LEASEAGREEMENT

[Development Name]

THIS LEASEAGREEMENT is entered into on the       day of      ,      , between

     , LANDLORD, and     , TENANT, for a dwelling unit identifiedas      , located at the

following address:     , in the apartment project known as      .

The development of which the dwelling unit is a part has been financedby the Michigan

State Housing DevelopmentAuthority (the "Authority") andis subject to a Mortgagemade by

LANDLORD to theAuthority.

LANDLORD andtheAuthority have enteredinto a HousingAssistance Payments

occupied by TENANT, known as the Contract Rent.In addition, a Utility Allowancehas been

established by HUD for the unit. The Contract Rent and the Utility Allowancemake up the total

housing cost for the dwelling unit, which is known as the Gross Rent.

That portion of the total housing cost for the dwelling unit, or the Gross Rent, to be

contributedby TENANT will not exceed 30% of TENANT's adjusted household income. This is

known as the "Total Tenant Payment."A recertification of TENANT's income and family

composition will be obtainedat least oncea year, and whenever else required by HUD, and

TENANT's Total Tenant Payment will be adjusted by LANDLORD to reflect income andfamily

composition changesshown by any recertification.

The rent payable by TENANT to LANDLORD under this Leasewill be determinedby

on       ,       , with automatic renewals as specified in Section 21, or untilterminated in accordance

with Section 24.

Use the following if any utilities (in addition to telephone, cable TV and/or satellite dish service) are to be

paid separately by the tenant:

2.Rent andOther Charges.

a.The Gross Rent established for the dwelling unit is $     per month, and the

Contract Rent is $     per month.

b.The total amount to be contributed by TENANT toward rent and utilities is

$     per month (the “Total Tenant Payment”). Because TENANT is required to pay separately for

some utilities (see Section 3 below), a UtilityAllowance of$      per month has beenestablished by

on or before the first calendar day of each month to LANDLORD at:       or to any other person or at

any other addressifLANDLORD requests TENANT to do so in writing.Any payment of Tenant Rent due

from TENANT that is receivedafter the 5th calendar day of the month in which it is due shall be subject

to a late charge of $     for administrative costs. [Late charge cannot exceed $30 for the month]

LANDLORD mayalso collecta fee of $     on the second and any additional time a rent check is

bounced or returned "NSF".

c.The difference between the Contract Rent for the dwelling unit and the Tenant

Rent payable every month by TENANT to LANDLORD is $      , which will be paid by the Authority on

behalf of TENANT as a Housing Assistance Payment.

d.The Gross Rent, the Contract Rent, the UtilityAllowance and the Housing

the monthly Contract Rent:

2.Rent andOther Charges.

a.The Contract Rent established for the dwelling unitis $     per month. The

Contract Rent is equal to the GrossRent.

b.The total amount to be contributed by TENANT toward rent and utilities is

$     per month (the “Total Tenant Payment”). Because all utilities (except telephone and cable TV)

are included in the rent payable for the dwelling unit, there is no UtilityAllowance and the amount of rent

TENANT must pay to LANDLORD every month is equal to the Total Tenant Payment (the "Tenant Rent").

TENANT must pay the Tenant Rent in advance on or before the first calendar day of each month to

LANDLORD at:      or to any other person or at any other address if LANDLORD requests TENANT to

behalf of TENANT as a Housing Assistance Payment.

d.The Contract Rent and the Housing Assistance Payment are subject to change

by the Authorityin accordance with HUD regulations. TENANT will be notified in writing of any change

in the Contract Rent or the Housing Assistance Payment that results in an increase or decrease in the

Tenant Rent in accordance with Section 4 below. LANDLORD willnotify TENANT ofany other changes

in the Contract Rent or the Housing Assistance Payment by sending TENANT a copy of the revised

HUD-50059.

Use the following if any utilities (in addition to telephone, cable TV and/or satellite dish service) are to be

paid separately by the tenant:

3.Utilities. The Contract Rent for the dwelling unit includes the cost of the following

utilitydue to reasonsoutside the control of LANDLORD.

