only one party 

submitted third-party documentation is not always a reliable indicator of domestic violence, dating violence, 

sexual assault, or stalking. A family break-up policy allowing assistance to be provided to both parties may 

alleviate a negative impact, such as loss of housing assistance. 

K. The Management Plan and Borrower’s VAWA Policies 

The Management Plan (HB-2-3560, Attachment 3-A), Tenant Selection Plan (HB-2-3560, Chapter 6.21), and 

Occupancy Rules must include policies and procedures that protect, support, and assist tenants and applicants who 

are victims of domestic violence, dating violence or stalking, as well as members of the household from being 

denied housing and from losing their assisted housing as a direct result of domestic violence, dating violence or 

stalking. These policies and rules are critical to informing Borrowers and management agents how to operate on a 

daily basis while ensuring compliance with VAWA. Borrowers are obligated to undertake whatever actions 

permissible and feasible to assist individuals residing in their units who are victims of domestic violence, 

dating violence, sexual assault, or stalking to remain in their units or in units of other covered housing 

providers, and for the Borrower to bear the costs of any transfer, when possible. 

The Management Plan must contain protections for victims, such as strict confidentiality in maintaining 

VAWA records and all communications with victims, lease bifurcation, and emergency transfer policies. 

Unit leasing and tenant selection policies (HB-2-3560, Chapter 3, Attachment 3-A, paragraph 5) must 

also include policies and procedures for protecting the rights of tenants and applicants afforded under 

VAWA. The Borrower’s policies and procedures for VAWA may be presented as an annex to the 

Management Plan and must provide adequate details for the Agency to effectively monitor VAWA 

compliance, including a person or position in the owner's organization that is the key contact for the 

management agent regarding VAWA.

When a Borrowers Management Plan does not include the VAWA policies and procedures, or if project 

operations change and are no longer consistent with the current Management Plan on file with the 

Agency, an updated Management Plan must be submitted to the Agency, as outlined in HB-2-3560, 

Chapter 3.3. 

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The updated Management Plan should address all activities, objectives, policies, or programs that will 

enable a Borrower to serve the needs of child and adult victims of domestic violence, dating violence, 

sexual assault, or stalking. A most comprehensive Management Plan would provide details on the 

following: 

 Certification and Documentation Requirements 

 Victim Confidentiality Policies 

 Lease Bifurcation and Emergency Transfer Plan 

 Partnerships 

 Conflicting Claims of Abuse 

 Admissions Preference, if applicable 

 Other areas of consideration 

Certification and Documentation – (See Section I - HUD’s Forms and Documentation of Domestic Violence, 

Dating Violence, Sexual Assault, or Stalking) 

 How will the Borrower provide the VAWA Notice of Occupancy Rights (Form HUD-5380) and 

Certification form (HUD-5382) to each adult household member? 

 How and where will the VAWA forms be made available? 

 Will the Borrower ask for documentation when an individual presents a claim for VAWA 

protections, and if so, under what circumstances? 

 How will the Borrower define the term “other evidence”? 

 Will the Borrower require submission of documentation within 14 business days? 

 Under what conditions will an extension of the 14-business day period for submitting documentation 

be allowed? 

 How long will the Borrower take to acknowledge receipt of documentation? 

Victim Confidentiality – (See Section L) 

 Who will have access to VAWA information? 

 How will information be stored and secured? 

 How will information be accessed? 

 Who are the Borrower’s VAWA points of contacts for tenants? 

 How will the management agent determine appropriate communications with victims? 

 What procedures will the Borrower undertake to ensure others will not overhear conversations with 

victims? 

 Will victims be required to come into a management office? 

 Will the Borrower suggest that a victim designate a point of contact for communications? 

Emergency Transfer Plan - (See Section M) 

 What efforts will the Borrower make to assist a tenant or household who request an internal 

emergency transfer or external emergency move? 

 Will the Borrower accept verbal-certification or require a written transfer request? 

 Will the Borrower require the use of the emergency transfer request Form HUD-5383? 

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 Will the Borrower make additional efforts to assist a tenant who wishes to make an internal 

emergency transfer (e.g. provide a moving van)? (Under the VAWA regulation, the Borrower’s 

Emergency Transfer Plan must allow a tenant to make an internal emergency transfer under VAWA 

when a safe unit is immediately available.) 

 Will the Borrower make arrangements, including memoranda of understanding, with other HUDfunded Borrowers to facilitate external moves? 

 Will the Borrower provide contact information for local service providers? 

Partnerships – (See Section S) 

 Will the Borrower conduct outreach activities to organizations that assist or provide resources to 

victims? 

 Will the Borrower develop partnerships with domestic violence victim advocates, legal aid services, 

and law enforcement agencies to further VAWA protections? 

 Will the Borrower invite domestic violence victim advocates to speak to resident groups and 

employees? 

 Will the Borrower create pamphlets, posters, and other media to help inform applicants, tenants, and 

participants about the VAWA protections available to them? 

 Will the Borrower offer any activities, services, or programs either directly or in partnership with 

other service providers to enhance victim safety? 

 Will the Borrower offer any domestic violence, dating violence, sexual assault, or stalking prevention 

programs? 

Conflicting Claims of Abuse – (See Section J)

 What will the Borrower do in cases of conflicting third-party documentation? 

 Will hearings include a trained third party with experience in adjudicating domestic violence, dating 

violence, sexual assault or stalking cases? 

Admissions Preference – (See Section Q) 

 Will the Borrower adopt an admissions preference for victims seeking an external emergency move 

from another RD-funded property? 

 What priority will be given to victims? 

 Will the Borrower treat RD tenants who are victims looking for an external emergency transfer the 

same or different than non-RD tenants who are victims? 

 Will the Borrower limit the preference to persons referred by a partnering service organization or 

consortia of organizations? 

 Are there State or local laws that provide greater protections than those provided under VAWA that 

an owner should be made aware of? 

Other Considerations 

 What actions will the Borrower take to reduce or eliminate an “actual or imminent” threat? 

 Will the Borrower offer lease bifurcation? 

 Under what circumstances would a perpetrator who was evicted/terminated from assistance or 

convicted of domestic violence, dating violence, sexual assault, or stalking be allowed to rejoin the 

household upon request of the family? 

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L. Victim Confidentiality and Best Practices for Communications 

Under VAWA 2013, any information submitted to the Borrower or management agent regarding 

domestic violence, dating violence, sexual assault, or stalking, including the fact that the individual is a 

victim of such abuse must be kept strictly confidential. All documentation relating to an individual’s 

domestic violence, dating violence or stalking incident must be in a separate file that is kept in a separate 

secure location from other tenant files. (See 24 CFR 5.2007(c).)

Given the significant safety issues faced by victims of domestic violence, dating violence, sexual assault, or 

stalking, it is critical that Borrowers adopt policies to maintain the confidentiality and privacy of victims who 

seek protections under VAWA, including strict measures to prevent the disclosure of the location of the 

new dwelling unit to the person that commits an actual or imminent act of violence. The Borrower’s 

confidentiality and privacy policies shall be explained in the Management Plan. 

