24 C.F.R. § 982.403
§ 982.403 Terminating HAP contract when unit is too small. (24 CFR Part 982)
Operative Text
(a) Violation of HQS space standards. (1) If the PHA determines that a unit does not meet the HQS space standards because of an increase in family size or a change in family composition, the PHA must issue the family a new voucher, and the family and PHA must try to find an acceptable unit as soon as possible. (2) If an acceptable unit is available for rental by the family, the PHA must terminate the HAP contract in accordance with its terms. (b) Termination. When the PHA terminates the HAP contract under paragraph (a) of this section: (1) The PHA must notify the family and the owner of the termination; and (2) The HAP contract terminates at the end of the calendar month that follows the calendar month in which the PHA gives such notice to the owner. (3) The family may move to a new unit in accordance with § 982.354.
Under 24 CFR Part 982 § 982.403, when a public housing authority (PHA) finds that a voucher-assisted unit no longer meets Housing Quality Standards (HQS) space requirements due to a family growing larger or changing in composition, the PHA is required to issue the family a new voucher and work with the family to locate a suitable unit. If an acceptable replacement unit is found, the PHA must end the existing Housing Assistance Payments (HAP) contract. The HAP contract does not end immediately — it terminates at the close of the calendar month following the month in which the owner receives the PHA's termination notice, and both the family and the owner must be formally notified.
Plain English — not legal advice.
Under § 982.403, owners participating in the Housing Choice Voucher program should be aware that a HAP contract can be terminated when a unit is determined to be too small for the assisted family due to changes in family size or composition. A compliant operator generally keeps communication open with the PHA and acknowledges termination notices promptly, since the HAP contract ends at the close of the calendar month after the month the owner receives notice. Understanding this timeline helps owners plan for the unit's availability and any subsequent re-leasing activity.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 982.403 provides important protections for voucher-holding families whose current unit has become too small: the PHA is required to issue a new voucher and assist in locating an acceptable unit rather than simply ending assistance. Families in this situation have the right to move to a new unit consistent with § 982.354, and both the family and the owner must receive formal notice before the HAP contract ends. Tenants who have questions about this process or believe the PHA is not following the required steps may contact their local PHA, a HUD field office, or a tenant-rights organization for general guidance.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
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