Use the following if all utilities (except telephone, cable TV and/or satellite dish service) are included in

the monthly Contract Rent:

3.Utilities. The Contract Rent for the dwelling unit includes the cost of all utilities (except

telephone, cable TV and/or satellite dish), including gas, electric, water and sewer. LANDLORD agrees

to make these utilities continuously available to TENANT and in reasonable amounts at no additional

charge to TENANT. Telephone, cable TV and satellite dish service are not considered utilities by HUD,

and TENANT shall be responsible for the payment of telephone service to the dwelling unit and cable, if

any. TENANT acknowledgesthat interruptions in the delivery of utilities does occur, and agrees that

LANDLORD will not be liable to TENANT for any loss or inconvenience resulting from the temporary

interruption ofany utilitydue to reasonsoutside the control ofLANDLORD.

4.Changes in Tenant Rent. TENANT agrees that the Tenant Rent to be paid by TENANT

computing TENANT's Tenant Rent for the unit;

c.The income, the number of personsin TENANT's household, or exceptional

medical or other unusual expenses considered in the TENANT's Tenant Rent change, and HUD

proceduresprovide that the Tenant Rent or Housing Assistance Payment be adjusted to reflect the

change;

d.Changes in the Tenant Rent or Housing Assistance Payment are required by

HUD recertification or subsidy termination procedures;

e.HUD proceduresfor computing the Tenant Rent or Housing Assistance Payment

(1)Information on his or her income,

(4)Other information required by LANDLORD for purposes ofthis Lease; or

g.The Contract betweenthe LANDLORD and the Authority is terminated for any

reason.

If TENANT's Tenant Rent is increased becauseof failure to provideinformation to LANDLORD

as required by subsection 4.f, then the increase shall be retroactive to the date TENANT was required to

report the information to LANDLORD and TENANT agrees to repay any overpayment of Housing

Assistance Payment that resulted from TENANT's failure to provide the information within the required

time frame. If TENANT's Tenant Rent is increased for any other reason, LANDLORD must give TENANT

thirty(30) days' advance written notice before the increase will be effective. If TENANT's Tenant Rent

decreases for any reason, the decreasewill be effectiveon the first day of the month following the action

Sections 5, 6 or 16. The Notice will state the newamount of Tenant Rent that TENANT is required to

pay, the date the new amount is effective,and the reasons for the change. The Notice will also advise

TENANT that he/she may meet with LANDLORD to discussthe rent change. In the event that the

Contract is terminated for any reason, the change in Tenant Rent shall be effective at the end ofthe last

month for which a Housing Assistance Payment was receivedon TENANT’s behalf.

5.Income and Family Composition Certification and Recertification. Each year

around the      day of       , LANDLORD will request TENANT to report the income and composition

of TENANT's household and to supply any other information required by HUD or LANDLORD for the

purposes of determining the Tenant Rent to be paid by TENANT and the Housing Assistance Payment, if

any. TENANT agrees to provide accurate statements ofthis information and to do so by the date

specified in LANDLORD's request. LANDLORD willverify the information supplied by TENANT and use

the verifiedinformation to re-compute the amounts of the Tenant Rent and Housing Assistance Payment,

ifany. This obligation is in addition to TENANT's obligation to report other changes in the income or

composition of TENANT's household as required by Section 7 below. TENANT agreesto sign a new

TENANT requests such a meeting, LANDLORD agrees to meet with TENANT and discuss how

computed.

TENANT willpromptly provide LANDLORD with any letter or other notice from HUD to a

member TENANT’shousehold that provides information relating to the amount of household income or

verification of household incomein accordance with HUD requirements.Failure to do so may constitute

material non-compliance with the terms of this Lease and result in a termination of this Lease by

LANDLORD as permitted in Section 23 below.

6.Failure to Submit RecertificationInformation/Removal of Subsidy. If TENANT does

not submitthe required recertification information by the date specified in LANDLORD's request,

LANDLORD mayimpose the penalties described in this section. LANDLORD may implement the

LANDLORD may,if TENANT fails to submit recertification information:

the entire Contract Rent for the dwelling unit; or,

b.Implement any increase in Tenant Rent resulting from the recertificationprocess

without providing the 30-day notice otherwiserequired by Section 4 of this Lease.

LANDLORD agrees to give TENANT written notice of the proposed termination. The notice will

advise TENANT that, during the ten (10) calendar days following the date ofthe notice, he/she may

request to meet with LANDLORD to discuss the proposed termination ofassistance. If TENANT

requests a discussion of the proposed termination, LANDLORD agreesto meet with TENANT.

Termination of assistance shall not affect TENANT's other rights under this Lease, including the

right to occupy the unit.Assistance may be subsequently reinstated of TENANT submits the income or

b.An adult member ofthe household who wasreported as unemployed or as

having no income on the most recent certification or recertification obtains employment or receives

income from any source.

c.TENANT's household income cumulativelyincreasesby $200 or more per

month.

