The Trainer — February 2015
Using the HUD Model Lease; Dealing with Marijuana Use on Site
In this month’s feature, we discussed how to choose the correct HUD model lease to use at your site. Appendix 4 of HUD Handbook 4350.3 contains four different model leases. Which version you use depends on which program your site falls under. It’s important to use the proper version of the model lease because certain clauses in each lease are tailored to specific programs. You can run into trouble with HUD and confuse residents about their rights and responsibilities if you use the wrong lease.
In this issue’s Compliance article, we discussed HUD’s new memo, “Use of Marijuana in Multifamily Properties,” on the use of medical marijuana at assisted housing sites. The memo was issued due to questions concerning the use of marijuana at sites in the growing number of states that allow the use of medical marijuana.
QUESTION #1
Section 202/8 sites must use the HUD family model lease. True or false?
a. True.
b. False.
QUESTION #2
You may make changes to the family model lease to comply with state or local laws without getting the approval of HUD or your contract administrator. True or false?
a. True.
b. False.
QUESTION #3
HUD can require you to make changes to a Section 8 model lease. True or false?
a. True.
b. False.
QUESTION #4
Since many states began passing laws allowing the use of marijuana for medical purposes, you must allow residents who have a prescription for medical marijuana to use it as a reasonable accommodation for a disability. True or false?
a. True.
b. False.
QUESTION #5
If you discover that a resident is using medical marijuana, you must evict her. True or false?
a. True.
b. False.
ANSWERS & EXPLANATIONS
QUESTION #1
Correct answer: b
False. There’s a special lease specifically for Section 202/8 and Section 202/PAC sites.
QUESTION #2
Correct answer: b
False. Before implementing lease changes to reflect documented state or local laws, or a management practice generally used by management companies that manage assisted sites, the owner must obtain written approval from HUD or the contract administrator [HUD Handbook 4350.3, par. 6-4(D)].
QUESTION #3
Correct answer: a
True. In certain cases, HUD requires you to make changes to its model lease to comply with additional rules, such as adding a pet provision for Section 8 sites for the elderly and disabled, or adding a police/security officer provision to allow you to rent units to over-income officers.
QUESTION #4
Correct answer: b
Because the federal Controlled Substances Act prohibits all forms of marijuana use, the use of “medical marijuana” is illegal under federal law even if it’s permitted under state law. In other words, state marijuana laws don’t change the fact that using marijuana continues to be an offense under federal law.
QUESTION #5
Correct answer: b
False. While the use of marijuana is illegal under federal law, owners have discretion on developing policies and procedures for when not to evict a resident for marijuana use under certain conditions. In other words, while owners are forbidden from admitting a household with a member who uses drugs, owners have “discretion to determine, on a case-by-case basis, when it is appropriate to terminate the tenancy of the household” due to use of a controlled substance, like marijuana. This discretion is implicit in the HUD rules, but the new guidance makes it clearer.