LEASE AGREEMENT Page 1 1. dba Apartments represented by its Managing Agent and herein referred to as LESSOR does hereby lease to (tenant) and (co-tenant) hereinafter\referred to as LESSEE the premises known as Apartment #, located at,, Louisiana. 2. LEASE TERM: This Lease shall be for a term of not less than one full year unless separate provisions are made through an addendum to this lease with prior approval by Rural Development. This lease will begin on,, unless terminated sooner as provided in Articles 16 & 17 of this lease, will expire at midnight on, (The expiration date will always be on the last calendar day of the twelfth full month of occupancy.) Should the LESSEE remain in possession of the premises following the expiration date of this lease, the lease will automatically renew for a successive term(s) of one year calculated from the initial expiration date provided that the LESSEE continues to meet eligibility requirements, subject to the following. The Lease will not automatically renew even if LESSEE is in possession of the premises upon expiration of the Lease if LESSOR has issued a notice of intent to vacate thirty (30) days prior to the expiration date. The LESSOR may cancel this automatic renewal by providing advance written notice of its intent to not renew thirty (30) days prior to the expiration date. 3. RENT: The rental payment for the first month shall be pro-rated as of the date of occupancy and payable on that date. Monthly rent thereafter is payable IN FULL IN ADVANCE ON OR BEFORE THE FIRST DAY OF EVERY MONTH. Rent not fully paid on or before the FIRST DAY of the month is considered delinquent. In accordance with the federal regulations that govern this complex, all monthly charges are due in full, including rent and late fee, no later than THE ELEVENTH DAY OF EACH MONTH. A $10.00 late fee will be assessed on the eleventh (11 th ), if rent is paid on the eleventh day of the month. The LESSOR reserves the option not to accept payments after the 11 th day of the month but may proceed instead with lease cancellation and eviction on the 12 th day of the month. The acceptance of late charge by LESSOR for any month or months shall not constitute a waiver by LESSOR that the rent be paid on or before the first day of every month. The acceptance of partial payments by LESSOR for any month shall not constitute a waiver by LESSOR that the monthly rent is due in full on or before the first day of every month. LESSEE S MONTHLY RENTAL PAYMENT UNDER THIS LEASE IS AS FOLLOWS AND IS SUBJECT TO CHANGE IN ACCORDANCE WITH OTHER PROVISIONS IN THIS LEASE. (Select and complete either A or B) A. FOR UNITS RECEIVING RENTAL ASSISTANCE: I understand and agree that as long as I receive rental assistance, my gross monthly contribution (as determined on the latest form Rural Development or its successor agency under Public Law 103-354, 3560-8 which must be attached to this lease) for rent or occupancy charge and utilities will be $. If I pay any or all utilities directly (not including telephone or cable TV), a utility allowance of $ will be deducted from my gross monthly contribution and my resulting net monthly contribution will be $. If my net monthly contribution would be less than zero, the LESSOR will pay me $. I also understand and agree that my monthly contribution under this lease or occupancy agreement may be raised or lowered, based on changes in household income or adjustments to income, failure to submit information necessary to certify income, changes in number and age of persons living in household, and on the escalation clause in this contract. Should I no longer receive rental assistance as a result of these changes, or the rental assistance agreements executed by the owner and Rural Development or its successor agency under Public aw 103-354 expires, I understand and agree that my monthly contribution may be adjusted to no less than $ (basic) nor more than $ (note rate) during the remaining term of this lease, except that based on the escalation clause in this contract, these rates may be changed by a Rural Development or its successor agency under Public Law 103-354, approved rent or occupancy charge change. I understand that every effort will be made to provide rental assistance so long as I remain eligible and the rental assistance agreements between the owner and Rural Development, or its successor agency under Public Law 103-354, remain in effect. However,