If TENANT does not adviseLANDLORD of any ofthese changes betweenrecertifications,

LANDLORD may increase the Tenant Rent to the Contract Rent, but only in accordance with the time

frames and administrative proceduresset forth in HUD regulations, handbooks and instructions. Failure

to advise LANDLORD of changes immediately willbe considered materialnoncompliance with this

Leaseand may be grounds for termination and eviction.If TENANT does not report interim changes in

household incomeor other factors as required by this Section 7, and as a result TENANT pays a lower

Tenant Rent than the amount required by HUD formulas, TENANT agreesto reimburse LANDLORD for

considered in calculating TENANT’s rent that might decrease the amount of Tenant Rent paid by

will last less than one month, LANDLORD will verifythe information and make the appropriate reduction

in Tenant Rent. If,however, TENANT’s income willbe partiallyor fully restored within two months,

LANDLORD maydelay the certification process until the new income is known, but the rent reduction will

be retroactive and LANDLORD may not evict TENANT for nonpayment of any portion ofthe Tenant Rent

due during the period betweenthe date the decreasewasreported and the completion of the certification

process. Failure to pay within thirty (30) daysof receiving written notice ofany Tenant Rent past due for

that timeperiod is grounds for termination of this Lease.

TENANT may request a meeting with LANDLORD to discuss any change in the Total Tenant

Payment, Tenant Rent or Housing Assistance Payment resulting fromthe recertification processing.If

TENANT requests such a meeting, LANDLORD agrees to meet with TENANT and discuss how

8.Members of Householdand Occupancy. TENANT must live in the dwelling unit and

the dwelling unit must be TENANT's only place ofresidence. TENANT shall usethe unit only as a

private dwelling for himself/herselfand the household members listed below. As of the date of this

Lease, TENANT agrees that only the following household members may live in the unit:

NameRelationshipSocial Security No.Date of Birth

                    

                    

                    

                    

TENANT agrees that except for family members whoare the legaldependents of TENANT, no

other persons, including a spouse of TENANT or any other family member, will be permitted to join

TENANT's household without the prior written approvalof LANDLORD. Before movingin, any proposed

newmember of TENANT's household whois 18 years of age or older must meet the same tenant

screening criteriaas other new applicants.

Upon any change in the members of TENANT's household, TENANT will advise LANDLORD

immediately and will recertify as to household income and family composition. TENANT agrees to enter

into a new lease or an addendum to this Lease to reflectthe change in TENANT's household.

9.Terminationof Housing Assistance Payments. TENANT understands that the

by Sections 4 or 6 within ten (10) calendar days after receipt of LANDLORD's notice of intent to

terminate TENANT's Housing Assistance Payments.

b.The Total Tenant Payment that TENANT would be required to pay towards rent

and utilities under HUD rules and regulations equals the Gross Rent for the dwelling unit.

LANDLORD agrees to give TENANT written notice of the proposed termination. The notice will

advise the TENANT that, during the ten (10) calendar days following the date of the notice, he/she may

request to meet with LANDLORD to discuss the proposed termination ofHousing AssistancePayments.

If TENANT requests a discussion of the proposed termination, LANDLORD agreesto meet with TENANT

within       days prior to termination.

subsequently be reinstated if TENANT submits income information or reports or other data required by

familycomposition and other TENANT eligibilityrequirements are substantial and materialwith respect

to the amount of rent that TENANT is obligated to pay, and TENANT's right to occupy the unit. If

TENANT submits false information on any application, certification or request for interim adjustment, or

does not report interimchangesin household incomeor other facts as required by Section 7 ofthis

Lease, andas a result TENANT pays a lower Tenant Rent than the amount required by HUD formulas,

TENANT agrees to reimburse LANDLORD for the difference between the Tenant Rent he/sheshould

have paid and the rent he/she was charged. TENANT is not required to reimburse the LANDLORD for

undercharges caused solely by LANDLORD's failure to follow HUD procedures for computing rent or

Housing Assistance Payments.

applicable statutory penalty for false or incorrect statements.

