HB-2-3560 

 Appendix 4 

APPENDIX 4 

HANDBOOK LETTERS REFERENCED IN THIS HANDBOOK 

Handbook Letter 201 (3560), Letter of Priority Entitlement (LOPE)

Handbook Letter 202 (3560), Notification Letter for Supervisory Visit 

Handbook Letter 203 (3560) Notice To Tenants (Members) Of Proposed Rent (Occupancy 

Charge) And Utility Allowance Change 

Handbook Letter 204 (3560) Notice of Approved Rent (Occupancy Charge) and Utility 

Allowance Change 

Handbook Letter 205 (3560) Letter to Borrowers or Management Agent 

Handbook Letter 206 (3560) Letter to Tenants 

Handbook Letter 207 (3560) Letter to Notify Borrower or Management Agent of a Potential 

Wage or Benefit Discrepancy Which Requires Review 

Handbook Letter 208 (3560) Request for Renewal Rental Assistance (RA) Allocation Change 

(02-24-05) SPECIAL PN 

Revised (10-05-07) PN 413 
HB-2-3560

Appendix 4

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HB-2-3560 

 Appendix 4 

 Handbook Letter 201 (3560) 

REFERENCE: HB-2-3560 Chapter 6 

PURPOSE: Letter of Priority Entitlement (LOPE) 

RURAL DEVELOPMENT 

[LOCATION] 

DATE: [insert today’s date] 

SUBJECT: LETTER OF PRIORITY ENTITLEMENT (LOPE) FOR: 

[insert Name of Tenant/Family] 

[insert Tenant/Family's Address] 

Dear Tenant: 

[Suggested language for prepayment] 

The Owner(s) of [name, address to include city, state and zip code of prepaying property] has 

been granted permission to pay off their Rural Development Loan on [name of property]. This 

means that you are entitled to priority placement on the waiting list of any Rural Development 

Section 515 Rural Rental Housing property, should you be displaced due to of rent increases, as 

a result this prepayment. This letter may also serve to give you preference in non-Rural 

Development properties and rental programs served by the Department of Housing and Urban 

Development (HUD) if their occupancy policy allows. Please present this Letter of Priority 

Entitlement to your new landlord. 

 [Or] 

As a result of the [insert description of natural disaster, uninhabitable situation] for the above 

reference property you are entitled to priority for placement on waiting lists of any 515 rural 

rental housing property, that has units for which you are eligible to occupy. There is no 

geographic limit on this entitlement. This letter may also serve to give you preference in nonRural Development properties and rental programs served by the Department of Housing and 

Urban Development (HUD) if their occupancy policy allows. Please present this Letter of 

Priority Entitlement to your new landlord. 

Dear Rural Development or Housing and Urban Development (HUD) Property Owners: 

(02-24-05) SPECIAL PN 

Revised (03-15-06) PN 396
HB-2-3560

Appendix 4

The tenant named above is currently living in the Rural Development 515 multifamily housing 

property for which [insert reason for LOPE letter i.e., authorized prepayment or uninhabitable 

or natural disaster]. In accordance with 7 CFR 3560.11, this letter must be used within 120 

days from the above date to give this tenant/family priority placement on your waiting list(s). 

The only other tenants who may receive priority over this tenant/family are those who have 

already entered your waiting list with a letter similar to this one or handicapped tenants who need 

the particular design features of a vacant apartment. The above named tenant/family is to remain 

in this position on your waiting list until they receive an apartment or the list is purged in 

accordance with a Rural Development-approved policy. After 120 days, they may continue to be 

placed on waiting lists for apartments for which they are eligible, but without priority.

NOTE: This priority places the above-named tenant/family at the top of all waiting lists in your 

properties, regardless of other priorities (such as income) and eligibility's for apartment size so 

long as your property has at least one apartment, presently occupied or not, for which this 

tenant/family is eligible. If this tenant/family occupies an apartment for which size or type they 

are not eligible for, the lease must read that this tenant/family will move to the first appropriate 

apartment available. 