Page 2 should this assistance be terminated, I may arrange to terminate this contract, giving proper notice as set forth elsewhere in this lease. B. FOR UNITS OPERATING UNDER PLAN II INTEREST CREDIT/BASIC RENT: I understand and agree that my gross monthly contribution as determined on the latest form Rural Development or its successor agency under Public Law 103-354, 3560-8 which must be attached to this contract, for rent and utilities will be $. If I pay any or all utilities directly (not including telephone or cable TV), a utility allowance of $ will be deducted from my gross monthly rent except that I will pay not less than basic nor more than note rate rent stated below. My net monthly rent will be $. I understand that should I receive rental subsidy benefits (interest credit) to which I am not entitled, I may be required to make restitution and I agree to pay any amount of benefit to which I was not entitled. I also understand and agree that my monthly tenant rent under this lease may be raised or lowered based on changes in household income, failure to submit information necessary to certify income, changes in the number and age of persons living in the household, and on the escalation clause in this contract. My rent will not, however, be less than $ (basic) nor more than $ ( note rate) during the term of this contract, except that based on the escalation clause in this lease, these rental rates or occupancy charges may be changed by Rural Development, or its successor agency under Public Law 103-354, approved rent or occupancy charge change. 4. SECURITY DEPOSIT: Payment of a Security Deposit prior to occupancy is required. The payment of the Security Deposit will be governed by the Security Deposit Agreement which is an addendum to this lease. The amount of the Security Deposit is. Security Deposit is to be paid in full prior to move-in date, unless arrangements have been made when LESSEE signed Louisiana Security Deposit Agreement. 5. OCCUPANCY SURCHAGE: An Occupancy Surcharge is not applicable at this complex. 6. UTILITIES: LESSOR shall provide LESSEE with the following utilities (if checked): Garbage Removal ; Water ; Sewage ; Other ; (specify: ), LESSEE will pay for all other utilities and shall pay all charges for same promptly when due. Failure by the LESSEE to have utilities connected or to maintain same during the term of this lease shall constitute material non-compliance with the terms of this lease. Utilities provided by the LESSOR shall be used in reasonable quantities for normal household use only. 7. RESPONSIBILITES OF LESSEE: A. LESSEE agrees to comply with the attached complex Rules and Regulations; B. LESSEE agrees to keep the premises in a clean and sanitary condition; C. LESSEE agrees to advise LESSOR in writing of any planned absence of two weeks or more; D. LESSEE agrees to refrain from and cause his household members and guests to refrain from destroying defacing, damaging, or removing any part of the premises or complex E. LESSEE agrees to pay LESSOR for the repair of damages (other than for normal wear and tear) to the premises or any part of the complex caused by LESSEE, his occupants, or guests. Failure to pay such charges when due constitutes material noncompliance with the lease; F. LESSEE agrees to refrain from any illegal or other activity which causes federal, sate, or local law enforcement agencies to take action on the complex property; G. LESSEE agrees to conduct himself/herself and cause his/her occupants and guests to conduct themselves in such a manner as to not impair the quiet, peaceful enjoyment of the complex by the other residents and their household members and guests; H. LESSEE agrees to provide LESSOR with all information required by Rural Development regulations to determine LESSEE S eligibility, rent contribution, unit size, etc.; I. LESSEE agrees that should he/she no longer be occupancy eligible under the project s occupancy rules or is not income eligible he/she will be required to vacate the unit within 30 days of notification by LESSOR or at the expiration of their lease, whichever is greater, or an exception is granted by Rural Development. LESSEE agrees to pay an increased rent amount if household income increases above moderate income.
Page 3 J. LESSEE agrees that should he/she be a holder of an unexpired Rural Development Letter of Priority of Entitlement ( LOPE ) and be temporarily occupying a unit for which he/she is not handicap- or occupancy eligible, agrees to move to the appropriate size unit within thirty (30) days of receiving notice of said suitably-sized vacant unit being available for occupancy. K. LESSEE understands that he/she will no longer be eligible for occupancy in this project if his/her income exceeds the maximum allowable adjusted income as defined periodically by Rural Development; L. LESSEE agrees that he/she must notify the LESSOR immediately (within 30 days) when there is a change in his/her gross income, adjustment to income, asset or when there is a change in the number of persons living in the household. LESSEE understands that his/her rent or benefits may be affected as a result of this information. LESSEE also understands that failure to report such changes may result in the loss of benefits to which he/she may be entitled or may result in the LESSOR or any applicable federal, state, administrative or regulatory agency taking corrective action if benefits were mistakenly received. LESSEE understands the corrective action the LESSOR or any applicable federal, state, administrative or regulatory may take includes the initiation of a demand for repayment of any benefits or rental subsidies improperly received, initiation of a notice to cancel any rental subsidy being received for the balance of his/her certification period, initiation of a