30-Day Notification Requirement Prior to Termination of Lease for Nonpayment of Rent, 83877-83887 [2023-26348]
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Federal Register / Vol. 88, No. 230 / Friday, December 1, 2023 / Proposed Rules
Authority: 49 U.S.C. 106(f), 106(g); 40103,
40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR,
1959–1963 Comp., p. 389.
§ 71.1
[Amended]
2. The incorporation by reference in
14 CFR 71.1 of FAA Order JO 7400.11H,
Airspace Designations and Reporting
Points, dated August 11, 2023, and
effective September 15, 2023, is
amended as follows:
■
Mary Quatroche, Office of Disability
Policy, Social Security Administration,
6401 Security Boulevard, Baltimore,
Maryland 21235–6401, (410) 966–4794,
or regulations@ssa.gov. For information
on eligibility or filing for benefits, call
our national toll-free number, 1–800–
772–1213, or TTY 1–800–325–0778, or
visit our internet site, Social Security
Online, at https://
www.socialsecurity.gov.
Paragraph 6005 Class E Airspace Areas
Extending Upward From 700 Feet or More
Above the Surface of the Earth.
SUPPLEMENTARY INFORMATION:
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Correction
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AGL ND E5 Mott, ND [Establish]
Mott Municipal Airport, SD
(Lat 46°21′33″ N, long 102°19′42″ W)
That airspace extending upward from 700
feet above the surface within a 6.9-mile
radius of Mott Municipal Airport.
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Issued in Fort Worth, Texas, on November
27, 2023.
Martin A. Skinner,
Acting Manager, Operations Support Group,
ATO Central Service Center.
[FR Doc. 2023–26352 Filed 11–30–23; 8:45 am]
BILLING CODE 4910–13–P
SOCIAL SECURITY ADMINISTRATION
We published a proposed rule, on
September 29, 2023, (88 FR 67135). We
propose revising the time period that we
consider when determining whether an
individual’s past work is relevant for
purposes of making disability
determinations and decisions. That
document inadvertently contained a
sentence in proposed 20 CFR 416.965(a)
on page 67148 in the 2nd column,
beginning at line 23, which read, ‘‘The
five-year guide is intended to ensure
that remote work experience is not
currently applied.’’ This correction
removes that sentence.
■ Correct § 416.965(a) by removing the
above sentence. The revised text to read
as follows:
§ 416.965 Your work experience as a
vocational factor. [Corrected]
[Docket No. SSA–2023–0024]
(a) General. Work experience means
skills and abilities you have acquired
through work you have done which
show the type of work you may be
expected to do. Work you have already
been able to do shows the kind of work
that you may be expected to do. We
consider that your work experience
applies when it was done within the last
five years, lasted long enough for you to
learn to do it, and was substantial
gainful activity. We do not usually
consider that work you did more than
five years before the time we are
deciding whether you are disabled
applies. A gradual change occurs in
most jobs so that after five years it is no
longer realistic to expect that skills and
abilities acquired in a job done then
continue to apply. If you have no work
experience or worked only ‘‘off-and-on’’
or for brief periods of time during the
five-year period, we generally consider
that these do not apply. If you have
acquired skills through your past work,
we consider you to have these work
skills unless you cannot use them in
other skilled or semi-skilled work that
you can now do. If you cannot use your
skills in other skilled or semi-skilled
work, we will consider your work
background the same as unskilled.
Intermediate Improvement to the
Disability Adjudication Process:
Including How We Consider Past
Work; Correction
Social Security Administration.
Notice of proposed rulemaking;
correction.
AGENCY:
ACTION:
On September 29, 2023, we
published a proposed rule entitled
Intermediate Improvement to the
Disability Adjudication Process:
Including How We Consider Past Work.
The proposed rule inadvertently
contained a sentence of regulatory text
which should have been removed. We
are publishing this document to correct
the error.
DATES: December 1, 2023.
ADDRESSES: Mary Quatroche, Office of
Disability Policy, Social Security
Administration, 6401 Security
Boulevard, Baltimore, Maryland 21235–
6401, or regulations@ssa.gov.
For information on eligibility or filing
for benefits, visit our internet site,
Social Security Online, at https://
www.socialsecurity.gov.
SUMMARY:
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However, even if you have no work
experience, we may consider that you
are able to do unskilled work because it
requires little or no judgment and can be
learned in a short period of time.
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Faye I. Lipsky,
Federal Register Liaison, Office of Legislation
and Congressional Affairs, Social Security
Administration.
[FR Doc. 2023–26180 Filed 11–30–23; 8:45 am]
BILLING CODE 4191–02–P
20 CFR Part 416
RIN 0960–AI83
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FOR FURTHER INFORMATION CONTACT:
83877
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
24 CFR Parts 247, 880, 884, 886, 891,
and 966
[Docket No. FR–6387–P–01]
RIN 2501–AE09
30-Day Notification Requirement Prior
to Termination of Lease for
Nonpayment of Rent
Office of the Secretary, U.S.
Department of Housing and Urban
Development (HUD).
ACTION: Proposed rule.
AGENCY:
Under this proposed rule,
when tenants who reside in public
housing or in properties receiving
project-based rental assistance (PBRA)
face eviction for nonpayment of rent,
public housing agencies (PHAs) and
owners would need to provide those
tenants with written notification at least
30 days prior to the commencement of
a formal judicial eviction procedure for
lease termination. For purposes of this
proposed rule, PBRA includes projects
in the following programs: Section 8
Project-Based Rental Assistance, Section
202/162 Project Assistance Contract,
Section 202 Project Rental Assistance
Contract (PRAC), Section 811 PRAC,
Section 811 Project Rental Assistance
Program (811 PRA), and Senior
Preservation Rental Assistance Contract
Projects (SPRAC). This proposed rule
would curtail preventable and
unnecessary evictions by providing
tenants with time and information to
help cure nonpayment violations.
DATES: Comments are due by January
30, 2024.
ADDRESSES: Interested persons are
invited to submit comments regarding
this proposed rule. There are two
methods for submitting public
comments. All submissions must refer
to the above docket number and title.
1. Submission of Comments by Mail.
Members of the public may submit
comments by mail to the Regulations
SUMMARY:
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Division, Office of General Counsel,
Department of Housing and Urban
Development, 451 7th Street SW, Room
10276, Washington, DC 20410–0500.
Due to security measures at all Federal
agencies, however, submission of
comments by standard mail often results
in delayed delivery. To ensure timely
receipt of comments, HUD recommends
that comments submitted by standard
mail be submitted at least two weeks in
advance of the deadline. HUD will make
all comments received by mail available
to the public at www.regulations.gov.
2. Electronic Submission of
Comments. Interested persons may
submit comments electronically through
the Federal eRulemaking Portal at
www.regulations.gov. HUD strongly
encourages commenters to submit
comments electronically. Electronic
submission of comments allows the
commenter maximum time to prepare
and submit a comment, ensures timely
receipt by HUD, and enables HUD to
make them immediately available to the
public. Comments submitted
electronically through the
www.regulations.gov website can be
viewed by other commenters and
interested members of the public.
Commenters should follow the
instructions provided on that site to
submit comments electronically.
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Note: To receive consideration as public
comments, comments must be submitted
through one of the two methods specified
above. All submissions must refer to the
docket number and title of the rule.
No Facsimile Comments. Facsimile
(FAX) comments are not acceptable.
Public Inspection of Public
Comments. All properly submitted
comments and communications
submitted to HUD are available for
public inspection and copying between
8 a.m. and 5 p.m. weekdays at the above
address. Due to security measures at the
HUD Headquarters building, an advance
appointment to review the public
comments must be scheduled by calling
the Regulations Division at 202–708–
3055 (this is not a toll-free number).
HUD welcomes and is prepared to
receive calls from individuals who are
deaf or hard of hearing, as well as
individuals with speech or
communication disabilities. To learn
more about how to make an accessible
telephone call, please visit https://
www.fcc.gov/consumers/guides/
telecommunications-relay-service-trs.
Copies of all comments submitted are
available for inspection and
downloading at www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
For Public and Indian Housing:
Danielle Bastarache, Deputy Assistant
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Secretary for Public Housing and
Voucher Programs, 451 7th Street SW,
Room 4204, Washington, DC 20410,
telephone number 202–402–1380 (this
is not a toll-free number). For a quicker
response, email
publichousingpolicyquestions@hud.gov.
For Multifamily: Ethan Handelman,
Deputy Assistant Secretary for the
Office of Multifamily Housing Programs,
451 7th Street SW, Room 6106,
Washington, DC 20410, telephone
number 202–708–2495 (this is not a tollfree number). For a quicker response,
email mfcommunications@hud.gov.
HUD welcomes and is prepared to
receive calls from individuals who are
deaf or hard of hearing, as well as
individuals with speech or
communication disabilities. To learn
more about how to make an accessible
telephone call, please visit https://
www.fcc.gov/consumers/guides/
telecommunications-relay-service-trs.
SUPPLEMENTARY INFORMATION:
I. Background
Evictions Cause Harm to People and
Families, and the Harm Is Not Equally
Distributed
Eviction has long created housing
instability for renter households and is
linked to long-term negative
consequences, particularly among
children.1 When children are forced to
move from their homes, they often
experience increased health risks and
decreased educational attainment,
owing partly to the disrupted social
networks of these forced moves.2
Eviction filings also put households at
increased the risks of homelessness,
thereby burdening already oversubscribed State resources, including
1 Sandel, Megan, et al. (2018). Unstable housing
and caregiver and child health in renter families.
Pediatrics 141(2); Cutts, Diana B., et al. (2022).
Eviction and household health and hardships in
families with very young children. Pediatrics
150(4).
2 Maxia Dong et al., ‘‘Childhood Residential
Mobility and Multiple Health Risks during
Adolescence and Adulthood: The Hidden Role of
Adverse Childhood Experiences,’’ Archives of
Pediatrics & Adolescent Medicine 159, no. 12
(2005): 1104–1110; Shana Pribesh and Douglas B.
Downey, ‘‘Why Are Residential and School Moves
Associated with Poor School Performance?,’’
Demography 36, no. 4 (November 1, 1999): 521–34;
Kathleen M. Ziol-Guest and Claire C. McKenna,
‘‘Early Childhood Housing Instability and School
Readiness,’’ Child Development 85, no. 1 (January
1, 2014): 103–13; Philip Garboden, Tama Leventhal,
and Sandra Newman, ‘‘Estimating the Effects of
Residential Mobility: A Methodological Note,’’
Journal of Social Service Research 43, no. 2 (March
15, 2017): 246–61; Amy Ellen Schwartz, Leanna
Stiefel, and Sarah A. Cordes, ‘‘Moving Matters: The
Causal Effect of Moving Schools on Student
Performance,’’ Education Finance and Policy, May
18, 2016, 1–47.
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the shelter system.3 Estimates of the
share of evicted households that enter
homeless shelters range from 14 percent
to 25 percent.4 Without a steady
address, low-income households
experience difficulty applying for and
maintaining employment. In fact, lowincome renters who experience a forced
move are more likely to experience a
subsequent job loss.5 Across a range of
health and mental health outcomes
including depression, anxiety, Body
Mass Index (BMI) and mortality, forced
moves resulting from eviction are
impactful.6
People of color, women, and families
with children are more likely to be
evicted. A 2020 study found Black
renters received a disproportionate
share of eviction filings and experienced
the highest rates of eviction filings and
eviction judgments. The study stated
that Black and Latinx female renters
faced higher eviction rates than their
male counterparts.7 Another study
found that almost 15 percent of
American children born in large cities
between 1998 and 2000 had
experienced an eviction by age 15. The
percentage was approximately 29
3 Treglia, Daniel, Thomas Byrne, and Vijaya
Tamla Rai. 2023. ‘‘Quantifying the Impact of
Evictions and Eviction Filings on Homelessness
Rates in the United States.’’ Housing Policy Debate.
4 See Collinson, R., Reed, D. (2018). The Effects
of Evictions on Low-Income Households and
Innovation for Justice. (2020). The Cost of Eviction
Calculator. University of Arizona, James E. Rogers
College of Law. https://law.arizona.edu/evictioncalculator. See alsohttps://www.huduser.gov/
portal/periodicals/em/Summer21/highlight1.html
and National Law Center on Homelessness and
Poverty. (2020); Protect Tenants, Prevent
Homelessness. https://nlchp.org/wpcontent/
uploads/2018/10/ProtectTenants2018.pdf.
5 Desmond, Matthew and Carl Gershenson. 2016.
‘‘Housing and Employment Insecurity among the
Working Poor.’’ Social Problems. 63(1): 46–67.
6 Desmond, M., Gershenson, C., & Kiviat, B.,
Forced Relocation and Residential Instability
Among Urban Renters, Journal of Urban Health,
92(2), 254–267 (2015), https://doi.org/10.1007/
s11524-015-9932-2; Desmond, M., & Shollenberger,
T., Forced Displacement from Rental Housing:
Prevalence and Neighborhood Consequences,
Demography, 52(5), 1751–1772 (2015), https://
doi.org/10.1007/s13524-015-0424-y; Cutts, D.B.,
Darby, M.L., & Billings, J., The Role of Housing
Assistance in Achieving Educational Goals for LowIncome Children, American Journal of Public
Health, 100(S1), S84–S90 (2010), https://doi.org/
10.2105/AJPH.2009.170910; Desmond, M., &
Kimbro, R.T., Eviction’s Fallout: Housing,
Hardship, and Health, Social Forces, 94(1), 295–324
(2015), https://doi.org/10.1093/sf/sou065; HUD
(2021), Affordable Housing, Eviction, and Health,
Evidence Matters, https://www.huduser.gov/portal/
periodicals/em/Summer21/highlight1.html. See
also Desmond, Matthew, Unaffordable America:
Poverty, housing, and eviction, Fast Focus, 22–
2015, University of Wisconsin-Madison, Institute
for Research on Poverty, 4.
7 Hepburn, P., Louis, R., & Desmond, M., Racial
and Gender Disparities among Evicted Americans.
Sociological Science 7, 657 (2020), https://doi.org/
10.15195/v7.a27.
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percent for children living in deep
poverty.8
HUD does not have public data on the
numbers of people in subsidized
housing who experience eviction. There
is also very limited data on how many
people in subsidized households
experience homelessness after eviction.
However, one California survey of
people experiencing homelessness
found that 6% of people experiencing
homelessness had received some form
of subsidy prior to becoming homeless.9
Absent Federal Rules and Laws, Tenants
Are Subject to a Variable Patchwork of
Notice Requirements
HUD-subsidized housing programs
make up one portion of the nation’s
much larger rental housing market.
Absent a Federal rule or statute, housing
in the rental housing market is subject
to the laws of the locality and state
where the housing is located.10 This is
the case for both HUD-subsidized
housing programs and for the nonsubsidized rental housing market.
HUD’s Interim Final Rule Already
Requires 30 Days of Notice for Certain
Subsidized Tenants Facing Eviction for
Nonpayment of Rent
On October 7, 2021, HUD published
an interim final rule titled ‘‘Extension of
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8 Lundberg, I., & Donnelly, L., A Research Note on
the Prevalence of Housing Eviction Among
Children Born in U.S. Cities, Demography, 56(1),
391–404 (2019). https://doi.org/10.1007/s13524018-0735-y.
