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HUD Housing Programs: Tenants’ Rights (The Green Book): 1.9.2.4 Moderate Rehabilitation Single Room Occupancy (SRO)

Moderate Rehabilitation Single Room Occupancy (SRO) assists single homeless individuals to lease rehabilitated single room occupancy units in privately owned, rehabilitated buildings. This program was consolidated with the Supportive Housing Program and the Shelter Plus Care program. Along with the Supportive Housing Program and the Shelter Plus Care (S+C) Program, the SRO program has subsequently been combined with the Continuum of Care Program.721

HUD Housing Programs: Tenants’ Rights (The Green Book): 1.10.1 Rental Assistance Demonstration

Overview. In 2011, the Obama Administration proposed and Congress enacted the Rental Assistance Demonstration (RAD) to preserve affordable housing and address the then-$26 billion nationwide backlog of deferred maintenance on public housing properties.722 This backlog exists because of decades of neglect of public housing and insufficient funding from Congress.723 Because of this neglect, the public housing inventory nationwide has been losing an average of 10,000 units

HUD Housing Programs: Tenants’ Rights (The Green Book): 1.10.2 The “Moving to Work” Demonstration

In 1996, Congress directed HUD to launch the Moving to Work (MTW) Demonstration program.750 The MTW program—not to be confused with the Moving to Opportunity (MTO) Voucher mobility program or the Welfare to Work Voucher program—allowed HUD to waive, with some exceptions,751 almost any requirements of the United States Housing Act (governing both public housing and Vouchers) for certain PHAs and permit PHAs to combine program funds, such as public housing operating funds, with tenant-based assist

HUD Housing Programs: Tenants’ Rights (The Green Book): 1.11 Low Income Housing Tax Credit Program

Although not a HUD housing program, the Low-Income Housing Tax Credit (LIHTC) is currently the primary method of producing and rehabilitating affordable housing. LIHTC was designed to encourage private investment into new construction, acquisition, and rehabilitation of affordable rental housing for low-income households. Because the LIHTC program is not administered by HUD, this manual does not cover LIHTC tenants’ rights comprehensively; this section provides a brief program summary with references to relevant sections located elsewhere in the manual.

HUD Housing Programs: Tenants’ Rights (The Green Book): 6.1 Introduction

This chapter covers security deposits and extra charges. The section on security deposits reviews the federal requirements that govern these funds for certain housing programs. The section on extra charges discusses payments other than rent that tenants in federal housing may be required to pay or that PHAs or other owners may improperly charge.

HUD Housing Programs: Tenants’ Rights (The Green Book): 6.2.1 Introduction

At the beginning of a tenancy, tenants generally pay a specified sum of money to the landlord as a kind of insurance against damage to the premises. These funds do not become property of the landlord, and they are not considered part of a tenant’s rent.1 HUD regulations and handbooks regulate the payment and retention of security deposits in public and subsidized housing. Depending on the tenant’s, landlord’s, and PHA’s conduct and method of notice, there are differing obligations surrounding security deposits.

HUD Housing Programs: Tenants’ Rights (The Green Book): 6.2.2 Security Deposits in Public Housing

For the public housing program, if a PHA requires a security deposit, it must be an express provision in the lease.5 Regulations state that security deposits “shall not exceed one month’s rent or such reasonable fixed amount as may be required by the PHA.”6 Although the regulations allow a PHA to charge any “reasonable” amount, the mention of one month’s rent provides a gauge of what is reasonable.7 To determine the reasonableness of

HUD Housing Programs: Tenants’ Rights (The Green Book): 6.2.3 Security Deposits in Subsidized Housing (Sections 221(d)(3), 236, and Rent Supplement Program)

HUD Handbook 4350.3, which governs most HUD-assisted and subsidized multifamily programs (but not the Section 8 Moderate Rehabilitation or Housing Choice Voucher programs), includes several provisions regarding security deposits.25 Many of these are incorporated into the Family Model Lease that is appended to the Handbook.26 As contractual terms, these lease provisions are more clearly enforceable by residents than the Handbook provisions.

