24 C.F.R. § 247.3

§ 247.3 Entitlement of tenants to occupancy. (24 CFR Part 247)

In Force
Verified 8/21/2026 · Next check 9/20/2026
effective 8/21/2026FederalAffordable Housing Programs

Operative Text

24 C.F.R. § 247.3
(a) General. The landlord may not terminate any tenancy in a subsidized project except upon the following grounds:

(1) Material noncompliance with the rental agreement,

(2) Material failure to carry out obligations under any state landlord and tenant act,

(3) Criminal activity by a covered person in accordance with sections 5.858 and 5.859, or alcohol abuse by a covered person in accordance with section 5.860. If necessary, criminal records can be obtained for lease enforcement purposes under section 5.903(d)(3).

(4) Other good cause.

(b) Notice of good cause. The conduct of a tenant cannot be deemed other good cause under § 247.3(a)(4) unless the landlord has given the tenant prior notice that said conduct shall henceforth constitute a basis for termination of occupancy. Said notice shall be served on the tenant in the same manner as that provided for termination notices in § 247.4(b).

(c) Material noncompliance. The term material noncompliance with the rental agreement includes:

(1) One or more substantial violations of the rental agreement;

(2) Repeated minor violations of the rental agreement that:

(i) Disrupt the livability of the project,

(ii) Adversely affect the health or safety of any person or the right of any tenant to the quiet enjoyment of the leased premises and related project facilities,

(iii) Interfere with the management of the project, or

(iv) Have an adverse financial effect on the project;

(3) If the tenant:

(i) Fails to supply on time all required information on the income and composition, or eligibility factors, of the tenant household, as provided in 24 CFR part 5; or

(ii) Knowingly provides incomplete or inaccurate information as required under these provisions; and

(4) Non-payment of rent or any other financial obligation due under the rental agreement (including any portion thereof) beyond any grace period permitted under State law, except that the payment of rent or any other financial obligation due under the rental agreement after the due date, but within the grace period permitted under State law, constitutes a minor violation.
Source: Legislative text reproduced verbatim
Plain English

Under 24 CFR Part 247 § 247.3, landlords in federally subsidized housing projects may only end a tenancy for specific reasons: material noncompliance with the rental agreement, failure to meet obligations under state landlord-tenant law, certain criminal activity or alcohol abuse, or other good cause. 'Material noncompliance' covers substantial lease violations, repeated minor violations that affect livability or safety, failure to provide required household income information, and nonpayment of rent beyond any state-permitted grace period. Before 'other good cause' can be used as a termination basis, the tenant must first receive advance written notice that the conduct in question could lead to eviction.

Written by anthropic/claude-sonnet-4.6 · Reviewed on September 4, 2026

Plain English — not legal advice.

For Property Managers

Operators of subsidized projects subject to 24 CFR Part 247 § 247.3 generally document lease violations carefully, distinguishing between substantial violations and patterns of repeated minor ones. When relying on 'other good cause,' compliant operators issue a prior written warning—served in the manner required by § 247.4(b)—before initiating termination proceedings. Maintaining accurate records of income-certification requests and payment histories supports a defensible basis for any termination action taken under this provision.

General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.

For Tenants

Section 247.3 of 24 CFR Part 247 limits the grounds on which a landlord in a subsidized project can terminate your tenancy, which means an eviction notice citing grounds not listed in this provision may be challengeable. Tenants who receive a termination notice can raise noncompliance with § 247.3 as a defense in eviction proceedings or file a complaint with HUD or a local housing authority. Tenant-rights organizations and legal aid offices familiar with federal housing regulations can help identify whether a notice meets the requirements of this provision.

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

Current
Aug 21, 2026
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Related Rules

§ 1437
Declaration of policy and public housing agency organization
§ 5.100
§ 5.100 Definitions.
§ 5.107
§ 5.107 Audit requirements for non-profit organizations.

Source Information

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