Security deposits and membership fees.

CFR · 2024-01-01 · US · Title 7

(a) (b) (1) As noted in § 3560.102(b)(1)(viii) and § 3560.156(c)(18)(iii), borrowers must specify in the housing project's management plan how the amount to be charged as a security deposit will be established and must specify the amount to be charged to individual tenants in the lease to be signed by the tenant. (2) Borrowers may charge security deposits to households receiving HUD assistance in accordance with HUD requirements. (3) Members of a cooperative shall be required to pay a membership fee no greater than one month's occupancy charge. (4) Additional security deposits for pets may be charged as long as the additional deposit is not greater than basic rent for 1 month. No additional security deposit for assistance animals is allowed where an assistance animal is necessary for the normal functioning of a household member with a disability. (5) Borrowers must not charge additional security deposits based on disabilities of tenants or other personal characteristics. (c) (d) (1) Borrowers must consider expenses due for addressing normal wear and tear as normal operating expenses and must not charge tenants a fee or withhold security deposits to pay for such costs. (2) Borrowers may withhold security deposits and may charge tenants for damage or loss costs above security deposit amounts. (e) (1) Resolution of any security deposit disputes must be handled in accordance with state and local law. (2) Any interest earned on security deposits will accrue in accordance with stat

official document · source cfr-2024 · id 7:§ 3560.204