9 The California Statewide Study of People
Experiencing Homelessness at 33 (June 2023),
available at https://homelessness.ucsf.edu/sites/
default/files/2023-06/CASPEH_Report_62023.pdf.
10 The laws of many States and localities around
notice requirements may be found in a database
created and managed by the Legal Services
Corporation: https://www.lsc.gov/initiatives/effectstate-local-laws-evictions/lsc-eviction-lawsdatabase. See also National Conference of State
Legislatures, ‘‘Family-Friendly Courts: State
Legislatures’ Role in Improving Eviction
Proceedings,’’ June 28, 2023, https://www.ncsl.org/
human-services/family-friendly-courts-evictions;
Bradford, Ashley C. and Bradford, W. David, The
Effect of State and Local Housing Policies on
County-Level Rent and Evictions in the United
States, 2004–2016 (September 30, 2021). Available
at SSRN: https://ssrn.com/abstract=3623318 or
https://dx.doi.org/10.2139/ssrn.3623318; Sudeall,
Lauren and Pasciuti, Daniel, Praxis and Paradox:
Inside the Black Box of Eviction Court (March 2,
2021). 73 Vanderbilt Law Review 1365 (2021),
Georgia State University College of Law, Legal
Studies Research Paper No. 2021–19, Available at
SSRN: https://ssrn.com/abstract=3796279.
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Time and Required Disclosures for
Notification of Nonpayment of Rent’’
(the interim final rule), to assist with the
response to the national COVID–19
pandemic and future national
emergencies (86 FR 55693, October 7,
2021). HUD, along with other Federal
agencies, responded to the national
emergency declaration during the
COVID–19 pandemic 11 with efforts to
support families impacted financially by
the COVID–19 pandemic and at risk of
losing their housing.12
Under the interim final rule, the
Secretary can extend the time period
before lease termination for nonpayment
of rent to a minimum of 30 days.
Pursuant to the interim final rule, HUD
issued a joint Public and Indian
Housing (PIH) and Housing notice on
October 7, 2021 (Notice PIH 2021–29
and H 2021–06).13 The rule also
provides that the Secretary may require
that PHAs and PBRA owners provide
tenants with information regarding any
Federal funding that is made available
to prevent eviction for nonpayment of
rent during a national emergency (such
as funding through the Emergency
Rental Assistance Program created in
response to the COVID–19 pandemic).14
In response to the interim final rule,
many commenters expressed their
support for adequate notice prior to
eviction. Commenters said that
sufficient notice provides tenants the
opportunity to apply for rent
recalculation if their family
circumstances warranted such a request
11 See
42 U.S.C. 5121 et seq.; see also The White
House, A Letter on the Continuation of the National
Emergency Concerning the Coronavirus Disease
2019 (COVID–19) Pandemic, Feb. 24, 2021, https://
www.whitehouse.gov/briefing-room/statementsreleases/2021/02/24/a-letter-on-the-continuation-ofthe-national-emergency-concerning-thecoronavirus-disease-2019-covid-19-pandemic/.
12 See, e.g., HUD, Mortgagee Letter 2020–04:
Foreclosure and Eviction Moratorium in Connection
with the Presidentially Declared COVID–19
National Emergency, Mar. 18, 2020, https://
www.hud.gov/sites/dfiles/OCHCO/documents/2004hsgml.pdf; U.S. Dep’t of Agriculture, Stakeholder
Announcement: USDA Announces Guaranteed
Housing Foreclosure and Eviction Relief, Mar. 19,
2020, https://www.rd.usda.gov/node/17107.
13 https://www.hud.gov/sites/dfiles/PIH/
documents/PIH-2021-29.pdf.
14 See U.S. Dep’t of the Treasury, Emergency
Rental Assistance Program, https://
home.treasury.gov/policy-issues/coronavirus/
assistance-for-state-local-and-tribal-governments/
emergency-rental-assistance-program.
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83879
or obtain other support available to
them, and that the requirement for 30day notice prior to eviction should not
be limited to times of a Presidentially
declared national emergency. HUD
agrees with these commenters, and in
this proposed rule, HUD is extending
the 30-day notice requirement (the 30day notice) to situations outside of a
national emergency. Some commenters
expressed concerns, stating for example:
the eviction notice timeline should be
longer and cover all reasons for eviction;
the rule does not provide protections to
tenants with existing eviction cases; the
notice template provided by HUD is
likely not accessible for most tenants
who may be individuals with
disabilities; the rule should extend
protections to all renters in federally
assisted housing, including Housing
Choice Voucher (HCV) and Project
Based Voucher (PBV) holders; the rule’s
protections should also extend to rental
assistance demonstration (RAD) PBV
properties; and extending eviction
notice requirements cause landlords to
lose an additional month of income, and
that postponing evictions for
nonpayment of rent merely delays
evictions, reduces operating income,
and increases costs to landlords. HUD
looks forward to the public comments
received on this proposed rule now that
owners and PHAs have had experience
implementing the interim final rule.
Before 2021, HUD Regulated Eviction
for Non-Payment and Notices in
Program-Specific Ways
Prior to the interim final rule, HUD’s
regulations and statutory authorities
regulated eviction for non-payment and
the timing of eviction notices only in
certain scenarios for particular HUD
programs. In some cases, these
provisions were imposed by Congress
via statute, while in others, the
provisions were imposed by HUD
regulations.
Pre-2021 requirements around notice
and/or non-payment:
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Program(s)
Regulation
Summary of provision
Public housing ......................
24 CFR 966.4 .....................
Project-based rental assistance programs.
24 CFR 247.4(c) ................
Project-Based Section 8 ......
24 CFR 880.607(c)(2); 24
CFR 247.4(c).
Section 8 Moderate Rehabilitation Program.
24 CFR 882.511(d)(1)(i) .....
Non-payment, notice: In the case of termination for nonpayment of rent, a PHA
shall provide at least fourteen days’ written notice.
Non-payment, notice: For termination for nonpayment of rent, a termination notice
must be provided with enough advance time to comply with both the rental
agreement or lease and State laws.
Notice: For termination of tenancy for ‘‘other good cause,’’ HUD regulations require
30 days’ notice along with the provision of specific information to the tenant.
Non-payment notice: For termination for nonpayment of rent, the time of service
must be in accord with the lease and State law.
Notice: For termination of tenancy for ‘‘other good cause,’’ HUD regulations require
30 days’ notice along with the provision of specific information to the tenant.
Non-payment, notice: Five working days notice required before tenancy termination
for non-payment.
Outside of the specific requirements
in authorizing statutes and HUD
regulations for specific HUD programs,
housing providers have also been
required to comply with the laws of the
States and localities where particular
HUD-subsidized housing is located.
HUD estimates that approximately 70%
of HUD-assisted households for public
housing and project-based rental
assistance live in States that require
housing providers to provide tenants
with an eviction notice for nonpayment
of rent 7 days or less before eviction,
26% of these households live in States
that require 8–14 days, and 3% live in
States that require 15–30 days.15
Additionally, eviction actions must be
consistent with and must not be
discriminatory under applicable Federal
civil rights laws. See 24 CFR part 5,
subpart A and 24 CFR part 5, subpart L.
HUD has broad investigatory and
enforcement powers, relevant to
eviction, under these civil rights
authorities, including but not limited to,
the Fair Housing Act, the Americans
with Disabilities Act, section 504 of the
Rehabilitation Act, Title VI of the Civil
Rights Act, and the Violence Against
Women Act (VAWA). Each of these laws
provides additional protections against
unlawful discrimination for certain
individuals and groups facing eviction
from HUD-subsidized housing. In
particular, the Fair Housing Act, section
504 of the Rehabilitation Act, and the
Americans with Disabilities Act require
housing providers, among other
requirements, to consider and provide
reasonable accommodation to
individuals with disabilities during all
stages of the housing process, including
during eviction. Under Title VI of the
Civil Rights Act, subsidized housing
providers are required to provide
15 Estimate
based on HUD’s cross-reference on
distribution of subsidized households across States
with external analysis of legal requirements per
State for non-payment of rent notice (https://
www.nolo.com/legal-encyclopedia/state-laws-ontermination-for-nonpayment-of-rent.html).
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limited English proficient persons with
meaningful access to their programs and
services. This includes providing
language assistance services to limited
English proficient persons during
eviction. HUD also has guidance around
language access that should be
interpreted to govern notice
provisions.16
Under VAWA, a covered housing
provider cannot evict on the basis or as
a direct result of the fact that the tenant
is or has been a victim of domestic
violence, dating violence, sexual
assault, or stalking. See 24 CFR part 5,
subpart L, and program-specific
regulations. Also, an eviction cannot
penalize someone based on their
requests for assistance or based on
criminal activity of which they are a
victim or otherwise not at fault under
statutes, ordinances, regulations, or
policies adopted or enforced by covered
governmental entities. See 34 U.S.C.A.
12495. The protections afforded under
these authorities are broad and HUD can
enforce them with respect to eviction
actions for nonpayment of rent.
Non-Payment Evictions From HUDAssisted Housing May Be Preventable
Most households in HUD-subsidized
housing are low-income, with annual
household incomes for households in
the public housing and project-based
Section 8 programs both under
$16,000.17 These households have
limited financial reserves, leaving them
especially vulnerable to income shocks
or financial emergencies. Tenants in
HUD-assisted housing typically pay rent
based on their incomes and need
adequate time after they experience a
drop in income to work with their
housing provider to document that
change and ensure their rent is properly
16 Federal Register Notice, FR–4878–N–02, Final
Guidance to Federal Financial Assistance
Recipients Regarding Title VI Prohibition Against
National Origin Discrimination Affecting Limited
English Proficient Persons.
17 Data available at https://www.huduser.gov/
portal/datasets/assthsg.html.
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calculated based on their financial
circumstances. Providing more time and
notice may help the household and their
housing provider to work together to
pursue a minimum rent hardship
exemption and/or rent recalculation to
adjust the amount of rent a tenant will
owe. Prior to and as an alternative to a
formal judicial eviction proceeding,
PHAs and owners must work with
tenants to recalculate rent and may
make appropriate repayment plans
which can then make a formal judicial
eviction filing for non-payment of rent
unnecessary.
Many HUD-assisted households pay
an amount of rent that is based on their
incomes. When HUD-assisted
households experience a reduction in
income, they may request an interim
reexamination to determine whether the
amount of rent they pay should be
changed.18
HUD-assisted households can also
request a hardship exemption. A
minimum rent hardship exemption is an
exemption from paying the minimum
rent that the PHA or owner normally
charges, allowing the household to pay
as little as zero dollars in rent if the
household has experienced a qualifying
financial hardship.19 A qualifying
financial hardship includes when a
family would be evicted because the
family is unable to pay the minimum
rent.20 Whether a household is granted
a minimum rent hardship exemption
will depend on whether the family has
18 24 CFR. 960.257(b); see also https://
www.hud.gov/sites/dfiles/PIH/documents/PHOG_
Reexaminations_FINAL.pdf and https://
www.hud.gov/sites/documents/43503c5HSGH.PDF.
19 24 CFR 5.630, see also Public Housing
Minimum Rent and Hardship Exemption
Requirements Toolkit, HUD Exchange, https://
www.hudexchange.info/programs/public-housing/
public-housing-minimum-rent-and-hardshipexemption-requirements-toolkit/ and the specific
additional circumstances that qualify as qualifying
financial hardships in the PHA’s or Multifamily
housing (MFH) owner’s ACOPs (Admissions and
Continued Occupancy Policy), Administrative
Plans, or Tenant Selection Plans, as applicable.
20 24 CFR 5.630(b)(1)(ii).
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experienced a qualifying financial
hardship.21 A minimum rent hardship
may be temporary or long term and a
PHA may not evict a family for nonpayment of minimum rent during the
90-day period beginning the month
following the family’s request for a
hardship exemption.22 They are granted
a rent recalculation, depending on the
amount of the income reduction, and
the intention is for the family to
experience a rent reduction, if the
family’s income decreases.23
Even where households do not qualify
for such measures, such as when the
income reduction does not meet the
threshold requirement for an interim
reexamination or qualify for a hardship
exemption in accordance with the
multifamily housing owner’s or PHA’s
ACOPs, Administrative Plans, or Tenant
Selection Plans, as applicable, the
family may still be able to arrange
repayment plans that allow tenants to
remain housed and make the PHA or
owner whole, subject to PHA/owner
discretion. For example, one manager of
approximately $14 billion of largely
affordable and military housing was
able to successfully use tenant supports
that included affordable, longer-term,
fee-free repayment plan options to
prevent formal judicial eviction filings
and save money that otherwise would
have been spent on costly eviction
proceedings.24 HUD has issued
guidance on creating reasonable and
affordable repayment agreements for
unpaid rent that keep households stably
housed.25
While HUD programs enable residents
to report changes in incomes through
income recertification and hardship
waivers, a 30-day notice requirement
provides tenants with more time to
report income changes before housing
providers commence a formal judicial
eviction proceeding. A 30-day notice
21 Circumstances that always constitute a
qualifying financial hardship are detailed in 24 CFR
5.630(b)(1)(i)–(iv); additional circumstances are
provided by the housing provider in the PHA’s or
Multifamily housing (MFH) owner’s ACOPs
(Admissions and Continued Occupancy Policy),
Administrative Plans, or Tenant Selection Plans, as
applicable.
22 24 CFR 5.630(b)(2).
23 Section 3(a) United States Housing Act of 1937,
as amended by section 102 of the Housing
Opportunity Through Modernization Act of 2016
(HOTMA), Public Law 114–201, 130 Stat. 782. Also
see, HUD’s implementing regulations at 24 CFR
5.657(c)(2), 882.515(b)(2), 891.410, 960.257(b)(2),
and 982.516(c)(2).
24 King, S. (2021). How One of Boston’s Top
Evictors Changed Its Ways. Shelterforce. https://
shelterforce.org/2021/12/03/how-one-of-bostonstop-evictors-changed-its-ways/.
25 Repayment Agreement Guidance, PIH. https://
www.hud.gov/sites/dfiles/PIH/documents/
Attachment4_Repayment_Agreement_
Guidance.pdf.
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requirement also allows time for tenants
and PHAs or owners to negotiate
repayment plans. Independent research
also confirms that longer notice periods
are correlated to a lower eviction filing
rate.26 As discussed in the Regulatory
Impact Analysis for this proposed rule,
given the size of the HUD programs in
2022, it is estimated that between 1,600
and 4,900 nonpayment related
moveouts in Public Housing and PBRAassisted housing are prevented each
year because of the existing 30-day
notice requirements of the CARES Act
and HUD’s interim final rule.
II. Proposed Rule
HUD is proposing to amend its
regulations to require that tenants in
properties with project-based rental
assistance (PBRA) 27 and tenants in
public housing be provided with written
notification at least 30 days prior to
lease termination resulting from
nonpayment of rent (the 30-day notice).
For PBRA and public housing, HUD
would be setting a minimum
requirement, so owners and PHAs may
provide a longer notice period if they
wish to.