If this tenant/family is receiving Rental Assistance (RA) at the prepaying property, they will 

continue to receive RA at your property if it is a property operating under Plan II of the Section 

515 program. If you do not have a unit of unused RA to assign to this tenant/family, you will be 

allocated one unit for this purpose. 

If the current security deposit is returnable to the tenant/family, but has not been released to the 

tenant/family by the move-in date, it should be assigned directly to you by the prepaying 

property if allowed by the laws of the State. Otherwise, you may have to wait to receive the 

security deposit until it is returned to this tenant/family. 

Tenant Data: 

Composition of Family _____________________________________ 

Tenant/Family/Elderly/Handicapped___________________________ 

Unit-Size Eligibility_____________________________________________ 

Last Verified Income _________________________ as of ______________ 

RA: __________________________________________________________ 

Section 8 Voucher: ______________________________________________ 

Current Security Deposit: _________________________________________ 

If you have any questions, please contact the Servicing Office at the address below: 

[RD Servicing Official signature and title] 
HB-2-3560 

 Appendix 4 

Handbook Letter 202 (3560) 

REFERENCE: HB-2-3560 Chapter 9 

PURPOSE: Notification Letter for Supervisory Visit 

RURAL DEVELOPMENT 

[LOCATION] 

Date: [insert today’s date] 

[Name of borrower] 

[Address of borrower] 

Dear [insert borrower’s last name(s), (Mr., Ms., Mrs.)] 

Rural Development Servicing Office staff will be conducting a supervisory visit of [name of 

rural rental or cooperative project] located in the town of [city]. 

Your project review is scheduled for [date of visit], at [time] in the project [office or manager’s 

office]. We would like to meet with the project [management agent, owner, board of directors or 

board president, bookkeeper, resident manager, etc.] at the time shown. 

Please have the following records available for review: 

• All project account records including bookkeeper records and others pertaining to 

the project, such as: 

◊ General operating account 

◊ Tax and insurance escrow accounts 

◊ Reserve account 

◊ Security deposit or membership fee account 

◊ Patronage capital account (if applicable) 

◊ Management reserve account, (if applicable) 

◊ Checking account 

◊ Savings account 

• The individual tenant or member files 

• Waiting lists 

(02-24-05) SPECIAL PN 
HB-2-3560

Appendix 4

◊ Applications of those on the waiting lists 

◊ Applications of those determined ineligible for occupancy 

• Management plan and management agreement/certification 

• Evidence of the effort made in the last 12 months to meet the objectives in your 

Affirmative Fair Housing Marketing Plan. 

• A copy of the tenant lease or occupancy agreement used, with written evidence of 

your attorney’s approval, Rural Development’s approval, and HUD’s approval (if 

HUD Section 8 is utilized). 

• The mailing address for the project 

If you have any questions, please contact this office. 

Sincerely, 

[Rural Development servicing official’s signature and title] 

ENCLOSURE 
HB-2-3560 

 Appendix 4 

Handbook Letter 203 (3560) 

REFERENCE: HB-2-3560 Chapter 4 

PURPOSE: Notice to Tenants (Members) of Proposed Rent (Occupancy Charge) and 

Utility Allowance Change 

NOTICE TO TENANTS (MEMBERS) OF PROPOSED RENT (OCCUPANCY CHARGE) 

AND UTILITY ALLOWANCE CHANGE 

_________________ 

Date Posted 

You as a tenant (member) are hereby notified that, subject to Rural Development approval, rents 

(occupancy charge) and utility allowances will be changed effective ___________ (at least 60 

days from this posting or other timeframe if required by State law) 

__________________________________________________________ (Project Owner Name) 

has filed with Rural Development, United States Department of Agriculture, a request for 

approval of a change in the monthly rent (occupancy charge) rates and/or utility allowances of 

the (Name of apartment complex) for the following reasons: 

1. 

2. 

