Failure to recertify charges note rent to the tenant, or full overage to the borrower

rd515.recertification.failure_charges_note_rent_or_full_overage · v1.0.0

Where the borrower can document that a tenant received a recertification notice and the tenant fails to comply or to cooperate with verification by the recertification date, the borrower must within 10 days give the tenant and the Agency written notice that termination proceedings are being initiated and that the tenant will be charged note rent until the lease is terminated. Where instead the BORROWER cannot document that the tenant received a recertification notice and the tenant is not recertified within 12 months of the most recent certification, the tenant continues to pay on the most recent certification and the borrower must remit full overage to the Agency as if the tenant were paying note rent - a charge the borrower may not pay out of housing project funds or recover from the tenant.

Confidence

high

Effective from

2005-01-01

Last reviewed

2026-08-30