HUD Handbook 4350.3 § 7-8
Effective Dates of Changes in Assistance Payment, Total Tenant Payment, (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 § 7-8
and Tenant Rent
A. Overview
In general, recertification processing should be complete by the recertification
anniversary date. However, there may be circumstances when delays are
encountered while processing a recertification that prevent its completion in time
to provide a resident with a notice 30 days prior to the anniversary date. HUD
has established specific procedures regarding the timing of changes in the TTP,
tenant rent, and assistance payment when the recertification is delayed.
B. Timely Completion of Recertification Process
1. Timely completion of the recertification process occurs when all steps in
Figure 7-3 are completed prior to the tenant’s recertification anniversary
date. Timely completion includes issuing the required 30-day notice of a
rent change and timely delivery of the three reminder notices as shown in
Figure 7-4. Exhibit 7-5 provides a Sample Recertification Interview and
Verification Record that can help facilitate timely completion of the
recertification process.
2. Changes to the TTP, tenant rent, and assistance payment all take effect
on the recertification anniversary date. Exhibit 7-6 includes a sample
notification of a rent increase resulting from recertification processing.
HUD Multifamily Occupancy Handbook 7-14 6/07
Chapter 7: Recertification, Unit Transfers,
and Gross Rent Changes
Example – Timely Recertification of a Tenant
Recertification anniversary date is 9/1.
Owner sends tenant First Reminder Notice on 5/1.
Owner sends tenant Second Reminder Notice on 6/1.
Tenant reports for recertification interview on 6/25.
Owner completes processing of recertification and
provides 30-day notice of rent increase to the tenant on
7/25.
Assistance payment, TTP, and tenant rent change on
9/1.
C. Timely Tenant Response, But Short Processing Time
1. This situation can occur as follows:
a. The owner provides the First, Second, and Third Reminder
Notices per HUD requirements; and
b. The tenant reports for the recertification interview just prior to the
10th day of the 11th month after the last annual recertification. The
owner is then responsible for completing the verification process
in time to give the tenant a 30-day advance notice of any rent
change. In order to complete the verification processing and
provide the notice in time to have the new rent take effect by the
recertification anniversary date.
Third-party verification must continue to be pursued for other
types of income or for deductions or family composition, but the
processing of the recertification can be completed using other
sources of verification. *The owner must use the EIV Income
Report as third party verification of employment and income
unless the tenant disputes the EIV information or cannot provide
acceptable documentation to use for rent calculation. (See
Chapter 5 for more information on verifying and determining
income using EIV.)*
2. Should the owner fail to complete the verification process in time to give
the tenant a 30-day advance notice of a rent increase, the tenant’s rent
increase may not take effect until the 30-day rent increase notice period
has expired. The HAP change, however, will be effective on the
recertification anniversary date.
If the tenant’s rent is decreasing, no 30-day advance notice is required.
Both the tenant’s rent and the HAP will change on the recertification
anniversary date.
HUD Multifamily Occupancy Handbook 7-15 8/13
Chapter 7: Recertification, Unit Transfers,
and Gross Rent Changes
Example – Timely Tenant Response, But Delayed
Verification Processing
Recertification anniversary date is 9/1.
Owner sends out all notices in compliance with the
requirements on 5/1, 6/1 and 7/1.
Tenant responds on 7/8.
Owner completes processing on 8/3.
Assistance payment changes on 9/1.
Rent increase is effective on 10/1.
D. Late Response/Processing of Recertifications
1. Delays in processing due to owner or third-party action.
a. This situation can occur as follows:
(1) The owner fails to provide timely recertification reminder
notices per HUD requirements; or
(2) The owner has adequate time, but fails to complete
verification and recertification processing procedures 30
days before the recertification anniversary date, and fails to
provide the required 30-day notice for a rent increase to
take effect on the recertification anniversary date.
b. Changes in the assistance payment take effect on the
recertification anniversary date.
c. Changes in the TTP and tenant rent are effective as follows:
(1) On the recertification anniversary date, if the tenant rent
decreases as a result of the recertification; or
(2) On the first of the month following a 30-day notice period, if
the tenant rent increases as a result of the recertification.