HUD Housing Programs: Tenants’ Rights (The Green Book): 6.2.4.1 Voucher Program

Landlords renting to voucher tenants are permitted, but not required, to collect security deposits.57 Deposits are not limited to one month’s rent, and PHAs are not authorized to prohibit deposits that are so high as to preclude participation by Voucher holders.58 The only limit on security deposits, beyond state or local law,59 is that PHAs may prohibit deposits that exceed private market practices or the amounts that unassisted tenants are

HUD Housing Programs: Tenants’ Rights (The Green Book): 6.2.4.2 Section 8 Moderate Rehabilitation Program

The regulations for the Section 8 Moderate Rehabilitation Program limit the amount of the security deposit to the greater of the total tenant payment (tenant rent plus utility allowance) or $50, so long as it is less than what state or local law permits.69 Tenants who are leased in place (i.e., who resided in the unit prior to its inclusion in the program) and previously paid a security deposit in excess of this maximum are not entitled to a rebate of the difference.70 These tenants

HUD Housing Programs: Tenants’ Rights (The Green Book): 6.3.1 Introduction

Tenants in federal housing are often subject to charges that are not technically “rent.”88 These types of charges come with many labels, including late fees, fines, repair charges, key deposits, furniture and appliance charges, fees for garbage collection, parking, cleaning, credit checks and cable TV. Although the tenant’s obligation to pay these charges arises out of the tenancy and lease agreement, they do not constitute “rent” when levied for some collateral reason other than as consideration for the use and occupation of the premises.

Home Foreclosures: 15.1 Introduction

Reverse mortgages are a special type of home-secured loan that allows seniors to convert home equity into cash without having to move out and without having to make periodic mortgage payments. In a traditional forward mortgage, the lender advances the principal at origination, and the borrower is required to pay off the loan balance over time. In contrast, reverse mortgage lenders advance funds to the borrower as a lump sum, as monthly payments, through a line of credit, or a combination of these options. No periodic payments are due from reverse mortgage borrowers.

Home Foreclosures: 15.2 Overview of HECM Reverse Mortgages

Reverse mortgages provided through the Home Equity Conversion Mortgage (HECM) program were designed to meet the needs of older homeowners by reducing economic hardship that results from increasing costs of health, housing, and subsistence needs at a time of reduced income.1 HUD administers the HECM program and promulgates HECM regulations.2 HUD also regulates the program through the issuance of mortgagee letters to approved lenders and servicers updating program guidelines or policy.

Home Foreclosures: 15.3.1 Generally

Failure to make monthly payment obligations is the most common cause of mortgage foreclosure. However, unlike traditional forward mortgages, reverse mortgages do not require monthly loan payments. Nevertheless, there are several circumstances under which foreclosure will be triggered. The leading causes are (1) failure to pay property charges, such as real estate taxes and hazard insurance, as they come due, and (2) after a maturity event, such as non-occupancy or death of the last surviving borrower, the loan becomes due and payable in full.

Home Foreclosures: 15.3.2.1 Loss Mitigation for Property Charge Defaults

While there are no monthly loan payments required for reverse mortgages, that does not mean that reverse mortgages are “payment-free.”59 Rather, the loan documents require reverse mortgage borrowers, like traditional mortgage borrowers, to pay for “property charges.” These charges include real estate taxes and hazard insurance premiums and, if applicable, condominium association fees, ground rents, or other special assessments.

Home Foreclosures: 15.3.3.1 Introduction

Reverse mortgages permit homeowners to remain in their homes until a maturity event occurs. Specifically, the HECM enabling statute states that “the homeowner’s obligation to satisfy the loan obligation is deferred until the homeowner’s death, the sale of the home, or the occurrence of other events specified in the regulations by the Secretary.”113 Permanent relocation from the home will also trigger maturity under HUD regulations.114

Home Foreclosures: 15.3.3.3.2 History and past litigation of the non-borrowing spouse problem

How the Non-Borrowing Spouse Problem Arose. Under the HECM program, spouses may jointly take out a reverse mortgage if both borrowers are sixty-two years old and both borrowers are on the title to the home. When spouses have a reverse mortgage, the loan does not mature until both borrowers die, sell the home, or permanently relocate from the home. For example, if one spouse dies or moves to a nursing facility, the reverse mortgage will not be affected so long as the other spouse continues to live in the home.

Home Foreclosures: 15.3.3.3.5 Legal claims against servicers and mortgagees

With the improvements in HUD’s policies providing protection for spouses, unless there is a separate basis for default on the loan, most non-borrowing spouses should be able to obtain a deferral of the foreclosure status through the MOE program for loans made prior to August 4, 2014, or the deferral period included in the mortgage for loans made after August 4, 2014. However, if such relief is denied, claims against the servicer or mortgagee could be considered.