HUD Handbook 4350.3 § 2-47
Owner and Tenant Responsibilities When Tenant Modifies Unit in (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
Operative Text
Accordance with the Fair Housing Act
A. Owners must permit the modifications if they are reasonable and may be
necessary to afford a person with a disability full enjoyment of the premises.
B. Owners may, where it is reasonable to do so, impose the condition that when
vacating the unit, the tenant will restore the interior of the premises to the state
that existed before the modification, reasonable wear and tear excepted. The
owner should not require the tenant to restore the unit to the state that existed
before the modification if the modification benefits the property or is needed by
another tenant.
Example – Owners Requiring Tenants to Restore Units to Their
Original Condition
For marketing reasons or operational considerations, the owner may
require the tenant to raise cabinets that have been lowered or replace
roll-under lavatories with the previously existing vanity/sink combination.
C. Owners may not require any increased security deposits for persons with
disabilities. However, where it is necessary in order to ensure that funds will be
available to pay for restorations at the end of the tenancy, the Fair Housing Act
allows the owner to negotiate as part of a restoration agreement, a provision
requiring that the tenant pay into an interest bearing escrow account, over a
reasonable period, a reasonable amount of money not to exceed the cost of the
restorations. The interest of such an account must accrue to the benefit of the
tenant.
D. Owners may condition permission for a modification on the tenant’s providing
reasonable assurances that the work will be done in a workmanlike manner and
that any required building permits will be obtained.
Section 4: Housing Discrimination Complaints and Compliance ReviewsHUD Handbook 4350.3 REV-1 CHG-4 § 2-47 establishes a framework governing unit modifications made by tenants with disabilities under the Fair Housing Act. Owners of covered housing must allow reasonable modifications that are necessary for a person with a disability to fully enjoy their home, but may require the tenant to restore the unit to its pre-modification condition upon move-out — unless the modification benefits the property or would serve another tenant. Owners cannot demand extra security deposits because of a disability, though they may negotiate an interest-bearing escrow arrangement to cover restoration costs, with any accrued interest going to the tenant. Permission for modifications may also be conditioned on assurances that the work will be done properly and that required permits will be obtained.
Plain English — not legal advice.
Under HUD Handbook 4350.3 REV-1 CHG-4 § 2-47, compliant operators generally document modification requests, evaluate whether they are reasonable and disability-related, and grant permission when those criteria are met. When a restoration requirement is appropriate, operators typically include it in a written restoration agreement rather than increasing the security deposit — and if an escrow arrangement is used to fund future restorations, the account must be interest-bearing with interest accruing to the tenant. Operators also commonly require written assurances that modifications will be completed in a workmanlike manner and that all applicable building permits will be secured before work begins.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
HUD Handbook 4350.3 REV-1 CHG-4 § 2-47 gives tenants with disabilities the right to make reasonable modifications necessary for full enjoyment of their unit, and prohibits owners from charging an increased security deposit on the basis of disability. If a restoration agreement is part of the permission, any escrow funds set aside for that purpose must earn interest that belongs to the tenant, and restoration cannot be required for modifications that benefit the property or are needed by another resident. Tenants who believe these rights have been violated may consider filing a housing discrimination complaint with the U.S. Department of Housing and Urban Development or reaching out to a local tenant-rights organization for general information about available options.
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 30, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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