NSP FAQ
Q

What is a bona fide tenant under NSP?

Date Published: October 2012

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A

The Unified NSP1 and NSP3 Notice states, "A lease or tenancy shall be considered bona fide only if: (i) the mortgagor under the contract is not the tenant; (ii) the lease or tenancy was the result of an arm's length transaction; and (iii) the lease or tenancy requires the receipt of rent that is not substantially less than fair market rent for the property."

Note: Relocation and tenant protection can be a difficult subject for many grantees and mistakes can lead to costly findings. It is recommended that grantees contact their regional relocation specialist or HUD field office for guidance.


Tags: NSP Program Requirements - Tenant Rights and Tenant Protections

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FAQ ID:

971