A repayment agreement must be agreed by both parties, must keep the monthly payment plus total tenant payment within 40 percent of monthly adjusted income, and must carry six named terms

mfh.termination_tenancy.repayment_agreement_terms_and_the_forty_percent_ceiling · v1.0.0

Where a tenant owes retroactive rent, the tenant and owner must both agree on the terms of the repayment agreement. The tenant's monthly payment must be what the tenant can afford based on the family's income, and the monthly payment plus the tenant's total tenant payment at the time the agreement is executed should not exceed 40 percent of the family's monthly adjusted income. The agreement must include the total retroactive rent owed, any lump sum paid at execution and the monthly payment amount; reference the lease paragraphs under which the tenant is in noncompliance and may be subject to termination; contain a clause allowing renegotiation if the family's income decreases or increases by $200 or more per month; state that the monthly repayment is in addition to the family's monthly rent and payable to the owner; state that late and missed payments constitute default and may result in termination of assistance and/or tenancy; and be signed and dated by tenant and owner. The owner must not apply a tenant's monthly rent payment toward the repayment amount in a way that would accumulate late rent payments -- the repayment is in addition to the rent, not instead of part of it. The tenant may consult a HUD Housing Counseling Agency in reaching agreeable terms.

Confidence

high

Effective from

2013-11-27

Last reviewed

2026-09-01