HUD Handbook 4350.3 § 6-9

A.      Overview

                1.       Developing a set of house rules is a good practice. By identifying
                         allowable and prohibited activities in housing units and common areas,
                         owners provide a structure for treating tenants equitably and for making
                         sure that tenants treat each other with consideration. House rules are
                         also beneficial in keeping the properties safe and clean and making them
                         more appealing and livable for the tenants.

                2.       The decision about whether to develop house rules for a property rests
                         solely with the owner, and HUD or the Contract Administrator’s review or
                         approval is not required. Owners, however, must be careful not to
                         develop restrictive rules that limit the freedom of tenants. If owners
                         develop house rules for a property, these rules must be consistent with
                         HUD requirements for operating HUD subsidized projects, must be
                         reasonable, and must not infringe on tenants' civil rights.

                3.       House rules are listed in the lease as an attachment to the lease. It is
                         important, however, to recognize that house rules do not replace the
                         lease.

                4.       House rules must not create a disparate impact on tenants based on
                         race, color, national origin, religion, sex, disability, or familial status.

        B.      Key Requirements

                1.       House rules must:

                         a.      Be related to the safety, care, and cleanliness of the building or
                                 the safety and comfort of the tenants;

Example – Possible Topics for House Rules
                     Safety and care of the building: Guest rules, locks and lost
                     keys, access to the front door, and security systems.
                     Cleanliness of the building: Trash disposal, littering, hallway
                     obstructions, and lobby rules.
                     Safety and comfort of tenants: Noise levels, fire safety, and
                     security.

b.       Be compliant with HUD requirements;

                         c.       Not circumvent HUD requirements;

                         d.       Not discriminate against individuals based upon membership in
                                  protected class;

                         e.       Be reasonable.

                                  (1)     Reasonable house rules are within the bounds of common
                                          sense. They are not excessive or extreme, and most
                                          importantly, they are fair.

                                  (2)     *Figure 6-6* identifies examples of reasonable and
                                          unreasonable house rules. The table does not include all
                                          possible situations; therefore, owners must use their own
                                          discretion to determine whether a house rule is reasonable
                                          or not while developing house rules for their properties;

                         f.       Comply with state and local requirements.

                  *Figure 6-6*: Reasonable versus Unreasonable House Rules

Reasonable House Rules                                Unreasonable House Rules
 Requesting that all visitors sign in when entering     Not allowing a visitor in a tenant’s apartment during
 the building.                                          nighttime.
 Not allowing smoking in the common areas of the
 building.
 Asking tenants to turn sound equipment low after       Asking tenants to turn the lights off after a certain
 a certain time at night.                               time at night.
 Asking all children under the age of 12 to be          Asking all children under the age of 12 to be
 accompanied by an adult resident when using            accompanied by an adult resident at all times in the
 building facilities.                                   building.

NOTE: There are no statutory or regulatory provisions governing smoking in
               assisted housing. HUD assisted properties are required to comply with applicable
               state and local laws, which would include any laws governing smoking in
               residential units. Owners are free to adopt reasonable rules that must be related
               to the safety and habitability of the building and comfort of the tenants. Owners
               should make their own informed judgment as to the enforceability of house rules.

2.       Extended absence or abandonment. As part of a property’s house rules,
                         owners may establish rules specifying when tenants give up their right to
                         occupancy because of their extended absence or abandonment of the
                         unit. Under these rules, owners may initiate action to terminate tenancy
                         in response to an extended absence or abandonment of the unit by the
                         tenant or individual listed on the lease for that unit.

                         NOTE: Abandonment is distinguished from an absence from the unit by
                         the tenant’s failure to pay the rent due for the unit and failure to
                         acknowledge or respond to notices from the owner regarding the overdue
                         rent.

                         a.      Owner discretion. The decision to establish rules regarding
                                 extended absence or abandonment of a unit as part of a
                                 property’s house rules rests solely with the owner.

                         b.      Requirements and guidelines. If owners elect to establish such
                                 rules, they must be consistent with the requirements and
                                 guidelines listed below:

                                 (1)      Rules regarding extended absence and abandonment
                                          must be consistent with state and local law.

                                 (2)      Guidelines for rules regarding extended absence from a
                                          unit. Owners may establish a house rule defining
                                          extended absence as the tenant being absent from the unit
                                          for longer than 60 continuous days, or for longer than 180
                                          continuous days for medical reasons. Owners may allow
                                          exceptions for extenuating circumstances.

                                 (3)      Guidelines for abandonment of a unit. If abandonment of a
                                          rental unit is not addressed by state or local law, owners
                                          may establish a rule for declaring a unit abandoned. Rules
                                          regarding abandonment must be consistent with state and
                                          local law regarding nonpayment of rent, specify the actions
                                          that the owner will take to contact the tenant, and describe
                                          the handling and disposition or any tenant possessions left
                                          in the unit.

3.       Tenants conducting incidental business in their unit

                         Owners may establish house rules covering tenants who conduct
                         incidental business, such as computer work, limited babysitting, etc., in
                         their unit. The rules would deal with or prohibit such things as the:

                         a.      Amount of traffic (both foot and motor vehicle) associated with
                                 such incidental business income;

                         b.      Amount of noise associated with such incidental income;

                         c.      Prohibition of signs in unit windows;

                         d.      Use of parking within the project grounds for such incidental
                                 business use;

                         e.      Hours such as incidental work could be performed if such
                                 performance could disturb the rights or comfort of the neighbors;
                                 and

                         f.      Other such reasonable rules.

                         NOTE: Tenants who conduct incidental business in their unit and
                         receive incidental business income are not in violation of paragraph 13,
                         General Restrictions, of the Model Lease for Subsidized Programs.

                4.       House rules are listed in the lease as an attachment and must be
                         attached to the lease.

                5.       Owners must give tenants written notice 30 days prior to implementing
                         new house rules.

                6.       If HUD or Contract Administrator staff becomes aware (through routine
                         monitoring, site inspections, tenant complaints, etc.) that house rules
                         circumvent or conflict with HUD requirements (including civil rights and
                         Fair Housing), the owner will be required to modify the rules in order to
                         conform with HUD requirements.