 

Employees of the Borrower or those who administer VAWA assistance on their behalf, (e.g., management 

agent and contractors) must not have access to the information unless explicitly authorized by the Borrower 

for reasons that specifically call for these individuals to have access to such information under applicable 

Federal, State, or local law (e.g., the information is needed to provide the VAWA protections to the victim). 

The Borrower must not enter this information into any shared database, or disclose this information to any 

other entity or individual (e.g., a prospective owner of participant’s unit), except to the extent that disclosure 

is: 

 Requested or consented to in writing by the individual (victim) in a time-limited release; 

 Required for use in an eviction proceeding or hearing regarding termination of assistance from 

the program; or 

 Otherwise required by applicable law. 

The prohibition against entering this information into any shared database does not preclude a Borrower 

from entering this information into a database system used by the Borrower that meets all requirements for 

securing sensitive personally identifiable information (PII), including the Privacy Act of 1974 (5 U.S.C. § 

552a), as long as the requirements listed above and provided at 24 CFR 5.2007(c) are also met (e.g. the 

victim consents to it in writing in a time-limited release). 

When communicating with an applicant, participant, or tenant who has requested VAWA protections, the 

Borrower must take precautions to avoid inadvertent disclosure of confidential information to another 

individual or entity in violation of 24 CFR 5.2007(c). 

Unless given permission from the victim to do so, the Borrower must not leave messages or send mail of any 

kind that contain confidential information or refer to VAWA, the VAWA protections, or the domestic 

violence, dating violence, sexual assault, or stalking (e.g., asking the victim to come to the property 

management agent’s office to pick up the Form HUD-5382) or with other individuals, including members of 

the victim’s household. Leaving a voicemail requesting that the victim contact the property management 

agent without referencing VAWA, VAWA protections, or the domestic violence, dating violence, sexual 

assault, or stalking, is not prohibited. 

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If the victim gives the Borrower permission to contact them about the domestic violence, dating violence, 

sexual assault, or stalking via mail, voicemail system, electronic mail, or other method approved by the 

victim, best practice would be to ensure this permission is in writing. If it is not feasible for the victim to 

provide the permission in writing, the Borrower may make a note in the victim’s file about which forms of 

communication with the victim have been approved by the victim. The written permission or other notation 

must be kept confidential.

Best Practices 

The following best practices are designed to address the challenges of collecting information and 

communicating with a victim while meeting the strict confidentiality requirements of VAWA: 

 Conduct the intake session in a private room, where the individual and staff person can talk without 

the risk of other staff or clients overhearing. 

 Explain the Management Agent’s information sharing policies. 

 Communicate to the individual who is responsible for handling questions or complaints about 

confidentiality. 

 Provide adequate time for the individual to review and sign forms. 

 Post confidentiality notices in the intake room and around the property’s common areas. 

 Ensure relevant staff understand confidentiality policies and procedures through regular staff 

training. 

 Unless given permission from the victim to do so, do not send mail or leave messages of any 

type that contain confidential information or refer to VAWA. The perpetrator may have access to 

the victim’s mail or be the co-head of household, or the perpetrator may be employed at the 

residence of the victim.

 When discussing these matters directly with the victim, ensure that no one can overhear the 

conversation. Make arrangements that do not place the victim at risk, such as requesting a 

meeting in a private room accompanied by a trusted friend or service provider; not in an open 

space at the management office.

 Direct staff to respond to third-party inquiries only after verifying that written client consent has been 

obtained. 

 Clarify information sharing policies with referring/referral agencies and other service and business 

partners. 

 Maintain distinct phone lines for certain purposes. 

 Avoid using language referencing domestic violence or sexual assault in agency names, program 

names, organization names, and staff titles. 

 Use a Management Agent controlled post office box to receive written correspondence. 

 Serve individuals off-site as needed or when appropriate. 

 Provide interpretation and/or documents translated into the appropriate language when necessary. 

 Provide accessible documents or assistance filling out forms for individuals with disabilities. 

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M. The Emergency Transfer Plan 

Borrowers are required to adopt an Emergency Transfer Plan allowing tenants who are facing actual or 

imminent harm from domestic violence, dating violence, sexual assault, or stalking to make an internal 

emergency transfer under VAWA when a safe unit is immediately available. A victim determines whether 

the unit is safe. (See 24 CFR 5.2005(e)(1)(iii)). 

The Form HUD-5381 may be used for this purpose or Borrowers may utilize RD’s Emergency Transfer 

Process which is discussed in paragraph 3 below. Borrowers must engage the victim in a conversation as to 

what they may consider safe or what factors the victim considers unsafe. This may allow the Borrower to 

better tailor its emergency transfer response. 

The Emergency Transfer Plan must identify tenants who are eligible for an emergency transfer, whether 

documentation is needed and what type of documentation is needed from a victim to request an emergency 

transfer, confidentiality protections, how an emergency transfer may occur, and guidance to tenants on safety 

and security. The Emergency Transfer Plan should describe the reasonable efforts the Borrower will take to 

assist a tenant in making an internal emergency transfer when a safe unit is not immediately available, and 

the reasonable efforts the Borrower will take to quickly assist a tenant who wishes to make an external 

emergency transfer when a unit that meets the victim’s safety standard is not available internally. If a 

property is fully occupied and after checking the RD MFH Rentals website the Borrower is unaware of other 

vacant units in the area, Borrowers must use their best effort to support victims in finding a safe place to live. 

(See Section S - Developing Partnerships with Victim Service Providers) 

The Emergency Transfer Plan should also make clear that qualifying for an emergency transfer does not 

guarantee continued assistance under the current program or an external transfer to another covered housing 

program. The emergency transfer requirements do not supersede any eligibility or occupancy requirements 

that may apply under a covered housing program. This means that even if a tenant at Property A is eligible to 

request an emergency transfer, the tenant cannot move into Property B if the tenant does not meet the 

program eligibility requirements at Property B. For example, if a tenant qualifies for an emergency transfer at 

Property A to escape an abusive partner, but the tenant does not meet the program eligibility requirements at 

Property B (must be a disabled person or age 62 at a Section 515 Elderly property), the tenant cannot be 

rehoused at Property B under that program. 

The Borrower’s Emergency Transfer Plan may require documentation from a tenant seeking an emergency 

transfer, pursuant to 24 CFR 5.2007(b)(1). When a Borrower requires documentation from the tenant, the 

request doe documentation must be submitted to the tenant in writing. The Emergency Transfer Plan must 

specify whether verbal statements, self-certification, or a written request from the tenant is sufficient to 

initiate an emergency transfer. If a verbal statement, self-certification or written request is needed, it shall 

include: 

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 A statement that the tenant requests an emergency transfer because he, she, or a household member 

reasonably believes that there is a threat of imminent harm from further violence if the tenant were to 

remain in the same dwelling unit, or 

 A statement that the tenant requests an emergency transfer because the tenant was a sexual assault 

victim and that the sexual assault occurred during the 90-calendar day period preceding the tenant’s 

request for an emergency transfer. 

