PHADA Advocacy Produces Results
On Thursday, February 26, HUD will publish a new interim final rule in the Federal Register that revokes the additional pandemic-era requirements on notifications to tenants prior to termination of lease for non-payment of rent in the Public Housing and Project-Based Rental Assistance (PBRA) programs. The interim final rule is effective March 28, but HUD will accept comments until April 28.
Beginning on the effective date, regulations revert to the requirements in place before the 2021 interim final rule. In the public housing program, those rules require at least 14 days’ written notice prior to termination for non-payment of rent. In the PBRA and Project-based Section 8 (PBV) programs, notice must be provided in accordance with the lease and state law. In the Section 8 Moderate Rehabilitation Program, regulations require at least 5 working days of notice before termination for non-payment.
The rule also removes the additional requirements dictating certain information that must be included in tenant notices.
In issuing an interim final rule, HUD relies on comments received in response to the interim final rule of 2021 and the rule proposed in 2023, finalized in 2024. This included substantial comments from PHADA, PHADA members, and other industry groups. HUD notes the impact on Tenant Accounts Receivable (TARs) and lost revenue, especially for small HAs and owners, as significant negative impacts impeding overall effectiveness of these housing assistance programs. PHADA appreciates this action by HUD.
CARES Act Provision Still in Play, PHADA Supports Repeal
As PHADA has advised HUD, the continued applicability of the provision of the CARES Act requiring at least 30 days of notice prior to taking legal action to terminate a lease in the case of non-payment of rent remains an unresolved issue. Some courts have determined that this provision was not tied to the national emergency and thus remains in effect. As long as that interpretation holds, agencies are cautioned about changing their policies prior to passage of legislation that would remove that provision. Additionally, some of the added information included in notices may be helpful for some tenants, and there is no requirement to remove such language from the tenant notices.
PHADA recently joined a diverse coalition of 14 housing organizations in writing to the House leadership requesting the repeal of the 30-day notice provision for non-payment of rent initially enacted through the CARES Act. A copy of the letter is available on PHADA’s website.
The letter is addressed to the Chair and Ranking Member of both the full House Appropriations Committee and the Transportation-HUD Subcommittee. In addition to PHADA, the letter is signed by CLPHA, NAHRO, the National Leased Housing Association, the National Apartment Association, and several other groups. PHADA has endorsed the Respect State Housing Laws Act (H.R. 1078 and S. 470), which would repeal this provision and has garnered substantial support in both the House and Senate.
PHADA will provide additional analysis and information in the next Advocate. Members with input on PHADA’s comments on the rule are encouraged to contact individual policy staff or email: policy@phada.org.