This proposed rule would revise
HUD’s regulations in 24 CFR parts 247,
880, 884, 886, 891, and 966 to provide
for a 30-day notification requirement
prior to evicting a tenant for
nonpayment of rent, regardless of the
availability of Federal funding to
prevent eviction due to a presidentially
declared national emergency. That is,
the 30-day notification requirement
from the interim final rule would be
generally applicable and would no
longer be contingent on the existence of
a national emergency and the
availability of emergency rental
assistance funds.
The proposed rule would also require
that the 30-day notice include
instructions on how tenants can cure
lease violations for nonpayment of rent.
These instructions would allow tenants
to clearly understand how to avoid the
commencement of a formal judicial
eviction proceeding for non-payment of
rent. Instructions on how the tenant can
cure the nonpayment of rent violation
would include the alleged amount of
26 Gromis, A., et al., Estimating Eviction
Prevalence Across the United States, Proceedings of
the National Academy of Sciences of the United
States of America, 6 (2022.) https://doi.org/10.1073/
pnas.2116169119.
27 For purposes of this proposed rule, PBRA
includes projects in the following programs: Section
8, Section 202/162 Project Assistance Contract,
Section 202 Project Rental Assistance Contract
(PRAC), Section 811 PRAC, Section 811 Project
Rental Assistance Program (811 PRA), and Senior
Preservation Rental Assistance Contract Projects
(SPRAC).
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rent owed by the tenant, any other
arrearages allowed by the HUD program,
and the date by which the tenant must
pay the rent and arrearages to avoid the
filing of an eviction action in State court
against the tenant’s household. The
proposed rule would also require that
the 30-day notice include information
on how tenants can recertify their
income and how tenants can request a
minimum rent hardship exemption if
applicable.
HUD also recommends the best
practice of entering into a rental
repayment agreement as an alternative
to a lump-sum payment for past due
amounts. PHAs are also encouraged to
include information about how to
switch from flat rent to income-based
rent.
The 30-day notice must be provided
in accessible formats to ensure effective
communication for individuals with
disabilities, and in a form to allow
meaningful access for persons who are
limited English proficient (LEP). PHAs
and owners must comply with the
nondiscrimination requirements
contained in Title VI of the Civil Rights
Act of 1964 and Section 504 of the
Rehabilitation Act of 1973 along with
HUD’s regulations implementing those
laws. Title VI’s requirements with
respect to national origin discrimination
including meaningful access for people
with limited English proficiency are set
forth in HUD’s ‘‘Final Guidance to
Federal Financial Assistance Recipients
Regarding Title VI Prohibition Against
National Origin Discrimination
Affecting Limited English Proficient
Persons’’ issued on January 22, 2007
and available at https://www.hud.gov/
sites/documents/FINALLEP2007.PDF.
Additionally, HUD suggests the 30day notice advise individuals of their
right to request reasonable
accommodations, include information
on how individuals with disabilities can
request reasonable accommodation, and
include a point of contact for reasonable
accommodation requests. There are
instances in which a tenant may be
entitled to a reasonable accommodation
in cases of non-payment of rent.28 For
example, if a housing provider usually
requires rent be paid on the 1st of the
month, but a tenant receives disabilityrelated government assistance later in
the month, the housing provider may be
required to accept a tenant’s request to
28 See Joint Statement of HUD and DOJ,
‘‘Reasonable Accommodations Under the Fair
Housing Act’’ (May 17, 2004), available at https://
www.justice.gov/sites/default/files/crt/legacy/2010/
12/14/joint_statement_ra.pdf.
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pay rent on this later date as a
reasonable accommodation.29
Once this rule is finalized, HUD plans
to issue sample language that PHAs and
owners may use. PHAs and owners
would also be permitted to draft their
own notices if those notices included
the required contents laid out in the
final version of the rule. HUD will
follow the Plain Writing Act of 2010 and
the Paperwork Reduction Act when
drafting these notices. The agency will
also consider best customer experience
practices to ensure the sample language
is easy to use and understand for
tenants, PHAs, and owners. As HUD
provides model notices and other
guidance to assist with implementation
of this proposed rule, HUD is interested
in comments on how to ensure tenantdirected materials such as model leases
and notices follow the principles of
plain writing, user-centered design, and
equitable design.
PHAs and owners would be required
to serve this 30-day notice to a tenant
or household. Prior to filing a formal
judicial eviction, PHAs and owners
must ensure that at least 30 days pass
following the service of this notice.
Some States, localities and territories
may have additional timing
requirements for serving notices on
tenants for non-payment of rent.30 The
timing for the service of non-payment of
rent notices required under State or
local law may run concurrently with the
timing requirements of this 30-day
notice, unless State or local law requires
that such notice be consecutive.
Regardless of State or local laws on the
29 See Fair Housing for Individuals with Mental
Health, Intellectual or Developmental Disabilities:
A Guide for Housing Providers (‘‘What are
reasonable accommodations and modifications?
. . . Asking to change the due date for rent until
after receipt of a social security disability heck or
a short- or long-term disability payment . . .’’),
available at https://www.hud.gov/sites/dfiles/
FHEO/images/MD%20Fact%20Sheet%20%20HP.pdf. See also Initial Decision and Consent
Order, HUD v. Park Regency LLC et al. (October 29,
2020), available at https://www.hud.gov/sites/
dfiles/FHEO/images/20HUDOHA_
InitDecisionConsent.pdf (providing the reasonable
accommodation of a fee-free rent payment grace
period until the 6th of each month and paying
$27,000 to complainant); Fair Hous. Rts. Ctr. in Se.
Pennsylvania v. Morgan Properties Mgmt. Co., LLC,
2017 WL 1326240, at *4 (E.D. Pa. Apr. 11, 2017)
(Denying defendants’ motion for judgement and
allowing a civil rights suit to proceed where
defendant, the owner of three apartment buildings,
refused to agree to accept monthly rent payments
on a later date each month where the later monthly
payment timing was due to the plaintiffs’ disability
and receipt of financial disability benefits.); Charge
of Discrimination, HUD v. Morbach et al. (March
20, 2006), available at https://www.hud.gov/sites/
documents/DOC_14412.PDF.
30 See the Legal Services Corporation’s
comprehensive guide to local eviction laws here:
https://www.lsc.gov/initiatives/effect-state-locallaws-evictions/lsc-eviction-laws-database.
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timing of non-payment notices, owners
and PHAs regulated by this rule must
ensure that they do not file a formal
judicial eviction until at least 30 days
have passed following the service of the
notice mandated by this rule. HUD
notes the requirements under this rule,
including its proposed requirement that
the 30-day notice may run consecutive
to any additional State or local notice
requirements if required by State or
local law, do not preempt any State or
local law that provides greater or equal
protection for tenants.
Furthermore, this rule would require
that PHAs and owners amend all
current and future leases to properly
incorporate the 30-day notice
requirement for nonpayment of rent.
PHAs and owners would also need to
provide tenants with notification of
changes to the lease under existing
requirements in 24 CFR 880.607(d) and
24 CFR 966.3. Section 880.607(d)
requires that an owner, when modifying
a lease, serve appropriate notice to
tenants at least 30 days prior to the last
date on which a tenant has the right to
terminate tenancy. This provision
applies to PBRA projects under 24 CFR
parts 880, 881, and 883 (The New
Construction, Substantial Rehab and
Housing Finance Agency (HFA)
programs). Section 966.3 requires a PHA
to provide at least 30 days’ notice to
tenants of proposed changes to the
lease, and an opportunity for tenants to
present written comments.
HUD understands that it will take
time for PHAs and owners to
incorporate the 30-day notice
requirement into leases and to provide
notification that the leases will be
modified. Accordingly, HUD proposes
to provide PHAs with an additional 18
months after this rule becomes effective
to comply with the requirement that the
lease contain a provision or addendum
incorporating the 30-day notice
requirement. Since HUD will issue
model leases for PBRA programs, this
rule would provide PBRA owners with
14 months from the date that HUD
publishes a final model lease that
complies with the rule to comply with
the requirement to update the lease.
HUD plans to issue model leases within
a year of the effective date of this rule.
HUD will issue a Federal Register
document to advise the public once the
new model leases are available.
Additionally, the proposed rule
incorporates the interim final rule’s
requirement that, in the event of a
presidentially declared national
emergency, PHAs and owners would
also need to provide tenants with other
specified information, as required by the
Secretary, to prevent eviction for
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nonpayment of rent. This proposed rule
would permit the agency flexibility in
the case of any presidentially declared
national emergency to require
additional information in the 30-day
notice. Unlike the interim final rule,
there is no requirement in this proposed
rule that PHAs and owners must
include notification of available
emergency rental assistance funds.
Rather this proposed rule would
provide the flexibility to the Secretary to
require this information, or other
information, depending on the
circumstances of a given national
emergency.
HUD has considered the perspectives
of stakeholders and subject matter
experts in drafting this rule. The
Department routinely hears from and
carefully considers the perspectives of
PHAs and owners, and the multiple
associations that represent those PHAs
and owners. The Department has also
solicited the perspectives of tenants in
HUD-subsidized housing and the
perspectives of people who provide
support and legal representation to
those tenants. HUD has conducted
listening sessions with tenants who
reside in HUD-subsidized housing. HUD
has also consulted with non-profit legal
service providers who represent
subsidized tenants in eviction
proceedings and other eviction
prevention actions. In addition, HUD
has considered the perspectives of
scholars and legal experts who study
eviction prevention and has reviewed
key decisions related to evictions made
by State courts.
Preventable Evictions Frustrate HUD’s
Mission
HUD’s authorizing statutes require the
Department to provide for full and
appropriate consideration of the people
who live and work in the Nation’s
communities 31 and to work toward the
goal of ‘‘a decent home and a suitable
living environment for every American
family’’—especially for lower-income
families.32 The programs that would be
subject to this proposed rule perform an
essential function toward the goal of
ensuring a decent home for lowerincome families.
In most cases, program participant
owners and PHAs collect rent from
tenants and may evict low-income
tenants for non-payment of rent. A
number of legal service providers for
low-income tenants have reported an
uptick in eviction cases for non31 42
U.S.C. 3531.
2 of the Housing Act of 1949; section
2 of the Housing and Urban Development Act of
1968.
32 Section
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payment of rent in public housing
compared to pre-pandemic levels.33
HUD is proposing to amend its
regulations to provide adequate notice
and key information to tenants facing
non-payment of rent cases to reduce the
number of preventable evictions filed
against tenants in HUD-assisted
housing.
Preventable evictions for nonpayment of rent in HUD-assisted
housing hinder the Department’s work
and frustrate HUD’s programmatic
efficiency. Accordingly, by reducing
preventable evictions, this proposed
rule would advance HUD’s statutory
purposes.
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PHAs and Owners Have Already
Demonstrated Their Capacity To
Comply With These Proposed Changes
PHAs and owners of properties
receiving PBRA have already
demonstrated their capacity to comply
with a 30-day notice requirement prior
to an eviction, as demonstrated by their
compliance with HUD’s interim final
rule. PHAs and owners showed that
they could provide the required
minimum 30-day notification to
terminate a lease for nonpayment of rent
during the COVID–19 national
emergency. In addition, the CARES Act
30-day notice to vacate requirement for
nonpayment of rent, in section
4024(c)(1), is still in effect for all CARES
Act covered properties.34 HUD also
currently already requires 30-day tenant
notification related to certain types of
evictions in PIH and Multifamily
programs unrelated to nonpayment of
rent.35 Some jurisdictions have also
33 See, e.g., National Housing Law Project. (2022).
Rising Evictions in HUD-Assisted Housing: Survey
of Legal Aid Attorneys. https://www.nhlp.org/wpcontent/uploads/HUD-Housing-Survey-2022.pdf.
34 See Public Law 116–136, 134 Stat. 281 (2020);
15 U.S.C. 9058 (‘‘The lessor of a covered dwelling
unit [. . .] may not require the tenant to vacate the
covered dwelling unit before the date that is 30
days after the date on which the lessor provides the
tenant with a notice to vacate.’’ See also Sherwood
Auburn LLC v. Pinzon, 521 P.3d 212 (Wash. Ct.
App. 2022), review denied, 526 P.3d 848 (Wash.
2023); In re: Arvada Village Gardens LP v. Ana
Garate, 2023 WL 3444733 (Colo. 2023); W. Haven
Hous. Auth. v. Armstrong, 2021 WL 2775095, at *3
(Conn. Super. Ct. Mar. 16, 2021) (all cases affirm the
ongoing applicability of this 30 day notice to
covered dwelling units).
35 See 42 U.S.C. 1437d(l); 24 CFR
966.4(l)(3)(i)(B)), and 24 CFR 966.4(l)(3)(i)
(providing for a 30-day notice period for evictions
from public housing in certain situations). The
section 8 project-based rental assistance programs
require 30 days’ notice when the grounds for
eviction is ‘‘other good cause.’’ State law and the
lease govern the length of the notice period for
material noncompliance with lease, noncompliance
with State law, or criminal activity/alcohol abuse.
24 CFR 880.607, 24 CFR 247.4(e); 90105a Model
Lease, Handbook 4350.3 para. 8–13–B 2(e) (PBRA).
Section 202/811 programs require 30-day notice for
all eviction grounds. Section 202 PRAC: 24 CFR
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already imposed their own 30-day
eviction notice requirements on housing
providers related to nonpayment of rent
and other causes.36
This Proposed Rule Would Align NonPayment Requirements Across HUD
Programs
This proposed rule would simplify
requirements across many HUD
programs by creating one clear floor and
simple standards around how and when
notice for lease termination due to nonpayment of rent should be provided. In
most cases, the regulated programs are
already subject to regulatory restrictions
around how and when tenants are
notified of lease termination due to nonpayment of rent. Since in many cases
funding for affordable housing can come
from multiple sources, this proposed
rule would also align the requirements
to match that of another key HUD
program, the HOME program, which is
often combined with some of the
programs covered by this rule.37
891.430(b), 90105c Model Lease para. 8(b)(1);
Section 811 PRAC: 42 U.S.C. 8013(i)(2)(B), 24 CFR
891.430(b), 90105d Model Lease para. 8(b)(1);
Section 202/8: 24 CFR 891.630(b), Model Lease
para. 9(b) (HUD–90105–b); Section 202/162: 24 CFR
891.770(b) Model Lease para. 9(b) (HUD–90105–b);
Section 811 PRA: 42 U.S.C. 8013(i)(2)(B), Model
Lease para. 8(b) (HUD–92236–PRA); SPRAC:
Section 2.6(b) of SPRAC II (HUD–93742a).
36 See, e.g., D.C. Code sec. 42–3505.01 (‘‘A
housing provider shall provide the tenant with
notice of the housing provider’s intent to file a
claim against a tenant to recover possession of a
rental unit for the non-payment of rent at least 30
days before filing the claim.’’); Wis. Stat. sec.
704.17(3)(a) (‘‘If a tenant under a lease for more
than one year fails to pay rent when due . . . the
tenancy is terminated if the landlord gives the
tenant notice requiring the tenant to pay the rent
. . . on or before a date at least 30 days after the
giving of the notice, and if the tenant fails to
comply with the notice.’’); 21 Guam Code Ann. Sec.
