HUD Handbook 4350.3 § 6-14
Applicability (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
Operative Text
A. Unless otherwise indicated, all of the applicable properties identified in Figure 1-1
are subject to the information presented in this section.
B. If the security deposit now held by the owner met the HUD rules in effect at the
time the deposit was collected:
1. An owner need not adjust the amount of the deposit to comply with
current rules; and
2. The HUD Field Office or Contract Administrator may not reduce the
Section 8 special claims because the deposit does not meet the current
rules.HUD Handbook 4350.3 REV-1 CHG-4 § 6-14 establishes that the security deposit rules in this section apply broadly to the property types listed in Figure 1-1, unless a specific exception is noted. Importantly, the provision includes a grandfather protection: if a security deposit was collected in compliance with the HUD rules that were in effect at the time of collection, that deposit remains valid under those older rules. Neither the owner nor the HUD Field Office or Contract Administrator is required to treat that deposit as deficient simply because current rules differ.
Plain English — not legal advice.
Under HUD Handbook 4350.3 REV-1 CHG-4 § 6-14, operators of covered properties generally maintain documentation showing that any security deposit collected was compliant with the HUD rules in effect at the time it was collected. When that documentation is in order, compliant operators do not face an obligation to retroactively adjust deposit amounts to match later rule changes. Keeping clear records of the applicable rules at the time each deposit was taken is a standard practice that supports this grandfathered status.
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 § 6-14 applies to tenants living in the covered property types identified in Figure 1-1 of the HUD Handbook. The provision clarifies that a security deposit collected under older HUD rules is not automatically improper, which can be relevant context if a question arises about the size or handling of a deposit. Tenants who have concerns about their security deposit in a HUD-assisted property may consider contacting the U.S. Department of Housing and Urban Development directly or reaching out to a local tenant-rights organization for general information about their 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 25, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.