HUD Multifamily Occupancy Handbook 7-16 6/07
Chapter 7: Recertification, Unit Transfers,
and Gross Rent Changes
Example – Owner or Third-Party Causes
Delays in Recertification Procedures
Recertification anniversary date is 9/1.
Owner sends First Reminder Notice on 8/1.
Tenant reports for recertification interview on 8/15.
Owner finishes processing recertification and provides
the tenant with rent increase notice on 9/15.
Assistance payment changes take effect on 9/1.
TTP and tenant rent changes take effect on 11/1.
2. Delays in processing due to late tenant response.
a. This situation can occur as follows:
(1) The owner provides all three recertification reminder
notices in accordance with HUD requirements; and
(2) The tenant reports for the recertification interview and
provides information and signatures after the cutoff date
(i.e., after the 10th day of the 11th month following the last
annual recertification), but before the recertification
anniversary date.
b. The owner processes the annual recertification.
(1) Changes in the TTP/tenant rent and assistance payment
take effect on the recertification anniversary date.
(2) As established in the Model Lease, the third reminder
notice fulfills the requirement for a 30-day notice of rent
increase effective on the anniversary date.
c. In all cases where the tenant reports for recertification after the
10th day of the 11th month after the last annual recertification but
before the recertification anniversary date (as described in
subparagraph D-2 a above), all adjustments in assistance
payments and the tenant’s rent are made retroactive to the
recertification anniversary date.
HUD Multifamily Occupancy Handbook 7-17 6/07
Chapter 7: Recertification, Unit Transfers,
and Gross Rent Changes
Example – Tenant Delays Recertification Process
Recertification anniversary date is 9/1.
Owner provides all three recertification reminder notices
per HUD requirements.
Tenant reports for recertification interview on 8/28.
Owner finishes processing recertification and notifies the
tenant on 9/20.
New assistance payment, TTP, and tenant rent are
retroactive to 9/1.
The owner does not provide the tenant with a 30-day rent
increase notice.
3. Tenant responds after recertification anniversary date. Tenant is out of
compliance.
a. This situation occurs when:
(1) The owner provides all three recertification reminder
notices per HUD requirements; and
(2) The tenant reports for the recertification interview on or
after the recertification anniversary date.
b. On the recertification anniversary date, the tenant must begin
paying the market rent.
NOTE: In a Section 202 PRAC or *Section 811 PRAC project the
tenant will be evicted for failing to comply with the recertification
requirements.* The tenant will pay the greater of operating rent or
30% of income until eviction procedures are completed.
NOTE: In a Section 236 project, the tenant must pay the Section
236 market rent. In a BMIR project, the tenant must pay the BMIR
market rent.
c. Assistance should be reinstated if:
(1) Assistance is available at the property;
(2) The tenant submits the required information; and
(3) The owner determines that the tenant qualifies for
assistance.
d. The new TTP/tenant rent and assistance payment take effect the
first day of the month following the date on which the tenant
reported for the certification. The tenant must pay the market rent
until this date. If the tenant fails to report for the recertification
HUD Multifamily Occupancy Handbook 7-18 8/13
Chapter 7: Recertification, Unit Transfers,
and Gross Rent Changes
interview and fails to pay market rent, or make arrangements to
pay, the owner is obligated to evict for nonpayment.
Example – Tenant Out of Compliance
Recertification anniversary date is 9/1.
Owner provides all three recertification notices per HUD
requirements.
Tenant does not respond to notices. Rent raised to
market rate effective 9/1.
Tenant responds 9/10.
Owner completes processing of income certification on
9/30.
New rent TTP/tenant rent effective 10/1 (reduced from
market rent if assistance reinstated).
Example – Tenant Out of Compliance in 202 or 811
PRAC Project
Recertification anniversary date is 9/1.
Owner provides all three recertification notices per HUD
requirements.
Tenant does not respond to notices. Eviction process is
initiated. Rent is raised to the greater of operating rent or
30% of income until eviction completed.
Tenant responds 9/10. Eviction process stopped.
Owner completes processing of income certification on
9/30.