48401(b) (‘‘If rent is unpaid when due and the
tenant fails to pay rent five (5) days after written
notice by the landlord of nonpayment and his
intention to terminate the rental agreement if the
rent is not paid within that period, the landlord
may terminate the rental agreement thirty (30) days
after receipt of notice.’’); V.I. Code Ann. tit. 28, sec.
843 (‘‘In any action for the recovery of possession
of rented premises, written notice to quit must have
been served upon the tenant or person in
possession for a period of 30 days before the
commencement of such action.’’).
37 See, e.g., requirements for the HOME
Investment Partnerships Program (HOME), which
requires 30 days’ notice before terminating or
refusing to renew tenancy. See 24 CFR 92.253(c)
(‘‘To terminate or refuse to renew tenancy, the
owner must serve written notice upon the tenant
specifying the grounds for the action at least 30
days before the termination of tenancy.’’) The
HOME program statute requires not less than 30
days’ notice unless the grounds for tenancy
termination involve direct threat to the safety of
tenants or employees or serious threat to property.
See 42 U.S.C. 12755(b).
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This Rule May Assist PHAs and Owners
To Resolve Rental Arrears
Owners and PHAs fund the housing
they provide by relying both on HUD’s
portion of rental subsidies and on tenant
rent payments. The portion of rent that
tenants in assisted housing must pay is
set by Federal law and may vary when
tenants experience fluctuations in
income. Tenants are responsible for
paying the portion of rent assigned to
them. In most cases, tenants are
responsible for informing the PHA or
owner when they experience an income
fluctuation that would result in a rent
recalculation or hardship waiver.
Housing providers face financial
uncertainty when tenants do not pay
their rent and also face a costly process
with formal judicial eviction
proceedings. It is generally more costefficient for housing providers to assist
tenants in curing their non-payment of
rent, for example by first providing
notice as would be required by this rule,
as opposed to evicting tenants for nonpayment of rent.38
HUD looks forward to receiving
comments on this proposed rule for how
to make this workable for different types
of HUD stakeholders.
Statutory Authority and Consistency
With Current Regulations
HUD has general rulemaking
authority under 42 U.S.C. 3535 to
implement its statutory mission, which
is to provide assistance for housing to
promote ‘‘the general welfare and
security of the Nation and the health
and living standards of [its] people.’’ 39
Each year, HUD provides States, local
governments, and housing providers
with billions of dollars in Federal
financial assistance, appropriated and
authorized by Congress. By taking the
actions described here, HUD would
prevent unnecessary evictions and the
costs associated with those evictions for
tenants, PHAs, and owners, as
compelled by HUD’s mission. Please see
the Regulatory Impact Analysis for
further discussion of such costs. These
actions would promote the general
welfare and security of the Nation by
avoiding the societal costs and ills of
housing instability brought on by
evictions.
HUD also has specific statutory
authority under the U.S. Housing Act of
1937 to prescribe procedures and
requirements for PHAs to follow to
38 See, e.g., Philip M.E. Garboden and Eva Rosen.
2019. ‘‘Serial Filing: How Landlords Use the Threat
of Eviction,’’ City & Community 18:2, 638, 646;
Gretchen Purser. 2014. ‘‘The Circle of
Dispossession: Evicting the Urban Poor in
Baltimore,’’ Critical Sociology 42:3, 393, 401.
39 42 U.S.C. 3531.
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ensure sound management practices and
efficient operations.40 Even more
specifically, HUD has the authority to
establish ‘‘procedures designed to
assure the prompt payment and
collection of rents and the prompt
processing of evictions in the case of
nonpayment of rent.’’ 41 HUD also has
authority to specify procedures that
ensure tenants receive the elements of
due process, such as notice of relevant
information, before adverse action is
taken against them.42
The Secretary has explicit authority to
require that certain terms and
conditions be included within leases for
HUD-assisted housing,43 including that
public housing agencies provide certain
specified notice periods and other
procedural protections before different
types of eviction proceedings.44 The
Secretary also has statutory authority to
establish requirements for PBRA.45 This
statutory authority provides that during
the lease term, the owner must not
‘‘terminate the tenancy except for
serious or repeated violation of the
terms and conditions of the lease, for
violation of applicable Federal, State, or
local law, or for other good cause[.]’’ 46
The Secretary is also authorized to
provide additional terms and conditions
that must be incorporated into the
tenant’s lease.47 This proposed rule is
consistent with the statutory restrictions
placed on program participants under
this authority.
For lease termination for nonpayment
of rent in HUD’s PBRA programs, the
regulations currently provide that a
termination notice must be provided
with enough advance time to comply
with both the rental agreement or lease
and State laws.48 See 24 CFR 247.4(c); 24
CFR 880.607(c)(2). By contrast, for
termination of tenancy for ‘‘other good
cause,’’ HUD regulations require 30
40 42
U.S.C. 1437d(c)(4).
U.S.C. 1437d(c)(4)(B).
42 42 U.S.C. 1437d(k).
43 42 U.S.C. 1437d(a).
44 42 U.S.C. 1437d(l).
45 42 U.S.C. 1437f(g) (section 8 low-income
housing assistance); 12 U.S.C. 1701q (section 202
supportive housing for the elderly); 42 U.S.C. 8013
(section 811 supportive housing for persons with
disabilities).
46 42 U.S.C. 1437f(d)(1)(B)(ii). See also 42 U.S.C.
8013(i)(2)(B) (section 811).
47 42 U.S.C. 1437f(d)(1)(B)(iv).
48 The time period required by State laws can
vary from 0 days to 30 days depending on the
jurisdiction. See NOLO, State Laws on Termination
for Nonpayment of Rent, https://www.nolo.com/
legal-encyclopedia/state-laws-on-termination-fornonpayment-of-rent.html (last updated Dec. 10,
2020) (citing W.Va. Code section 55–3A–1 (no
notification period), Fla. Stat. Ann. sec. 83.56(3) (3
days); Idaho Code section 6–303(2) (3 days) and
D.C. Code Ann. section 42–3505.01 (30 days)).
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41 42
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days’ notice along with the provision of
specific information to the tenant.49
With this rulemaking, HUD will better
protect assisted tenants from
preventable evictions, increase HUD
program’s operational efficiency, and
ensure HUD is fulfilling its statutory
duties. The agency takes these actions
pursuant to its rulemaking authority 50
and statutory authority for the public
housing and PBRA programs.51
III. Findings and Certifications
Regulatory Review—Executive Orders
12866 and 13563
Under Executive Order 12866
(Regulatory Planning and Review), a
determination must be made whether a
regulatory action is significant and,
therefore, subject to review by the Office
of Management and Budget (OMB) in
accordance with the requirements of the
order. This rule was determined to be a
‘‘significant regulatory action’’ as
defined in section 3(f) of the order. HUD
has prepared an initial regulatory
impact analysis and has assessed the
potential costs and benefits, both
quantitative and qualitative, of this
proposed regulatory action and has
determined that the benefits would
justify the costs. The analysis is
available at regulations.gov and is part
of the docket file for this rule.
Executive Order 13563 (Improving
Regulations and Regulatory Review)
directs executive agencies to analyze
regulations that are ‘‘outmoded,
ineffective, insufficient, or excessively
burdensome, and to modify, streamline,
expand, or repeal them in accordance
with what has been learned.’’ Executive
Order 13563 also directs that, where
relevant, feasible, and consistent with
regulatory objectives, and to the extent
permitted by law, agencies are to
identify and consider regulatory
approaches that reduce burdens and
maintain flexibility and freedom of
choice for the public. HUD believes that
this proposed rule would provide added
protections for tenants and is consistent
with Executive Order 13563.
The proposed rule would revise 24
CFR parts 247, 880, 884, 886, 891, and
966 to update HUD’s regulation to
curtail preventable and unnecessary
evictions by providing tenants time and
49 See 24 CFR 880.607(c)(1) (stating that the
notice must provide the grounds for termination
and that the tenancy is terminated on a specified
date and advising the family that it has an
opportunity to respond to the owner.)
50 42 U.S.C. 3535.
51 42 U.S.C. 1437d(l); 42 U.S.C. 1437f(g) (section
8 project based rental assistance); 12 U.S.C. 1701q
(section 202 supportive housing for the elderly); 42
U.S.C. 8013 (section 811 supportive housing for
persons with disabilities).
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information to help cure nonpayment
violations. This proposed rule would
also improve HUD’s programmatic
efficiency by ensuring resources are not
diverted to cover the costs of
unnecessary evictions and by
preventing homelessness.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates
Reform Act of 1995 (Pub. L. 104–4;
approved March 22, 1995) (UMRA)
establishes requirements for Federal
agencies to assess the effects of their
regulatory actions on State, local, and
Tribal governments, and on the private
sector. This rule does not impose any
Federal mandates on any State, local, or
Tribal governments, or on the private
sector, within the meaning of the
UMRA.
Environmental Review
A Finding of No Significant Impact
(FONSI) with respect to the
environment has been made for this
proposed rule in accordance with HUD
regulations at 24 CFR part 50, which
implement section 102(2)(C) of the
National Environmental Policy Act of
1969 (42 U.S.C. 4332(2)(C)). The
Finding of No Significant Impact is
available for public inspection at
www.regulations.gov.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
(5 U.S.C. 601 et seq.) generally requires
an agency to conduct a regulatory
flexibility analysis of any rule subject to
notice and comment rulemaking
requirements, unless the agency certifies
that the rule will not have a significant
economic impact on a substantial
number of small entities. This rule
proposes to limit preventable and
unnecessary evictions by providing
tenants with time and information to
help cure nonpayment violations.
HUD anticipates that there will be
minimal costs for this proposed rule
since PHAs and owners are already
required to comply with the CARES Act
30-day notice to vacate requirement for
nonpayment of rent in Section
4024(c)(1). Additionally, the paperwork
burden and compliance costs for PHAs
and owners will be minimal since HUD
already requires written notice for
nonpayment of rent and will provide
the information that PHAs and owners
need to meet requirements.
HUD estimates the number of small
entities for PHAs as 2,102. At this time,
HUD is unable to provide an accurate
estimate of small PBRA owners because
we do not always know whether there
is a corporate structure behind an
individual owner. As noted in the
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Regulatory Impact Analysis for this
proposed rule, the added cost of sharing
information as required by this
proposed rule is minimal since PHAs
and owners already have to provide
written notice before taking adverse
action for nonpayment of rent. This rule
would only change the information on
the notice. The burden of developing
the content of the notice would be
minimal since HUD will supply the
information that providers will have to
give to tenants. The PRA burden for
small entities would be the same as for
larger ones or approximately, $90 for
each PHA, and $137 for each PBRA
owner. As noted above, we do not have
an accurate number of small PBRA
owners, and we estimate the number of
small PHAs as 2,102.
Therefore, the undersigned certifies
that the rule will not have a significant
economic impact on a substantial
number of small entities.
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Executive Order 13132, Federalism
Executive Order 13132 (entitled
‘‘Federalism’’) prohibits an agency from
publishing any rule that has Federalism
implications if the rule either imposes
substantial direct compliance costs on
State and local governments or is not
required by statute, or the rule preempts
State law, unless the agency meets the
consultation and funding requirements
of section 6 of the Executive Order. This
rule would not have Federalism
implications and would not impose
substantial direct compliance costs on
State and local governments or preempt
State law within the meaning of the
Executive Order.
Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501–
3520), an agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless the collection displays a valid
control number. The information
collection requirements contained in
this proposed rule have been submitted
to the Office of Management and Budget
(OMB) under the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501–3520) and
assigned OMB control numbers 2577–
0006 and 2502–0178.
The proposed rule would require that
PHAs and owners covered by this rule
include in termination notices for nonpayment of rent instructions on how the
tenant can cure the nonpayment of rent
violation, information on how the
tenant can recertify their income and
how the tenant can request a hardship
exemption, and, in the event of a
presidentially declared national
emergency, such information to tenants
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as required by the Secretary. This would
require a one-time revision to
termination notices. This rule would
also require that PHAs and owners
revise leases one time so they include a
provision or addendum that tenants
would be provided with written
notification at least 30 days prior to
lease termination for nonpayment of
rent. Additionally, PHAs and owners
are required under 24 CFR 880.607(d)
and 24 CFR 966.3 to provide tenants
with a one-time notice about the
revisions in the lease. The overall
reporting and recordkeeping burden to
revise termination notices and leases is
estimated as follows:
Number of Responses (PBRA Owners
and PHAs): 26,242.
Hours per Response: 3.
Total Hours: 78,726.
In accordance with 5 CFR
1320.8(d)(1), HUD is soliciting
comments from members of the public
and affected agencies concerning the
information collection requirements in
the proposed rule regarding:
(1) Whether the proposed collection
of information is necessary for the
proper performance of the functions of
the agency, including whether the
information will have practical utility;
(2) The accuracy of the agency’s
estimate of the burden of the proposed
collection of information;
(3) Whether the proposed collection
of information enhances the quality,
utility, and clarity of the information to
be collected; and
(4) Whether the proposed information
collection minimizes the burden of the
collection of information on those who
are to respond; including through the
use of appropriate automated collection
techniques or other forms of information
technology (e.g., permitting electronic
submission of responses).
Interested persons are invited to
submit comments regarding the
information collection requirements in
this rule. The proposed information
collection requirements in this rule have
been submitted to OMB for review
under section 3507(d) of the Paperwork
Reduction Act. Under the provisions of
5 CFR part 1320, OMB is required to
make a decision concerning this
collection of information between 30
and 60 days after the publication date.
Therefore, a comment on the
information collection requirements is
best assured of having its full effect if
OMB receives the comment within 30
days of the publication. This time frame
does not affect the deadline for
comments to the agency on the
proposed rule. Comments must refer to
the proposed rule by name and docket
number (FR–6085) and must be sent
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83885
to:HUD Desk Officer, Office of
Management and Budget, New
Executive Office Building, Washington,
DC 20503, Fax number: 202–395–6947
and Colette Pollard, HUD Reports
Liaison Officer, U.S. Department of
Housing and Urban Development, 451
7th Street SW, Room 2204, Washington,
DC 20410.
Interested persons may submit
comments regarding the information
collection requirements electronically
through the Federal eRulemaking Portal
at https://www.regulations.gov. HUD
strongly encourages commenters to
submit comments electronically.
Electronic submission of comments
allows the commenter maximum time to
prepare and submit a comment, ensures
timely receipt by HUD, and enables
HUD to make them immediately
available to the public. Comments
submitted electronically through the
https://www.regulations.gov website can
be viewed by other commenters and
interested members of the public.
Commenters should follow the
instructions provided on that site to
submit comments electronically.
List of Subjects
24 CFR Part 247
Grant programs—housing and
community development, Loan
programs—housing and community
development, Low and moderate
income housing, Rent subsidies.
24 CFR Part 880
Accounting, Administrative practice
and procedure, Government contracts,
Grant programs—housing and
community development, Home
improvement, Housing, Housing
standards, Low and moderate income
housing, Manufactured homes, Public
assistance programs, Rent subsidies,
Reporting and recordkeeping
requirements.
24 CFR Part 884
Accounting, Administrative practice
and procedure, Grant programs—
housing and community development,
Home improvement, Housing, Low and
moderate income housing, Public
assistance programs, Public housing,
Rent subsidies, Reporting and
recordkeeping requirements, Rural
areas, Utilities.
