HUD Handbook 4350.3 § 7-1
Introduction (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
Operative Text
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 Handbook 4350.3 REV-1 CHG-4 § 7-1 establishes the framework governing how changes in a tenant's income or family composition affect the amount of rental assistance and the tenant's share of rent in HUD-assisted housing programs. The provision explains that both tenants and property owners carry defined responsibilities within a recertification process designed to keep assistance payments accurate and current. It also addresses when a household's change in size may require a unit transfer, and what steps owners must take when HUD approves changes to gross rents.
Plain English — not legal advice.
Under HUD Handbook 4350.3 REV-1 CHG-4 § 7-1, compliant property owners and managers maintain active systems for conducting annual recertifications, processing interim recertifications when household circumstances change between annual reviews, managing unit transfers when a family's size makes the current unit unsuitable, and implementing gross rent changes only after following HUD-approved procedures. Owners are expected to promptly review and verify information provided by tenants and to adjust assistance payments or tenant rent in accordance with program rules. Familiarity with all four sections outlined in § 7-1 helps operators stay aligned with HUD's occupancy requirements across the full lifecycle of a tenancy.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
HUD Handbook 4350.3 REV-1 CHG-4 § 7-1 makes clear that tenants in HUD-assisted housing have a responsibility to report changes in income and family composition in a timely manner so that their rental assistance and rent amounts can be recalculated accurately. Tenants whose household size changes may also have the right to transfer to a unit that is appropriately sized under the program. Tenants who believe their recertification was not handled correctly, or that a required transfer was not offered, may wish to consult a tenant-rights organization or contact the relevant HUD office 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 30, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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