On October 7, 2021, the U.S. Department of Housing and Urban Development (HUD) published an interim rule that requires HUD-subsidized public housing and housing providers whose properties benefit from project-based rental assistance to provide their residents with a 30-day notice that includes information about available federal emergency rental assistance (ERA) prior to filing for eviction due to nonpayment of rent.
As the National Apartment Association (NAA) previously reported, this news is consistent with HUD’s interpretation of the CARES Act notice to vacate requirement and the agency’s public statements signaling their intention to make this a permanent mandate beyond the COVID-19 national emergency.
Here’s what you need to know about the new rule:
- Published as an interim final rule, this rule will became effective on November 8. It is intended to gives residents an opportunity to secure federal funding that is available due to a Presidential declaration of a national emergency.
- The rule provides the HUD Secretary with the discretion to require covered housing providers to provide adequate notice (at least 30 days) to their residents prior to filing for eviction due to nonpayment of rent. The notice must include information about available federal ERA funding.
- In terms of the notice to residents, owners must, at a minimum, use HUD-provided language, updated to reflect the entity issuing the notification with a link to the appropriate local ERA grantee and their contact information. See the Appendix: Information for Tenants in HUD's October 7 notice.
- The authority granted by this rule extends to future national emergency declarations and is not limited to the COVID-19 pandemic.
- The new rule applies to HUD-subsidized public housing and housing providers that participate in HUD’s project-based rental assistance (PBRA) programs.
- Included in the scope of this rule are participants in HUD's PBRA programs such as Section 8, Section 8 Moderate Rehabilitation, Section 202/162 Project Assistance Contract, Section 202 Project Rental Assistance Contract (PRAC), Section 811 PRAC, Section 236 Rental Housing Assistance Program and Rent Supplement.
- The rule does not cover Section 8 Housing Choice Voucher participants.
Regardless of this rule, remember housing providers of federally backed and federally assisted properties must provide covered renters with a 30-day notice to vacate in accordance with the CARES Act. Unless and until a clear sunset date is codified into law, HUD and other federal agencies will continue to enforce their interpretation of the CARES Act’s 30-day notice to vacate requirement. As background on HUD’s interpretation of this requirement, see HUD’s Office of Multifamily Housing Programs guidance, Question 25 and Office of Public and Indian Housing guidance, EM1 on page 10.
This announcement is part of the Administration’s “whole of government” approach to reduce preventable evictions and provide renters more time to access the $46.5 billion in federal ERA dollars that is gradually being distributed to renters and housing providers through state and local programs.
To learn more about this rule or NAA’s federal regulatory advocacy, contact Nicole Upano, NAA’s Director of Public Policy.