HUD Handbook 4350.3 § 8-1
Introduction (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
Operative Text
A. Chapter 8 addresses terminating housing assistance and terminating tenancy.
Under program regulations and leases, termination of assistance occurs when a
tenant is no longer eligible for subsidy or to enforce HUD program requirements. It
results in the loss of subsidy to the tenant. Tenants whose assistance is terminated
may remain in the unit, but they must pay the market rent, full contract rent, or
110% of BMIR rent. Owners are authorized to terminate assistance only in limited
circumstances and after following required procedures to ensure that tenants have
received proper notice and an opportunity to respond.
B. Termination of tenancy is the first step in the eviction process and is often used
interchangeably with the term eviction. When terminating tenancy, the owner gives
the tenant notice to vacate the unit because of a lease violation(s). A tenant who
fails to vacate the unit after receiving notice from the owner may face judicial action
initiated by the owner to evict the tenant. The owner may only terminate tenancy in
limited circumstances as prescribed by HUD regulations and the lease and must
follow HUD and state/local procedures.
C. Owners are expected to enforce program requirements under the terms of the
lease. Similarly, HUD expects tenants to comply with the program requirements as
established in the lease. HUD encourages owners to work with tenants and utilize
other corrective actions, such as repayment agreements or negotiated settlements,
to resolve program/lease issues. Terminations represent only one of the tools
available to owners for lease enforcement. Owners and tenants are advised that
HUD termination policies and procedures must be followed when initiating a
termination, including proper notices and documentation. Owners are also advised
that terminations for reasons other than those permitted by HUD are prohibited.
D. The chapter is organized into the following four sections:
Section 1: Termination of Assistance outlines key requirements and
procedures regarding when and how a tenant’s assistance must be
terminated.
Section 2: Termination of Tenancy by Lessees discusses the tenant’s
responsibilities when the tenant wishes to terminate tenancy.
Section 3: Termination of Tenancy by Owners outlines allowable
circumstances for terminating tenancy and the requirements and
procedures that owners must follow to terminate a tenant’s residency.
Section 4: Discrepancies, Errors, and Fraud describe the circumstances
when owners must investigate discrepancies and provides guidelines on
how to distinguish tenant errors from fraud. It also identifies how to take
action (e.g., documenting fraud and reimbursing HUD or the tenant).HUD Handbook 4350.3 REV-1 CHG-4 § 8-1 introduces the framework governing two distinct but related actions in federally assisted housing: termination of assistance and termination of tenancy. Termination of assistance ends a tenant's subsidy while potentially allowing them to remain in the unit at market or contract rent, whereas termination of tenancy initiates the eviction process. Both actions are permitted only under limited, defined circumstances and require owners to follow specific HUD procedures, including proper notice and documentation. The chapter also covers tenant-initiated departures and situations involving discrepancies, errors, or fraud.
Plain English — not legal advice.
Under HUD Handbook 4350.3 REV-1 CHG-4 § 8-1, compliant property owners and managers distinguish carefully between terminating a tenant's subsidy and terminating their tenancy, as each carries its own procedural requirements. Operators generally document the specific grounds for any termination action, provide required notices, and explore alternatives such as repayment agreements or negotiated settlements before proceeding. Terminations pursued for reasons not authorized by HUD are expressly prohibited, so operators typically ensure that every action aligns with the allowable circumstances outlined in the applicable program regulations and lease.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
HUD Handbook 4350.3 REV-1 CHG-4 § 8-1 establishes that tenants in federally assisted housing have procedural protections before either their subsidy or their tenancy can be terminated. If an owner moves to terminate assistance or tenancy, tenants are generally entitled to proper notice and an opportunity to respond under HUD rules. Tenants who believe these procedures have not been followed may raise the violation as a defense in any judicial proceeding, file a complaint with the U.S. Department of Housing and Urban Development, or consult a local tenant-rights organization for guidance on available options.
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 25, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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