12.Tenant's Agreements with Landlord. On TENANT's behalf, and on behalfof the

members of TENANT's household, TENANT agrees to:

a.Pay TENANT's monthly Tenant Rent promptlywhen due, without any obligation

on the part of LANDLORD to demand it;

b.Keep the dwelling unit and all common areasinside and outside the building in a

clean and sanitary condition, and comply with all applicable health laws and the Housing Quality

Standards established by HUD with respect to the dwelling unit and common areas, and to save

LANDLORD harmless from all fines, penalties, and costs for violations or noncompliance.Alllitter

containers must be kept clean and the areas surrounding such containers kept free oflitter, and all

garbage and other refuse must be wrapped or placed in bags. All garbage and refuse shall be stored and

needed repairs, extermination of insects and pests, elimination ofmold, mildew, water leakage or

reasonable hours at reasonable times and, except in casesof emergency (which are defined as danger

to life or serious danger to property), with reasonable advance notice to TENANT. In no case shall an

entry intrude into TENANT's personal property;

d.Comply with the house rules and regulations governing the use of community

facilities (communitybuilding and swimming pool) and to giveup the privilege of using the facilities for

failure to comply with such rules and regulations; and be responsible for damage to the structure or

interiors of the facilities due to the lack ofproper supervision of TENANT's dependents or guests;

e.Not use the dwelling unit for any purpose deemed hazardousby an insurance

company carrying insurance on the development;

g.Make no changes in any fixture or wiring within the dwelling unit;

painting, decorating, changing locks, installing wall coverings; nor place fixtures, signsor fences in or

TENANT also agrees to remove any decorations, fixtures, signs or fences without damage to the

dwelling unit upon movingout, ifrequested to do so by LANDLORD. Tacks or nails may be put on the

walls for decorative purposesonly as long as they do not cause structural damage and TENANT

removes them and repairs any holes before movingout ofthe dwelling unit;

i.Not keep animals or pets of any kind in the dwelling unit other than those

expressly permitted in writing by LANDLORD, or, if the Development has been designated as an elderly

project, as permitted in Section 29, or, if TENANT is disabled, as a reasonable accommodation to

TENANT’s disabilityor TENANT’svisitors with disabilities as permitted in Section 30. LANDLORD will

allow animals to accompany visitors with disabilities who need such animals as an accommodation to

l.Not waste utilities furnished by LANDLORD nor use utilities or equipment for any

improper or unauthorized purpose;

m.Not assign this Lease, sublet the dwelling unit,give accommodations to any

roomers or lodgers, or allow other family members or visitors to stay in the unit for more than two (2)

weeks in any calendar year without the written consent of LANDLORD, or permitthe use of the dwelling

unit for any purpose other than as a privatedwelling solely for TENANT and TENANT's household;

n.Not permit any personother than the household members listed in Section 8 to

live in the dwelling unit.For purposes of this Lease, any person spending more than three (3) nights per

week in the unit on a regular or repeated basis will be considered to live in the dwelling unit;

o.After TENANT has given notice of intent to move, or hasmovedfrom the unit,

to replace TENANT's key to the dwelling unit.

13.Size of Dwelling. TENANT understandsthat HUD requires LANDLORD to assign units

at the development in accordance with LANDLORD's written occupancy standards. These standards

include consideration of unit size, relationship offamilymembers, age and sex of family members and

familypreference. If TENANT is or becomes eligible for a different size unit and the required size unit

becomes available, TENANT agreesto either:

a.Move within thirty(30) days after LANDLORD notifies TENANT that a unitof the

required size is available; or

b.Stay in the same unit and pay the HUD-approved Contract Rent for that unit.

the unit are in good working order, except as noted in the Inventory Checklist. LANDLORD will not be

noted on the Inventory Checklist and agreed to by LANDLORD, or unless required by Michigan or local

law.

16.Reasonable Wearand Tear. TENANT agreesthat when he/she moves out of the

dwelling unit, he/she will turn the dwelling unit over to LANDLORD in as good condition as when

TENANT moved in,reasonable wear and tear excepted. TENANT will not be responsible for damage

resulting from reasonable wear and tear. TENANT agrees to pay for the cost of any cleanup, repairs, or

replacements needed due to the carelessness, misuse or neglect of the dwelling unit by TENANT or

TENANT's family members or visitors. If TENANT fails to pay LANDLORD for any such costs within

thirty(30) days of notice from LANDLORD, TENANT's failure to pay will be considered material

NOTICE TO TENANT: YOU MUST NOTIFYYOUR LANDLORD IN

WRITING WITHIN 4 DAYS AFTERYOU MOVE OFA FORWARDING