Example 1: Tenant Vacates Before End of the Lease
A couple vacates their unit before fulfilling their initial six-month lease because the husband accepted a job in another state. Because the couple was subject to a valid six-month lease and vacated the unit for a valid reason, the low-income unit was not used on a transient basis.
Out of Compliance
Other than the two exceptions for certain transitional housing and single room occupancy units, a unit is out of compliance if the unit is rented on a transient basis. The out of compliance date is the effective date of the initial tenant income certification. A unit is out of compliance if:
no lease is on file for the tenant, or
the tenant’s initial lease term is not at least six months.
Example 1: Month-to-Month Initial Leases
A state agency discovers that an owner of a 100 unit LIHC property (not a SRO or transitional housing) established a policy of signing month-to-month leases at the time of initial occupancy.
At the time of the review, 84 units are occupied by households with initial month-to-month leases. All 84 units are out of compliance based on the effective date of the initial tenant income certification.
Back in Compliance
Noncompliance is corrected when a lease with a term of at least six months is executed. The correction date is the effective date of the new lease.
Revised October 2009