3. 

4. 

Planned rent (occupancy charge) changes are as follows: 

Unit Size 

Present Rent 

(Occupancy Charge) 

Proposed Rent 

(Occupancy Charge) 

Amount 

Changed 

Basic Note Rate Basic Note 

Rate 

Efficiency

1-Bedroom 

2-Bedroom 

3-Bedroom 

4-Bedroom 

5-Bedroom 

(02-24-05) SPECIAL PN 

Revised (03-15-06) PN 396
HB-2-3560

Appendix 4

Page 2 

Planned utility allowance changes are as follows: 

Unit Size 

Present Utility 

Allowance 

Proposed Utility 

Allowance 

Amount 

Changed 

Efficiency

1-Bedroom 

2-Bedroom 

3-Bedroom 

4-Bedroom 

5-Bedroom 

(Use where applicable such as when only basic or note rate rents and/or utility allowances are 

changing and the tenant is receiving rental assistance) Since you receive subsidy, your 

contribution for rent (occupancy charge) and utilities will not be changed so long as your income 

and household composition remain unchanged. 

All materials justifying the proposed changes have been reviewed by Rural Development and 

will be made available to you and other tenants (members) to inspect and copy at (insert 

location): __________________________________________________________________ 

during the hours of (insert date(s) and time(s)): _____________________________________. 

You may submit comments or objections in writing to the Rural Development Servicing Official 

during the 20-day period immediately following the posting of this notice. Comments or 

objections should include reasons or information you feel should be considered by the Rural 

Development Servicing Official. Your comments or objections must be filed prior to with the 

Rural Development Servicing Official, _________________________________________, at the 

Servicing Office located at ________________________________________________. 

These comments will be reviewed by the Rural Development Servicing Official and forwarded 

to the Rural Development approval official who will decide if the change(s) should be approved. 

Each tenant (member) will be notified in writing of the Rural Development decision to approve 

or deny the change. The approved rents and utility allowances will then be effective upon the 

effective date given above. If the approved change cannot be made effective by such date, an 

additional notice will be posted and the tenants (members) will be notified in writing that new 

rents (occupancy charges) and utility allowances will be effective at the next rent (occupancy 

charge) due date following the additional notice and the Rural Development approval. 

By ___________________________ 

Borrower/Borrower's Representative 
HB-2-3560 

 Appendix 4 

Handbook Letter 204 (3560) 

REFERENCE: HB-2-3560 Chapter 4 and 7 

PURPOSE: Notice to Tenants of Rent Change 

NOTICE OF APPROVED RENT (OCCUPANCY CHARGE) AND UTILITY ALLOWANCE 

CHANGE 

Dear: 

You are hereby notified that Rural Development has reviewed the request for a change in shelter 

costs for the _______ project(s), and considered all justifications provided by project 

management [and comments provided by tenants]. The Rural Development has approved the 

following rent (occupancy charge) and/or utility allowance rates listed below. The changes for all 

units will become effective on _________, 20__ or later effective date in accordance with state 

or local laws. The change is needed for the following reasons: 

(Insert Reasons for Approval) 

The approved changes are as follows: 

Unit Size 

Present Rent 

(Occupancy Charge) 

Approved Rent 

(Occupancy Charge) 

Basic Note Rate Basic Note 

Rate 

Efficiency

1-Bedroom 

2-Bedroom 

3-Bedroom 

4-Bedroom 

5-Bedroom 

The approved utility allowance changes are as follows: 

Unit Size 

Present Utility 

Allowance 

Approved Utility 

Allowance 

Efficiency

1-Bedroom 

2-Bedroom 

3-Bedroom 

4-Bedroom 

5-Bedroom 

(02-24-05) SPECIAL PN 

Added (03-15-06) PN 396 
HB-2-3560

Appendix 4

Page 2 

Should you have any questions or concerns, you may contact Rural Development. The Rural 

Development Servicing Office address is: 

(Use the following required and/or optional paragraphs where applicable). 

