HUD Interim Final Rule for Nonpayment of Rent
On October 7, 2021, the US Department of Housing and Urban Development (HUD) published in an Interim Final Rule titled “Extension of Time and Required Disclosures for Notification of Nonpayment of Rent.” The same day, HUD issued Supplemental Guidance to the Interim Final Rule. The Interim Final Rule goes into effect on November 8, 2021.
For covered subsidized housing the rule requires:
- 30 days’ notice of termination for nonpayment; and
- Disclosure to tenants regarding rental assistance with a termination notice.
30-Day Notice Requirement
On November 8th and beyond, Public Housing Authorities (PHA) administering a public housing program and owners of project-based rental assistance properties must provide no less than 30 days advanced notification of lease termination due to nonpayment of rent.
Covered Properties
The rule applies to PHAs as well as the following programs:
1. Section 8 Project Based Rental Assistance (PBRA)
- New Construction
- State Housing Agency Program
- Substantial Rehabilitation Section 202/8
- Rural Housing Services Section 515/8
- Loan Management Set-Aside (LMSA)
- Property Disposition Set Aside (PDSA)
- Rental Assistance Demonstration (RAD)
2. Section 202/162 Project Assistance Contract (PAC)
3. Section 202 Project Rental Assistance Contract (PRAC)
4. Section 202 Senior Preservation Rental Assistance Contract (SPRAC)
5. Section 811 Project Rental Assistance Contract
Notably, the rule does not apply to the PHAs administering the Housing Choice Voucher (HCV) program, or to families assisted by the HCV program, including Project-based Vouchers (PBV).
Duration
The Interim Final Rule extends the notification of nonpayment of rent for affected programs to at least 30-days during the period for which HUD determines that a national emergency requires additional time for families to be able to secure available funding. This determination remains in effect until a subsequent HUD notice is issued rescinding the determination. That is, the 30-day notice requirement for nonpayment terminations will last until further notice from HUD.
Additional Disclosures to Tenants about Available Rent Assistance
HUD is also requiring that covered properties include information about the Emergency Rental Assistance (ERA) program with any termination notice.
For the additional information required related to available funding, HUD requires all such notices to include, at a minimum, the language as provided in the attached Appendix, updated to reflect the entity issuing the notification and with the appropriate link to the local ERA grantee.
Finally, for the public housing program only, the rule requires PHAs to inform all public housing tenants that the extended timeframe for notification of lease termination due to nonpayment of rent is in effect, and that families will be provided information on available funding in that 30-day notification.
This article is not intended as legal advice. Please obtain advice of an attorney for any policy changes or decisions regarding Landlord-Tenant matters.