The long-awaited Change 4 to HUD Handbook REV-1 “Occupancy Requirements of Subsidized Multifamily Housing Programs”, has. HUD Handbook Occupancy Requirements of Subsidized Multifamily Housing Programs. Transmittal Notice for Revision 1 – Change 4 (August 7, ). Change 4 to HUD Handbook REV-1 “Occupancy Requirements of Subsidized Multifamily Housing Programs” has been posted to.

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The new handbook is effective on August 1. Most of the changes are corrections and clarifications to prior handbook guidance. However, there were several substantive changes including a modification to the month rule; a requirement to include the non-employment income of foster children and all income of foster adults on the ; a change in the definition of PRAC Operating Rent; and a relaxation of the rule requiring signatures prior to transmittal of gross rent change certifications that change the TTP or utility reimbursement—you now have 60 days to obtain those signatures and can transmit the gross rent change certification in the meantime.


Prior guidance was to simply stop billing. This means that, if a tenant has an AR due on January 1, you must terminate the tenant effective December 31 if any recertification handbool not complete when you create your HAP voucher for April.

HUD Revises the Release of Change 4 to Handbook 4350.3 REV-1

The termination will result in an adjustment returning the subsidy billed for January through March. This requirement is independent of the reason for the delay.

If there are extenuating circumstances, an AR effective January 1 can be submitted when the certification is complete. If there are no extenuating circumstances, the tenant must re-qualify with an initial certification effective no earlier than the first of the month after the AR recertification date.

REV-1,CHG-4 HUD Handbook Released PMCS-ICAP

For foster children, the rules are the same as for a dependent child less than 18 years of age: For foster adults, all income is included in the household’s income. Since Property Manager already auto-signs gross rent change certifications, you are all set with that change.


If there is no utility allowance, contract rent equals operating rent.

It is the total monthly cost of housing an eligible family. This has the effect of reducing the amount of a special claim, compared to the past, when there is a utility allowance involved. Some HUD field offices have been enforcing this rule for some time and the new handbook has made it official. To keep you in compliance, this change has been implemented in Property Manager.

Southwest Housing Compliance Corporation

If you do not have a utility allowance in your PRAC contracts, there is no impact on you. Unfortunately, HUD did not make other handbook changes that should occur given the new definition.

We have asked HUD for clarification before hur other software changes. We will keep you posted as we hear more about the Change 3 requirements.