HUD Handbook 4350.3 § 6-20
Charges Prior to Occupancy (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
Operative Text
A. An owner must not charge applicants for costs associated with accepting and
processing applications, screening applicants, or verifying income and eligibility.
Hence, owners must not require applicants to pay application fees, credit report
charges, charges for home visits, charges to obtain a police report(s), or other
costs associated with the above functions. These costs are considered project
expenses.
B. Cooperatives are permitted to charge a reasonable application and credit check
fee.Under HUD Handbook 4350.3 REV-1 CHG-4 § 6-20, owners of HUD-assisted housing are generally prohibited from passing the costs of application processing, applicant screening, or income and eligibility verification on to applicants. Expenses such as application fees, credit report charges, home visit fees, and police report fees must be absorbed by the project as operating costs. An exception exists for cooperatives, which may charge applicants a reasonable application and credit check fee.
Plain English — not legal advice.
Section 6-20 of HUD Handbook 4350.3 REV-1 CHG-4 makes clear that compliant operators of HUD-assisted properties treat application processing, screening, and eligibility verification as project expenses rather than costs billed to prospective tenants. This means owners generally do not collect application fees, credit report charges, home visit fees, or police report fees from applicants at any point in the intake process. Operators of cooperative housing occupy a distinct category under § 6-20 and may charge a reasonable application and credit check fee, provided it remains within a reasonable range.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under HUD Handbook 4350.3 REV-1 CHG-4 § 6-20, applicants for most HUD-assisted housing have a right to apply without being charged fees for application processing, credit checks, home visits, or police reports, as those costs are designated project expenses. If an owner of a non-cooperative HUD-assisted property requests such fees, that practice may constitute a violation of this provision. Applicants who believe a fee has been improperly charged can document the charge and consider reaching out to the U.S. Department of Housing and Urban Development, a local HUD field office, or a tenant-rights organization to understand 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 25, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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