24 CFR Part 886
Accounting, Administrative practice
and procedure, Government contracts,
Grant programs—housing and
community development, Home
improvement, Housing, Lead poisoning,
Low and moderate income housing,
Mortgages, Public assistance programs,
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Federal Register / Vol. 88, No. 230 / Friday, December 1, 2023 / Proposed Rules
Rent subsidies, Reporting and
recordkeeping requirements, Utilities,
Wages.
24 CFR Part 891
Aged, Grant programs—housing and
community development, Individuals
with disabilities, Loan programs—
housing and community development,
Low and moderate income housing,
Public assistance programs, Rent
subsidies, Reporting and recordkeeping
requirements.
24 CFR Part 966
Grant programs—housing and
community development, Public
housing, Reporting and recordkeeping
requirements.
For the reasons discussed in the
preamble, HUD amends 24 CFR parts
247, 880, 884, 886, 891, and 966 as
follows:
PART 247—EVICTIONS FROM
CERTAIN SUBSIDIZED AND HUDOWNED PROJECTS
1. The authority citation for part 247
continues to read as follows:
■
Authority: 12 U.S.C. 1701q, 1701s, 1715b,
1715l, and 1715z–1; 42 U.S.C. 1437a, 1437c,
1437f, and 3535(d).
2. In § 247.4, revise the last sentence
in paragraph (c) and revise paragraph (e)
to read as follows:
■
§ 247.4
Termination notice.
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*
*
*
*
*
(c) * * * In cases of nonpayment of
rent, the termination notice shall be
effective no earlier than 30 days after
receipt by the tenant of the termination
notice.
*
*
*
*
*
(e) Notice requirements in rent
nonpayment cases. In any case in which
a tenancy is terminated because of the
tenant’s failure to pay rent, a notice
stating the dollar amount of the balance
due on the rent account and the date of
such computation shall satisfy the
requirement of specificity set forth in
paragraph (a)(2) of this section. All
termination notices in cases of
nonpayment of rent must also include
the following:
(1) Instructions on how the tenant can
cure the nonpayment of rent violation;
(2) Information on how the tenant can
recertify their income and, for tenants
residing in projects assisted pursuant to
a housing assistance payments contract
for project-based assistance under
section 8 of the 1937 Act (42 U.S.C.
1437f), information on how the tenant
can apply for a hardship exemption
pursuant to 24 CFR 5.630(b); and
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(3) In the event of a Presidential
declaration of a national emergency,
such information to tenants as required
by the Secretary.
*
*
*
*
*
PART 880—SECTION 8 HOUSING
ASSISTANCE PAYMENTS PROGRAM
FOR NEW CONSTRUCTION
3. The authority citation for part 880
continues to read as follows:
■
Authority: 42 U.S.C. 1437a, 1437c, 1437f,
3535(d), 12701, and 13611–13619.
4. In § 880.606, redesignate paragraph
(b) as paragraph (c) and add new
paragraph (b) to read as follows:
■
§ 880.606
Lease requirements.
*
*
*
*
*
(b) Notification for nonpayment of
rent. The lease must also contain a
provision or addendum that tenants will
receive notification at least 30 days
prior to termination of the lease for
nonpayment of rent.
*
*
*
*
*
■ 5. In § 880.607, revise paragraph (c)(6)
to read as follows:
§ 880.607 Termination of tenancy and
modification of lease.
*
*
*
*
*
(c) * * *
(6) In the case of failure to pay rent,
the termination notice shall be effective
no earlier than 30 days after receipt by
the tenant. All termination notices in
cases of failure to pay rent must include
the following:
(i) Instructions on how the tenant can
cure the nonpayment of rent violation;
(ii) Information on how the tenant can
recertify their income and apply for a
hardship exemption pursuant to 24 CFR
5.630(b); and
(iii) In the event of a Presidential
declaration of a national emergency,
such information as required by the
Secretary.
*
*
*
*
*
PART 884—SECTION 8 HOUSING
ASSISTANCE PAYMENTS PROGRAM,
NEW CONSTRUCTION SET-ASIDE FOR
SECTION 515 RURAL RENTAL
HOUSING PROJECTS
6. The authority citation for part 884
continues to read as follows:
■
Authority: 42 U.S.C. 1437f and 3535(d).
7. In § 884.215, add a second sentence
to the introductory text to read as
follows:
■
§ 884.215
Lease requirements.
* * * In addition to the provisions
specified in paragraph (b), the lease
shall also contain a provision or
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addendum that tenants will receive
notification at least 30 days prior to
termination of the lease for nonpayment
of rent.
*
*
*
*
*
■ 8. In § 884.216, revise paragraph (d) to
read as follows:
§ 884.216
Termination of tenancy.
*
*
*
*
*
(d) In the case of failure to pay rent,
the owner must provide the tenant with
a termination notice at least 30 days
before the termination notice is
effective. All termination notices in
cases of failure to pay rent must include
the following:
(1) Instructions on how the tenant can
cure the nonpayment of rent violation;
(2) Information on how the tenant can
recertify their income and apply for a
hardship exemption pursuant to 24 CFR
5.630(b); and
(3) In the event of a Presidential
declaration of a national emergency,
such information as required by the
Secretary.
PART 886—SECTION 8 HOUSING
ASSISTANCE PAYMENTS
PROGRAM—SPECIAL ALLOCATIONS
9. The authority citation for part 886
continues to read as follows:
■
Authority: 42 U.S.C. 1437a, 1437c, 1437f,
3535(d), and 13611–13619.
10. In § 886.127, add paragraph (c) to
read as follows:
■
§ 886.127
Lease requirements.
*
*
*
*
*
(c) Notification for nonpayment of
rent. The lease must contain a provision
or addendum that tenants will receive
notification at least 30 days prior to
termination of the lease for nonpayment
of rent.
■ 11. In § 886.327, add paragraph (c) to
read as follows:
§ 886.327
Lease requirements.
*
*
*
*
*
(c) Notification for nonpayment of
rent. The lease must contain a provision
or addendum that tenants will receive
notification at least 30 days prior to
termination of the lease for nonpayment
of rent.
PART 891—SUPPORTIVE HOUSING
FOR THE ELDERLY AND PERSONS
WITH DISABILITIES
12. The authority citation for part 891
continues to read as follows:
■
Authority: 12 U.S.C. 1701q; 42 U.S.C.
1437f, 3535(d), and 8013.
13. In § 891.425, add paragraph (d) to
read as follows:
■
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§ 891.425
Lease requirements.
POSTAL REGULATORY COMMISSION
*
*
*
*
*
(d) Notification for nonpayment of
rent. The lease must contain a provision
or addendum that tenants will receive
notification at least 30 days prior to
termination of the lease for nonpayment
of rent.
PART 966—PUBLIC HOUSING LEASE
AND GRIEVANCE PROCEDURE
14. The authority citation for part 966
continues to read as follows:
■
Authority: 42 U.S.C. 1437f and 3535(d).
15. In § 966.4, revise paragraphs
(l)(3)(i)(A), add a sentence to the end of
paragraph (1)(3)(ii), add paragraphs
(l)(3)(ii)(A), (B), and (C), and add
paragraph (q) to read as follows:
■
§ 966.4
Lease requirements.
*
*
*
*
(l) * * *
(3) * * *
(i) * * *
(A) At least 30 days in the case of
failure to pay rent;
*
*
*
*
*
(ii) * * * All notices of lease
termination required by
§ 966.4(1)(3)(i)(A) due to a tenant’s
failure to pay rent must also include the
following:
(A) Instructions on how the tenant
can cure the nonpayment of rent
violation;
(B) Information on how the tenant can
recertify their income pursuant to 24
CFR 960.257(b), request a hardship
exemption pursuant to 24 CFR 5.630(b),
or request to switch from flat rent to
income-based rent pursuant to 24 CFR
960.253(g); and
(C) In the event of a Presidential
declaration of a national emergency,
such information as required by the
Secretary.
*
*
*
*
*
(q) Notification for nonpayment of
rent. The lease shall contain a provision
or addendum that tenants will receive
notification at least 30 days prior to
termination of the lease for nonpayment
of rent.
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*
§ 966.8
■
[Removed]
16. Remove § 966.8.
Marcia L. Fudge,
Secretary.
[FR Doc. 2023–26348 Filed 11–30–23; 8:45 am]
BILLING CODE 4210–67–P
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39 CFR Part 3050
[Docket No. RM2024–2; Order No. 6816]
Periodic Reporting
Postal Regulatory Commission.
Notice of proposed rulemaking.
AGENCY:
ACTION:
The Commission is
acknowledging a recent filing requesting
the Commission initiate a rulemaking
proceeding to consider changes to
analytical principles relating to periodic
reports (Proposal Eight). This document
informs the public of the filing, invites
public comment, and takes other
administrative steps.
DATES: Comments are due: January 18,
2024.
ADDRESSES: Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov. Those who cannot submit
comments electronically should contact
the person identified in the FOR FURTHER
INFORMATION CONTACT section by
telephone for advice on filing
alternatives.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Proposal Eight
III. Notice and Comment
IV. Ordering Paragraphs
I. Introduction
On November 21, 2023, the Postal
Service filed a petition pursuant to 39
CFR 3050.11 requesting that the
Commission initiate a rulemaking
proceeding to consider changes to
analytical principles relating to periodic
reports.1 The Petition identifies the
proposed analytical changes filed in this
docket as Proposal Eight.
II. Proposal Eight
Background. In May 2023, the Postal
Service began using a new route
evaluation system, the Rural Route
1 Petition of the United States Postal Service for
the Initiation of a Proceeding to Consider Proposed
Changes in Analytical Principles (Proposal Eight),
November 21, 2023 (Petition). Proposal Eight is
attached to the Petition. The Petition was
accompanied by a study supporting its proposal.
See Michael D. Bradley, Calculating the Rural
Carrier Product Costs Arising Under the New
Evaluation System, November 21, 2023 (Bradley
Study). The Postal Service also filed a notice of
filing of public and non-public materials relating to
Proposal Eight. Notice of Filing of USPS–RM2024–
2–1 and USPS–RM2024–2–NP1 and Application for
Nonpublic Treatment, November 21, 2023.
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83887
Evaluated Compensation System
(RRECS), to determine each route’s
evaluated time, on which basis the
compensation for rural carriers is based.
Petition, Proposal Eight at 1. The Postal
Service states that RRECS replaces the
previous route evaluation system and is
materially different from the previous
system in three important ways. Id. at
1–2. First, RRECS presents a more
detailed classification of daily carrier
activities and can potentially identify
new linkages between rural carrier
volumes and rural carrier costs. Id. at 2.
Second, RRECS uses engineering and
statistical methods instead of negotiated
standards to establish time standards for
individual rural carrier activities, which
may lead to different volume variable
costs. Id. Third, RRECS uses current
data to determine the various counts
that are applied to the time standards to
determine evaluated time, unlike the
existing methodology that relies on a
special study (the Rural Mail Count) last
conducted in 2018 to capture those
counts. Id. The Postal Service concludes
that because of these differences, it is
likely that the relationship between
rural carrier costs and volumes has
changed, and changes to the existing
methodology are required to accurately
measure attributable rural carrier costs.
Id.
Proposal. Before describing the
proposal, the Postal Service notes that a
more detailed discussion of the research
supporting the proposal is provided in
the Bradley Study, and supporting data
are provided in Library References
USPS–RM2024–2–1 and USPS–
RM2024–2–NP1. Id. at 3.
The Postal Service states that because
RRECS links actual volumes to actual
rural carrier compensation, it is
appropriate to use RRECS data to
measure the variability of rural carrier
costs and to distribute attributable costs
to products. Id. The Postal Service
explains that although the existing
methodology has a solid casual basis, its
implementation is dated. Id. at 4. First,
it relies on Form 4241 negotiated
evaluation factors, which are no longer
used and do not reflect the current
relationships between volume and rural
carrier cost. Id. Second, it relies on
volumes from the Rural Mail Count
conducted in 2018, and there have been
material volume shifts since then. Id.
The Postal Service states that
updating the existing methodology
using data from RRECS also provides
two advantages for calculating
attributable costs. Id. First, RRECS
captures volume from ongoing
operational data systems, and volume
counts will be automatically updated
each year and will no longer depend on
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]]>Agencies
[Federal Register Volume 88, Number 230 (Friday, December 1, 2023)]
[Proposed Rules]
[Pages 83877-83887]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-26348]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Parts 247, 880, 884, 886, 891, and 966
[Docket No. FR-6387-P-01]
RIN 2501-AE09
30-Day Notification Requirement Prior to Termination of Lease for
Nonpayment of Rent
AGENCY: Office of the Secretary, U.S. Department of Housing and Urban
Development (HUD).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: Under this proposed rule, when tenants who reside in public
housing or in properties receiving project-based rental assistance
(PBRA) face eviction for nonpayment of rent, public housing agencies
(PHAs) and owners would need to provide those tenants with written
notification at least 30 days prior to the commencement of a formal
judicial eviction procedure for lease termination. For purposes of this
proposed rule, PBRA includes projects in the following programs:
Section 8 Project-Based Rental Assistance, Section 202/162 Project
Assistance Contract, Section 202 Project Rental Assistance Contract
(PRAC), Section 811 PRAC, Section 811 Project Rental Assistance Program
(811 PRA), and Senior Preservation Rental Assistance Contract Projects
(SPRAC). This proposed rule would curtail preventable and unnecessary
evictions by providing tenants with time and information to help cure
nonpayment violations.
DATES: Comments are due by January 30, 2024.
ADDRESSES: Interested persons are invited to submit comments regarding
this proposed rule. There are two methods for submitting public
comments. All submissions must refer to the above docket number and
title.
1. Submission of Comments by Mail. Members of the public may submit
comments by mail to the Regulations
[[Page 83878]]
Division, Office of General Counsel, Department of Housing and Urban
Development, 451 7th Street SW, Room 10276, Washington, DC 20410-0500.
Due to security measures at all Federal agencies, however, submission
of comments by standard mail often results in delayed delivery. To
ensure timely receipt of comments, HUD recommends that comments
submitted by standard mail be submitted at least two weeks in advance
of the deadline. HUD will make all comments received by mail available
to the public at www.regulations.gov.
2. Electronic Submission of Comments. Interested persons may submit
comments electronically through the Federal eRulemaking Portal at
www.regulations.gov. HUD strongly encourages commenters to submit
comments electronically. Electronic submission of comments allows the
commenter maximum time to prepare and submit a comment, ensures timely
receipt by HUD, and enables HUD to make them immediately available to
the public. Comments submitted electronically through the
www.regulations.gov website can be viewed by other commenters and
interested members of the public. Commenters should follow the
instructions provided on that site to submit comments electronically.
Note: To receive consideration as public comments, comments
must be submitted through one of the two methods specified above.
All submissions must refer to the docket number and title of the
rule.
No Facsimile Comments. Facsimile (FAX) comments are not acceptable.
