HUD Handbook 4350.3 § 8-5

An owner must terminate a tenant’s assistance in the following circumstances:

        A.       A tenant fails to provide required information at the time of recertification, including
                 changes in family composition, or changes in income or social security numbers for
                 new *household* members.

        B.       A tenant fails to sign/submit required consent and verification forms (form HUD-
                 9887 and form HUD-9887-A).

                 1.         Form HUD-9887, Notice and Consent for the Release of Information to
                            HUD and to a PHA permits HUD to obtain wage and claim information from
                            State Wage Information Collection Agencies (SWICAs), current tax
                            information from the Internal Revenue Service (IRS), and wages and
                            unemployment compensation information from the Social Security
                            Administration (SSA) *and the Department of Health and Human Services’
                            (HSS’) National Directory of New Hires (NDNH).*

2.         Form HUD-9887-A, Applicant’s/Tenant’s Consent to the Release of
                            Information – Verification by Owners of Information Supplied by Individuals
                            Who Apply for Housing Assistance allows an owner to obtain and verify
                            information about income, assets, and allowances for items such as child
                            care and medical expenses, which is needed to determine the amount of
                            rent a tenant must pay.

        C.       An annual or interim recertification determines that the tenant has an increased
                 ability to pay the full contract rent.

        D.       A tenant fails to move to a different-sized unit within 30 days after the owner
                 notifies him/her that the unit of the required size is available. *As required by the
                 HUD lease,* if the tenant remains in the same unit, the tenant must pay the market
                 rent, full contract rent, or 110% of the BMIR rent.

                 *NOTE: When assistance is terminated for a tenant with more than one form of
                 subsidy, the tenant must pay the market rent, full contract rent, or 110% of BMIR
                 rent. For example, if a tenant resides in a Section 236 property and receives
                 Section 8 assistance, the tenant would pay *the full Section 8 contract rent if his or
                 her assistance were terminated unless there is an eligible in-place Section 236
                 tenant or a vacant unit the Section 8 can be transferred to.*

        E.       A tenant has begun receiving assistance, but the owner is unable to establish
                 citizenship or eligible immigration status for any family member from the
                 information provided by the tenant and determines that the tenant does not meet
                 the citizenship requirement. (See Chapters 3, 4, and 7 for other citizenship and
                 eligible immigration status requirements. Restriction on assistance to noncitizens
                 is addressed in paragraph 3-12, denial of assistance is addressed in paragraph 4-
                 31, and changes in status are addressed in paragraph 7-11.)

                 The process for owners to verify and establish a tenant’s eligible immigration status
                 can be lengthy. Sometimes a tenant begins receiving assistance before the owner
                 establishes citizenship or eligible immigration status; this happens when the owner
                 encounters delays in verifying the information provided by the tenant. If the owner
                 then determines that the tenant does not meet the requirement for citizenship or
                 eligible immigration status, the assistance must be terminated. Refer to paragraph
                 3-12 K for further guidance.

                 NOTE: This requirement does not apply to the following programs covered by this
                 handbook, Section 202 PRAC, Section 811 PRAC, Section 202 PAC and Section
                 221(d)(3) BMIR..

        F.       A student enrolled at an institution of higher education does not meet the eligibility
                 requirements for assistance. (See Chapter 3, paragraph 3-13.)

        G.       REMINDER: Actions to terminate assistance must be based only on a change in
                 the tenant’s eligibility for assistance or a tenant’s failure to fulfill specific
                 responsibilities under program requirements. Owners must not take action to
                 terminate assistance based on other factors.

8-6    Procedures for Terminating or Reinstating Assistance

        To avoid the potential for discrimination, it is important for owners to ensure that the
        requirements and procedures described below are applied consistently to all tenants.

        A.       Terminating Assistance

                 1.         When terminating a tenant’s assistance, the owner increases the tenant’s
                            rent to market rent (or contract rent) and, where applicable, makes the
                            assistance available to another tenant.

                 2.         When terminating assistance, an owner must provide proper notice to the
                            tenant of the increase in the tenant’s rent.

                            REMINDER: When provided to a tenant with a disability, this notice must
                            be in a form accessible to the tenant (e.g., in Braille or audio form for a
                            tenant with a vision impairment).

                 3.         Written notice should include:

                            a.     The specific date the assistance will terminate;

                            b.     The reason(s) for terminating assistance;

                            c.     The amount of rent the tenant will be required to pay;

                            d.     Notification that if the tenant fails to pay the increased rent, the
                                   owner may terminate tenancy and seek to enforce the termination in
                                   court; and

                            e.     The tenant has a right to request, within 10 calendar days from the
                                   date of the notice, a meeting with the owner to discuss the proposed
                                   termination of assistance.

                 4.         The notice should be served by:

                            a.     Sending a letter by first class mail, properly stamped and addressed
                                   and including a return address, to the tenant at the unit address;
                                   and

                            b.     Delivering a copy of the notice to any adult person answering the
                                   door at the unit. If no adult answers the door, the person serving
                                   the notice may place it under or through the door, or affix it to the
                                   door.

                 5.         The date on which the notice is deemed received by the tenant is the later
                            of:

                            a.     The date the first class letter is mailed; or

                            b.     The date the notice is properly given.

6.         Service of the notice is deemed effective once the notice has been both
                            mailed and hand delivered.

        B.       Reinstating Assistance

                 An owner may reinstate a tenant’s terminated assistance if:

                 1.         The original termination of assistance was due to:

                            a.     A tenant’s failure to recertify, or

                            b.     A tenant’s increased ability to pay;

                 2.         The original termination of assistance was not due to fraud;

                 3.         The tenant is eligible for assistance (based on the income and rent
                            calculation, the tenant would pay less than market rent);

                 4.         The tenant submits the required information; and

                 5.         Assistance is available for the unit.