For communities that have both Rural Development Funding and Low Income Housing Tax Credits, if the tenant moves out before the expiration of the initial one year lease we are to charge rent through the end of the lease. This allows us to stay in compliance with the Low Income Housing Tax Credit program which restricts transient use of the premises, though the concept of ‘continued responsibility’ beyond the move-out date does potentially run contrary to Rural Development’s policies on move-out rights of the occupant.
After the initial lease term, the resident of such a property can give notice-to-vacate at anytime and we must accept that notice without exception. Specifically, no lease buy-out fee can apply and the resident cannot be held beyond their 30 day notice.
If you have further questions please contact the compliance department.