Tenants must be served a notice of the reasons and the proposed basic and market rents at least 30 days before the owner asks HUD to approve an increase, with a 30-day comment period

s236.rent_limit.tenant_notice_and_comment_before_rent_increase_request · v1.0.0

At least 30 days before submitting a request to HUD for approval of an increase in maximum permissible rents, the mortgagor of a Section 236 project must notify the tenants of the proposed rent increase, serving the notice as provided in 24 CFR 245.15. The notice must state the reasons for the proposed increase and set out present rent, proposed increase and proposed rent by bedroom count, and for Section 236 projects it must show SEPARATE COLUMNS for basic and market rent. The supporting materials must be available for inspection and copying by tenants and their representatives during normal business hours for 30 days from service of the notice, and tenants may submit written comments during that same 30 days, which the owner must transmit to HUD along with its own evaluation of them and its request. If the owner makes a material change to the materials during the comment period it must notify tenants, who then get 15 days from service of that additional notice, or the remainder of the original period if longer. Any approved increase may be put into effect only after at least 30 days from the date tenants are served with notice of HUD's decision, and in accordance with existing leases. The mortgagor must comply with all representations made in the notice.

Confidence

high

Effective from

1996-11-08

Consequence model

agency finding with cure

Last reviewed

2026-08-29