The “New” HUD Rule for Notices to Quit

On December 13, 2024, HUD released its Final Rule regarding new requirements for notices to quit for non-payment of rent for certain federally-subsidized projects. Effective January 13, 2025, owners of federally subsidized properties must provide a 30-day notice to quit regardless of whether state law provides for a shorter period. Of course, this requirement is not a substantive change since the CARES act already required a thirty day notice to quit for ALL subsidized properties, a requirement which many clients continue to adhere to despite a lack of clarity around whether such requirement remains in effect. The more significant change is that HUD now requires that a notice to quit for non-payment of rent include:

1. An itemized breakdown, by month, of the alleged amount owed by the tenant.
2. The date by which the household must pay before a formal eviction is filed;
3. Instructions on how the household can cure the nonpayment; and
4. Information on how the household can recertify their income and/or request a minimum rent hardship exemption, and (if applicable), switch from flat rent to income-based rent.

This new regulation ONLY applies to properties which are subsidized through the following programs: Section 8 Project-Based Rental Assistance, Section 202/162 Project Assistance Contract (PAC), 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). It does NOT apply to market housing, tenants with mobile housing vouchers, or other affordable housing programs.

What do you need to do? If your property is subsidized through one of these programs, you must change your notice to quit for non-payment of rent to include these new requirements. Specifically, the notice to quit must: (a) be for a period of thirty (30) days; (b) have a breakdown by month of the amount due; (c) confirm that the tenant has the thirty days to pay before eviction will be commenced and that they can cure during this period; and (c) inform the tenant that they can recertify or seek a hardship exemption if they qualify. Failure to include these terms in your Notices to Quit will result in the Notices being deemed defective and the dismissal of your eviction case. If you need assistance in editing your Notices to Quit, please feel free to contact our office or your local legal counsel.

The foregoing article is intended for information purposes only and should not be considered or relied upon as legal advice. Please feel free to contact our office if you have specific questions or if you require legal assistance.

Caitlin P. Milone                                                                                                                                                    Jeffrey C. Turk