*You must notify the tenants (members) of Rural Development's approval of the rent (occupancy 

charge) and utility allowance changes by posting this letter in the same manner as the "NOTICE 

TO TENANTS (MEMBERS) OR PROPOSED RENT (OCCUPANCY CHARGE) AND 

UTILITY ALLOWANCE CHANGE." This notification must be posted in a conspicuous place 

and cannot be substituted for the usual written notice to each individual tenant (member). 

*This approval does not authorize you to violate the terms of any lease (occupancy agreement) 

you currently have with your tenants (members). 

**For those tenants (members) receiving rental assistance (RA), their costs for rent (occupancy 

charge) and utilities will continue to be based on the higher of 30 percent of their adjusted 

monthly income or 10 percent of gross monthly income or if the household is receiving 

payments for public assistance from a public agency, the portion of such payments which is 

specifically designated by that agency to meet the household's shelter cost. If tenants are 

receiving Housing and Urban Development (HUD) Section 8 subsidy assistance, their costs for 

rent and utilities will be determined by the current HUD formula. 

*You may file an appeal regarding the rate and utility allowance change as approved. An appeal 

must be received in the Regional Office no later than 30 calendar days after receipt of the 

adverse decision. The appeal should state what agency decision is being appealed and should 

include, if possible, a copy of the adverse decision and a brief statement of why the decision is 

wrong. A copy of the appeal request should be sent to the agency. 

*You must inform the tenants (members) of their right to request an explanation of the rate and 

utility allowance change approval decision within 45 days of the date of this notice by writing to 

(insert the name and address of next higher Rural Development approval official). All tenants 

(members) are required to pay the changed amount of rent (occupancy charge) as indicated in the 

notice of approval. 

*Any tenant who does not wish to pay the Rural Development approved rent changes may give 

the owner a 30-day notice that they will vacate. The tenant will suffer no penalty as a result of 

this decision to vacate, and will not be required to pay the changed rent. However, if the tenant 

later decides to remain in the unit, the tenant will be required to pay the changed rent from the 

effective date of the changed rent. 

Sincerely, 

_______________________ 

Rural Development Approving Official 

*Required 

**Optional, as applicable 
HB-2-3560 

 Appendix 4 

Handbook Letter 205 (3560) 

REFERENCE: HB-2-3560 Chapter 9 

PURPOSE: Letter to Borrowers or Management Agents 

RURAL DEVELOPMENT 

[LOCATION] 

Date: [insert today’s date] 

[Name of borrower] 

[Address of borrower] 

Dear[Insert Borrower/Management Agent Name] 

[Insert Address] 

Dear [Insert Name]:

Rural Development is implementing a wage and benefit matching system. The goal of the 

system is to find or prevent fraud, waste, and abuse of Federal benefits. We hope to achieve this 

goal through early detection of inaccurate information supplied on Tenant Certification Forms. 

Rural Development is proud of its multi-family housing programs. Properties financed are 

generally well maintained and managed. Unfortunately, there are those who attempt to "beat the 

system" by providing inaccurate information to qualify for program benefits. 

Beginning on [Insert appropriate date], Rural Development will have the capability to review 

wage and benefit information from the State Department of Labor (SDOL) for comparison with 

information provided on the most current Tenant Certification (Form RD 3560-8) to identify 

apparent inaccuracies. The Agency will be using this information to resolve discrepancies. 

Should a review of SDOL data reveal a substantial discrepancy, you will have to contact the 

tenant household to solicit added information to explain any discrepancies, abuses, or to correct 

any errors. The goal is not to harass tenants but merely to resolve misunderstandings and errors 

as early as possible. The Agency's program will not usually look at past tenant certifications or

recover any improper subsidy which may have been delivered in years past unless there is 

evidence of substantial abuse and the amount of the past unauthorized assistance exceeds $1,000. 