Public Inspection of Public Comments. All properly submitted
comments and communications submitted to HUD are available for public
inspection and copying between 8 a.m. and 5 p.m. weekdays at the above
address. Due to security measures at the HUD Headquarters building, an
advance appointment to review the public comments must be scheduled by
calling the Regulations Division at 202-708-3055 (this is not a toll-
free number). HUD welcomes and is prepared to receive calls from
individuals who are deaf or hard of hearing, as well as individuals
with speech or communication disabilities. To learn more about how to
make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs. Copies of all
comments submitted are available for inspection and downloading at
www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
For Public and Indian Housing: Danielle Bastarache, Deputy
Assistant Secretary for Public Housing and Voucher Programs, 451 7th
Street SW, Room 4204, Washington, DC 20410, telephone number 202-402-
1380 (this is not a toll-free number). For a quicker response, email
[email protected].
For Multifamily: Ethan Handelman, Deputy Assistant Secretary for
the Office of Multifamily Housing Programs, 451 7th Street SW, Room
6106, Washington, DC 20410, telephone number 202-708-2495 (this is not
a toll-free number). For a quicker response, email
[email protected]. HUD welcomes and is prepared to receive calls
from individuals who are deaf or hard of hearing, as well as
individuals with speech or communication disabilities. To learn more
about how to make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.
SUPPLEMENTARY INFORMATION:
I. Background
Evictions Cause Harm to People and Families, and the Harm Is Not
Equally Distributed
Eviction has long created housing instability for renter households
and is linked to long-term negative consequences, particularly among
children.\1\ When children are forced to move from their homes, they
often experience increased health risks and decreased educational
attainment, owing partly to the disrupted social networks of these
forced moves.\2\ Eviction filings also put households at increased the
risks of homelessness, thereby burdening already over-subscribed State
resources, including the shelter system.\3\ Estimates of the share of
evicted households that enter homeless shelters range from 14 percent
to 25 percent.\4\ Without a steady address, low-income households
experience difficulty applying for and maintaining employment. In fact,
low-income renters who experience a forced move are more likely to
experience a subsequent job loss.\5\ Across a range of health and
mental health outcomes including depression, anxiety, Body Mass Index
(BMI) and mortality, forced moves resulting from eviction are
impactful.\6\
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\1\ Sandel, Megan, et al. (2018). Unstable housing and caregiver
and child health in renter families. Pediatrics 141(2); Cutts, Diana
B., et al. (2022). Eviction and household health and hardships in
families with very young children. Pediatrics 150(4).
\2\ Maxia Dong et al., ``Childhood Residential Mobility and
Multiple Health Risks during Adolescence and Adulthood: The Hidden
Role of Adverse Childhood Experiences,'' Archives of Pediatrics &
Adolescent Medicine 159, no. 12 (2005): 1104-1110; Shana Pribesh and
Douglas B. Downey, ``Why Are Residential and School Moves Associated
with Poor School Performance?,'' Demography 36, no. 4 (November 1,
1999): 521-34; Kathleen M. Ziol-Guest and Claire C. McKenna, ``Early
Childhood Housing Instability and School Readiness,'' Child
Development 85, no. 1 (January 1, 2014): 103-13; Philip Garboden,
Tama Leventhal, and Sandra Newman, ``Estimating the Effects of
Residential Mobility: A Methodological Note,'' Journal of Social
Service Research 43, no. 2 (March 15, 2017): 246-61; Amy Ellen
Schwartz, Leanna Stiefel, and Sarah A. Cordes, ``Moving Matters: The
Causal Effect of Moving Schools on Student Performance,'' Education
Finance and Policy, May 18, 2016, 1-47.
\3\ Treglia, Daniel, Thomas Byrne, and Vijaya Tamla Rai. 2023.
``Quantifying the Impact of Evictions and Eviction Filings on
Homelessness Rates in the United States.'' Housing Policy Debate.
\4\ See Collinson, R., Reed, D. (2018). The Effects of Evictions
on Low-Income Households and Innovation for Justice. (2020). The
Cost of Eviction Calculator. University of Arizona, James E. Rogers
College of Law. https://law.arizona.edu/eviction-calculator. See
alsohttps://www.huduser.gov/portal/periodicals/em/Summer21/highlight1.html and National Law Center on Homelessness and Poverty.
(2020); Protect Tenants, Prevent Homelessness. https://nlchp.org/wpcontent/uploads/2018/10/ProtectTenants2018.pdf.
\5\ Desmond, Matthew and Carl Gershenson. 2016. ``Housing and
Employment Insecurity among the Working Poor.'' Social Problems.
63(1): 46-67.
\6\ Desmond, M., Gershenson, C., & Kiviat, B., Forced Relocation
and Residential Instability Among Urban Renters, Journal of Urban
Health, 92(2), 254-267 (2015), https://doi.org/10.1007/s11524-015-9932-2; Desmond, M., & Shollenberger, T., Forced Displacement from
Rental Housing: Prevalence and Neighborhood Consequences,
Demography, 52(5), 1751-1772 (2015), https://doi.org/10.1007/s13524-015-0424-y; Cutts, D.B., Darby, M.L., & Billings, J., The Role of
Housing Assistance in Achieving Educational Goals for Low-Income
Children, American Journal of Public Health, 100(S1), S84-S90
(2010), https://doi.org/10.2105/AJPH.2009.170910; Desmond, M., &
Kimbro, R.T., Eviction's Fallout: Housing, Hardship, and Health,
Social Forces, 94(1), 295-324 (2015), https://doi.org/10.1093/sf/sou065; HUD (2021), Affordable Housing, Eviction, and Health,
Evidence Matters, https://www.huduser.gov/portal/periodicals/em/Summer21/highlight1.html. See also Desmond, Matthew, Unaffordable
America: Poverty, housing, and eviction, Fast Focus, 22-2015,
University of Wisconsin-Madison, Institute for Research on Poverty,
4.
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People of color, women, and families with children are more likely
to be evicted. A 2020 study found Black renters received a
disproportionate share of eviction filings and experienced the highest
rates of eviction filings and eviction judgments. The study stated that
Black and Latinx female renters faced higher eviction rates than their
male counterparts.\7\ Another study found that almost 15 percent of
American children born in large cities between 1998 and 2000 had
experienced an eviction by age 15. The percentage was approximately 29
[[Page 83879]]
percent for children living in deep poverty.\8\
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\7\ Hepburn, P., Louis, R., & Desmond, M., Racial and Gender
Disparities among Evicted Americans. Sociological Science 7, 657
(2020), https://doi.org/10.15195/v7.a27.
\8\ Lundberg, I., & Donnelly, L., A Research Note on the
Prevalence of Housing Eviction Among Children Born in U.S. Cities,
Demography, 56(1), 391-404 (2019). https://doi.org/10.1007/s13524-018-0735-y.
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HUD does not have public data on the numbers of people in
subsidized housing who experience eviction. There is also very limited
data on how many people in subsidized households experience
homelessness after eviction. However, one California survey of people
experiencing homelessness found that 6% of people experiencing
homelessness had received some form of subsidy prior to becoming
homeless.\9\
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\9\ The California Statewide Study of People Experiencing
Homelessness at 33 (June 2023), available at https://homelessness.ucsf.edu/sites/default/files/2023-06/CASPEH_Report_62023.pdf.
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Absent Federal Rules and Laws, Tenants Are Subject to a Variable
Patchwork of Notice Requirements
HUD-subsidized housing programs make up one portion of the nation's
much larger rental housing market. Absent a Federal rule or statute,
housing in the rental housing market is subject to the laws of the
locality and state where the housing is located.\10\ This is the case
for both HUD-subsidized housing programs and for the non-subsidized
rental housing market.
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\10\ The laws of many States and localities around notice
requirements may be found in a database created and managed by the
Legal Services Corporation: https://www.lsc.gov/initiatives/effect-state-local-laws-evictions/lsc-eviction-laws-database. See also
National Conference of State Legislatures, ``Family-Friendly Courts:
State Legislatures' Role in Improving Eviction Proceedings,'' June
28, 2023, https://www.ncsl.org/human-services/family-friendly-courts-evictions; Bradford, Ashley C. and Bradford, W. David, The
Effect of State and Local Housing Policies on County-Level Rent and
Evictions in the United States, 2004-2016 (September 30, 2021).
Available at SSRN: https://ssrn.com/abstract=3623318 or https://dx.doi.org/10.2139/ssrn.3623318; Sudeall, Lauren and Pasciuti,
Daniel, Praxis and Paradox: Inside the Black Box of Eviction Court
(March 2, 2021). 73 Vanderbilt Law Review 1365 (2021), Georgia State
University College of Law, Legal Studies Research Paper No. 2021-19,
Available at SSRN: https://ssrn.com/abstract=3796279.
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HUD's Interim Final Rule Already Requires 30 Days of Notice for Certain
Subsidized Tenants Facing Eviction for Nonpayment of Rent
On October 7, 2021, HUD published an interim final rule titled
``Extension of Time and Required Disclosures for Notification of
Nonpayment of Rent'' (the interim final rule), to assist with the
response to the national COVID-19 pandemic and future national
emergencies (86 FR 55693, October 7, 2021). HUD, along with other
Federal agencies, responded to the national emergency declaration
during the COVID-19 pandemic \11\ with efforts to support families
impacted financially by the COVID-19 pandemic and at risk of losing
their housing.\12\
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\11\ See 42 U.S.C. 5121 et seq.; see also The White House, A
Letter on the Continuation of the National Emergency Concerning the
Coronavirus Disease 2019 (COVID-19) Pandemic, Feb. 24, 2021, https://www.whitehouse.gov/briefing-room/statements-releases/2021/02/24/a-letter-on-the-continuation-of-the-national-emergency-concerning-the-coronavirus-disease-2019-covid-19-pandemic/.
\12\ See, e.g., HUD, Mortgagee Letter 2020-04: Foreclosure and
Eviction Moratorium in Connection with the Presidentially Declared
COVID-19 National Emergency, Mar. 18, 2020, https://www.hud.gov/sites/dfiles/OCHCO/documents/20-04hsgml.pdf; U.S. Dep't of
Agriculture, Stakeholder Announcement: USDA Announces Guaranteed
Housing Foreclosure and Eviction Relief, Mar. 19, 2020, https://www.rd.usda.gov/node/17107.
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Under the interim final rule, the Secretary can extend the time
period before lease termination for nonpayment of rent to a minimum of
30 days. Pursuant to the interim final rule, HUD issued a joint Public
and Indian Housing (PIH) and Housing notice on October 7, 2021 (Notice
PIH 2021-29 and H 2021-06).\13\ The rule also provides that the
Secretary may require that PHAs and PBRA owners provide tenants with
information regarding any Federal funding that is made available to
prevent eviction for nonpayment of rent during a national emergency
(such as funding through the Emergency Rental Assistance Program
created in response to the COVID-19 pandemic).\14\
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\13\ https://www.hud.gov/sites/dfiles/PIH/documents/PIH-2021-29.pdf.
\14\ See U.S. Dep't of the Treasury, Emergency Rental Assistance
Program, https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-assistance-program.
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In response to the interim final rule, many commenters expressed
their support for adequate notice prior to eviction. Commenters said
that sufficient notice provides tenants the opportunity to apply for
rent recalculation if their family circumstances warranted such a
request or obtain other support available to them, and that the
requirement for 30-day notice prior to eviction should not be limited
to times of a Presidentially declared national emergency. HUD agrees
with these commenters, and in this proposed rule, HUD is extending the
30-day notice requirement (the 30-day notice) to situations outside of
a national emergency. Some commenters expressed concerns, stating for
example: the eviction notice timeline should be longer and cover all
reasons for eviction; the rule does not provide protections to tenants
with existing eviction cases; the notice template provided by HUD is
likely not accessible for most tenants who may be individuals with
disabilities; the rule should extend protections to all renters in
federally assisted housing, including Housing Choice Voucher (HCV) and
Project Based Voucher (PBV) holders; the rule's protections should also
extend to rental assistance demonstration (RAD) PBV properties; and
extending eviction notice requirements cause landlords to lose an
additional month of income, and that postponing evictions for
nonpayment of rent merely delays evictions, reduces operating income,
and increases costs to landlords. HUD looks forward to the public
comments received on this proposed rule now that owners and PHAs have
had experience implementing the interim final rule.
Before 2021, HUD Regulated Eviction for Non-Payment and Notices in
Program-Specific Ways
Prior to the interim final rule, HUD's regulations and statutory
authorities regulated eviction for non-payment and the timing of
eviction notices only in certain scenarios for particular HUD programs.
In some cases, these provisions were imposed by Congress via statute,
while in others, the provisions were imposed by HUD regulations.
Pre-2021 requirements around notice and/or non-payment:
[[Page 83880]]
----------------------------------------------------------------------------------------------------------------
Program(s) Regulation Summary of provision
----------------------------------------------------------------------------------------------------------------
Public housing.......................... 24 CFR 966.4............... Non-payment, notice: In the case of
termination for nonpayment of rent, a
PHA shall provide at least fourteen
days' written notice.
Project-based rental assistance programs 24 CFR 247.4(c)............ Non-payment, notice: For termination for
nonpayment of rent, a termination notice
must be provided with enough advance
time to comply with both the rental
agreement or lease and State laws.
Notice: For termination of tenancy for
``other good cause,'' HUD regulations
require 30 days' notice along with the
provision of specific information to the
tenant.
Project-Based Section 8................. 24 CFR 880.607(c)(2); 24 Non-payment notice: For termination for
CFR 247.4(c). nonpayment of rent, the time of service
must be in accord with the lease and
State law.
Notice: For termination of tenancy for
``other good cause,'' HUD regulations
require 30 days' notice along with the
provision of specific information to the
tenant.
Section 8 Moderate Rehabilitation 24 CFR 882.511(d)(1)(i).... Non-payment, notice: Five working days
Program. notice required before tenancy
termination for non-payment.
----------------------------------------------------------------------------------------------------------------
Outside of the specific requirements in authorizing statutes and
HUD regulations for specific HUD programs, housing providers have also
been required to comply with the laws of the States and localities
where particular HUD-subsidized housing is located. HUD estimates that
approximately 70% of HUD-assisted households for public housing and
project-based rental assistance live in States that require housing
providers to provide tenants with an eviction notice for nonpayment of
rent 7 days or less before eviction, 26% of these households live in
States that require 8-14 days, and 3% live in States that require 15-30
days.\15\
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\15\ Estimate based on HUD's cross-reference on distribution of
subsidized households across States with external analysis of legal
requirements per State for non-payment of rent notice (https://www.nolo.com/legal-encyclopedia/state-laws-on-termination-for-nonpayment-of-rent.html).
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Additionally, eviction actions must be consistent with and must not
be discriminatory under applicable Federal civil rights laws. See 24
CFR part 5, subpart A and 24 CFR part 5, subpart L. HUD has broad
investigatory and enforcement powers, relevant to eviction, under these
civil rights authorities, including but not limited to, the Fair
Housing Act, the Americans with Disabilities Act, section 504 of the
Rehabilitation Act, Title VI of the Civil Rights Act, and the Violence
Against Women Act (VAWA). Each of these laws provides additional
protections against unlawful discrimination for certain individuals and
groups facing eviction from HUD-subsidized housing. In particular, the
Fair Housing Act, section 504 of the Rehabilitation Act, and the
Americans with Disabilities Act require housing providers, among other
requirements, to consider and provide reasonable accommodation to
individuals with disabilities during all stages of the housing process,
including during eviction. Under Title VI of the Civil Rights Act,
subsidized housing providers are required to provide limited English
proficient persons with meaningful access to their programs and
services. This includes providing language assistance services to
limited English proficient persons during eviction. HUD also has
guidance around language access that should be interpreted to govern
notice provisions.\16\
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\16\ Federal Register Notice, FR-4878-N-02, Final Guidance to
Federal Financial Assistance Recipients Regarding Title VI
Prohibition Against National Origin Discrimination Affecting Limited
English Proficient Persons.
