HUD Handbook 4350.3 § 7-1

A.       As discussed in Chapter 5, a family’s eligibility for assistance is based on its
                  income, as determined in accordance with program rules. Changes in income or
                  family composition can affect the amount of assistance a tenant is eligible to
                  receive and, therefore, the amount the tenant pays for rent.

         B.       Because a tenant’s income and family composition can change over time,
                  program requirements establish procedures for addressing these changes. Such
                  changes are examined and implemented through the recertification process.
                  Under program requirements, tenants have responsibilities for providing timely
                  information about these changes. Similarly, owners have responsibilities for
                  promptly reviewing and verifying this information and for making changes in
                  assistance payments or tenant rent consistent with program requirements. This
                  chapter describes these requirements and procedures.

         C.       Further, changes in the family size or composition of an existing tenant
                  household may mean the current unit is no longer appropriate in size and a
                  transfer to a suitable unit is needed. This chapter describes the requirements for
                  determining when transfers are needed based on changes in family composition
                  and the availability of suitable units.

         D.       Finally, when owners receive approval from HUD for changes to the gross rents
                  for a property, there are several occupancy-related actions that owners must
                  take. These responsibilities are described in this chapter.

         E.       The chapter is organized into four sections:

                          Section 1: Annual Recertification describes the program requirements
                           and procedures for performing the yearly verification and recertification of
                           family composition and income. Owners must verify family composition
                           and income in order to recalculate the tenant’s Total Tenant Payment
                           (TTP) and tenant rent and the assistance payment provided by HUD.

                          Section 2: Interim Recertification discusses the program requirements
                           and procedures for performing interim recertifications when a tenant
                           experiences a change in income or family composition between annual
                           recertifications.

                          Section 3: Unit Transfers presents the program requirements and
                           procedures that owners must follow when an existing tenant transfers to a
                           different unit in the property.

                          Section 4: Gross Rent Changes describes the required procedures that
                           owners must follow before making changes in unit rents or utility
                           allowances.

HUD Multifamily Occupancy Handbook                 7-1                                             6/07
Chapter 7: Recertification, Unit Transfers,
and Gross Rent Changes