Multiple Policy Updates Out of HUD

Revocation of the 30-Day Nonpayment Notice

HUD has 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 rule required that a 30 days’ notice, provided the day after rent was due, be given to tenants before judicial eviction procedures. The regulations also required that tenants be given (i) instructions on how tenants can cure lease violations for nonpayment of rent, (ii) the alleged amount of rent owed by the tenant and any other arrearages allowed by HUD, (iii) the date by which the tenant must pay rent and arrearages to avoid the filing of an eviction, (iv) information on how tenants can recertify their income, and (v) instructions on how tenants can request a minimum rent hardship exemption. The interim rule reverts back to the pre-2021 requirements, which did not include the notice requirement. PHAs and owners can still provide the 30 days’ notice and information described in the existing rule but will no longer be required to do so. PHAs and owners must still follow state and local eviction process and notice requirements. This change takes effect March 30, 2026. The interim rule is available here.

There is an existing, codified requirement in the Coronavirus Aid, Relief, and Economic Security (CARES) Act to give 30 days’ notice of nonpayment before eviction, although it is less stringent. Under the CARES Act, notice can be given on the day rent is due, and the CARES Act does not include additional informational requirements.

Proposed Rules for Term Limits and Work Requirements in Public Housing and Voucher Programs

HUD has also issued a proposed rule that would allow PHAs and owners to implement work requirements or term limits for recipients of public housing, housing choice vouchers, project-based vouchers, or project-based rental assistance. HUD is proposing to make the implementation of these policy initiatives voluntary and applicable only to non-elderly, nondisabled families. HUD’s justification for permitting PHAs and owners to implement these policy initiatives is the statutory provision encouraging maximum program flexibility for agencies that perform well. PHAs that HUD has determined are troubled would not be eligible to implement work requirements or term limits under this rule.

Under the proposed rule, work requirements would include on-the-job training, job search, and job readiness assistance, community service programs, education directly related to employment, and the provision of childcare services to an individual who is participating in a community service program. The number of hours required to be worked can be set by the PHA or owner but should not exceed 40 hours per week. The PHA’s administrative plan and the underlying leases must be updated to include the work requirement provisions.

Under the proposed rule, term limits no shorter than two years can be enacted prospectively. For PHAs, the policy’s effective date would be the date the PHA begins implementing the policy, after it has been formally adopted into its PHA plan, and at least three months’ written notice has been provided to all program participants. For owners, the policy’s effective date would be the date the owner begins implementing the policy, after it has been established in its tenant selection plan, and at least three months’ written notice has been provided to all program participants. The proposed rule is open for comment until May 1. The full Federal Register notice can be accessed here.

Updated Procurement Handbook for PHAs

HUD issued an updated Public Housing Procurement Handbook, HUD Handbook 7460.8, which was last updated in 2007. Most significantly, the new handbook updates references from 24 C.F.R. 85.36 to 2 C.F.R. 200.317-327. The new handbook includes new and more detailed guidance for multiple aspects of procurement, including micro-purchases, petty cash purchases, purchasing cards, confirmation of an update to the simplified acquisition threshold, contract modifications, conflicts of interest, procurement during disasters, guidance on joint ventures, subsidiaries, and affiliates, and a new section on energy-related procurements. The new Procurement Handbook can be accessed here.

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