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Homes and Community Renewal

2006-B-07: Revised Lease Agreement HM-78.4 - Federal Programs (7/05)

To: All Federally Assisted Housing Companies
     Owners, Managing Agents and Site Managers

From: Jane I. Berrie, Director Housing Management Bureau

Date: October 18, 2006

Subject: Revised Lease Agreement HM-78.4 - Federal Programs (7/05)

Attached is a copy of DHCR's revised federal programs lease to be used for the Section 236, Rent Supplement, RAP and Section 8 New Construction/Substantial Rehabilitation Programs. This new lease changes the amount of the monthly increase in tenant's household income which must be reported to the housing company from $40 to $200 to conform to HUD Handbook 4350.3 Revision 1. (See Page 9, paragraph 33, a [3], REPORTING CHANGES BETWEEN REGULARLY SCHEDULED RECERTIFICATIONS.)

This revised lease must be used going forward for all new tenants. In addition, any existing tenants who never executed the prior version of this lease, which was issued to all federally assisted developments in 2003, must execute this lease at the time of their annual recertification.

If you have any questions please contact Linda Kedzierski at (212) 480-2021.

Jane I. Berrie

cc: Chair Person (without attachments)

LEASE AGREEMENT ("AGREEMENT"), made this ________day of____________, 20____


The parties to this Agreement are_________________________________________, (hereinafter referred to as Landlord), a limited-profit housing company, organized and existing under the PRIVATE HOUSING FINANCE LAW, and ________________________ ____________________________(herein after referred to as Tenant). Landlord leases to Tenant presently residing at ____________________________________the apartment known as number ____________, located at ___________________________________________ in the project known as _____________________________________________________.


The initial term of this Agreement shall begin on__________________________ and end on ________________________. After the initial term ends, the Agreement will continue for successive terms of ________________________________________each, unless automatically terminated as permitted by paragraph 38 of this Agreement.

3. RENT:

Tenant agrees to pay $____________for the partial month ending on ____________________. After that, Tenant agrees to pay a rent of $________________per month. This amount is due on the ______day of the month at ____________________________________________.

Tenant understands that this monthly rent is less than the market (unsubsidized) rent due on this unit. This lower rent is available either because the mortgage on this project is subsidized by the Department of Housing and Urban Development (HUD) and/or because HUD makes monthly payments to Landlord on behalf of Tenant. The amount, if any, that HUD makes available monthly on behalf of Tenant is called Tenant assistance payment and is shown on the "Assistance Payment" line of the Certification and Recertification of Tenant Eligibility form which is Attachment No. 1 to this Agreement.*


a. Tenant agrees that the amount of rent Tenant pays and/or the amount of assistance that HUD pays on behalf of Tenant may be changed during the term of this Agreement, if:

(1) HUD or the Contract Administrator (such as a Public Housing Agency) determines, in accordance with HUD procedures, that an increase in rent is needed;

(2) HUD or the Contract Administrator changes any allowance for utilities or services considered in computing Tenant's share of the rent;

(3) the income, the number of persons in Tenant's household or other factors considered in calculating Tenant's rent change and HUD procedures provides that Tenant's rent or assistance payment by adjusted to reflect the change;

(4) changes in Tenant's rent or assistance payment are required by HUD's recertification or subsidy termination procedures;

(5) HUD's procedures for computing Tenant's assistance payment or rent change; or

(6) Tenant fails to provide information on his/her income, family composition, or other factors as required by Landlord.

b. Landlord and Tenant agree that, if upon recertification 30% of Tenant's adjusted income is sufficient to pay the HUD approved market rent for the unit, Tenant shall no longer be required to submit income recertification as required by HUD but shall be subject to the State income review procedure. Based on Tenant's household income, a surcharge may be imposed above the HUD approved market rent as required by State law.

c. Landlord agrees to implement changes in Tenant's Rent or Tenant assistance payment only in accordance with the time frames and administrative procedures set forth in HUD's handbooks, instructions and regulations related to administration of multifamily subsidy programs. Landlord agrees to give Tenant at least 30 days advance written notice of any increase in Tenant's rent except as noted in paragraphs 9, 32 or 34. The notice will state the new amount Tenant is required to pay, the date the new amount is effective, and the reasons for the change in rent. The notice will also advise Tenant that he/she may meet with Landlord to discuss the rent change.

* This paragraph does not apply to families who are required to pay market rent. In such case, State law shall apply.

Last updated on 05/21/10