notice to increase his/her monthly rent to note rate rent for Plan II projects or 125 percent of rent in Plan I projects, or initiation of a notice of termination. LESSEE understands that one or more of these remedies may be initiated at the option of the LESSOR or any applicable federal, state, administrative or regulatory agency; M. LESSEE understands that he/she must promptly notify the LESSOR of any extended absences in accordance with Section 7(c) and that if he/she does not personally reside in the unit for a period exceeding 60 consecutives days, for reasons other than health or emergency, his/her net monthly tenant contribution shall be raised to note rate rent for Plan II projects for the period of his/her absence exceeding 60 consecutive days. LESSEE also understands that should any rental assistance be suspended or reassigned to other eligible residents, he/she is not assured that it will still be available upon his/her return. LESSEE also understands that if his/her is not assured that it will still be available upon his/her return. LESSEE also understands that if his/her absence continues, that as landlord, LESSOR may take the appropriate steps to terminate his/her residency. N. LESSEE understands that should he/she receive occupancy benefits, e.g. unauthorized assistance, to which he/she is not entitled due to LESSEE s failure to provide information or due to incorrect information provided by LESSEE or on LESSEE s behalf by others, or for any other household member, LESSEE may be required to make restitution through, among other mechanisms, the institution of legal proceedings, and agrees to repay any amount of benefits to which he/she was not entitled to LESSOR or any applicable state, federal, administrative or regulatory agency. O. LESSEE understands that income certification is a requirement of occupancy and agrees to promptly provide any certifications and income verifications required by the LESSOR to permit determination of eligibility and, when applicable, the monthly contribution to be charged. P. It is understood that the use, or possession, manufacture, sale, or distribution of an illegal controlled substance (as defined by local, state, or Federal law) while in or any part of this apartment complex or cooperative is an illegal act. It is further understood that such action is a material lease violation. Such violations (hereinafter called a drug violation ) may be evidenced upon the admission to or conviction of the use, possession, manufacture, sale, or distribution of a controlled substance (as defined by local, state or Federal law) in any local, state or Federal court. It is further understood that domestic violence will not be tolerated on Rural Housing properties, and that such action is a material lease violation. All perpetrators will be evicted, while the victim and other household occupants may remain in the unit in accordance with eligibility requirements. The landlord (LESSOR) may require any LESSEE or other adult member of the tenant household occupying the unit (or other adult or non-adult person outside the tenant household who is using the unit) who commits a drug violation or domestic violence to vacate the leased unit permanently, within time frames set by the landlord (LESSOR), and not thereafter enter upon the landlord s (LESSOR s ) premises or the LESSEE s unit without the landlord s (LESSOR s) prior consent as a condition for continued occupancy by the remaining members of the LESSEE s household. The landlord (LESSOR) may deny consent for entry unless the person agrees not to commit a drug violation or domestic violence in the future and is either actively participating in a counseling or recovery program, complying with court orders related to a drug violation or domestic violence, or has completed a counseling or recovery program.
Page 4 The landlord (LESSOR) may require any LESSEE to show evidence that any non-adult member of the tenant household occupying the unit, who committed a drug violation or domestic violence, agrees to not commit a drug violation or domestic violence in the future, and to show evidence that the person is either actively seeking or receiving assistance through a counseling or recovery program, complying with court orders related to a drug violation or domestic violence, completed a counseling or recovery program within time frames specified by the landlord (LESSOR) as a condition for continued occupancy in the unit. Should a further drug violation or domestic violence be committed by any non-adult person occupying the unit, the landlord (LESSOR) may require the person to be severed from tenancy as a condition for continued occupancy by the LESSEE. If a person vacating the unit, as a result of the above policies, is one of the Lessees, the person shall be severed from the tenancy and the lease shall continue among any other remaining LESSEES and the landlord (LESSOR). The landlord (LESSOR) may also, at the option of the landlord (LESSOR), permit another adult member of the household to be a LESSEE. Should any of the above provisions governing a drug violation be found to violate any