If revisions to existing policies are necessary to facilitate emergency transfers, Borrowers should consider the 

following when making the needed revisions: 

 

 Availability and location of units under current ownership; 

 Demand by applicants for assistance under the program; 

 Frequency of mandatory or emergency transfers; and 

 Availability of alternative housing opportunities. 

Borrowers must also comply with state specific VAWA laws which may provide additional requirements for 

emergency transfer policies, such as a requirement to create an admissions preference for victims of domestic 

violence, dating violence, sexual assault, or stalking. (See Section Q - Establishing an Admissions 

Preference) 

1. Internal Transfers 

An internal transfer is a transfer within the same or scattered site property in which the tenant requesting the 

transfer currently resides. The transfer can be performed without the tenant reapplying for housing 

assistance. The Emergency Transfer Plan must allow a tenant to make an internal emergency transfer under 

VAWA when a safe unit is immediately available. The plan must also describe policies for assisting tenants 

when a safe unit is not immediately available. Those policies must ensure that requests for internal 

emergency transfers under VAWA receive, at a minimum, any applicable additional priority that Borrowers 

may already provide to other types of emergency transfer requests. 

Often Borrowers will not have a unit which is immediately available and/or that the victim determines is safe 

within the same property or in another building that is part of the same scattered site property. The Borrower 

must have a policy to assist the tenant in obtaining a safe unit within the property once one becomes 

available. If the Borrower has an internal transfer waiting list, the victim should be placed on that list. The 

Borrower’s policy should state whether or not the Borrower will give priority to victims of domestic 

violence, dating violence, sexual assault, or stalking on their internal transfer waiting list. This is the 

Borrower’s choice.

If a safe unit is not immediately available, the Borrower must, at the same time, offer the tenant assistance in 

making an external transfer. The Borrower and victim should discuss why an internal transfer is not viable at 

that time and what external transfer options are available based on the Emergency Transfer Plan. 

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2. External Transfers 

An external emergency transfer refers to a tenant’s physical move out of the property in which he or she 

resides to a property where the tenant would be categorized as a new applicant. A VAWA LOPE from the 

Agency may be used for this purpose. For example, a move from Property A to Property B is an external 

transfer – this also means that the household goes from being a tenant at Property A to an applicant at 

Property B with priority placement in an available unit or on the waiting list over all other applicants of the 

individual applicant’s income group. 

Borrowers are required to make reasonable efforts to assist a tenant who requests to make an external 

emergency transfer when a safe unit at the current property is not immediately available. Borrowers are 

strongly encouraged but are not required to research available units and/or arrange for the move. 

A Borrower’s reasonable efforts should include providing contact information for relevant local service 

providers, government agencies, and other affordable housing developments in the area. 

 

Borrowers must consider the following when creating their external emergency transfer policies: 

 Making available a list of similar assisted housing options in an area requested by the victim. A 

housing search can be completed on RD’s MFH Rentals website here RD MFH Rentals. 

 Making arrangements including memoranda of understanding, with other local affordable Borrowers 

to facilitate moves. 

 Conducting outreach activities to organizations that assist or provide resources to victims of domestic 

violence, dating violence, sexual assault, or stalking (see Section T – Additional Resources). 

 Creating an admissions preference for victims seeking an external emergency transfer from another 

covered housing provider. This would allow a victim to more quickly access an available unit 

administered by a RD Borrower without being placed on the bottom of an applicant waiting list. (See 

Section Q – Establishing An Admissions Preference). 

 Providing a letter such as an RD LOPE that the victim may give to prospective covered housing 

providers, indicating that the victim is eligible for an emergency transfer and is entitled to priority 

placement on the waiting list because a safe unit is not immediately available at their current 

property. 

3. RD’s Emergency Transfer Process 

RD’s Emergency Transfer Process requires a VAWA Letter of Priority Entitlement (LOPE) from the 

Agency. A VAWA LOPE entitles existing RD tenants to receive priority over all other applicants of the 

individual applicant’s income group for available housing at any Section 515 Rural Rental Housing or 

Section 514 Farm Labor Housing property, anywhere in the United States, if the victim otherwise meets the 

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normal RD program eligibility criteria in accordance with 7 CFR 3560.152 and 7 CFR 3560.576(b), 

respectively. This letter may also help the victim receive preference in a non-RD financed apartment if 

permitted by the occupancy policy of the non-RD financed program. RD’s VAWA LOPE should be issued 

upon verification that a tenant has certified as an actual or imminent victim of domestic violence, dating 

violence, sexual assault, or stalking. (See HB-2-3560, Chapter 6.18(C) and 6.22)) 

Tenants facing actual or imminent harm should contact the property manager, or if the property manager 

cannot be contacted due to safety concerns because of the inappropriate conduct of the property manager 

or an employee at the property, the local MFH RD office may be contacted directly by the victim, or by 

a local service provider or domestic violence or sexual assault agency that could contact the local MFH 

RD office to request an emergency transfer. The property manager shall provide the victim with the 

VAWA Notice of Occupancy Rights (Form HUD-5380) and may request written Certification (Form 

HUD-5382) or other acceptable type of documentation, when required, certifying to an incident.

Upon verification by the property manager that a tenant has met the eligibility criteria for an emergency 

transfer (see Section N) the property manager shall immediately contact their local RD servicing 

official. The RD servicing official shall provide the VAWA LOPE to the tenant indicating at a 

minimum, the specific benefits that are being provided and that the tenant may receive priority 

placement in an available RD unit within given timeframes. 

After the VAWA LOPE has been issued, the appropriate HUD forms have been received and completed 

where required, and a new unit has been located that was deemed safe by the victim, the transfer is 

permitted to occur. 

Tenants who receive a LOPE and are beneficiaries of Rental Assistance (RA) may transfer their RA to 

another RD property when the victim is the only signatory on the lease or when the lease is bifurcated and 

the perpetrator is evicted.. 

Strict confidentiality measures must be exercised by Borrowers at all times. VAWA records, 

communications and the location of the new dwelling must not be disclosed to the person that commits 

an actual or imminent act of domestic violence, dating violence, sexual assault, or stalking. 

4. Processing an Emergency Transfer Request 

An Emergency Transfer request must be made by the existing tenant facing actual or imminent harm from 

domestic violence, dating violence, sexual assault, or stalking. The Emergency Transfer must be processed in 

accordance with the Borrower’s Emergency Transfer Plan, which should be thoroughly and clearly set forth 

in the Management Plan. 

Below is an example of a basic emergency transfer, although there may be additional circumstances involved 

that could affect the manner in which it is processed. 

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Example: 

Scenario: A tenant approaches property management staff, informing them that they are a victim of dating 

violence and fearful of further violence. The household consists of the victim (head of household) and two 

children under the age of 18. 

Step 1: The management agent provides the victim with the VAWA Notice of Occupancy Rights (Form 

HUD-5380) and Certification (Form HUD-5382) if not previously provided to ensure that they understand 

the rights and protections afforded them. 

Step 2: The victim requests an emergency transfer either verbally or in writing, depending upon the 

management agent’s policy. The management agent can accept the victim’s verbal statement of the incident 

or may request a Certification form or other documentation per 24 CFR 5.2007. 

