HUD Handbook 4350.3 § 6-16

A.          When a tenant transfers to a new unit, an owner may:

                    1.     Transfer the security deposit; or

                    2.     Charge a new deposit and refund the deposit for the old unit.

        B.          If the deposit for the old unit is refunded, the owner must:

                    1.     Follow the requirements listed in paragraph 6-18 regarding the refunding
                           and use of the security deposit; and

                    2.     Establish a security deposit for the new unit based on the requirements
                           listed in paragraph 6-15 regarding the collection of a security deposit.

*Figure 6-7*: Amount of Security Deposit to Collect from Tenant

                     Program                                       Amount to Collect

   Section 8 New Construction with AHAP              One month’s total tenant payment
   executed before November 5, 1979
   Section 8 Substantial Rehabilitation with         One month’s total tenant payment
   AHAP executed before February 20, 1980
   Section 8 State Agency with AHAP executed         One month’s total tenant payment
   before February 29, 1980
   Section 8 New Construction with AHAP              The greater of:
   executed on or after November 5, 1979 [24         1) One month’s total tenant payment, or
   CFR 880.608]                                      2) $50
   Section 8 Substantial Rehabilitation with         The greater of:
   AHAP executed on or after February 20,            1) One month’s total tenant payment, or
   1980 [24 CFR 881.601]                             2) $50
   Section 8 State Agency with AHAP executed         The greater of:
   on or after February 29, 1980 [24 CFR             1) One month’s total tenant payment, or
   883.701]                                          2) $50
   RHS 515 with Section 8 [24 CFR 884.115]           Equal to one month’s total tenant payment
   Section 8 LMSA with HUD-insured or HUD-           An amount up to, but no greater than, one month’s
   held mortgages [24 CFR 886.116]                   total tenant payment
   Section 8 provided with the sale of a HUD-        The greater of:
   owned property (Property Disposition) [24         1) One month’s total tenant payment, or
   CFR 886.315]                                      2) $50
   Section 202/8 or Section 202 PAC [24 CFR          The greater of:
   891.435]                                          1) One month’s total tenant payment, or
                                                     2) $50
   Section 202 PRAC [24 CFR 891.435]                 The greater of:
                                                     1) One month’s total tenant payment, or
                                                     2) $50
   Section 811 PRAC [24 CFR 891.435]                 The greater of:
                                                     1) One month’s total tenant payment, or
                                                     2) $50
   Section 236                                       One month’s tenant rent
   Section 236 with RAP                              The greater of:
                                                     1) One month’s total tenant payment, or
                                                     2) $50
   Section 221(d)(3) BMIR                            One month’s tenant rent
   Rent Supplement                                   The greater of:
                                                     1) One month’s total tenant payment, or
                                                     2) $50