Protecting Yourself with Clear Lease Nonrenewal Procedure

An all-too-common scenario in tax credit site management is the household that becomes uncommunicative at recertification time for mixed-income buildings. You've probably encountered such households before: Multiple notices to make an appointment for a recertification interview are shrugged off and ignored.

While you want to make every effort to work with qualified households and maintain a long-lasting relationship, it's also your job to make sure that residents who are no longer eligible do not jeopardize the owner's tax credits. Failure to recertify is one of the most common reasons for not renewing a tax credit household's lease.

The nonrenewal procedure is a necessary step to ensure that the unit stays in compliance, but it can be a sensitive issue for all concerned. Households may feel that they're being discriminated against or wrongfully evicted. It's important to take the proper legal precautions to ensure that you don't expose yourself to a lawsuit.

Once you have decided that you have good cause for not renewing a lease, an important legal step you must take is to inform the household in writing. Click here for a model 60-day notice you can take to your site's lawyer and adapt for your site's situation.