 

Step 3: The management agent exercises confidentiality while working with the victim and informs him or 

her of options as set forth in the Emergency Transfer Plan. 

1. Internal Transfer: 

A safe unit is not immediately available at the current property. The management agent offers to put 

the victim on an internal transfer waiting list. Because a safe unit is not immediately available, the 

management agent also explains external emergency transfer options. 

2. External Transfer: 

The management agent should offer RD’s Emergency Transfer Process and a VAWA LOPE. A list 

of RD rental properties with Rental Assistance may be obtained using RD MFH Rental Properties 

website. Borrowers may obtain the number of available RA units for each RD project listed in the 

local area from their local servicing office specialist. 

The management agent should also provide a list of non-RD rental units for which the Borrower has 

agreed to partner with and other local organizations serving victims of domestic violence, dating 

violence, sexual assault, or stalking. There may be victim service providers locally that may have 

resources such as safety planning, counseling, and emergency funding. The management agent 

provides the victim with contact information. 

Step 4: The victim decides to forgo the external transfer and stay in the current RD housing unit until he or 

she is able to secure another housing unit. The management agent must take steps to reduce the threat of 

further violence against the victim. Examples include changing the victim’s locks (pursuant to the 

Borrower’s lock replacement policy and state and local laws); installing better lighting around the perimeter 

of the building and reminding the victim that he or she is allowed temporary absence from the unit in 

accordance with the Borrower’s policies. 

Step 5: An assisted unit becomes available at the current property. The management agent notifies the victim 

of the availability of a unit and provides a tour of the unit. 

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Step 6: The victim determines the unit to be safe. The management agent expeditiously follows its policies 

for the internal transfer. 

N. Eligibility for An Emergency Transfer 

The Emergency Transfer Plan must provide that a tenant who is a victim of domestic violence, dating 

violence, sexual assault, or stalking, qualifies for an emergency transfer if: 

1. The tenant expressly requests the transfer; and 

2. Either – 

 The tenant reasonably believes that there is a threat of imminent harm from further violence if the 

tenant remains within the same dwelling unit, or 

 In the case of sexual assault, the tenant reasonably believes there is a threat of imminent harm 

from further violence if the tenant remains within the same dwelling unit that the tenant is 

currently occupying, or the sexual assault occurred during the 90-calendar day period preceding 

the date of the request for transfer. (See 24 CFR § 5.2005(e)(2)) 

O. Lease Bifurcation 

In accordance with 7 CFR 3560.159(d) and 24 CFR 5.2009(a), management agents may bifurcate a lease (or 

remove a household member or lawful occupant from a lease) in order to evict, remove, or terminate 

occupancy rights of a household member who engages in criminal activity directly relating to domestic 

violence, dating violence, sexual assault, or stalking against an affiliated individual or other individual. A 

victim must be a tenant or an adult household member on the lease to request a bifurcation of the lease. 

Bifurcations do not apply to guests or unreported members of a household or anyone else residing in a 

household who is not a tenant. Bifurcation is not the appropriate remedy to remove a person living in the unit 

who is not on the lease and who is not a lawful tenant. 

Eviction or termination of a victim’s assistance under the actual and imminent threat provision should occur 

only when there are no other actions that could be taken to reduce or eliminate the threat, including, but not 

limited to, transferring the victim to a different unit, barring the abuser from the property, contacting law 

enforcement to increase police presence or develop other plans to keep the property safe, or seeking other 

legal remedies to prevent the abuser from acting on a threat. 

Eviction, removal, or termination of occupancy rights shall be carried out in accordance with HB-2-3560, 

Chapter 6.32 and as prescribed by the federal, state, or local law that provides the greater protection for 

victims of domestic violence, dating violence, sexual assault, and stalking. 

 

To avoid unnecessary delay in the bifurcation process, RD recommends that management agents seek courtordered eviction of the perpetrator pursuant to applicable laws. This process results in the underlying lease 

becoming null and void once the management agent regains possession of the unit. The management agent 

would then execute a new lease with the victim. 

(02-24-05) SPECIAL PN 

Added (09-30-22) PN 569 
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Management agents should simultaneously attempt to reach agreement to the mutual termination of the lease, 

if it is safe to do so. 

1. Reasonable Time to Establish Eligibility Following Lease Bifurcation

VAWA establishes a reasonable time period for a remaining household member(s) to demonstrate eligibility 

for housing assistance or find alternative housing following the lease bifurcation. 

The management agent must provide to the remaining household member(s) a minimum period of 90-

calendar days from the date of lease bifurcation to: 

 Establish eligibility for the same housing program that provided assistance to the evicted or 

terminated tenant; 

 Establish eligibility under another covered housing program, or 

 Find alternative housing. 

The management agent is encouraged to allow an additional 60-calendar day extension when needed. In 

addition, the 90-calendar day period and any extension thereafter will not apply beyond the expiration of a 

lease. 

 

In seeking a lease bifurcation, management agents must not subject victims to more demanding 

standards than other applicants. When the remaining household members are unable to establish 

eligibility, such as when the removal of the abuser leaves the family with no member who can qualify, a 

qualified adult may be added to the household to serve as the head of household as outlined in HB-2-

3560, Chapter 6.30 D. 

As a result of a lease bifurcation, it may be necessary to transfer the existing household to an appropriate unit 

size in accordance with the lease. In some cases, the lease bifurcation may result in a change in tenant rent or 

the Tenant Contribution. The management agent must ensure the remaining tenant is provided the proper 

notice of increase as outlined in HB-2-3560, Chapter 7.4 G and in accordance with local and state laws. 

Management Agents should perform an Interim Recertification for the remaining household members at the 

same time the lease bifurcation. Any modification of the rent payment for the remaining household members 

must be done during the 90-calendar day period. The Interim Recertification should be carried out in 

accordance with HB-2-3560, Chapter 6.28 B. 

If the remaining family member will not be able to establish eligibility, the household is not eligible to 

receive subsidy. In this case, the remaining family member must then pay market rent for the duration of the 

90-calendar day period or move-out, whichever comes first. 

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2. Family Break-Up Example 

The occurrence of domestic violence, dating violence, sexual assault, or stalking may lead to the break-up of 

the assisted family. Family break-up involves terminating the assistance of the perpetrator while continuing 

the assistance to the victim, ensuring that the victim understands his or her rights, documenting the abuse, 

maintaining the confidentiality of the victim, and ensuring the safety of the victim. 

 

Changes to a family’s composition must be reported to the management agent in accordance with the terms 

of the lease. The lease includes a requirement that the tenant transfer to an appropriate size dwelling unit 

based on family composition, upon appropriate notice by the management agent that such a dwelling unit is 

available. Management agents must follow the lease and their written internal transfer waiting list policies in 

their Tenant Selection Plans in instances where the change in family composition would require that the 

family move to another unit of appropriate size. (See HB-2-3560, Chapter 6.30 D). 

To help understand each of the steps involved with this process, this Guide presents the following scenario: 

 

Note: The example below provides a scenario that is fact intensive. Real-world cases of victims seeking 

VAWA protections must be approached in a way that takes in consideration the specifics of each case and is 

addressed pursuant to program requirements and management policy. 

