Common use of Lease or Rental Agreement Clause in Contracts

Lease or Rental Agreement. At a minimum, the lease or rental agreement between the landlord and the eligible household must contain the following: ✓ Name of tenant ✓ Name of landlord ✓ Address of rental property ✓ Occupancy (who gets to live at the rental) ✓ Term of agreement (lease start and end date) ✓ Rent rate and date due ✓ Deposits (if any and what for/term) ✓ Signature of tenant/date ✓ Signature of landlord/date Grantees may pay rent amounts up to 120 percent of HUD’s Fair Market Rent (FMR). The rent limit is the maximum rent that can be paid for a unit of a given size. Rent calculations must include the cost of utilities as detailed on utility allowance schedules established by the local Housing Authority. Payment of rents in excess of 120 percent of FMR requires prior approval by Commerce. Consistent with HUD housing affordability standards, each household is responsible for contributing no more than 30 percent of their income to the cost of their housing3. Documentation of subsidy amount and subsidy determination process must be included in the client file. If the household share creates a burden for the household, the household share may be waived or reduced, at the discretion of the grantee. The circumstances of the waiver must be documented in the client file. Grantees should adjust household rent subsidy amount whenever there is a change in household circumstance, income, or need. Documentation of new subsidy determination process and subsidy amount must be included in the client file.