24 C.F.R. § 983.259
§ 983.259 Security deposit: Amounts owed by tenant. (24 CFR Part 983)
Operative Text
(a) Security deposit permitted. The owner may collect a security deposit from the tenant. (b) Amount of security deposit. The PHA must prohibit the owner from charging assisted tenants security deposits in excess of private market practice, or in excess of amounts charged by the owner to unassisted tenants. (c) Use of security deposit. When the tenant moves out of the contract unit, the owner, subject to state and local law, may use the security deposit, including any interest on the deposit, in accordance with the lease, as reimbursement for any unpaid tenant rent, damages to the unit, or other amounts which the tenant owes under the lease. (d) Security deposit reimbursement to owner. The owner must give the tenant a written list of all items charged against the security deposit and the amount of each item. After deducting the amount used to reimburse the owner, the owner must promptly refund the full amount of the balance to the tenant. (e) Insufficiency of security deposit. If the security deposit is not sufficient to cover amounts the tenant owes under the lease, the owner may seek to collect the balance from the tenant. However, the PHA has no liability or responsibility for payment of any amount owed by the family to the owner.
Under 24 CFR Part 983 § 983.259, owners participating in project-based voucher programs are permitted to collect security deposits from assisted tenants, but those deposits cannot exceed what is charged in the private market or to unassisted tenants in the same property. When a tenancy ends, the owner may apply the deposit—including any accrued interest—toward unpaid rent, unit damages, or other lease-related charges, subject to applicable state and local law. The owner must provide the tenant with an itemized written list of any deductions and promptly return whatever balance remains. If the deposit falls short of what the tenant owes, the owner may pursue the difference directly from the tenant, while the housing authority bears no financial responsibility for that shortfall.
Plain English — not legal advice.
Operators subject to 24 CFR Part 983 § 983.259 generally ensure that any security deposit collected from an assisted tenant does not exceed the amount charged to unassisted tenants or prevailing private market rates—whichever is lower—as the PHA is required to enforce this cap. Upon a tenant's move-out, compliant owners document all deductions with a written itemized statement covering unpaid rent, damages, and other lease-authorized charges before applying deposit funds, consistent with state and local law. The remaining balance after deductions is returned to the tenant promptly, and any shortfall beyond the deposit amount may be pursued from the tenant directly, with no expectation of reimbursement from the PHA under this section.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 24 CFR Part 983 § 983.259, assisted tenants have a right to security deposit terms that are no less favorable than those applied to unassisted tenants in the same property, and the PHA is responsible for enforcing that standard. When a tenancy ends, tenants are entitled to a written itemized list of any amounts deducted from the deposit before the remaining balance is returned. Tenants who believe a deposit was improperly withheld or that the itemization was not provided may consider raising the issue with their local PHA, consulting a tenant-rights organization familiar with project-based voucher programs, or exploring remedies available under applicable state and local security deposit law.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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