HUD Handbook 4350.3 § 8-1

Introduction (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)

HUD guidance — not codified law
In Force
Verified 11/9/2026 · Next check 11/16/2026
effective 9/24/2026FederalPublic Housing

Operative Text

HUD Handbook 4350.3 § 8-1
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).
Source: Legislative text reproduced verbatim
Plain English

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.

Written by anthropic/claude-sonnet-4.6 · Reviewed on September 25, 2026

Plain English — not legal advice.

For Property Managers

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.

For Tenants

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.

Effective Timeline

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Sep 24, 2026
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Related Rules

§ 960.101
§ 960.101 Applicability.
§ 960.102
§ 960.102 Definitions.
§ 960.103
§ 960.103 Equal opportunity requirements and protection for victims of domestic violence, dating violence, sexual assault, or stalking.

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