24 C.F.R. § 886.327
§ 886.327 Lease requirements. (24 CFR Part 886)
Operative Text
(a) Term of lease. (1) The term of a lease, including a new lease or a lease amendment, executed by the owner and the family must be for at least one year, or the remaining term of the contract if the remaining term of the contract is less than one year. (2) During the first year of the lease term, the owner may not terminate the tenancy for “other good cause” under 24 CFR 247.3(a)(3), unless the termination is based on family malfeasance or nonfeasance. For example, during the first year of the lease term, the owner may not terminate the tenancy for “other good cause” based on the failure of the family to accept the offer of a new lease. (3) The lease may contain a provision permitting the family to terminate on 30 days advance written notice to the owner. In this case of a lease term for more than one year, the lease must contain this provision. (b) Required and prohibited provisions. The lease between the owner and the family must comply with HUD regulations and requirements, and must be in the form required by HUD. The lease may not contain any of the following types of prohibited provisions: (1) Admission of guilt. Agreement by the family (i) to be sued, and (ii) to admit guilt, or (iii) to a judgment in favor of the owner, in a court proceeding against the family in connection with the lease. (2) Treatment of family property. Agreement by the family that the owner may take or hold family property, or may sell family property, without notice to the family and a court decision on the rights of the parties. (3) Excusing owner from responsibility. Agreement by the family not to hold the owner or the owner's agents responsible for any action or failure to act, whether intentional or negligent. (4) Waiver of notice. Agreement by the family that the owner does not need to give notice of a court proceeding against the family in connection with the lease, or does not need to give any notice required by HUD. (5) Waiver of court proceeding for eviction. Agreement by the family that the owner may evict the family (i) without instituting a civil court proceeding in which the family has the opportunity to present a defense, or (ii) before a decision by the court on the rights of the parties. (6) Waiver of jury trial. Agreement by the family to waive any right to a trial by jury. (7) Waiver of appeal. Agreement by the family to waive the right to appeal, or to otherwise challenge in court, a court decision in connection with the lease. (8) Family chargeable with legal costs regardless of outcome. Agreement by the family to pay lawyer's fees or other legal costs of the owner, even if the family wins in a court proceeding by the owner against the family. (However, the family may have to pay these fees and costs if the family loses.) (c) Notification for nonpayment of rent. The lease must contain a provision or addendum that tenants will receive notification at least 30 days before a formal judicial eviction is filed.
Section 886.327 governs the structure and content of leases used in HUD-assisted housing under 24 CFR Part 886. Leases must run for at least one year (or the contract's remaining term if shorter), and during that first year an owner's ability to end a tenancy for 'other good cause' is restricted unless the family has engaged in malfeasance or nonfeasance. The regulation also enumerates specific clauses that are flatly prohibited from appearing in any such lease—including provisions that would strip tenants of court access, jury rights, appeal rights, or property protections—and requires that tenants receive at least 30 days' written notice before a formal eviction filing for nonpayment of rent.
Plain English — not legal advice.
Operators participating in the Section 886 program should ensure every lease or lease amendment they execute under § 886.327 meets the minimum one-year term requirement and is in the form HUD requires. Compliant operators do not include any of the eight categories of prohibited clauses—such as pre-admission of guilt, waivers of jury trial or appeal, or blanket liability releases—and they refrain from attempting to terminate a tenancy during the first lease year for 'other good cause' unless the basis is family malfeasance or nonfeasance. Leases covering terms longer than one year must also include a provision allowing the family to terminate on 30 days' advance written notice, and all leases must contain a 30-day pre-filing notice requirement for nonpayment-of-rent evictions as specified in § 886.327(c).
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants living in housing covered by 24 CFR Part 886 have enforceable rights under § 886.327, including protection against lease clauses that waive court proceedings, jury trials, appeal rights, or property protections. If a lease presented to you contains any of the eight prohibited provision types—or if an owner attempts to terminate your tenancy during the first year for reasons other than malfeasance or nonfeasance—these may constitute violations of § 886.327 that can be raised as a defense in an eviction proceeding or reported to HUD or your local HUD field office. Tenant-rights organizations and legal aid offices familiar with HUD-assisted housing can help you understand how these protections apply and what complaint or defense options may be available to you.
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.
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