HUD Handbook 4350.3 § 6-25
Other Charges During Occupancy (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
Operative Text
A. When Owners May Require Other Charges
An owner may charge tenants for allowable charges identified under
subparagraphs B, C, D, and E below.
B. Checks Returned for Insufficient Funds
1. Owners may impose a fee on the second time, and each additional time,
a check is not honored for payment. (See paragraph 5 of the Model
Lease for Subsidized Programs for more information.)
2. The owner may bill a tenant only for the amount the bank charges for
processing the returned check.
3. Field Offices or Contract Administrators may authorize an owner to
impose additional charges, if such charges are consistent with local
management practices and are permitted by state and local laws.
NOTE: This paragraph does not apply to Section 202/8, Section 202
PAC, Section 202 PRAC and Section 811 PRAC projects. Owners of
Section 202/8, Section 202 PAC, Section 202 PRAC and Section 811
PRAC projects cannot charge fees for checks returned for insufficient
funds.
C. Damages
1. Whenever damage is caused by carelessness, misuse, or neglect on the
part of the tenant, household member, or visitor, the tenant is obligated to
reimburse the owner for the damages within 30 days after the tenant
receives a bill from the owner.
2. An owner may deduct accrued, unpaid damage charges from the tenant’s
security deposit at the time of move-out, if such a deduction is permitted
under state and local laws.
3. The owner's bill is limited to actual and reasonable costs incurred by the
owner for repairing the damages.
D. Special Management Services
1. An owner may charge a tenant for special services such as responding to
lock-out calls and providing extra keys.
2. At the time of move-out, the owner may charge the tenant a fee for each
key not returned.
An owner may not charge a tenant for bad behavior, such as foul
language, noise, or failure to supervise children. However, if such
behavior is serious or prolonged, it may be grounds for termination of
tenancy.
E. Court Filing, Attorney, and Sheriff Fees
1. Owners may accept payment of these fees from tenants who wish to
avoid or settle an eviction suit provided:
a. It is permitted under state and local laws; and
b. The fees appear reasonable and do not exceed the actual costs
incurred.
2. Cooperatives may collect legal and other out-of pocket costs
incurred in collecting delinquent carrying charges and in
terminating a membership following a member’s default under the
occupancy agreement. The occupancy agreement requires
members to pay attorney fees even if the cooperative has not filed
a suit. Any charges levied on a cooperative member must be
consistent with state and local law and policies approved by the
cooperative’s Board.
F. Owners May Require Tenants to Pay Other Charges:
1. If HUD or Contract Administrator has approved the charges; and
2. The schedule of charges is either:
a. Listed in the lease agreement; or
b. Has been distributed to all tenants in accordance with the
modification of the lease requirements and procedures listed in
this chapter, paragraph 6-12.D.HUD Handbook 4350.3 REV-1 CHG-4 § 6-25 sets out the specific categories of charges that owners of HUD-assisted housing may collect from tenants beyond regular rent. These include fees for returned checks (subject to bank-cost limits), reimbursement for tenant-caused damages billed at actual and reasonable cost, fees for special management services like lockouts or unreturned keys, and certain court or legal fees related to eviction proceedings. Any charge not falling within these categories must be pre-approved by HUD or a Contract Administrator and must be disclosed in the lease or distributed to tenants through proper notice procedures.
Plain English — not legal advice.
Operators of HUD-assisted properties governed by HUD Handbook 4350.3 REV-1 CHG-4 § 6-25 generally ensure that every charge assessed to a tenant falls within one of the enumerated categories—returned-check fees, damage reimbursements, special management service fees, or legal fees—and that the amounts are limited to actual, reasonable costs or bank-assessed fees. Compliant operators document damage charges with itemized bills, provide tenants 30 days to pay, and apply security deposit deductions only where state and local law permits. Owners of Section 202/8, Section 202 PAC, Section 202 PRAC, and Section 811 PRAC projects should note that returned-check fees are expressly prohibited for those program types, and any charges outside the listed categories require prior HUD or Contract Administrator approval and proper lease disclosure.
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 § 6-25, tenants in HUD-assisted housing have the right to be charged only for categories explicitly permitted by this provision, and any charge must reflect actual, reasonable costs rather than arbitrary amounts. Tenants who receive a damage bill have 30 days to pay, and owners may not charge for behavioral issues such as noise or foul language—though such conduct may separately be grounds for lease termination. Tenants who believe they have been assessed an unauthorized or inflated charge may consider contacting their local HUD Field Office or Contract Administrator, or reaching out to a tenant-rights organization for guidance on 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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