It is the decision of the lead agency and/or provider if their agreement with clients includes recovering security deposit funds if they move.
From HUDhre: HUD is giving grantees the discretion to determine how to handle security deposits. The grantee may recover the security deposit, in which case it must be treated as program income. Alternately, the grantee may allow the household to keep the deposit and use it towards their next unit. Finally, the landlord or property management company may keep a portion of the deposit if it is needed to pay for costs incurred by the tenant such as damages to the unit.
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