Leases must be on an Agency-approved form, in writing, for a one-year initial and renewal term

rd515.lease.agency_approved_form_and_one_year_term · v1.0.0

A Section 515 borrower must use a lease approved by Rural Development, consistent with Agency requirements and with the requirements of every programme participating in the housing project, and must have its attorney certify that conformity before submitting the lease for approval. The lease must be executed with each tenant household before occupancy. All leases must be in writing; the initial lease must be for a one-year period; and unless the tenant is subject to termination under 7 CFR 3560.158 or 3560.159 a renewal or extension must also be for one year. The lease must contain an escalation clause permitting the tenant contribution to change on an Agency-approved change in basic or note rate rents, or on a change in tenant status documented on the certification form or a failure to recertify.

Confidence

high

Effective from

2005-01-01

Last reviewed

2026-08-30