Example 

A victim informs the management agent that his or her family member is committing domestic violence, 

dating violence, sexual assault or stalking against him or her, and he or she wishes to retain tenancy. The 

victim may choose to inform the management agent of the abuse after the management agent has notified the 

household that it is being evicted (due to criminal activity, for example), or at any other point. 

Step 1: If the management agent previously has not provided notification to the family members of their 

VAWA rights, then in accordance with 24 CFR 5.2005(a)(2), the management agent must provide notice to 

the victim of his or her VAWA rights. If he or she has been previously notified of his or her VAWA rights, 

the management agent must again provide the victim with the VAWA Notice of Occupancy Rights and 

Certification form, to ensure that he or she fully understands the rights and the protections afforded him or 

her. 

 

Step 2: The management agent can decide to accept the victim’s statement or provide the victim a written 

request for documentation per 24 CFR 5.2007. 

Step 3: Upon provision of documentation (if requested and provided as specified in 24 CFR 5.2005(e)(7)), 

the management agent should ensure the victim knows of the upcoming notification of eviction of the 

perpetrator, including the exact date the notification will take place. As part of this notification to the victim, 

the management agent should give the victim contact information for local victim service providers to allow 

the victim an opportunity to create a plan of action (e.g., the victim may need to leave the unit temporarily 

and stay in a domestic violence shelter until the eviction takes place). The management agent is obligated to 

utilize any partnerships it may have established with local law enforcement and victim service providers to 

ensure the safety of the victim. 

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Step 4: The management agent begins the process to evict the perpetrator. If the victim wants to move out of 

the unit for his or her safety, the management agent must first determine if the tenant qualifies for an 

emergency transfer and then follow its Emergency Transfer Plan. If the victim wants to stay in the unit, the 

management agent bifurcates the lease by evicting the perpetrator and allowing the victim and the remaining 

household members to remain on the lease. The management agent must expeditiously conduct an Interim 

Recertification to determine the new rent computations. The management agent should refer to HB-2-3560, 

Chapter 6.28 B for the requirements of processing an Interim Recertification when there is a change in 

family composition. 

 

Step 5: The management agent should provide the perpetrator with no more than 30 days (in most cases) 

notice of termination (24 CFR 247.4(c)). If the perpetrator requests a hearing, the management agent is 

encouraged to conduct an expedited hearing within no more than 10 days following the effective date of the 

notice. 

The perpetrator has a right to examine the management agent’s documentation relevant to the eviction. This 

means the perpetrator has a right to examine the relevant documentation the victim provided, claiming 

VAWA protections. This documentation is required for use in an eviction proceeding or hearing regarding 

termination of assistance from the covered housing program. (This is an exception to the victim’s 

confidentiality rights, per 24 CFR 5.2007(c)(2)). To protect the victim’s safety, any information that would 

reveal the location of the victim, or the location of any services that the victim is receiving must be 

maintained confidentially (i.e., redacted from the shared documentation), unless it meets the exception in 24 

CFR 5.2007(c)(2)(ii). 

Management agents should consult a local domestic violence expert or victim service provider (that has not 

worked with either the victim or perpetrator), to be on the grievance hearing panel. The hearing officer or 

hearing panel provides the perpetrator with a written decision. 

 

Step 6: If it is determined that the perpetrator did indeed commit the acts, the case will then be moved to 

eviction court. 

 

Step 7: If the eviction process is upheld, the management agent processes the Interim Recertification to 

remove the household member and completes the bifurcation of the lease agreement. 

P. Termination of the Victim Due to “Actual and Imminent Threat” and Any Violation Not Premised 

on an Act of Domestic Violence, Dating Violence, Sexual Assault, or Stalking 

VAWA prohibits denial of admission or assistance, termination of assistance, or eviction on the basis or as a 

direct result of the fact that the applicant or tenant is or has been a victim of domestic violence, dating 

violence, sexual assault, or stalking. However, nothing in the VAWA Final Rule may be construed to limit 

the authority of a management agent to evict or terminate assistance for any violation not premised on an act 

of domestic violence, dating violence, sexual assault, or stalking that is in question against the tenant or an 

affiliated individual of the tenant. (See 24 CFR 5.2005(d)(2)) 

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In addition, nothing in the VAWA Final Rule may be construed to limit the authority of the Borrower or 

management agent to terminate assistance or evict a tenant if the management agent can demonstrate that an 

actual and imminent threat to other tenants or those employed at or providing services to the property would 

be present if that tenant or lawful occupant is not evicted or terminated from assistance. (See 24 CFR 

5.2005(d)(3)) 

In order to demonstrate an actual and imminent threat to other tenants or employees at the property, the 

management agent must have objective evidence of words, gestures, actions, or other indicators that meet the 

standards in the following definition: 

 

“Actual and imminent threat” refers to a physical danger that is real, would occur within an immediate time 

frame, and could result in death or serious bodily harm. 

In determining whether an individual would pose an actual and imminent threat, the factors to be considered 

include: 

 The duration of the risk; 

 The nature and severity of the potential harm; 

 The likelihood that the potential harm will occur, and 

 The length of time before the potential harm would occur. 

Eviction or termination of assistance should only be used by a management agent when there are no other 

actions or remedies to reduce or eliminate the threat, including when actions or remedies are unavailable. 

This is the case even when time periods could reasonably be called “immediate.” Management agents should 

work with local law enforcement to prevent or remedy instances where a threat may occur to better protect 

the victim and other tenants in the community. 

A management agent may consider the following actions to reduce or eliminate an “actual and imminent” 

threat: 

 

 Barring the perpetrator from the property (where state and local laws permit); 

 Changing the victim’s locks (pursuant to the management agent’s lock replacement policy and state 

and local laws); 

 Installing basic security features (e.g., better lighting or an alarm); 

 Encouraging the victim to seek an emergency transfer; 

 Allowing an early lease termination; 

 Allowing the victim to arrange for temporary absence from the assisted unit; 

 Helping the victim access available services and support (e.g., providing information for a local 

victim service provider and civil legal assistance providers, to help the victim get any necessary court 

orders); and/or 

 Working with police and victim service providers to develop a safety plan for the property and a plan 

of action for the victim. (See HB-2-3560, Chapter 6.32) 

(02-24-05) SPECIAL PN 

Added (09-30-22) PN 569 

 
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Q. Establishing An Admissions Preference 

Borrowers may establish an admission preference for victims of domestic violence, dating violence, sexual 

assault, or stalking. A Borrowers admission preference may be created specifically for victims who are nonRD tenants referred by a partnering service organization or consortia of organizations. The Borrower may 

not limit the source of referrals to an agency, organization, or consortia that denies its services to members of 

any Federally protected class under fair housing laws, e.g., race, color, religion, national origin, sex, 

disability, or familial status. For example, the source of referrals may not be limited to only service providers 

of female victims of domestic violence, dating violence, sexual assault, or stalking. 

