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HUD to Provide Aid to At-Risk Renters

The U.S. Department of Housing and Urban Development (HUD) has published a Notice of Proposed Rulemaking in the Federal Register. If finalized, the rule would require public housing agencies (PHA) with tenants in public housing and owners of properties participating in HUD multifamily project-based rental assistance programs to provide their tenants with written notification at least 30 days prior to filing for an eviction due to nonpayment of rent in court.

HUD’s proposed rule would affect an estimated 3.9 million people in 2.2 million households–1.7 million people in 840,000 households in public housing, and 2.2 million people in 1.4 million households in Project-Based Rental Assistance (PBRA) programs.

“HUD-assisted rental housing allows millions of people to achieve stability for themselves and their families,” said Solomon Greene, Principal Deputy Assistant Secretary for Policy Development and Research. “This proposed rule would give many HUD-assisted renters an opportunity to catch up if they fall behind on rent and avoid the harmful consequences of evictions, while also preventing landlords and PHAs from encountering costly unit vacancies.”

The proposed rule would also require that the 30-day notice include instructions on how tenants can cure lease violations for nonpayment of rent and information on how to recertify their income and request a minimum rent hardship exemption if applicable to avoid eviction.

“Preventing unnecessary evictions benefits properties and residents alike, in part because the eviction process itself can be costly and time-consuming for all concerned,” said Richard J. Monocchio, Principal Deputy Assistant Secretary for Public and Indian Housing. “We are very proud of this proposed rule, and we welcome feedback from all interested stakeholders to make it even more practical and effective.”

This action also fulfills a commitment HUD made in the Biden Administration’s Blueprint for a Renters Bill of Rights. In July 2023, HUD also joined the White House to announce three new actions to increase fairness in the rental market and further renter protections in housing: a preview of this notice of proposed rulemaking, an effort to remind public housing agencies and property owners of their obligations and to share best practices for informing rejected applicants about why they were turned down for housing, and $10 million made available for tenant education and outreach in properties supported by the Section 8 Project-Based Rental Assistance program.

Stakeholders can access the proposed rule here and have 60 days following publication in the Federal Register on December 1 to provide comment on the proposed rule.

About Author: Eric C. Peck

Eric C. Peck has 20-plus years’ experience covering the mortgage industry, he most recently served as Editor-in-Chief for The Mortgage Press and National Mortgage Professional Magazine. Peck graduated from the New York Institute of Technology where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career with Videography Magazine before landing in the mortgage space. Peck has edited three published books and has served as Copy Editor for Entrepreneur.com.

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