Income Restricted Apartment Lease

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jjoiner21

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I am currently in a lease at an income restricted property. In order to qualify for this aparment my income had to be a certain amount; however, I will be in violation of this income requirement at the end of the month due to new employment. I would like to terminate my lease under this clause and I am wondering if I can. The clause states, "If Resident has supplied information to the Manager by means of a rental application or similar instrument, Resident covenants that Resident knowingly and voluntarily gave all such information, and if such information proves to be false or misleading, Resident shall have committed a material breach of this lease that Resident shall not be permitted to cure. In cases of tax-exempt bond-financed properties Resident hereby certifies the accuracy of the statements made in all documents previously executed, and further agrees that the family income, family composition and other eligibility requirements set forth in the Certification of Tenant Eligibility and Income Verification (collectively known as the "Certificate") shall be deemed substantial and material obligations of Resident's tenancy; that Resident will promptly comply with all requests for information with respect thereto from the Manager, the Owner of the Apartment Community or any Mortgagee; that Resident's failure to provide accurate information in the Certificate or Resident's refusal to comply with a request for information with respect thereto shall be deemed a material default by Resident which Resident shall not be permitted to cure; and that Resident's failure to furnish accurate and current information on the Certificate could subject Resident to civil liability. Resident agrees that this Lease shall become null and void if it becomes known to the Owner of the Apartment Community or Manager that continuation of Resident's occupancy will result in the interest on any tax-exempt bonds utilized to finance the construction of the Apartment Community becoming subject to federal income taxation, or in violation of the state statue permitting the issuance of such bonds." This is the full clause which is listed in the lease agreement. My income will increase at the end of the month, which means that I am no longer meeting the income requirements. I want to know if this clause will allow me or the complex the void my lease. This property is income restricted and they get some kind of federal money or they received federal funds through a tx bond to build these apartments.
 
It looks like you will be able to get out of this lease without any problems. You should contact management as soon as you can to inform them that your income status will change as of Sept. 1st and consequently, you will no longer qualify to live there. Good Luck!
 
I disagree...your change in income will probably not release you from your lease. You will need to speak with your landlord about the requirements of the specific program you are in. There are many bond programs/tax exempt programs that do not require the submission of new income information except at renewal, regardless if the new income would put you over the limit. There are also bond programs/tax exempt programs that allow a tenant to exceed the initial income restriction at renewal by up to 140%. Example: at new move in the maximum income limit for your household was $32,500 at renewal it could increase to $45,500.
 
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