of the laws of the land, the remaining enforceable provisions shall remain in effect. The provisions set out above do not supplant any rights of tenants afforded by law. Q. LESSEE shall not assign the lease or sublet the unit/property/apartment without LESSOR or Rural Development s consent. R. FOR DESIGNATED HANDICAP-ACCESSIBLE UNIT: LESSEE agrees and understands that if they are occupying a designated handicapped-accessible unit and not needing those accessible features, LESSEE agrees to move to an appropriate sized unit, at LESSEE s expense, as soon as one is available. LESSEE agrees this is a temporary unit assignment. If an appropriate sized unit is not available, LESSEE is required to vacate the unit within thirty (30) days of written notification from LESSOR that an eligible individual with disabilities requires the unit. LESSEE s occupying a handicapped-accessible unit, not requiring those accessible features, will execute a Handicap Unit Lease Addendum. 8. INCOME, RENT & ELIGIBILITY DETERMINATION/RECERTIFCATION REQUIREMENTS: A. The LESSEE acknowledges that income certification is a requirement of occupancy and agrees to promptly provide any and all documentation, income verification, and certifications requested by the LESSOR at any time to permit determination of eligibility and the amount of monthly contribution charged. Documentation that may be requested includes but is not limited to income and employment verification for each occupant who has income, names/dates of birth/social security numbers for all occupants, verification of child support and/or lack thereof, verification of any and all assets, copies of bank statements, copies of tax returns, and substantiation of any allowable deductions from gross income, including, but not limited to, child care expenses. B. The LESSEE agrees to notify the LESSOR immediately of any and all changes in gross income or assets. Changes in income may result from changes in hours worked, salary rates, social security, pensions, child support, public assistance, and sale of assets. C. The LESSEE agrees to also notify the LESSOR of any changes in adjustments to income such as number of minors in the household and/or changes in medical or child care expenses. D. The LESSEE understands he/she must be recertified whenever a change in household income of $100 or more per month occurs or when changes of $50 per month occur, if the tenant request that such a change be made. F. The LESSEE understands that certification information will be requested by the LESSOR at least annually and more often if necessary in accordance with other provisions of this lease. The LESSEE understands that his/her failure to provide the required information will result in an escalation of the rent to the note rate and lease cancellation. G. No change will occur in the LESSEE s contribution due to monetary or non-monetary default or when rental assistance or interest credit is suspended, cancelled, or terminated due to LESSOR s fault.
Page 5 H. LESSEE understands that the complex is financed by Rural Development and that Rural Development has the right to further verify information provided by LESSEE in the application process. 9. LIABILITIES AND RESPONSIBILITY OF LESSOR: LESSOR will not be liable for any personal injury, damage or loss to person or property of LESSEE caused by other persons, criminal acts of crime, fire, flood, water leaks, rain, hail, ice, wind, snow, explosions, interruption of utilities, acts of God or any other causes, unless same is due to acts or negligence of the LESSOR. LESSOR RECOMMENDS THAT LESSEE SECURE RENTERS OR OTHER INSURANCE TO PROTECT AGAINST SUCH EVENTS. LESSOR will maintain the premises in a decent, safe and sanitary condition in accordance with the attached Rules and Regulations and all local, State and Rural Development regulations. 10. RENT ESCALATION CLAUSE: It may become necessary to change rent, utility allowance, or occupancy charges PRIOR TO THE EXPIRATION of this Lease Agreement due to changes in utility or other operating costs. All increases must be approved by Rural Development but if the escalation of rent is approved it will take effect upon 30 days notice, EVEN IF THE LEASE TERM HAS NOT EXPIRED. 11. NONDISCRIMINATION: The housing project is subject to: Title VI of the Civil Rights Act of 1964; Title VIII of the Fair Housing Act; Section 504 of the Rehabilitation Act of 1973; and the Age Discrimination Act of 1975. In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident. Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA's TARGET Center at (202) 720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English. To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at http://www.ascr.usda.gov/complaint filing cust.html and at any USDA office or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by: (1) mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington, D.C. 20250-9410; (2) fax: (202) 690-7442; or (3) email: program.intake@usda.gov. The address of the management agent to which tenants may direct complaints is USDA is an equal opportunity provider, employer, and lender.