Upon receipt of this notice, you should take steps to inform tenants of the wage and benefit 

matching initiative. You may use Handbook Letter 206 (3560) in Appendix 4 of HB-2-3560 as a 

guide in preparing your own tenant notification. This tenant notification must be sent within 30 

days from the date of this letter and a copy of this notice forwarded to this office.

(02-24-05) SPECIAL PN

Revised (03-15-06) PN 396
HB-2-3560

Appendix 4

Any tenants that are contacted regarding discrepancies with SDOL data should be advised of 

their right to file a grievance under 7 CFR 3560.160 if the matter is not satisfactorily resolved. 

No corrective action will be initiated unless the tenant concurs with it in writing, or the 

timeframe for filing a grievance has passed, or the information presented in the grievance has 

been considered and acted upon. 

The borrower or management agent will not be held responsible for repaying subsidies 

improperly received solely as a result of inaccurate information supplied by tenants. The 

borrower or management agent is expected to take corrective measures when inaccurate 

information is detected. The corrective measures should include prompt correction of inaccurate 

tenant certification forms, along with plans for tenant reimbursement for improperly delivered 

subsidy. 

The reimbursement may be collected by lump sum or in a monthly amount added to the tenant's 

rent to recoup the improper subsidy. 

If corrective measures cannot be achieved, tenant eviction proceedings should be promptly 

initiated. Tenants who falsify information and do not agree to corrective measures, or fail to 

uphold their subsidy repayment agreements, should be referred to the Agency along with 

supporting material. 

In summary, the Agency's wage and benefit matching program will assist in detecting 

inaccuracies and dishonest actions. At the same time, the program should ensure that borrowers 

and management agents suffer no penalties as a result of a dishonest action on the part of others. 

Sincerely, 

[Insert Name] 

[Insert Title of Signature Official] 
HB-2-3560 

 Appendix 4 

Handbook Letter 206 (3560) 

REFERENCE: HB-2-3560 Chapter 9 

PURPOSE: Letter to Tenants 

RURAL DEVELOPMENT 

[LOCATION] 

Date: [insert today’s date] 

[Name of borrower] 

[Address of borrower] 

Dear [Insert Tenant Name] 

[Insert Address] 

Dear [Insert Tenant Name]: 

Rural Development is implementing a wage and benefit matching system. The goal of this 

system is to reduce fraud, waste, and abuse in Federal programs. This notice is to inform you 

about the program and how it may affect you. 

Beginning on [Insert appropriate date], Rural Development will start receiving wage and benefit 

information from the State Department of Labor (SDOL). This information will be shared with 

the owners and management agents servicing your housing development. This information may 

then be compared against information provided on your Tenant Certification (Form RD 3560-8). 

Whenever differences are revealed, or result in the government providing unauthorized 

assistance in the form of rental subsidy, you may expect to be contacted for an explanation. 

Rural Development assumes Tenant Certifications are completed as accurately as possible. 

However, misunderstandings and honest errors do occur. Unfortunately, there are also those 

who will report wrong information in order to qualify for Federal benefits. The objective of the 

record’s check is to make sure that those needing assistance can receive assistance, while those 

who do not can be stopped and made to repay improperly received benefits. 

Rural Development will implement a wage and benefit matching system fairly. Therefore, 

whenever a new or renewed Tenant Certification is completed, it will be subject to verification 

by the Agency and the owner or management agent servicing your housing development. If a 

problem is suspected, you will be contacted and asked to provide an explanation. If 

disagreements arise, you will be informed of your right to file a grievance under 7 CFR 

3560.160. A copy of the grievance procedure is available from the owner or management agent 

servicing your housing development. 

____________________________________________________________________________________________ 

(02-24-05) SPECIAL PN 
HB-2-3560

Appendix 4

You can update or correct your existing Tenant Certification now until [Insert date 45 days from 

the date the notice was received by the borrower/management agent]. Of course, the updated 

and corrected Tenant Certification may result in changes to the Federal housing benefits your 

household is entitled to receive. However, initial changes that result in improper subsidies 

received by you would not be retroactive and subject to recapture if you disclose them during 

this grace period. Any discrepancies that result in receipt of improper assistance after this grace 

period ends will be subject to recapture. 

