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Change 3 to HUD Handbook 4350.3 Rev.1

On June 23, 2009, HUD issued Change 3 to the 4350.3 Rev-1 with an effective date of August 1, 2009.  Most of the changes are corrections or clarifications to the current handbook.  Chapters 3 and 5 have significant changes, while Chapter 9 was reissued in its entirety.  Some of the highlighted changes by chapter are:

Chapter 3:

  • Revises and expands requirements for live-in aides
  • Updates the information on gaining access to and use of the Systematic Alien Verification Entitlements (SAVE) system to verify an applicant’s eligible immigration status

Chapter 5:

  • Updates guidance on how to treat deployed military personnel by incorporating Housing Notice H-03-07 requirements
  • Clarifies guidance on how to treat pension income paid to a former spouse

Chapter 6:

  • Provides guidance on developing house rules regarding tenants conducting incidental business in their units


  • Changes tenant signature requirements on HUD-50059-A for gross rent changes
  • Clarifies that when HUD or the Contract Administrator terminates assistance payments when a new tenant certification is not submitted to TRACS within 15 months of the previous year’s certification, the owner must repay the assistance collected for the 3-month period from the date the annual recertification should have been effective through the end of the 15th month when assistance was terminated.

On August 5, 2008, HUD conducted a conference call on the 4350.3 CHG-3 and invited questions regarding Change 3 to be submitted the following mailbox:    We will post the Q&A on this site as soon as HUD issues it.