Last week, the U.S. Department of Housing and Urban Development (HUD) shifted the interim rule to revoke the 30 days’ notice of nonpayment to a proposed rule. The proposed rule will go through notice-and-comment rulemaking and any changes will only be made with full consideration of public comments and the issuance of a final rule.
On February 26, HUD issued an interim rule revoking the requirement to provide 30 days’ notice of nonpayment to tenants before initiating judicial eviction procedures in the public housing and voucher regulations. The interim rule was supposed to take effect in a few weeks, on March 30. For more on the interim rule, see our previous alert.
On March 2, a lawsuit was filed in D.C. District Court, challenging the interim rule for violating the Administrative Procedures Act (Jane Addams Senior Caucus, et al., v. U.S. Department of Housing and Urban Development, et al., 1:26-cv-00718 (D.D.C.)). The lawsuit alleged that there was no good cause to waive the full notice-and-comment rulemaking process and that HUD was acting arbitrarily and capriciously by not explaining the change in policy less than two years after enactment of the final rule.
Following the filing of the lawsuit, HUD changed the interim rule to a proposed rule. HUD published the new Notice in the Federal Register on March 13. The deadline to submit public comments is April 27.
The Ballard Spahr Affordable Housing and Community Development Group will continue to monitor this proposed rulemaking.
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