New rent TTP/tenant rent effective 10/1 (rent based on
30% of income reinstated).
e. If the owner completes the income certification processing during
the month following the date on which the tenant reported for the
certification, the new TTP/tenant rent and assistance payment still
take effect on the first day of the month following the date on
which the tenant reported for the certification. When the owner
processes the rent change and assistance payment, they are
retroactive to this effective date.
f. The owner may not evict the tenant for failure to pay market rent
after the tenant reports for the interview and the owner is
processing the certification.
HUD Multifamily Occupancy Handbook 7-19 6/07
Chapter 7: Recertification, Unit Transfers,
and Gross Rent Changes
Example – Tenant Out of Compliance and
Recertification Completed in Second Month Following
Tenant Response
Recertification anniversary date is 9/1.
Owner provides all three recertification notices per
HUD requirements.
Tenant does not respond to notices. Rent raised to
market rate effective 9/1.
Tenant responds on 9/30.
Recertification not complete 10/1.
Owner completes recertification on 10/20.
New TTP/tenant rent retroactive to 10/1.
g. The tenant’s recertification date changes to the first day of the
month the property begins receiving assistance again for the
tenant. The tenant's recertification is processed as an initial
certification.
4. Extenuating circumstances when tenant is out of compliance. When a
tenant fails to provide the required recertification information by the
recertification anniversary date, an owner must inquire whether
extenuating circumstances prevented the tenant from responding prior to
the anniversary date. If the tenant is a person with disabilities, the owner
must consider extenuating circumstances when this would be required as
a matter of reasonable accommodation.
a. Extenuating circumstances. These are circumstances beyond the
tenant’s control. Examples of extenuating circumstances include,
but are not limited to:
(1) Hospitalization of the tenant.
(2) Tenant out of town for a family emergency (such as the
death or severe illness of a close family member).
(3) Tenant on military duty overseas.
b. Inquiring about extenuating circumstances.
(1) At the time the tenant submits the required recertification
information, the owner must inquire whether extenuating
circumstances prevented the tenant from submitting the
information prior to the recertification anniversary date.
(2) If the tenant indicates that extenuating circumstances were
present, the tenant must promptly provide the owner with
evidence of their presence.
HUD Multifamily Occupancy Handbook 7-20 6/07
Chapter 7: Recertification, Unit Transfers,
and Gross Rent Changes
c. Determining whether extenuating circumstances were present.
When a tenant provides evidence of extenuating circumstances,
the owner must determine whether the information provided
shows that the circumstances meet the condition described above
in subparagraph a.
d. Notice of decision. The owner must provide the tenant with a
written notice of the decision. The notice must also inform the
tenant of his/her right to appeal the owner’s decision if the owner
determines that extenuating circumstances were not present.
e. Appeal to the owner. If the owner denies extenuating
circumstances, he or she must provide the tenant with an
opportunity, within 10 days of notification, to meet with the owner
or designated representative to appeal the decision to raise the
tenant rent to market rent. The owner has an obligation to
arrange for a person, who was not part of the original
determination, to conduct the appeal meeting. The tenant may
have representation at the meeting, may present information for
consideration, and may respond to the information presented by
others.
f. Extenuating circumstances NOT present. If the owner determines
that extenuating circumstances were not present, follow the
procedures in subparagraph D.3 above for completing processing
of the tenant’s information, determining whether assistance can be
reinstated, and establishing effective dates.
5. Effective date of TTP/tenant rent, assistance, recertification anniversary
when extenuating circumstances were present. If the owner determines
that extenuating circumstances were present:
a. There is no change in the recertification anniversary date; and
b. The TTP/tenant rent and the assistance payments determined
based on the recertification information provided by the tenant are
effective retroactively to the recertification anniversary date
HUD Multifamily Occupancy Handbook 7-21 6/07
Chapter 7: Recertification, Unit Transfers,
and Gross Rent ChangesSource: Legislative text reproduced verbatim
Effective Timeline
Current
Sep 24, 2026
Click on timeline segments to view historical versions.
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.
Related Rules
§ 888.113
§ 888.113 Fair market rents for existing housing: Methodology.
§ 888.115
§ 888.115 Fair market rents for existing housing: Manner of publication.
§ 5.512
§ 5.512 Verification of eligible immigration status.