On March 13, the Department of Housing and Urban Development (HUD) published an update to its notice regarding the revocation of the 30-day notification requirement before terminating a lease for nonpayment of rent, which was originally published Feb. 26 in the Federal Register. The update changes the rule from an “interim final rule” to a “proposed rule” and delays the effective date indefinitely pending a public comment period. The deadline to submit comments is April 27. To read the updated March notice, visit Revocation of the 30-Day Notification Requirement Prior to Termination of Lease for Nonpayment of Rent; Indefinite Delay of Effective Date.
The proposed rule revokes the Biden administration’s 2021 interim final rule and 2024 final rule requiring that public housing agencies (PHAs) and owners of properties receiving Project-Based Rental Assistance (PBRA) provide certain renters with 30-day notification before termination of lease for nonpayment of rent, which were put in place in alignment with congressional efforts to provide emergency economic relief during the pandemic. Before former President Joe Biden left office, the department updated the requirement, effectively making it permanent even after the COVID national emergency ended.
Under the proposed rule, regulatory requirements for notice of termination for nonpayment of rent would return to pre-2021 requirements, which range from five to 30 days for HUD programs and depend on state and local laws. The proposed rule also removes requirements from the 2021 and 2024 rules related to information in termination notices.
“Biden’s big government COVID-19 policies were issued under the assumption that bureaucrats know better than state and local leaders on how to manage their affordable housing programs, so they simply took away their ability to choose,” HUD Secretary Scott Turner said in a press release. “This deregulatory action advances HUD’s mission of cutting red tape, promoting local flexibility, and increasing housing affordability.”
Affordable housing groups, including NAHMA, advocated against the Biden administration’s decision to make the 30-day eviction notice requirement permanent in 2024.
“On behalf of NAHMA and our members, we commend HUD Secretary Turner for his leadership in issuing updated, streamlined guidance for nonpayment of rent in HUD-assisted housing. This is an important step toward balancing the needs of residents in financial hardship with the operational realities of affordable housing providers. Previously, NAHMA and our partners raised concerns that HUD’s 30-day notification requirement—though well-intentioned—placed significant strain on property owners, often compounding arrearages, preventing normal lease enforcement, and threatening the financial stability of affordable housing communities. Left unchanged, it risked discouraging private sector participation, raising operating costs, and reducing the supply of affordable housing. HUD’s revised approach reflects a pragmatic commitment to protect tenants while ensuring sustainable property operations. NAHMA looks forward to continued collaboration on regulatory reform to reduce operating costs, strengthen communities, improve the lives of residents, and meet the affordable housing needs across the nation,” said Kris Cook, CAE, CEO of NAHMA.
The changes to the lease termination policy would impact more than 2 million households residing in federally funded housing, according to the department statement.
After it was first issued as an interim final rule, Politico reported that the National Housing Law Project, the Legal Aid Society of Eastern Virginia, and law firm Debevoise & Plimpton LLP filed a legal complaint on behalf of local advocates and tenants. The plaintiffs asked for a preliminary injunction, arguing that HUD’s publication of the rule bypassed the required public comment period. The status of the rule was then changed to proposed with the new Federal Register notice on March 13.
- To read the March updated notice, visit Revocation of the 30-Day Notification Requirement Prior to Termination of Lease for Nonpayment of Rent; Indefinite Delay of Effective Date
- To read the original February interim rule, visit Revocation of the 30-Day Notification Requirement Prior To Termination of Lease for Nonpayment of Rent