To establish an admissions preference, Borrowers must submit amended Tenant Selection (HB-2, Chapter 

6.22), Occupancy Policies and Rules (HB-2, Chapters 6.13 and 6.15), as applicable, in the Management Plan 

as outlined in HB-2-3560, Chapter 3.3(B), for Agency review. The amendment should include a detailed 

description of the Borrowers policy and procedure for giving priority placement at the top of RD’s waiting 

list. 

After the Agency’s review finds the amendments acceptable, a VAWA LOPE may be issued when the 

applicant has presented a properly completed victim certification, Form HUD 5382 “Certification of 

Domestic Violence and Alternate Documentation,” or other acceptable documentation when required, and 

enacted their right to protections under VAWA. All normal tenant eligibility and screening criteria will 

apply. 

R. Agency Monitoring, 

The Agency’s monitoring should include a spot check during any on-site reviews to ensure that 

Borrowers and management agents are complying with the VAWA notice requirements, that the owner 

has revised the lease to include VAWA provisions, that the management plan, occupancy policies and 

rules governing the project comply with VAWA, and that a review of tenant files, requests, reports, and 

complaints (including from local domestic and sexual violence programs) reveal that all requests for 

VAWA relief (i.e., emergency transfer requests, bifurcation, confidentiality, and admission and eviction 

protection) are being properly addressed. The property’s noncompliance with VAWA violates civil 

rights laws, including the Fair Housing Act, and must be reported to the USDA’s Office of Civil Rights. 

Any enforcement mechanisms available to RD should be used as necessary to ensure compliance with 

VAWA protections. 

Recordkeeping and Reporting Requirements 

 

Borrowers are required to maintain strict confidential records of all emergency transfers, lease bifurcations 

and the outcomes of such requests, and to provide records to RD staff during the Triennial Supervisory Visit 

and at other times upon request for Agency reporting purposes. Records should be retained for the longer 

period of three years or until the next Triennial Supervisory Visit is completed. 

_______________________________________________________________________________________ 

 
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RD staff should request, and Borrowers should provide the following information for the FRM2000 

Supervisory Visit Management review: 

 

 Number of emergency transfer requests received, in process, and completed; 

 Outcomes of completed emergency transfers 

o Number of internal unit transfers (within same project); 

o Number of external unit transfers (relocated to other RD-funded properties); 

o Number relocated to other assisted housing (e.g., HUD-assisted public housing/housing 

vouchers, or HOME); and 

o Number of tenants who chose to remain in unit (refused emergency transfer or lease 

bifurcation). 

 Number of lease bifurcations requested, in process, and completed. 

Posting and Receipt of the HUD-5380 and HUD-5382 Forms and VAWA Lease 

An acknowledgement of receipt of the Form HUD-5380, “Notice of Occupancy Rights” and the Form HUD5382, “Certification of Domestic Violence” signed by each adult applicant or household member/tenant. The 

signed acknowledgements of receipt may be maintained by the management agent or be placed in the 

appropriate tenant file (i.e., Application/Reject Files, Lease Files or Move Out Files) at each of the 

following occasions: 

 

For applicants: 

 At the time the individual is admitted; and 

 At the time the applicant is denied admission. 

For adult tenants: 

 During the annual tenant recertification and lease renewal process; and 

 With the notification of eviction or termination of assistance. 

The Form HUD-5380, “Notice of Occupancy Rights” and the Form HUD-5382, “Certification of Domestic 

Violence” must be posted in a location(s) at the property visible to tenants and prospective tenants such 

as laundry rooms, community room, bulletin boards, leasing office, and near the mailboxes. 

The Tenant Lease must indicate that the housing project is subject to VAWA, and that the lease and 

occupancy rules have been revised to include VAWA provisions. Occupancy rules must be attached to the 

lease. 

Supervisory Visit – Tenant Interview and Management Review Questions 

 

RD staff should request, and tenants should provide answers to the following questions on the FRM2000 

Supervisory Visit Tenant Interview: 

(02-24-05) SPECIAL PN 

Added (09-30-22) PN 569 

 
HB‐2‐3560

Attachment 6‐K

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 Does the management agent provide both the VAWA “Notice of Occupancy Rights” (Form HUD5380) and the “Certification of Domestic Violence” (Form HUD-5382) forms at the time of 

application, move-in and recertification? Yes or No 

 Are you aware of the rights and protections afforded to you under VAWA? Yes or No 

RD staff should request, and Borrowers should provide answers to the following questions on the FRM2000 

Supervisory Visit Management Review: 

 Are the Forms HUD-5380, “Notice of Occupancy Rights” and HUD-5382, “Certification of 

Domestic Violence” posted in a location(s) at the property where they are visible to tenants and 

prospective tenants? 

 Are all adult household members and applicants provided the VAWA “Notice of Occupancy Rights” 

(Form HUD-5380) and the “Certification of Domestic Violence” (Form HUD-5382) upon 

application, recertification, move-in/rejection, and move-out? 

S. Developing Partnerships with Victim Service Providers 

Emergency Transfer Plans should be developed in consultation and collaboration with other public and 

private organizations and entities that are dedicated to helping victims of domestic violence, dating violence, 

sexual assault, or stalking. Borrower efforts to strengthen access to supportive services for victims of 

domestic violence, dating violence, sexual assault, or stalking should be ongoing. Some Borrowers have 

proactively developed valuable relationships with domestic violence victim advocates, legal aid services, and 

law enforcement agencies to ensure that victims are getting the supportive services they need. 

Borrowers have an obligation to reach out to other owners in their jurisdiction and strive to establish a 

relationship in which they, whether private market or government-assisted, help one another to the extent 

feasible address emergency domestic violence, dating violence, sexual assault, or stalking situations. 

Emergency Transfer Plans must be designed to facilitate a transfer as quickly as possible. Therefore, RD 

recommends including reference to such other resources in the plan. 

Management Agents should share their best practices in developing a strong domestic violence, dating 

violence, sexual assault, or stalking education and service program. 

Such practices may include: 

 Participating in regular domestic violence working groups with domestic violence victim advocates, 

legal aid services, and law enforcement agencies; 

 Inviting domestic violence victim advocates to speak to resident groups and property management 

staff; 

 Providing easy-to-access and easy-to-understand information pamphlets; 

 Facilitating counseling and support groups through available community space; 

____________________________________________________________________________________ 

 
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 Working with domestic violence victim advocates to make policy changes to better protect victims; 

and 

 Establishing applicant admission preferences to prioritize victims for housing assistance. 

These efforts can also help Borrowers identify local domestic violence experts for participation in grievance 

hearings. 

T. Additional Resources for Victims 

The U.S. Department of Justice’s (DOJ) Office on Violence Against Women (OVW) maintains several 

resources and hotline numbers that may be of assistance to communities seeking contact information for 

national advocacy groups for victims or to learn more about domestic violence, dating violence, sexual 

assault, or stalking. This information is available at: https://www.justice.gov/ovw/areas-focus. 

DOJ Office of Victims of Crime - State Map of Services and Information: http://www.ovc.gov/map.html 

DOJ Office of Victims of Crime - Help for Crime Victims Helpline: http://www.ovc.gov/help/tollfree.html

The OVW Rural Sexual Assault, Domestic Violence, Dating Violence, and Stalking Program (Rural Program) 

seeks to enhance the safety of rural victims of sexual assault, domestic violence, dating violence, and stalking. 