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Under VAWA, a covered housing provider cannot evict on the basis or
as a direct result of the fact that the tenant is or has been a victim
of domestic violence, dating violence, sexual assault, or stalking. See
24 CFR part 5, subpart L, and program-specific regulations. Also, an
eviction cannot penalize someone based on their requests for assistance
or based on criminal activity of which they are a victim or otherwise
not at fault under statutes, ordinances, regulations, or policies
adopted or enforced by covered governmental entities. See 34 U.S.C.A.
12495. The protections afforded under these authorities are broad and
HUD can enforce them with respect to eviction actions for nonpayment of
rent.
Non-Payment Evictions From HUD-Assisted Housing May Be Preventable
Most households in HUD-subsidized housing are low-income, with
annual household incomes for households in the public housing and
project-based Section 8 programs both under $16,000.\17\ These
households have limited financial reserves, leaving them especially
vulnerable to income shocks or financial emergencies. Tenants in HUD-
assisted housing typically pay rent based on their incomes and need
adequate time after they experience a drop in income to work with their
housing provider to document that change and ensure their rent is
properly calculated based on their financial circumstances. Providing
more time and notice may help the household and their housing provider
to work together to pursue a minimum rent hardship exemption and/or
rent recalculation to adjust the amount of rent a tenant will owe.
Prior to and as an alternative to a formal judicial eviction
proceeding, PHAs and owners must work with tenants to recalculate rent
and may make appropriate repayment plans which can then make a formal
judicial eviction filing for non-payment of rent unnecessary.
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\17\ Data available at https://www.huduser.gov/portal/datasets/assthsg.html.
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Many HUD-assisted households pay an amount of rent that is based on
their incomes. When HUD-assisted households experience a reduction in
income, they may request an interim reexamination to determine whether
the amount of rent they pay should be changed.\18\
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\18\ 24 CFR. 960.257(b); see also https://www.hud.gov/sites/dfiles/PIH/documents/PHOG_Reexaminations_FINAL.pdf and https://www.hud.gov/sites/documents/43503c5HSGH.PDF.
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HUD-assisted households can also request a hardship exemption. A
minimum rent hardship exemption is an exemption from paying the minimum
rent that the PHA or owner normally charges, allowing the household to
pay as little as zero dollars in rent if the household has experienced
a qualifying financial hardship.\19\ A qualifying financial hardship
includes when a family would be evicted because the family is unable to
pay the minimum rent.\20\ Whether a household is granted a minimum rent
hardship exemption will depend on whether the family has
[[Page 83881]]
experienced a qualifying financial hardship.\21\ A minimum rent
hardship may be temporary or long term and a PHA may not evict a family
for non-payment of minimum rent during the 90-day period beginning the
month following the family's request for a hardship exemption.\22\ They
are granted a rent recalculation, depending on the amount of the income
reduction, and the intention is for the family to experience a rent
reduction, if the family's income decreases.\23\
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\19\ 24 CFR 5.630, see also Public Housing Minimum Rent and
Hardship Exemption Requirements Toolkit, HUD Exchange, https://www.hudexchange.info/programs/public-housing/public-housing-minimum-rent-and-hardship-exemption-requirements-toolkit/ and the specific
additional circumstances that qualify as qualifying financial
hardships in the PHA's or Multifamily housing (MFH) owner's ACOPs
(Admissions and Continued Occupancy Policy), Administrative Plans,
or Tenant Selection Plans, as applicable.
\20\ 24 CFR 5.630(b)(1)(ii).
\21\ Circumstances that always constitute a qualifying financial
hardship are detailed in 24 CFR 5.630(b)(1)(i)-(iv); additional
circumstances are provided by the housing provider in the PHA's or
Multifamily housing (MFH) owner's ACOPs (Admissions and Continued
Occupancy Policy), Administrative Plans, or Tenant Selection Plans,
as applicable.
\22\ 24 CFR 5.630(b)(2).
\23\ Section 3(a) United States Housing Act of 1937, as amended
by section 102 of the Housing Opportunity Through Modernization Act
of 2016 (HOTMA), Public Law 114-201, 130 Stat. 782. Also see, HUD's
implementing regulations at 24 CFR 5.657(c)(2), 882.515(b)(2),
891.410, 960.257(b)(2), and 982.516(c)(2).
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Even where households do not qualify for such measures, such as
when the income reduction does not meet the threshold requirement for
an interim reexamination or qualify for a hardship exemption in
accordance with the multifamily housing owner's or PHA's ACOPs,
Administrative Plans, or Tenant Selection Plans, as applicable, the
family may still be able to arrange repayment plans that allow tenants
to remain housed and make the PHA or owner whole, subject to PHA/owner
discretion. For example, one manager of approximately $14 billion of
largely affordable and military housing was able to successfully use
tenant supports that included affordable, longer-term, fee-free
repayment plan options to prevent formal judicial eviction filings and
save money that otherwise would have been spent on costly eviction
proceedings.\24\ HUD has issued guidance on creating reasonable and
affordable repayment agreements for unpaid rent that keep households
stably housed.\25\
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\24\ King, S. (2021). How One of Boston's Top Evictors Changed
Its Ways. Shelterforce. https://shelterforce.org/2021/12/03/how-one-of-bostons-top-evictors-changed-its-ways/.
\25\ Repayment Agreement Guidance, PIH. https://www.hud.gov/sites/dfiles/PIH/documents/Attachment4_Repayment_Agreement_Guidance.pdf.
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While HUD programs enable residents to report changes in incomes
through income recertification and hardship waivers, a 30-day notice
requirement provides tenants with more time to report income changes
before housing providers commence a formal judicial eviction
proceeding. A 30-day notice requirement also allows time for tenants
and PHAs or owners to negotiate repayment plans. Independent research
also confirms that longer notice periods are correlated to a lower
eviction filing rate.\26\ As discussed in the Regulatory Impact
Analysis for this proposed rule, given the size of the HUD programs in
2022, it is estimated that between 1,600 and 4,900 nonpayment related
moveouts in Public Housing and PBRA-assisted housing are prevented each
year because of the existing 30-day notice requirements of the CARES
Act and HUD's interim final rule.
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\26\ Gromis, A., et al., Estimating Eviction Prevalence Across
the United States, Proceedings of the National Academy of Sciences
of the United States of America, 6 (2022.) https://doi.org/10.1073/pnas.2116169119.
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II. Proposed Rule
HUD is proposing to amend its regulations to require that tenants
in properties with project-based rental assistance (PBRA) \27\ and
tenants in public housing be provided with written notification at
least 30 days prior to lease termination resulting from nonpayment of
rent (the 30-day notice). For PBRA and public housing, HUD would be
setting a minimum requirement, so owners and PHAs may provide a longer
notice period if they wish to.
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\27\ For purposes of this proposed rule, PBRA includes projects
in the following programs: Section 8, Section 202/162 Project
Assistance Contract, Section 202 Project Rental Assistance Contract
(PRAC), Section 811 PRAC, Section 811 Project Rental Assistance
Program (811 PRA), and Senior Preservation Rental Assistance
Contract Projects (SPRAC).
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This proposed rule would revise HUD's regulations in 24 CFR parts
247, 880, 884, 886, 891, and 966 to provide for a 30-day notification
requirement prior to evicting a tenant for nonpayment of rent,
regardless of the availability of Federal funding to prevent eviction
due to a presidentially declared national emergency. That is, the 30-
day notification requirement from the interim final rule would be
generally applicable and would no longer be contingent on the existence
of a national emergency and the availability of emergency rental
assistance funds.
The proposed rule would also require that the 30-day notice include
instructions on how tenants can cure lease violations for nonpayment of
rent. These instructions would allow tenants to clearly understand how
to avoid the commencement of a formal judicial eviction proceeding for
non-payment of rent. Instructions on how the tenant can cure the
nonpayment of rent violation would include the alleged amount of rent
owed by the tenant, any other arrearages allowed by the HUD program,
and the date by which the tenant must pay the rent and arrearages to
avoid the filing of an eviction action in State court against the
tenant's household. The proposed rule would also require that the 30-
day notice include information on how tenants can recertify their
income and how tenants can request a minimum rent hardship exemption if
applicable.
HUD also recommends the best practice of entering into a rental
repayment agreement as an alternative to a lump-sum payment for past
due amounts. PHAs are also encouraged to include information about how
to switch from flat rent to income-based rent.
The 30-day notice must be provided in accessible formats to ensure
effective communication for individuals with disabilities, and in a
form to allow meaningful access for persons who are limited English
proficient (LEP). PHAs and owners must comply with the
nondiscrimination requirements contained in Title VI of the Civil
Rights Act of 1964 and Section 504 of the Rehabilitation Act of 1973
along with HUD's regulations implementing those laws. Title VI's
requirements with respect to national origin discrimination including
meaningful access for people with limited English proficiency are set
forth in HUD's ``Final Guidance to Federal Financial Assistance
Recipients Regarding Title VI Prohibition Against National Origin
Discrimination Affecting Limited English Proficient Persons'' issued on
January 22, 2007 and available at https://www.hud.gov/sites/documents/FINALLEP2007.PDF.
Additionally, HUD suggests the 30-day notice advise individuals of
their right to request reasonable accommodations, include information
on how individuals with disabilities can request reasonable
accommodation, and include a point of contact for reasonable
accommodation requests. There are instances in which a tenant may be
entitled to a reasonable accommodation in cases of non-payment of
rent.\28\ For example, if a housing provider usually requires rent be
paid on the 1st of the month, but a tenant receives disability-related
government assistance later in the month, the housing provider may be
required to accept a tenant's request to
[[Page 83882]]
pay rent on this later date as a reasonable accommodation.\29\
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\28\ See Joint Statement of HUD and DOJ, ``Reasonable
Accommodations Under the Fair Housing Act'' (May 17, 2004),
available at https://www.justice.gov/sites/default/files/crt/legacy/2010/12/14/joint_statement_ra.pdf.
\29\ See Fair Housing for Individuals with Mental Health,
Intellectual or Developmental Disabilities: A Guide for Housing
Providers (``What are reasonable accommodations and modifications? .
. . Asking to change the due date for rent until after receipt of a
social security disability heck or a short- or long-term disability
payment . . .''), available at https://www.hud.gov/sites/dfiles/FHEO/images/MD%20Fact%20Sheet%20-%20HP.pdf. See also Initial
Decision and Consent Order, HUD v. Park Regency LLC et al. (October
29, 2020), available at https://www.hud.gov/sites/dfiles/FHEO/images/20HUDOHA_InitDecisionConsent.pdf (providing the reasonable
accommodation of a fee-free rent payment grace period until the 6th
of each month and paying $27,000 to complainant); Fair Hous. Rts.
Ctr. in Se. Pennsylvania v. Morgan Properties Mgmt. Co., LLC, 2017
WL 1326240, at *4 (E.D. Pa. Apr. 11, 2017) (Denying defendants'
motion for judgement and allowing a civil rights suit to proceed
where defendant, the owner of three apartment buildings, refused to
agree to accept monthly rent payments on a later date each month
where the later monthly payment timing was due to the plaintiffs'
disability and receipt of financial disability benefits.); Charge of
Discrimination, HUD v. Morbach et al. (March 20, 2006), available at
https://www.hud.gov/sites/documents/DOC_14412.PDF.
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Once this rule is finalized, HUD plans to issue sample language
that PHAs and owners may use. PHAs and owners would also be permitted
to draft their own notices if those notices included the required
contents laid out in the final version of the rule. HUD will follow the
Plain Writing Act of 2010 and the Paperwork Reduction Act when drafting
these notices. The agency will also consider best customer experience
practices to ensure the sample language is easy to use and understand
for tenants, PHAs, and owners. As HUD provides model notices and other
guidance to assist with implementation of this proposed rule, HUD is
interested in comments on how to ensure tenant-directed materials such
as model leases and notices follow the principles of plain writing,
user-centered design, and equitable design.
PHAs and owners would be required to serve this 30-day notice to a
tenant or household. Prior to filing a formal judicial eviction, PHAs
and owners must ensure that at least 30 days pass following the service
of this notice. Some States, localities and territories may have
additional timing requirements for serving notices on tenants for non-
payment of rent.\30\ The timing for the service of non-payment of rent
notices required under State or local law may run concurrently with the
timing requirements of this 30-day notice, unless State or local law
requires that such notice be consecutive. Regardless of State or local
laws on the timing of non-payment notices, owners and PHAs regulated by
this rule must ensure that they do not file a formal judicial eviction
until at least 30 days have passed following the service of the notice
mandated by this rule. HUD notes the requirements under this rule,
including its proposed requirement that the 30-day notice may run
consecutive to any additional State or local notice requirements if
required by State or local law, do not preempt any State or local law
that provides greater or equal protection for tenants.
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\30\ See the Legal Services Corporation's comprehensive guide to
local eviction laws here: https://www.lsc.gov/initiatives/effect-state-local-laws-evictions/lsc-eviction-laws-database.
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Furthermore, this rule would require that PHAs and owners amend all
current and future leases to properly incorporate the 30-day notice
requirement for nonpayment of rent. PHAs and owners would also need to
provide tenants with notification of changes to the lease under
existing requirements in 24 CFR 880.607(d) and 24 CFR 966.3. Section
880.607(d) requires that an owner, when modifying a lease, serve
appropriate notice to tenants at least 30 days prior to the last date
on which a tenant has the right to terminate tenancy. This provision
applies to PBRA projects under 24 CFR parts 880, 881, and 883 (The New
Construction, Substantial Rehab and Housing Finance Agency (HFA)
programs). Section 966.3 requires a PHA to provide at least 30 days'
notice to tenants of proposed changes to the lease, and an opportunity
for tenants to present written comments.
HUD understands that it will take time for PHAs and owners to
incorporate the 30-day notice requirement into leases and to provide
notification that the leases will be modified. Accordingly, HUD
proposes to provide PHAs with an additional 18 months after this rule
becomes effective to comply with the requirement that the lease contain
a provision or addendum incorporating the 30-day notice requirement.
Since HUD will issue model leases for PBRA programs, this rule would
provide PBRA owners with 14 months from the date that HUD publishes a
final model lease that complies with the rule to comply with the
requirement to update the lease. HUD plans to issue model leases within
a year of the effective date of this rule. HUD will issue a Federal
Register document to advise the public once the new model leases are
available.
Additionally, the proposed rule incorporates the interim final
rule's requirement that, in the event of a presidentially declared
national emergency, PHAs and owners would also need to provide tenants
with other specified information, as required by the Secretary, to
prevent eviction for nonpayment of rent. This proposed rule would
permit the agency flexibility in the case of any presidentially
declared national emergency to require additional information in the
30-day notice. Unlike the interim final rule, there is no requirement
in this proposed rule that PHAs and owners must include notification of
available emergency rental assistance funds. Rather this proposed rule
would provide the flexibility to the Secretary to require this
information, or other information, depending on the circumstances of a
given national emergency.
