On January 13, HUD Multifamily West sent out an email Rescinding the 2018 Late Payment Fee Memo concerning the collection of fees for late payment of rent in HUD subsidized properties.


It is LOMOD’s opinion that this email is specifically addressing a paragraph from the 2018 memo that states:

The fee for late charges is designed to encourage low-income tenants with limited or marginal resources to pay their portion of the rent on time. Owners are expected to be flexible as to the date deemed late where a tenant receives social security benefits and/or public assistance, and the benefits are received a few days after the first of the month.


As this statement is in direct conflict with the HUD Handbook 4350.3 REV-1 CHG-4 and the HUD Model Lease HUD-90105-A, it has been rescinded and all late fees must be charged and collected as stated in the Handbook and Lease.