The Rural Program supports projects uniquely designed to address and prevent these crimes in rural areas by 

providing grants to a subgroup of domestic violence and sexual assault programs to support projects designed to 

address and prevent crimes in rural areas. Eligible applicants are limited to states, Indian tribes, territories, local 

governments, and nonprofit (public or private) entities, including tribal nonprofit organizations. DOJ Office of 

Victims of Crime - Awards by state: https://ovc.ojp.gov/states

Once posted, the solicitation to apply for this program can be found on OVW’s website here: 

https://www.justice.gov/ovw/open-solicitations. For more information, contact OVW.rural@usdoj.gov or (202)-

307-6026. 

Other programs and phone numbers for advocacy organizations that assist victims of domestic violence, dating 

violence, sexual assault, and stalking on an emergency basis that may be contacted for assistance are: 

 The National Domestic Violence Hotline, 1-800-799-SAFE (7233) or (TTY) 1-800-787-3224 for immediate 

assistance. 

 The National Victim of Crimes Hotline, 1-855-4-VICTIM (855-484-2846) or help-for-crime-victims-tollfree-helplines-1.pdf (victimsofcrime.org)

 Domestic Violence Help for Women 

o The Office of Women’s Health (OWH), 1-800-994-9662, or

https://www.womenshealth.gov/relationships-and-safety/get-help

o Women’s Law (Shelters for women, legal assistance, courthouse locations where you can file for a 

protection order, sheriff departments) 

https://www.womenslaw.org/find-help 

(02-24-05) SPECIAL PN 

Added (09-30-22) PN 569 

 
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Attachment 6‐K

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 Sexual assault victim service providers 

o National Sexual Violence Resource Center Directory of Advocacy Organizations: 

https://www.nsvrc.org/organizations

o National Sexual Assault Hotline, 1-800-656-HOPE (4673) or https://ohl.rainn.org/online

 Teen and youth advocacy and support 

o The National Teen Dating Abuse Helpline, 1-866-331-9474 or (TTY) 1-866-331-8453 or 

https://youth.gov/federal-links/national-teen-dating-abuse-helpline

 Culturally specific victim service organizations 

o Ujima, Inc.: National Center on Violence Against Women in the Black Community: 

https://www.ujimacommunity.org 

o Asian Pacific Institute on Gender Based Violence: https://www.api-gbv.org 

o Esperanza United: Knowledge base - Esperanza United 

o National Organization of Sisters of Color Ending Sexual Assault: www.sisterslead.org

o Tribal Resource Tool: Resources for Survivors of Crime and Abuse: https://tribalresourcetool.org/ 

 Human trafficking victim service providers 

o Trafficking Victims Assistance Program: https://www.acf.hhs.gov/otip/map/trafficking-victimassistance-program

o National Human Trafficking Hotline: National Human Trafficking Hotline | The Administration for 

Children and Families (hhs.gov)

o Office for Victims of Crime (OVC) grantees: https://ovc.ojp.gov/matrix-ovc-funded-humantrafficking-services-grantees-and-task-forces

o National Human Trafficking Program Grantees: https://www.acf.hhs.gov/otip/map/domestic-victimshuman-trafficking-program-grantees

_______________________________________________________________________________________ 

 
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Exhibit A 

USDA Rural Development Emergency Transfer Plan 

The Violence Against Women Reauthorization Act of 2013 

IMPORTANT: Strict confidentiality measures must be practiced to protect the victim’s location. 

In accordance with the Violence Against Women Reauthorization Act of 2013 (hereafter, “the 

Act”), tenants living in USDA Rural Development-financed Multifamily Housing properties who 

are – or fear becoming – victims of domestic violence, dating violence, sexual assault, or 

stalking, shall be permitted by the owner or manager to request a transfer to a safe dwelling 

unit in another RD-financed Multifamily Housing property, provided: 

1. The tenant reasonably believes they or a household member will suffer harm from 

further violence if they remain in the same dwelling. 

2. If the tenant is a victim of sexual assault, the alleged assault occurred during a 90-day 

period preceding the tenant’s request for transfer. 

Transfers under this plan are subject to the availability of other Rural Development Multifamily 

Housing units. 

Eligible tenants who request an emergency transfer under the Rural Development Emergency 

Transfer Plan can receive a Letter of Priority Entitlement (LOPE) from Rural Development, as 

domestic or dating violence, sexual assault, and stalking are considered situations beyond the 

tenant’s control. See 7 CFR 3560.159(c) Other Terminations, available HERE. 

A LOPE entitles victims to receive priority for available housing at any Rural Developmentfinanced Multifamily Housing complex or Off-Farm Labor Housing property anywhere in the 

United States, provided the victim otherwise meets normal Tenant Eligibility criteria under 7 

CFR 3560.152, available HERE or 7 CFR 3560.576(b) Eligible Households, available HERE. 

The LOPE also can help the victim get preference in a U.S. Department of Housing and Urban 

Development (HUD) property if permitted by the housing complex’s occupancy policy. 

In instances in which there is no other adult co-tenant named on the lease aside from the 

victim, and the lease has not been bifurcated*, tenants who receive a LOPE and are 

beneficiaries of Rental Assistance (RA) may transfer the assistance to another Rural 

Development property. (*The purpose of a lease bifurcation is to remove a perpetrator from a 

unit without evicting or otherwise penalizing a victim who wishes to remain in the unit.) 

(02-24-05) SPECIAL PN 

Added (09-30-22) PN 569 

 
HB‐2‐3560

Attachment 6‐K

Page 38 of 42

Tenants should contact the property manager to request an emergency transfer. The property 

manager may choose to request written documentation of the incident from the victim. If the 

property manager requires the victim to provide documentation to certify a threat or an incident 

of domestic violence, dating violence, sexual assault, or stalking, the property manager’s 

request to the victim must be given in writing. When documentation of the incident from the 

property manager is requested, the victim may submit one of the following: 

 Form HUD 5383 – Emergency Transfer Request document 

 Form HUD 5382 – Certification of Domestic Violence, Dating Violence, Sexual Assault, 

or Stalking 

 An alternate form of acceptable documentation 

In situations in which the victim cannot contact the property manager due to safety concerns, 

the victim or the victim’s service provider may contact Rural Development directly to request a 

LOPE. 

The property manager shall immediately contact their Rural Development Multifamily Housing 

servicing office, who shall provide a LOPE indicating – at a minimum – that the tenant may 

receive priority placement in an available Rural Development unit without regard to income, 

and within the standard timeframes for using a LOPE. In certain instances, Rural Development 

may reissue a LOPE in order to maintain priority placement for the tenant. 