Page 6 12. RIGHT OF ENTRY: The LESSOR, any representative of the LESSOR, and/or the mortgage holder have the right to enter the apartment for the purposes of routine maintenance, preventative maintenance, periodic inspections, emergencies, or to determine if the premises are being use in violation of lease terms. A minimum 24 hour notice will be given to the LESSEE when a periodic inspection is scheduled. In the event that the LESSOR enters the apartment when the LESSEE is absent from the unit, written notice of the entry will be left in the apartment. Such written notice may be in the form of a maintenance service request, an inspection report or notice as provided for elsewhere in this lease. The LESSEE is not allowed to change door locks or install locks on the apartment nor is he/she allowed to install alarm systems or burglar bars. 13. GRIEVANCE & APPEAL: LESSOR and LESSEE agree that any tenant grievance and appeal procedure from a LESSOR s decision shall be resolved in accordance with Rural Development regulations covering such procedures. Said Regulation, 7 CFR 3560:160, are posted in the rental office and are attached to this lease agreement as an addendum. 14. PETS: The LESSOR has a strict NO PETS policy, unless the complex is an elderly complex, in which case LESSEE may keep a common household pet as long as the pet is in compliance with the complex s pet policies. Written requests for reasonable accommodations by a person with a handicap or disability at family complexes will be considered with acceptable verification of need. In cases where such requests are granted, pets must conform to established pet policies. 15. SERVICE/ASSISTANCE ANIMALS: Service or assistance animals for persons/individuals with a handicap or disability are accepted at all complexes. 16. GENERAL: LESSOR may accept rental payments without regard to any other charges owed by LESSEE and may seek separate legal remedies for collection of such other charges. This lease agreement is enforceable by and binding on the LESSOR, his/her successors and assigns. Failure of the LESSOR to strictly enforce the rules and regulations shall not constitute a waiver of the LESSOR s right thereafter to enforce such terms, conditions, rules and regulations, or complex policies. LESSEE understands that should the complex be sold to a Rural Development approved buyer this lease will be transferred to the new owner. LESSOR agrees to maintain complex buildings and common areas in accordance with applicable state and local codes, Rural Development regulations and the Federal fair housing requirements. In the event that any provision of this agreement is found to be contrary to federal, state or local law or regulations, the remainder of this lease shall continue in full force and effect. 17. LEASE TERMINATION BY LESSOR: The LESSOR may terminate this lease by giving a five days advance written notice thereof in accordance with article 18 for any of the following reasons. 1. Material Noncompliance with the terms of this lease, which includes, but is not limited to the following: a) One or more substantial violations of this lease; b) Nonpayment or repeated late payments of rent, occupancy surcharge or any other financial obligation, including, but not limited to memorandum of understanding ( MOU ) under this lease (including any portion thereof) beyond any grace period. c) Repeated minor violations of this lease; d) Permitting unauthorized persons to live in the apartment; e) Misrepresentations on the rental application; f) Misrepresentations of the facts upon which, dwelling size, or rent determinations are based. The LESSEE may also be subject to criminal charges; g) Admission to or conviction for use, attempted use, possession, manufacture, selling, or distribution of an illegal controlled substance that (1) is conducted in or on the premises by the LESSEE or someone under his/her control or (2) is allowed to happen by a household member or guest because the LESSEE has not taken reasonable steps to prevent or control such illegal activity, or because the LESSEE has not taken steps to remove the household member or guest who is conducting the illegal activity. However, such material noncompliance shall not be imputed to innocent members of the LESSEE s household who are not engaged in the illegal activity or are not responsible for control of another
Page 7 household member or guest, and such innocent persons can remain in the apartment if an otherwise eligible household remains or can be formed; 2. Non-eligibility for tenancy; 3. Action or conduct which disrupts the livability of the complex by adversely affecting the health or safety of any resident of the right of any tenant to the quiet enjoyment of the complex, or which has an adverse financial effect on the complex; 4. Other Good Cause. Good cause includes, but is not limited to, actions by the LESSEE or member of the LESSEE s household that threaten the health and safety of other person or the right of other persons to peaceful enjoyment of their dwelling, result in substantial physical damage causing an adverse financial effect on the housing or other person s property, and are actions prohibited by state or local law. Prior to terminating this lease for Other Good Cause, LESSOR will provide LESSEE written notice that his/her conduct will be grounds for termination of tenancy. 