[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]


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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.

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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 
<a href="/cdn-cgi/l/email-protection#c4b4b1a6a8ada7acabb1b7adaaa3b4aba8ada7bdb5b1a1b7b0adabaab784acb1a0eaa3abb2"><span class="__cf_email__" data-cfemail="09797c6b65606a61667c7a60676e796665606a70787c6c7a7d6066677a49617c6d276e667f">[email protected]</span></a>.
    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 
<a href="/cdn-cgi/l/email-protection#731e15101c1e1e061d1a1012071a1c1d00331b06175d141c05"><span class="__cf_email__" data-cfemail="c6aba0a5a9ababb3a8afa5a7b2afa9a8b586aeb3a2e8a1a9b0">[email protected]</span></a>. 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 http://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]]



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               Program(s)                          Regulation                     Summary of provision
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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.
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    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.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \39\ 42 U.S.C. 3531.
---------------------------------------------------------------------------

    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 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

[[Page 83885]]

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.

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 non-payment 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 
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 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 http://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 http://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,

[[Page 83886]]

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 HUD-OWNED PROJECTS

0
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).

0
2. In Sec.  247.4, revise the last sentence in paragraph (c) and revise 
paragraph (e) to read as follows:


Sec.  247.4  Termination notice.

* * * * *
    (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
    (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

0
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.

0
4. In Sec.  880.606, redesignate paragraph (b) as paragraph (c) and add 
new paragraph (b) to read as follows:


Sec.  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.
* * * * *
0
5. In Sec.  880.607, revise paragraph (c)(6) to read as follows:


Sec.  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

0
6. The authority citation for part 884 continues to read as follows:

    Authority: 42 U.S.C. 1437f and 3535(d).

0
7. In Sec.  884.215, add a second sentence to the introductory text to 
read as follows:


Sec.  884.215  Lease requirements.

    * * * In addition to the provisions specified in paragraph (b), the 
lease shall 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.
* * * * *
0
8. In Sec.  884.216, revise paragraph (d) to read as follows:


Sec.  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

0
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.

0
10. In Sec.  886.127, add paragraph (c) to read as follows:


Sec.  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.
0
11. In Sec.  886.327, add paragraph (c) to read as follows:


Sec.  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

0
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.

0
13. In Sec.  891.425, add paragraph (d) to read as follows:

[[Page 83887]]

Sec.  891.425  Lease requirements.

* * * * *
    (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

0
14. The authority citation for part 966 continues to read as follows:

    Authority: 42 U.S.C. 1437f and 3535(d).

0
15. In Sec.  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:


Sec.  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 Sec.  
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.


Sec.  966.8  [Removed]

0
16. Remove Sec.  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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