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Special Claims

HUD recognizes that owners of affordable housing have a potential financial risk because of the limitation on security deposits they are permitted to require and the need to adhere to waiting list requirements when vacancies occur. Therefore, owners may be reimbursed for some of their financial loss through the special claims process.

Special Claims for Vacancy Losses After Rent-Up and Special Claims for Unpaid Rent and Tenant Damages are processed by LOMOD.

  • Vacancy Losses After Rent-Up is compensation to the property owner for the loss of rental income of a unit that was previously occupied by an assisted tenant and where the unit has been vacant for circumstances beyond the owner's control.
  • A Special Claim for Unpaid Rent and Tenant Damages is reimbursement to a property owner for a former tenant's failure to pay the monthly rent or other charges or for damages caused by the negligence or abuse of the former tenant.

Please email us at to request a Special Claim Vacancy Loss Checklist or an Unpaid Rent and Damages Checklist prior to preparing your submissions.

For further assistance, please refer to the requirements of the HUD-4350.3 REV-1 and the Special Claims Processing Guide and the Special Claims FAQ for more information.