18. LEASE TERMINATION BY LESSEE: In all cases, an advance thirty (30) day written notice of intent to vacate must be provided to the LESSOR and the LESSEE will be responsible for payment of the full amount of rent due for that thirty day period whether he/she remains in the unit for the entire period or not. If at any time the LESSEE provides the LESSOR with a written notice of intent to vacate, the LESSEE understands that the LESSOR will proceed with notifying the next eligible applicant of the availability of an apartment and with reassigning rental assistance benefits, if applicable. The LESSOR reserves the right to insist on the LESSEE s adherence to the terms of his/her notice to vacate. Should the LESSEE default on the terms of this lease prior to its expiration date for reason(s) other than those stipulated below, the LESSOR has the right to take action for collection of rent and charges due through the expiration date of the lease of until the apartment is rented, whichever comes first. A. Desire Not To Renew At End Of Term: LESSEE has executed an agreement for (1) year. Should the LESSEE not wish to renew this Lease for a successive term, notice in writing must be given to the LESSOR at the community rental office thirty (30) days prior to the lease expiration date. The LESSOR will be entitled to the full amount of rent for that thirty day period. B. Desire to Terminate During Term: LESSEE may terminate this lease during its term for good cause with thirty (30) days written notice to the management office. Good Cause is defined as such reasons customary or mandatory in the community, such as a transfer of LESSEE s employment, a termination of LESSEE s employment, death of a spouse, severe illness of LESSEE, expiration of rental subsidy agreements or notification by the Owner of intent to prepay. For the purposes of this lease thirty (30) days written notice shall begin on the first day of any month and end on the last day of the month. The LESSEE will be responsible for payment of all rent and other appropriate charges for that thirty (30) day period. LESSEE agrees that security deposit money shall not be used for last month s rent. 19. LEGAL NOTICE: Legal notice shall be accomplished as follows: A. LESSOR to LESSEE: Standards form notices to residents such as pest control notices, late rent notices, disturbance notices, violations, etc., that are routinely handled by the site manager shall be hand delivered to any adult member of the house or if no adult responds, by securely affixing the notice to door/door frame. Matters of a more serious nature such as those involving lease cancellation and/or eviction, re-establishing lease terms, etc., will be handled in the same manner and a copy of such notice will be mailed by first class mail to the LESSEE at his address at the complex with a proper return address. The date on which the notice shall be deemed to be received by the lessee shall be the date on which the first class letter is mailed or the date on which the notice is given pursuant to hand delivery, whichever is later. B. LESSEE to LESSOR: The LESSEE may deliver notice to the LESSOR by delivering such notice to the complex rental office either in person or by dropping it through office mail slot, if one is provided. Such notice may also be delivered to the LESSOR by first class mail to the complex rental office. 20. MOVE-IN/MOVE-OUT CONDITION: LESSEE and LESSOR has inspected the unit prior to move-in and LESSEE accepts unit as is except for items noted on the Move-In Inspection Form. The LESSOR will provide the LESSEE an executed copy of the
Page 8 completed Move-In Inspection Form. LESSOR and LESSEE shall inspect the unit when LESSEE vacates and a Move-Out Inspection will be completed. This inspection will be the basis for any additional charges to the LESSEE for damages noted which were not indicated on the Move-In Inspection. In the event lessee vacates the unit without requesting move-out inspection, LESSOR will perform such inspection without the presence of the LESSEE. LESSEE is responsible for all damages to the unit other than normal wear and tear and charges will be made in accordance with the most recent Repair, Cleaning & Damage Cost list posted in the rental office. 21. DESTRUCTION OF PREMISES DUE TO FIRE OR OTHER DISASTER: In the event that the premises are either partially or completely destroyed by fire or natural disaster, the LESSOR may at his sole discretion and without liability to the LESSEE elect to either terminate this Lease Agreement or repair/rehabilitate the premises within a reasonable period of time. If the election to rehabilitated or repair is made, the LESSEE s rent and occupancy charges will be pro-rated so that the LESSEE does not pay for the period when he/she cannot occupy the premises. If the LESSEE is able to continue to occupy the premises, his/her rental obligation will continue as stated elsewhere in this Lease Agreement. If the premises are not rehabilitated or repaired within a reasonable period of time, this Lease Agreement will immediately terminate. The LESSEE has the option to immediately cancel this Lease Agreement under such adverse circumstances and vacate the unit. 22. PREPAYMENT OF OR DEFAULT ON RURAL DEVELOPMENT LOAN: In the event of borrower prepayment of Rural Development loan, all leases will be handled in accordance with applicable Rural Development regulations. No tenant contributions may be increased by reason of prepayment for the term of the lease. An escalation clause for rent changes approved by Rural Development for budgetary reasons will continue to be applicable. Should any federal subsidies paid to the borrower on behalf of the LESSEE be suspended or canceled due to a monetary or non-monetary default by the borrower, the tenant contributions shall not change over that which would have been required had the subsidy remained in place. The terms of the lease will remain in effect until the date of acceleration and/or foreclosure is resolved. 