HUD Handbook 4350.3 § 7-4
Key Requirements (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
HUD guidance — not codified law
In Force
Verified 9/24/2026 · Next check 10/1/2026
effective 9/24/2026FederalSection 8 HCVOperative Text
HUD Handbook 4350.3 § 7-4
A. To ensure that assisted tenants pay rents commensurate with their ability to pay,
HUD requires the following:
1. Owners must conduct a recertification of family income and composition
at least annually. Owners must then recompute the tenants’ rents and
assistance payments, if applicable, based on the information gathered.
2. Tenants must supply information requested by the owner or HUD for use
in a regularly scheduled recertification of family income and composition
in accordance with HUD requirements.
3. Tenants must sign consent forms and asset declaration forms
4. *Owners must use the EIV Income Report as third-party verification of
employment and income unless the tenant disputes the information on
the EIV report. (See Chapter 5, for more information on determining and
verifying income. and Chapter 9, Enterprise Income Verification (EIV) for
using EIV reports.)*
5. *Owners must obtain third-party verification directly from the third party
source for the following items. (See Chapter 5, Section 3, for more
information about verification of income.)
a. Annual income from wages, unemployment and Social Security
benefits when tenant is unable to provide acceptable income
documentation or disputes the employment and income
information in the EIV system (see Chapter 5, Paragraph 5-5.A.3
for calculation of tenant income);
HUD Multifamily Occupancy Handbook 7-3 8/13
Chapter 7: Recertification, Unit Transfers,
and Gross Rent Changes
b. Reported family annual income from sources not reporting income
data to the EIV system;*
c. The value of family assets;
d. Expenses related to deductions from annual income; and
e. Other factors that affect the determination of adjusted income.
6. At each annual recertification, the owner must provide the tenant with a
copy of the HUD Fact Sheet describing how the tenant’s rent is
determined. *The owner must also provide the tenant with a copy of the
EIV & You brochure.*
7. Owners have the authority to require a criminal background check,
*including a State lifetime sex offender registration check*, on tenants at
recertification. Owners who adopt the policy of conducting criminal
background checks, *including a State lifetime sex offender registration
check*, at recertification must conduct *the checks* on all tenants at
recertification. If the background checks indicate that the tenant is in
violation of the provisions of the lease, the owner may evict the tenant in
accordance with the lease and the owner’s standards for termination of
tenancy. The owner must:
a. Notify the household of the proposed action based on the
information.
b. Must provide the subject of the criminal record and the tenant with
a copy of the information and an opportunity to dispute the
accuracy and relevance of the information obtained from any law
enforcement agency.
*NOTE: Persons who are subject to a lifetime sex offender registration
requirement who were admitted prior to June 25, 2001, the effective date
of the Screening and Eviction of Drug Abuse and Other Criminal Activity
final rule, must not be evicted unless they commit criminal activity while
living in federally assisted housing or have some other lease violation, in
which case the owner may terminate the tenancy and pursue eviction to
the extent allowed by their lease and state or local law.*
8. Owners must perform annual recertifications on any resident of a Section
236 project paying less than the Section 236 market rent, and on any
resident of a Section 221(d)(3) BMIR project paying the BMIR rent.
Tenants of Section 236 and Section 221(d)(3) BMIR projects must be
supported in the Tenant Rental Assistance Certification System (TRACS)
with a submission of the required HUD-50059.
NOTE: Section 236 and Section 221(d)(3) BMIR cooperatives must
enforce annual recertifications for both current and new members.
HUD Multifamily Occupancy Handbook 7-4 8/13
Chapter 7: Recertification, Unit Transfers,
and Gross Rent Changes
B. Owners do not have to perform annual recertifications for individual tenants who
are paying market rent as described below:
1. Tenants paying the contract rent or market rent and living in a unit
covered by a Section 8, RAP, Rent Supplement, or PAC housing
assistance payment contract, unless the tenants request an initial
certification to determine their eligibility to receive program assistance.
2. Tenants of a Section 236 project paying the Section 236 market rent
established for the property, unless the tenants request an initial
certification to determine their eligibility to pay less than the market rent.
3. Tenants of a Section 221(d)(3) BMIR project paying 110% of the BMIR
rent established for the property, unless the tenants request an initial
certification to determine their eligibility to pay the BMIR rent.
C. If a tenant in a property covered by this handbook is receiving rental assistance
through the Section 8 Housing Choice Voucher Program, the Public Housing
Authority (PHA) administering the voucher completes the annual recertification.
Owners are not responsible for completing recertification activities but must
cooperate with PHA staff in providing needed information.
D. When a change in family composition is reported in Section 202/8 projects, adult
children are eligible to move in after initial occupancy only if they are essential for
the care or well-being of the elderly tenant(s). They are considered a part of the
family and their income must be counted. Owners should require adult children
to sign a release form relinquishing any future rights to the unit as a remaining
member of the tenant family, as they qualify for occupancy only as long as the
individual needing the supportive services is in occupancy.
E. When a change in family composition is reported in Section 202 PRAC and
Section 811 projects, occupancy by adult children is subject to the following
restriction. Adult children are not eligible to move into a unit after initial
occupancy unless they are performing the functions of a live-in aide and are
classified as a live-in aide for eligibility purposes. See paragraph 3-6 E.3 for
eligibility requirements for a live-in aide.
HUD Multifamily Occupancy Handbook 7-5 6/07
Chapter 7: Recertification, Unit Transfers,
and Gross Rent Changes
Figure 7-2: Comparison of Live-in Aid and Adult Child in 202/8 and 202 PRAC projects
202/8 202 PRAC
Admission to household after
initial occupancy:
Live-in aide Yes Yes
Adult child Yes – if needed for essential Yes - Only if performing
care of family member function of live-in aide
Income counted:
Live-in aide No No
Adult child Yes No
Counted as member of family:
Live-in aide No No
Adult child Yes No
Right to remain in unit: (See
paragraphs 7-4.D and 3-6.E.3 for
lease addendum requirements.)
Live-in aide No No
Adult child No NoSource: Legislative text reproduced verbatim
Effective Timeline
Current
Sep 24, 2026
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