HUD has considered the perspectives of stakeholders and subject
matter experts in drafting this rule. The Department routinely hears
from and carefully considers the perspectives of PHAs and owners, and
the multiple associations that represent those PHAs and owners. The
Department has also solicited the perspectives of tenants in HUD-
subsidized housing and the perspectives of people who provide support
and legal representation to those tenants. HUD has conducted listening
sessions with tenants who reside in HUD-subsidized housing. HUD has
also consulted with non-profit legal service providers who represent
subsidized tenants in eviction proceedings and other eviction
prevention actions. In addition, HUD has considered the perspectives of
scholars and legal experts who study eviction prevention and has
reviewed key decisions related to evictions made by State courts.
Preventable Evictions Frustrate HUD's Mission
HUD's authorizing statutes require the Department to provide for
full and appropriate consideration of the people who live and work in
the Nation's communities \31\ and to work toward the goal of ``a decent
home and a suitable living environment for every American family''--
especially for lower-income families.\32\ The programs that would be
subject to this proposed rule perform an essential function toward the
goal of ensuring a decent home for lower-income families.
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\31\ 42 U.S.C. 3531.
\32\ Section 2 of the Housing Act of 1949; section 2 of the
Housing and Urban Development Act of 1968.
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In most cases, program participant owners and PHAs collect rent
from tenants and may evict low-income tenants for non-payment of rent.
A number of legal service providers for low-income tenants have
reported an uptick in eviction cases for non-
[[Page 83883]]
payment of rent in public housing compared to pre-pandemic levels.\33\
HUD is proposing to amend its regulations to provide adequate notice
and key information to tenants facing non-payment of rent cases to
reduce the number of preventable evictions filed against tenants in
HUD-assisted housing.
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\33\ See, e.g., National Housing Law Project. (2022). Rising
Evictions in HUD-Assisted Housing: Survey of Legal Aid Attorneys.
https://www.nhlp.org/wp-content/uploads/HUD-Housing-Survey-2022.pdf.
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Preventable evictions for non-payment of rent in HUD-assisted
housing hinder the Department's work and frustrate HUD's programmatic
efficiency. Accordingly, by reducing preventable evictions, this
proposed rule would advance HUD's statutory purposes.
PHAs and Owners Have Already Demonstrated Their Capacity To Comply With
These Proposed Changes
PHAs and owners of properties receiving PBRA have already
demonstrated their capacity to comply with a 30-day notice requirement
prior to an eviction, as demonstrated by their compliance with HUD's
interim final rule. PHAs and owners showed that they could provide the
required minimum 30-day notification to terminate a lease for
nonpayment of rent during the COVID-19 national emergency. In addition,
the CARES Act 30-day notice to vacate requirement for nonpayment of
rent, in section 4024(c)(1), is still in effect for all CARES Act
covered properties.\34\ HUD also currently already requires 30-day
tenant notification related to certain types of evictions in PIH and
Multifamily programs unrelated to nonpayment of rent.\35\ Some
jurisdictions have also already imposed their own 30-day eviction
notice requirements on housing providers related to nonpayment of rent
and other causes.\36\
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\34\ See Public Law 116-136, 134 Stat. 281 (2020); 15 U.S.C.
9058 (``The lessor of a covered dwelling unit [. . .] may not
require the tenant to vacate the covered dwelling unit before the
date that is 30 days after the date on which the lessor provides the
tenant with a notice to vacate.'' See also Sherwood Auburn LLC v.
Pinzon, 521 P.3d 212 (Wash. Ct. App. 2022), review denied, 526 P.3d
848 (Wash. 2023); In re: Arvada Village Gardens LP v. Ana Garate,
2023 WL 3444733 (Colo. 2023); W. Haven Hous. Auth. v. Armstrong,
2021 WL 2775095, at *3 (Conn. Super. Ct. Mar. 16, 2021) (all cases
affirm the ongoing applicability of this 30 day notice to covered
dwelling units).
\35\ See 42 U.S.C. 1437d(l); 24 CFR 966.4(l)(3)(i)(B)), and 24
CFR 966.4(l)(3)(i) (providing for a 30-day notice period for
evictions from public housing in certain situations). The section 8
project-based rental assistance programs require 30 days' notice
when the grounds for eviction is ``other good cause.'' State law and
the lease govern the length of the notice period for material
noncompliance with lease, noncompliance with State law, or criminal
activity/alcohol abuse. 24 CFR 880.607, 24 CFR 247.4(e); 90105a
Model Lease, Handbook 4350.3 para. 8-13-B 2(e) (PBRA). Section 202/
811 programs require 30-day notice for all eviction grounds. Section
202 PRAC: 24 CFR 891.430(b), 90105c Model Lease para. 8(b)(1);
Section 811 PRAC: 42 U.S.C. 8013(i)(2)(B), 24 CFR 891.430(b), 90105d
Model Lease para. 8(b)(1); Section 202/8: 24 CFR 891.630(b), Model
Lease para. 9(b) (HUD-90105-b); Section 202/162: 24 CFR 891.770(b)
Model Lease para. 9(b) (HUD-90105-b); Section 811 PRA: 42 U.S.C.
8013(i)(2)(B), Model Lease para. 8(b) (HUD-92236-PRA); SPRAC:
Section 2.6(b) of SPRAC II (HUD-93742a).
\36\ See, e.g., D.C. Code sec. 42-3505.01 (``A housing provider
shall provide the tenant with notice of the housing provider's
intent to file a claim against a tenant to recover possession of a
rental unit for the non-payment of rent at least 30 days before
filing the claim.''); Wis. Stat. sec. 704.17(3)(a) (``If a tenant
under a lease for more than one year fails to pay rent when due . .
. the tenancy is terminated if the landlord gives the tenant notice
requiring the tenant to pay the rent . . . on or before a date at
least 30 days after the giving of the notice, and if the tenant
fails to comply with the notice.''); 21 Guam Code Ann. Sec. 48401(b)
(``If rent is unpaid when due and the tenant fails to pay rent five
(5) days after written notice by the landlord of nonpayment and his
intention to terminate the rental agreement if the rent is not paid
within that period, the landlord may terminate the rental agreement
thirty (30) days after receipt of notice.''); V.I. Code Ann. tit.
28, sec. 843 (``In any action for the recovery of possession of
rented premises, written notice to quit must have been served upon
the tenant or person in possession for a period of 30 days before
the commencement of such action.'').
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This Proposed Rule Would Align Non-Payment Requirements Across HUD
Programs
This proposed rule would simplify requirements across many HUD
programs by creating one clear floor and simple standards around how
and when notice for lease termination due to non-payment of rent should
be provided. In most cases, the regulated programs are already subject
to regulatory restrictions around how and when tenants are notified of
lease termination due to non-payment of rent. Since in many cases
funding for affordable housing can come from multiple sources, this
proposed rule would also align the requirements to match that of
another key HUD program, the HOME program, which is often combined with
some of the programs covered by this rule.\37\
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\37\ See, e.g., requirements for the HOME Investment
Partnerships Program (HOME), which requires 30 days' notice before
terminating or refusing to renew tenancy. See 24 CFR 92.253(c) (``To
terminate or refuse to renew tenancy, the owner must serve written
notice upon the tenant specifying the grounds for the action at
least 30 days before the termination of tenancy.'') The HOME program
statute requires not less than 30 days' notice unless the grounds
for tenancy termination involve direct threat to the safety of
tenants or employees or serious threat to property. See 42 U.S.C.
12755(b).
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This Rule May Assist PHAs and Owners To Resolve Rental Arrears
Owners and PHAs fund the housing they provide by relying both on
HUD's portion of rental subsidies and on tenant rent payments. The
portion of rent that tenants in assisted housing must pay is set by
Federal law and may vary when tenants experience fluctuations in
income. Tenants are responsible for paying the portion of rent assigned
to them. In most cases, tenants are responsible for informing the PHA
or owner when they experience an income fluctuation that would result
in a rent recalculation or hardship waiver. Housing providers face
financial uncertainty when tenants do not pay their rent and also face
a costly process with formal judicial eviction proceedings. It is
generally more cost-efficient for housing providers to assist tenants
in curing their non-payment of rent, for example by first providing
notice as would be required by this rule, as opposed to evicting
tenants for non-payment of rent.\38\
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\38\ See, e.g., Philip M.E. Garboden and Eva Rosen. 2019.
``Serial Filing: How Landlords Use the Threat of Eviction,'' City &
Community 18:2, 638, 646; Gretchen Purser. 2014. ``The Circle of
Dispossession: Evicting the Urban Poor in Baltimore,'' Critical
Sociology 42:3, 393, 401.
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HUD looks forward to receiving comments on this proposed rule for
how to make this workable for different types of HUD stakeholders.
Statutory Authority and Consistency With Current Regulations
HUD has general rulemaking authority under 42 U.S.C. 3535 to
implement its statutory mission, which is to provide assistance for
housing to promote ``the general welfare and security of the Nation and
the health and living standards of [its] people.'' \39\ Each year, HUD
provides States, local governments, and housing providers with billions
of dollars in Federal financial assistance, appropriated and authorized
by Congress. By taking the actions described here, HUD would prevent
unnecessary evictions and the costs associated with those evictions for
tenants, PHAs, and owners, as compelled by HUD's mission. Please see
the Regulatory Impact Analysis for further discussion of such costs.
These actions would promote the general welfare and security of the
Nation by avoiding the societal costs and ills of housing instability
brought on by evictions.
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\39\ 42 U.S.C. 3531.
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HUD also has specific statutory authority under the U.S. Housing
Act of 1937 to prescribe procedures and requirements for PHAs to follow
to
[[Page 83884]]
ensure sound management practices and efficient operations.\40\ Even
more specifically, HUD has the authority to establish ``procedures
designed to assure the prompt payment and collection of rents and the
prompt processing of evictions in the case of nonpayment of rent.''
\41\ HUD also has authority to specify procedures that ensure tenants
receive the elements of due process, such as notice of relevant
information, before adverse action is taken against them.\42\
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\40\ 42 U.S.C. 1437d(c)(4).
\41\ 42 U.S.C. 1437d(c)(4)(B).
\42\ 42 U.S.C. 1437d(k).
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The Secretary has explicit authority to require that certain terms
and conditions be included within leases for HUD-assisted housing,\43\
including that public housing agencies provide certain specified notice
periods and other procedural protections before different types of
eviction proceedings.\44\ The Secretary also has statutory authority to
establish requirements for PBRA.\45\ This statutory authority provides
that during the lease term, the owner must not ``terminate the tenancy
except for serious or repeated violation of the terms and conditions of
the lease, for violation of applicable Federal, State, or local law, or
for other good cause[.]'' \46\ The Secretary is also authorized to
provide additional terms and conditions that must be incorporated into
the tenant's lease.\47\ This proposed rule is consistent with the
statutory restrictions placed on program participants under this
authority.
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\43\ 42 U.S.C. 1437d(a).
\44\ 42 U.S.C. 1437d(l).
\45\ 42 U.S.C. 1437f(g) (section 8 low-income housing
assistance); 12 U.S.C. 1701q (section 202 supportive housing for the
elderly); 42 U.S.C. 8013 (section 811 supportive housing for persons
with disabilities).
\46\ 42 U.S.C. 1437f(d)(1)(B)(ii). See also 42 U.S.C.
8013(i)(2)(B) (section 811).
\47\ 42 U.S.C. 1437f(d)(1)(B)(iv).
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For lease termination for nonpayment of rent in HUD's PBRA
programs, the regulations currently provide that a termination notice
must be provided with enough advance time to comply with both the
rental agreement or lease and State laws.\48\ See 24 CFR 247.4(c); 24
CFR 880.607(c)(2). By contrast, for termination of tenancy for ``other
good cause,'' HUD regulations require 30 days' notice along with the
provision of specific information to the tenant.\49\
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\48\ The time period required by State laws can vary from 0 days
to 30 days depending on the jurisdiction. See NOLO, State Laws on
Termination for Nonpayment of Rent, https://www.nolo.com/legal-encyclopedia/state-laws-on-termination-for-nonpayment-of-rent.html
(last updated Dec. 10, 2020) (citing W.Va. Code section 55-3A-1 (no
notification period), Fla. Stat. Ann. sec. 83.56(3) (3 days); Idaho
Code section 6-303(2) (3 days) and D.C. Code Ann. section 42-3505.01
(30 days)).
\49\ See 24 CFR 880.607(c)(1) (stating that the notice must
provide the grounds for termination and that the tenancy is
terminated on a specified date and advising the family that it has
an opportunity to respond to the owner.)
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With this rulemaking, HUD will better protect assisted tenants from
preventable evictions, increase HUD program's operational efficiency,
and ensure HUD is fulfilling its statutory duties. The agency takes
these actions pursuant to its rulemaking authority \50\ and statutory
authority for the public housing and PBRA programs.\51\
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\50\ 42 U.S.C. 3535.
\51\ 42 U.S.C. 1437d(l); 42 U.S.C. 1437f(g) (section 8 project
based rental assistance); 12 U.S.C. 1701q (section 202 supportive
housing for the elderly); 42 U.S.C. 8013 (section 811 supportive
housing for persons with disabilities).
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III. Findings and Certifications
Regulatory Review--Executive Orders 12866 and 13563
Under Executive Order 12866 (Regulatory Planning and Review), a
determination must be made whether a regulatory action is significant
and, therefore, subject to review by the Office of Management and
Budget (OMB) in accordance with the requirements of the order. This
rule was determined to be a ``significant regulatory action'' as
defined in section 3(f) of the order. HUD has prepared an initial
regulatory impact analysis and has assessed the potential costs and
benefits, both quantitative and qualitative, of this proposed
regulatory action and has determined that the benefits would justify
the costs. The analysis is available at regulations.gov and is part of
the docket file for this rule.
Executive Order 13563 (Improving Regulations and Regulatory Review)
directs executive agencies to analyze regulations that are ``outmoded,
ineffective, insufficient, or excessively burdensome, and to modify,
streamline, expand, or repeal them in accordance with what has been
learned.'' Executive Order 13563 also directs that, where relevant,
feasible, and consistent with regulatory objectives, and to the extent
permitted by law, agencies are to identify and consider regulatory
approaches that reduce burdens and maintain flexibility and freedom of
choice for the public. HUD believes that this proposed rule would
provide added protections for tenants and is consistent with Executive
Order 13563.
The proposed rule would revise 24 CFR parts 247, 880, 884, 886,
891, and 966 to update HUD's regulation to curtail preventable and
unnecessary evictions by providing tenants time and information to help
cure nonpayment violations. This proposed rule would also improve HUD's
programmatic efficiency by ensuring resources are not diverted to cover
the costs of unnecessary evictions and by preventing homelessness.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4; approved March 22, 1995) (UMRA) establishes requirements for Federal
agencies to assess the effects of their regulatory actions on State,
local, and Tribal governments, and on the private sector. This rule
does not impose any Federal mandates on any State, local, or Tribal
governments, or on the