23. PERSONAL POSSESSIONS: The LESSEE s tenancy still exists during the time that his/her personal possessions remain in the apartment even after the household has moved out with the intent to vacate or leave the complex. The LESSEE s tenancy exists until such time as the personal possessions have been removed voluntarily or by legal means in accordance with State or local law. The LESSEE will be held liable for rent on the apartment until such time as his/her personal possessions are removed. 24. ABANDONED PROPERTY: Any abandoned property of the LESSEE will be disposed of in accordance with State law. Upon abandonment of the premises, prior to the termination of the lease, LESSOR may seize the non-exempt movables of the LESSEE to secure both past due and future rent. Upon termination of the lease, LESSOR may but shall not be obligated to remove LESSEE s abandoned belongings and to store them at the LESSEE s expense. 25. LEGAL FEES: Should legal action become necessary, the LESSOR may seek to hold the LESSEE responsible for payment of court costs and reasonable attorney s fees upon resolution in favor of LESSOR. 26. MODIFICATION OF LEASE PROVISIONS: This lease may only be modified in accordance with the applicable Rural Development regulations and with prior written approval by Rural Development. 27. OCCUPANTS: The LESSEE shall not assign this Lease, sublet the premises, give accommodations to others outside the household, or permit the use of the premises for any purpose other than as a private dwelling which is the permanent residence of the following occupants: NAME (Last, First, Middle Initial) DATE OF BIRTH SOCIAL SECURITY NUMBER
Page 9 28. CHANGES IN OCCUPANCY: The LESSEE agrees to the following conditions regarding occupancy: A. The LESSEE agrees that only those persons listed above are authorized to occupy the apartment. LESSEES agrees to immediately or within 30 days notify the LESSOR of any change in household size and/or composition for purposes of recertification, possible rent changes and determining continued eligibility for residency. B. The LESSEE agrees that any person(s) desiring occupancy must FIRST be processed by the LESSOR according to the residential admissions criteria posted in the rental office PRIOR to occupying any unit. Anyone who does not qualify under these standards WILL NOT be allowed to reside in the apartment. C. For the purposes of this agreement and in accordance with the federal guidelines, the LESSOR may request proof of domicile when a visitor(s) makes reoccurring visits or one continuous visit of 14 days and/or nights in a 45 days period without prior notification. The LESSOR may take action as set forth in this lease if the LESSEE cannot provide sufficient evidence that the visitor(s) has another domicile. D. The LESSEE agrees that if the apartment should become over-crowded or underutilized or should the LESSEE no longer meet the eligibility requirements with regards to occupancy during the term of this lease, he/she will be required to vacate the apartment at the end of the lease term unless eligibility can be established following specified steps such as moving to an appropriate size unit at his/her expense or unless an exception is granted. Complex occupancy policies are posted in the rental office and are based on the guidelines set forth in the Fair Housing Act of 1988 and any applicable State or local laws. E. The LESSEE understands that a change in the number of persons residing in the apartment may affect the monthly rental payment or the amount of benefits received. The LESSEE further understands that failure to report such changes may result in loss of benefits, lease termination, and/or demand for repayment of benefits or rental subsidies improperly received. MISREPRESENTATIONS BY THE LESSEE OF THE FACTS UPON WHICH ELIGIBLITY DWELLING SIZE, OR RENT DETERMINATIONS ARE BASED SHALL CONSTITUTE MATERIAL NONCOMPLIANCE AND MAY RESULT IN TERMINATION OF THIS LEASE BY THE LESSOR AND THE LESSEE MAY BE REQUIRED TO VACATE THE UNIT. THE LESSEE MAY ALSO BE SUBJECT TO CRIMINAL CHARGES FOR SUCH MISREPRESENTATION. 29. OTHER PROVISIONS: 30. ADDENDA TO THE LEASE AGREEMENT: The LESSEE agrees that certain documents, including but not limited to the following, are considered addenda to this lease and are enforceable under the terms therein: Security Deposit Agreement, Rules and Regulations, Repair, Cleaning & Damage Cost List, Housing Allowances for Utilities, Tenant Certification Form RD 3560-8 or other Tenant Certification Form, Addenda for Ineligible Residents, Addenda for Ineligible (LOPE) Residents, Occupancy Standards/Handicap Unit Lease Addendum set forth by the LESSOR, and Tenant Grievance Procedures.
Page 10 THIS LEASE IS A BINDING LEGAL CONTRACT. PLEASE READ THE ENTIRE AGREEMENT BEFORE SIGNING. LESSEE: DATE: LESSEE: DATE: LESSOR: By: Manager DATE: