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).