NJ Section 8 Question

[Account Closed]

I have a potential tenant for my 3 bed house in SJ.  The rent is $1,700.  

She gave me letter from NJ Dept of Community Affairs Housing Assistance Program.  These are the figures she has from a letter that was sent to her previous landlord.

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Total Monthly Rent: $1400

Amount housing assistance the program pays to owner: $1227

Amount of rent you pay: $173

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I the prior landlord drafted 2 leases one for $1400 (which was sent to HUD) and another $300 between them. She want me to do the same thing. Am I allowed to do this?