If you have any further questions, please contact [Insert contact information]. 

Sincerely, 

[Insert Name] 

[Insert Title of Signature Official] 
HB-2-3560 

 Appendix 4 

Handbook Letter 207 (3560) 

REFERENCE: HB-2-3560 Chapter 9 

PURPOSE: Letter to Notify Borrower or Management Agent of a Potential Wage or 

Benefit Discrepancy Which Requires Review 

RURAL DEVELOPMENT 

[LOCATION] 

Date: [insert today’s date] 

[Name of borrower] 

[Address of borrower] 

Dear [Insert Borrower/Management Name] 

[Insert Address] 

Dear [Insert Borrower/Management Name]: 

Upon review of the attached information, we conclude that there is a discrepancy between the 

wages or benefits reported on Form RD 3560-8, "Tenant Certification," and those reported to 

[Insert the appropriate state agency name]. 

Please review this information with the tenants and provide a written explanation as to your 

findings and what, if any, corrective arrangements (e.g., recovery of improper benefit 

agreements, evictions, legal proceedings, etc.) you are making. Please provide the explanation 

within 30 days of the date of this letter. 

Should recovery of improper payments be required, Agency regulations require collections be 

made by lump sum cash payment, or payment over a reasonable period of time (usually not to 

exceed 90 days). Whenever concerns cannot be mutually resolved, the tenants must be advised 

of the right to file a grievance under the provisions of 7 CFR 3560.160. 

If your explanation is not satisfactory to us, we will contact you to resolve the matter. The 

Agency will seek a mutually satisfactory resolution. Should this not be possible, you will be 

formally advised of our concerns and advised of any applicable appeal rights. 

If you have any questions concerning the subject matter, please contact the Servicing Office staff 

at [Insert Office Telephone Number]. 

Sincerely, 

____________________________________________________________________________________________ 

(02-24-05) SPECIAL PN 
HB-2-3560

Appendix 4

[Insert Name] 

[Insert Title of Signature Official] 

Attachments [Attachments may include appropriate information summarizing results from the 

State wage information collection agency and Agency records] 
HB-2-3560 

 Appendix 4 

Handbook Letter 208 (3560) 

REFERENCE: HB-2-3560 Chapter 9 

PURPOSE: Request for Renewal Rental Assistance (RA) Allocation Change 

 Date: 

 TO: Stephanie White 

 Director 

 Multi-Family Housing Portfolio Management Division 

 ATTN: Susie Turner 

 Fax No. 202-720-0302 

 SUBJECT: Request for Renewal Rental Assistance (RA) Allocation Change 

 No. of Units 

Borrower’s Name Case & Project No. RA Units Type 

____________________________ _________________ _________ ____ 

ACTION REQUESTED: (Check one) 

1. ___ Need to transfer ___ units from ____ quarter allocation to ____ quarter 

 allocation due to _____________________________________________ 

 ___________________________________________________________. 

2. ___ Need to increase/decrease ___ units for the ___ quarter allocation due to ____________________________________________________________ 

 ____________________________________________________________. 

3. ___ Need to transfer ____ units from O&E Code _____ to O&E Code ____. 

State Director 

State Office - _____________ 

===================================================================== 

[ ] APPROVED use of these funds authorized solely for the above-named borrower and may 

not be used for any other borrower. 

[ ] DISAPPROVED due to the following reasons: __________________________________ ____________________________________________________________________________. 

Please feel free to contact Susie Turner at (202) 720-1060 should you have any questions. 

________________________________ __________________________ 

Stephanie White DATE 

Director 

Multi-Family Housing Portfolio 

 Management Division 

____________________________________________________________________________________________ 

(02-24-05) SPECIAL PN 
HB-2-3560

Appendix 4 

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