_______________________________________________________________________________________ 

 
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RURAL DEVELOPMENT 

[Insert location here] 

DATE: [Insert today’s date] 

SUBJECT:    LETTER OF PRIORITY ENTITLEMENT (LOPE) FOR:

[Insert tenant (and, if applicable, family) name(s)] 

[Insert tenant address] 

Dear Tenant: 

As a victim of domestic violence, dating violence, sexual assault, or stalking as defined by the 

Violence Against Women Act of 2013, you are eligible for priority placement at any Rural 

Development-financed Multifamily Housing complex or Off-Farm Labor Housing property 

nationwide that has available units you are eligible to occupy. This Letter of Priority Entitlement 

(LOPE) also may give you preference in non-Rural Development-financed properties and 

rental programs served by the U.S. Department of Housing and Urban Development (HUD) as 

their occupancy policies allow. Please present this LOPE to your new landlord. 

Dear Rural Development or HUD Property Owners: 

In accordance with the Violence Against Women Act of 2013, the above-named tenant and, if 

listed, their family, is eligible for this Letter of Priority Entitlement (LOPE). 

In accordance with Regulation 7 CFR 3560.11 (see: LOPE Definition), the above-named 

tenant must be given priority placement on all waiting list(s) associated with your properties. 

The only other tenants who can receive priority over the above-named tenant are those with 

similar LOPEs already on your waiting list(s), or tenants who require specific design 

accommodations in accordance with the Americans with Disabilities Act. 

The LOPE must be used within 120 days of its issue date. The applicant is to remain in priority 

position on your waiting list(s) until they find an apartment. After 120 days, the tenant may 

continue to be placed on waiting lists for apartments for which they are eligible, but without 

priority. In certain instances, Rural Development may reissue a LOPE in order to maintain a 

tenant’s priority placement. 

NOTE: This priority places the above-named tenant, and, if applicable, their family, at the top 

of all waiting lists at your properties. The priority exceptions noted above do not depend on 

income and apartment size. To accept a LOPE, your property must have at least one 

apartment the tenant is eligible to occupy. If the tenant occupies an apartment for which they 

are ineligible, the lease must state that the tenant will move to the first appropriate apartment 

for which they are eligible. 

(02-24-05) SPECIAL PN 

Added (09-30-22) PN 569 

 
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In instances in which there is no other adult co-tenant named on the lease aside from the 

victim, and the lease has not been bifurcated*, tenants who receive a LOPE and are 

beneficiaries of Rental 

Assistance (RA) may transfer the assistance to another Rural Development property. (*The 

purpose of a lease bifurcation is to remove a perpetrator from a unit without evicting or 

otherwise penalizing a victim who wishes to remain in the unit.) 

If the tenant’s current security deposit is returnable but has not been released to the tenant by 

the new property’s move-in date, it should be assigned directly to you by the original property 

as long as permitted by state law. Otherwise, you will have to wait to receive the security 

deposit until it is returned to the tenant. 

Tenant Data: 

Composition of family: ___________________________________________ 

Type of unit required (circle one or more): Tenant only / Family / Elderly / Disabled 

Unit-size eligibility: ______________________________________________ 

Last verified income: __________________________ as of ______________ 

RA or Section 8 voucher: __________________________________________ 

Current security deposit: _________________________________________ 

If you have any questions, please contact your Multifamily Housing Servicing Office at the 

address below: 

[RD Servicing Office] 

[Address] 

[Phone number] 

[RD Servicing Official signature and title] 

_______________________________________________________________________________________ 

   
HB‐2‐3560

Attachment 6‐K

Page 41 of 42

Exhibit B

USDA Rural Development – Multi‐Family Housing Program

Violence Against Women Reauthorization Act of 2013

Sample Lease Addendum

TENANT LANDLORD UNIT NO. & ADDRESS

   

Purpose of the Addendum 

The lease for the above-referenced unit is being amended to include Rural Development’s policies adopting 

the provisions of the Violence Against Women and Justice Department Reauthorization Act of 2013 

(VAWA). 

Conflicts with Other Provisions of the Lease 

In case of any conflict between the provisions of this Addendum and other sections of the Lease, the 

provisions of this Addendum shall prevail. 

 

Term of the Lease Addendum 

This Lease Addendum shall continue to be in effect through the term of the Lease, any lease renewals and 

subsequent month-to-month tenancies until the Lease or tenancy is terminated. 

VAWA Protections 

1. The Violence Against Women Act (“VAWA”) and the protections in this Lease Addendum are gender 

neutral. An individual does not have to be a woman to access the protections. 

2. The Tenant acknowledges receipt of a printed copy of the Form HUD 5380 Notice of Occupancy Rights 

and a Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking under the Violence 

Against Women Act (“VAWA”) and a copy of Form HUD 5382 Certification of Domestic Violence, Dating 

Violence or Stalking. Landlords must distribute a printed copy of these documents to each adult household 

member. (Landlords – See HUD’s VAWA Resources website to print out copies for the tenant in the 

appropriate language.) 

3. Tenant may not be denied assistance, terminated from participation in, or evicted from housing on the 

basis of or as a direct result of the fact that the tenant or a member of their household is or has been a victim 

of domestic violence, dating violence, sexual assault or stalking if such tenant family is otherwise qualified 

for admission, assistance, participation or occupancy. 

4. The Landlord may not consider criminal activity directly relating to incidents of domestic violence, dating 

violence, sexual assault or stalking as violations of the lease or other “good cause” for termination of 

assistance, tenancy or occupancy rights of the victim of abuse. 

(02-24-05) SPECIAL PN 

Added (09-30-22) PN 569 

 
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5. The victim of domestic violence, dating violence, sexual assault or stalking may request protection under 

VAWA. The Landlord may make a written request for documentation that the individual is a victim of 

domestic violence, dating violence, sexual assault or stalking. This can include a completed HUD 5382 

Certification of Domestic Violence, Dating Violence or Stalking, or alternate documentation as noted on the 

Certification such as a court order or letter from a lawyer or social worker. The victim, a family member or a 

third-party on their behalf may submit the written proof or certification. Failure to provide the documentation 

within 14 business days of request, or an agreed upon extension date, may result in eviction. 

6. The Landlord may take action to bifurcate the lease to remove or evict the person who committed the 

domestic violence, dating violence, sexual assault or stalking. The victim and other household members will 

be permitted to remain in the unit, subject to ongoing eligibility and occupancy requirements. 

7. The victim of domestic violence, dating violence, sexual assault or stalking may request a transfer to find a 

different unit that is a safe unit. The Landlord may require a completed Form HUD 5383 Emergency 

Transfer Request form. The Landlord will work with the victim to facilitate a transfer in compliance with 

their Emergency Transfer Plan even if that transfer is to a unit outside of the Borrower’s control. 

8. If Tenant or a member of their family in the household is a victim of domestic violence, dating violence, 

sexual assault or stalking in the unit or building, the Tenant may terminate the lease without penalty. 

9. Any information submitted to the Landlord will be kept strictly confidential and will not be disclosed to 

any other individual or entity except if disclosure is consented to by the victim, is required for an eviction or 

is otherwise required by law. 

ACKNOWLEDGEMENT: 

_________________________________________ __________________ 

Tenant (head of household) Date 

_________________________________________   __________________  

Tenant Date 

_________________________________________   __________________

Landlord Date

_______________________________________________________________________________________